Why Most Leaders Get People Wrong

By Rick Rawson

We say people are our greatest asset.

But if you look at how many organizations actually operate, you’d think people are the problem to manage—or the cost to control.

I learned this lesson years ago while working in struggling healthcare organizations. Like many systems under pressure, the instinct was to pull back:

  • reduce services
  • cut costs
  • tighten control
  • protect margin

On paper, those decisions looked responsible but something seemed wrong. 

We realized the more we focused on shrinking our way to sustainability, the more disconnected we became from the very communities we were supposed to serve and whose future depended on us. Staff morale dropped. Innovation slowed. Trust weakened.

Then something shifted.  We decided to ask different questions

Instead of asking:

“What do we need to cut?”

We started asking:

“What does our community actually need from us?”  How do we unleash the capacity of the people in our organization to create value for our communities?  

As a leader I needed to face my own fears and realized that to change the organization, I needed to start with myself.  

We began expanding services that mattered locally. We invested in people closer to the community. We empowered staff to think differently instead of simply following tighter controls.

And something surprising happened.

As people felt trusted and connected to purpose again, capacity grew.
Not just emotionally—organizationally.

New ideas emerged. Partnerships formed. Services expanded. Financial performance improved alongside mission impact.

What I learned from that experience is this:

People are rarely the constraint. Systems are.

When leaders see people primarily through the lens of productivity, compliance, or cost, they build systems that limit human potential.

But when leaders see people as a source of capacity, creativity, and value, organizations begin to change.   As leaders we have a responsibility to hose we lead and serve to create systems that optimize value and unleash human potential. 

The best leadership I’ve seen doesn’t start with control.

It starts with perspective.

  • Seeing value where others see limitation
  • Seeing possibility where others see risk
  • Seeing people not as resources,  but as human beings capable of innovation and growth

Especially in healthcare, this matters.

Burnout, disengagement, and turnover are often described as people problems. But many times they are actually signals of systems that have lost connection to purpose, community, and human dignity.

Leadership is not just about getting results.

It’s about creating the conditions where people can become more than the system expected of them.

A questions I continue to ask myself is:

Who around me is capable of more than I currently see?  What can I do to nurture that capacity and unleash the human potential around me. 

Those questions changed the way I led—and the kinds of organizations I believe are possible.

#Leadership #Healthcare #SystemsThinking #Coaching #CommunityHealth #ServantLeadership #RuralHealth #PersonCenteredCare #CapacityBuilding

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