You Lead With What You Are

There is a fundamental, often unspoken, truth in organisational life: you lead with what you are. An organisation, in its culture, its processes, and its very soul, inevitably becomes a reflection of its leadership. The fears, values, and worldview of those at the top do not remain contained in the executive suite; they cascade downwards, shaping the lived reality of every employee. This is not a matter of chance, but a predictable outcome of psychological projection—the process by which we unconsciously attribute our own thoughts, feelings, and motives to others. In the context of leadership, this means that a leader’s subjective reality becomes the objective reality of the organisation.

This article explores this powerful dynamic, examining how the inner world of a leader shapes the outer world of their team. We will delve into the psychology of the traditional hierarchical structure, revealing how it can amplify the ego and shadow of a leader, often to the detriment of the organisation’s success. We will then explore a different path, one rooted in mindfulness and self-awareness, that leads to a more conscious and intentional form of leadership. Finally, we will contrast the traditional model with the emerging paradigm of the circular organisation, a structure designed to distribute power, foster psychological safety, and unlock the collective potential of the entire system. This is not merely a theoretical exercise; it is an invitation to question the very foundations of modern management and to consider a more human, effective, and sustainable way of leading.

The Mirror Effect: How Leaders Project Their Reality

The idea that an organisation is a mirror of its leaders is not a new one, but its psychological underpinnings are often overlooked. When a leader projects their subjective reality, they are, in essence, creating the emotional and psychological weather within the organisation. A leader who is driven by a fear of failure will create a culture of risk aversion and blame. A leader who values collaboration and trust will foster a culture of teamwork and psychological safety. The organisation, in this sense, becomes a canvas upon which the leader’s inner landscape is painted.

This projection is not always a conscious process. In fact, it is often the unconscious biases, unresolved conflicts, and unexamined assumptions of a leader that have the most profound impact. These unconscious elements form the leader’s ‘shadow’—a concept from Jungian psychology that refers to the parts of ourselves that we deny or repress. When a leader is not aware of their shadow, it can manifest in destructive ways, creating a toxic work environment and undermining the organisation’s goals.

The Psychology of Control: Understanding the Traditional Hierarchy

In the traditional hierarchical organisation, the manager is often not a leader in the true sense of the word, but rather an instrument of control. Their primary function is to ensure that the directives and data from higher up are implemented by the people they manage. This creates a dynamic that can be described as the ‘kicking down’ theory, where pressure and control are passed down from one level of the hierarchy to the next. This system is not designed to empower individuals; it is designed to ensure compliance.

The psychological impact of this model is significant. It fosters an environment of fear-based decision-making, where employees are more concerned with protecting their own position than with advancing the organisation’s goals. The fear of failure, of not meeting targets, or of falling out of favour with a superior becomes the primary motivator. This, in turn, leads to a culture of risk aversion, where innovation and creativity are stifled. The unspoken contract in such a system is one of compliance for security: employees surrender their autonomy and creativity in exchange for the perceived safety of a steady job.

This hierarchical structure also amplifies the leader’s ego and shadow in a particularly insidious way. Each layer of management acts as both a filter and a magnifier for the projections of the layer above. A senior leader’s insecurity can be transformed into a middle manager’s micromanagement, which in turn becomes a frontline employee’s feeling of being constantly watched and judged. The result is a cascade of dysfunction, where the individual neuroses of a few people at the top can create a deeply unhealthy organisational culture. The cost is immense: not only in terms of employee well-being, but also in the organisation’s ability to adapt, innovate, and thrive in an increasingly complex and rapidly changing world.

Mindfulness & Self-Awareness: The First Step Toward Change

If the traditional hierarchy inadvertently creates a system of control and fear, the antidote begins not with structural reorganisation, but with a shift in consciousness. This is where mindfulness and self-awareness become critical leadership competencies. A leader who is not aware of their own projections, biases, and emotional triggers is, in a very real sense, flying blind. They cannot see the gap between their intended impact and their actual impact on the people they lead. Mindfulness, in this context, is the practice of paying attention to the present moment without judgment. For a leader, this means developing the capacity to observe their own thoughts, feelings, and reactions, and to understand how these inner states are influencing their behaviour and, by extension, the behaviour of their team.

This practice of self-awareness is the first and most crucial step toward breaking the cycle of unconscious projection. It allows a leader to move from emotional reactivity to intentional response. Instead of being driven by their own fears and insecurities, they can choose to act in alignment with their values and the organisation’s needs. This is not about achieving emotional detachment, but rather about developing a more intimate and honest relationship with one’s own inner world. It is about having the courage to confront one’s own shadow, to acknowledge the parts of oneself that are less than perfect, and to integrate them in a way that is constructive rather than destructive.

The psychological shift that occurs when a leader embraces mindfulness is profound. They move from a mindset of ‘I am the expert who knows best’ to one of ‘What is this person/team capable of?’ They become less interested in controlling and directing, and more interested in coaching and empowering. They begin to see their role not as a dispenser of answers, but as a creator of conditions in which others can find their own answers. This is the beginning of a journey from a leader who projects their own limitations onto their team, to one who helps their team transcend their own perceived limitations.

The Circular Alternative: Redefining Leadership and Power

The limitations of the traditional hierarchical model are not a result of bad intentions, but of a design that is no longer fit for purpose. Centralised power inevitably concentrates and amplifies the ego and shadow of the individual leader. Information flows are designed to maintain control, creating dependency rather than fostering autonomy. The layers of management become layers of distortion, filtering and twisting communication as it travels up and down the chain of command. In such a system, genuine innovation and agility are the exceptions, not the rule. The system is optimised for stability and predictability, not for learning and adaptation.

What if we could design an organisation in a way that mitigates these inherent flaws? This is the promise of the circular organisation, a model that redefines the very nature of leadership and power. Instead of a pyramid, the organisation is conceived as a series of interconnected circles, where power is not hoarded at the top but distributed throughout the system. In this model, power is redefined as empowered action rather than fear-based control.

At the heart of this transformation is the dissolution of the traditional managerial role. The responsibilities of the manager are unbundled and redistributed into two distinct and specialised functions: the Coach and the Skill Leader.

Role in Circular Organisation	Focus	Key Responsibilities	Psychological Impact
The Coach	Person-Centred	Helping individuals understand and develop themselves; supporting self-directed growth; creating conditions for individuals to control their own development.	Fosters psychological safety through unconditional support and a focus on individual potential.
The Skill Leader	Doing & Enabling	Leading by example and demonstration; ensuring teams have the tools, knowledge, and environment to achieve a state of flow; removing obstacles to excellence.	Creates psychological safety through competence, clarity, and a commitment to high performance.

This separation of roles is critical. The Coach is entirely person-centred, focused on helping the individual to understand themselves, to grow, and to find their own path to being the best they can be. They are a source of support and guidance, not of judgment or control. The Skill Leader, on the other hand, is a master of their craft, leading by doing and ensuring that the team has everything it needs to perform at its peak. They are the guardians of quality and the enablers of a ‘flow state’ at work, where individuals are so immersed in their tasks that they perform at their best effortlessly.

So, what becomes of the manager in this new model? The managerial function is transformed into a role that serves the entire system. The manager becomes a hub for data analysis and insight, ensuring that critical and immediate information is available to everyone. Their job is not to control people, but to empower them with the information they need to make their own decisions and to dynamically adjust their work to meet their objectives. These objectives, in turn, are anchored in the overall goals of the organisation, creating a system where individual and collective success are inextricably linked.

The effect of this new structure is a cascade of positive change. By removing the hierarchical layers, the amplification of the leader’s ego and shadow is eliminated. With distributed power comes distributed responsibility and ownership. Information flows freely, both horizontally and vertically, reducing distortion and enabling faster, more effective decision-making. Innovation is no longer the preserve of a select few at the top, but an emergent property of the entire system.

From Projection to Empowerment: The Psychological Shift

When an organisation transitions from a hierarchical to a circular model, the psychological shift is seismic. Leadership ceases to be a function of control and becomes one of support. The primary role of a leader is no longer to direct and manage, but to create the conditions in which others can succeed. This means actively removing barriers, providing resources, and fostering an environment of psychological safety where people feel empowered to take risks and to bring their whole selves to their work.

In this new paradigm, individuals are not passive recipients of instruction, but active owners of their contribution to collective success. The psychological contract is no longer transactional—compliance in exchange for security—but transformational. People are engaged not because they fear the consequences of failure, but because they are inspired by the possibility of success. They are motivated by a sense of purpose and by the feeling of being part of something larger than themselves.

The conditions for achieving a state of flow become not a happy accident, but a deliberate design feature of the organisation. When individuals are clear on their goals, have the autonomy to decide how to achieve them, and receive immediate feedback on their progress, they are far more likely to experience the deep engagement and effortless performance that characterises the flow state. This benefits not only individual well-being, but also the organisation’s bottom line. A workforce in flow is a productive, innovative, and deeply committed workforce.

The organisational outcome of this shift is a virtuous cycle of empowerment and collective success. The power of the organisation no longer flows from a centralised point of control, but from the distributed intelligence and initiative of its people. The individual ego and shadow of any single leader are no longer an organisational liability, because the system is not designed to amplify them. Agility, innovation, and resilience become natural byproducts of a system designed to learn, adapt, and evolve.

The Invitation: “Could It Be?”

The journey from a traditional, hierarchical organisation to a circular one is not a simple matter of redrawing an organisational chart. It is a profound psychological and cultural transformation. It requires leaders to embark on a journey of self-discovery, to confront their own projections and shadows, and to have the courage to let go of control. It requires a willingness to question the deeply ingrained assumptions that we, as a society, hold about the nature of work, leadership, and management.

The question, therefore, is not whether this model can work in theory—the principles of psychology and organisational science suggest that it can. The real question is a more personal one: What would it take for you, as a leader, to start questioning the system you are a part of? What would it take to see your current organisational structure not as an immutable reality, but as a choice that can be remade? And what would it take to lead with what you are, consciously and intentionally, in the service of others’ success?

This is the essence of the work we do at The Alchemy Experience. We have seen firsthand that when organisations are willing to ask these difficult questions, extraordinary things begin to happen. The transformation does not happen overnight, and it is not always easy. But it begins with a single leader choosing to lead differently. It begins with the recognition that you lead with what you are. The only question that remains is: what are you choosing to be?

References

• How Leaders Influence Culture: The Crucial Role of Leadership in Shaping Organizational Culture
• Mindful Leadership: The Importance of Self-Awareness
• Holacracy: The New Management System for a Rapidly Changing World
• The Psychology of Team Dynamics for Corporate Leaders
• How Hierarchies Damage Even Those at the Top