Commentary: Elizabeth Holmes film raises questions about trust and speaking up

“The release of You Can See Everything brings Elizabeth Holmes and Theranos back into the spotlight, raising two questions: why did so many people entrust Holmes with money and responsibility, and what happened when employees realised something was wrong?

“Holmes promised to revolutionise blood testing. Theranos attracted investors and influential political and business figures to its board, yet its technology could not deliver what she claimed. The case shows how easily status, confidence and persuasive storytelling can shape our judgement. Research in business psychology suggests that none of us is as good at assessing people as we may think. Success does not automatically make someone better at judging another person’s capabilities. The challenge is to distinguish a convincing pitch from the ability and integrity to deliver.

“That is why research supports structured assessment over personal judgement when organisations predict how people will perform. Assessment should examine both task-related capabilities and integrity, as independently as possible from how effectively someone sells themselves and their ideas.

“The film also raises a second question: what happens when someone has secured an influential leadership position and employees recognise that something is wrong? At Theranos, employees did speak up. Research distinguishes between offering an improvement and warning that something is seriously wrong. Psychological safety, meaning whether employees believe they can raise concerns without facing interpersonal repercussions, is particularly important when the warning is serious. Organisations also need clear processes to investigate concerns and protect the people who raise them.

“The Theranos story, brought back into view by the film, highlights a familiar human vulnerability: relying on status and personal relationships when judging people. Structured processes for assessing capability and acting on concerns may seem slow or unglamorous, but they help protect organisations from errors we are all capable of making.”