The very act of leadership is one whereby leaders are expected to lead by example, but nonetheless, it’s rare for leaders to actually show how things should be done to their teams.  Research from the University of Pennsylvania suggests that leaders may actually be missing a trick by not showing the way.

“By observing how their leader performs and the outcomes the leader achieves, employees receive a clearer signal about what is expected of them and how they can better meet those required outputs, thus increasing productivity,” the researchers say.

The researchers note that this style of hands-on leadership differs from charismatic leadership that uses verbal dexterity to portray an attractive vision of the future.  This is far more practical and hands-on.

Moving beyond micromanaging

Of course, the researchers aren’t advocating micromanagement or doing the work for employees, but rather ensuring that leading by example is a regular part of one’s workweek.

“It should take no more than 5% to 10% of the manager’s time, and it needs to be consistent for it to be effective,” the researchers say.

They tested their theory across 233 retail stores in Israel.  The managers in the stores had significant autonomy regarding how they lead employees and the performance expected from them.  The company also usually promoted from within, so most managers had direct experience on the shop floor before their managerial post.

The employees in the stores were asked to rate their managers on how they led by example on a scale of 1 to 7.  This data was then supplemented with interviews.

Working side by side

The results suggest that employees were responding positively to managers who were willing and able to work side by side with them.  They would share their pride in their store and their desire to put extra effort into their work.

The researchers also tested out the performance of each store by using secret shoppers to monitor the behavior of employees.  These reports were compared with the financial data from each store.

The analysis revealed that stores with managers who led by example scored half a point higher on customer service (on a 10-point scale), and were 4% more productive than in stores with managers who weren’t so hands-on.

“When managers exhibit leadership by performing employee activities, these ideal behaviors and actions become substantial learning tools about expected norms and undesired actions for employees operating in similar situations. Employees thus infer appropriate behaviors and performance expectations. By observing how their leader performs and the outcomes the leader achieves, employees receive a clearer signal about what is expected of them and how they can better meet those required outputs, thus increasing productivity,” the researchers explain.