Lao Tzu

Traditionally, effective leaders were characterized by traits that exhibit control and power over their followers. However, in today’s competitive and ever changing environment with followers becoming increasingly knowledgeable in learning organizations, the conventional coercive style is no longer the most effective in inspiring those under you to do their best and to commit themselves to you as their leader.

Lao Tzu’s quote embodies the essence of servant and transformational leadership. It suggests selflessness by serving the greater good, as well as a coaching mentality that guides and assists the team towards collective success so that everyone feels engaged. These are relevant traits of an effective leader, but the extent of its effectiveness and relevance depends on the situation, demographic characteristics, individual style and tier of leadership you are engaged in, and the readiness of your followers.

“Serving the greater good” suggests that the leader has acknowledged the collective interests of the organization and is committed towards its cause in spite of its potential tradeoff in self-interest. This selfless behavior naturally makes you a role model as you walk the talk and this has the ability to catch on your followers. They start to truly trust, admire, and respect you as their leader. This constant pull of mutual respect and identity enable leaders to slowly align the self-interests of their followers to that of the team, building the cornerstones of organizational effectiveness with mutuality of interests.

The coaching mentality is also extremely relevant in the competitive learning organizations of today, in which the focus now shifts to creating new knowledge and systems. The old style of directive control is effective in environments that require high levels of discipline, but it stifles engaging intelligent interaction, which suppresses sparks of creativity and therefore the formation of new ideas. Therefore, the new paradigm leader should be a change agent, not a dictator, a facilitator over a controller, and a collaborator over a competitor.

Staying humble in the background and allowing your followers to take credit makes you a better transformational leader. The leader and follower relationship these days is more than just a mere transaction of incentives – money and labor. Followers want more and the empowerment through responsibilities and a sense of fulfillment arouses their higher-level needs for self-actualization. Followers become motivated to go beyond their self-interests for the visionary future of the leader and the organization.