One way of minimizing this cost is to eliminate artificial penalties for failure. Yes, real failures have real costs. It is even more demotivating when the definition of failure itself is also artificial. Another way to minimize the cost of failure is to recognize that organizations can absorb the cost of failure more easily than individuals can. While it is necessary to remember that real failures do have real costs, an organization that wants people to innovate will provide an environment which encourages people to innovate.
Criticism equals loyalty People who care want the best.
This applies to work environments and results, as much as it applies to anything else in life. When people believe that things can be improved, they want to see those improvements. People who do not care will not criticize. A corollary is that people who care the most, and who have other options for fulfilling their needs, will go elsewhere if their criticisms are not heard. An organization which does not listen will lose its best people first.