Leaders can reduce risks and make better decisions by fostering a culture of constructive challenge, according to a recent report from Imperial College’s Centre for Responsible Leadership. The report offers practical strategies for encouraging team members to speak up, with advice that applies to a wide range of organizations.

The authors warn that when employees hesitate to challenge their leaders, the consequences can be serious. For example, Credit Suisse lost $5.5 billion in March 2021 after the collapse of Archegos Capital. A key factor in the loss was a company culture that discouraged tough discussions. Despite the risks, clear guidance on how to promote a more open environment has been hard to find—until now.

The report highlights the importance of leaders asking the right questions to draw out meaningful feedback. General or open-ended questions don’t work as well as questions that invite disagreement directly, such as “Does anyone have a better idea?” or “What might make this option fail?”

The right culture

When employees do raise challenges, leaders should acknowledge them as valid and keep the focus on the idea, not the person. Saying something like “That’s a fair point, and we could consider that option” is more effective than offering vague praise.

Creating an inclusive environment is also crucial. Employees are more likely to speak up if they feel safe and included. Leaders can help by using humor and chatting with team members about non-work topics. It’s also important to give enough time for discussions. Short meetings can shut down debate before ideas are fully explored.

Lastly, the report suggests making team members more accountable for their opinions by asking them to commit to a specific idea or vote on options. This encourages them to engage more actively in discussions.

In short, the report advises leaders to actively seek out challenges from their teams, which can help build stronger and more successful organizations.