The Risks of Reward-Centered Leadership
Focusing on collective success rather than personal rewards leads to better outcomes for leaders and their organizations.
“It is amazing what you can accomplish if you do not care who gets the credit.” – Harry S. Truman
The pursuit of personal rewards such as recognition, power, or financial gain can often lead to short-sighted decisions that ultimately hurt your business. Reward-centered leadership not only stunts growth, but can also erode trust and morale among team members.
Take the example of Enron's leadership, where executive decisions were heavily influenced by personal financial gains. This focus on personal reward led to unethical business practices and decisions that prioritized immediate financial benefits over the company’s long-term welfare, culminating in one of the biggest corporate collapses in history. The Enron scandal serves as a stark reminder of how leadership driven by self-interest and reward-seeking can lead to disastrous outcomes.
When leaders prioritize their personal gains, they may overlook the broader impacts of their decisions on the company and its stakeholders. Effective leaders should aim to make decisions that are sustainable and beneficial for the entire organization, not just those that offer personal advantages.
Leaders who are driven by serving their team and organization, rather than their personal desires, often achieve more meaningful and lasting success. They build a legacy of integrity and trust that not only benefits the business, but also inspires and motivates their team.
Action Step: Assess your leadership style and motivations. Are your decisions influenced by personal gains or by what is best for your team and organization? Make a conscious effort to shift your focus towards decisions that benefit the whole, rather than just the individual.
Remember, leadership should be about contributing to something bigger than yourself. Focusing on collective goals and success can help prevent the pitfalls of reward-centered leadership and lead to a more fulfilling career and healthier organizational culture.
To learn more about cultivating a selfless leadership style that focuses on collective success, be sure to check out our book of the week: “The Motive” by Patrick Lencioni.