By Carson Bruhn – Forbes

At its core, authentic leadership is an approach to leadership that is centered on building the leader’s legitimacy through honest team relationships based on an ethical foundation. Today, more than ever, this approach is not only crucial for overall morale, but it is also good for business.

Given the current circumstances of the pandemic and global economy, the way we work has evolved. What this means for leaders is that we must remember what powers our team: our people. To be successful long-term, we must put them first and empower them to do their best work in our current state of “normal” and beyond.

Physical work boundaries are falling away, making way for diversity, which opens up new ideas. New ideas are good for both business and morale.

Inspire Purpose

Why? Because individuals are inspired by purpose. Expressing to your teams that you recognize, understand, and value their purpose can go a long way in helping to improve states of well-being. This offers a sense of “one team in business together” and inspires new levels of trust. People tend to want to do business and work with people they trust.

For leaders, it is crucial to remember that when people feel seen and understood, they’re often ready to take action. That action can be in the form of increased productivity or even making a purchase. Regardless of the what, the why remains unchanged, and the why is driven by trust and a sense of purpose. Authentic leadership inspires these things, particularly in business.

Authenticity Is Equally Good For Business And Morale

During the pandemic, businesses have become the most trusted institution, ahead of government, media, and nongovernmental organizations, according to the 2021 Edelman Trust Barometer. This provides business leaders with an opportunity to remind team members, customers, and partners why their team is the one for them. Today, especially, that level of authenticity goes beyond a sale; it appreciates diverse cultures and embraces inclusive ideas to build greater trust.

Vernā Myers says it best: “Diversity is being invited to the party. Inclusion is being asked to dance.” Leaders who lead from the back and foster a culture of inclusivity can encourage colleagues — regardless of backgrounds, personal beliefs or job titles — to view every experience as a learning opportunity. The job is the invitation; the genuine encouragement is the dance.

The way I see it, the hunger for knowledge, the courage to demonstrate compassion and the ability to be vulnerable help leaders prove their authenticity. This is often demonstrated by a diverse leadership team, and those teams are often more profitable. McKinsey’s “Delivering Through Diversity” report found that companies with an ethnically diverse executive team were “33% more likely to have industry-leading profitability.”

Productivity Follows Authentic Leadership

Embracing an authentic leadership style requires embracing a new mindset. For example, failure can be an option when encouraging new ideas because it forces a learning opportunity. That may be counterintuitive to more traditional leadership beliefs. Yet there still may be fear from team members who feel the risk of failure is a negative and are, therefore, unwilling to try. This mindset must be overcome.

Sparking new ideas can increase excitement and inspire productivity. In my work, I’ve found that people who embrace their authenticity tend to be more productive than those who are inauthentic.

Transparency And Vulnerability Are Leadership Assets

Generally speaking, people are encouraged by leaders who show that they, too, are human. Encouraging authenticity from your team sometimes requires reminding them that making mistakes is human. We all make mistakes, and leaders shouldn’t shy away from their own but use them as examples for growth. This is not to be confused with encouraging mistakes; instead, it demonstrates that vulnerability is not a flaw. For leaders, being vulnerable can be a great strength, not a weakness. It’s a demonstration of humility and even teamwork. Let others learn from you the way you want to learn from them.

We often read of leaders who emphasize the importance of empathy and compassion. This approach is proven by the likes of Microsoft and others to be equally as good for business and research and development (R&D) as it is for team morale. Vulnerable and transparent approaches can lead to greater trust from colleagues and customers alike. In fact, colleagues who trust their leaders find a heightened sense of advocacy, loyalty, and engagement — thus aiding in productivity.

Taking an authentic approach to leadership is not for everyone. Authentic leaders stand out from the pack for reasons beyond revenue growth and stock prices. Having an authentic leadership style also requires self-reflection and adjustment.

When evaluating your level of authenticity, ask yourself these questions:

• Do you inspire new opinions? Or even (constructive) disagreements? Why or why not?

• Do you ask for feedback? And from whom? Consider asking for feedback from colleagues who aren’t your direct reports. Expand your horizons to seek broader, honest opinions.

• Do you periodically self-reflect? After a new launch, we evaluate our key performance indicators (KPIs); should we not hold ourselves to KPIs as well? Regular reassessments can prove helpful and will keep us honest.

• Do you trust your gut (subscription required)? Your instincts are based on your learnings. Trust that and recognize it as not a “spur of the moment” decision but one based on intuition and experience.

Authentic business leaders are often known to seek constant growth through their own experiences, lead by example, recognize diversity, and foster inclusion. In my experience, those who dare to be authentic have the courage to be vulnerable, embrace authenticity, build successful teams and deliver strong business results.