How you see yourself—your talents, your potential—shapes your life. Turns out, that’s just as true for companies. Whether you’re leading a business or building a team, mindset is everything. And yes, there is science behind it.
Stanford psychologist Carol Dweck first popularized the idea of “fixed” vs. “growth” mindsets. In short, people with a fixed mindset believe their abilities are static, while those with a growth mindset believe they can learn, improve, and adapt. Unsurprisingly, the growth mindset folks tend to go further.
Now, imagine applying that to a company. Organizations can also operate from either mindset—and it has real consequences for innovation, adaptability, and long-term success. I work with financial institutions trying to transform themselves to stay competitive. Spoiler alert: culture, not technology, is usually the biggest barrier. And culture stems from mindset.
The Fixed Mindset Trap
Companies with a fixed mindset engage in a lot of self-limiting thinking. They resist change, fear failure, and focus more on looking good than getting better. Sound familiar?
Here are a few warning signs:
- Change resistance: “We’ve always done it this way” becomes a battle cry.
- Risk aversion: Fear of failure kills efforts at innovation.
- Status-focused: Success is measured by looking better by being in control, not by learning or growing.
- Siloed teams: Collaboration is limited because people are focused on individual success.
- Neglect of talent: Development takes a back seat because skills are seen as fixed.
- Bureaucratic management: A focus on procedures and approvals creates barriers to doing anything.
These companies may describe themselves as “small” or have “limited resources”. They use this thinking as a rationale for avoiding big ideas or bold moves. Ironically, it’s often smaller, more agile competitors who aren’t afraid to think big that outperform them.
The Growth Mindset Advantage
Now flip the script. Companies with a growth mindset believe people and organizations can improve through effort and learning. These businesses embrace change, encourage innovation, and invest in people.
They also:
- Constantly seek to improve: They challenge assumptions and test new ideas.
- Adapt quickly: They’re not afraid to pivot when the market demands it.
- Celebrate smart failures: Mistakes are learning opportunities, not career-enders.
- Collaborate freely: Teams share knowledge and solve problems together.
- Invest in people: Employee growth is a priority, not an afterthought.
And here’s the kicker: this mindset isn’t reserved for big companies with deep pockets. I’ve seen smaller firms punch way above their weight just by thinking big and committing to growth.
So, How Do You Make the Shift?
Transforming from a fixed to a growth mindset isn’t just a switch you flip. It takes time, effort, and, most of all, leadership. Here’s how to get started:
- Leadership Must Walk the Talk
If the exec team doesn’t believe in change, no one else will. Leaders need to model curiosity, embrace failure, and show they’re always learning too. They set the tone, allocate resources, and help overcome resistance.
- Develop Your People
Worried about training employees who might leave? Turn that thought around: What if you don’t train them and they stay? Invest in workshops, mentoring, and learning opportunities. The return on this investment is a more engaged, capable team.
- Rethink Rewards
Stop just rewarding successful outcomes—start recognizing effort, learning, and collaboration. Highlight innovation and risk-taking, even if it doesn’t always lead to instant wins. That’s how cultures shift.
- Foster Collaboration
Tear down the silos. Create cross-functional teams, open lines of communication, and spaces (virtual or physical) where ideas flow. Psychological safety—where people aren’t afraid to speak up—is a game-changer.
- Adopt Agile Thinking
Agile isn’t just for tech teams. It’s a way of working that prioritizes iteration, feedback, and flexibility. Start small—maybe with a pilot project—and learn as you go. The results? Faster time-to-market, happier customers, and more engaged employees.
- Reframe Failure
Failure isn’t the end. It’s feedback. Treat it that way and suddenly, people are more willing to take smart risks. Innovation doesn’t happen without a few missteps. Another way of looking at it is that if you’re not failing now and then, you’re not really exploring the opportunities before you.
- Communicate. A Lot.
Open, transparent communication builds trust. Share successes and stumbles. Listen to feedback. Keep everyone aligned on goals and progress. It sounds basic, but it’s powerful.
- Set Goals That Stretch
Forget just hitting KPIs—set goals that promote learning and growth. Encourage employees to push their limits, try new things, and build new skills.
- Track, Reflect, Adjust
Culture change isn’t one-and-done. Keep tabs on progress. Revisit goals. Adjust strategies as you learn. This is an ongoing process, and that’s okay.
Final Thoughts
Companies don’t succeed just because of a great product or clever marketing. They succeed because they grow. And that growth starts with mindset.
In today’s fast-paced world, the companies that win are the ones that keep learning, adapting, and getting better. Fixed mindset organizations? They might hang on for a while, but eventually, the world moves on without them.
So, if you want to future-proof your company, don’t just upgrade your tech—upgrade your mindset.
