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Lead by Example: How Great Leaders Transform Organizations

Writer: John TannerJohn Tanner

Updated: Feb 21

Leadership isn’t just about setting the direction—it’s about being the direction.

John C. Maxwell says it best: “A leader is one who knows the way, goes the way, and shows the way.” If we expect integrity, accountability, and innovation from our teams, we must live those values ourselves. Employees don’t just listen to what leaders say—they watch what they do. A leader who embodies the organization’s vision and mission builds credibility, fosters trust, and inspires action.

But what does this look like in practice?

How Alan Mulally Transformed Ford

In 2006, Ford Motor Company was struggling. The company was on the brink of collapse, losing billions of dollars, and suffering from a toxic internal culture. Then came Alan Mulally, the former Boeing executive who stepped in as CEO.

Mulally didn’t just issue commands—he led by example. He created a simple but powerful vision: “One Ford.” He focused on transparency, accountability, and teamwork, insisting that leaders openly share challenges instead of hiding problems.

At one of his first executive meetings, leaders were hesitant to admit any failures. When a brave executive finally revealed a problem, instead of reacting with criticism, Mulally applauded the honesty. That small moment set the tone for a cultural shift. Over time, Ford’s leadership team embraced collaboration and problem-solving instead of blame and fear.

Mulally also embodied resilience and optimism. He took decisive action to restructure the company without taking a government bailout, and by 2009, Ford returned to profitability—while competitors still struggled. His leadership not only saved Ford but set the company up for long-term success.

Why Leading by Example Matters

Mulally’s story reinforces a powerful truth: culture is shaped at the top.

  • When leaders prioritize transparency, teams communicate openly.

  • When leaders demonstrate accountability, teams take ownership of their work.

  • When leaders put the mission first, the entire organization moves forward with purpose.

As Simon Sinek reminds us, “Leadership is not about being in charge. It is about taking care of those in your charge.”That care starts with leading by example. It’s not about demanding excellence—it’s about demonstrating it.

Final Thought

The best leaders don’t just tell people where to go; they show them how to get there. Whether you’re leading a Fortune 500 company, a small business, or a growing team, the principle remains the same: your actions shape the culture, and your culture determines success.


What’s one way you’ve seen leadership by example make a difference? Let’s discuss.👇


 
 
 

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