Ep 3: Psychology and Change

Unpacking “Psychology and Change” in the Workplace: A Summary of Harmonious Workplaces, Ep. 3

Welcome to a deep dive into Episode 3 of the “Harmonious Workplaces” podcast, titled “Psychology and Change.” This episode features independent consultants Rich Cruz and Ben Kleinman, alongside guest Cheryl Volpi, exploring the intricate relationship between human psychology and organizational change. Building on previous discussions about why organizations need to change and why change is often difficult, this episode brings in core psychological theories to illuminate how to make change more successful and enjoyable for everyone involved.

The Core Elements of Change Engagement

Rich Cruz, an IO psychology practitioner specializing in organizational development and change leadership, kicks off the discussion by highlighting a 2023 article published in Frontiers in Psychology. This research identifies three key elements that contribute to change engagement:

• Meaningfulness of change: Employees need to understand why the change is important and how it connects to them personally. This links to the idea of purpose-driven organizations.
• An environment fostering psychological safety: People must feel safe to express ideas, make mistakes, and navigate uncertainty without fear of negative repercussions.
• Self-efficacy among work groups: Individuals and teams need to feel confident in their ability to adapt and succeed with the change. This can be fostered through shared decision-making, training, and goal setting.

Rich notes that the concept of self-efficacy was a central theme in his own Capstone project, drawing his immediate interest to the article. Ben Kleinman, a change management consultant and strategist, points out that these ideas, while highlighted in recent research, are “not new” and have been “on the boil for 20, 30 years”.

The Enduring Wisdom of William Kahn

Cheryl Volpi, also an IO practitioner, grounds the conversation by introducing the foundational work of William Kahn from 1990. In the 90s, the focus of organizational change was primarily on cost, risk, and training needs, often overlooking the human element. Kahn’s research revolutionized this perspective by emphasizing that the success of change is deeply related to the people going through it.

Kahn’s studies, involving an investment bank and a group of camp counselors, led to a significant conclusion: leadership’s ability to keep fear out of the environment was crucial. In the banking environment, fear stifled innovation. Conversely, in the camp setting, stronger interpersonal relationships and an environment where counselors felt free to be their true selves led to more positive outcomes and increased self-efficacy. This freedom allowed counselors to build richer relationships with the campers.

Cheryl explains that Kahn’s work highlighted the importance of making employees feel “involved, engaged, and overall safe,” as this directly determines the success of the investment in change. This principle resonates deeply with the more recent 2023 research.

From Theory to Practice: Shifting Leadership Paradigms

The podcast connects Kahn’s early work to later influential models like Kotter’s 8-step model (circa 1996), which emphasizes creating a vision and a guiding coalition to make change “stick through people”. The conversation notes that much of this thinking came back to ensuring people had a “personal hook” into why the change was important for them, helping to “demystify and de-scarify” the change journey.

The discussion also touches upon Leader-Member Exchange (LMX) theory, where cohesive “ingroups” emerge when people feel more relaxed and connected. While LMX theory can lead to greater cohesion and shared understanding within the in-group, Rich cautions that it can also inadvertently create “out-groups”, potentially leading to new barriers and feelings of exclusion. However, the feeling of psychological safety within the “in-group” is a central tenet that Kahn was exploring, later coined as “team psychological safety” by Amy Edmondson of Harvard Business Review.

A significant shift highlighted is from transactional, “laissez-faire” management (common before the 90s) to a more transformative leadership style. Transformative leaders are “fearless in sharing” knowledge and welcome broader conversation, thereby building trust and safety. The hosts note that coercion (e.g., “get this or you’re out of a job”) destroys organizational commitment because employees feel unsafe.

The Practitioner’s Challenge: Navigating Risk and Failure

Ben Kleinman, from his practitioner’s perspective, emphasizes the real-world challenges companies face in implementing these theories. While leaders genuinely desire to hire motivated, self-starters with “ownership mentality” who are comfortable with ambiguity and taking safe risks, they are often constrained by financial, resource, time, and systemic limitations.

The ideal, as Ben describes, is for companies to encourage employees to “take some risk, make a decision, see what you learn, bring that learning back,” and view “failure” as an opportunity to learn and adapt quickly. Cheryl suggests a necessary counterbalance to “comfort with ambiguity”: “fearlessness of failure”. She advocates for providing a “psychological trampoline” or “psychological bean bag” – a cushion of support, whether it’s financial, time, or training, so employees feel safe to experiment and make mistakes without severe repercussions. This aligns with the agile philosophy of “fail fast” and focusing on a minimum viable product.

Key Takeaways for Leaders

As the episode concludes, the hosts offer practical advice for leaders striving to foster a harmonious and adaptable workplace:

• Put the ego aside: Leaders need to set aside their ego and embrace an inclusive, cultural approach where everyone works together as people. This counters the “skin in the game” mentality where owners might excuse poor behavior due to higher personal risk.
• Focus on learning from mistakes: When things don’t go as expected, the primary reaction should be “what have we learned?” rather than “who dropped the ball?”. This creates an environment where employees feel safe to innovate and contribute authentically.
• Provide a “safety bean bag”: As Ben aptly summarizes, companies need to ensure their people have the necessary psychological safety to take risks and embrace change without fear of failure or reprimand. This includes fostering a sense of mutual support and having each other’s backs within teams.

The episode powerfully argues that successful organizational change hinges on deeply understanding and addressing the human psychological experience, an insight that has been researched and refined for decades but remains critically relevant today.