ORGANISATION & CULTURE
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hen technological disruption outpaces quarterly planning cycles, the approaches of successful companies suggests the greatest competitive advantage may not be superior capital allocation or breakthrough IP, but the ability of a workforce to speak truth to power without fear of retribution. Psychological safety has become a focus area for organisations looking to accelerate performance. Across industries, this approach can vary significantly, with some treating it as the remit of People teams whilst others position it as a boardroom priority. Microsoft, Google and Salesforce have taken different approaches to embedding psychological safety into their operations, each offering lessons for HR leaders evaluating their own cultural strategies.
From‘ know-it-all’ to‘ learn-it-all’ When Satya Nadella became Chief Executive Officer of Microsoft in 2014, he inherited a company known for its competitive culture. According to the company, its previous measures of success were centred on employees“ showcasing their own individual achievements and how their accomplishments exceeded their peers”. Stack ranking, a performance management system that asked managers to categorise a fixed percentage of their teams as underperformers, was a defining feature of the company’ s approach. Satya, who first joined Microsoft in 1992, transformed this culture by reinventing the company’ s leadership model and encouraging an environment where employees could learn from one another. Many of these changes were brought about through the work of Kathleen Hogan, who was appointed Chief People Officer of Microsoft in 2015, and Amy Coleman, who became Chief People Officer after Kathleen transitioned into her current role as Executive Vice President of Strategy and Transformation in March 2025. Central to this transformation was the development of a new leadership model called“ Model, Coach, Care”. Built over two years through employee focus groups and surveys, the framework established three leadership behaviours: setting an example, fostering growth and showing empathy. The approach has been designed to empower employees, foster innovation and deliver business success. The company dismantled stack ranking in favour of‘ Talent Talks’, a performance system centred on an employee’ s overall impact and contribution to their team rather than individual metrics. Senior leaders now meet with the Chief Human Resources Officer and Satya to discuss
114 March 2026