Humility as a Competitive Advantage

In a previous article, I argued that high-performing leaders are humble. That sounds counterintuitive, you might be saying. Aren’t effective leaders supposed to be charismatic narcissists? In this article, I will show some evidence supporting the notion that humble leaders are more effective in the long-run that non-humble ones, and that humility can even be a huge competitive advantage for the organization.

The introduction of humility into leadership studies can be credited to Jim Collins and his well-known management book Good to Great. Collins and his team identified 11 companies that made the transition from good to great financial performance. The researchers set out to identify the common characteristics among these companies, and what differentiated them from comparison companies in the same industry who failed to make similar transitions. Of the many principles identified by Collins, “Level 5 Leadership” is the one that stands out the most.

All eleven companies that transformed from good to great performance were headed by Level 5 Leaders. Collins and his team “were surprised, really shocked, to discover the type of leadership required for turning a good company into a great one.” He notes: “Compared to high-profile leaders with big personalities, who make headlines and become celebrities, the good-to-great leaders seem to have come from Mars. Self-effacing, quiet, reserved and even shy- these leaders are a paradoxical blend of personal humility and professional will.”

These findings provided empirical evidence to what many have suspected for a long time: humility, ambition and high performance were related to each other. However, what was missing from Collins’ analyses is an explanation of how humility and performance are actually connected. Recent research is starting to clarify that connection. One way that leader humility can affect outcomes is through employee engagement and satisfaction. In a study of a large mid-western health services organization, several hundred employees were asked to rate the humility of their immediate supervisor. They were also asked to assess their own job engagement and satisfaction. Participants who viewed their leaders to be more humble were more likely to report being happy at work and less likely to voluntarily leave the organization. “In contrast to ‘rousing’ employees through charismatic, energetic, and idealistic leadership approaches [..], our study suggests a “quieter” leadership approach, with listening, being transparent about limitations, and appreciating follower strengths and contributions as effective ways to engage employees” remarked the authors. In the current competitive labor market, organizations are competing to attract and retain talent, and many high-performers are leaving their jobs because they don’t feel like their boss listens to them or recognizes their potential. Humility, then, could be a valuable tool for attracting and retaining talented employees.

Another way that leader humility works is by creating a culture of shared unpretentiousness that enables the team to grow and reach its full potential. In another study of health services teams, employees examined their leader’s humility in terms of whether she is willing to learn from others, whether she admits it when he doesn’t not know something, and whether she compliments others on their strengths. Teams that perceived their leaders to be better on these behaviors had higher collective humility, team growth and performance. These findings provide empirical evidence to the old adage that “leaders should lead by example.” It turns out that when leaders behave humbly, employees emulate their humble behaviors, thus creating collective humility. This enables the team to achieve its potential, which ultimately enhances performance.

The notion that humble leaders can help create an organization-wide culture of humility has also been endorsed by research. The humility of the CEO, of other executives, and of employees, can result in an emphasis on cultures, systems, procedures, and structures aimed at developing organizational humility. This type of shared humility allows an openness to new paradigms, eagerness to learn from others, acknowledgement of limitations and mistakes, and more realistic understanding of the organization and its environment. Management researchers Dusya Vera and Antonio Rodriguez-Lopez argued that organizational humility is the “cornerstone of organizational learning, high-quality service to customers and employees, and organizational resilience.” Therefore, humility doesn’t just lead to everyone feeling good about themselves- it can be a significant advantage for the organization in relation to its competitors.

The last study linking leader humility to performance that I will discuss comes to us from Chinese private companies. More than 60 CEOs were interviewed and data was gathered from over one thousand top management team members and middle managers. The qualities of a humble CEO included self-awareness, openness to feedback, appreciation of others, low self-focus and appreciation of the greater good. Humble leaders were more able to empower their top and middle managers to collaborate, share information, make joint decisions, and develop a shared vision. Through their humility, CEOs won acceptance from their followers by appealing to collective interests and downplaying strong ego dominance.

Putting it All Together

The research strongly suggests that humbitious leaders (i.e., those that combine humility and ambition) achieve more success for themselves, their teams and their organizations, than arrogant ones. Leader humility, when combined with strength and ambition, has a clear positive effect across all levels and can represent a long-term competitive advantage for the organization.

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Dr. Amer Kaissi is a Professional Speaker, Executive Coach and an expert on Leadership, Humility & Ambition, Assuming Positive Intent, Psychological Safety & Accountability, Growth Mindsets & Resilience.