The Best Leaders Have a Contagious Positive Energy
Imagine leading a team that feels genuinely motivated and confident, regardless of how high the stakes are. This is what positive energy can do—it inspires teams to tackle even the most complex challenges with enthusiasm and focus.
#ShoryuWill Newsletter #24 By William Zhang
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What This Edition Will Cover:
When it comes to driving business success, positive energy in leadership isn’t just a motivational buzzword—it’s a powerful influence that can inspire teams to excel, even under pressure. Leaders who bring authentic enthusiasm and positive energy foster a culture where people are excited to work toward shared goals, which is especially valuable during M&A, where focus, resilience, and teamwork are paramount.
A study by McKinsey reveals that organisations with energised and engaged leaders are 1.5 times more likely to report high employee engagement during the M&A process. For example, during the integration of two large corporations in the medical field, a carefully designed leadership training program was crucial in uniting leaders, capturing synergies, and building a shared vision. This approach led to a 92% talent retention rate—exceeding industry expectations and surpassing their public synergy goals by over 120%.
In another detailed case, McKinsey illustrated how a European packaging company that merged with a U.S. counterpart saw remarkable success by focusing on both cultural and strategic alignment. By setting high targets across financial and operational functions and taking a long-term view, this integration resulted in a 45% increase in EBITDA and over $1 billion in shareholder value over five years. This transformation demonstrates how carefully orchestrated, high-energy leadership can drive significant gains even in complex, high-stakes mergers, supporting both team morale and financial objectives.
The Common Problem and Why It’s Important
In M&A, the stakes are high, and leaders are often under immense pressure to deliver financial results while managing cultural integration. However, focusing solely on financial metrics often leaves little room for emotional intelligence, which can be a game-changer. Research shows that a lack of positive energy in leadership during M&A can cause up to a 50% drop in employee engagement, leading to retention issues and slower integration progress.
Proof of Concept
Francesco Starace, CEO of Enel, showed how positive energy at the top could drive transformation. By pivoting Enel to focus on renewable energy, he unified his teams under a shared vision, resulting in Enel’s market value increasing by over 2.6 times within six years. Leaders like Starace demonstrate that positive energy, combined with strategic alignment, significantly impacts both cultural integration and financial performance in complex environments.
Where We Went Wrong
During M&A processes, leaders can become overly focused on numbers, sidelining the importance of team morale. A disengaged workforce quickly undermines operational efficiency and risks the success of the merger. By neglecting the human element, leaders miss out on the potential for a unified team aligned with the company’s vision.
Why the Problem Was Challenging to Resolve
Balancing the technical complexities of M&A with a positive, energising leadership style is not simple. According to Harvard Business Review, maintaining both focus and enthusiasm in negotiations is crucial, but conventional metrics don’t track team morale or energy. Leaders who stay emotionally engaged while managing logistical demands help create an environment where resilience and creativity flourish, essential for capturing maximum value from deals.
The New Thing That Makes It Solvable at Low Cost but High Returns
Enter AI and digital platforms. These tools are becoming invaluable in optimizing team performance, task management, and stakeholder communication. Platforms like DealRoom enable leaders to oversee transaction data and keep team interactions streamlined, which is particularly useful during M&A. By using tech tools, leaders can maintain operational precision while fostering an environment of transparency and human connection.
What Knowledge, Experience, and Network You’re Missing (and How to Fulfill It)
Leading with positive energy, especially in M&A, requires emotional intelligence, negotiation skills, and effective listening. Start by building a network of mentors who excel in these areas and can offer first-hand insights on navigating high-pressure environments. Use platforms like LinkedIn and resources like BCG Insights to stay informed on maintaining positive energy in leadership, as these offer invaluable data-backed insights for managing complex transactions effectively.
Step-by-Step: Building Positive Leadership During M&A
Final Words
Positive energy in leadership is a powerful tool, especially when tackling complex transactions like M&A. By balancing enthusiasm with strategic clarity, leaders can create a team environment that not only meets but exceeds expectations.
3 Book Recommendations:
1-2-3 Punch:
1 Quote: “People may hear your words, but they feel your attitude.” – John C. Maxwell
2 Questions:
How does your energy influence your team in high-stakes moments?
What steps can you take to foster positive energy, even under stress?
3 Actions:
Conduct a self-check on your leadership style and its impact on your team.
Hold a team meeting to gather feedback on what motivates them most.
Implement one digital tool to streamline tasks, creating more space for positive interactions.
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Your friend, William Zhang
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