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I've found that, in most cases, managers greatly underestimate the impact that a comment or quick gesture of approval has on employees. They'll spend weeks trying to tweak an annual bonus program or some other compensation system, believing that their employees are coin-operated, but they'll neglect to stop someone during a meeting and say, "Hey, that's a fantastic example of hunger. We should all try to be more like that." I'm not saying that compensation doesn't matter. But if we want to create a culture of humility, hunger, and smarts, the best way to do it is to constantly be catching people exhibiting those virtues and publicly holding them up as examples. No balloons, pastries, or plastic tchotchkes are necessary, just genuine, in-the-moment appreciation.

As it turns out, the primary motive for most young people, and too many older ones, is the rewards that leadership brings with it. Things like notoriety, status, and power. But people who are motivated by these things won't embrace the demands of leadership when they see little or no connection between doing their duties and receiving those rewards.

In spite of its undeniable power, so many leaders struggle to embrace organizational health (which I'll be defining shortly) because they quietly believe they are too sophisticated, too busy, or too analytical to bother with it. In other words, they think it's beneath them.

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company needs to be able to articulate exactly what it does, whom it serves, and against whom it competes. Why? Because all employees should be made to feel like salespeople or ambassadors for the firm, and they cannot do this without a fundamental understanding of an organization's business. More important, without this understanding, employees cannot connect their individual roles to the overall direction of the larger organization.