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What Is a Growth Mindset? Methods to Break Fixed Thinking and Boost the Challenge Spirit of the Entire Organization

Explaining why a mindset unafraid of failure supports sustainable corporate growth, from the perspectives of psychological safety, challenge spirit, and growth mindset. Also introduces practical steps for building an organizational culture through talent investment.

Last updated: About 2 min read

In the business world, change is always required. However, many organizations and individuals, fearing "failure" excessively, hesitate to take on new challenges, missing opportunities for growth. In today's rapidly changing market, maintaining the status quo means gradual decline. What is indispensable for breaking through this stagnation and achieving sustainable growth is a "mindset that is not afraid of failure."

We hold the vision of "becoming the world's No.1 talent investment company," and we firmly believe that the most important asset for a company is its "talent" (人財). In this article, we explain how a growth mindset can be cultivated at both the individual and organizational levels, and how creating a culture of challenge leads to sustainable growth.

What Is a Growth Mindset?

A growth mindset, a concept proposed by psychologist Carol Dweck, is the belief that "abilities and intelligence can be developed through effort and learning." This is contrasted with a "fixed mindset" — the belief that "abilities are innate and cannot change."

People with a growth mindset view challenges as opportunities for growth, not threats. They see failure not as proof of inability, but as valuable feedback for learning. This fundamental orientation toward challenges and setbacks is what determines whether individuals and organizations grow or stagnate.

Why Organizations Lose Their Ability to Challenge

Many organizations gradually lose their ability to take on challenges. The reasons are clear:

  • Punishment culture: When failure is punished, people stop trying
  • Short-term evaluation: When only short-term results are measured, people avoid risk
  • Lack of psychological safety: When people fear judgment, they stop speaking up
  • Fixed mindset leadership: When leaders believe talent is fixed, they stop investing in development

Building a Challenge Culture: Three Pillars

Pillar 1: Psychological Safety

Psychological safety — the belief that one can speak up, take risks, and make mistakes without fear of punishment or humiliation — is the foundation of a challenge culture. Research by Google's Project Aristotle found that psychological safety was the single most important factor determining team performance.

Leaders create psychological safety by:

  • Modeling vulnerability — sharing their own mistakes and learnings
  • Responding to failure with curiosity rather than blame
  • Celebrating learning, not just results
  • Creating space for diverse perspectives and dissenting views

Pillar 2: Learning Orientation

Organizations with a growth mindset measure learning, not just results. They ask: "What did we learn?" as much as "What did we achieve?" This shifts the focus from performance to development, creating an environment where people are willing to take on difficult challenges because they know they will grow regardless of the outcome.

Pillar 3: Servant Leadership

Leaders who embody servant leadership — who exist to serve the growth and success of their team — create environments where people feel supported to challenge themselves. This is the opposite of command-and-control leadership that creates fear and inhibits challenge.

At INA&Associates, we believe that leaders are responsible for creating the conditions for their team's success, not just directing their activities.

Practical Steps for Developing a Growth Mindset

For Individuals

  • Reframe challenges: Instead of "I can't do this," practice "I can't do this yet"
  • Embrace feedback: See criticism as valuable information, not personal attack
  • Celebrate effort: Recognize yourself for trying, not just succeeding
  • Learn from failure: Systematically extract lessons from setbacks

For Organizations

  • Redesign evaluation systems to reward learning and initiative, not just results
  • Create psychological safety through leadership behavior and organizational norms
  • Invest in development programs that help people grow their capabilities
  • Celebrate failures that produced learning, not just successes

The Connection to Talent Investment

A growth mindset is not just a personal psychological trait — it is the cultural foundation that makes talent investment effective. When individuals believe they can grow, and organizations create environments that support growth, the return on talent investment multiplies dramatically.

This is why at INA&Associates, developing a growth mindset is central to everything we do. We invest not just in skills and knowledge, but in the fundamental orientation toward learning and growth that enables continuous development.

Frequently Asked Questions

Q1: Is it possible to develop a growth mindset even if you have a fixed mindset now?

Absolutely. In fact, awareness that you have a fixed mindset is the first step to developing a growth mindset. The brain is plastic throughout life, and mindsets can change with intentional practice and the right environment.

Q2: How can leaders create psychological safety?

By modeling vulnerability themselves, responding to failure with curiosity rather than blame, and explicitly communicating that learning from failure is valued. The single most powerful thing a leader can do is share their own mistakes and what they learned from them.

Q3: How long does it take to change organizational culture?

Cultural change takes time — typically one to three years for significant shifts. However, behavioral changes can begin immediately. Starting with small wins — changing how meetings are run, how failure is discussed, how learning is celebrated — creates momentum for larger cultural change.

Q4: How do you balance psychological safety with accountability?

Psychological safety and accountability are not opposites — they are complementary. The highest-performing teams have both. Psychological safety enables people to take risks and speak up; accountability ensures that people take those risks seriously and follow through on commitments.

Q5: How do you identify candidates with a challenging spirit in hiring?

In hiring interviews, questions that probe how candidates have faced and overcome difficult challenges in the past are effective. Candidates who can speak specifically about what they learned from failure — not just success — are likely to have high challenge spirit and growth mindset.

Daisuke Inazawa, President & CEO of INA&Associates Inc.

Author

President & CEOINA&Associates Inc.

President & CEO of INA&Associates Inc. Leads real estate brokerage, rental leasing, and property management across Greater Tokyo and the Kansai region. Specialises in income-property investment strategy and advisory for ultra-high-net-worth individuals.

Daisuke Inazawa is the President and CEO of INA&Associates Inc., a Japanese real estate firm headquartered in Osaka with a Tokyo branch. He leads the company's three core businesses — real estate sales brokerage, rental leasing, and property management — across the Greater Tokyo Area and the Kansai region.

His areas of expertise include investment strategy for income-generating real estate, profitability optimisation of rental operations, real estate advisory for ultra-high-net-worth individuals (UHNWIs) and institutional investors, and cross-border real estate investment. He provides data-driven, long-horizon advisory to investors in Japan and overseas.

Under the management philosophy "a company's most important asset is its people," he positions INA&Associates as a "people-investment company" and is committed to sustainable corporate-value creation through talent development. He also writes and speaks publicly on leadership and organisational culture in times of change.

He has passed eleven Japanese professional qualification examinations: Licensed Real Estate Broker (Takken), Certified Real Estate Consulting Master, Licensed Condominium Manager, Licensed Building Management Supervisor, Certified Rental Housing Management Professional, Gyōseishoshi Lawyer (administrative scrivener), Certified Personal Information Protection Officer, Class-A Fire Prevention Manager, Certified Auctioned Real Estate Specialist, Certified Condominium Maintenance Engineer, and Licensed Moneylending Operations Supervisor.

  • Licensed Real Estate Broker (Takken)
  • Certified Real Estate Consulting Master
  • Licensed Condominium Manager
  • Licensed Building Management Supervisor
  • Certified Rental Housing Management Professional
  • Gyōseishoshi Lawyer (Administrative Scrivener)
  • Certified Personal Information Protection Officer
  • Class-A Fire Prevention Manager
  • Certified Auctioned Real Estate Specialist
  • Certified Condominium Maintenance Engineer
  • Licensed Moneylending Operations Supervisor