High-performing teams all have this one thing in common

As a manager, it’s easy to get caught up in the day-to-day grind of fixing processes, eliminating bottlenecks, and streamlining workflows. We focus on reducing friction—the things that get in the way of people doing their best work. And sure, that’s important. But here’s the thing: Reducing fear is just as, if not more, important.

A comprehensive two-year study by Google identified psychological safety as the most important factor in high-performing teams. This environment allows team members to take risks and be vulnerable without fear of negative consequences. Harvard Business School professor Amy C. Edmondson emphasizes that psychological safety enables employees to speak up, make mistakes, and learn from them, which is essential for innovation and growth.

Let’s face it. The best processes in the world won’t help much if your team is afraid to speak up, take risks, or challenge the status quo. Fear can stunt creativity, shut down communication, and make people avoid the very risks that lead to growth. So, as leaders, we need to think beyond just fixing processes. We need to also focus on creating an environment where people feel safe and confident enough to act—even if it means making a mistake along the way.

Why Fear Matters More Than You Think

Fear is a powerful force. It can make people double-check their work, avoid taking risks, and be extra cautious. But when fear becomes the driving force behind decisions, it also leads to silence. When people are afraid to speak up, they hold back good ideas, overlook problems, and avoid making necessary changes.

Neuroscience backs this up. When we experience fear, our brains go into “fight or flight” mode, which limits our ability to think clearly and make rational decisions. When we’re scared, we become reactive instead of proactive. This is why a culture of fear isn’t just uncomfortable—it’s downright unproductive.

As a leader, it’s your job to create a culture where people feel safe to speak up, ask questions, and challenge the status quo. That’s why reducing fear should go hand in hand with reducing friction.

Fixing Processes Doesn’t Fix Everything

Let’s look at a real-world example: the United States Postal Service. In the early 2000s, the USPS faced a significant drop in productivity, rising operational costs, and declining employee morale. To address these issues, management introduced new technology, upgraded processes, and streamlined workflows to improve efficiency and reduce errors. They invested in automated sorting systems and revamped scheduling to make operations run more smoothly.

However, despite these process improvements, the results weren’t as dramatic as expected. Productivity wasn’t increasing, and employees still seemed disengaged. The reason? Fear was still very much present in the workplace. Employees were afraid to speak up or share concerns about the new processes. If workers noticed something wrong with the new systems or had ideas to improve efficiency, they didn’t feel comfortable offering suggestions or challenging the way things were done.

This is a perfect example of how reducing friction—by fixing processes—didn’t have the full impact it could have had because fear was still holding back the team.

How could USPS have tackled both issues at once? They could have started by actively working to reduce fear within the organization. Management needed to create an environment where employees felt safe to make mistakes, raise issues, and offer constructive feedback. Employees who feel safe and supported are more likely to speak up when something’s not working and more likely to suggest creative solutions. They become partners in progress rather than passive participants.

Balancing Both: Reducing Friction and Fear

SEB, a Nordic financial services group, implemented a five-month training program focusing on psychological safety and perspective-taking for its investment banking leadership team. This initiative aimed to overcome transformation challenges and foster open communication. As a result, the team achieved revenues 25% above their annual targets in a strategically important market segment.

A multi-industry case study followed businesses whose team members were hesitant to voice concerns. All participants implemented psychological safety workshops emphasizing active listening and constructive feedback. This initiative led to improved conflict resolution, enhanced communication, and increased productivity, positively impacting the company’s bottom line.

To be an effective leader, you can’t just focus on fixing processes. That’s a quick fix, but it doesn’t address the deeper issues that impact team dynamics. Reducing friction is important, yes. But reducing fear is essential if you want to create a truly high-performing, innovative, and engaged team.

Simon Brown, global learning and development leader at EY, has spent years building critical skills and behaviors in high-performing teams. He shares: “You can’t automate courage. While systems help things run smoothly, it’s the culture that inspires people to run toward challenges instead of away from them.”

Real-world application

So, what does this balance look like in practice?

• Reduce friction: Simplify workflows, cut out unnecessary steps, and ensure your team has the tools and resources they need to do their jobs efficiently.

• Reduce fear: Foster a culture of psychological safety, where mistakes are treated as learning opportunities, where feedback is welcomed (not feared), and where team members feel confident enough to take risks and innovate.

• You/me/we: Adopt a decision-making framework that defines what decisions employees can make on their own without fear or reprisal. This cuts down on back-and-forth decision-making bottlenecks and helps people feel more empowered in their roles.

• Model a hands-off approach: Is your leadership decreasing the number of mandatory meetings but still attending themselves? Making outdated rules “optional” instead of obsolete? Without buy-in from the top, team members will be too afraid to take action on simplification initiatives that can free up time and decrease unnecessary mental distress.

Leadership isn’t just about improving processes—it’s about improving people’s ability to act within those processes. If you want your team to truly thrive, you’ve got to focus on both reducing friction and reducing fear. When you do, you’ll create an environment where people feel empowered to make decisions, try new things, and speak up when something’s not working. That’s when the real magic happens.