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Leadership: Those who eat last demonstrate the power of servant leadership

Leadership: Those who eat last demonstrate the power of servant leadership

  • 26.03.2025 01:06
  • businessday.ng
  • Keywords: Leadership, Servant Leadership, Trust, Selflessness, Employee Motivation, Market Value, Innovation, Financial Performance, Leadership Culture, Employee Growth, Customer Relationships

Leaders who prioritise their teams over themselves embody servant leadership, fostering trust and resilience in organisations. Examples like Satya Nadella at Microsoft and Jacinda Ardern during the COVID-19 pandemic show how selfless leaders build strong cultures and drive success by putting others first.

Microsoft NewsMSFTsentiment_satisfiedCOSTsentiment_satisfied

Estimated market influence

Microsoft

Microsoft

Positivesentiment_satisfied
Analyst rating: Strong buy

Satya Nadella transformed Microsoft's culture by embracing servant leadership, leading to increased employee motivation, better customer relationships, and improved financial performance. The company's market value tripled, and new products like Azure and Microsoft Teams were developed.

Chobani

Positivesentiment_satisfied
Analyst rating: N/A

Hamdi Ulukaya offered employees 10% of the company’s shares, demonstrating servant leadership. This led to Chobani weathering industry competition and experiencing rapid growth, becoming a leading yogurt brand in the US.

Costco

Costco

Positivesentiment_satisfied
Analyst rating: Buy

James Sinegal prioritized employee wages and benefits, resulting in low turnover rates and saving millions in training costs while maintaining exceptional customer service.

SecureID Limited

Positivesentiment_satisfied
Analyst rating: N/A

Oluwole Dada is the General Manager at SecureID Limited, Africa’s largest smart card manufacturing plant in Lagos, Nigeria.

Context

Analysis of Servant Leadership: Business Insights and Market Implications

Servant Leadership Definition

  • Servant leadership is a philosophy where leaders prioritize team members over their own interests.
  • It emphasizes selflessness, legacy-building, and putting others first.

Business Impact and Case Studies

Microsoft (Satya Nadella)

  • Year: 2014
  • Context: Company was struggling with internal competition and declining innovation.
  • Leadership Approach:
    • Redirected resources to support employees during layoffs.
    • Shifted culture from "know-it-all" to "learn-it-all."
    • Reduced personal bonus to prioritize employee growth, customers, and partners.
  • Outcomes:
    • Market value tripled.
    • Development of new products: Azure, Dynamics 365, and Microsoft Teams.
    • Improved financial performance and innovation.

New Zealand Government (Jacinda Ardern)

  • Year: COVID-19 pandemic
  • Action: Took a 20% pay cut for six months to show solidarity with citizens.
  • Outcomes:
    • Reinforced commitment to collective wellbeing.
    • Demonstrated empathy during the Christchurch terrorist attack.

Chobani (Hamdi Ulukaya)

  • Year: 2016
  • Action: Gave employees 10% of company shares.
  • Rationale: Success depends on collective contribution.
  • Outcomes:
    • Weathered industry competition.
    • Rapid growth made Chobani a leading yogurt brand in the US.

Costco (James Sinegal)

  • Year: Ongoing
  • Action: Maintained salary of $350,000, prioritizing employee wages and benefits.
  • Outcomes:
    • Low turnover rate: saves millions in training costs.
    • Exceptional customer service due to employee loyalty.

Competitive Dynamics

  • Servant leadership fosters trust, innovation, and resilience.
  • Companies with servant leaders outperform competitors by retaining talent and building strong cultures.
  • Example: Costco’s focus on wages and benefits creates a loyal workforce, reducing theft and turnover.

Long-Term Effects

  • Resilient Organizations: Servant leadership builds organizations capable of thriving under external threats.
  • Employee Morale: Prioritizing employees enhances motivation and engagement.
  • Innovation: servant leaders create environments where creativity flourishes.

Regulatory and Market Implications

  • While not directly tied to regulations, servant leadership aligns with market trends toward ethical and sustainable business practices.
  • Companies embracing servant leadership gain a competitive edge in attracting talent and customers.

Conclusion: The principle of “leaders eat last” is a powerful driver of organizational success. By prioritizing employees, fostering innovation, and building resilient cultures, servant leaders create long-term value for their organizations and stakeholders.