The Currency of Leadership
Leadership isn’t just about authority or titles — it’s about influence. And influence, like money, relies on something you don’t always see: credit.
Just like financial credit, leadership credit is the trust, goodwill, and relational equity you build with others over time. It’s what makes people say yes when they don’t have to. It’s why teams follow you through change. It’s the difference between being heard and being ignored.
If you’re in a position of leadership — formal or informal — understanding how to build, spend, and replenish leadership credit is essential for long-term impact.
The Leadership Credit Cycle
Leadership credit operates on a cycle of earning, spending, and replenishing. Let’s break it down:
1. Earning Leadership Credit
Credit is earned through consistent actions that build trust and demonstrate value. Key ways to earn leadership credit include:
- Delivering Results: Consistently meeting or exceeding expectations
- Showing Integrity: Being honest, transparent, and consistent
- Adding Value: Contributing to team success beyond your role
- Building Relationships: Investing in genuine connections
- Demonstrating Expertise: Developing and sharing knowledge
2. Spending Leadership Credit
Leadership credit is spent when you:
Request Extra Effort
Asking for discretionary effort
Initiate Change
Leading through uncertainty
Make Tough Decisions
Implementing necessary but unpopular choices
Challenge Status Quo
Advocating for new approaches
3. Replenishing Leadership Credit
Credit isn’t infinite. After spending it, you must actively replenish it through:
- Recognition: Publicly acknowledging contributions
- Support: Providing resources and opportunities
- Learning: Demonstrating growth and improvement
- Empathy: Showing understanding of others’ perspectives
The most effective leaders maintain a positive credit balance by replenishing more than they spend.
Common Leadership Credit Mistakes
- Spending Without Earning: Making demands without building trust
- Hoarding Credit: Not sharing recognition or opportunities
- Overpromising: Making commitments you can’t keep
- Ignoring Feedback: Dismissing others’ perspectives
- Playing Favorites: Showing bias in opportunities or recognition
Building Your Leadership Credit Portfolio
Think of leadership credit as a portfolio with different types of capital:
Trust Capital
Built through reliability and consistency
Value Capital
Earned through contributions and expertise
Relationship Capital
Developed through genuine connections
Impact Capital
Generated through meaningful results
Practical Tips for Building Leadership Credit
✓ Communicate early and often
✓ Ask for input before decisions, not just after
✓ Show you’re learning — not posturing
✓ Advocate for others’ success, not just your own
✓ Practice gratitude and humility
✓ Follow through on commitments
✓ Be transparent about challenges
✓ Invest in team development
✓ Demonstrate vulnerability
✓ Celebrate team wins, not just individual achievements
Final Thoughts
Leadership credit isn’t about being liked or avoiding tough decisions. It’s about building a foundation of trust and value that allows you to lead effectively through good times and bad.
Remember: leadership credit is earned through actions, not titles. The most influential leaders are those who consistently demonstrate value, build trust, and invest in their teams — regardless of their formal position.
“The true measure of leadership is influence—nothing more, nothing less.”
By understanding how to build, spend, and replenish leadership credit, you can create lasting influence that drives meaningful change in your organization.