Fostering psychological safety isn't enough to succeed at innovation if managers don't pay particular attention to creating conditions for healthy debate. If leaders can balance psychological safety with open, honest debate, they gain the benefits of both. The authors describe the factors most important to establishing this balance and outline what leaders can do to create a high-performance learning and innovation culture.

People tend to think the biggest innovation challenge is finding great ideas. But many great ideas die when entrepreneurs fail to persuade others of their potential. Indeed, the more novel the idea, the harder it is to get resources for it.

The Tesla case provides multiple opportunities to discuss core strategy and innovation topics, such as: • Patterns of innovation, e.g., new technologies competing to replace older generations • Types of disruption, e.g., low-end versus high-end • The innovation ecosystem, e.g., thinking beyond a single technology to the interdependence of an ecosystem of supporting technologies • Systems strategy, e.g., thinking beyond the product to understand the role of technology architecture and systems • The innovation process, e.g. learning under conditions of uncertainty, scaling up for execution.