Running the IKEA store in Budapest as a store manager for several years at that time, at the top of our logistic capacity, a potential crisis loomed large over our last year’s operations. The process for a new warehouse was already on the table at our head office in Prague and being negotiated, yet we were standing there in agony in the pre-Christmas afternoons. Would we be able to accommodate more pallets in our already fully packed warehouse the next day? With customers pouring in, we knew we had to get creative; no matter what, customers have to get what they are coming for! Amid the complexity of the logistics system of such a giant retailer, we had to respond quickly and innovatively to this situation…it was quite a challenge.

Out of the blue, we hear a team member saying: “What if we set up a temporary tent in the staff car parking area in the back? You know that large white one other use for events?” His eyes sparkled with excitement. “That could solve the problem locally for these last few weeks and at least give us some space to breathe… Plus, it would make a cool venue for our next yearly staff kick-off party!”

The brilliance of this unexpected idea not only saved us hundreds of millions of HUF but also gifted us a memorable party.

The underpinning element of this success story? Psychological safety. Throughout my professional journey, I’ve noticed that the concept of “psychological safety” often can baffle or even arouse scepticism, especially within Hungary’s corporate landscape. It is distressing to witness the drive for productivity at times undermining the team’s unity, hindering cooperative efforts, and stifling meaningful conversations. These components are, in fact, the foundation for fruitful discussions, constructive debates, informed decision-making, and sparking the productive clashes needed to give birth to innovative solutions.

Living part-time in the Netherlands with my Dutch partner, I experienced and witnessed many times a strong contrast. The Dutch exhibit a refreshing openness in discussing emotions and asking forthright questions within professional settings. The fearlessness in expressing their thoughts or simply being their authentic selves in the workplace is profoundly liberating.

Despite its importance, psychological safety is frequently misunderstood. It is mistaken for an endlessly pleasant atmosphere, forever tolerated underperformance to avoid conflicts, and an unlimited acceptance of mistakes, excusing them as “human nature”. Some think and say it is a new trendy fancy HR trend.

Amy Edmondson, Professor of Harvard Business School – one of the most acclaimed experts on the topic – explains psychological safety as “the belief in one’s ability to take risks, voice concerns, ask questions, and admit mistakes without the fear of negative consequences.” It’s not about being nice all the time; it’s about fostering an environment where everyone can be their honest selves.

It’s truly empowering when you can be your authentic self at work without any constraints.

Real psychological safety cannot be replaced by orchestrating team-building exercises with no genuine human connection or encouraging group selfies for the boss or social media. These won’t cut it. Just like greenwashing isn’t a substitute for real sustainability; superficial gestures can’t replace authentic psychological safety.

Is it worthwhile to invest in creating psychological safety? My answer is a resounding yes. Should we expend time and effort quantifying its return on investment? Not necessarily. It’s impossible to measure the prevented failures because someone felt safe enough to anticipate a critical mistake or missed innovations due to fear of presenting unconventional ideas.

Innovation demands agility, collaboration, meaningful dialogues, and minimal personal conflicts, letting the focus remain on solutions and new, fresh ideas. The continual transformation in companies necessitates a high degree of psychological safety. Its absence has cost successful companies competent, dedicated people and, consequently, significant business opportunities.

Let’s call a spade a spade – psychological safety is the cornerstone of high-performing teams. It’s like the air in a room – you only recognise its importance when it’s gone. It’s high time we realised the power of psychological safety and embraced it wholeheartedly.

The author is a senior Leadership Development Consultant, a Member of the Advisory Board of Decathlon Hungary & Slovakia and a former top executive at IKEA.