In today’s rapidly evolving digital landscape, innovation is not a luxury – it’s a necessity. Yet, despite significant investment in emerging technologies and new product development, many organizations still struggle to bring their ideas to market. The root cause often lies not in the lack of creativity or funding, but in a missing cultural foundation: psychological safety.
Experimentation Demands Safety
At the core of any innovation engine is the principle of experimentation. New ideas, by their very nature, are unproven, uncertain, and often carry risk. Teams that are empowered to explore these uncharted territories must feel safe to test, learn, and iterate without fear of ridicule or reprisal. Psychological safety provides that permission.
Coined by Harvard Business School professor Amy Edmondson, psychological safety refers to a shared belief among team members that it is safe to take interpersonal risks. In innovation contexts, this translates into the confidence to speak up with unconventional ideas, question assumptions, and admit when something doesn’t work. As a leader, it also means creating a safe environment for your teams to ‘fail,’ learn and iterate.
When this foundation is missing, experimentation stalls. People retreat into familiar territory. They present only “safe” solutions—ones they believe will be accepted or praised—rather than bold, disruptive ideas that carry real transformative potential.
Lessons from the Front Lines of Innovation
In my role leading global innovation and emerging technology strategy at KPMG, I’ve had the privilege of working with diverse teams across continents, from startup founders and academic researchers to Fortune 500 intrapreneurs. Regardless of geography or industry, the message is consistent: breakthrough innovation requires a culture that supports people, not just processes.
One of the most impactful things we can do as leaders is to signal that failure is not only tolerated—it’s expected as part of the innovation journey. At KPMG, we’ve embedded this philosophy into our global innovation and incubator programs. We focus on creating environments where ideas can be challenged constructively, and where the path from idea to product is paved with rapid prototyping, cross-functional collaboration, and an emphasis on learning over perfection.
Building Psychological Safety Isn’t Accidental
Creating psychological safety is an intentional act. It begins with leadership modeling vulnerability. When leaders openly share what they’re learning, where they’ve made mistakes, or where they’re uncertain, it sends a powerful message: it’s okay not to have all the answers. In fact, it’s essential.
I’ve personally witnessed innovation accelerate when people feel empowered to say, “I’m not sure if this will work, but here’s an idea worth exploring.” This type of openness invites diverse perspectives, strengthens trust, and fosters high-performing teams.
Psychological safety also flourishes in environments where curiosity is rewarded. Ask questions like, “What did we learn from this iteration?” rather than, “Why didn’t this work?” Celebrate attempts, not just results. Recognize those who take intelligent risks, even if the outcomes aren’t immediately successful.
Embedding Experimentation into Enterprise DNA
In large organizations, scaling this culture of experimentation requires thoughtful systems and frameworks. Through our work, we’ve developed enterprise incubator models that integrate psychological safety into the structure—from how ideas are submitted and evaluated, to how team members are coached and recognized.
This includes embedding regular retrospectives, giving feedback loops a central role, and creating clear roles for innovation champions who mentor and advocate for teams throughout the process. By aligning KPIs to learning outcomes and progress milestones (rather than only financial returns), organizations can create space for experimentation to thrive.
The Competitive Advantage of Trust
Ultimately, innovation is not just about launching new technologies but also about cultivating a mindset that embraces uncertainty with confidence. Psychological safety doesn’t eliminate risk; it provides the emotional infrastructure to engage with it effectively.
As organizations continue to navigate an era defined by disruption and accelerated change, the ability to create safe, bold, and collaborative innovation cultures will be the true differentiator. People don’t just want to contribute ideas—they want to be heard, respected, and supported in bringing those ideas to life.
Innovation that scales starts with trust. And trust is built by creating an environment where every voice matters, every failure teaches, and every bold idea has a chance to shine.