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

How the Best Leaders Motivate Their Teams

By
Rod Drury
Down Arrow Button Icon
By
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
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
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • 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
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map

© 2025 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.


Latest in

PoliticsDonald Trump
Kennedy Center seeks $1 million in damages from musician who canceled performance after Trump name added to building
By Steven Sloan and The Associated PressDecember 27, 2025
54 minutes ago
PoliticsTrains
California drops lawsuit to reinstate federal bullet train funding as high-speed rail authority seeks private investors
By Sophie Austin and The Associated PressDecember 27, 2025
1 hour ago
North AmericaFlights
Winter storm cancels more than 1,000 flights in the Northeast and Great Lakes regions as state of emergency declared in N.Y., N.J.
By Leah Willingham and The Associated PressDecember 27, 2025
1 hour ago
Federal Reserve Gov. Chris Waller engages 200 top CEOs at the Yale CEO Summit in December, 2025. (Photo courtesy of the Yale Chief Executive Leadership Institute/Photographer Donovan Marks)
CommentaryFederal Reserve
Why over 80% of America’s top CEOs think Trump would be wrong not to pick Chris Waller for Fed chair
By Jeffrey Sonnenfeld and Steven TianDecember 27, 2025
2 hours ago
Alex Bores stands near a window in the Capitol building
AIdeepfakes
Ex-Palantir turned politician Alex Bores says AI deepfakes are a ‘solvable problem’ if we bring back a free, decades-old technique
By Dave SmithDecember 27, 2025
3 hours ago
Kence Anderson is the founder and CEO of AMESA 
CommentarySoftware
I pioneered machine teaching at Microsoft. Building AI agents is like building a basketball team, not drafting a player 
By Kence AndersonDecember 27, 2025
3 hours ago

Most Popular

placeholder alt text
Retail
Trump just declared December 26th a national holiday. What's open and closed?
By Dave SmithDecember 26, 2025
1 day ago
placeholder alt text
Success
As millions of Gen Zers face unemployment, CEOs of Amazon, Walmart, and McDonald's say opportunity is still there—if you have the right mindset
By Preston ForeDecember 26, 2025
1 day ago
placeholder alt text
Investing
Logan Paul auctions off $5.3 million Pokémon card, urging young people to invest more in nontraditional assets: 'Don't be afraid to take a risk'
By Sydney LakeDecember 25, 2025
2 days ago
placeholder alt text
Real Estate
Mark Zuckerberg gifted noise-canceling headphones to his Palo Alto neighbors because of the nonstop construction around his 11 homes
By Dave SmithDecember 25, 2025
2 days ago
placeholder alt text
Success
Billionaire philanthropy's growing divide: Mark Zuckerberg stops funding immigration reform as MacKenzie Scott doubles down on DEI
By Ashley LutzDecember 22, 2025
5 days ago
placeholder alt text
Economy
Trump's tariffs actually slashed the deficit from a record $136.4 billion to less than half that. Here's what else they did
By Wyatte Grantham-Philips, Paul Wiseman and The Associated PressDecember 26, 2025
23 hours ago