By Pascale Hansen

Since culture is a reflection of leadership, it is critical for leaders to know that they can shift mindset. To develop a growth mindset culture, leaders have to encourage risk taking and reward it.

As a business owner you’re responsible for the culture of your company which starts with deciding what that culture should be and then hiring people that have the corresponding mindset and values compatible with that culture.

The Difference Between a Fixed and Growth Mindset

A mindset is a set of assumptions, methods or ideas held by an individual or exercised by a group that determines what attitude we bring into our daily activities and to work. Dividing people into two camps, Standford University professor Carol Dweck, refers to people who view talent as a quality they either possess or lack as having a “fixed mindset” and people with a “growth mindset” in contrast, enjoy challenges, strive to learn, and consistently develop new skills.

Culture filters down from the top, so a leader with a fixed mindset will affect the hierarchy beneath her or him. The mindset of a leader is critical to team development, staff motivation and the achievement of strategic objectives. While leaders with a fixed mindset tend to “place greater value on looking smart and are less likely to believe that they or others can change,” those with a growth mindset “place high value on learning, are open to feedback and are confident in their ability to cultivate their own and others’ abilities.”

Companies that focus on continual learning and accept mistakes and failures as part of the overall development process, are far more likely to succeed in the long term.

Why Develop a Growth Mindset?

One reason for developing a growth mindset culture is its positive effect on performance management. A leader with a growth mindset will be more likely to invest in programs that enhance employees’ skills and encourage an environment of collaboration which in turn drives greater innovation as well as new way of working that profoundly increase value to shareholders and customers.

Research show teams whose members have a growth mindset set the bar higher for themselves, are creative thinkers and ultimately reach higher levels of achievement. Companies known to foster cultures with a growth mindset include Amazon, Apple, Proctor & Gamble, eBay, Google, IBM and General Electric.

Best Practices for Developing a Growth Mindset Culture

Creating a growth mindset culture requires dedication and hard work from top management who must have the desire to drive the change.

So how can you foster more of a growth mindset in your organization?

#1 Practice What You Teach

In order to move from a fixed mindset to a growth mindset, a leader must first practice what they want to model, by being proactive in showing growth mindset behaviours by making it a habit of asking themselves; “Is this an opportunity to learn?”, “Am I listening?”, “Can I stretch myself further with this?” and “What can I learn from others?”

#2 Hire According to Runway Not Pedigree

Dweck uses GE’s Jack Welch as an emblematic growth-mindset CEO: he hired according to “runway,” not pedigree, preferring Big 10 graduates and military veterans to Ivy leaguers, and spent thousands of hours grooming and coaching employees on his executive team – activities that demonstrated a recognition of people’s capacity for growth.

making things worse than they are (catastrophizing) or embellishing them. Seek out alternatives that are focused on effort, learning and growth.

#3 Openly Ask for Feedback as Part of Learning

Practice being fearless. Adopt a “anything is possible” attitude and routinely ask how you and your team are doing without fearing you may hear something negative that you may relate to failure. Change your internal monologue to “If I try to understand the feedback, there is something I can learn from it”. Frame feedback as learning opportunities for growth and development. Lead by example and openly share your mistakes with your team and share what you’ve learnt and what you commit to working on to create improvements for your team and your business.

#4 Experiment. Learn. Pivot if Required.

Don’t be afraid of challenges that will stretch you. Take calculated risks and prepare to learn from mistakes along the way by being proactive about seeking feedback along the way from trusted mentors, managers and experts. Pivot or change direction early and consider it par for the course.

#5 Reward Efforts Not Outcomes

Make it a daily, weekly or as-appropriate ritual to genuinely show appreciation for the efforts and learning you see from your team, rather than just when the expected outcome is achieved. Growth mindset leaders invest in development programs and create cultures of self-awareness, open communication and teamwork.

When I managed a Western Canadian sales team during a recession, I joined the management team as the first female manager in 63 years, in a male-dominated industry, with the mandate to change the culture and sales process.

Changing the culture that I inherited was initially met with bold resistance, but being completely transparent and open to everyone’s feedback very quickly helped me earn the respect from my team. That respect lay the foundation for loyalty once I delivered on my promises.

The combination of creating a growth mindset culture and treating my direct reports as I would have them treat our customers, is what I believe had my team consistently outperforming the rest of the country.

Success is not the determining factor here; challenging yourself is. Focus needs to be on the process improvements using insight and learning to propel the business forward to desired results and success will follow.

Pascale Hansen is the Founder, CEO and Financial Strategist at Zada.