Curiosity is the new KPI: how top teams are failing forward to win the future

The Founders Corner®

The gist

Curiosity is now a KPI: the most successful teams are failing forward, turning risk and experimentation into their secret weapon for future-proof innovation.

What to know

  • By mid-2026, companies like LinkedIn and Netflix show that curiosity-driven teams run 48% more experiments—and leaders like Reid Hoffman advocate for a 15% failure rate to keep innovation alive.
  • Top organizations such as P&G and Vanta hire for curiosity and humility, fostering psychological safety, constructive conflict, and learning from failure through structured career tracks and coaching.
  • Winning with AI requires blending machine speed with human empathy and trust—leaders like Kathie Patterson warn that emotional intelligence and transparent communication are now mission-critical in high-stakes decisions.

Psychological Safety Fuels Curiosity

When leaders normalize vulnerability and reframe failure as hypothesis testing, teams shed fear and accelerate learning through risk-taking and experimentation.

Curiosity in organizations often falters under the weight of fear—fear of failure and the demand for immediate answers suppress the natural drive to question and learn. As early as January 2026, thought leaders like Astro Teller advocated for embracing intellectual honesty by prioritizing tackling the hardest problems first and valuing early, messy progress over polished presentations, thereby cultivating psychological safety that accelerates learning. This shift from execution to discovery reframes failure as hypothesis testing rather than being 'wrong,' reducing personal shame and encouraging experimentation essential for adaptive innovation.

Psychological safety emerges as the cornerstone for fostering curiosity and innovation, requiring leaders to create non-judgmental environments where vulnerability and risk-taking are normalized. Paul’s guidance to build atmospheres free from criticism, coupled with leadership modeling of creative behaviors, sets the tone for teams to challenge assumptions and embrace experimentation. Techniques like pre-mortems, popularized by 'octopus organizations,' encourage teams to imagine spectacular failures upfront, fostering a mindset that is 'paranoid in private, confident in public,' which builds resilience and readiness for adaptive innovation.

By mid-2026, data from superteams at companies like LinkedIn and Netflix underscore the power of curiosity-driven experimentation: these teams run nearly 48% more experiments than average, normalizing failure as a necessary step toward progress. Leaders such as Reid Hoffman and Reed Hastings explicitly encourage risk-taking—Hoffman’s mantra to 'fail 15% of the time' and Hastings’ wariness of too many successes highlight the importance of psychological safety in sustaining innovation velocity. Simple cultural practices, like asking 'What are you stuck on?' during meetings, transform obstacles into collaborative problem-solving opportunities, reinforcing a culture where curiosity thrives.

The human dimension of curiosity and psychological safety is critical in navigating uncertainty and technological disruption, especially in AI transformation contexts. Leaders like Elizabeth Weingarten and Shelly Swanback emphasize that curiosity starts with a healthy relationship to uncertainty and oneself, integrating personal reflection with professional challenges. Emotional intelligence, transparent communication, and vulnerability—such as Swanback’s daily commitment to earning trust and modeling experimentation—create environments where teams feel safe to engage openly, question the status quo, and innovate amidst ambiguity. This culture of continuous learning and growth mindset, as reinforced by IBM’s Arvind Krishna and others, counters loss aversion and primes organizations for adaptive innovation.

Sources
DisrupTVAWS Executive InsightsMeet The LeaderInvesting 101HBR IdeaCastCatalyst

Curiosity-Driven Leadership Wins

Hiring for grit, humility, and a growth mindset—not pedigree—builds teams that thrive amid complexity and see uncertainty as fuel for innovation.

Adaptive leadership thrives on a foundation of intense curiosity, humility, and a growth mindset rather than mere confidence or specialized expertise. Stevie Case highlights the pitfalls of hiring based on pedigree or playbooks, noting that grit and adaptability are far more valuable than rigid prior experience, as candidates who own their failures and demonstrate hunger tend to excel in complex environments. This approach aligns with Anusha Iyer’s emphasis on non-judgmental curiosity and data-driven learning, fostering teams that continuously refine their strategies and embrace uncertainty as an opportunity rather than a threat.

Empathy, servant leadership, and values-based self-leadership are critical behaviors that cultivate resilient, high-performing teams capable of navigating complexity. Albino Sanchez and Chef Robert Irvine both stress that leaders who genuinely care for their people, listen actively, and balance tough love with encouragement build trust and motivation beyond financial incentives. This people-centered approach creates psychological safety where teams feel empowered to innovate and learn from failure, as echoed by the servant leadership model advocating for removing roadblocks and asking, 'How can I help you?'

High-performing adaptive teams are forged through deliberate culture-building that balances fierce external competitiveness with deep internal collaboration and psychological safety. Stevie Case’s vision of teams that are 'intensely competitive with the outside world and inside the walls' complements Judith Wallenstein and Khadija Ben Hammada’s insights on trust and purpose enabling organizational speed and clarity. Furthermore, leaders like Nelly Viseux demonstrate that transparency, accountability, and tiered communication empower autonomous decision-making vital for resilience in regulated, high-stakes environments such as biotech.

Modern leadership demands a nuanced balance of humility, empathy, and strategic alignment to guide teams through unprecedented uncertainty and rapid change. As Garry Tan advises, knowing when to pivot rather than blindly persist prevents wasted effort, while leaders like Shelly Swanback and Brieane Olson show that vulnerability and authenticity foster deeper team connection and psychological safety. This shift away from command-and-control toward trust-based, collaborative leadership is reinforced by the need for CEOs and executives to cultivate cultures where robust debate and diverse perspectives drive innovation and collective resilience.

Sources
First Round CapitalCode Story: Insights from Startup Tech LeadersFireside Product Management by Tom LeungImagination in ActionMick UnpluggedThe FDA Group's Insider Newsletter

Collaboration and Constructive Conflict

Innovation flourishes in cultures where 'Bridgers' and 'Catalysts' spark creative abrasion, and trust enables teams to debate ideas without fear or politics.

Leaders like Stevie Case at Vanta demonstrate that building collaborative cultures begins with hiring for intense curiosity paired with humility, fostering teams that are fiercely competitive externally yet deeply cooperative internally. By prioritizing grit and cultural fit over rigid expertise, Case avoids the pitfalls of candidates who bring inflexible playbooks, instead seeking those who exhibit a growth mindset and passion for overcoming challenges, as revealed through probing interview questions about perseverance.

Innovation thrives when leaders cultivate 'Bridgers' and 'Catalysts'—roles that cross organizational boundaries to co-create and activate broader innovation ecosystems—while embracing constructive conflict as a vital ingredient. As Linda Hill and others emphasize, too little conflict stifles idea debate, so creating environments for 'creative abrasion' balances respectful yet direct conversations, often facilitated by shared data and common language that depoliticize discussions and focus teams on learning rather than emotional disputes.

A culture rooted in shared purpose and trust enables teams to engage in the difficult, emotionally charged work of innovation. Albino Sanchez highlights that such cultures are not just enablers but the very strategy itself, where servant leadership and genuine listening foster environments where people feel valued and influential. This trust encourages open dialogue and constructive conflict, while leaders develop their emotional intelligence through feedback and coaching to align intent with impact.

Organizations like P&G exemplify how structural innovations—such as creating prestigious career tracks that reward learning from experiments rather than short-term outcomes—can reduce career risk and embolden teams to embrace failure as a learning opportunity. By investing in coaching for business leaders to become effective sponsors and encouraging teams to 'fall in love with problems, not solutions,' P&G fosters open dialogue, adaptability, and a culture where killing projects is a strategic, non-punitive decision that sustains continuous innovation.

Sources
First Round CapitalDaily Creative with Todd HenryHBR IdeaCastFireside Product Management by Tom LeungHarvard Business Review

AI Speed Meets Human Empathy

As AI compresses decision cycles, leaders must double down on psychological safety and emotional intelligence to preserve trust and drive responsible transformation.

By early 2026, leaders like those at Harvey emphasized the necessity of leveraging AI not just for incremental improvements but to dramatically accelerate operational efficiency, aiming for gains far beyond typical model outputs—60% improvements instead of 20%. This rapid AI-driven pace compresses decision-making timelines, forcing leaders to adapt quickly without the luxury of prolonged deliberation, underscoring that successful leadership in the AI era demands prioritizing technological augmentation while maintaining agility.

Kathie Patterson, CHRO of Ally, highlights a crucial tension in AI transformation: while technology drives speed and scale, human empathy remains indispensable, especially in high-stakes, emotional contexts where trust and accountability cannot be delegated to machines alone. Organizations face the unresolved challenge of discerning where human presence must anchor AI systems to preserve trust, a balance that many have yet to master but is vital for authentic leadership in an AI-integrated world.

Cultivating a culture of psychological safety and curiosity emerges as foundational for integrating AI with human empathy. Experts like Amy Edmondson and Shelly Swanback stress that before advancing AI adoption, organizations must foster environments where employees feel safe to question, experiment, and embrace uncertainty. This cultural groundwork enables leaders to harness critical soft skills—curiosity, imagination, emotional intelligence—that complement AI’s capabilities, transforming so-called 'soft skills' into hard business imperatives amid disruption.

Leaders such as RBC’s Kelly Bradley and Shelly Swanback illustrate that the organizations excelling in AI transformation are those that blend machine efficiency with uniquely human qualities like judgment, courage, and authentic connection. Bradley notes, 'AI can draft the memo, but it can't read the room,' emphasizing that emotional intelligence and transparent communication are critical to maintaining trust. Practical leadership behaviors—regular, agenda-free team check-ins, balancing client and internal focus, and honest messaging—accelerate innovation and foster adaptive, empathetic cultures that thrive amid rapid technological change.

Sources
In DepthFuture Ready Leadership With Jacob MorganGuy Kawasaki's Remarkable PeopleCatalystHBS Managing the Future of Work

Pre-mortems and Failure Celebrations

Anticipating failure through pre-mortems and celebrating intelligent risk-taking transforms setbacks into strategic muscle and keeps innovation pipelines alive.

Pre-mortems have emerged as a vital leadership tool for navigating uncertainty by encouraging teams to imagine and analyze potential failure scenarios before project launch. This practice, championed by 'octopus organizations' and inspired by Andy Grove's fire department analogy, shifts the mindset from execution to discovery, building what one analysis calls 'survival muscle' that enhances long-term adaptability. Founders who privately engage in such war-gaming demonstrate greater resilience and confidence publicly, a quality perceptible even in brief investor pitches, underscoring how anticipatory thinking fosters organizational robustness amid rapid change.

Reframing failure as a form of hypothesis testing rather than a negative outcome profoundly reduces fear and promotes a culture of experimentation and learning. Leaders like Reid Hoffman and Reed Hastings exemplify this by encouraging teams to embrace failure—Hoffman advocates for failing 15% of the time to avoid stagnation, while Hastings warns that too many successes may signal insufficient risk-taking. This approach is echoed at companies like Shopify, where Tobi Lütke calls failure the 'successful discovery of something that didn’t work,' and P&G, which rewards learning from experiments, including failures, through a dedicated career track. Such cultures celebrate failure publicly, as seen in the Art of Accomplishment’s annual failure celebrations, reinforcing that intelligent failure is a critical driver of innovation.

Effective leadership through uncertainty demands balancing high expectations with strong support systems that foster psychological safety and empower teams to take risks without fear of reprisal. Leaders like Nelly Viseux in biotech emphasize transparency, accountability, and separating innovation from execution to maintain focus and agility, while IBM CEO Arvind Krishna advocates for accepting a 50% success rate to counteract loss aversion and sustain innovation pipelines. This balance is critical to avoid fear-based cultures that stifle growth, instead cultivating environments where teams can stretch goals realistically, learn from setbacks, and pivot decisively—embodying the mindset that 'there is no business as usual' and all efforts are working hypotheses.

Curiosity-driven leadership, characterized by asking thoughtful questions and modeling vulnerability, is essential for adaptive innovation amid uncertainty. Leaders like Shelly Swanback stress that leadership is less about having all the answers and more about building teams comfortable with ongoing questions, while Paul highlights the need to create psychologically safe spaces where even 'silly' ideas can surface without criticism. This culture of inquiry aligns with the AI era’s emphasis on prompting and questioning, making curiosity a strategic asset. By fostering open dialogue, challenging assumptions, and embracing emotional intelligence, leaders unlock creative potential and enable organizations to respond intentionally rather than reactively to rapid change.

Sources
AWS Executive InsightsInvesting 101HBR IdeaCastUncapped with Jack AltmanHarvard Business ReviewHarvard Business Review

Resilience Through Values and Trust

Embedding transparency, accountability, and radical candor into leadership culture empowers teams to navigate ambiguity, debate openly, and sustain high performance.

Organizational resilience in high-stakes biotech and innovation-driven companies hinges on leaders embedding core values such as integrity, transparency, and accountability into the culture, enabling teams to navigate scientific uncertainty and operational challenges with autonomy and clear communication. Nelly Viseux’s approach at a cell and gene therapy firm illustrates how separating innovation from execution through an intentional crossover point balances creativity with operational rigor, while tiered escalation systems empower frontline decision-making without sacrificing organizational visibility—critical for patient outcomes and sustaining mission focus despite pipeline shifts or product failures.

High-performing leadership teams are deliberately cultivated through trust, psychological safety, and shared accountability, with CEOs playing a pivotal role in modeling values and fostering alignment that transcends individual ambitions. As Judith Wallenstein and Khadija Ben Hammada emphasize, when the executive team 'clicks,' the entire organization moves faster and clearer, a dynamic reinforced by frameworks like Aiko Bethea’s Anchored, Aligned, Accountable model which strengthens self-leadership and clarity, enabling leaders to confront scarcity mindsets and difficult conversations that otherwise erode trust and culture.

Sustained organizational performance in complex, ambiguous environments demands leaders who combine grit, adaptability, and intellectual curiosity with empathetic engagement to ground teams in reality while inspiring hope. This duality is reflected in leadership cultures that balance psychological safety with radical candour, encouraging robust debate and conflict as tools for clarity rather than threats to unity, as seen in P&G’s lean innovation transformation where leadership alignment on values and accountability normalized project termination to prevent resource drain and foster risk-taking.

Effective leadership alignment requires continuous executive development, candid communication, and a shared identity that prioritizes the leadership team as the primary unit over functional silos. Keith Cowing’s insights on co-founder trust and evolving roles underscore the necessity of mutual integrity and open feedback to prevent organizational drift, while Tara Marotti’s concept of 'one voice leadership' highlights that alignment on direction—not uniformity of expression—is essential for strategic clarity and employee confidence during change.

Sources
The FDA Group's Insider NewsletterThe So What from BCGFirst Round CapitalThe Duct Tape Marketing PodcastDuct Tape MarketingBoston Consulting Group

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