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Small Business ShowsLessons In LeadershipBuild successful teams through the power of consequences

Build successful teams through the power of consequences

The most skillful and effective leaders don’t shy away from holding their teams accountable. One of the most impactful ways to do so is by enforcing consequences when performance, behavior, or expectations aren’t met. On today’s episode of Lessons in Leadership, Dave Anderson, author of Elevate Your Excellence, breaks down the transformative power of consequences and why they are essential for building a successful team.

"What you tolerate will continue. What you permit will persist. What you permit, you promote." – Dave Anderson

In today’s modern workplace, many leaders hesitate to enforce consequences or deliver candid feedback, often out of fear of offending someone. However, accountability is a fundamental part of effective leadership. Leaders must develop the skill to navigate these difficult conversations to ensure their teams perform at their best.

As Anderson pointed out in the previous episode, candid feedback itself is a consequence. Oftentimes, it’s enough to correct an issue.

For example, if someone starts showing up to work late regularly, what’s likely to happen? Without intervention, they’ll continue coming in late until someone addresses it. The first step is provide direct, honest feedback and set an expectation. If the problem persists, leaders must escalate the consequences to reinforce expectations.

The power of consequences lies in their ability to spark change. In order to shift an individual’s behavior, the consequence must be adjusted.

Some of the most common consequences include:

  • Formal performance improvement plans (PIP)
  • Demotion
  • Loss of promotion opportunities
  • Negative performance evaluations
  • Termination

The consequences create accountability and give employees the opportunity to self-correct and improve.

Anderson emphasizes that any bad habits or behavior left unaddressed will persist. By failing to act, leaders inadvertently encourage them. While most leaders don’t see themselves as reinforcing poor performance, the absence of a consequence does just that.

To build strong, high-performing teams, leaders must stand firm, enforce accountability, and implement consequences when necessary to foster a culture of excellence.


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Jasmine Daniel
Jasmine Daniel
Jasmine Daniel is a staff writer and reporter for ASBN. She holds a BFA in Writing from the Savannah College of Art & Design and has over eight years of experience in SEO, digital marketing, and strategic communication. Her storytelling skills bring critical business news to life, delivering timely, impactful stories that inform and inspire small business owners and entrepreneurs.

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