Spend It Wisely: The Currency of Leadership Capital
There’s a currency in leadership that no one really talks about in the beginning. It’s not budgetary. It’s not political. But it’s just as real—and just as finite. It’s leadership capital. And if you’re not intentional about how you spend it, you might find yourself out of it when you need it the most.
Leadership capital is the influence you build over time. It’s earned through trust, follow-through, steady presence, and a willingness to do the hard work alongside your team. When used wisely, it creates momentum, fuels culture, and carries people through change. But when it’s wasted—on battles that don’t matter, on ego, on control—it slips away quietly. And when the truly important moment comes? You’re left with nothing in the tank.
In Extreme Ownership, Jocko Willink says:
“It’s not what you preach, it’s what you tolerate.”
That line has always stayed with me. Because it reminds us that leadership isn’t just about the big speeches or bold vision—it’s about the day-to-day choices. The small things we let slide, or the small things we make too big. It’s in the tone we set, the grace we give, and the standards we protect.
But the truth is, leaders don’t always get it right. And sometimes, the cost of that shows up only in hindsight.
When Leadership Lacks Direction
Earlier in my career, I worked under a leader who didn’t provide any real vision or direction. There were no clear expectations, no stated priorities—just an open lane and a vague sense that we should “keep things going.” So I did what a lot of motivated people do: I ran with it. I poured myself into building something meaningful. I created a program from scratch, built a team, and grew it into something I was genuinely proud of.
But over time, I began to sense something was off. The more successful the program became, the more disconnected I felt from the leadership above me. Eventually, I realized the hardest truth of that season: my vision didn’t match theirs. And because there had never been shared direction to begin with, I had unknowingly built something that didn’t align. That realization was frustrating—and honestly, a little heartbreaking.
That experience taught me something I’ll never forget: silence at the top isn’t freedom—it’s just uncertainty in disguise. If leaders don’t define the “why” and the “where,” people will fill in the blanks themselves. And when that happens, even well-intentioned success can become misalignment.
The Balance: Accountability and Flexibility
Great leadership isn’t about control—it’s about discernment. It requires holding people to standards, yes—but also knowing when to be flexible. It’s about understanding the difference between what’s urgent and what’s important. There’s a sweet spot between accountability and empathy, between pushing for excellence and allowing space to grow.
The best leaders I’ve worked with—and the kind I strive to be—don’t make every issue a fire drill. They don’t tighten the screws every chance they get. They know when to step in, and when to step back. They understand that leadership capital isn’t just earned in hard conversations—it’s also earned in quiet moments of trust.
When you hold people accountable to things that truly matter—shared values, respectful behavior, clear goals—you gain influence. But when you nitpick or control for the sake of comfort, you slowly erode that trust. And you may not realize it’s gone until you truly need it.
So Where Should You Spend It?
Through my own growth, mistakes, and seasons of trial and reflection, I’ve come to believe there are three places where leadership capital is best spent:
The well-being of your team. Advocate for your people. Make time for their growth, their rest, their real lives. When they know you care about their success and their stress levels, you earn something deeper than compliance—you earn commitment.
Strategic focus. Use your influence to keep your team aligned with purpose. When distractions creep in or politics take over, that’s the moment to step in. A grounded leader keeps everyone connected to the bigger picture.
Protecting the culture. This is where leadership often costs the most—but also pays off the most. When someone toxic is dragging the team down—no matter how talented—they have to go. It’s never easy. But when your team sees you protect the culture, they know you’re serious about creating a healthy place to work.
I’ve made those hard decisions. I’ve had to let people go who weren’t the right fit, even when it was uncomfortable or unpopular. It’s emotionally expensive—but necessary. And every time, the team breathes easier. Because they see that you mean what you say.
Action Steps: Lead with Intention
Whether you oversee a department, lead a project, coach a team, or sit on a board—leadership capital matters. Here's how you can protect and invest it wisely:
Audit your influence. Where do people trust you? Where don’t they? Ask, reflect, adjust.
Pick your hills carefully. Ask yourself: Is this the right moment to spend capital—or is this about control?
Advocate for your team. Use your influence to fight for what your people need—clarity, support, balance.
Define your non-negotiables. Be clear about what matters. Then be consistent in upholding it.
Address issues early. Don’t delay hard conversations. They don’t get cheaper with time.
Reinvest regularly. Leadership capital isn’t a one-time deposit. Rebuild it through honesty, availability, and follow-through.
