I sometimes get asked what’s the one thing that investment teams can reliably do to generate better results.

I have a clear view on this - it’s understanding the science and practice of Psychological Safety. There have now been hundreds of studies that show its effectiveness in everything from reducing error rates to improving innovation. And as discussed, in this edition of Throne, evidence suggests it’s one of the largest contributors to team effectiveness.

It’s particularly important for investment teams and their decision-making. We’re making complex decisions with imperfect information in an opaque and dynamic environment. It’s a tough gig and it’s made harder because of how we’re wired as humans. Put smart people together in a team and our hardcoded desire for status and wanting to be valued means people can struggle to say important things like:
I don’t know
I was wrong
I’ve changed my mind
I need help
And when we can’t say those words, we’re playing Russian roulette with our decision-making.
What does better look like?
Simple answer: Everyone on the team feels happy to be open with what they know and what they don’t. A culture that’s geared towards continuous improvement. An attitude to errors that’s focused on bringing them into the open and learning from them rather than trying to cover them up.
How do we get there?
The starting point is building understanding and getting your team engaged. A simple way to do that is through an education session or workshop. I can create something for you that’s built around your context and needs. This can be as simple as a talk at a team awayday through to a workshop that’s designed to tackle a particular issue you want to explore or address.

”Paul did a great job of making the subject of Psychological Safety engaging and thought-provoking. It was an excellent overview and has already sparked some interesting follow-on thoughts and discussions.”

Hugh Yarrow, Founder and Fund Manager, Evenlode

If you want more details or would like to discuss anything related to Psychological Safety and teams, drop me an email at paul@better-decisions.co