Leading with Agility: Growth Mindset

Introduction

In 2014, Microsoft was facing an identity crisis. Once the undisputed leader in tech, the company had grown more bureaucratic, slow to innovate, and was rapidly losing ground to more agile competitors in cloud computing, AI and mobile. The world was moving faster, and Microsoft seemed stuck. That was until Satya Nadella took the helm as CEO and ignited a cultural overhaul in the company. 

For Nadella, agility wasn’t just about new technologies or methods. At its core, it was about culture. Drawing from psychologist Carol Dweck’s concept of the growth mindset, he challenged the company to move from a “know-it-all” to a “learn-it-all” mentality. This subtle but powerful shift laid the foundation for a complete organisational transformation.

Under Nadella, Microsoft embraced experimentation, cross-functional collaboration, and resilience, leading to a dramatic resurgence in innovation, employee engagement, and market value. More than a recovery story, it illustrates how a commitment to a growth mindset can spark agility and elevate performance at every level. So, how can leaders cultivate agility not just in systems, but in people? What does it mean to lead with a growth mindset?

Growth vs. Fixed Mindset: What’s the Difference?

Employees may not always voice frustrations, but when they do, it reflects leadership. A leader’s mindset shapes whether teams feel empowered or constrained. But what does mindset really mean, and how does it affect team operations, decisions, and change?

At the core of this issue, the tension reflects a clash between two leadership approaches: 

• Fixed mindset: Leaders who see skills as static, avoid risks, and cling to “how we have always done it” 

• Growth mindset: Leaders who believe in development, embrace challenges, and see potential in every team member

Differences between fixed and growth mindsets (adapted from lifehack.org).

The implications of these mindsets are undeniable; a fixed perspective breeds hesitation, while a growth approach encourages agility and innovation. Consider how Microsoft’s cultural turnaround did not start with a new product, but rather Nadella’s work in resetting the company’s way of thinking. 

The following case study offers insight into how mindset is reflected in leadership practices, and how it can either restrict or unlock an organisation’s potential.

Two Mindsets, Two Outcomes

Case Study A: Company X’s Fixed Mindset Problem

Company X is a regional logistics firm that once dominated its sector but is now struggling to adapt to digital disruption and shifting workforce expectations. While its leadership prides itself on operational efficiency and technical expertise, the company has also fostered a work environment driven by perfectionism, fear of mistakes, and hierarchy.

Over time, several challenges have unfolded:

1. Fear of Making Mistakes

The leadership’s mantra of “Let’s not break what’s already working” has discouraged innovation. After a digital pilot failed, leaders saw it as proof that new ideas were too risky. Junior staff often stay silent about inefficiencies, fearing blame if things go wrong.

2. Lack of Psychological Safety

Weekly team meetings, intended to build collaboration, have become sessions where mistakes are publicly called out. The General Manager often labels them as “carelessness” or “lack of thinking,” prompting employees to focus on avoiding blame. Instead of sharing ideas, they now echo team leaders to stay safe.

3. Micromanagement

Managers, pressured to maintain an image of flawless execution, closely monitor their teams. Every email needs approval, work hours are tracked, and tasks are rewritten without feedback. One executive calls themselves “the final filter,” creating bottlenecks that stifle ownership and kill initiative.

4. Poor Team Morale and Engagement

Exit interviews often reveal a common pattern: high stress, unclear growth paths, and lack of trust. Although HR conducts annual surveys, many employees doubt their feedback leads to real change. As a result, younger staff frequently quiet-quitting within a year or two, citing burnout or seeking workplaces where their efforts are valued.

Furthermore, managers at Company X often resist evolving their approach and continue behaviours that hinder progress. Some common examples include:

1. Ego and Identity Attachment

Senior managers and staff hide behind hierarchy to dominate conversations, seldom seeking input from others. Even when junior colleagues offer relevant expertise, their opinions are often overlooked.

2. Time Pressure and Short-Term Thinking

Instead of prioritising training and development, learning sessions are often overlooked in favour of urgent tasks. Development plans made during performance reviews frequently go unfulfilled.

3. Mistaking Support for a Growth Mindset

A recent internal campaign promoted “resilience” with posters and quotes, but workflows, KPIs, and feedback systems stayed the same. Managers praise staff for “staying upbeat” despite being overwhelmed but provide little real support for learning from setbacks or experimenting with new approaches.

Case Study B: Company X's Shift Toward a Growth Mindset

To improve its company ethos, Company X leaders attended a leadership workshop where they recognised that embracing continuous learning and adaptability can help overcome the company’s current stagnation.

Building a growth mindset at Company X required several key steps:

1. Creating a Psychologically Safe Space

Managers now encourage suggestions by responding with curiosity rather than criticism. For instance, one team has adopted a “no instant veto” rule, allowing ideas to be explored fully before evaluation.

2. Providing Valuable Feedback

After-action reviews now focus on learning from mistakes instead of assigning blame. Feedback has shifted from harsh critiques to structured discussions of successes and improvements, encouraging greater risk-taking in campaign ideas.

3. Having a Space for Experimentation

Company X began giving new ideas and processes space to grow by encouraging experimentation. This openness allowed teams to refine current practices and adapt quickly to the demands of a constantly changing industry.

4. Overcoming Groupthink

Meetings were redesigned to encourage dissenting opinions by assigning roles like “devil’s advocate” or “defensive pessimist.” This approach sparked critical thinking while maintaining psychological safety, surprising team leads with valuable new ideas.

Beyond transformation at the managerial level, Company X empowered employees at all levels to drive change from the ground up:

1. Role Model the Behaviour First

Seeing a junior analyst share her weekly reflection log focused on learning moments, her manager followed suit by sharing his notes during stand-ups. This helped create a new norm of open learning within the company.

2. Suggest Collaborative Experiments

To learn from setbacks, a product team proposed a “failure gallery” retrospective to review what went wrong. The manager embraced the idea and now holds these sessions quarterly.

3. Reframe Feedback as a Resource, Not a Risk

A designer thanked her manager for asking clarifying questions during a tough meeting, saying it boosted her confidence to do the same. This validation encouraged the manager to show more vulnerability in future meetings.

4. Develop Managers in New Leadership Competencies

To promote continuous learning, Company X introduced targeted coaching for managers. This shifted their focus from control to empowerment, with workshops teaching skills like fostering psychological safety.

5. Leading with Agility

The management team began sharing their learning curves openly during town halls and piloted “test-and-learn” initiatives. By decentralising decision-making, they showed that agility starts with leaders who embrace uncertainty and empower others.

Thanks to leadership dedication and active employee involvement, Company X has blossomed into a vibrant, innovative organisation. With a shared vision and empowered teams, the company now embraces change confidently, fostering continuous growth and breakthroughs that position it strongly for the future.

Conclusion

Having the right corporate values goes beyond just ensuring a less toxic work environment. It ensures continued growth and innovation from the team, not fearing mistakes and taking them as something that they can improve on.

Changing mindset and culture can be challenging, but with the right guidance, it becomes an achievable journey. At aAdvantage, we partner with organisations to help unlock their potential and build lasting agility.

Ready to take your organisation’s culture to the next level? Discover how aAdvantage can help you build a growth mindset and unlock lasting agility.