Authentic leadership: the key to thriving teams and healthier organizations

Why authenticity and compassion are a leader’s new superpower

What makes great leaders? Is it their values and ethics? Credibility and transparency? Or does it all come down to technical skill? As it turns out, what makes leaders stand out in today’s landscape goes beyond credentials—it’s about authentic leadership, a concept transforming management best practices across the board.

What is authentic leadership?

With social media and user-generated content on the rise, more people have come to expect authentic experiences as the norm. Whether at home, school, work, or in the brand messaging they consume, they gravitate toward things or individuals that seem “real” and trustworthy. In fact, when it comes to the workplace, 75% of employees actually crave greater authenticity from colleagues, according to the Harvard Business Review survey.

So, what does it mean to be an authentic leader? Former CEO Bill George was among the first to popularize the concept and quite literally wrote the book on it. George defines authentic leaders as self-actualized individuals who know who they are and how to lead, while staying true to themselves. These types of leaders play to their strengths—and are self-aware enough to adjust their leadership style to their limitations.

5 key traits of authentic leaders

According to George’s theory, five core attributes characterize authentic leadership:

• Purpose: Who are you, and what do you want to achieve? Authentic leaders are driven by a clear sense of purpose and well-defined priorities, which often translate into performance excellence, innovation, and organizational change. 

• Values and behavior: Authentic leaders don’t just have strong values; their decision-making and actions consistently reflect their moral and ethical code. This helps to build trust within groups and organizations.  

• Relationships and connectedness: These leaders also know how to make real connections by listening to their teams, providing honest feedback, and making everyone feel involved. A Gallup study found that engaged teams are 18% more productive.

• Self-discipline and consistency: Authentic leaders also set the tone for their organization through self-discipline. In professional or academic contexts, this could mean seeing projects through to the end, managing and confidently overcoming setbacks, and marching consistently toward common goals.  

• Compassion: Do you lead with heart? Authentic leaders are compassionate because they understand the importance of sensitivity to others’ needs and well-being. As it turns out, small acts of kindness create positive, high-performance cultures.

Authenticity, compassion, and well-being

Studies have shown that joining compassionate organizations leads to lower stress levels and higher job satisfaction. It also makes teams more resilient to the daily stresses of work, study, and life in general.

Additionally, compassion boosts teamwork and cooperation. Strong social or emotional bonds make people more likely to help each other and collaborate to complete tasks faster. They also contribute to a culture of trust and reciprocity.

Other organization-wide benefits of authentic leadership include:

• Reduced anxiety

• Employee retention

• Healthier interpersonal relationships

• More loyalty and commitment to work

• Greater diversity and inclusion

• Higher customer satisfaction 

In this way, authentic, compassionate leaders also become effective leaders who can inspire teams, create impact, and help organizations grow. They also cultivate cultures that encourage health and well-being, ensuring long-term success for both individuals and groups.

So, how can you become more compassionate and empathetic? Here are some ideas, backed by science:

1. Start small—even 40 seconds of compassion can have a measurable effect on anxiety.

2. Maintain a grateful attitude to identify opportunities to serve others easier and faster.

3. Create a safe space for people with diverse perspectives and worldviews.

4. Identify and publicly recognize “goodness” in organizations, inspiring others to do the same.

Authentic leadership in practice

There are several ways to become an authentic leader and show compassion in organizational contexts. Here are a few practical steps:

• Encourage open, deliberate communication to nurture meaningful connections and a sense of belonging.

• Practice active listening without interruptions or judgment.

• Remain genuine and straightforward, especially when critiquing performance or providing feedback. Embracing honesty even in uncomfortable situations is key to effective leadership.

• At the same time, ask for input and be open to criticism. See this as an opportunity to learn something about yourself, close a skill or knowledge gap, and grow.

• Lead by example and let your behavior show that you can meet the same standards you expect from your team.

• Be vulnerable and let the team see your human side from time to time. This simple trick will enhance trust and camaraderie.

• Place greater emphasis on well-being and champion initiatives that put people first.

Lead with integrity

As landscapes shift, organizations need a new type of leader to navigate the fast-paced, increasingly people-centric future. Authentic leaders stand out, not just because they foster high-performance environments, but also because they ensure equity, inclusion, and high team morale. It only takes one visionary to inspire positive change—and authentic leaders provide the right spark.