Home Articles The CEO Effect: How Strong Leadership Positively Impacts Company Culture

The CEO Effect: How Strong Leadership Positively Impacts Company Culture


A term in the business world encompasses the idea that strong leadership fosters strong leaders. This so-called CEO effect implies an important truth: a company is nothing without great leaders at the forefront. 

Still, businesses must never forget it takes a village to run a successful company. Strong leaders can encourage their workers to be productive and fulfilled in this way. 

Truly successful CEOs and founders positively impact their company’s culture by creating outcomes in their workplaces and amongst their teams. Keep reading to discover how strong leadership has a beneficial result in a company’s success.

It Models Achiever Behavior

A strong leader positively impacts the company’s culture by modeling the behavior of a motivated individual who doesn’t quit. CEOs often have compelling stories about the struggles they’ve had to surpass and the closed doors they’ve had to open to get to the high position they hold. 

“One quality that can be seen in all great leaders is the go-getter mentality,” says Kelly Owens, Owner and CEO of Marleylilly which specializes in personalized tote bags. “There is no taking no for an answer when trying to raise oneself to a position of power, but the process isn’t easy. CEOs and other leaders are examples of success stories because they took creative routes, worked incredibly hard, and didn’t stop until they made it. Now they can be mentors for everyone working a similar grind.”

Strong leadership shows employees what the result of hard work can achieve. Through an ethical CEO’s mere presence, they model the efficacy of achiever behavior. 

It Promotes Great Workplace Communication

Open communication is the key to success in numerous areas of life, especially those with high stakes, like the making or breaking of a business. Nothing damages an otherwise healthy company like closed-off communication, as Michael Baghoomian, CEO of Muscle MX addresses:

“Offices where everyone keeps their head down and holds their thoughts and feelings inside are not pleasant nor thriving spaces. Plus, the company at large won’t find any true success if they don’t create a space where communication can flow. Strong leaders inspire honesty and openness by fostering upfront communication between all departments. This brings unity because communication flows amongst all divisions of employees.”

There’s also another key part of healthy communication: listening. Good leaders contribute to notable workplace communication by emphasizing speaking and listening. 

Leaders Take Charge and Inspire Productivity

For a company to be successful, it takes all hands on deck. Everyone from the top leaders like the CEO and CFO to the customer service team to the more “behind the scenes” data and tech employees must contribute their skills for the business to run effectively. All workers must stay inspired to bring their best to each task. 

“How can leaders inspire productivity? They model the value of hard work through their own take-charge mentality, and leaders show each department and individual that they’re valued team members. Leaders boost productivity when they encourage their workers, show appreciation for them, and remind them of the greater mission they all share,” says Ubaldo Perez, CEO of Hush Anesthetics.

These actions make employees feel content in their positions. Employees feel respected when they’re thanked for their work and not simply expected to contribute. In the end, praise and positivity motivate further strong efforts.

It Encourages Active Listening

CEOs and founders can encourage strong listening skills amongst their employees by showing this themselves. Sometimes an open-door policy does the trick, but there will be a healthy company culture if workers know they have a safe space to bring their concerns and complaints. Maegan Griffin, Founder, CEO and nurse practitioner at Skin Pharm speaks to this:

“Everyone at a company needs to actively listen to each other to maintain a harmonious atmosphere. Employees should never underestimate the power of being heard!”

Not only is active listening with teammates at the office important, but this will also pour over into listening to the consumer: what do they want from their brands? What are their concerns? The results of listening can be immensely beneficial. 

It Leads to Healthy Workplace Relationships

Large companies and corporations may struggle more than small businesses and start-ups to foster workplace relationships across all divisions due to the sheer number of employees. However, companies of all sizes must have thriving relationships between workers regardless of their field, seniority, hours, or location. 

“Nothing feels worse, as an employee who is showing up each day and working hard than feeling undervalued in a seemingly ‘lesser’ role than those at the top hold,” says Monte Deere, CEO of Kizik. “Breaking down the walls and barriers between company divisions, perceived or actual, will create a healthier workplace. Management can do this through team-fostering activities, collaborative tasks, open communication across departments, and a reminder of the shared vision.”

Leaders are people who connect with everyone in their company-wide team and break down hierarchies amongst positions. This requires a level of fairness and discernment as they encourage a synergetic mindset. 

It Promotes Employee Work Fulfillment 

It’s no secret that fulfilled employees are happier and more fruitful in their positions. Josh Weiss, Founder and CEO of Reggie points out that there are widespread effects of fulfilled labor that benefit the whole office: 

“When employees are fulfilled in their roles, they create better work and contribute more to the office culture in their individual assignments, communication, and team efforts.”

Leaders can inspire workers to put their best foot forward no matter their role by modeling satisfaction in their positions’ ins and outs and ups and downs.  

Leaders Strive for Personal and Professional Growth

People often forget that more than just professional growth goes into the making of a leader. Truly effective leaders must be assured and wise people, regardless of their work life. Constant growth is part of human existence, so one can’t experience achievement at work if they aren’t also working towards becoming a more developed person. 

“For CEOs and other heads of a company to have made it to their seniority, they’ve had to work on their personal and professional growth,” explains Trina Johnson, CEO of Blue Forest Farms. “A person who isn’t driven, self-aware, emotionally intelligent, or mindful of their strengths and weaknesses simply doesn’t have what it takes to be in charge. These things can be acquired through time and growth but are necessary for leaders to succeed.”

When they bring this mixture of personal and professional assurance, CEOs represent a holistic picture of success. They inspire well-rounded growth in their employees by reminding them of the value of development over artificial accomplishment.

It Promotes Healthy Work-Life Balance

There’s more to life than work, which strong leaders will remind their teams. By setting a personal example of how one can be successful while keeping a healthy balance of work and life, leaders can aid in their workers’ mental health surrounding work. 

“There are a number of ways that leaders can encourage work-life balance in their employees, from reduced day workweeks, arranging out-of-work activities and family events, highlighting employees’ personal growth and passions, and modeling their own balanced behavior,” advises Sara Aalshamsi, Founder and CEO of Big Heart Toys

The more employees see work-life balance modeled in the leaders at their company, the more they understand the necessity of finding personal equilibrium. 

It Encourages a Mentality of Positivity

Positivity in the workplace leads to better work ethics, stronger decision-making, an energized approach to work, and happier employees. Jin Young Woo, CEO of Like Dreams discusses how positivity has a personal and shared outcome.

“Those who approach the work day positively will feel more fulfilled during and after completing their tasks and will spread good feelings around their co-workers. Positivity is more than just showing up to work in a good mood sometimes — one can intentionally strive for a positive mentality through deliberate thinking and healthy actions.”

Positivity doesn’t have a solo effect; the person consciously pursuing positive thinking will experience the benefits in their life, but they’ll also inspire others. There’s no downside to positivity or a limit on the amount that can be spread, which makes it so valuable.

It Reduces Procrastination

Procrastination can be a success killer because of the way it causes workers to be unproductive during their hours, as well as uninspired. As Derek Flanzraich, Founder and CEO of Ness says, procrastination’s overall effect hinders company growth.

“When workers procrastinate at their jobs, their time is essentially wasted, which means the company loses money. On top of this, procrastination doesn’t positively affect workers’ mental health. Excessive company procrastination always leads to a stagnant or failing business.”

Thankfully, leaders who model productivity and healthy coping mechanisms for dealing with those times when procrastination strikes can turn the situation around and save their business from flailing.

Leaders Make a Huge Difference 

Having strong leaders at the forefront of a company has widespread positive effects. Leaders model imitable behaviors and traits surrounding productivity, communication, growth, and team efforts, which is why strong leadership always has a positive pull on company culture.