Leadership styles that affect your business value

The Leadership Style That Builds Loyalty—and Destroys Company Value

Some leaders take pride in leading from the front. They’re in the trenches with their team. They never delegate a task they wouldn’t do themselves. It earns respect, builds morale, and inspires loyalty. These Leaders are the ones who believe what they have always been told - "LEAD BY EXAMPLE!". Your team look up to you as you can do (and probably have done)) everything you ask of others, and possibly better or more competently than the existing team.

Unfortunately this can destroy the value of their business. When we set the Standards, this forms part of the culture and when the standards are high, everyone buys-in, is accountable for their actions and is held to account for their performance, then the added benefit is the business becomes more valuable.

According to data from The Value Builder System™, companies where the owner is the hub get offers that are 35% lower than those that run independently of their founder.

Buyers don’t pay top dollar for a company that revolves around its owner. They want a business, not a boss.

Doug Lowenthal learned that the hard way.

When Dedication Becomes a Liability

Doug spent nearly 20 years building TruTechnology, a multi-million dollar IT services firm. He believed leadership meant doing whatever it took—managing the help desk, answering support tickets, even working through holidays. His team respected him, but the pressure was nonstop.

Eventually it caught up to him. One day Doug felt a crushing weight in his chest. Convinced he was having a heart attack, he rushed to the hospital. It turned out to be a false alarm—but it was a turning point.

Doug realized he had built a successful business, but he was at the centre of everything. His team was capable. He just hadn’t let go.

Letting Go Made It Valuable

That scare pushed him to change. Doug handed over real ownership to his department heads. He tied bonuses to profit. He opened the books and taught his team how the business actually made money. From gross margin to operating expenses, EBITDA became everyone’s North Star.

His team started thinking like owners. The business began to run without him.

Not long after, Doug sold TruTechnology to Evergreen Services Group in a 100% cash deal—proof that stepping back doesn’t erode value; it creates it.

To discuss how your leadership style is affecting the value of your business either follow the link to your personalised Value Builders assessment https://score.valuebuildersystem.com/business-performance-uk/ron-maycock or speak to us via the button below