• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
Fortune Insiders

How the Best Leaders Motivate Their Teams

By
Rod Drury
Rod Drury
Down Arrow Button Icon
By
Rod Drury
Rod Drury
Down Arrow Button Icon
May 3, 2016, 9:30 PM ET
147205347
Photograph by Robert Daly via Getty Images

The Leadership Insider network is an online community where the most thoughtful and influential people in business contribute answers to timely questions about careers and leadership. Today’s answer to the question: How do you keep your team motivated? is written by Rod Drury, CEO at Xero.

Building software is part art, part science. To create beautiful art you need passion and ownership, and the same goes for building beautiful software. At Xero, we’ve grown to more than 1,300 people, spread across the world. As we’ve scaled, we’ve had to invest in our people and carefully think about their career progression to keep them motivated. One productive software developer is better than five unproductive developers combined. So keeping our people motivated and working toward a common goal makes good business sense. Here’s how I rally the troops:

Purpose is everything
Clearly defining your purpose, communicating it effectively, and empowering your employees is one of the purest ways to motivate a team. At Xero, everything we do needs to help boost small business profitability. Here’s why. If small businesses earn more in part because of our products then more jobs are created, ultimately, raising national GDP which means more money to build better schools and hospitals. Better healthcare and education systems promote a stronger labor force and the uplifting cycle continues. It’s a powerful idea and one that is highly motivating.

By articulating your company’s mission and ensuring your products boost that cause, you attract people who align with your purpose. Combining your employees passion with the tools they need to be successful will empower them to do their best work, and ultimately, help your business bottom line.

See also: This Is What Makes a Great Boss

Positive feedback
Empowerment is the key to motivation. For every negative criticism you give, ensure you provide five pieces of positive feedback. Using platforms like Yammer to give every employee a voice and the opportunity to participate in company-wide conversations, which helps instill a sense of ownership no matter whether you’re the CEO or an intern. You can also use platforms like Yammer to keep an eye on what’s happening in and around your organization. It allows you to reinforce great initiatives and correct behavior that’s inconsistent with your strategy or culture.

Being (visibly) wrong is good
If you’re in an organization that is truly centered around learning — filled with smart people — it should be expected that people will either poke holes in your ideas or come up with better ones. It takes humility to admit you’re wrong in such a public setting, but doing so promotes an environment where people aren’t be afraid to fail and encouraged to innovate.

Do the opposite of convention and trust your instincts
It’s easy for large companies to fall into rut and rarely stray from doing the same old thing. But maintaining convention is the quickest way to develop stale teams. In my favorite Seinfeld episode, George Costanza suggests that if every instinct you have is wrong, doing the exact opposite must be right. So don’t be afraid to take risks.

Additionally, when it comes to inspiring your staff common motivators usually include a competitive salary, internal professional development programs, etc. While we do much of this at Xero, we also encourage our staff to mentor employees at up-and-coming startups. Through mentoring they quickly discover they’re already experts in their field and have the ability to make incredible contributions. By using their skills in a new situation, they gain perspective and develop confidence that is valuable for our business.

About the Author
By Rod Drury
See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

SuccessColleges and Universities
As Gen Z regret ‘worthless’ degrees, this CEO sent her kid to college in London—and she’s saving over $50K-a-year. ‘It’s half the price’
By Orianna Rosa RoyleMarch 28, 2026
18 minutes ago
Wael Sawan, chief executive officer of Shell Plc, at the CERAWeek by S&P Global conference in Houston, Texas, US, on Tuesday, March 24, 2026. The event convenes more than 11,000 participants from over 2,350 companies across 90 countries for dialogue on the agenda ahead as the world enters a new era of energy transition. Photographer: F. Carter Smith/Bloomberg via Getty Images
EnergyIran
An uneasy mix of celebration and anxiety dominates the ‘Davos of energy’ as the month-long Iran war further disrupts the global economy
By Jordan BlumMarch 28, 2026
2 hours ago
Big TechHealth
Are you addicted to technology? Six questions experts use to help spot red flags
By Kristin StollerMarch 28, 2026
2 hours ago
A Macy's entrance in a mall.
RetailMacy's
Macy’s just launched an AI-powered shopping assistant. Customers who use it spend nearly 400% more 
By Jacqueline MunisMarch 27, 2026
11 hours ago
Meta's Hyperion data-center site in Northeastern Louisiana.
EnergyMeta
Meta orders 10 gas-fired power plants for its Hyperion AI campus in rural Louisiana—more than triple the initial plan
By Jordan BlumMarch 27, 2026
11 hours ago
LawMeta
Meta promised it wouldn’t spy on you with its AI smart glasses. A lawsuit says humans are watching you, actually
By Catherina GioinoMarch 27, 2026
12 hours ago

Most Popular

Success
Meetings are not work, says Southwest Airlines CEO—and he’s taking action by blocking his calendar every afternoon from Wednesday to Friday 
By Fortune EditorsMarch 27, 2026
23 hours ago
AI
Exclusive: Anthropic acknowledges testing new AI model representing ‘step change’ in capabilities, after accidental data leak reveals its existence
By Fortune EditorsMarch 26, 2026
1 day ago
Personal Finance
Current price of gold as of March 27, 2026
By Fortune EditorsMarch 27, 2026
20 hours ago
AI
Exclusive: Anthropic left details of an unreleased model, invite-only CEO retreat, sitting in an unsecured data trove in a significant security lapse
By Fortune EditorsMarch 26, 2026
1 day ago
Personal Finance
Current price of silver as of Friday, March 27, 2026
By Fortune EditorsMarch 27, 2026
20 hours ago
Commentary
The Treasury just declared the U.S. insolvent. The media missed it
By Fortune EditorsMarch 23, 2026
5 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.