Organizational Culture Drives Growth Mindset and Performance

In a world often swayed by the immediate and the obvious, this conversation with Carissa Romero, co-founder of Paradigm, reveals the profound, often overlooked, consequences of how organizations approach culture, belonging, and mindset. Romero, drawing from her academic roots in psychology and extensive experience advising leading companies, argues that true organizational transformation hinges not on superficial initiatives, but on a deep, data-driven understanding of systemic dynamics. The hidden consequence of well-intentioned but poorly executed culture work is the perpetuation of fixed mindsets and a lack of genuine belonging, ultimately hindering performance and innovation. Leaders who grasp these non-obvious implications--understanding that culture is a strategic advantage, not a soft skill, and that data is the compass for genuine change--will gain a significant edge in building resilient, high-performing organizations. This analysis is essential for leaders, HR professionals, and anyone invested in creating workplaces where everyone can truly thrive.

The Culture Paradox: Why Intentions Fall Short Without Rigor

The prevailing narrative around workplace culture often focuses on the immediate, the visible, and the easily implementable. Companies chase the latest trend, hoping a quick training or a new initiative will magically transform their environment. However, Carissa Romero argues that this approach is fundamentally flawed, leading to wasted effort and a perpetuation of the very problems they aim to solve. The core issue, she explains, lies in mistaking individual mindsets for organizational culture, and failing to recognize how the environment itself shapes behavior.

Romero highlights the distinction between a fixed mindset, where abilities are seen as innate and unchangeable, and a growth mindset, where effort and learning are valued as paths to development. While many organizations focus on identifying individuals with growth mindsets or attempting to "fix" those with fixed ones, Romero points out a critical oversight: the organization itself can foster either a fixed or a growth culture. If mistakes are punished and only perceived "stars" are celebrated, even individuals with a natural inclination towards growth will likely suppress their willingness to take risks and innovate. Conversely, an environment that rewards effort, learning from failure, and collaboration can encourage growth mindsets even in those who might otherwise be hesitant. This systemic perspective reveals a hidden consequence: focusing solely on individual psychology without addressing the cultural ecosystem is a recipe for stagnation.

"I think when a lot of organizations heard about this idea of growth mindset and the impact it could have on performance, on how people respond to change, on resilience, a lot of the thinking was that, 'Okay, we need to figure out what people's mindsets are and try to shift them to be more growth, or we should try to hire people that have more of a growth mindset.'"

-- Carissa Romero

This leads to a cascade of downstream effects. When organizations fail to cultivate a growth-oriented culture, they inadvertently discourage the very behaviors that drive long-term success: experimentation, resilience, and continuous learning. Conventional wisdom suggests hiring for existing talent, but Romero’s analysis suggests that the real advantage lies in building an environment where talent can be developed. The immediate payoff of focusing on perceived existing talent--a seemingly quicker path to filling roles--creates a delayed cost: a workforce that is less adaptable, less innovative, and more susceptible to disruption.

The Illusion of Objectivity in Hiring

Nowhere is this disconnect between intention and impact more evident than in hiring practices. Romero shares a striking example of a company that believed its interview process was objective, only to be surprised by data revealing that women were less likely to advance. The assumption of objectivity, a common pitfall rooted in a fixed mindset about one’s own decision-making abilities, blinded leadership to the subtle biases at play.

The solution Romero’s team implemented--introducing structure, rubrics, and objective evaluation criteria--didn't just address a specific diversity gap; it fundamentally improved the decision-making process for everyone. This illustrates a key principle of systems thinking: interventions designed to fix a specific problem often have broader, positive ripple effects throughout the system. The leader who admitted his hiring objectivity was a "three" on a scale of ten, precisely because he had developed a structured rubric and recognized his own fallibility, exemplifies the self-awareness needed to overcome similarity bias. This leader understood that true objectivity isn't about innate talent but about rigorous process. The immediate discomfort of admitting one's own biases and the effort required to build structured processes create a lasting advantage by ensuring more equitable and effective hiring outcomes.

"The reason that this leader was able to actually be so objective in this person's interview decisions is because they took the time to create this really structured rubric and they had the self-awareness to know that they should rely on that versus their gut feeling."

-- Carissa Romero

This focus on process over intuition is critical. Relying on "gut feeling" or similarity bias, while seemingly efficient in the moment, leads to a downstream consequence of homogenous teams, missed talent, and a culture that doesn't reflect the broader market. The competitive advantage, therefore, comes not from speed, but from the deliberate, often less glamorous, work of building robust, data-informed systems.

The Strategic Imperative of Data-Driven Culture

Romero’s journey from academic research to founding Paradigm underscores a crucial insight: culture work is not "fluffy" or "touchy-feely"; it is a strategic imperative grounded in science and data. The initial approach of Paradigm, while effective, was often too resource-intensive for many organizations. This realization led to the development of an AI-powered platform designed to democratize access to data-driven cultural insights.

The non-obvious implication here is that organizations often possess vast amounts of people data--HR information, performance reviews, engagement surveys--but fail to connect the dots. They measure representation, but struggle to link it to retention, promotion, or belonging. Romero emphasizes the need to track "proximal outcomes"--earlier, more immediate indicators that signal whether an intervention is on the right track--rather than waiting years for long-term metrics like retention or diversity to shift. This requires a systems-level view, understanding how different data points interact and influence one another.

For instance, a low representation of women in a technical role isn't solely a hiring problem; it could be influenced by onboarding experiences, feedback mechanisms, or growth opportunities. Without connecting these disparate data sources, organizations are essentially flying blind, making educated guesses rather than informed decisions. The strategic advantage lies in leveraging this data to create targeted interventions that yield measurable results sooner, allowing for course correction and maximizing the impact of investments.

"So you need to be able to look at the promotion rates, the feedback people are getting, the engagement data. So you kind of need that full picture altogether to really know, 'What do I do about this? How do I actually move the needle on culture or whatever aspect of culture that I'm hoping to address?'"

-- Carissa Romero

This data-driven approach moves beyond performative gestures, such as highly visible representation goals that may be scaled back in politically charged environments. Instead, it focuses on embedding best practices into core people processes--onboarding, feedback, interviews--making inclusion and belonging integral to the organizational fabric. This embedded approach, while requiring more sustained effort, creates a more resilient and equitable culture that benefits everyone, not just specific groups.

Key Action Items

• Immediate Action (0-3 Months):

  • Audit hiring rubrics: Review current interview questions and evaluation criteria for potential bias. Implement structured rubrics for all interviews.
  • Analyze feedback data: Examine existing performance review and feedback data for patterns related to growth vs. fixed language and focus on effort vs. innate ability.
  • Survey for proximal outcomes: Design and deploy short surveys to measure key indicators related to belonging, growth opportunities, and psychological safety, focusing on specific teams or departments experiencing challenges.
  • Leader self-awareness exercise: Encourage leaders to honestly assess their own objectivity in people decisions (e.g., on a scale of 1-10) and discuss the factors influencing that score.

• Short-Term Investment (3-9 Months):

  • Develop growth mindset training for managers: Equip managers with the skills to foster growth mindsets in their teams, focusing on how to give feedback that encourages learning and resilience.
  • Integrate cultural best practices into onboarding: Revamp onboarding processes to explicitly embed principles of belonging, psychological safety, and growth mindset from day one.
  • Connect disparate data sources: Begin the process of integrating HRIS, performance, and engagement data to create a more holistic view of cultural dynamics.

• Longer-Term Investment (9-18+ Months):

  • Revamp performance management systems: Overhaul performance review processes to align with growth mindset principles, rewarding effort, learning, and development over innate talent. This pays off in 12-18 months through improved retention and development.
  • Establish continuous data monitoring: Implement a system for ongoing tracking and analysis of key cultural metrics, using proximal outcomes to guide strategy and demonstrate progress towards long-term goals.
  • Champion culture as a strategic advantage: Position culture initiatives not as separate HR programs, but as integral to business strategy execution, requiring sustained leadership commitment and investment. This creates durable separation from competitors over years.