Latest / The Kathie Owen Perspective Podcast / 281. Psychological Safety | The Risk Hiding Inside Your Company (And It’s Costing You)

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281. Psychological Safety | The Risk Hiding Inside Your Company (And It’s Costing You) · The Kathie Owen Perspective Podcast

• 0:00
  Kathie (2): Let me give you something to think about.
• 0:02
  Kathie (2): I've observed companies generating around$50 million in annual revenue that were significantly underperforming, not because of strategy, not because of effort, and not because of talent shortages.
• 0:17
  Kathie (2): But because the business had the potential to operate at$75 million, even$100 million and was not.
• 0:28
  Kathie (2): And the gap came down to something, most leaders don't measure what people feel safe enough to say, because when truth gets filtered inside a company performance follows.
• 0:42
  Kathie (2): Welcome to the Kathie Owen Perspective Podcast My name is Kathie Owen.
• 0:47
  Kathie (2): I am a private consultant and I study human patterns under pressure, especially inside companies where something feels off, but no one can quite explain why.
• 0:58
  Kathie (2): I work with CEOs, leadership teams and boards, particularly in high stakes environments like growth phases and mergers and acquisitions.
• 1:08
  Kathie (2): And my focus is simple.
• 1:10
  Kathie (2): I look for what doesn't show up in the numbers, because numbers lag reality.
• 1:16
  Kathie (2): But guess what?
• 1:17
  Kathie (2): Behavior leads it.
• 1:19
  Kathie (2): And today we're talking about assessments.
• 1:22
  Kathie (2): But not as a survey.
• 1:24
  Kathie (2): As a system for seeing what's actually happening inside your company.
• 1:29
  Kathie (2): Most leaders think assessments are about engagement they're not.
• 1:33
  Kathie (2): An assessment done correctly is a signal detection system.
• 1:38
  Kathie (2): It helps you locate where pressure exists, where people are holding back, where behavior is compensating for something that's broken.
• 1:46
  Kathie (2): Because most companies don't have a performance problem.
• 1:50
  Kathie (2): They have a visibility problem.
• 1:53
  Kathie (2): And when trust shifts inside a company, performance does not collapse.
• 1:57
  Kathie (2): It changes.
• 1:59
  Kathie (2): Quietly.
• 2:00
  Kathie (2): People begin to hesitate before speaking.
• 2:03
  Kathie (2): They avoid tension and they protect themselves instead of contributing fully.
• 2:09
  Kathie (2): And over time, clarity disappears, not because people don't care, because they've learned how the system responds, so they adjust.
• 2:20
  Kathie (2): They say what's acceptable, but not what's necessary.
• 2:25
  Kathie (2): And this is where companies lose money.
• 2:29
  Kathie (2): Big money.
• 2:30
  Kathie (2): And that doesn't happen in obvious ways.
• 2:33
  Kathie (2): It happens in accumulated friction, slower decisions, missed insight, reduced ownership.
• 2:43
  Kathie (2): Oh, that one is huge.
• 2:45
  Kathie (2): And people are not underperforming.
• 2:48
  Kathie (2): They are adapting, and that adaptation becomes very expensive.
• 2:55
  Kathie (2): This is where most companies turn to assessments and most of them don't work because they ask safe questions and they get safe answers.
• 3:06
  Kathie (2): If you want real signal, you have to ask questions that allow people to describe their experience without putting themselves at risk.
• 3:15
  Kathie (2): Questions like.
• 3:16
  Kathie (2): Where do people hesitate to speak up?
• 3:19
  Kathie (2): What happens when someone raises a concern?
• 3:23
  Kathie (2): Where do you see a gap between what is said and what is done?
• 3:29
  Kathie (2): Do recent changes create clarity?
• 3:32
  Kathie (2): Or uncertainty.
• 3:34
  Kathie (2): And what are one to three things leadership may not fully see right now?
• 3:40
  Kathie (2): Those are great questions, but one of the most important ones is this, if nothing changes, what happens over the next six to 12 months?
• 3:51
  Kathie (2): That's where forward looking risk shows up.
• 3:55
  Kathie (2): But here's the part, most companies miss entirely.
• 3:58
  Kathie (2): This information doesn't just need to be collected.
• 4:02
  Kathie (2): It needs to be represented.
• 4:05
  Kathie (2): At the board level.
• 4:07
  Kathie (2): And not once a year, not once every six months.
• 4:11
  Kathie (2): Regularly.
• 4:12
  Kathie (2): Because in many organizations, people dynamics are not discussed at the level where decisions are made.
• 4:20
  Kathie (2): The CEO is focused on growth operations strategy, and often no one consistently represents the human environment of the company.
• 4:30
  Kathie (2): That's a gap, and it's a very expensive one.
• 4:34
  Kathie (2): This is exactly why companies need true people lens at the leadership level.
• 4:40
  Kathie (2): Not human resources.
• 4:43
  Kathie (2): Human resources serves a different function.
• 4:47
  Kathie (2): I want state that clearly.
• 4:49
  Kathie (2): It is not human resources because human resources serves a different function.
• 4:54
  Kathie (2): What is needed is someone who represents how people are actually experiencing the company, how behavior is shifting under pressure, where risk is forming beneath the surface.
• 5:09
  Kathie (2): That can be a chief people officer done correctly, a wellness director with real access or an external advisor, someone who can see clearly and speak into the system without being part of it.
• 5:24
  Kathie (2): That's where real visibility comes from.
• 5:27
  Kathie (2): Because who asks the questions matters.
• 5:31
  Kathie (2): Internally people filter.
• 5:33
  Kathie (2): Externally they do not.
• 5:36
  Kathie (2): And when there's no internal consequence, the signal changes.
• 5:41
  Kathie (2): And when the signal changes, leaders can finally see what's actually happening.
• 5:47
  Kathie (2): This is something I saw very clearly through corporate wellness environments and it's often misunderstood.
• 5:54
  Kathie (2): Wellness is not just a benefit.
• 5:57
  Kathie (2): It's access.
• 5:59
  Kathie (2): Because wellness environments remove performance pressure and when that happens, people speak differently.
• 6:07
  Kathie (2): I have been a fitness trainer for over 25 years and a wellness director for 15 years, and people talk differently during their wellness experiences.
• 6:18
  Kathie (2): They talk about their stress, their energy, their friction in their work, what's actually happening inside the company.
• 6:26
  Kathie (2): And in those moments, you gain access to information that never shows up in structured settings.
• 6:33
  Kathie (2): That's not engagement, that's intelligence.
• 6:38
  Kathie (2): And when this information is ignored, it does not stay internal.
• 6:44
  Kathie (2): I want to repeat that.
• 6:46
  Kathie (2): When this information is ignored, psychological safety, it does not stay internal.
• 6:53
  Kathie (2): It shows up externally in Glassdoor reviews and indeed in hiring challenges.
• 7:00
  Kathie (2): But more importantly your customers feel it.
• 7:03
  Kathie (2): They feel inconsistency, they feel friction, they feel misalignment, even if they can't name it.
• 7:11
  Kathie (2): And over time, that impacts trust, which impacts revenue, which impacts enterprise value.
• 7:20
  Kathie (2): Reputation is not separate from operations.
• 7:23
  Kathie (2): It is a reflection of it.
• 7:26
  Kathie (2): That same pattern shows up with compensation.
• 7:30
  Kathie (2): When compensation is misaligned with the market, it creates pressure across the system.
• 7:35
  Kathie (2): And that pressure affects your talent quality, your retention of your employees, and even execution.
• 7:43
  Kathie (2): And that's not a people issue, that's a structural constraint.
• 7:48
  Kathie (2): At the end of the day, the greatest risk inside a company isn't what's visible.
• 7:53
  Kathie (2): It's what no one feels safe enough to talk about.
• 7:56
  Kathie (2): And if that information is not being seen, interpreted, and represented at the level where decisions are made, um, like your boardroom, the company will continue to operate below its potential.
• 8:11
  Kathie (2): If this resonates with you, I wrote a full article that goes deeper into this.
• 8:15
  Kathie (2): Inside this article.
• 8:16
  Kathie (2): I walk through the exact questions to ask, how to identify these patterns under pressure, and what to look for in these responses.
• 8:26
  Kathie (2): So I invite you to check that out and you can begin to see what might be hidden inside your own company.
• 8:34
  Kathie (2): And you can find that link to that in the show notes and description below, because guess what?
• 8:40
  Kathie (2): Once you see it, you can't unsee it.
• 8:44
  Kathie (2): And that's where real leadership happens.
• 8:49
  Kathie (2): All right, that's my episode for today.
• 8:50
  Kathie (2): I trust that you found it helpful, and if you know someone who could benefit from this, please share it with them, and I will see you in the next episode of the Kathie Owen Perspective Podcast.