Firms invest heavily in recruiting top talent but then stifle them through micromanagement, telling them what to do and how to do it. This prevents a "return on brainpower" by not allowing employees to challenge assumptions or innovate, leaving significant value unrealized and hindering growth.
A global quantitative study found that the number one factor in making employees feel valued—a key driver of sustainable growth—was having a boss who tells them what to do, not how to do it. This approach, dubbed "treating smart people like they're smart," empowers them to use their own expertise.
Employees are often either "inner-directed" (naturally ask why) or "outer-directed" (seek to please). Leaders can develop outer-directed staff by creating an environment where asking questions and showing one's thinking is explicitly rewarded over simply following orders, thereby overcoming their conditioned fear of making mistakes.