INSIGHTS

Rethinking embarrassment with highly skilled teams

Effective use of a key pillar of psychological safety

EXECUTIVE BRIEFINGS | 5 MINUTE READ | 3 JUNE 2025

Summary

• Even highly skilled teams can underperform when fear of embarrassment stifles open communication and innovation.

• Psychological safety is a critical driver of team effectiveness, enabling risk-taking, learning, and creative collaboration.

• Leaders can unlock team potential by modelling vulnerability, encouraging open dialogue, and celebrating effort—not just outcomes

Where acute skills shortages dog organisations, many are investing significant resources to attract and retain top technical talent. Teams are being built with individuals who possess exceptional hard skills, and leaders are setting ambitious goals, streamlining processes, and striving to remain agile in response to an unpredictable economic landscape.

Yet, despite these investments, many organisations find their teams underperforming. Performance reviews and process audits reveal that, while systems and capabilities are robust, outcomes remain average—falling short of both expectations and the team’s apparent potential. This persistent gap raises a critical question: What is holding high-skilled teams back from achieving excellence?

Impact of embarrassment on team dynamics

Embarrassment is a natural human emotion, but in the workplace, it can have outsized effects. When team members fear embarrassment, they may:

Withhold creative or unconventional ideas

Avoid asking clarifying questions

Refrain from admitting mistakes or knowledge gaps

These behaviours undermine learning, erode trust, and ultimately limit team growth. Rebooter Group's own research and client experience confirm that environments lacking psychological safety discourage the very behaviours that drive innovation and adaptability.

Embracing embarrassment

Forward-thinking organisations are using decades or even centuries old methodologies to actively reframe embarrassment. These are not seen as a weakness, but as a catalyst for growth. By normalising vulnerability and creating safe spaces for interpersonal risk-taking, leaders can unlock deeper trust and higher performance.

Applied example: The “One Word Story” exercise.

One practical approach is the use of interactive exercises rooted in emotional intelligence and applied improvisation. For example, this exercise asks each team member to contribute a single word, building a story collaboratively, one word at a time.

This simple activity often triggers hesitation or “freezing”, seen as a moment where the fear of embarrassment surfaces. However, when contributions are accepted without judgement, team members experience firsthand that mistakes or awkward moments are not only tolerated but embraced. Over time, confidence grows, and creativity flourishes. Such exercises serve as microcosms for the broader team environment, demonstrating the tangible benefits of psychological safety.

Four leadership strategies

To translate these insights into action, Deloitte recommends the following evidence-based strategies:

① Model Vulnerability
Leaders should openly share personal experiences of mistakes or uncertainties, signalling that imperfection is not only acceptable but expected in the pursuit of growth.

② Encourage Open Dialogue
Establish regular forums—such as retrospectives or innovation sessions—where team members can voice concerns, share ideas, and ask questions without fear of ridicule.

③ Implement Reflective Practices
After projects or meetings, hold structured debriefs to discuss what worked well and what could be improved, focusing on learning rather than blame.

④ Celebrate Effort and Courage
Recognise and reward the willingness to contribute, experiment, and take risks, regardless of the immediate outcome. This reinforces a culture where effort and learning are valued alongside results

Leadership skills gap

While many organisations promote individuals based on technical skills, few invest adequately in developing the interpersonal and emotional intelligence needed to navigate tough conversations effectively. This gap leaves managers ill-equipped to address issues early, resulting in a reactive rather than proactive leadership culture.

Conclusion: embarrassment as a bridge to innovation

Embracing embarrassment within teams is not about promoting discomfort, but about recognising it as a natural and necessary part of growth and innovation. By fostering psychological safety, organisations can empower individuals to express vulnerabilities, collaborate more deeply, and unlock new levels of creativity and resilience.

As psychological safety becomes a cornerstone of high-performing teams, addressing the subtle yet impactful emotion of embarrassment is essential for sustained success in today’s dynamic business environment.

For further insights on cultivating high-performing teams and embedding psychological safety into your organisational culture, connect with Rebooter Group's Human Psychological Safety and Performance specialists.