Article
Developing Trust on Your Team
September 7, 2020
A Lack of Trust Can Destroy Your Team
What You Can Do To Develop an Atmosphere of Trust on Your Team
Trust is a central component of all healthy relationships. Teams are no exception. “There’s no team without trust,” said Paul Santagata, Head of Industry for Retail/Tech/Telecom at Google. “In Google’s fast-paced, highly demanding environment, our success hinges on the ability to take risks and be vulnerable in front of peers.” [“High-Performing Teams Need Psychological Safety. Here’s How to Create it” by Laura Delizonna, Harvard Business Review August 24, 2017] The leader must facilitate trust and be a model of trust. This means creating a team environment characterized by open, candid relationships and a climate of psychological safety.
“As a company grows, communication becomes its biggest challenge. If the employees fundamentally trust the CEO, then communication will be vastly more efficient than if they don’t. . . A CEO’s ability to build this trust over time is often the difference between companies that execute well and companies that are chaotic.” – Ben Horowitz (quoted in https://www.zenefits.com/workest/ben-horowitz-culture-leadership-succeeding/)
It is a sad fact of my long experience working with entrepreneurs that many of them do not trust people easily, and this sets the tone for the way they manage their teams and how team members, in turn, manage their teams. When you don’t trust someone, if you feel they lack competence, skill, or experience or you question their good will and good intentions, you are more likely to try to control or micromanage them. This can severely damage a team’s effectiveness.
A lack of trust and a climate of fear on the team is the opposite of psychological safety. It is toxic and can result not merely in an uncomfortable workplace and a lack of openness, but also in finger-pointing and conflicts between team members, politics, false consensus leading to bad decisions, and ultimately in turnover. It will curtail collaboration, weaken problem solving, hamper individual and group performance and diminish results.
The more interdependent the team – the more team members are dependent on each other to get their work done – the more trust matters. This can be particularly relevant for startups where the number of people involved is small and collaboration is especially vital. For example, Engineers can’t build anything unless the Product team defines what customers want, what features they care about, and Product can’t really do that without coordination with the Marketing team. All these relationships rely on trust: that information is being openly shared, that people are telling the truth, giving honest feedback, working through differences and collaborating and working together to meet commitments. When there is good will and psychological safety on a team, members will be willing to be vulnerable and openly discuss their problems, opinions, and concerns. In addition, trust also increases the commitment and loyalty between team members, which reduces unwanted turnover, and increases a sense of common identity.
How Trust Grows
Trust builds slowly, over time. It is built in very small moments but can be destroyed in an instant. If team members have shared important experiences and been successful working together, or have endured difficult times and made it through to the other side, trust will naturally increase.
Trust grows when there is openness, information sharing, honesty, and the ability to voice differences and work together through conflict. As Google’s Project Aristotle on effective teamwork has found, members must feel free enough to share their opinions without fear of recrimination or attack. As a New York Times article said, “ We must be able to talk about what is messy or sad, to have hard conversations with colleagues who are driving us crazy. We can’t be focused just on efficiency.”
Growth of trust also requires regular interaction between members, listening and respecting each other’s ideas. This too takes time, and it means that you, as the leader, need to look for opportunities to increase the level of interaction and collaboration between members of the team. If team members operate in silos or have more frequent communication with the leader than with each other, the team will be less effective.
This can be especially challenging with remote team members. Videoconferences between team members in another country or city, or just in another building or domain, have become commonplace and the leader must pay close attention to bringing team members together in person whenever possible. Where that is not an option, the leader needs to be very deliberate about insuring active participation from all team members rather than allowing in-person members to dominate the discussion.
Does Your Team Trust You?
Leaders are often unaware of how much – or how little – team members are on board with the leader’s strategy, goals, and plans. Even worse, they often assume they have the team’s trust, when that is not always the case. Here are some ways to tell if your team trusts you:
These are all signs that you have done a good job in creating an atmosphere of safety and trust.
What Happens When Trust Is Strong? A recent meta-analysis of 112 research studies confirmed that trust between team members is highly correlated with the achievement of team goals. When trust is present, problem solving tends to be creative and productive. Discussions are livelier and out-of-the-box solutions get put on the table when fear of self-expression is absent. Members willingly take greater risks and say what is on their minds directly rather than behind others’ backs.
Trust has a similarly powerful impact on decision-making. The best decisions are made when the best thinking and all the facts are put on the table. When team members feel safe and expect that others will behave in a supportive and positive manner, they will be more willing to be vulnerable and open. They will work more collaboratively and stay more focused on team goals.
What Happens When Trust Is Weak? When trust is not strong, people are unwilling to share their real opinions and concerns. In that case, you are not getting the best thinking out of them. Often this lack of trust is due to the leader, who may have created an intimidating environment or failed to police bad behavior among members, such as personal attacks. In that environment, people are unwilling to share intuitive insights or half-formed ideas.
Problem solving tends to degenerate and become ineffective. Interpersonal relationships among team members interfere with and distort perception of the problem. That’s because, in the absence of trust, people’s energy and creativity are more focused on self-protection than on finding creative solutions. They feel the need to protect themselves from attack, humiliation, or retribution, rather than apply their energy and attention to problem solving and may withhold half-formed ideas that may contain the seed of a solution.
In the absence of trust, team members are more suspicious of others’ motivations, and become defensive. Openness is reduced, and people don’t say what they really think. Team members lose sight of team goals and focus on personal self-interest.
How to Build Team Trust
Trust is a central component of all healthy relationships. Teams are no exception. “There’s no team without trust,” said Paul Santagata, Head of Industry for Retail/Tech/Telecom at Google. “In Google’s fast-paced, highly demanding environment, our success hinges on the ability to take risks and be vulnerable in front of peers.” [“High-Performing Teams Need Psychological Safety. Here’s How to Create it” by Laura Delizonna, Harvard Business Review August 24, 2017] The leader must facilitate trust and be a model of trust. This means creating a team environment characterized by open, candid relationships and a climate of psychological safety.
“As a company grows, communication becomes its biggest challenge. If the employees fundamentally trust the CEO, then communication will be vastly more efficient than if they don’t. . . A CEO’s ability to build this trust over time is often the difference between companies that execute well and companies that are chaotic.” – Ben Horowitz (quoted in https://www.zenefits.com/workest/ben-horowitz-culture-leadership-succeeding/)
It is a sad fact of my long experience working with entrepreneurs that many of them do not trust people easily, and this sets the tone for the way they manage their teams and how team members, in turn, manage their teams. When you don’t trust someone, if you feel they lack competence, skill, or experience or you question their good will and good intentions, you are more likely to try to control or micromanage them. This can severely damage a team’s effectiveness.
A lack of trust and a climate of fear on the team is the opposite of psychological safety. It is toxic and can result not merely in an uncomfortable workplace and a lack of openness, but also in finger-pointing and conflicts between team members, politics, false consensus leading to bad decisions, and ultimately in turnover. It will curtail collaboration, weaken problem solving, hamper individual and group performance and diminish results.
The more interdependent the team – the more team members are dependent on each other to get their work done – the more trust matters. This can be particularly relevant for startups where the number of people involved is small and collaboration is especially vital. For example, Engineers can’t build anything unless the Product team defines what customers want, what features they care about, and Product can’t really do that without coordination with the Marketing team. All these relationships rely on trust: that information is being openly shared, that people are telling the truth, giving honest feedback, working through differences and collaborating and working together to meet commitments. When there is good will and psychological safety on a team, members will be willing to be vulnerable and openly discuss their problems, opinions, and concerns. In addition, trust also increases the commitment and loyalty between team members, which reduces unwanted turnover, and increases a sense of common identity.
How Trust Grows
Trust builds slowly, over time. It is built in very small moments but can be destroyed in an instant. If team members have shared important experiences and been successful working together, or have endured difficult times and made it through to the other side, trust will naturally increase.
Trust grows when there is openness, information sharing, honesty, and the ability to voice differences and work together through conflict. As Google’s Project Aristotle on effective teamwork has found, members must feel free enough to share their opinions without fear of recrimination or attack. As a New York Times article said, “ We must be able to talk about what is messy or sad, to have hard conversations with colleagues who are driving us crazy. We can’t be focused just on efficiency.”
Growth of trust also requires regular interaction between members, listening and respecting each other’s ideas. This too takes time, and it means that you, as the leader, need to look for opportunities to increase the level of interaction and collaboration between members of the team. If team members operate in silos or have more frequent communication with the leader than with each other, the team will be less effective.
This can be especially challenging with remote team members. Videoconferences between team members in another country or city, or just in another building or domain, have become commonplace and the leader must pay close attention to bringing team members together in person whenever possible. Where that is not an option, the leader needs to be very deliberate about insuring active participation from all team members rather than allowing in-person members to dominate the discussion.
Does Your Team Trust You?
Leaders are often unaware of how much – or how little – team members are on board with the leader’s strategy, goals, and plans. Even worse, they often assume they have the team’s trust, when that is not always the case. Here are some ways to tell if your team trusts you:
- Team members sometimes take a different view from yours, and express it freely.
- Team members keep you informed of their progress. They are comfortable coming to you for help or suggestions if they get stuck.
- Team members appear comfortable admitting mistakes, and are willing to discuss their problems rather than hiding or minimizing them, or concealing them in fancy PowerPoints.
- Team members approach you when they have a non-work problem, to request time off or support.
- Team members are not obviously defensive or over-critical about statements you make.
- Team meetings are relatively open and there is wide participation, with everyone making a contribution.
- Team members speak up – often privately – if they have a problem with one of your decisions or your behavior and are prepared to discuss their concerns.
- There does not appear to be excessive gossip in the team.
These are all signs that you have done a good job in creating an atmosphere of safety and trust.
What Happens When Trust Is Strong? A recent meta-analysis of 112 research studies confirmed that trust between team members is highly correlated with the achievement of team goals. When trust is present, problem solving tends to be creative and productive. Discussions are livelier and out-of-the-box solutions get put on the table when fear of self-expression is absent. Members willingly take greater risks and say what is on their minds directly rather than behind others’ backs.
Trust has a similarly powerful impact on decision-making. The best decisions are made when the best thinking and all the facts are put on the table. When team members feel safe and expect that others will behave in a supportive and positive manner, they will be more willing to be vulnerable and open. They will work more collaboratively and stay more focused on team goals.
What Happens When Trust Is Weak? When trust is not strong, people are unwilling to share their real opinions and concerns. In that case, you are not getting the best thinking out of them. Often this lack of trust is due to the leader, who may have created an intimidating environment or failed to police bad behavior among members, such as personal attacks. In that environment, people are unwilling to share intuitive insights or half-formed ideas.
Problem solving tends to degenerate and become ineffective. Interpersonal relationships among team members interfere with and distort perception of the problem. That’s because, in the absence of trust, people’s energy and creativity are more focused on self-protection than on finding creative solutions. They feel the need to protect themselves from attack, humiliation, or retribution, rather than apply their energy and attention to problem solving and may withhold half-formed ideas that may contain the seed of a solution.
In the absence of trust, team members are more suspicious of others’ motivations, and become defensive. Openness is reduced, and people don’t say what they really think. Team members lose sight of team goals and focus on personal self-interest.
How to Build Team Trust
- Be honest with team members. Don’t spin things. If you distort the truth or outright lie, team members won’t trust you. Tell them the truth rather than what you think they want to hear. A leader must establish and maintain high standards of personal integrity.
- Show team members that you care about them as people rather than merely as units of production. Organizations and teams are not machines. Results are important but excessive focus on hitting goals and deadlines or improving performance and quality can give the message that you only see team members as means to an end. Create opportunities to socialize with them in informal settings such as team dinners and avoid too much focus on business issues at that time.
- Be proactive in building relationships. Listen to individual team members and get to know them and their concerns. Check in with them regularly to find out how things are going in their world and how they are feeling about events, projects, problems etc. It is easy for a busy team leader to become isolated and insulated from the problems and concerns of employees. If you are too distant from team members and don’t invest in getting to know them and what is important to them, they will be less likely to trust you. Leaders who show interest in the needs and challenges of the employees they manage set a positive tone on the team. Employees who feel valued and supported are more likely to be motivated to get results.
- Occasionally survey the team to take its temperature, particularly around trust levels and morale. Then discuss any barriers to teamwork that are surfaced by the results.
- Don’t withhold information. Leaders often worry that openly sharing sensitive information about financial results, decisions, or developments could cause problems. Whenever possible, eliminate secrets. Provide team members with both information they need, and information they want. Many leaders justify withholding information by saying, “I provide information on a need-to-know basis.” This reflects a lack of trust and need for control. Obviously, not all information can be shared. But ask team members what information they are not getting that they want and need. When possible, let them know about plans, developments, opportunities, challenges, and priorities. Sharing information makes people feel more like partners, and in the absence of information, rumors and speculation about worst-case scenarios proliferate.
- Explain the rationale behind your decisions. Give team members the context they need to understand why you made a decision and use it as an opportunity to teach and explain your thought process and the factors that they need to consider in making similar decisions. This is an opportunity to develop new leaders. Don’t be too quick to take responsibility for “important” problems. Let other team members own the analysis, the plan, and as much of the action as possible. Learn to empower team members as they demonstrate competence and good judgment. This demonstrates trust.
- Don’t micromanage. It suggests that you don’t believe that people will get things done without close monitoring and control, and that you don’t trust their judgment or capabilities. If you want to develop the trust of others, you must demonstrate trust in them.
- Put the good of the team and the organization ahead of your own self-interest. Leaders who are fixated on their reputation, financial rewards, and personal recognition are quickly distrusted by their team.
- Keep your commitments to team members and the team as a whole. If you don’t follow through on your promises, they will question if you will really do what you say you will do. If you don’t meet your commitments, you will send a message that others don’t need to meet theirs. Lack of consistency and dependability will destroy trust.
- Avoid blaming team members for mistakes, particularly in front of others. Create a norm around learning from mistakes. Effective team leaders take a little more than their share of the blame and go out of their way to give others the credit for achievements.
- Be human. Be open about your own mistakes and weaknesses and you will create space for others to be open about their shortcomings and problems. Don’t communicate in a formal, overly business-like manner that hides your humanity and accessibility. Be genuine and real.
- Monitor your own behavior and pay attention to the impact of your words and actions. Leaders who fail to treat team members with respect, consideration and sensitivity can destroy trust quickly. Trust takes a long time to develop but can be broken quickly.
- Don’t play favorites. When you reward your friends and fail to confront their substandard performance, it undermines trust and increases politics. Treat all team members fairly and consistently.
- Walk your talk. Be vigilant that your behavior is consistent with your stated beliefs and values. When the leader doesn’t behave in accord with the organization’s values and the team’s rules of the road, trust and credibility will be destroyed.
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Founders live in a world of chaos. It’s exhilarating, intense, and downright terrifying. You’re constantly shifting between the thrill of new ideas and the crushing weight of responsibility. Every decision feels like a life-or-death moment for your company, and the stress is unrelenting. Yet, amid this madness, there’s one thing that determines whether you’ll thrive or crash and burn: personal grounding.
Founders often carry a mythic aura, celebrated for their vision, charisma, and relentless drive. They are the bold risk-takers who disrupt industries, change lives, and will entire markets into existence. These narratives—as addictive as they are—often lead to an unfortunate misconception: that sheer genius is enough to scale a startup. It isn’t. Vision alone might get you through the knife-fight phase of a startup’s life, but when it’s time to scale, your brilliance can become a bottleneck. Founders who cling to the illusion that they can power through scaling challenges with charisma and creativity often fail spectacularly. This blog is a wake-up call for founders, potential founders, failed founders, and investors alike: genius alone will not carry you to the finish line. What separates the startups that thrive from those that crumble is not brilliance but the ability to build enduring systems, structures, and processes. Let’s dispel the myths and explore the unseen and often unglamorous work that founders need to master if they hope to turn a scrappy startup into a billion-dollar business. Myth 1: Vision Is Everything Most founders are natural Visionary Evangelists. They see around corners, spot market opportunities, and inspire teams with their bold ideas. Investors bet on these qualities, and for good reason: vision is what ignites the startup engine. But as the company grows, the same traits that propelled its early success can become liabilities. Vision without structure leads to chaos. Founders can’t just "will" their companies to scale. At some point, the organization’s complexity will outstrip the founder’s ability to manage it. The lack of clear systems and processes creates bottlenecks, frustrates teams, and erodes trust. Reality Check: Vision is critical, but it’s not a substitute for operational rigor. Scaling requires founders to translate their big ideas into actionable, repeatable systems. Without this bridge between strategy and execution, even the most promising startups will stall. Myth 2: The Founder’s Hustle Will Carry the Team In the early days, startups thrive on heroic efforts. Founders wear multiple hats, pulling all-nighters and stepping in wherever there’s a gap. This scrappy hustle becomes a badge of honor, an identity. But as the team grows, this approach becomes unsustainable and even destructive. Here’s the problem: many founders struggle to let go. They micromanage, make unilateral decisions, and refuse to delegate. Why? Because they’ve convinced themselves that no one else can match their passion or capability. This creates a toxic dynamic where the founder becomes the bottleneck, stalling progress and demoralizing their team. Reality Check: Hustle is not a scalable strategy. Founders must transition from being the hero to being the architect of systems that empower others to execute effectively. This means delegating, coaching, and trusting their team to own outcomes. Myth 3: Startups Should Avoid Bureaucracy The word “bureaucracy” sends chills down the spines of most founders. Isn’t the whole point of a startup to move fast and break things? Isn’t bureaucracy the enemy of innovation? Not exactly. While startups should avoid unnecessary red tape, the absence of structure often leads to inefficiency and burnout. Teams waste time reinventing the wheel because there’s no documented process. Priorities shift on a whim, leaving employees confused and disengaged. Founders who reject all forms of process in the name of agility often end up with chaos instead of speed. Reality Check: Scaling startups need “just enough” process to provide clarity and direction. Think of processes as guardrails, not handcuffs. They should enable agility, not stifle it. Myth 4: Scaling Is About Adding More Resources When startups hit growing pains, the instinctive reaction is to throw more resources at the problem: hire more people, buy better tools, raise more money. While these are sometimes necessary, they’re rarely sufficient. Scaling isn’t just about doing more; it’s about doing better. Consider this: doubling your team without clear systems in place will only amplify inefficiencies. Throwing money at problems without solving root causes leads to waste. Founders who equate scaling with “more” often find themselves with bloated organizations that are slow and unprofitable. Reality Check: Scaling is about improving efficiency and effectiveness. Before adding more resources, founders need to optimize their existing processes to handle greater complexity. What Successful Founders Do Differently So, what separates the founders who successfully scale their startups from those who don’t? Here are the key actions they take: 1. Re-engineer Inefficient Processes Successful founders don’t just patch over inefficiencies; they dig deep to redesign broken systems. They prioritize scalability from the start, asking questions like: “Can this process handle 10x growth?” If the answer is no, they fix it. 2. Shift from Doer to Leader Founders who scale learn to let go of day-to-day tasks and focus on strategic leadership. This means empowering their team to own decisions and outcomes while providing clear guidance and support. 3. Invest in People and Culture Scaling isn’t just about systems; it’s also about people. Great founders invest in hiring top talent, developing their team’s capabilities, and creating a culture that aligns with their values and vision. 4. Embrace Feedback and Adaptation Scaling is a messy process that requires constant iteration. Founders who thrive are those who actively seek feedback from their team, customers, and investors—and use it to refine their approach. 5. Build Operational Discipline This is where many founders falter. Operational discipline means setting clear goals, tracking progress, and holding people accountable. It’s about creating a rhythm of execution that ensures the company delivers on its promises. A Challenge to Founders If you’re a founder, ask yourself: Are you still trying to do everything yourself? Do your teams know their priorities, or are they constantly scrambling to figure out what matters most? Are your processes built to scale, or are you just winging it? Be honest. The answers to these questions will reveal whether you’re truly ready to scale your company or if you’re standing in your own way. For potential founders: Don’t romanticize the hustle. Building a startup requires more than just a big idea and hard work. Be prepared to master the unsexy, behind-the-scenes work of creating systems and structures that enable growth. For failed founders: Reflect on where things went wrong. Was it a lack of vision, or was it the inability to scale operations? Use those lessons to rebuild stronger. For investors: Stop glorifying the lone genius. Look for founders who are not just visionary but disciplined in execution. Invest in those who are willing to grow alongside their companies. The Takeaway Scaling is not a magical process that happens when you raise enough money or hire enough people. It’s a deliberate, disciplined effort to build the systems, structures, and processes that allow your company to grow sustainably. Vision might light the fire, but operational excellence keeps it burning. For founders willing to do the hard work, the rewards are immense. The ability to scale beyond genius is what separates the unicorns from the also-rans. The question is: are you ready to put in the work?
In a recent Founders Keepers newsletter entitled “When Their Moral Compass Fails, Leaders Fail: How Greed, Power, and Pressure Can Destroy Founders” I discussed how the pressure of investor demands, and the corrosive effects of power and greed can erode a founder’s moral compass. These challenges are not limited to startup founders; they affect leaders across all industries. However, our research on nearly 2,000 executives, including the top 200 leaders who emerged as the “best” based on 360-degree feedback ratings, provides a critical insight: the best leaders are unwavering models of integrity and values. This is not just an ideal to aspire to—it’s a requirement for sustainable success. When leaders prioritize integrity and live by a clear set of values, they build trust, inspire their teams, and create a foundation for enduring impact. This post will delve into what it means to lead with integrity, how the best leaders embody these principles, and actionable steps you can take to align with these ideals. Integrity: The Cornerstone of Leadership Integrity in leadership is about much more than honesty. It encompasses consistency between words and actions, ethical decision-making, and a commitment to doing what is right, even in the face of adversity. Leaders with integrity act as a moral compass for their organizations, guiding decisions and behavior through a clear ethical lens. Our research on the best leaders revealed several defining characteristics of integrity in leadership: Consistency in Actions and Words: The best leaders “walk the talk,” ensuring their actions align with their stated values. This predictability fosters trust and reduces organizational uncertainty. Ethical Decision-Making: These leaders prioritize ethical considerations, making decisions that align with their values rather than taking shortcuts for short-term gains. Accountability: They own their mistakes, modeling humility and responsibility for their teams. Take Howard Schultz, the former CEO of Starbucks, as an example. Schultz demonstrated integrity by prioritizing ethical sourcing, offering healthcare benefits to part-time employees, and fostering a culture of respect and inclusion. His leadership not only built a globally respected brand but also created an environment where employees felt valued, and customers felt connected to the company’s mission. According to a comprehensive review of the literature, leaders who demonstrate integrity cultivate stronger trust among their teams, improve morale, and enhance overall organizational performance. The ripple effects of their behavior extend to organizational reputation, customer loyalty, and financial success. Values as the Leader’s Guiding Light Values are the principles that define what is most important to an individual or organization. For leaders, values serve as a decision-making framework, shaping their behavior and influencing their teams. Leaders who model and promote core values create a strong organizational culture where employees feel aligned and inspired. In our study of the best leaders, the following behaviors stood out: Leading by Example: The best leaders don’t just articulate values; they embody them. Their behavior demonstrates the standards they expect from others. High Standards of Conduct: These leaders maintain impeccable personal and professional standards, setting a tone that permeates their teams and organizations. Promoting Organizational Values: By aligning their behavior with the organization’s mission and vision, these leaders reinforce the importance of shared values. Brian Chesky, CEO of Airbnb, exemplified these principles during the COVID-19 pandemic. Faced with difficult decisions, Chesky ensured that laid-off employees received generous severance packages and career support. His transparent and empathetic approach reinforced Airbnb’s values and preserved the company’s reputation during a challenging time. The literature supports these findings, emphasizing that when leaders align personal and organizational values, it leads to increased job satisfaction, higher productivity, and reduced turnover. Trust: The Currency of Leadership Integrity and values contribute to the most critical currency a leader possesses: trust. Leaders who consistently demonstrate integrity earn the confidence of their employees, stakeholders, and customers. This trust forms the foundation of effective collaboration, open communication, and organizational resilience. Our research showed that trust was a hallmark of the best leaders. They were described as dependable, reliable, and fair. Their actions consistently reflected their commitments, which inspired loyalty and respect. Paul Polman, former CEO of Unilever, is a shining example of how integrity builds trust. Polman led Unilever with a focus on sustainability and social responsibility, proving that profitability and ethical practices can coexist. His leadership attracted like-minded stakeholders, enhanced the company’s reputation, and set a benchmark for ethical corporate governance. Building trust, however, is not a one-time effort. It requires continuous reinforcement through ethical behavior, transparency, and accountability. As one executive in our study remarked, “Trust takes years to build, seconds to break, and forever to repair.” The Downside of Losing Integrity The stakes for leaders who fail to model integrity are high. Our review of business failures, including infamous cases like Enron and Theranos, highlights how a lack of ethical leadership can lead to catastrophic outcomes. Leaders who compromise their values for short-term gains risk not only their reputations but also the viability of their organizations. The Enron scandal was rooted in accounting fraud and ethical violations by top executives who prioritized personal gain over organizational integrity. Similarly, Elizabeth Holmes of Theranos allowed ambition to override honesty, leading to the downfall of a once-promising company. These examples underscore the importance of ethical leadership in avoiding reputational and financial disaster. Expanding the Legacy: The Ripple Effects of Integrity Leaders who model integrity extend their influence far beyond their immediate teams. They create a ripple effect that shapes organizational culture, industry standards, and even societal expectations. A consistent pattern in our research is that ethical leaders inspire ethical behavior at all levels of the organization, amplifying their impact. For instance, Satya Nadella’s leadership at Microsoft has transformed the company culture from one of cutthroat competition to collaboration and innovation. By prioritizing empathy, inclusion, and a growth mindset, Nadella has demonstrated how values-driven leadership can rejuvenate a global organization and inspire employees worldwide. This ripple effect is not accidental; it requires intentional effort to embed integrity into every aspect of leadership. Leaders must ask themselves: How can I ensure my values are reflected in the decisions I make, the systems I design, and the culture I cultivate? Actionable Steps for Leading with Integrity So, how can leaders ensure they remain models of values in the face of challenges? Here are actionable strategies based on our research and the broader literature: Clarify Your Core Values: Take time to reflect on your principles and create a personal mission statement. Ensure your values align with your organization’s mission. Lead by Example: Demonstrate your values through consistent actions. Be the behavior you wish to see in your team. Be Transparent: Openly communicate your decisions and the values guiding them. Transparency builds trust and accountability. Own Your Mistakes: When you fall short, acknowledge it. Use failures as an opportunity to model humility and resilience. Seek Feedback: Regularly solicit input from your team to understand how your behavior aligns with your values. This fosters self-awareness and continuous improvement. Promote Organizational Values: Reinforce the importance of shared values by embedding them into your organization’s culture and decision-making processes. Practice Ethical Decision-Making: Develop a habit of evaluating decisions through an ethical lens. Ask yourself how your choices align with your values and their impact on others. Amplify Your Influence: Leverage your position to mentor others, advocate for ethical practices, and inspire your industry to prioritize integrity. An Inspiring Legacy The best leaders are not only successful but also admired for their integrity and values. Their influence extends beyond organizational performance to leave a lasting legacy of trust, inspiration, and ethical conduct. As leaders, we must constantly ask ourselves: What kind of legacy are we building? In the words of one of the best leaders from our study, “Leadership isn’t about being in charge; it’s about taking care of those in your charge.” By prioritizing integrity and living by our values, we can inspire those around us and build organizations that stand the test of time. As you reflect on this, revisit the challenges I outlined in Founders Keepers —the pressures, greed, and power that can erode integrity. Let this serve as a reminder to stay grounded in your values and lead with unwavering commitment to what is right. Success is fleeting, but integrity endures.
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