What is a growth mindset in leadership?

So how did the term ‘growth mindset’ become so popular?

The phrase started with Dr. Carol Dweck – a renowned psychologist and Stanford University professor – in her influential book Mindset: The New Psychology of Success, which explored the idea that individuals' beliefs about intelligence profoundly impact their achievements.

Dweck distinguished between a "fixed mindset," where people believe abilities are innate and unchangeable, and a "growth mindset," where people believe that intelligence can be developed through dedication and effort. Her work revolutionised education, promoting the idea that embracing challenges and learning from failures fosters resilience and leads to greater success.

It's not hard to see how this concept might transfer powerfully to the world of business.

A growth mindset encourages experimentation and creativity – both crucial to entrepreneurship and company success, especially in the world of tech. But no matter what sector you’re in, adopting a growth mindset can yield impressive results – and it doesn’t have to be complicated.

It could start with managers using the appraisal process to give recognition, reward, and praise to their employees – and the type of praise delivered is important. When exchanging feedback, they should applaud employee efforts as well as successes. This is a great way to boost motivation and resilience in team members.

I often emphasize that leaders should also share their own setbacks and the lessons learned from them. This vulnerability creates a more inclusive atmosphere where employees feel comfortable taking risks and embracing challenges. Establishing mentorship programs can further facilitate the exchange of experiences and knowledge, reinforcing the idea that growth is a collaborative process.

Encouraging a growth mindset involves providing your workers with a challenge – without being unrealistic.

“Once employees accomplish goals just outside of their comfort zone, they will see how far perseverance and determination take them. When they experience setbacks, you should know that people with a growth mindset see setbacks as opportunities to learn,” states a recent Entrepreneur magazine article. Very true, in my experience.

And going back to Dr. Dweck’s pioneering work, she conducted research and surveys from seven?Fortune?1000 companies which was then published in Harvard Business Review.

The research found that employees at fixed mindset companies “often said that just a small handful of ‘star’ workers were highly valued.” This left the rest of the employees feeling less motivated than those working at a growth mindset company.

On the flipside, the research suggested that companies with a growth mindset had happier employees and a better work culture.

Easy to predict what the knock-on effect of both scenarios for companies would be.