Why a Growth Mindset Is Essential for Your Growing Business

“Culture eats strategy for breakfast” ~ Satya Nadella.

Microsoft’s CEO understands that the culture within an organisation is the key to a competitive advantage for any growing business. To grow a business faster, leaders must create a culture that stands by its vision, mission and values – and the best way to do that, is to develop a growth mindset.

A growth mindset creates a culture that focusses on creativity, innovation, and risk-taking. Organisations thrive when they develop a strategy for collaboration and teamwork, and I’ve seen some significantly positive outcomes when companies make changes to establish a growth mindset.

Stanford psychologist, Carol Dweck, first used the term growth mindset in her insightful book, Mindset: The New Psychology of Success.

In her research, she discovered that successful individuals embraced challenges and didn’t fear failure, whereas many others gave up quickly or were reluctant to take on new tasks. ?She realised that those who avoided new challenges feared change and were stuck deeply in their routine.? These people with a fixed mindset are afraid to take any kind of risk, and this actually holds back the team and can be detrimental to business growth. Those with a growth mindset continually seek to improve skills constantly moving forward and growing.

The good news is that anyone can develop a growth mindset and as a leader, you can develop this culture across all levels of your organisation, to help take your business to the next level.

So how can you develop a growth mindset in your business?? Here’s a few tips:

• Reward your team for effort, not just measured statistics

It’s easy to see why most businesses reward their staff based on results, or outcomes that can be measured. In many cases, this means increased sales, but it’s not just the sales team who have contributed to these growing statistics. It’s important to ensure everyone is recognised for their efforts. Valuing effort is essential for developing a growth mindset culture within your organisation.

• Lead by example – be transformational

As a transformational leader, you will inspire and motivate staff, avoiding micromanagement, and allow employees to take ownership of their decisions and tasks. Focus on creativity, empowerment and collaboration, and watch as the culture quickly changes to a growth mindset.

In a fixed mindset culture, employees often find it hard to speak up or put forward suggestions and ideas, but when you provide an environment where people are comfortable voicing their thoughts, watch as innovation grows exponentially within your company. ?

Great leaders acknowledge that they don’t have all the answers and create a safe environment for others to speak up.

• Introduce learning opportunities

A growth mindset culture encourages an environment of constant learning.? Allow staff to improve skills with a variety of courses and mentorship programmes. Systems, technology and general processes are forever changing in business, no matter what the industry.? Indeed, it could be said that change is happening faster than at any other time in history.? If we choose to stay stuck in the same old processes and not keep up with technology, our business will lose its competitive edge and risk losing market share.? Developing a culture of lifelong learning within the team means your employees will remain agile and adaptable.

• Build a team of experts

There’s no “I” in team! Instead of building a competitive team environment, focus on collaboration and a team who complement each other.? By providing your staff with a clear idea of how they can use their expertise within the organisation, they will be respected and respect others in the team for their unique abilities.? Everyone is valued, and when people feel valued, they are more inspired and motivated. They are empowered to be the best they can be.

• Feedback should be encouraged and embraced

In many organisations, there is a fixed mindset culture that feedback is a negative criticism, or even a personal attack. But when positive feedback is considered the norm, an organisation continually becomes more efficient every day. Organisations who develop the growth mindset of embracing feedback, allow employees to expect and respect feedback both positive and negative. Over time, teams welcome feedback, seeing it as an opportunity for self-improvement, making them aware of their strengths and weaknesses.

Relevant and proactive feedback, given in a timely manner (not just at annual review) will foster a more trusting and transparent relationship between staff and leaders.

• Mission, Vision and Values – the foundation of a growth mindset culture

If you want to inspire a growth mindset in your team, encouraging employees to be creative, innovative and collaborative, it’s important to understand and live by your purpose and values.? This is the most effective way to encourage a growth mindset.? Discover the real reason behind what drives you and the values you want to incorporate, to create a culture where ideas and action are rewarded and valued; an environment which develops a passion for trying new things, failing often and learning quickly from mistakes.

Developing a mission or vision statement that motivates your employees to work towards an inspirational objective, will give them, and you, a deep sense of fulfilment in your work.

Ask yourself:

• What change does my organisation want to bring to the world?
• How will that impact our customer’s life?
• What legacy will our company leave?

Having a purpose that everyone in the organisation can aspire towards, creates a positive environment, motivating staff and allowing them to feel part of something important.

Just by making a few small changes in the workplace, using the strategies listed above, you can develop a growth mindset culture for your business. It takes consistency and a proactive approach, but live by your values and lead by example, and watch as positivity and collaboration are quickly embraced.

When you’re ready to take the next step and develop a growth mindset culture in your organisation, consider how Australia’s biggest business growth community can support you. At District32 we have members from every walk of life, spanning all industries. From experts with decades of vast experience and CEO’s of multi-million-dollar organisations to entrepreneurs just starting out, our members are achieving amazing outcomes and fast business growth with the support they receive from each other.

We welcome you to attend any of our business growth events in Perth or the Gold Coast to experience the District32 difference.? Contact us by emailing [email protected]