What an Ancient Chinese Text Taught Me About Leadership

Lately I’ve been studying a book called Tao Te Ching. It was (allegedly) written 2,500 years ago by a man named (again, allegedly) Lao Tzu. One particular passage caught my eye the other day.

In part it reads…

When the Master governs, the people

are hardly aware that he exists.

Next best is a leader who is loved.

Next, one who is feared.

The worst is one who is despised.

I had to read this passage a few times before I got what he was driving at. Intuitively I think we all believe that the leader who is loved would be the best leader we could have. But, Lao Tzu is saying that that leader is the second best.

We’ve probably all had leaders we’ve feared and leaders we have despised. It goes without saying that these are the ones we like the least, give the least, and move on from the fastest when possible. They are also the ones we respect the least. We won’t spend any time here on these types of leaders. It is the first type of leader Lao Tzu describes that is worth our time.

The best leader is the one whose people are hardly aware that he even exists. He doesn’t really even have to lead them. He sets the conditions for the work to be done, gives them the tools and resources they need to do that work, and then gets out of their way. He doesn’t micromanage, he doesn’t meddle, he doesn’t constantly demand that they do it the way he would do it.

He hires competent people to do a job, puts the systems and parameters in place to make those jobs work the way they should work, and then GETS OUT OF THE WAY.

Then the second part of the passage says…

If you don’t trust the people,

you make them untrustworthy.

A more direct interpretation of this passage says that when you don’t trust people you don’t command their trust in you. Trust is earned through reciprocation. If someone trusts you, you are more likely to trust them. It is human nature.

At Katuva we will occasionally have clients ask if we can install time or screen tracking software on our VAs’ computers. We always decline. Think about what kind of message that sends. Whenever I ask the client if they would like a time tracker installed on their computer they immediately backtrack and offer lame excuses about “productivity” and “accountability.” All nonsense. All that does is breed distrust. Distrust from you will be reciprocated.

This doesn’t mean you blindly trust everyone. Trust has to be earned, just like everything else. Someone learning a new skill may need guidance. Someone who acts irresponsibly may need boundaries. Someone who repeatedly acts irresponsibly may need let go. But, those responses should arise from the reality of the situation, not from a general assumption that people can’t be trusted.

The final part of the passage reads…

The Master doesn’t talk, he acts.

When his work is done,

the people say, “Amazing:

we did it, all by ourselves!”

There’s something to be said about a leader who will roll up her sleeves and go to work in the trenches with her people. No one is more respected than a leader who gets her hands dirty.

Even more respected is the leader who doesn’t take all the credit when things go well. “Amazing: we did it, all by ourselves!” is something every leader with a healthy ego should be proud to hear their team proclaim.

This is a leader who has provided guidance without domination. Created order without excessive control. Offered support without creating dependency. And accomplished something meaningful without demanding recognition.

His people don’t feel that something was done to them or even for them. They feel that they did it themselves.

And that makes all the difference.

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I believe that underneath this lesson on leading and managing people runs something much deeper about what it means to be human.

Lao Tzu is challenging our attachment to being important. Consider how much of human behavior is motivated by the desire to be recognized. We want to be appreciated for our contributions. We want people to know how hard we've worked. We want our families, employees, and communities to acknowledge the difference we've made.

These desires are understandable.

But they can quietly influence our behavior. We may continue offering advice long after it is needed. We may insert ourselves into decisions others are capable of making. We may resist delegating responsibility because doing so would make us feel less essential. We may even unconsciously create dependency because being needed reinforces our sense of identity.

This is where Lao Tzu's teaching becomes uncomfortable.

What if our desire to be helpful sometimes gets in the way of others becoming capable?

What if our desire to lead sometimes prevents others from discovering their own direction?

What if our desire to be recognized for our contributions diminishes the very people we intend to serve? The Daoist sage does not seek to establish an identity as a great leader.

The sage simply responds to what is needed.

If leadership is required, they lead.

If guidance is required, they guide.

If stepping aside is appropriate, they step aside.

They are not attached to any particular role.

The wise leader serves the natural development of others rather than using others to reinforce their own importance. This is the true nature of what it means to be a leader. To be human.