Psychological Safety: The Mechanism Behind High-Performing Teams
The single most reliable predictor of team performance — what Edmondson found, what Google proved, and how leaders can build it.
Read article →“Does what we are building, and how we are working, make the people involved genuinely more capable, more confident, more effective? Not satisfied. Not retained. Awesome.”
23%
higher profitability
Gallup 2023
43%
lower turnover
Gallup 2023
£5:1
wellbeing ROI
Deloitte 2023
2.4×
shareholder returns
McKinsey
Trust is not a soft metric. It is the foundation of every high-performing team.
Of the four principles in Modern Agile, one stands apart. Not because it is more important than the others — though it arguably is — but because it is the most easily misread. "Make People Awesome" sounds like a motivational poster. It is, in fact, a precise and demanding design brief.
The principle asks a deceptively simple question: does what we are building, and how we are working, make the people involved — customers, colleagues, partners — genuinely more capable, more confident, more effective? Not satisfied. Not retained. Awesome.
That distinction matters enormously. Satisfaction is a lagging indicator of a transaction. Awesome is a leading indicator of transformation. And transformation — of people, teams, and organisations — is where the real business value lives.
Joshua Kerievsky introduced the Modern Agile framework in 2016 as a response to what he saw as the bureaucratisation of agile. Scrum ceremonies had become rituals. Frameworks had become compliance exercises. The original spirit — trust people, move fast, learn constantly — had been buried under process.
Make People Awesome was his attempt to restore the human centre of the whole endeavour. It draws on a lineage that includes Toyota's foundational belief in respect for people, Deming's insistence that quality begins with the worker, and the servant leadership tradition that asks leaders to ask first: what does this person need to do their best work?
It is not a soft principle. It is a strategic one. And the evidence for its commercial value is now substantial.
The relationship between employee experience and business performance is no longer a matter of opinion. It is one of the most replicated findings in organisational research.
23%
higher profitability in highly engaged teams
Gallup's 2023 State of the Global Workplace report found that highly engaged business units achieve 23% higher profitability, 18% higher productivity, and 43% lower turnover than their disengaged counterparts. Globally, low engagement costs the world economy an estimated $8.8 trillion annually — equivalent to 9% of global GDP.
2.4×
higher shareholder returns in top-quartile employee experience companies
McKinsey's research on organisational health found that companies in the top quartile for employee experience outperform those in the bottom quartile by 2.2 times in revenue growth and 2.4 times in shareholder returns. The effect is not marginal — it is structural.
973×
more frequent deployments in psychologically safe teams
The DORA Accelerate State of DevOps Report consistently finds that psychological safety — the organisational expression of making people awesome — is the single strongest predictor of software delivery performance. Teams with high psychological safety deploy 973 times more frequently and recover from failures 6,570 times faster than low performers.
These are not soft outcomes. They are the hard numbers that boards and investors care about. Making people awesome is not a cost centre. It is a growth strategy.
The principle operates at three levels simultaneously: the individual, the team, and the customer. Each requires a different application, but the underlying question is always the same — are we designing this to amplify human capability, or to constrain it?
At the individual level
A software team at a mid-sized UK fintech was struggling with high turnover among senior engineers. Exit interviews pointed to a common theme: people felt they were executing tickets, not solving problems. The team lead introduced a simple change — each sprint began with a thirty-minute session where engineers could propose the problem they most wanted to work on that week. Ticket velocity dropped slightly in the first sprint. By the third, it had recovered and exceeded baseline. Within six months, voluntary attrition had fallen by 60%. The engineers were not doing less work. They were doing work that made them feel capable.
At the team level
A cross-functional product team at a retail business had been running retrospectives for two years with diminishing returns. The format had become a ritual — people said what they thought was expected, nothing changed. A facilitator introduced a single reframe: instead of "what went wrong?", the team was asked "what would have made each of you feel more capable this sprint?" The shift was immediate. The conversation moved from blame to design. Within three retrospectives, the team had restructured two recurring bottlenecks that had persisted for over a year.
At the customer level
A B2B SaaS company was measuring success by feature adoption rates. A product manager introduced customer capability interviews — not "did you use this feature?" but "what can you do now that you couldn't do before?" The answers revealed that the most-used features were not the most valuable ones. The team deprioritised three features on the roadmap and invested in onboarding improvements instead. Net Promoter Score rose by 22 points in two quarters. Churn fell by 18%.
Making people awesome is inseparable from making work sustainable. You cannot be awesome when you are burned out. This is not a philosophical point — it is a physiological one.
The CIPD's 2023 Health and Wellbeing at Work report found that 76% of UK workers experienced some form of work-related stress in the previous year, and that stress-related absence costs UK employers an average of £1,652 per employee annually. Presenteeism — being physically present but cognitively absent — costs three times more than absenteeism.
£5
return for every £1 invested in genuine employee wellbeing
Deloitte's 2023 Global Wellbeing Report found that poor mental health costs UK employers up to £56 billion per year. But organisations that invest meaningfully in wellbeing — not ping-pong tables, but genuine autonomy, workload management, and psychological safety — see a return of £5 for every £1 invested, according to Deloitte's own analysis.
The agile principle of sustainable pace — the idea that teams should be able to maintain their velocity indefinitely, not sprint to exhaustion — is the operational expression of this. Teams that work sustainably outperform teams that work intensively over any period longer than a few weeks. The evidence is unambiguous.
Making people awesome means designing work so that people can bring their full capability to it — not just today, but next month and next year. That requires attention to workload, autonomy, clarity of purpose, and the quality of relationships within the team.
None of this happens without leadership that genuinely believes in it. The principle cannot be delegated to HR or embedded in a framework. It has to be lived by the people with the most influence over how work is designed and how people are treated.
Amy Edmondson's research on psychological safety — the belief that one can speak up, take risks, and make mistakes without fear of punishment — shows that it is almost entirely a function of leader behaviour. Leaders who model curiosity, acknowledge their own uncertainty, and respond to failure with inquiry rather than blame create the conditions in which people can be awesome. Leaders who do the opposite — however well-intentioned — systematically prevent it.
Microsoft's cultural transformation
When Satya Nadella became CEO of Microsoft in 2014, he inherited a culture characterised by internal competition, stack ranking, and a fixed mindset about capability. His transformation centred on a single shift: from "know-it-all" to "learn-it-all." Managers were retrained to ask "what did you learn?" rather than "what did you deliver?" The results were not subtle. Between 2014 and 2020, Microsoft's market capitalisation grew from $300 billion to over $1.6 trillion. Employee engagement scores rose by 30% in the first three years. The cultural change preceded and enabled the financial one.
The lesson is not that culture is everything. It is that culture — specifically, a culture designed to make people awesome — is a precondition for everything else. Strategy, technology, and process all depend on the quality of human performance. And human performance depends on whether people feel capable, trusted, and genuinely supported.
The principle is easy to endorse and difficult to implement. Several failure modes recur consistently across organisations that attempt it.
Confusing perks with purpose
Free lunches, gym memberships, and office slides are not expressions of making people awesome. They are, at best, hygiene factors — they prevent dissatisfaction but do not create capability. The organisations that do this well invest in the things that actually affect performance: clarity of role, quality of feedback, meaningful autonomy, and genuine development opportunities.
Applying it only to customers
Some product teams embrace the customer dimension of the principle while ignoring the team dimension. They design beautifully for user capability while running their own teams on fear, overwork, and unclear expectations. This is not sustainable. The quality of the product is a function of the quality of the team. You cannot make customers awesome with a team that is not.
Treating it as a one-time initiative
Making people awesome is not a programme. It is a continuous design practice. Organisations that launch a "people-first initiative" and then return to business as usual have missed the point entirely. The principle requires ongoing attention to how work is structured, how decisions are made, and how people are developed — not a quarterly survey and an annual away day.
The most important thing about making people awesome is that it compounds. A team that feels capable and trusted today will be more capable and more trusted tomorrow. The learning accumulates. The confidence builds. The relationships deepen. The work gets better.
This is why the organisations that do it well — Toyota, Spotify, Patagonia, Buurtzorg, and a growing number of less famous companies — tend to sustain their performance over decades rather than quarters. They have built something that is genuinely difficult to replicate: a culture in which people consistently bring their best.
The principle is not idealistic. It is the most pragmatic thing an organisation can do. Because in the end, every product, every service, every customer relationship, every competitive advantage is created by people. The question is simply whether those people are working at their ceiling or their floor.
Make them awesome. The rest follows.
Author
Davide Andrea Picone is a consultant and practitioner with over two decades of experience across clinical practice, education, and business consulting. He specialises in helping organisations apply agile and continuous improvement principles to unlock lasting human and commercial performance.
Dig deeper into the ideas behind this piece.
The single most reliable predictor of team performance — what Edmondson found, what Google proved, and how leaders can build it.
Read article →How Modern Agile distils agile thinking down to four human-centred principles — and why that matters more than any framework.
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