Abstract: This article discusses the importance of fostering a culture of vulnerability in organizations in order to improve performance and innovation. It explores the research showing that psychological safety, where employees feel comfortable taking risks and admitting weaknesses, leads to better teamwork, problem-solving and learning. While research demonstrates the benefits of vulnerability, most companies still struggle to create truly psychologically safe cultures. The article then provides practical recommendations for leadership to cultivate vulnerability based on real-world company examples. These include leaders modeling vulnerability, defining clear expectations for respectful engagement, aligning rewards and accountability to encourage risk-taking, and establishing ongoing processes like workshops and reviews that support development from failures and critique. By consciously shaping behaviors, systems and development opportunities, the article argues leaders can embed vulnerability into the culture in a way that transforms how their organization learns, improves and competes over the long-run.

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