Leadership Leverage. What Is It? How Can It Help?

by Bill Caskey on November 2, 2008

So what do you think of the word leverage? I know you know what it is, but I want to give you a slightly different perspective on it. Before I do, let’s all be clear about the definition:

Leverage–the small change in input that creates a large change in output.

“Leverage” is sort of a bad word today because it brings to mind the negative of stock market collapses, hedge funds, and mortgage meltdowns.

Leverage is All Good All Day.

But leverage is like money; it is neither bad nor good. It is totally neutral.

So here’s how it works.  You have a team that is responsible for results. Those results are a function of effort, efficiency, and OK (a little luck). But lets’ go back to the effort part.

Your people ask their people to put forth the effort to get the required results. But what if you get in the way? What if you, through your behavior/actions, create wasted effort? Don’t think you do? Here’s a list you can check out.

  1. Tedious communication. You drone on and on.
  2. Arrogance in style. It’s only your ideas that will work everyone else should save their breath
  3. Never listen. You talk incessantly, always selling, always controlling
  4. Never encourage. You’re too worried about your own ego to have time to inspire another.
  5. Control freak. You are in charge…and you’ll make sure people know it.

I just name these because these are some of the distracting behavior that gets in the way for many leaders. Change these a little and you exercise enormous leverage on results. Ignore these and … well, you know what changes: Nothing.

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