by Filippo Lovascio, Junior Consultant

As we face rapid change, from shifting customer expectations to emerging technologies, organisations are increasingly turning to their people to be more agile, think more boldly and be more entrepreneurial, in hopes of better navigating these challenges and seizing whatever opportunities lie ahead.

In other words, organisations increasingly expect their employees to demonstrate a growth mindset to navigate this evolving climate.

What is a growth mindset?

A growth mindset is a theory developed by Stanford psychology professor Carol Dweck as a specific way of thinking to improve performance outcomes. Put simply, a growth mindset is the ability to think into the future, see setbacks as opportunities to learn and improve, and continuously learn new skills, according to the Stanford research.

It is unsurprising that there is a growing expectation for these behaviours when, according to Forbes, research shows 80% of executives believe that a growth mindset drives revenue.

Why it matters now.

With the rise in workplace automation and reliance on new and ever-changing technological tools, maintaining a relevant skillset has become an uphill battle for most workers. In fact, according to Gartner, 64% of managers do not believe that their teams will be able to keep up with the new skills that will soon be required.

As regulation and policy shifts continue to disrupt the market, organisations are finding it difficult to prioritise innovation as a potential solution to overcoming periods of stagnant productivity. Research on innovation shows that employees are feeling the shifting priorities first-hand, as only 16.6% believe their workplace is innovative compared to 23.3% just last year, according to Gartner.

How to enable the growth mindset.

In this increasingly complex environment, leaders are under severe strain and are struggling to foster an environment of psychological safety that encourages growth and self-actualisation. In fact, recent PwC data indicates that just over half of employees (56%) feel safe to try new things at work and 54% feel as though failures are seen as opportunities for growth and development.

The challenge, therefore, is understanding that a growth mindset is not just down to individual capability but rather how the work environment itself either supports or hinders this mindset from flourishing in its people.

At HSM Advisory, we have found that there are three easy wins for organisations looking to create an environment that better supports their people to develop a growth mindset:

Bold Thinking
Encourage people to block time in their calendars to step away from daily tasks and think about how to solve a problem or improve a process – our most creative ideas come from taking a step back.

Broad Connection
Re-imagine the office as a beacon of collaboration that encourages conversation, networking and innovation. Make cross-functional coffee catch-ups a normal part of your culture to help people broaden their networks.

Psychological Safety
Create an environment where employees feel safe to share and challenge ideas. Encourage leaders to be vulnerable and open to feedback to set this tone from the top. By supporting teams through setbacks, organisations can help cultivate an agile and resilient workforce.

What next?

As expectations on employees continue to rise, organisations are recognising the need to rebuild trust and create environments that better support their people. However, recent McKinsey data shows that only 8% of leaders feel confident in their talent planning, highlighting the urgency of investing in innovation, collaboration, and psychological safety to capitalise on this opportunity to set your organisational culture apart.

Want to know more?

Read on, as we break down how Psychological Safety drives productivity and why it is becoming a must-have for leaders going into 2026.