Why Positive Leadership Outperforms Fear-Based Management
"Nothing in life is to be feared. It is only to be understood." — Marie Curie
What motivates you more, fear or positivity? The answer might surprise you. I recently watched an interesting video by Daniel Pink, bestselling author of Drive, To Sell Is Human, and The Power of Regret. In it, he explains how fear and positivity play distinct roles in how we think and act. Fear can sharpen focus and spur quick action when time is critical, like getting out of a burning building. But it also comes at a cost, narrowing our perspective and stifling creativity.
Positivity, on the other hand, opens the door to possibility. It encourages curiosity, collaboration, and innovative thinking, all qualities that make teams and organizations expand and grow. The real challenge for leaders isn’t choosing between fear or positivity but knowing how and when to use them effectively. Let’s explore how these emotions shape our mindset and the impact they can have on fostering growth, innovation, and resilience in retail leadership.
Fear-based motivation
While fear can be a powerful motivator in the short-term, it can also have negative consequences. Constant reliance on fear-based motivation can lead to anxiety, stress, and a lack of intrinsic motivation. It's important to find a balance between using fear as a motivator and cultivating intrinsic motivation, such as a sense of purpose, passion, and enjoyment in what you do.
In Pink’s video, perhaps the best example of fear-based motivation is in emergencies. As he states, if you need to get out of a burning building, there is not a lot of time to debate ideas or think of new things. The situation is urgent, and you need to get yourself out as quickly as possible. That becomes your sole focus. That use of fear is built into us as humans, as the fight or flight mechanism in high gear. ‘Flee the danger, get out of the burning building. Fast.’
Forms of fear
The idea of fear can take on many forms. Direct threats, especially to one’s job stability, are common (unfortunately). But there are additional approaches that are used.
Fear of failure — being told that failure is not an option and that getting it right every time is a requirement. If that is your mindset, how often do you think you would try something new that could end badly? Rarely, if ever. Right? Once you have a process or formula that keeps you out of trouble you’re going to stick with that. Managing through fear of failure is a recipe for no innovation, a robot-like work approach, and staying off the radar as much as possible.
Fear of the unknown — “I don’t know what will happen if we don’t get this project done. It is really important, and could mean bad things if we fall short.” This creates multiple levels of uncertainty. Is this a threat to start corrective action? A threat to my job? A threat to my team? The unknown creates tremendous levels of fear and stress.
Fear of loss — believing you may lose privileges, or opportunity, or even money is another form of negative motivation. “I’ve trusted you before to get things done, this is a critical task and I want to be able to trust you in the future…” Or, a statement like, “I am not sure how this will impact my ability to promote you in the future if we fall short on this project.” Both of those examples lead to losing something that would be important to you.
These forms share a similar theme, but there are nuances to each that can make them feel distinctly different. The result, however, is the same. You can create fear to motivate someone to act a certain way. The challenge is: what behaviors are these really creating? Do you think you will inspire innovative thinking using this type of approach?
Pink also uses another example of what he describes as effective fear-based motivation in the video:
We must close three additional sales by the end of the month, or we’ll go out of business.
I am not a fan of true fear-based motivation, full stop. I do think providing a wholly transparent outlook and impact can be used effectively. My bigger concern is considering fear-based management in a positive light in any way. There is a distinction there, but managing that line requires advanced leadership skills to ensure your team understands the difference. Consider the line that is crossed between the transparent statement, “we will run out of cash to pay our bills at the end of the month if we do not close these three sales in the next two weeks,” and the threat contained in, “you’ll all be out of work by the end of the month if these sales don’t get completed in the next two weeks.”
In a retail store or even at the district level, it would be unusual to have such dire consequences in a short period of time. But the example can serve its purpose. Helping a Store Manager understand that if the profit and loss statement doesn’t show a positive improvement to making money by the end of the year, the store will likely close is a more likely example. Done well and with the right mindset, this can be an effective, transparent approach to helping a leader understand both the current situation and consequences of inaction. Following that statement up by saying, “let’s start talking about what we can do to prevent that from happening,” immediately transitions from pure fear and concern to something we can act on. Layering on confidence that a difference can be made, and that the leader is capable of doing so, now opens the door for expanded possibilities. This illustrates how fear and positive support can work together to find a solution, versus creating an environment purely of concern.
Expansion through positive support
We have seen that fear can narrow our focus and limit our thinking. Positivity has the opposite effect. It opens doors. Positive emotions like happiness, gratitude, and hope encourage creativity, curiosity, and collaboration. When we approach situations with a positive or growth mindset, we’re more likely to see possibilities, connect with others, and generate innovative solutions. Positivity doesn’t just make us feel good in the moment; it also builds lasting skills, strengthens relationships, and enhances resilience. By fostering a sense of purpose, appreciation, and optimism, we can unlock broader perspectives and drive meaningful growth in ourselves and our teams.
“Positivity opens us. Negative emotions keep us stuck and rigid.” — Barbara Fredrickson
Foster a culture of positivity
Positivity comes in many forms and creates highly beneficial outcomes. Happiness and joy can assist in building creativity and problem-solving skills. Gratitude can strengthen social connections with the team and others. Hope can fuel perseverance during challenges. Positive emotions create a feedback loop, where experiencing positivity leads to more positive experiences, improving overall well-being and productivity.
Author Jon Gordon works almost exclusively on building positive workplaces. Some of his known works are: The Energy Bus: 10 Rules to Fuel Your Life, Work, and Team with Positive Energy and The Power of Positive Leadership: How and Why Positive Leaders Transform Teams and Organizations and Change the World. In both of these, he shows the power of creating positive environments for teams to thrive in. Something I really enjoy about his work is how he can show this working across any type of environment. Jon works a lot with sports teams, and highlights the power of positive reinforcement in an area that is probably better known for demanding and driven coaches. Many of the teams he has worked with have won the championships of their sport based on creating a positive environment (The Clemson Tigers and LA Rams are a couple of examples).
By encouraging positivity, leaders can develop environments where employees feel valued and inspired, creating a culture of innovation and collaboration.
Positivity fuels performance
Building a team around being positive has healing effects as well. You can break old paradigms of negative reinforcement through consistency in how you approach feedback and coaching. Using more positive reinforcement and recognition can erase the lingering aspects of always having to work in fear of your standing or your job. This shift improves both the mental and physical health of your team. I think it is safe to say that feeling mentally and physically strong is a prerequisite to performing at your best. It will take time, though.
I have encountered this personally. I was assigned to lead a team that had mediocre results. Most of the people on the team were new to me, so there was not a lot of established trust. They were clearly living in an environment where ‘perform or else’ was the general mandate. Most people on the team did what they needed to do to stay out of trouble, but not much else. And, as the external environment changed, they were not equipped to keep up with those shifts. Performance was going in the wrong direction.
We moved from primarily transactional conversations to developmental discussions. I made it about them and their success. We recognized the small things that could make bigger differences. People began to recognize that they could try new things and not be in trouble. We were not living our lives hour by hour or day to day anymore. We were looking forward and supporting our teams differently. I stayed consistent with this message. At first, the team almost seemed to mistrust this approach more than the fear they were previously experiencing. But the consistency made a difference. Soon, they became believers and understood they would be supported and appreciated for what they did. It took several months, but this team ended up moving from the bottom of the pack to the company leaders. I credit the positivity culture that we created at all levels for that success.
Auto-innovation
Wouldn’t you love to have new ideas getting generated by your team, almost like it is automated? You can. Build an environment centered around positivity, and you will find that new ideas are always available. It also ensures that your team will be able to solve many of their own problems without your involvement. That is a true mark of effective leadership. You can help build resilience in your team by highlighting gratitude and sharing hope, especially in difficult times. This can support your team as they navigate challenges and remain engaged to get to a positive outcome.
As part of this, their creativity and problem-solving skills are enhanced. This stimulates broader thinking, more sharing among each other, and enables teams to find solutions to adapt to changes around them.
Store level leaders can be so innovative in finding answers when necessary. In environments where they are supported and positivity is the leading characteristic, those solutions will flow freely and will be implemented, often without even knowing it has happened. The opposite happens when fear is a leading emotion. Those managers stop, ask for permission, or seek answers instead of taking action. Those delays negatively impact the customer, the team, and the business results.
Creating positivity
You can begin or enhance your environment of positivity with a few quick steps.
Practice gratitude and recognition. Being thankful for what you have or who you have in your life is an excellent place to start thinking positively. You will find that you are happier and that will spread to others. And, speaking of spreading happiness, share recognition as much as you can. From Ken Blanchard’s very beginning, the One-Minute Manager taught us to “catch people doing things right.” That may be one of the easiest ways to begin establishing a place of positive thinking. Recognition makes everyone feel good.
Be kind. Look for small acts of kindness you can complete for others. A simple smile may be all it takes to brighten someone’s day and reinforce a positive environment. I have always enjoyed the look on other people’s faces when I give them a big (sometimes goofy) grin as I walk by. Of course, there are other ways to be kind to people: listening, asking about their family, engaging in a discussion about their hobbies are all natural ways to engage, connect, and be kind.
Celebrate. Much like recognition, stopping and celebrating individual and group wins is an excellent way to reinforce the idea that good things are happening all around us, all the time. Shout those out, call attention to them, and make it fun. And, to really make your point, celebrate the win that comes from learning when something didn’t quite go to plan. Reinforcing the effort, the ‘try’ is often as important as the winning outcome, especially in the early stages of building your positive work environment.
Those just scratch the surface, but they can assist in getting you started on moving past a fear-driven workplace and fostering one rooted in positive emotions.
Build your foundation of positivity
As leaders, we have the ability to shape the environments our teams work in. While fear may spark immediate action, positivity fosters creativity, collaboration, and lasting success. The path to a positive work environment begins with intentional effort and consistency. By prioritizing gratitude, recognition, kindness, and celebration, you can build a culture where people feel empowered to innovate, grow, and contribute their best. A positive approach strengthens trust, deepens connections, and helps create a workplace where both individuals and the organization can excel.
What will you do today to create an atmosphere where your team feels valued, motivated, and ready to perform at their best?
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