They say a company is only as strong as its people, but what if your company is also a reflection of you?

The company you lead is a reflection of your values, vision, and personality, and as a leader, you are responsible for shaping the people who make your company successful.

The Relationship Between a Company’s Leader, its employees, and its culture

The relationship between a company’s leader, its employees, and its culture is inherently symbiotic. Each element influences and supports the others in a continuous cycle. This dynamic is crucial to the success and sustainability of any organisation, as the actions of one person can affect everyone.

1. The Leader Shapes the Culture

At the core of this relationship is the leader. A company’s culture is often a direct extension of the leader’s values, personality, and leadership style. Whether consciously or unconsciously, leaders instill their vision into the organisational structure, influencing everything from communication styles to decision-making processes.

For example, a leader who prioritises innovation and risk-taking will naturally foster a culture that encourages creativity and experimentation. Conversely, a more risk-averse leader might shape a culture focused on stability, consistency, and incremental progress.

The leader’s behavior sets the tone for what is acceptable and expected within the company. Employees look to the leader for cues on how to act, which values to prioritise, and how to navigate challenges. In this way, leaders are the architects of company culture, laying the foundation upon which employees build their actions.

2. Culture Impacts Employee Behavior

Once established, the culture begins to influence how employees interact with one another and approach their work. Culture defines the unspoken rules of the company, including how people collaborate, solve problems, and make decisions. A healthy, supportive culture can increase employee engagement, job satisfaction, and productivity, while a toxic or misaligned culture can lead to high turnover, low morale, and underperformance.

Employees don’t just respond to the culture passively; they contribute to it. Each employee brings their own personality, experiences, and skills to the organisation, and these traits either reinforce or challenge the existing culture. Over time, the collective behavior of employees either strengthens or shifts the company’s cultural norms, making it a fluid and evolving system.

3. Employees Reflect the Leader

While culture influences employees, employees also reflect the values and vision of the leader. This occurs both through conscious hiring decisions and ongoing interactions. Leaders tend to hire people who align with their company’s values, work ethic, and approach. Those employees then become extensions of the leader’s mindset, perpetuating the company’s mission in their daily work.

Employees who are nurtured and empowered by the leader often take ownership of their roles, becoming ambassadors of the culture. When leaders invest in developing their people, they instill confidence and trust, enabling employees to carry forward the company’s values even when the leader is not present. This creates a powerful multiplier effect, where the leader’s influence is magnified through the people they have shaped.

4. Culture Reinforces Leadership

Just as a leader shapes the culture and employees, the established culture also reinforces leadership. Once a strong culture is in place, it can sustain itself, often influencing how the leader evolves in their role. In a positive culture, employees will hold the leader accountable to the values they’ve championed. For instance, if a leader promotes transparency and open communication, the culture will naturally push back against actions that undermine those values.

Moreover, as the company grows and new leaders emerge from within, the culture serves as a guiding framework for future leaders. It becomes self-perpetuating, with each new generation of leadership maintaining the core values and behaviours instilled by the original leader, thus preserving the company’s identity.

A Cycle of Influence

In this symbiotic relationship, the leader, culture, and employees form an interdependent cycle. The leader’s values and behavior shape the culture, the culture influences how employees act and feel, and the employees, in turn, reflect and reinforce the leader’s vision. A healthy balance between these elements creates a thriving, dynamic company where all parties mutually benefit and grow. On the other hand, if any part of this relationship is out of sync—if the leader’s actions don’t align with the culture, or if employees disengage—the entire system can falter.

Your Personal Values Shape Your Company’s DNA

Personal values such as integrity, innovation, and ambition often shape a company’s mission, vision, and operations by providing a moral and strategic compass for the organisation. For example:

Integrity: A leader who prioritises integrity will likely create a company culture that emphasises transparency, ethical behavior, and trust. This manifests in a mission statement focused on customer trust and long-term relationships, and in operations through strict adherence to ethical business practices.

Innovation: A leader driven by innovation will influence the company’s vision to push boundaries, invest in R&D, and encourage risk-taking. The mission might involve continuously improving products or services, while operations would focus on fostering creativity, embracing new technologies, and staying ahead of industry trends.

Ambition: A highly ambitious leader may set bold goals and a vision for rapid growth or industry leadership. This ambition translates into aggressive expansion strategies, high-performance standards, and a competitive approach in all operations.

In short, a leader’s personal values filter down into every level of the organisation, shaping its core purpose, direction, and daily activities.

Examples of Leadership Reflection: Famous Leaders and Their Companies

Steve Jobs and Apple: Steve Jobs’ obsession with design and simplicity is deeply embedded in Apple’s DNA. From the minimalist design of Apple products to the clean, user-friendly interfaces, Jobs’ personal values drove Apple’s mission to create innovative, beautifully designed products that improve people’s lives. Jobs’ emphasis on perfection also permeated the company’s culture, pushing teams to refine products down to the smallest details.

Elon Musk and Tesla: Elon Musk’s visionary and ambitious personality is reflected in Tesla’s mission to accelerate the world’s transition to sustainable energy. Musk’s values of innovation and risk-taking are apparent in Tesla’s continuous drive to push boundaries—whether through electric cars, autonomous driving, or solar energy. His personal willingness to take bold risks has resulted in a culture that embraces challenging the status quo.

Walt Disney and The Walt Disney Company: Walt Disney’s values of imagination, creativity, and family entertainment shaped Disney’s vision to create happiness through magical experiences. Disney’s leadership reflected his passion for storytelling and innovation, leading to a company culture focused on pushing creative boundaries while staying true to wholesome, family-friendly values.

The Ripple Effect: Employees Adopting the Culture Modelled by Leadership

The behavior and values modelled by leaders create a powerful ripple effect throughout the organisation. When leaders consistently act in line with their values, employees often adopt similar behaviours. Here’s how this happens:

Role Modelling: Leaders serve as role models for employees. If a leader emphasises accountability, employees are more likely to embrace personal responsibility. If the leader priorities innovation, employees feel empowered to take risks and think creatively.

Cultural Alignment: When the leadership demonstrates clear commitment to certain values, employees understand that those values are not just corporate buzzwords but expectations. For example, a leader who consistently demonstrates integrity in business dealings sets a standard for honesty and ethical behavior across the company.

Positive Reinforcement: Leaders who reward behaviours aligned with company values help reinforce those values. Over time, employees internalise the cultural norms set by leadership, leading to a cohesive and value-driven organisation.

For example, under Jeff Bezos’ leadership at Amazon, the emphasis on customer obsession, fast decision-making, and high operational efficiency has created a culture where employees are driven to innovate on behalf of the customer and constantly seek ways to improve speed and efficiency. This relentless focus is a reflection of Bezos’ values and has become ingrained in Amazon’s culture.

In summary, leaders play a critical role in transferring their personal values into a company’s mission, vision, and operations. As they model these behaviours, they create a ripple effect that influences the entire organisations culture, encouraging employees to embody the same values in their daily work.

Defining Leadership Styles and Their Impact on Company Culture

1. Transformational Leadership:

Definition: Transformational leaders inspire and motivate employees to exceed their expectations by fostering a sense of purpose and creating a shared vision. They focus on long-term goals and personal development.

Impact on Culture: This style cultivates a culture of innovation, empowerment, and high engagement. Employees feel motivated to grow, and the workplace environment becomes dynamic and forward-thinking.

Example: Richard Branson at Virgin Group embodies transformational leadership by encouraging creativity and personal initiative, resulting in a culture of innovation and risk-taking.

2. Authoritarian (Autocratic) Leadership:

Definition: Authoritarian leaders make decisions unilaterally and expect strict compliance from employees. There’s minimal input from others in the decision-making process.

Impact on Culture: This style often creates a rigid, hierarchical culture where efficiency is prioritized over creativity and collaboration. While it can lead to quick decisions, it may stifle innovation and reduce employee morale.

Example: Elon Musk at Tesla can be seen as an authoritarian leader, with a strong hands-on approach and direct involvement in most company decisions. While this has driven Tesla’s innovation, it has also led to reports of high-pressure work environments.

3. Servant Leadership:

Definition: Servant leaders prioritise the well-being of their team, putting employees’ needs above their own. They focus on serving others and empowering employees to achieve their best.

Impact on Culture: This style creates a culture of trust, collaboration, and strong morale, where employees feel valued and supported. It often leads to high employee satisfaction and loyalty.

Example: Herb Kelleher, co-founder of Southwest Airlines, exemplified servant leadership. His focus on employee happiness created a culture of exceptional customer service and strong employee engagement.

4. Democratic (Participative) Leadership:

Definition: Democratic leaders seek input from their team members and involve them in the decision-making process. They encourage collaboration and value diverse perspectives.

Impact on Culture: This leadership style fosters a culture of inclusivity, collaboration, and shared ownership. It promotes innovation and open communication, as employees feel that their opinions matter.

Example: Google (under Sundar Pichai’s leadership) follows a democratic leadership approach, encouraging employee participation in decision-making. This has contributed to a culture of innovation and transparency.

5. Laissez-Faire Leadership:

Definition: Laissez-faire leaders take a hands-off approach, giving employees a high degree of autonomy in their work. Leaders provide minimal direction and trust employees to manage their tasks.

Impact on Culture: This leadership style creates a relaxed and autonomous culture. While it can promote creativity and self-motivation, it may also lead to a lack of direction if employees don’t receive enough guidance.

Example: Warren Buffett’s leadership at Berkshire Hathaway allows managers of subsidiary companies a great deal of autonomy, promoting a culture of independence and self-management.

Practical Impact on Team Morale, Collaboration, and Innovation

1. Team Morale:

Leadership style has a direct impact on employee satisfaction and motivation. Transformational and servant leaders, for example, tend to boost morale by fostering positive environments where employees feel valued. On the other hand, authoritarian leaders may lower morale due to high-pressure demands and limited autonomy.

2. Collaboration:

Democratic and servant leadership styles tend to promote collaboration and teamwork by encouraging input from all levels of the organization. Employees feel free to share ideas, which leads to better problem-solving and more innovation. Authoritarian leaders, in contrast, may discourage collaboration, as their decision-making process is often unilateral.

3. Innovation:

Transformational leaders, with their focus on vision and growth, tend to drive innovation by inspiring employees to think beyond the present and explore new possibilities. Laissez-faire leaders also promote innovation by giving teams freedom to experiment, though they may need to provide more direction to maintain focus. In contrast, authoritarian leadership may inhibit creativity as employees feel constrained by strict rules and micromanagement.

Case Studies: Companies Tightly Tied to Leadership Personality

1. Tesla and Elon Musk:

Leadership Style: Authoritarian, transformational.

Impact: Elon Musk’s intense and direct leadership style is reflected in Tesla’s high-pressure, fast-paced work culture. His visionary goals for sustainable energy drive the company’s relentless innovation, but his authoritarian tendencies have created a culture of long hours and high expectations, with some employees reporting burnout.

2. Apple and Steve Jobs:

Leadership Style: Transformational, with elements of authoritarianism.

Impact: Steve Jobs’ perfectionism and focus on simplicity and design set the foundation for Apple’s culture of innovation and excellence. Jobs demanded the highest standards from his teams, which drove breakthrough products but also led to a high-pressure environment.

3. Zappos and Tony Hsieh:

Leadership Style: Servant, democratic.

Impact: Tony Hsieh’s servant leadership approach at Zappos fostered a unique company culture centered on employee happiness, autonomy, and exceptional customer service. Hsieh believed that happy employees would lead to happier customers, and his leadership style encouraged collaboration and creativity.

In conclusion, a leader’s style not only determines the company’s direction but also its internal culture, team dynamics, and the ability to innovate. Leaders who understand their own style and its impact can intentionally shape their teams and drive the success of their organisations.

Hiring Philosophy: How Preferences and Biases Influence Who You Hire

A leader’s preferences and biases inevitably influence hiring decisions, shaping the type of people they choose to bring into the organisation. These preferences can stem from personal values, experiences, and beliefs about what constitutes an ideal employee. For example:

• Skill Preferences: Leaders who prioritise innovation might unconsciously prefer candidates with a background in creative problem-solving or cutting-edge technology.
• Personality Fit: A leader who values team cohesion may look for candidates who demonstrate collaboration and teamwork, while someone who values independence may favor self-starters.
• Biases: Bias can manifest in many ways—such as preferring candidates from a similar background, education, or culture as the leader, or favouring candidates who share the same communication style. These biases, whether conscious or unconscious, affect diversity and can limit the perspectives brought into the company.

By being aware of these preferences and biases, leaders can create a more balanced hiring approach, ensuring they don’t only hire people who mirror themselves, but also those who bring new perspectives and skills.

Cultural Fit vs. Cultural Add: Reinforcing vs. Diversifying Company Culture

• Cultural Fit: Hiring for cultural fit means selecting candidates who align with the current values, behaviours, and working styles of the organisation. While this ensures that new hires blend well with the existing team and don’t disrupt the status quo, it can sometimes lead to homogeneity. If everyone is aligned too closely, creativity, diversity of thought, and innovation may be stifled.
• Cultural Add: Hiring for cultural add, on the other hand, emphasises bringing in people who will enhance and expand the company culture with new perspectives, experiences, and ideas. These candidates may not fit neatly into the current culture but will introduce fresh ideas and push the organisation to evolve. This approach fosters diversity, encourages growth, and keeps the company adaptable to change.
• Leadership Influence: Leaders often attract talent that mirrors their own preferences and values, consciously or unconsciously. Leaders who prioritise innovation will likely attract employees who are creative risk-takers, while leaders focused on stability might draw more methodical, detail-oriented candidates. However, leaders who recognise the importance of cultural add will consciously seek out individuals who challenge and expand their team’s thinking, driving progress.

People as Extensions of Leadership: Mirroring Leadership Values

The people a leader hires ultimately become reflections of their values, philosophies, and vision. Over time, employees not only adopt the organisational culture but often mirror the traits and behaviours of their leaders. Here’s how:

1. Values Alignment: If a leader values transparency, the team will likely prioritise open communication. Leaders who emphasise ambition and high standards will attract driven individuals who push themselves to meet these expectations.
2. Behavioural Modelling: Employees often model their behavior on what they see from leadership. A leader who fosters a supportive and empathetic environment will inspire similar behaviors within their teams. Conversely, a leader who operates in a high-pressure, authoritative manner might inadvertently create a more rigid and competitive team dynamic.
3. Reinforcing Leadership’s Vision: Over time, employees who align with a leader’s values reinforce the leader’s vision for the company. As new hires blend into the team, they help perpetuate the culture that the leader embodies. In companies like Amazon, for example, Jeff Bezos’ intense focus on customer obsession, operational efficiency, and high standards has been mirrored by employees, who adopt these values as part of the company’s DNA.

Example: Elon Musk and Tesla

Elon Musk’s leadership style, which blends ambition, innovation, and a demanding work ethic, is reflected in the type of employees Tesla attracts. Musk’s focus on pushing boundaries attracts talent that thrives in high-pressure, high-risk environments. While this drives rapid innovation, it has also resulted in a workforce that mirrors his intense, sometimes uncompromising approach. Tesla employees reflect Musk’s core values of bold vision, relentless execution, and high personal investment in the mission.

Example: Tony Hsieh and Zappos

Tony Hsieh’s servant leadership and belief in creating a fun, customer-centric culture attracted employees who were passionate about customer service and maintaining a positive workplace atmosphere. By hiring people who added to the company’s culture—whether through their unique personalities or innovative approaches to customer care—Hsieh reinforced his vision of a company where employees were empowered to contribute to the culture in meaningful ways. The Zappos workforce mirrored Hsieh’s values of humility, positivity, and service.

Balancing Fit and Add

Leaders who consciously strike a balance between cultural fit and cultural add ensure that their company retains its core values while remaining open to fresh perspectives. While hiring people who share similar values helps maintain organisational cohesion, bringing in individuals with new ideas fosters innovation and adaptability. Leaders can create a stronger, more resilient organization by encouraging a dynamic interplay between cultural fit and cultural add, shaping a team that both mirrors their values and challenges them to grow.

In conclusion, a leader’s preferences, biases, and values heavily influence hiring decisions, shaping the company culture. Leaders who are intentional about balancing cultural fit with cultural add create teams that not only align with their vision but also push the company toward innovation and growth. Ultimately, the people hired become extensions of leadership, reflecting the leader’s values and shaping the organisations future.

Empowering Employees to Reflect Your Vision

Empowering employees to carry forward a leader’s vision requires a blend of mentorship, trust, and the creation of an environment where individuals can grow, innovate, and embody the company’s core values. Leaders who invest in their teams not only cultivate talent but also ensure that their vision becomes a sustainable legacy within the organisation.

Nurturing Talent: Developing Employees to Carry the Vision Forward

1. Investing in Development: Leaders who prioritise employee development create a pathway for individuals to not only improve their skills but also align more deeply with the company’s vision. Providing resources such as training programs, workshops, and career development opportunities fosters personal and professional growth.
   • Mentorship: Leaders who take an active role in mentoring their employees help shape their understanding of the company’s long-term goals. By guiding team members, leaders can pass down critical knowledge and values that reflect the broader mission.
   • Career Progression: Offering clear pathways for career advancement motivates employees to invest in their roles and align themselves with the leader’s vision. As employees grow, they take on more responsibility in carrying that vision forward.
2. Alignment of Personal and Company Goals: By encouraging employees to set goals that align with both their personal aspirations and the company’s objectives, leaders create a more engaged and motivated workforce. When employees see how their individual success is tied to the organization’s success, they become more invested in upholding and expanding the leader’s vision.
   • Example: At Google, professional development is a key focus. Employees are encouraged to pursue “20% time” projects that not only align with their personal interests but also contribute to the company’s innovative culture, reinforcing the larger vision of continuous innovation.

Building Trust and Autonomy: Freedom to Act Within the Framework of Company Values

1. Creating a Culture of Trust: Trust is the foundation of employee empowerment. When leaders show confidence in their team’s abilities, employees feel more secure in making decisions. This trust encourages initiative and problem-solving, aligning their actions with the company’s values.
   • Freedom to Innovate: Giving employees autonomy within a clear framework of company values helps foster innovation. Employees are empowered to make decisions and take risks while remaining aligned with the organisations mission.
   • Accountability with Autonomy: Autonomy doesn’t mean a lack of accountability; instead, it’s about giving employees the responsibility to act independently while holding them accountable for outcomes that align with the leader’s vision. This creates a culture of ownership, where employees actively contribute to the success of the company.
2. Empowering Decision-Making: Leaders who give employees the freedom to make decisions within the context of company values create a stronger sense of ownership. This empowerment drives creativity and operational efficiency as employees feel capable of driving change and contributing to the company’s mission.
   • Example: At Netflix, the company’s “freedom and responsibility” culture emphasizes trusting employees to make decisions without micromanagement. This approach has allowed Netflix to innovate rapidly, with employees who are empowered to take risks within a framework of accountability to the company’s larger vision of providing entertainment in new ways.

Leaders Creating Leaders: Building a Legacy of Empowerment

1. Strong Leadership Builds Future Leaders: Empowering employees to become leaders themselves is one of the most lasting impacts a leader can have. By nurturing talent and offering mentorship, leaders can develop a pipeline of future leaders who will carry forward the vision even after they have moved on.
   • Delegation and Growth: When leaders delegate meaningful responsibilities to team members, they provide opportunities for employees to develop leadership skills. This prepares them to take on more significant roles within the company, ensuring the continuity of the company’s vision through future generations of leaders.
   • Succession Planning: Strong leaders intentionally build succession plans by developing leaders from within the company. This ensures that leadership transitions are smooth and that the company’s values and vision remain intact.
2. Empowering Independent Team Members: When leaders create a culture of trust, autonomy, and continuous development, they empower employees to not only succeed in their own roles but to help others grow. This creates a ripple effect where leadership is not centralised in one person but distributed across the organisation, reinforcing the company’s ethos at all levels.
   • Example: At Southwest Airlines, former CEO Herb Kelleher instilled a servant leadership culture where employees were empowered to make decisions and lead within their own roles. As a result, Southwest continues to emphasise employee-driven leadership, keeping the company’s customer-first values alive.
3. Building a Legacy Through Empowerment: Leaders who focus on empowering others build a lasting legacy because they create a culture where employees internalize the company’s mission and drive it forward. These employees not only act in alignment with the leader’s vision but also take ownership of that vision, ensuring its growth and sustainability over time.
   • Example: Indra Nooyi, former CEO of PepsiCo, focused on empowering her leadership team and cultivating future leaders through mentorship and development. Her approach left a lasting legacy of strong, values-driven leadership that continues to guide the company.

Empowering Employees to Reflect Your Vision

Empowering employees to carry forward a leader’s vision involves nurturing talent, building trust, and fostering autonomy within the framework of the company’s values. Leaders who invest in employee development through mentorship and trust create a culture of growth, innovation, and accountability. Moreover, when leaders empower their teams to take ownership and responsibility, they cultivate future leaders who will uphold and extend the company’s mission.

Ultimately, by focusing on building leaders rather than just followers, leaders create a lasting legacy where their vision continues to thrive long after they are gone. Empowered employees are not only reflections of leadership values but also stewards of the company’s future direction, ensuring that the vision remains dynamic and adaptable to new challenges and opportunities.

Accountability and Responsibility: It Starts from the Top

Accountability is a cornerstone of effective leadership. When leaders own their mistakes and take responsibility for outcomes—whether positive or negative—they set a powerful example for the entire organisation. A leader’s willingness to be accountable creates a culture of integrity, trust, and continuous improvement that resonates throughout the company.

Owning Mistakes: Why Leadership Accountability is Crucial

1. Setting the Standard: When leaders hold themselves accountable, they establish a standard for everyone in the organisation. Employees take cues from how their leaders handle adversity or setbacks. If a leader deflects blame or avoids responsibility, it signals that accountability isn’t important, leading to a culture of avoidance and finger-pointing.
   • Example: If a company misses a key deadline or product launch, and the leader acknowledges their role in the failure—whether due to poor planning or miscommunication—it demonstrates humility and responsibility. This encourages employees to also own their part without fear of retribution, fostering a more open and constructive dialogue around problem-solving.
2. Trust and Credibility: Accountability is closely tied to trust. When leaders openly acknowledge their mistakes and take steps to address them, they build credibility with their team. Employees are more likely to trust and respect leaders who are willing to admit they are not infallible. This trust strengthens team cohesion and encourages transparency at all levels of the organisation.
   • Elon Musk has publicly taken responsibility for delays and failures at Tesla, whether it’s production issues or unmet targets. By owning the mistakes, Musk sets an example of transparency, which helps maintain trust with both his employees and the public.
3. Encouraging Innovation and Risk-Taking: When leaders take responsibility for failures, they create a safe environment for employees to take calculated risks. If employees know their leaders will support them even when things go wrong, they are more likely to experiment and innovate. This leads to a culture of growth and learning rather than fear of failure.

Leading by Example: Cultivating a Culture of Honesty, Transparency, and Problem-Solving

1. Creating a Culture of Honesty: Leaders who take responsibility for their actions encourage others to do the same. By being open about mistakes, leaders demonstrate that honesty is valued and that it’s acceptable to admit when something goes wrong. This breaks down the fear of repercussions for admitting mistakes, which often leads to better and faster problem-solving.
   • Example: At Ford, during its financial crisis in 2006, CEO Alan Mulally fostered a culture of honesty and transparency. He encouraged leaders to bring up issues without fear, creating an environment where problems could be identified and solved quickly. This shift was crucial in Ford’s turnaround.
2. Transparency as a Tool for Problem-Solving: When leaders are transparent about challenges or setbacks, they invite the team to contribute to solutions. This creates a collaborative atmosphere where employees feel empowered to offer ideas and be part of the problem-solving process. Leaders who don’t shy away from tough conversations set the expectation that challenges are meant to be addressed openly, not hidden.
   • Example: Satya Nadella transformed Microsoft’s culture by promoting transparency and problem-solving. He led by example, focusing on learning from failures and inviting feedback and ideas from all levels of the company. This shift in leadership style made Microsoft more adaptable and innovative.
3. Accountability as a Path to Continuous Improvement: Leaders who take responsibility for their actions model a growth mindset. When mistakes are seen as opportunities for learning, it reinforces a culture of continuous improvement. Employees are more willing to reflect on their own performance and seek ways to improve if they see their leaders doing the same.
   • Leading by Example: When leaders consistently demonstrate accountability, they cultivate a team that mirrors these behaviors. For instance, if a leader consistently acknowledges their role in both successes and failures, employees will follow suit, owning up to their own actions, collaborating to fix problems, and striving for better outcomes.
4. Fostering Problem-Solving over Blame: Accountability encourages a shift away from blaming others and toward collaborative problem-solving. A leader who openly takes responsibility for a project’s failure can pivot the focus to how the team can work together to prevent the same mistake from happening again. This shifts the culture from one of blame to one of shared responsibility.
   • Example: When Starbucks faced criticism for its handling of a racial profiling incident in 2018, CEO Kevin Johnson publicly took responsibility, acknowledging the failure and committing to training and changes. By owning the mistake, Johnson reframed the situation as a chance for the company to improve and grow, reinforcing Starbucks’ commitment to inclusivity.

The Power of Accountability from the Top

Leaders who own their mistakes and lead by example create a ripple effect throughout the organisation. By demonstrating that accountability is essential, they foster a culture of honesty, transparency, and problem-solving. Employees take cues from leaders’ behavior, and when they see accountability modelled at the highest level, they feel empowered to act with the same level of responsibility in their roles.

Ultimately, accountability from the top not only strengthens trust and credibility but also drives a culture of continuous improvement, where failures are viewed as learning opportunities, and the entire team works together to achieve better outcomes. Leaders who take responsibility inspire others to do the same, ensuring that the company’s values and ethos are consistently reinforced across all levels.

Why You Make the People That Make Your Company

A company’s success is directly tied to the strength, resilience, and capabilities of its employees, and the leader plays a pivotal role in shaping these qualities. Leaders not only guide strategy but also deeply influence the careers and performance of their teams through mentorship, vision, and personal investment. The best leaders understand that by empowering employees, they not only elevate individual performance but also drive the long-term success of the company.

Influence of Leadership on Employee Behavior

1. Mentorship and Development: Effective leaders shape their employees’ professional growth by offering guidance, feedback, and mentorship. When leaders invest time in developing their teams, they nurture skills, build confidence, and enable individuals to maximise their potential. This personal investment accelerates career development and fosters loyalty within the company.
   • Personalised Growth Paths: By understanding the strengths and aspirations of each team member, a leader can tailor opportunities that align with both individual and organisational goals. This not only improves performance but creates a sense of purpose and direction for employees.
   • Long-Term Career Impact: A leader’s influence can have lasting effects on an employee’s career. By fostering critical thinking, encouraging risk-taking, and providing learning opportunities, leaders help shape the future leaders of the organisation.
2. Vision Alignment: When leaders clearly communicate their vision and purpose, employees are more likely to align their efforts with the broader organisational goals. A clear vision gives employees a sense of direction and helps them understand how their work contributes to the company’s overall success.
   • Inspiring Commitment: Leaders who can articulate a compelling vision inspire employees to commit to the mission. This alignment creates a motivated, driven workforce that is united in achieving common goals.
   • Shaping Behavior Through Values: A leader’s personal values, such as integrity, innovation, or accountability, deeply influence employee behavior. Employees take cues from the way their leader acts and make decisions accordingly, shaping the company’s culture and reinforcing the leader’s vision in their everyday work.
3. Investment in People: When leaders invest in their employees, whether through training, coaching, or simply listening to their concerns, they create a supportive environment that encourages high performance. Employees who feel valued and supported are more engaged, more productive, and more likely to stay with the company.
   • Retention and Loyalty: Employees who experience growth and development through their leader’s investment are less likely to seek opportunities elsewhere. A leader’s commitment to their team’s success fosters loyalty and builds a stable, resilient workforce.
   • Employee Empowerment: Leaders who delegate responsibility and give employees the autonomy to take ownership of their work build a culture of empowerment. This not only improves individual performance but also accelerates the company’s ability to adapt, innovate, and grow.

The Multiplier Effect: Building Strong, Capable Employees Reflects Positively on Leadership

1. Creating High-Performing Teams: When a leader invests in building strong, capable employees, the benefits multiply throughout the organisation. Each empowered employee contributes to the overall success of the company, driving results, improving innovation, and strengthening teamwork. This collective success reflects positively on the leader’s ability to nurture talent and build a strong, cohesive organisation.
   • Self-Sustaining Growth: Strong employees inspire and mentor others, creating a cycle of growth within the team. Over time, this multiplier effect leads to a company-wide culture of continuous improvement and high performance.
   • Reputation and Influence: Leaders who consistently develop top-tier talent gain a reputation for excellence. This not only elevates the leader’s standing within the organisation but also attracts top talent from outside, as skilled individuals seek to work with leaders who are known for cultivating success.
2. Increased Organisational Capacity: As employees grow in capability, they take on more significant roles and responsibilities, enhancing the organisations overall capacity. Leaders who invest in their people enable their teams to tackle bigger challenges, solve complex problems, and ultimately drive the company toward greater achievements.
   • Example: Sheryl Sandberg at Facebook was instrumental in developing a high-performance culture by investing in talent, providing mentorship, and fostering a leadership pipeline. This not only strengthened Facebook’s internal capabilities but also boosted her standing as a leader who builds successful, empowered teams.
3. Reflecting Positively on Leadership: A leader’s legacy is often defined by the success of those they mentor. Employees who excel in their roles become a direct reflection of the leader’s effectiveness. When teams thrive, it signals to the broader organisation—and beyond—that the leader is capable of fostering an environment where people succeed, innovate, and contribute meaningfully to the company’s mission.
   • Legacy of Leadership: Leaders who build great teams leave behind more than just personal accomplishments—they leave behind a legacy of leadership excellence. The teams they develop continue to push the company forward long after the leader has moved on, cementing their influence in the organisation’s ongoing success.

The Role of Empathy, Encouragement, and Discipline

1. Empathy: Empathy is a critical component of effective leadership. Leaders who understand and relate to their employees’ challenges are better equipped to provide the support and resources necessary for their success. Empathy helps leaders build trust, strengthen relationships, and create a culture of mutual respect.
   • Fostering Connection: When leaders show empathy, employees feel heard and valued. This emotional connection encourages loyalty and commitment, driving better performance and engagement.
   • Understanding Challenges: Empathetic leaders are more attuned to the difficulties their employees face, whether personal or professional. By understanding these challenges, leaders can provide tailored support, helping their teams overcome obstacles and achieve their best work.
2. Encouragement: Encouragement goes hand-in-hand with empowerment. Leaders who encourage their employees to take risks, embrace challenges, and strive for growth create a culture of confidence and ambition. Encouragement also helps employees recover from failures and setbacks, fostering resilience and a growth mindset.
   • Building Confidence: Leaders who regularly recognise and celebrate their employees’ achievements build confidence within the team. This recognition reinforces positive behaviors and motivates employees to continue delivering high-quality work.
   • Resilience Through Support: Encouragement is crucial during difficult times. Leaders who offer support and belief in their employees’ abilities help them recover from challenges, learn from mistakes, and continue moving forward with confidence.
3. Discipline: Discipline is the third pillar that balances empathy and encouragement. Leaders must set clear expectations, enforce accountability, and provide constructive feedback when necessary. Discipline ensures that teams remain focused, responsible, and aligned with company values.
   • Accountability and Standards: Leaders who enforce high standards and hold their teams accountable for results create a culture of excellence. Discipline doesn’t mean being harsh; it’s about setting clear expectations and ensuring employees have the structure they need to meet those expectations.
   • Balanced Approach: A balanced leader uses discipline to foster growth, not fear. By combining discipline with empathy and encouragement, leaders shape resilient, committed employees who are capable of self-managing and contributing to long-term success.

Shaping the People Who Make Your Company

Leaders play an essential role in shaping the people who make their company successful. By providing mentorship, communicating a clear vision, and investing in their employees’ growth, leaders build strong, capable teams that reflect positively on their leadership. This multiplier effect allows companies to grow and thrive, as empowered employees contribute to a culture of innovation and excellence.

A balanced approach—rooted in empathy, encouragement, and discipline—helps shape resilient, committed employees who are aligned with the leader’s vision and the company’s values. Ultimately, the success of a leader is measured by the success of the people they inspire and the legacy they leave behind in the organisation they helped build.

A Company is a Reflection of Its Leader

A company’s culture, success, and resilience are direct reflections of its leader’s values and approach. By investing in employee development, leading with empathy, and maintaining accountability, leaders shape the people who ultimately drive the business forward. Through mentorship, vision, and personal investment, leaders create empowered teams that multiply success across the organisation.

Lead with Purpose

As a leader, your personal qualities—whether integrity, innovation, or empathy—set the tone for your company. Be intentional about how your actions, words, and leadership style impact your team and your business. Commit to leading with purpose, fostering a culture that mirrors your values and ensures lasting success through the people you empower.