Mastering Leadership: The Key Traits for Success in 2025 – Insights from Shopify

Children start developing language skills when they’re around 12 months old. They learn by imitating—kids observe their parents and caretakers and often repeat phrases that they hear around the house. If you were shaping a young child’s vocabulary, you might choose to adjust your tone by sticking to kid-friendly language; leaving The Sopranos playing nonstop might result in a two-year-old picking up some colorful phrases.

Modifying your language around children is a way of leading by example. By using certain words, you’re modeling the behavior you’d like to see. This practice makes it easy for kids to understand your values and expectations. Business leaders can use a similar approach to model good communication and teamwork for their employees.

Leading by example helps founders set standards and establish a trusting culture. Learn about the benefits of leading by example and discover the key elements of this approach.

What does it mean to lead by example?

To lead by example is to model the behavior you expect from your employees. Leaders set the company tone. They’re responsible for determining company values, developing corporate policies, and making high-level business decisions. To lead by example, leaders hold themselves to the same standards they expect from their staff. This involves making ethical, values-based decisions, treating employees with respect, and following office protocols.

As a leader, your actions speak as loudly as your words. If the values you display in your daily life align with your stated principles, it will show your team you have integrity. For example, if a founder sent an email explaining that they want to reduce distractions by instituting a “no pets in the office policy,” they could lead by example by refraining from bringing their 16-foot ball python into work. Setting the right example will inspire employees to act similarly.

Why lead by example?

• It builds trust
• It fosters a positive work culture
• It sets expectations
• It encourages accountability

Leading by example can have a positive impact on every level of an organization. See how setting a good example can inspire employees, bolster corporate culture, and support your bottom line:

It builds trust

When words and actions align, leaders appear honest and principled. Holding yourself to the same standard as your employees can build trust by showing the team your values are genuine. It proves you don’t consider yourself above the rules. In an office with a shared water cooler, a leader who follows the protocol of replacing the water jug after dispensing the last cup of water would show employees they believe in their policies and are committed to doing the right thing.

It fosters a positive work culture

Leadership has a strong impact on corporate culture. When leaders are responsive, respectful, and engaged, it boosts employee morale and helps create a positive environment. A strong corporate culture also helps encourage employee engagement.

This will also support your bottom line. A strong culture can lead to higher productivity and reduced employee turnover. Employees are more likely to become disengaged or start looking for a new job if they’re in a toxic work environment.

It sets expectations

Demonstrating working standards sets a benchmark for employee performance. As a leader, showing your commitment to your work by putting in the effort may be more effective than asking employees to work hard. Leaders can set expectations by sharing transparent updates, responding to communications, and following through on their own tasks.

The leader of a book club, for example, could set a strong example by completing the required reading before each meeting and showing up with prepared discussion questions. This would set the tone for the club and help other members understand they can reliably expect to engage in a thoughtful and thorough conversation. The same goes for a manager leading weekly check-in meetings.

It encourages accountability

When leaders model accountability, employees are more likely to follow suit. Leaders practice accountability by holding their own work to a high standard and taking action to address missteps. A culture of accountability helps your team achieve high-quality results. When employees see they won’t be punished for revising their work, they’re more likely to call out potential concerns and work toward a good solution.

Characteristics of founders who lead by example

• Integrity
• Work ethic
• Respect
• Trust
• Humility

Leading by example goes beyond good decision-making and other high-level leadership decisions—it addresses a founder’s actions and working style. Here are some key traits any successful leader relies on to lead by example:

Integrity

Leading by example means leading with integrity. Founders demonstrate integrity by acting in accordance with their values while working and making company decisions. This behavior helps underscore company values and set expectations. A strong set of company principles provides a consistent decision-making framework for all team members.

Work ethic

If you want to lead by example, you have to put in the work. An engaged leader who attends meetings and takes an interest in projects shows employees that hard work is the norm. Absentee leadership makes employees feel like no one cares about their work, which can easily lead to decreased productivity and higher turnover.

Respect

Leaders demonstrate empathy and respect through good communication and constructive conflict resolution. This involves treating employees with kindness and using professional language in both written and verbal communications. Setting this example at the highest level will inspire team managers to practice respect while working with their subordinates. When leaders are condescending or volatile, it creates a culture of fear and toxicity.

Trust

Effective leaders place trust in employees. They set a strong example, provide clear expectations, and take a step back to allow teams to complete projects without micromanaging. Giving employees space to complete their work communicates that you believe in their judgment and skills. A trusting culture promotes efficient work and bolsters employee engagement. Micromanaging, on the other hand, can result in bottlenecks and reduced creativity.

Humility

When leaders accept feedback and own their mistakes, it shows employees that vulnerability is acceptable. This helps employees feel more comfortable taking risks and voicing their concerns. Listening to and acting on constructive criticism demonstrates that you’re working to improve as a leader. When leaders are inflexible and unapproachable, team members may feel less comfortable bringing up new ideas.

How leading by example compares to other leadership styles

Leading by example is a management style you can combine with a variety of approaches to leadership. In a bureaucratic management system, for example, leaders could set an example for adhering to company protocols and following the rules. A transformational leader could model behavior by questioning the status quo—this might inspire employees to follow suit and identify opportunities for innovation.

These are some common leadership styles that could be compatible with leading by example:

• Bureaucratic. Bureaucratic leadership uses a clear, hierarchical management structure and standardized rules or protocols. Bureaucratic leaders make team decisions and enforce rules.

• Democratic. Democratic leadership uses a collaborative decision-making process and places heavy emphasis on employee opinions. Democratic leaders organize teams by providing support and encouragement.

• Transformational. Transformational leaders are charismatic visionaries. Transformational leadership strives to inspire employees and motivate change.

• Organizational. Organizational leadership focuses on team-building and mentorship. Organizational leaders nurture employees and work to establish strong team practices.