Chapter 3: Leadership in the Era of Hybrid Work: Fostering Psychological Safety and Innovation

In this article I will talk about the 3rd core course of my Executive MBA: Organizational Design. During the forum with my mates, we discussed about the article It’s time for leaders to get real about hybrid — McKinsey and how hybrid work is here to stay.

Companies that will not be able to adjust to the market requirements, whether driven by clients or the workforce, will slowly die. Resources are not clients, but they are the key to create our products. We need to retain the best workforce and put them in the right environment to perform at their best. Embracing hybrid work models has emerged as a crucial factor in attracting high performers, increasing companies’ competitiveness and maintaining leading positions in the market.

Below a quick summary of the article.

High vs. Low Performers in Hybrid Work: I have highlighted the distinctions between high and low performers and how these differences influence the effectiveness of hybrid work models.

The Impact of Hierarchical Organizational Design: I have analysed how a company’s organizational structure affects its culture, psychological safety, ability to embrace hybrid work, and overall performance.

Building Engagement and Belonging: I have delved into the challenges of fostering connection and engagement in a hybrid work environment and share practical strategies, including personal experiences, for creating a strong sense of belonging.

The Role of Psychological Safety: I have explored why a hybrid approach can only succeed within a psychologically safe environment and how such safety drives performance and innovation.

Throughout the article, I have shared personal examples of leadership strategies and approaches that have proven effective and delivered tangible results.

While hybrid work has emerged as a necessity rather than a choice, this shift has also introduced challenges, such as diminished team cohesion, reduced opportunities for spontaneous collaboration, and the risk of employees feeling disconnected from organizational culture. In this scenario, high performers and low performers act differently.

My Personal Experience

I believe we need to distinguish between top performers and low performers when discussing hybrid work. The latter are often perceived as employees requiring additional support; therefore, hybrid work may not suit them well, as they may require constant assistance. On the other hand, top performers are independent, goal-oriented, and aligned with the team’s vision. They focus on objectives, deliver results, and consistently perform at a high level. The more comfortable these top performers are with their environment, the more enthusiastic and productive they will become. In such cases, hybrid work truly pays off.

On this note, I’d like you to consider something: why are there top and low performers? What drives someone to give their best, regardless of whether they are working from home or in the office? Is it because they feel aligned, motivated, and empowered?

Have you ever asked yourself, “How does this person feel working with me?” Notice I said, “working WITH me,” not “working FOR me.” This distinction matters greatly.

Do you think this person feels they are working with you or for you? Whether you are an employer or a manager in a corporate setting, ask yourself this question before making judgments. I have seen many individuals who possess great skills for specific tasks but are placed in the wrong role, burdened with inappropriate responsibilities, or burned out by constant demands and micromanagement. How can you expect someone in such a situation to become a top performer?

I’m not suggesting that everyone can be a top performer, but I firmly believe that everyone can make a difference when placed in the right role.

As leaders, it is our responsibility to identify these opportunities, understand the issues, and explore why a team member is underperforming before making judgments. It is our mission to empower, guide, and support individuals in finding their best fit within the organization.

In today’s increasingly global approach by multinational companies, organizational design plays a crucial role in fostering a sense of belonging, safety, and trust, setting the stage for a successful hybrid work environment. We (my EMBA mates) all have agreed that the big problem sits on the high hierarchical structure of most of the companies.

My personal experience

In a recent conversation with a few colleagues from different corporate experiences, we analyzed how many large corporations are still deeply hierarchical. There’s the big boss, the boss, the deputy boss, the manager, the deputy manager, the task owner, the delegate of the task owner, and finally, the poor resource actually doing the job.

Just describing this structure in words — without even visualizing it in an org chart — gives you an idea of how difficult it would be to remain agile, flexible, and innovative in such a turbulent contest. More importantly, it shows how nearly impossible it is to create an environment that truly empowers and motivates the team.

It simply doesn’t work. It doesn’t align with the culture of empowerment and motivation.

If companies don’t flatten their structures, those concepts will remain nothing more than buzzwords in articles and emails, attempting to convince employees that the company values empowerment.

A flat structure, by contrast, involves a leader who holds the team together and cross-functional teams where the leader can act as a resource led by another team member for specific tasks. This approach makes everyone feel equal, fostering collaboration and delivering the best results together.

Passion becomes the unifying factor. Without it, people will only focus on their titles or pay checks. Would you feel comfortable leading a project where your manager is just another team member? Perhaps for a small task where his/her expertise is particularly valuable, and the team truly needs it. It might sound crazy, but I’ve tried it multiple times, and it works. It definitely works.

Moreover, this aligns with the insights from “No Rules Rules” by Reed Hastings and Erin Meyer, one of my favourite books about leadership and company culture. The book emphasizes trust, freedom, and accountability as foundational to organizational success. By removing unnecessary rules and empowering employees, companies can unlock innovation and adaptability in a hybrid world.

One recurring theme from the discussion with my mates is the difficulty of fostering a sense of belonging in a hybrid environment. Employees often feel disconnected when remote, especially when team-building opportunities are limited. As one forum participant noted, “How can you create connections if people don’t participate in person or even turn on their cameras in virtual meetings?”. To address this, leaders must adopt innovative approaches to virtual team building.

My personal experience

In my experience, I managed the Digital Engineering for a massive project in Australia, which, at its peak, involved over 50 people (just for the Digital Engineering tasks) from all over the world. At the time, COVID restrictions forced us to work remotely, and many team members had never met each other in person. Despite this, the project had to start and deliver results.

So, what did I do? I set up regular meetings with all team members at a time that suited everyone. I always focused the meeting on the final goal and requirements from the client to align them on the same purpose. When this wasn’t feasible, I organized specific meetings with those unable to attend and a shared dashboard was set up to foster asynchronous collaboration. The shared dashboard not only kept everyone aligned but also allowed for flexible contributions, fostering a sense of ownership across time zones.

In one of these regular meetings attended by everyone, I used a metaphor to illustrate our collaboration. I showed them into a soccer field, picturing themselves as professional players, where each discipline lead was a player leading their own team as a single virtual player.

I emphasized the importance of acting as a cohesive team, where every single move, pass, and tackle contributes to the success of the entire team. “We are a team. We want to win this game, no matter where we are,” I told them.

That image still sticks in my mind — and I believe in theirs — because it created a real sense of belonging and unity around a common goal. We argued, we debated, and we even yelled at times, but in the end, we reached agreements and delivered one of the best products the client had ever received.

The project was recognized as one of the best ever received and became a benchmark for future projects.

Honestly, I didn’t do much more than keep the team together. What I truly enjoyed was watching them communicate and deliver results with minimal intervention on my part, accepting the imperfection, which soon became perfection by itself.

Another important aspect we discussed is how the stressors of hybrid work go beyond logistical challenges. Mental health concerns, often worsened by isolation and blurred boundaries between work and home, demand proactive attention.

You cannot ensure well-being without first creating a psychologically safe environment.

On this topic, I would highly recommend a great book I recently read, suggested by a friend of mine: The Fearless Organization: Creating Psychological Safety in the Workplace for Learning, Innovation, and Growth by Amy C. Edmondson. While my mantra book “Rules No Rules” treats this aspect among others more related to the company culture, empowering and accountability, this book is only focused on the importance of building a psychologically safe environment, whether working from home or in the office.

One thing is clear: hybrid work with high performance cannot exist without a safe environment. Without it, the system is destined to fail. The book’s main principle is perfectly summarized in the picture below:

• High pressure, low safety - ANXIETY: Leads to fear, disengagement, and burnout.
• Low pressure, low safety - APATHY: Creates apathy and stagnation.
• Low pressure, high safety - COMFORT ZONE: innovation and creativity cannot happen.
• High pressure, high safety - LEARNING AND INNOVATION: The ideal environment where innovation and performance thrive.

Psychological safety enables individuals to:

• Take risks without fear of retaliation.
• Learn from failure constructively.
• Collaborate effectively to achieve shared goals.

My personal experience

In the massive project previously mentioned, creating a safe environment was a priority for me. How did I achieve this? I scheduled regular one-on-one meetings with every team member. These meetings allowed me to understand their personalities, build trust, and gain insight into potential issues within the project.

In these one-on-ones, I always asked for feedback on my leadership. This is one of the best ways to ensure that your approach is working and that the team appreciates your management style. I also tried to be as empathetic as possible, addressing any issue — personal or professional — that could affect performance.

I recall one meeting where a team member explained they had missed a deadline because of personal issues. My response was: “Look, my role here is to support you in doing your best, not to judge or penalize you if you’re struggling. If you have problems, tell me, and I’ll do everything I can to help.” This response was appreciated and helped strengthen the team’s trust.

On the other hand, I’ve experienced the opposite myself. During a difficult time in my life, I was told: “If you have personal issues, take a few days off because your performance is dropping, and we’ve noticed you making mistakes.” I leave it to you to imagine how that feels. Which approach do you think is more appropriate for fostering a safe environment and a sense of belonging?

What Leaders Can Do? Be present. Prioritize your team’s well-being over the product you’re creating. If the team is aligned and supported, the product will follow. Empathy is key — it builds trust between you and your team and, just as importantly, within the team itself. Once trust is established, step back and let the team work. You’ll be amazed at what a motivated, cohesive group can accomplish.

Simply telling people, “You need to communicate more,” won’t work if leaders fail to create a psychologically safe environment. Without safety, people won’t communicate, and the project will fail. If your team isn’t engaging in discussions, group chats, or initiatives, consider this a sign of a deeper issue. Ask yourself why it’s happening and what you can do to fix it, rather than expecting them to communicate simply because you’ve asked.

In my leadership experience, I’ve identified three key aspects to foster psychological safety and resilience:

• Be a role model: Show vulnerability, openness, and humility.
• Encourage risk-taking: Reassure employees that failure is part of learning.
• Maintain accountability: Set high expectations while providing support.
• Psychological safety is about embracing imperfection, fostering a growth mindset, and prioritizing learning and innovation over perfection. It’s an ongoing process that requires consistent effort and self-awareness from leaders.

As mentioned at the end of my first article of these My EMBA Experience articles, Satya Nadella’s transformative leadership at Microsoft exemplifies these three key aspects. As a role model, Nadella demonstrated vulnerability and humility by openly acknowledging past mistakes and emphasizing a growth mindset. His shift from a ‘know-it-all’ to a ‘learn-it-all’ culture encouraged employees to embrace curiosity and continuous learning. By encouraging risk-taking, Nadella fostered an environment where innovation thrived, teams were empowered to experiment without fear of failure, leading to groundbreaking initiatives like Azure’s rapid growth in the cloud market. At the same time, he maintained accountability by setting high expectations and aligning individual and team goals with the company’s vision. This balance of trust and performance reshaped Microsoft’s culture, driving record-breaking innovation and business success.

I made all the approaches mentioned in this article my bible for leadership. Whenever I applied them, I got exceptional results both from client and colleagues’ feedback.

Because at the end of the day we are human beings and humans will thrive when they are in the best condition to express themselves at their best.

I know there are many managers, C-Suite executives, and others who think differently. They may argue, “These approaches only work at companies like Microsoft or big tech firms with profit margins high enough to cover inefficiencies.” When I hear this, I can’t help but think they’re missing the bigger picture.

They often fail to see the inefficiencies already present in their organizations — hours wasted doing nothing, low productivity rates, and employees simply waiting for payday, all without any effort to address or improve the situation.

Start applying these approaches. Start thinking differently. You’ll see your margins increasing, your capacity for innovation growing, and your team’s motivation skyrocketing. And let’s not forget — the reputation of your company will benefit as well.

The future of work is hybrid, and the future of leadership is human. Start today — your team, your organization, and your legacy will thank you.

My EMBA journey continues to inspire me to think about strategic decisions and leadership behaviors that position our teams and clients for success in a fast-changing world.

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of my current or former employers. The framework, technologies, and methodologies discussed are based on the author’s personal insights and experiences. This article is intended for informational purposes only and does not represent my employer’s proprietary solutions or corporate strategies.

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