What Is "Inside-Out" Leadership?

What Is Inside-Out Leadership?

Have you ever worked for a boss or CEO who took a "do as I say, not as I do" approach to leadership? If so, perhaps the simplest definition of inside-out leadership would be to describe it as the total opposite of that!

Leading from the inside-out is, fundamentally, to lead oneselfbefore attempting to lead others. It's about being more self-aware and authentic and so becoming the model to which others can aspire. As renowned business consultant and author Tom Peters said, "Great leaders do not create followers, they create more leaders."[1]

In this article, we’ll explore the origins and details of inside-out leadership, learn how to be an inside-out leader integrate it in a way complements your own leadership skills and goals, and navigate the pros and cons of this leadership style.

Where Does Inside-Out Leadership Come From?

Leading from the inside-out may be a new name to people, but it's not a new concept. It can be traced back through history and across societies. Today, even the philosopher and Roman emperor, Marcus Aurelius, would be considered an inside-out leader, given his reputation for governing with integrity, wisdom and self-control.[2]

Other historical figures such as Nelson Mandela and Mahatma Gandhi also embodied inside-out leadership, placing their values on compassion, forgiveness, patience, and nonviolence.

But inside-out leadership is not limited to political or social movements. Howard Schultz, former CEO of Starbucks, is said to have led with his personal values of fairness, respect and responsibility, creating a company culture that emphasized ethical business practices, employee welfare and community engagement.[3]

This "new" form of leadership can be found in the success stories of enterprises and organizations of all shapes, sizes going back many years.

The term itself was introduced in 1989 by Stephen Covey in his book, The 7 Habits of Highly Effective People. He said, “the 'Inside-Out' approach [...] means to start first with self; even more fundamentally, to start with the most inside part of self – with your paradigms, your character, and your motives.”

Exploring the "Inside Part of Self"

Developing leadership skills is a core requirement of anyone who facilitates growth or change, whether that's industrial, political or social. But whatever the leadership arena, inside-out leadership is about much more than the superficial action of doing.

For example, take a common organizational challenge, such as improving employee engagement or time management. Most organizations would look at what a manager or leader could do to affect the change they wish to see. This might include measures such as mandatory timesheets or frequent feedback forms.

But this creates a more “top-down” leadership approach, which could backfire if those in power are not seen to be following the same principles or behaviors they demand of others. It could lead to mistrust and resentment, as team members believe that it's “one rule for us, another rule for them.”

Inside-out leadership, by contrast, sees those in power acting in alignment with the principles and expectations they set for others.

Moving toward this leadership style is actually quite simple. It begins by asking yourself, "What sort of leader would I like to be?" and taking a moment to consider all the traits you admire in those you respect. The more complicated part comes in applying them.

How to Develop Inside-Out Leadership

The cornerstone trait of the inside-out leader is self-awareness. In researching their 2024 book, 'The Journey of Leadership: How CEOs Learn to Lead From the Inside Out,' four senior partners at global consultancy firm, McKinsey & Co, discovered that, “Sooner or later, every leader encounters a moment when they realize that success has as much to do with leading themselves as it does with leading others.

“At that crucial moment, they switch from the traditional leader they thought they should be to one who adopts a human leadership approach. They start learning and growing to meet the demands of their position and to fulfill their boldest aspirations for their organization, their teams, and themselves.”[4]

There are several strategies that you can adopt to be a more self-aware, inside-out leader. These include:

• Knowing your personal strengths and weaknesses. When you understand how your personality compares with the personalities of other people, you can discover what motivates you, and how you relate to the world.
• Understanding the impact you have on others. Pay attention to how you think, how you communicate and make decisions, and how you connect with other people. A great way to do this is by journaling, where you write down your intentions for the day or reflect on your day before going to sleep. This helps you think about what does and doesn't work for you, and helps you be more aware of your impact on other people.
• Working with a coach or mentor. They can ask reflective questions, prompting you to think things through more deeply. Think about, “Am I acting like the leader I would like to be?”
• Being accountable. Inside-out leadership emphasizes taking responsibility for one's actions and decisions, understanding that leadership involves personal integrity and accountability.

The Pros and Cons of Inside-Out Leadership

As with any leadership approach, leading from the inside out has both benefits and challenges. First, let’s look at the positives.

Benefits of Inside-Out Leadership

• Adopting an inside-out approach can inspire others to connect with their own "inner leader." This can build self-confidence, humility and resilience: all admirable traits in an inspiring or aspiring leader.
• Leaders earn more trust and engagement from their teams and employees when they are seen to be genuine and consistent in their values and behaviors.
• Leaders who've cultivated internal skills such as resilience and self-awareness can better navigate uncertainty and change.
• More thoughtful and self-reflective leaders can improve decision making, as they can balance short-term pressures and long-term strategies.

Challenges of Inside-Out Leadership

There's a lot to recommend Inside-Out leadership, but it’s not without its drawbacks:

There is the potential for conflict with peers or other stakeholders. It is one thing to self-aware and stick to personal values, but they might not always align with other people’s priorities or values.

It’s a time-consuming process. It takes considerable effort and time to complete the self-reflection and personal growth require to be an inside-out leader. That can be a challenge in high-pressure or fast-moving business landscapes.

It can be uncomfortable and lead to emotional vulnerability. Chances are, that what got you into a leadership position were traditional, “hard-nosed” qualities such as high levels of self-confidence, assertiveness and staying in control. It can be difficult to then be more open, accountable, approachable and empathetic.

Frequently Asked Questions:

Why is inside-out leadership important in today's world? In a rapidly changing world with complex geopolitics and technological advancements, leaders need to be adaptable and human-centric. Inside-out leadership promotes trust and resilience, and helps leaders connect authentically with their teams.

How does inside-out leadership impact decision-making? It encourages leaders to make decisions based on their core values and principles. This approach leads to more consistent and ethical decision-making, as leaders are guided by a strong sense of purpose and integrity.

Can inside-out leadership be applied in all types of organizations? Yes, it can be applied in various types of organizations, from startups to large corporations, and even non-profits. The principles of self-awareness, authenticity, and personal growth are universally beneficial.