What is Leadership Capital?

Anthony Soltero -

How do you get people to do what you want them to do?

Influence them.

How do you influence them?

Cash in.

Cash in on what?

Leadership capital.

The definition of leadership capital

Leadership capital is:

The good will and influence you accrue when you perform at a high level, help others accomplish their goals, and fully support the team.

Every interaction you have with someone builds or subtracts from your leadership capital. You can think of it as a bank account. Some behaviors are deposits, some behaviors are withdrawals.

You build leadership capital when you do right by others. You spend it by asking people to do something for you.

You should always be building leadership capital.

How to build leadership capital

There are infinite ways to build leadership capital.

All you have to do is help people.

  • Do what others ask you to do.
  • Brainstorm with your peers.
  • Delegate decision making.
  • Support your boss's plan.
  • Don't push-back often.
  • Do the grunt work.
  • Pick up the slack.
  • Don't complain.
  • Be humble.

Every time you help team in a significant way, you make deposits.

Leadership capital is built with EVERY interaction you have with another person.

Every interaction is an opportunity to strategize your approach, strengthen your relationship, and build connection with the other person. Don't let any interaction go to waste.

Once you've accumulated enough capital, you can spend it (wisely).

How to spend leadership capital

You spend leadership capital when you ask someone to do something for you.

Ideally, you've built up enough leadership capital with that person that they are willing to help you. If it's difficult to get people to do what you want, you haven't built up enough capital. It's time to go back to the drawing board and figure out how you can help them.

Once you spend some leadership capital, it's time to focus on re-building it.

Action

Choose one person you want to build leadership capital with and strategize for your next interaction with them.

In this interaction:

  • Don't ask them for anything. Even if there's something you need from them, see if you can do it yourself.
  • Listen to their problems. Don't interrupt or offer your opinions, unless they ask. Repeat your interpretation back to them so solidify your understanding.
  • Identify a problem you can solve for them. This can come from an insight you have while listening or something they explicitly ask for.
  • Solve their problem. Help them to the best of your ability without commenting on the effort or asking for something in return.

Repeat this indefinitely and you'll always have capital to spare.

Make sure you're never in a deficit.

Leadership capital is the currency of influence.