Show of Strength: Why Servant Leaders Succeed in Business

Some old-school bosses might consider “servant leader” an oxymoron because the phrase conjures contradictory images of submissiveness and power. To these command-and-control executives, being in charge requires muscle flexing and an iron fist. How does servitude fit into the picture?

Despite the term’s incongruity, substantial research and case studies show that servant leadership is not only a viable way to run a business but also frequently results in more success. Servant leaders build resilient organizations with engaged and productive teams by shifting their focus from being in power to empowering others.

What is Servant Leadership?

Although servant leadership is at the core of many religions, it wasn’t until Robert Greenleaf connected it to business that people began to consider it a way to run a company. The retired AT&T executive and management researcher originated the term and corresponding theory in the 1970s, and his writings influenced new generations of thought leaders and executives disillusioned with top-down tactics.

The sole goal of traditional leaders is to drive company success. They lead in a way they believe will increase productivity, performance, and profits but often do so without considering how their methods can negatively impact employees. Ultimately, the toll on staff could undermine the organization’s future.

Greenleaf’s corporate leadership style involves prioritizing employees’ needs, aspirations, and interests as a more sustainable way to succeed. He wrote: “The purpose of servant leadership is to serve others to be what they are capable of becoming.” In doing so, they develop strong, capable team members who generate positive outcomes and are primed to take the organization forward.

EDA Contractors CEO Edward DeAngelis crystalizes the concept in an article for Forbes:

“Servant leadership breaks down corporate silos and builds in their place organizational goals, collaborative growth, and development attitudes. It leads to the true representation of a workforce led by greatness: a positive culture.”

Servant leaders integrate and elevate the importance of communication, compassion, and collaboration in the workplace. They put their employees first but also set a tone requiring accountability and respect for all.

Traits of a Servant Leader

Marcel Schwantes is an author, speaker, and executive coach who writes about servant leadership in an article for Inc. He notes that the most exceptional executives “create results by shifting the focus away from themselves and continually recognizing the contributions of others.”

In his twenty years of working with CEOs, Schwantes identified seven characteristics of those who were most successful.

• They give others a voice.
• They acknowledge their shortcomings.
• They ask for feedback.
• They give their people credit.
• They are authentic.
• They are curious leaders.
• They build a culture of trust and safety.

These leaders’ competitive advantage is that they “achieve results, but not at the expense of people.”

In an article for Forbes, leadership expert Rachel Wells quotes a study outlined in Sage Journals that found “a significant and positive association between servant leadership and performance levels, high levels of engagement and productivity, and loyalty to the leader and organization.”

While these characteristics have always helped businesses succeed, they are even more critical in today’s choppy hiring and retention environment. Wells notes that employees are navigating careers in an era rife with disruption, including blanket layoffs, AI, DEI issues, and new job mandates. These issues “are upheaving employees’ identity, confidence, and trust in their employers.”

Wells offers another list of servant leadership traits that are particularly meaningful in today’s workplace.

1. Empathy
   Effective servant leaders possess several specific behaviors that heighten their empathy and understanding of others. They are careful listeners who don’t just hear others out but also are willing to see things from their perspective. They welcome diverse points of view and accept and recognize team members’ opinions and contributions. They are also compassionate and assume positive intent on behalf of their team members.
   
   
2. Humility
   Being humble doesn’t mean a lack of self-confidence or ambition. Humble leaders embody quiet strength and a healthy ego that doesn’t require them to constantly be in the spotlight or take credit for organizational triumphs. They are fulfilled by empowering their people, recognizing their achievements, building community, and guiding a robust team.
   
   
3. Selflessness
   Many business leaders had to make tough decisions about their companies during the pandemic, including activating furloughs and conducting layoffs. Those who demonstrated selflessness and stewardship amidst the turmoil, such as taking pay cuts or trimming their perks, showed they were willing to make sacrifices for the group’s good. While COVID created an extreme example, leaders who prioritize their staff’s interests over their own in all circumstances build trust and loyalty.
   
   
4. Vision
   Having a people-first mindset includes having foresight and dreaming big so the organization prospers for everyone’s sake. Successful servant leaders have a firm grasp on their company’s mission and vision, with a strategy to propel it forward. They must also be able to inspire and motivate their team to realize these aspirations. Helping employees to understand their role in reaching organizational goals generates engagement.
   
   
5. Empowerment
   Servant leaders provide their team members with opportunities to expand their expertise and grow professionally. They cultivate a learning culture by offering educational tools like mentoring programs, advanced courses, and in-house training sessions. By fortifying their workers, they help them further their careers and become more capable of rendering team success. And according to Gallup, investment in employee development significantly increases profitability and retention.

Edward DeAngelis notes that servant leadership requires emotional intelligence and the ability to create a psychologically safe workplace. While he uses Fortune 500 companies recognized for their employee focus as examples, he points out that the philosophy works for leaders with businesses of any size. “It’s about, in small and big ways, bringing a profound impact to an organizational culture by celebrating its most influential component: people.”

The Rewards of Servant Leadership

Unlike the controlling or hands-off tactics used in some leadership styles, servant leaders gain authority and influence by supporting and serving workers. Research showing servant leaders tend to outperform their authoritarian counterparts can reassure those wondering if having an employee focus limits success.

Other resources supply more evidence that a people-focused approach is profitable. For example, Jim Collins conducted a comprehensive leadership study for his book Good to Great that revealed that a humble but firm servant leader was the common denominator of the greatest companies.

In Return on Character, Fred Kiel cites a body of research concluding that servant leaders spur more innovation and generate a five times greater return on assets. Additionally, many of the companies named to Fortune Magazine’s yearly list of “The 100 Best Companies to Work For” claim to have servant leadership as the basis for their corporate culture.

Matt Tenney, author of Inspire Greatness: How to Motivate Employees with a Simple, Repeatable, Scalable Process summarized the benefits of servant leadership in a Business Leadership Today article.

“The benefits of servant leadership are higher levels of trust, a positive work environment, improved collaborative efforts, and sustainable growth and success. These benefits help organizations improve productivity, performance, and profits while supporting the growth and well-being of employees.”

Every leader is gratified when their business is successful. Servant leaders gain the additional reward of creating an environment that brings out the best in their employees and improves their work experience.

On a personal level, putting their people first also helps leaders derive more satisfaction, meaning, and purpose from their work. As Winston Churchill famously said: “We make a living by what we get. We make a life by what we give.”