Best Leaders Research
July 6, 2025
Reprint from Thought Economics, A Journey of Intellectual Capital
June 20, 2025
June 9, 2025
Startup founders represent the ultimate paradox: celebrated for their innovative brilliance yet notoriously susceptible to failure. In reality, the difference between astronomical success and dismal failure boils down to a surprisingly consistent set of behaviors and personality traits. Drawing from extensive 360 feedback studies, personality assessments, and deep insights from Founders Keepers, we've unraveled exactly what separates winners from losers in the startup world. Myth-busting: Genius Jerks Rarely Prevail A common myth persists that successful founders must be narcissistic, domineering, and abrasive—the stereotypical "genius jerk." Yet, our rigorous analysis of data from 122 founders, comparing the top performers (at least 10X returns) with bottom performers (zero returns), decisively shatters this myth. Successful founders, contrary to popular belief, rarely succeed because of egocentric ruthlessness. Instead, they thrive due to their extraordinary adaptability, relationship-building skills, disciplined execution, and deep personal grounding. Meanwhile, unsuccessful founders often implode because of their rigidity, isolation, impulsivity, and inability to truly lead teams. Adaptability: The Endless Pursuit of Product-Market Fit Successful founders understand one critical truth: product-market fit isn't a finish line; it’s a continuous process. They show an exceptional ability to: Remain open to input, eagerly soliciting and integrating team feedback. Effectively manage resistance, empathetically addressing team concerns. Skillfully create buy-in, building commitment through transparency and genuine engagement. In contrast, unsuccessful founders typically fail due to rigidity. They stubbornly anchor themselves to outdated strategies, ignore valuable feedback, and react defensively to challenges, eventually becoming roadblocks in their own companies. Relationship Building: From Loners to Leaders A pivotal distinction lies in the ability to work effectively through others. Successful founders consistently excel in empowering their teams. They: Delegate effectively, granting autonomy while clearly defining expectations. Maintain trust through consistent behavior, integrity, and transparency. Develop robust emotional intelligence, adeptly managing conflict and strengthening team cohesion. Unsuccessful founders, on the other hand, struggle profoundly with delegation. Their chronic micromanagement erodes trust and morale, creating environments of fear and resentment. They often isolate themselves, failing to build genuine relationships, thus missing critical insights and innovations their teams could provide. Execution: Discipline Over Charisma Execution—arguably the most underrated pillar of startup leadership—truly separates winners from losers. Successful founders meticulously: Set clear, measurable, and achievable goals. Follow through relentlessly, holding themselves and others accountable. Create robust systems and processes to scale effectively. Conversely, unsuccessful founders typically suffer from chronic disorganization and impulsivity. Their inability to prioritize, constant pivots without strategic clarity, and poor follow-through generate chaos and stifle growth. Personal Grounding: Stability Amidst Chaos Perhaps most counterintuitively, successful founders exhibit deep personal grounding—a trait seldom highlighted in sensational startup narratives. They: Demonstrate emotional resilience, remaining composed under extreme stress. Exhibit patience, tolerating ambiguity and uncertainty with grace. Maintain optimistic yet realistic perspectives, avoiding destructive cycles of anxiety or panic. Unsuccessful founders, however, often spiral under pressure. Their volatility and emotional reactivity exacerbate crises, leading to poor decision-making and destructive interpersonal dynamics. Self-Awareness: The Hidden Driver of Success Underpinning all these traits is profound self-awareness—arguably the most critical competency of all. Successful founders consistently seek self-improvement, humbly recognizing their weaknesses and proactively addressing them. They actively solicit honest feedback, never fearing the vulnerability required for growth. Unsuccessful founders, conversely, often display a tragic lack of self-awareness. Their denial of shortcomings, defensiveness to feedback, and unwillingness to evolve ultimately doom their startups. Real-World Wisdom: Voices from the Trenches Beyond the data, the human stories captured in 360 feedback illustrate these differences vividly: Successful founders receive praise like, “He constantly solicits input, adapts swiftly, and builds deep trust. His humility makes everyone want to follow him.” Unsuccessful founders, by contrast, earn harsh critiques: “He ignores input, reacts defensively, and insists on controlling every detail. The team is disengaged and demoralized.” These narratives underscore the simple but powerful truth that the best founders aren't isolated geniuses—they’re skilled leaders who build environments where everyone can thrive. The Path Forward: Turning Insights into Action If you're a founder, investor, or leader within the startup ecosystem, confront these truths head-on. Assess yourself and your organization rigorously: Are you truly adaptable, or merely superficially agile? Are you empowering your team, or stifling their potential? Are you executing with discipline, or flailing with chaos? Are you grounded emotionally, or reactive and volatile? Are you genuinely self-aware, or defensively delusional? Final Thoughts Ultimately, founder success isn’t about flashy charisma or ruthless ambition. It’s about a disciplined commitment to growth—both personal and organizational. Embrace adaptability, deepen your self-awareness, and master the art of leadership grounded in trust and integrity. This is not merely good advice—it’s the proven difference between a startup’s spectacular success and its avoidable failure. What traits do you see defining successful and unsuccessful founders in your experience? Let's discuss!
May 9, 2025
We’ve all seen the headlines: visionary founders, celebrated one day, indicted for fraud the next. Elizabeth Holmes of Theranos, Sam Bankman-Fried of FTX, Trevor Milton of Nikola—each a cautionary tale. But why does this keep happening? More importantly, how can investors and venture capitalists spot the red flags before disaster strikes? After decades coaching startup founders and executives, and through intensive psychological profiling research in my book, Founders Keepers, it’s clear that the qualities which make founders extraordinary can also lead them into ethical peril. Ambition Gone Rogue Ambition is the engine of innovation, but when unchecked, it can spiral into something destructive. Elizabeth Holmes, once hailed as the next Steve Jobs, turned ambition into deception, sacrificing integrity for the illusion of success. Her willingness to misrepresent Theranos's technology eventually led to fraud convictions and a 11-year prison sentence. Similarly, Trevor Milton fabricated demonstrations of Nikola’s hydrogen-powered trucks, deceiving investors and regulators alike. Ambition that isn’t tempered by reality becomes toxic, pushing founders to prioritize appearances over substance. Narcissism and the Cult of Personality A striking number of fraudulent founders exhibit narcissistic traits. Narcissistic Personality Disorder (NPD) is disturbingly common among indicted entrepreneurs like Holmes, Adam Neumann, and Billy McFarland. These individuals have inflated self-worth, entitlement, and a troubling lack of empathy—traits that enable them to manipulate investors, employees, and markets. Adam Neumann’s charismatic leadership at WeWork masked a self-serving agenda. He leased his own properties to WeWork and indulged in extravagances funded by investor capital. His eventual downfall underscores a critical point: charisma and confidence, unchecked by accountability, can devastate companies. Pressure, Risk, and Rationalization Founders operate in pressure cookers. Investor demands, market competition, and internal expectations can distort ethical boundaries. Under such strain, founders rationalize questionable decisions—initially minor, then increasingly severe. Sam Bankman-Fried’s FTX saga exemplifies this slippery slope. Praised for his effective altruism, he secretly diverted customer funds into his own hedge fund, creating one of history’s largest financial implosions. Under extreme pressure to perform, ethical lines blurred into oblivion. The Dark Triad and Founder Psychology Research identifies a psychological pattern—the Dark Triad: narcissism, Machiavellianism, and psychopathy. Founders exhibiting these traits manipulate, charm, and dominate others effortlessly. Their moral compasses malfunction, viewing ethics as mere obstacles. Martin Shkreli of Turing Pharmaceuticals raised drug prices mercilessly, justified as smart business. He ultimately faced securities fraud charges. This combination of manipulative charm, moral disengagement, and ruthless pragmatism frequently ends in corporate ruin. Red Flags Investors Can’t Ignore VCs and investors must vigilantly recognize signals of potential ethical crises: Accountability Gaps: Founders who deflect blame, resist feedback, or evade responsibility when faced with failures. Deceptive Fluency: Founders who remain intentionally vague, changing narratives to fit different audiences, lack transparency, and dodge specifics. Weak Governance: Companies lacking robust financial controls, passive boards, or weak compliance protocols enable founder misconduct. Excessive Charm: Overly charismatic leaders who evade scrutiny, foster cult-like devotion, and dismiss ethical concerns as trivial. Case Study: When Good Intentions Go Bad Consider Charlie Javice the Frank founder. Desperate to sell her startup, she fabricated millions of fake users, deceiving JPMorgan into a $175 million acquisition. Ambition, pressure, and opportunity collided disastrously, underscoring that even well-intentioned founders can fall if ethical vigilance wanes. Prevention through Awareness and Systems To mitigate these risks, investors must foster cultures of accountability. This means: Rigorous Due Diligence: Deep vetting of founder histories, not just their pitch decks. Transparent Governance: Enforcing independent oversight, clear reporting, and stringent ethical guidelines. Balanced Teams: Encouraging founders to build leadership teams empowered to challenge decisions. Healthy skepticism, combined with robust systems, creates a strong firewall against unethical behavior. Redemption and Self-Awareness Not all troubled founders are irredeemable. Many need interventions—coaching, accountability partners, and structured feedback—to prevent ethical slippage. Self-awareness is key. Founders who reflect on their blind spots and acknowledge limitations have a far better prognosis. Investing Wisely Means Looking Deeper The stark truth for investors is this: brilliance without integrity is dangerous. Investing isn't merely betting on ideas; it's assessing character. The cost of ignoring red flags is staggering, not just financially, but reputationally and ethically. Ask yourself one simple question when evaluating founders: If they weren't successful, would their behaviors still seem acceptable? The answer reveals everything. The line between visionary and fraudster is thin. Vigilance, skepticism, and structured accountability are critical tools in protecting your investments—and ensuring the next headline isn't about your portfolio.
By Rich Hagberg
•
February 27, 2025
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.
July 6, 2025
Reprint from Thought Economics, A Journey of Intellectual Capital
June 20, 2025
June 9, 2025
Startup founders represent the ultimate paradox: celebrated for their innovative brilliance yet notoriously susceptible to failure. In reality, the difference between astronomical success and dismal failure boils down to a surprisingly consistent set of behaviors and personality traits. Drawing from extensive 360 feedback studies, personality assessments, and deep insights from Founders Keepers, we've unraveled exactly what separates winners from losers in the startup world. Myth-busting: Genius Jerks Rarely Prevail A common myth persists that successful founders must be narcissistic, domineering, and abrasive—the stereotypical "genius jerk." Yet, our rigorous analysis of data from 122 founders, comparing the top performers (at least 10X returns) with bottom performers (zero returns), decisively shatters this myth. Successful founders, contrary to popular belief, rarely succeed because of egocentric ruthlessness. Instead, they thrive due to their extraordinary adaptability, relationship-building skills, disciplined execution, and deep personal grounding. Meanwhile, unsuccessful founders often implode because of their rigidity, isolation, impulsivity, and inability to truly lead teams. Adaptability: The Endless Pursuit of Product-Market Fit Successful founders understand one critical truth: product-market fit isn't a finish line; it’s a continuous process. They show an exceptional ability to: Remain open to input, eagerly soliciting and integrating team feedback. Effectively manage resistance, empathetically addressing team concerns. Skillfully create buy-in, building commitment through transparency and genuine engagement. In contrast, unsuccessful founders typically fail due to rigidity. They stubbornly anchor themselves to outdated strategies, ignore valuable feedback, and react defensively to challenges, eventually becoming roadblocks in their own companies. Relationship Building: From Loners to Leaders A pivotal distinction lies in the ability to work effectively through others. Successful founders consistently excel in empowering their teams. They: Delegate effectively, granting autonomy while clearly defining expectations. Maintain trust through consistent behavior, integrity, and transparency. Develop robust emotional intelligence, adeptly managing conflict and strengthening team cohesion. Unsuccessful founders, on the other hand, struggle profoundly with delegation. Their chronic micromanagement erodes trust and morale, creating environments of fear and resentment. They often isolate themselves, failing to build genuine relationships, thus missing critical insights and innovations their teams could provide. Execution: Discipline Over Charisma Execution—arguably the most underrated pillar of startup leadership—truly separates winners from losers. Successful founders meticulously: Set clear, measurable, and achievable goals. Follow through relentlessly, holding themselves and others accountable. Create robust systems and processes to scale effectively. Conversely, unsuccessful founders typically suffer from chronic disorganization and impulsivity. Their inability to prioritize, constant pivots without strategic clarity, and poor follow-through generate chaos and stifle growth. Personal Grounding: Stability Amidst Chaos Perhaps most counterintuitively, successful founders exhibit deep personal grounding—a trait seldom highlighted in sensational startup narratives. They: Demonstrate emotional resilience, remaining composed under extreme stress. Exhibit patience, tolerating ambiguity and uncertainty with grace. Maintain optimistic yet realistic perspectives, avoiding destructive cycles of anxiety or panic. Unsuccessful founders, however, often spiral under pressure. Their volatility and emotional reactivity exacerbate crises, leading to poor decision-making and destructive interpersonal dynamics. Self-Awareness: The Hidden Driver of Success Underpinning all these traits is profound self-awareness—arguably the most critical competency of all. Successful founders consistently seek self-improvement, humbly recognizing their weaknesses and proactively addressing them. They actively solicit honest feedback, never fearing the vulnerability required for growth. Unsuccessful founders, conversely, often display a tragic lack of self-awareness. Their denial of shortcomings, defensiveness to feedback, and unwillingness to evolve ultimately doom their startups. Real-World Wisdom: Voices from the Trenches Beyond the data, the human stories captured in 360 feedback illustrate these differences vividly: Successful founders receive praise like, “He constantly solicits input, adapts swiftly, and builds deep trust. His humility makes everyone want to follow him.” Unsuccessful founders, by contrast, earn harsh critiques: “He ignores input, reacts defensively, and insists on controlling every detail. The team is disengaged and demoralized.” These narratives underscore the simple but powerful truth that the best founders aren't isolated geniuses—they’re skilled leaders who build environments where everyone can thrive. The Path Forward: Turning Insights into Action If you're a founder, investor, or leader within the startup ecosystem, confront these truths head-on. Assess yourself and your organization rigorously: Are you truly adaptable, or merely superficially agile? Are you empowering your team, or stifling their potential? Are you executing with discipline, or flailing with chaos? Are you grounded emotionally, or reactive and volatile? Are you genuinely self-aware, or defensively delusional? Final Thoughts Ultimately, founder success isn’t about flashy charisma or ruthless ambition. It’s about a disciplined commitment to growth—both personal and organizational. Embrace adaptability, deepen your self-awareness, and master the art of leadership grounded in trust and integrity. This is not merely good advice—it’s the proven difference between a startup’s spectacular success and its avoidable failure. What traits do you see defining successful and unsuccessful founders in your experience? Let's discuss!
May 9, 2025
We’ve all seen the headlines: visionary founders, celebrated one day, indicted for fraud the next. Elizabeth Holmes of Theranos, Sam Bankman-Fried of FTX, Trevor Milton of Nikola—each a cautionary tale. But why does this keep happening? More importantly, how can investors and venture capitalists spot the red flags before disaster strikes? After decades coaching startup founders and executives, and through intensive psychological profiling research in my book, Founders Keepers, it’s clear that the qualities which make founders extraordinary can also lead them into ethical peril. Ambition Gone Rogue Ambition is the engine of innovation, but when unchecked, it can spiral into something destructive. Elizabeth Holmes, once hailed as the next Steve Jobs, turned ambition into deception, sacrificing integrity for the illusion of success. Her willingness to misrepresent Theranos's technology eventually led to fraud convictions and a 11-year prison sentence. Similarly, Trevor Milton fabricated demonstrations of Nikola’s hydrogen-powered trucks, deceiving investors and regulators alike. Ambition that isn’t tempered by reality becomes toxic, pushing founders to prioritize appearances over substance. Narcissism and the Cult of Personality A striking number of fraudulent founders exhibit narcissistic traits. Narcissistic Personality Disorder (NPD) is disturbingly common among indicted entrepreneurs like Holmes, Adam Neumann, and Billy McFarland. These individuals have inflated self-worth, entitlement, and a troubling lack of empathy—traits that enable them to manipulate investors, employees, and markets. Adam Neumann’s charismatic leadership at WeWork masked a self-serving agenda. He leased his own properties to WeWork and indulged in extravagances funded by investor capital. His eventual downfall underscores a critical point: charisma and confidence, unchecked by accountability, can devastate companies. Pressure, Risk, and Rationalization Founders operate in pressure cookers. Investor demands, market competition, and internal expectations can distort ethical boundaries. Under such strain, founders rationalize questionable decisions—initially minor, then increasingly severe. Sam Bankman-Fried’s FTX saga exemplifies this slippery slope. Praised for his effective altruism, he secretly diverted customer funds into his own hedge fund, creating one of history’s largest financial implosions. Under extreme pressure to perform, ethical lines blurred into oblivion. The Dark Triad and Founder Psychology Research identifies a psychological pattern—the Dark Triad: narcissism, Machiavellianism, and psychopathy. Founders exhibiting these traits manipulate, charm, and dominate others effortlessly. Their moral compasses malfunction, viewing ethics as mere obstacles. Martin Shkreli of Turing Pharmaceuticals raised drug prices mercilessly, justified as smart business. He ultimately faced securities fraud charges. This combination of manipulative charm, moral disengagement, and ruthless pragmatism frequently ends in corporate ruin. Red Flags Investors Can’t Ignore VCs and investors must vigilantly recognize signals of potential ethical crises: Accountability Gaps: Founders who deflect blame, resist feedback, or evade responsibility when faced with failures. Deceptive Fluency: Founders who remain intentionally vague, changing narratives to fit different audiences, lack transparency, and dodge specifics. Weak Governance: Companies lacking robust financial controls, passive boards, or weak compliance protocols enable founder misconduct. Excessive Charm: Overly charismatic leaders who evade scrutiny, foster cult-like devotion, and dismiss ethical concerns as trivial. Case Study: When Good Intentions Go Bad Consider Charlie Javice the Frank founder. Desperate to sell her startup, she fabricated millions of fake users, deceiving JPMorgan into a $175 million acquisition. Ambition, pressure, and opportunity collided disastrously, underscoring that even well-intentioned founders can fall if ethical vigilance wanes. Prevention through Awareness and Systems To mitigate these risks, investors must foster cultures of accountability. This means: Rigorous Due Diligence: Deep vetting of founder histories, not just their pitch decks. Transparent Governance: Enforcing independent oversight, clear reporting, and stringent ethical guidelines. Balanced Teams: Encouraging founders to build leadership teams empowered to challenge decisions. Healthy skepticism, combined with robust systems, creates a strong firewall against unethical behavior. Redemption and Self-Awareness Not all troubled founders are irredeemable. Many need interventions—coaching, accountability partners, and structured feedback—to prevent ethical slippage. Self-awareness is key. Founders who reflect on their blind spots and acknowledge limitations have a far better prognosis. Investing Wisely Means Looking Deeper The stark truth for investors is this: brilliance without integrity is dangerous. Investing isn't merely betting on ideas; it's assessing character. The cost of ignoring red flags is staggering, not just financially, but reputationally and ethically. Ask yourself one simple question when evaluating founders: If they weren't successful, would their behaviors still seem acceptable? The answer reveals everything. The line between visionary and fraudster is thin. Vigilance, skepticism, and structured accountability are critical tools in protecting your investments—and ensuring the next headline isn't about your portfolio.
By Rich Hagberg
•
February 27, 2025
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.
By Rich Hagberg
•
January 30, 2025
Scaling Beyond Genius: The Unseen Work of Building a Billion-Dollar Startup
By Rich Hagberg
•
January 24, 2025
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.
By Rich Hagberg
•
January 17, 2025
Look around: the world feels chaotic. You’re grappling with uncertainty, economic struggles, and a sense that the system you’ve relied on is cracking at its foundation. You’re not alone in feeling this way. Millions share your frustration and along comes someone who seems to have all the answers. They speak with confidence and charisma, cutting through the noise with promises of security, strength, and a brighter future. They tell you, “I will fix everything. Just trust me.” Sound familiar? This is the allure of the authoritarian leader—a figure who rises to power by exploiting fear and uncertainty, offering solutions that seem simple and reassuring but often come at a steep cost. History is littered with examples of such leaders, from the tyrants of ancient empires to modern-day strongmen. They all share strikingly similar traits and tactics, and the story of their rise and the havoc they wreak—serves as a cautionary tale for us all. How to Spot an Authoritarian Leader Authoritarian leaders don’t wear a label announcing their intentions. Instead, they present themselves as saviors in troubled times. Here are some telltale signs to watch for: Power Grabbers: These leaders thrive on centralizing power. They bypass checks and balances, dismiss dissenting voices, and make decisions unilaterally. They’ll tell you it’s for the greater good, but it’s really about control. Charismatic Rhetoric: They’re often spellbinding speakers who tap into your emotions. They promise simple solutions to complex problems and use repetitive messaging to hammer their points home. Fear Merchants: Fear is their currency. They amplify threats—real or imagined—to make you feel vulnerable. They’ll tell you that only they can protect you from “them” (whoever “them” might be). Polarizers: Authoritarian leaders thrive on division. They’ll frame the world in black and white: us versus them, good versus evil. This creates a loyal in-group while vilifying an out-group. Cult of Personality: They carefully craft an image of invincibility, wisdom, or moral superiority. You’re not just following a leader; you’re following a larger-than-life figure who seems destined to lead. Sounds appealing? That’s the trap. What starts as admiration can quickly turn into blind allegiance, and before you know it, you’re complicit in empowering someone who might not have your best interests at heart. The Toolbox of Manipulation How do authoritarian leaders pull this off? Their playbook is both time-tested and chillingly effective. Here’s how they manipulate and appeal to people: Emotional Manipulation They know how to tug at your heartstrings—and your fears. A cornerstone of their strategy is fearmongering. They’ll highlight threats, exaggerate dangers, and convince you that the world is on the brink of disaster. “Without me,” they say, “you’ll be lost.” But they don’t stop at fear. They also dangle hope. Grand promises of prosperity, strength, and security make it easy to ignore the finer details—or lack thereof. Simplifying Complexity Ever been frustrated by how complicated the world seems? Authoritarian leaders offer relief. They boil everything down into simplistic terms: “Here’s the problem, and here’s the solution.” Of course, their solutions often ignore reality or trample over ethical considerations, but that’s easy to miss when you’re desperate for answers. Propaganda and Censorship Control the narrative, and you control the people. These leaders master propaganda, using state media, social platforms, and misinformation to shape public perception. Dissenting voices are silenced, creating an echo chamber where only their truth exists. Scapegoating and Division When things go wrong, they’ll point fingers elsewhere. Immigrants, minorities, opposing political groups, or even entire countries become convenient scapegoats. This tactic redirects your frustration away from the leader and toward a common enemy. Rewarding Loyalty They’re experts at creating dependency. Loyal followers are rewarded with perks, jobs, or financial incentives. This reinforces a system where loyalty isn’t just encouraged; it’s mandatory. Why Do People Follow Them? Here’s the million-dollar question: if authoritarian leaders are so dangerous, why do people fall for their tricks? The answer lies in psychology, sociology, and political dynamics. Psychological Factors The Authoritarian Personality: Some people are naturally drawn to authority. They value order, hierarchy, and tradition, and they’re more likely to submit to strong leaders who promise to uphold these values. Fear and Uncertainty: In times of crisis, fear takes over. People crave stability and security, making them more susceptible to leaders who promise to restore order. Need for Simplicity: Not everyone enjoys grappling with ambiguity. Many prefer simple, definitive answers, even if they’re not accurate. Sociological Factors Group Identity: Authoritarian leaders often appeal to a shared sense of identity, whether it’s national, cultural, or religious. By protecting this identity, they gain loyalty. Economic and Social Inequality: Inequality breeds resentment. People who feel left behind are more likely to embrace leaders who claim they’ll “level the playing field.” Distrust in Institutions: When traditional systems like government or media lose credibility, people look for alternatives. Authoritarian leaders exploit this vacuum. Political Factors Crisis Situations: Emergencies like wars, pandemics, or economic recessions create fertile ground for authoritarianism. In such moments, decisive action—even if it’s authoritarian—feels appealing. Polarization: In divided societies, people become entrenched in their views. Authoritarian leaders use this division to consolidate power, presenting themselves as the only solution. The Danger of Blind Loyalty Following an authoritarian leader might feel comforting at first, but history shows us where it often leads: Loss of Freedom: Authoritarian regimes suppress dissent, restrict free speech, and erode democratic institutions. You might find yourself living in a world where you can’t speak your mind. Erosion of Morality: Scapegoating and division lead to dehumanization. You may start justifying or even participating in actions you once considered unthinkable. Inefficiency and Corruption: Concentrating power in one person often leads to poor decision-making, cronyism, and corruption. Conflict and Violence: Polarization can escalate into outright violence, whether through civil unrest or external wars initiated by the regime. How to Resist the Siren Call Recognizing the signs of authoritarianism is the first step to resisting it. Here’s what you can do: Stay Informed: Seek out diverse sources of information. Don’t rely solely on what one leader or group tells you. Question Simple Answers: Be wary of anyone who claims to have all the answers. The world is complex, and solutions usually are too. Engage in Dialogue: Talk to people with different viewpoints. Polarization thrives on isolation; dialogue fosters understanding. Support Institutions: Strengthen the democratic systems that keep authoritarianism in check, such as free press, independent courts, and fair elections. Recognize Fear Tactics: When someone tries to manipulate you with fear, take a step back and analyze the situation logically. Conclusion: The Cost of Complacency The allure of an authoritarian leader is powerful, especially in times of uncertainty. But history’s cautionary tales remind us that the price of blind loyalty is often steep. It’s not just your freedoms that are at risk but your morality, your society, and your future. So, the next time someone promises to solve all your problems with a wave of their hand, take a moment to pause. Ask yourself: what are they really offering, and at what cost? The answer could mean the difference between a brighter future and a darker path. Stay vigilant, stay informed, and never stop questioning.
By Rich Hagberg
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January 10, 2025
What if everything you thought you knew about confident leadership was wrong? Our extensive research into the characteristics of "Best Leaders," based on in-depth analysis of 360-degree evaluations from their followers, revealed a surprising truth. We examined both the personality traits and behaviors of highly rated leaders, and they possessed a unique brand of self-confidence. They weren't necessarily the most forceful, outspoken, or the ones who believed they were the smartest person in the room. Instead, they were consistently described with words like: Humble: They readily acknowledged their limitations and sought out diverse perspectives. Authentic: They were genuine in their interactions and weren't afraid to show vulnerability. Empathetic: They deeply cared about their teams and fostered a sense of belonging. Open-minded: They were receptive to new ideas and encouraged constructive criticism. But here's where the paradox emerges. A deeper dive into their personality assessments revealed a seemingly contradictory picture. These humble, empathetic leaders also displayed traits like: Assertiveness: They were decisive, driven, and pushed for results, but without being overly aggressive or domineering. Self-Assurance: They possessed a strong sense of self, recognizing their leadership capabilities and ability to influence and motivate, but without arrogance or a need for personal recognition. Insistence: They had a sense of urgency and could be insistent yet remained thoughtful and avoided impulsive or reckless actions. This fascinating blend of seemingly contrasting traits challenges the conventional image of the confident leader – the bold, assertive individual who commands attention and never shows weakness. It suggests that true leadership lies in finding a delicate balance: cultivating a quiet inner strength that allows you to embrace vulnerability, empower others, and foster a culture of collaboration and continuous learning, while also possessing the drive and determination to achieve ambitious goals. This is the confidence paradox: the most effective leaders aren't the ones who shout the loudest or boast the most impressive credentials. They are the ones who possess a deep-rooted belief in their abilities that allows them to embrace vulnerability, seek out diverse perspectives, and empower those around them, all while confidently driving their teams and organizations forward. In this blog post, we'll delve into the intricacies of this paradoxical confidence, exploring how it differs from arrogance and hubris, why humility is its secret weapon, and how you can cultivate this essential quality to become a truly exceptional leader. Unmasking the Hubris Trap: When Confidence Turns Toxic We've all encountered them – the leaders who exude an air of superiority, who surround themselves with yes-men, and who bulldoze their way through decisions without considering the consequences. This isn't confidence; it's hubris, a dangerous mask that often conceals deep-seated insecurities and a fragile ego. Hubristic leaders may achieve short-term wins, riding on the wave of their charisma and forceful personalities. However, their reign is often marked by a trail of destruction: toxic work environments where fear and intimidation stifle creativity, a lack of trust that erodes loyalty, and ultimately, catastrophic failures born from reckless decision-making. These leaders, blinded by their inflated sense of self-importance, fail to recognize their limitations. They are resistant to feedback, dismissive of dissenting opinions, and unwilling to acknowledge their mistakes. This creates a culture of stagnation, where innovation is stifled, and the organization as a whole suffers. The Power of Humility: The Counterintuitive Key to Authentic Confidence Now, let's shift our focus to the "Best Leaders" we identified in our research. These individuals, while assertive and driven, also possess a profound sense of humility. They understand that true strength lies not in pretending to have all the answers, but in fostering a culture of collaboration and continuous learning. This is the heart of the confidence paradox: true self-assurance is often found hand-in-hand with humility. Humility, in this context, is not about self-deprecation or a lack of ambition. It's about recognizing that you are not infallible, that you can learn from others, and that your success is often dependent on the contributions of your team. Humility allows these leaders to: Make more informed decisions: They are not afraid to seek out diverse perspectives, challenge their own assumptions, and admit when they are wrong. This leads to more thoughtful, well-rounded decision-making that considers the needs and perspectives of all stakeholders. Inspire trust and loyalty: Their authenticity and willingness to be vulnerable create a safe space for open communication and honest feedback. This fosters a culture of trust and mutual respect, where team members feel comfortable sharing their ideas and concerns. Foster innovation: They encourage experimentation and risk-taking, recognizing that failure is an essential part of the learning process. This creates a dynamic environment where creativity flourishes and new ideas are welcomed. Navigate challenges with resilience: They view setbacks as opportunities for growth, inspiring their teams to persevere through adversity. Their ability to remain calm and focused in the face of challenges instills confidence in their team and helps them navigate turbulent times with grace and determination. Confidence as a Journey: Cultivating the Inner Strength to Lead The good news is that you don't have to be born with unwavering self-belief. Confidence is not a fixed trait; it's a dynamic quality that can be cultivated and strengthened over time. It's a journey of self-discovery, a continuous process of self-reflection, learning, and growth. This journey involves: Embracing challenges: Stepping outside your comfort zone, taking on new responsibilities, and pushing yourself to learn and grow. Learning from mistakes: Viewing setbacks as opportunities for learning and development, rather than as personal failures. Seeking feedback: Actively soliciting feedback from others, even if it's critical, and using it to identify areas for improvement. Practicing self-compassion: Treating yourself with kindness and understanding, recognizing that everyone makes mistakes, and that perfection is an unattainable goal. The Impact of Genuine Confidence on Leadership Effectiveness Genuine self-confidence permeates every aspect of leadership, influencing decision-making, inspiring others, fostering resilience, and enhancing emotional intelligence. Confident leaders are decisive, even in the face of uncertainty. They trust their intuition, weigh the available information, and make timely choices with clarity and conviction. They understand that indecision can be paralyzing, and that taking calculated risks is often necessary to achieve progress. This decisiveness, however, is not born from recklessness or a disregard for potential consequences. Rather, it stems from a deep understanding of their capabilities and a willingness to take ownership of their decisions. Moreover, confidence has a profound impact on a leader's ability to inspire and motivate others. Confident leaders exude a sense of optimism and possibility, creating a positive and encouraging environment where individuals feel valued and empowered. They articulate a compelling vision, communicate their expectations clearly, and inspire their teams to strive for excellence. Their passion and conviction are contagious, fostering a sense of shared purpose and motivating individuals to contribute their best efforts. Furthermore, genuine confidence is closely intertwined with emotional intelligence. Confident leaders are not only self-aware but also possess a deep understanding of the emotions and perspectives of others. They are skilled at building rapport, resolving conflict, and fostering collaboration. They recognize that emotions play a crucial role in the workplace and leverage their emotional intelligence to create a positive and productive environment where individuals feel supported and understood. Learning from the Greats: Case Studies in Confident Leadership History and the contemporary world offer a plethora of examples that illustrate the power of genuine self-confidence in leadership. Nelson Mandela, with his unwavering belief in justice and equality, inspired millions to fight for a better future, even after decades of imprisonment. His leadership, characterized by courage, compassion, and an unwavering commitment to his values, serves as a testament to the transformative power of genuine self-confidence. In contrast, history is also replete with examples of leaders whose arrogance, narcissism, or hubris ultimately led to their downfall. Leaders who surround themselves with yes-men, refuse to acknowledge their mistakes, and prioritize their self-interest over their people's needs often create a toxic environment that breeds resentment, stifles innovation, and ultimately leads to failure. By studying both positive and negative examples, we can gain a deeper understanding of the nuances of genuine confidence and its critical role in effective leadership. Analyzing the traits, behaviors, and decision-making styles of successful leaders can provide valuable insights for aspiring and current leaders alike. Equally important is the examination of cases where leaders succumbed to arrogance or hubris, allowing us to identify red flags and learn from the mistakes of others. Ready to Rewrite Your Leadership Playbook? If you're an executive, founder, investor, or HR professional ready to ditch the outdated "fake it till you make it" mentality and embrace a more authentic, impactful leadership style, I can help. My leadership coaching programs are designed to help you: Develop genuine self-confidence : Uncover your strengths, acknowledge your limitations, and cultivate the inner strength to lead with authenticity. Build high-performing teams: Foster a culture of trust, collaboration, and innovation where every individual feels valued and empowered. Navigate challenges with resilience : Develop the mental fortitude to overcome setbacks and emerge stronger than ever. Achieve extraordinary results : Unlock your full leadership potential and drive your organization to new heights of success. Let's challenge the conventional wisdom together. Let's redefine what it means to be a truly confident leader.
