Creating a growth mindset company culture

In his article, “Why Having a Growth Mindset is Critical for Company Success,” CEO of Rocket Software Milan Shetti notes that before a company’s culture is changed into one of a growth mindset, the leaders themselves must personally cultivate that mindset. 

Growth vs. fixed mindset

But what does it really mean to have a “growth mindset”? Dr. Carol Dweck, the Lewis and Virginia Eaton professor of psychology at Stanford University and a pioneer in growth mindset research for more than 30 years defines growth mindset as: 

“Individuals who believe their talents can be developed (through hard work, good strategies, and input from others) have a growth mindset” (Dweck, 2016). 

Those with a fixed mindset, however, believe that their talents and abilities are set by nature and can’t easily be changed. 

What a growth mindset isn’t

Although the concept seems self-explanatory, in the more than three decades it’s been researched and discussed,  misconceptions remain. They include: 

• A growth mindset is something an individual has always had
• Talking about a growth mindset is having it
• It’s enough just to praise someone’s effort and they will develop a growth mindset 

The reality is quite different. Contrary to this popular misconception, a growth mindset is not set nor a foregone conclusion. More than likely, people are a mix of growth and fixed mindsets. Having a growth mindset requires more than merely talking about it or having a positive mindset. It also requires taking calculated risks, cooperation over competition, and supporting learning and development. And it is productive effort that helps develop a growth mindset, productive effort like learning from failure and trying new strategies. 

Benefits of a personal growth mindset

Ongoing research has demonstrated that having a growth mindset dramatically changes how one approaches life and seems to also foster success in several areas such as business, education and relationships (Dweck, 2017). It is an ability a person must desire and commit to cultivating. 

In the blogpost on Mindset Works by Catherine Meisner, “How Having A Growth Mindset Can Change Your Life”, here are the benefits of having a growth mindset:  

• Look forward to challenges, even when they’re intimidating
• Work towards your goal, no matter how many times it takes
• Persist through mistakes and failures, despite how hard it may be 

Business benefits of an organizational growth mindset

According to an article in the Harvard Business Review by Dr. Carol Dweck, when entire companies embrace a growth mindset, their employees report feeling far more empowered and committed; they also receive greater organizational support for collaboration and innovation. In contrast, people at primarily fixed-mindset companies report more cheating and deception among employees, presumably to gain an advantage in the talent race.  

The authors of the McKinsey report “Choosing to grow: The leader’s blueprint” describe organizational growth this way: 

“Growth becomes the oxygen of an organization, feeding the culture, elevating ambitions, and inspiring a sense of purpose. Growth leaders generate 80 percent more shareholder value than their peers over a ten-year period. Beyond creating shareholder value, growth attracts talent, fosters innovation, and creates jobs.” 

Leaders who adopt a growth mindset do think, act, and speak differently. Aspiring to a growth mindset is where building a growth mindset culture within an organization begins, within the individual. But it does not end there. 

According to McKinsey’s Leader’s Blueprint, these growth-minded leaders then align around a shared mindset, strategy, and capabilities. They proceed to actively track leading and lagging growth indicators to tie those aspirations to clear and measurable key performance indicators (KPIs). They explore growth opportunities both within and outside their core businesses. This growth focus allows them to identify the right mix of enablers at the right time and scale. Even unexpected challenges to the business and its operations don’t deter them, as having a growth mindset also allows these leaders to take advantage of the opportunities within the challenges. In fact, high growth companies like Hewlett-Packard, Burger King, Hyatt Hotels, Microsoft, and Airbnb were founded in the disruption of economic downturn. 

3 steps toward an organizational growth mindset

According to McKinsey, when leaders follow these 3 steps: 

1. Set an aspirational mindset & culture
2. Activate pathways
3. Execute with excellent

 Then: 

• Companies who have successfully adopted a growth mindset are 2.4 times more likely to outperform
• When companies invest in multiple pathways to grow, they are 97% more likely to outperform
• Having the right operating growth-oriented models and capabilities delivers 3x more TSR than peers

Developing a personal growth mindset

Back to where it all started: with the individual. Developing a growth mindset begins when one person says “Yes!” to adopting that mindset. If that describes you, you might want to start your learning with this whimsical yet informative video “The Joy of Being Wrong.” 

In addition, here are some free resources and good blogposts to further aid you on your journey. 

Want to know more about having a growth mindset? Then check out my free, downloadable infographic.