Why board directors need a growth mindset

Directors should see themselves as learners — not just overseers — to become active stewards of transformation. A growth mindset sets the tone for an organisation that’s agile, innovative and future-ready.

A growth mindset is a strategic imperative for directors in the boardroom. Continuous learning and curiosity are key to success in today’s corporate world.

Building a growth mindset can be hard, but research has demonstrated that it can be beneficial to reducing “groupthink”.

For board members, it’s a mindset that enables directors to push the limits, see adversity as an opportunity for growth and commit to continuous learning. 

Defining a growth mindset

As pioneered by Stanford professor, psychologist and researcher Carol Dweck, a growth mindset is a belief system promoting the idea that abilities and intelligence can be developed with time, effort and dedication. 

Individuals with a growth mindset, says applied behavioural scientist Jason Hreha, “understand that to achieve their goals, they need to step out of their comfort zone, put in sustained effort and learn from their failures”. 

It’s transformative, according to Hreha, in the way it changes how challenges and setbacks are approached, leading to higher levels of achievement and satisfaction.

Working with students from economic and economically diverse backgrounds, Dweck found a student’s mindset about their intellectual abilities was central to their academic tenacity. 

Her research showed students who believed their intelligence could be developed (growth mindset) consistently outperformed those who believed their intelligence was fixed (fixed mindset).

Growth mindset in the boardroom

CEO of Directors Australia Kerryn Newton FAICD, who has facilitated more than 300 board evaluations, notes a growth mindset is often most apparent during strategic board conversations, particularly when assessing long-term risks and opportunities.

“What I’ve observed in high-performing boards is directors committed to continuous learning about the company, its business model and the evolving strategic environment in which it operates,” she says.

“This mindset is foundational for strong governance and strategic stewardship. They embrace diverse perspectives, encourage curiosity and remain open to rethinking past assumptions. 

“This means not just talking about innovation and diversity, but demonstrating it in how they engage — with one another, with management and with emerging issues.”

Stifling growth mindset

Executive search leader, mentor and NED Anna Whitlam GAICD believes the regulatory environment that governs organisations today can stifle the growth mindset in the board room.

“In a world where the environment is increasingly unpredictable, globally, regionally and locally, Australia’s approach to regulation relies heavily on punitive measures,” Whitlam says. 

“We’ve established a system that imposes significant penalties on board directors, particularly in ASX-listed companies, for regulatory non-compliance or framework breaches. 

“Although to a degree required, this approach consequently fails in many cases to provide a psychologically safe environment for innovation and calculated risk-taking.”

No going back

Researchers believe those with a fixed mindset are less open to change and prefer the status quo. 

Newton says a board with a fixed mindset risks stagnation, which can set a limiting tone for the CEO, executive team and ultimately the whole organisation. 

“Growth mindset falters when boards default to compliance thinking or treat key processes — like board evaluations — as mere formalities, as opposed to an opportunity for true continual improvement. 

“When self-reflection is absent, boards risk becoming echo chambers, missing out on signals for change or disruption.

“Intelligence and talent aren’t fixed — they evolve with effort, experience and engagement. Boards must lead the way in this regard,” she says. 

“When directors see themselves as learners — not just overseers — they become active stewards of transformation. That mindset sets the tone for an organisation that’s agile, innovative and future-ready.”

Qantas leadership growth

Whitlam says the essential question becomes, "How do we embrace calculated risks to pursue novel approaches that deliver different, potentially superior outcomes?”

She also describes Qantas board chair John Mullen AM as an exemplar of the growth mindset in the boardroom. 

“To demonstrate the courage he has shown, openly acknowledging Qantas’ missteps and articulating his commitment to leveraging these lessons for organisational rebuilding, requires a growth mindset. 

“Few leaders are willing to candidly admit that established approaches will not deliver the outcomes now required. He has unequivocally established this precedent. 

“He has set a new standard for engagement and over time, it will be telling if these positive changes from the top flow down to reflect the effectiveness of this approach within the organisation."

In the eight months since his elevation to Qantas chair, Mullen has continued to renew the Qantas board, with the appointment in March 2025 of independent non-executive director Dion Weisler. This brings to five the number of new appointees to the board since 2023. 

In a recent interview with AICD, the Qantas board chair saw diversity as fundamental to a high-performing board:

“We need two to three directors who come from totally different backgrounds than the rest of us who have different values, probably different nationalities, geographies, different experiences in life, and who challenge the traditional way of thinking around a board,” Mullen says in the interview.