Raise-Your-Hand Culture Loop
Reward early warnings so problems surface before they become losses
- Difficulty
- Advanced
- Time to result
- ~months to results
- Steps
- 5
- Confidence
- 97%
Newman separates an enjoyable workplace from a strong culture. During rapid growth at ABN AMRO, his team later discovered signs that should have surfaced before unanticipated losses occurred. The missing mechanism was not friendliness; it was confidence that people could raise a hand and question the work without negative ramifications. His corrective loop starts by explicitly making speaking up safe and making silence about a known concern more consequential. Leaders then reinforce the rule through visible behavior: they treat people who surface issues well, so colleagues observe the response and act accordingly. The culture also invites contribution beyond narrow job boundaries. Over time, repeated constructive responses convert stated permission into credible evidence, allowing operational information to travel upward early enough for leaders to investigate and act.
Origin
Newman derived the model from rapid growth at ABN AMRO, where warning signs existed but did not reach leadership before losses emerged.
Core principles
- 01A fun culture is not necessarily a strong culture
- 02People must be safe to report concerns
- 03Silence should carry more consequence than speaking up
- 04Visible treatment of messengers teaches everyone what is safe
- 05Leadership depth must grow with the business
How to run it
- 1
Declare the reporting rule
Tell the team that raising a concern will not create negative ramifications. Explain that withholding a known concern is the more serious failure.
Pro tip Use concrete examples of the kinds of uncertainty people should surface.
Watch out A generic open-door statement is not enough.
- 2
Invite broad participation
Encourage people to report what they see and believe even when the issue sits outside their formal role. Make problem detection everyone's responsibility.
Pro tip Reinforce the expectation that people pitch in when they notice something that needs attention.
- 3
Treat the messenger well
Respond constructively to the person who raises the issue. Separate the value of surfacing a concern from whether the concern ultimately proves correct.
Pro tip Thank the person before investigating the substance.
Watch out Punishing one uncomfortable warning teaches the whole team to stay silent.
- 4
Investigate and respond
Use the surfaced information to examine the underlying process and act when needed. Close the loop so reporting produces visible attention rather than disappearance.
Watch out Psychological safety without operational follow-through does not prevent losses.
- 5
Repeat visibly
Let repeated fair treatment and follow-through become observable across the organization. Colleagues will adjust their behavior based on what they see leaders do.
Pro tip Share resolved examples without exposing or embarrassing the reporter.
In the wild
At ABN AMRO, Newman and his mentor led rapid growth that produced unanticipated losses. Afterward, they identified signs that should have reached them sooner, but the fun culture had not made people comfortable enough to question whether the company was doing the right thing.
→ The experience changed how Newman built culture in his next two businesses.
Common mistakes
Mistaking fun for strength
A workplace can be enjoyable while employees still fear raising concerns that challenge leadership.
Punishing the warning
Negative treatment of one messenger becomes evidence to everyone else that silence is safer.
Ignoring surfaced issues
Inviting concerns without investigating them weakens the reporting loop and leaves risk unresolved.
Is it for you?
Best for
It is best for fast-growing organizations where leaders cannot personally see every operational warning sign.
Not ideal for
It is not ideal as a slogan without consistent leadership behavior when uncomfortable information arrives.
From the transcript
“it was a fun culture but it wasn't a strong culture”
“there are more negative ramifications associated with not raising your hands”
“treat those people well and other people will see how they're treated and they'll kind of act accordingly”
From the episode
Mortgage Legend Willie Newman