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Scaling Strategy #44 | Fostering a Growth Mindset

by Sam Palazzolo
Aug 23, 2025
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I’ll be blunt: I get impatient when leaders say they want “innovation” while running a culture where mistakes are punished and learning is an extracurricular. That’s theater, not growth.

The data is clear. In growth-mindset cultures, employees are 65% more likely to say their company supports risk-taking and 49% more likely to say it fosters innovation (Harvard Business Review; open PDF here). Meanwhile, only 31% of U.S. employees were engaged in 2024—a 10-year low—which tells you how rare real learning cultures are (Gallup). And when organizations invest in learning, 7 in 10 people feel more connected to the company and 8 in 10 say it adds purpose to their work (LinkedIn Workplace Learning Report 2024).

My '50 Scaling Strategies' eBook puts a fine point on it: as you scale, a growth-oriented mindset and resilient culture are what keep the organization moving under pressure. And specifically this week’s Strategy #44: Fostering a Growth Mindset—the belief that abilities can be developed through effort and learning—is critical for innovation, problem-solving, and adaptability.

From “Mindset Talk” to a Learning Operating System

Talking about mindset won’t change outcomes. Installing a simple learning operating system will. I recommend using the HBR “Three Building Blocks of a Learning Organization” (Garvin, Edmondson, & Gino, 2008)—it’s practical, proven, and easy to implement this week (article; PDF here).

Actionable Steps (apply in 7 days)

  1. Supportive Learning Environment

    • Start every team meeting with a 90-second “What I learned last week.”

    • Leader publishes a short “failure I’m grateful for” note this week to normalize learning.

  2. Concrete Learning Processes & Practices

    • One 30-minute micro-retro on a real process (no blame; only improvements).

    • Launch a “1% Experiment”: each team runs one tiny, reversible test with a single success metric and due date.

  3. Leadership That Reinforces Learning

    • In 1:1s, ask two questions only: “What did you try?” and “What did you learn?” Record answers publicly.

    • Recognize the behaviors (experimentation, sharing, retros), not just outcomes.

Why this works: it addresses safety, systems, and leadership signals—the triad required for mindset to become muscle.

Real World Example

A product org struggling with missed quarters and a “don’t fail” culture. Talented team, low experimentation...

Intervention (4 weeks):

  • Week 1: GM shares two recent mistakes and what changed as a result (safety).

  • Week 1–2: Two micro-retros → five process fixes published in a shared Learning Changelog (systems).

  • Week 2–4: Each squad launches one 1% Experiment; leaders ask the two learning questions in every 1:1 (signals).

Results (Quarter following):

  • 18 documented experiments, 6 shipped improvements.

  • Cycle time on a core workflow down 14%.

  • Employee pulse score on “safe to speak up” up 11 points.

  • Two individuals promoted based on learning leadership, not perfect outputs.

Advice if you’ve been stuck: Don’t start with training or slogans. Change the weekly rituals first. You’ll feel cultural drag reduce within two sprints.

Real Strategies. Real Results.

A growth mindset isn’t a motivational poster—it’s an operating choice. The organizations that scale are the ones that turn mistakes into IP, experiments into habits, and leaders into teachers.

Sam Palazzolo
Real Strategies. Real Results.

PS – Here’s how I can help right here/right now:
1 – Catalyst Audit – Identify if your growth plan is globally ready (and where it’s likely to break) – 5 questions/3 minutes: https://www.sampalazzolo.com/assessments/2148521795
2 – Catalyst Board – Join an elite peer group navigating similar international scaling challenges – Email me at [email protected] to find out more.
3 – Catalyst Strategy Session – A focused 1:1 engagement to get your global expansion plan aligned and actionable – https://calendly.com/spalazzolo/60-minute-strategic-catalyst-session-with-sam-palazzolo

 

Sources & Further Reading

  • Harvard Business Review. How Companies Can Profit from a “Growth Mindset” (stats on innovation, risk-taking, trust, ownership). Article | PDF. Harvard Business ReviewHubSpot

  • Gallup. U.S. Employee Engagement Sinks to 10-Year Low (31% engaged). Gallup analysis. Gallup.com

  • LinkedIn Learning. Workplace Learning Report 2024 (purpose and connection stats). PDF. LinkedIn Learning

  • Garvin, Edmondson, & Gino (2008). Is Yours a Learning Organization? (three building blocks). HBR | PDF. Harvard Business Reviewyellowedge.files.wordpress.com

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