Leaders establish principles concerning the way people (constituents, peers, colleagues, and customers alike) should be treated and the way goals should be pursued. They create standards of excellence and then set an example for others to follow. Because the prospect of complex change can overwhelm people and stifle action, they set interim goals so that people can achieve small wins as they work toward larger objectives. They unravel bureaucracy when it impedes action; they put up signposts when people are unsure of where to go or how to get there; and they create opportunities for victory.

Leaders envision the future by imagining exciting and ennobling possibilities, and they enlist others in a common vision by appealing to shared aspirations. While this aspect of being a leader is often the most difficult, inspiring a shared vision is the practice that also differentiates leaders from other credible people. A leader needs to learn to mobilize others to want to struggle with him or her to achieve a compelling, shared vision.

Leaders search for opportunities by seizing the initiative and looking outward for innovative ways to improve, and they experiment and take risks by constantly generating small wins and learning from mistakes. Challenging the process is essential for the growth of any business or organization. The work of the leader to affect this change is to find opportunities by seizing the initiative and by looking outward for ways to improve. A leader must be willing to take risks by constantly generating small wins and learning from experience.

Leaders foster collaboration by building trust and facilitating relationships, and they strengthen others by increasing self-determination and developing competence. Leaders ensure that other people develop their capabilities and grow. In order to generate mutual respect, leaders foster collaboration by building trust and facilitating relationships, which in turn creates a sense of reciprocity. Leaders must also learn to strengthen others by increasing self-determination and developing competence. This will create confident and competent team members.

Leaders recognize contributions by showing appreciation for individual excellence, and they celebrate values and victories by creating a spirit of community. By expecting the best out of others, leaders create self-fulfilling prophecies about how ordinary people can produce extraordinary results. A crucial component of a winning team is a team whose members share in the results of their efforts; this can be done by the celebration of values and victories within a team.