Why “Hire Smart People and Get Out of Their Way” is Misguided Leadership Advice

You’ve heard the leadership mantra: “Hire smart people and get out of their way.” Seems like sound advice. 

But I have bad news for you: This hands-off approach is misguided and fundamentally flawed. 

Actually, that’s putting it mildly. In the words of Directive CEO Garrett Mehrguth, “This is TERRIBLE leadership advice and always leads to firing and stagnation.”

The Problem with “Hire Smart People and Get Out of Their Way”

What’s the real problem? This idea of “getting out of the way” as a leader implies that once you’ve assembled a team of top-notch talent, your company will automatically thrive without further intervention. But that’s simply not true. 

When leaders adopt an overly passive or permissive approach, they inadvertently set the stage for a dysfunctional workplace, marred by a lack of accountability, lack of cohesion, and lack of direction within their teams. 

The result? A floundering business on the fast track to failure. 

Consider a few of these leadership missteps that serve as harrowing reminders of what not to do: 

BlackBerry

Jim Balsillie and Mike Lazaridis led BlackBerry as co-CEOs for well over a decade—from 1998 to 2012. While they were praised for the company’s initial success, they grew overconfident and chose to settle with stagnation rather than engage in innovation.

As Apple and Android came out with touchscreen smartphones and new apps, BlackBerry’s leadership remained fixated on its outdated, keyboard-centric devices. This complacency, coupled with a failure to prioritize software development and user experience, led to the company’s ultimate downfall.

By the time leadership finally attempted to act, adapt, and shift their strategy, it was too late, and BlackBerry eventually stopped manufacturing smartphones or other hardware devices altogether.

Yahoo (pre-acquisition)

Yahoo faced a slew of challenges from the mid-2000s to 2017, thanks in part to the poor leadership of CEOs Terry Semel, Jerry Yang, and Marissa Mayer. While each leader had unique strengths, they were all ultimately faulted for their lack of cohesive direction and inability to keep up with all the rapid changes in tech. 

Frequent shifts in leadership managed to compound these issues, and Yahoo missed a few golden opportunities—i.e., the chance to acquire Google and Facebook—which could have dramatically altered its trajectory.

As Yahoo struggled to compete, it became increasingly clear that passive leadership and a lack of accountability were significant roadblocks. The company’s failure to innovate and adapt ultimately led to its sale to Verizon in 2017.

General Motors (pre-bankruptcy)

Rick Wagoner was Chairman and CEO of General Motors (GM) from 2003 to 2009. He’s been widely criticized as a leader that, though personable, didn’t challenge company culture, respond well to crises, or demand innovative solutions from his team. 

Through Wagoner’s complacency and lack of direct leadership, GM failed to adapt to changing market conditions—and had to file for bankruptcy in 2009. 

The Importance of Active Leadership

If you don’t want your business to fail, you have to take an active approach to leadership. Let’s look at some leaders who’ve done this well: 

General Motors (today)

GM’s bankruptcy in 2009 led to a government bailout and huge company restructuring. Shortly after, in 2014, Mary Barra took over as CEO and Chairman—and her approach has been anything but passive and complacent. 

Barra’s drive, curiosity, and forward-thinking approach is evident in GM’s current focus on EVs and sustainability efforts—a big shift from its global reputation as a gas-powered vehicle manufacturer. 

“Do every job you’re in like you’re going to do it for the rest of your life, and demonstrate that ownership of it” Barra advises. 

Now, with the help of Barra’s direct leadership and innovative spirit, GM is excelling in the automotive industry. Based on a recent Forbes article, the company recently reported “stronger-than-expected Q2 2024 results, with revenue rising by 7.2% year-over-year to $48 billion.” 

Apple

You can’t talk about active leadership without mentioning Steve Jobs. Jobs is often quoted saying, “It doesn’t make sense to hire smart people and tell them what to do. We hire smart people so they can tell us what to do.”

But, Mehrguth counters, “Do you think Steve Jobs was known for getting out of the way?”

Nope.

Jobs was famous (or, some may argue, infamous) for his hands-on approach. This man wasn’t just a visionary—he was deeply entrenched in product development and demanded excellence and perfection. 

Jobs valued finding the best talent, but he also felt strongly that “innovation distinguishes between a leader and a follower.” In the tech world, Jobs is the ultimate example of proactive leadership; he consistently pushed the boundaries, challenged the status quo, and led from the front. 

Under their current CEO Tim Cook, Apple continues to report impressive earnings. Thanks to the solid foundation built on Jobs’ visionary principles and Cook’s own strategic foresight, Apple still dominates the tech industry. 

Amazon

Like Jobs, Jeff Bezos of Amazon was actively involved in product development and strategic innovation. And, like Apple, Amazon continues to thrive. 

As Bezos himself noted, “What’s dangerous is not to evolve.” 

Evolution, adaptation, and innovation are critical to success. And to have your company evolve, you need to be involved. 

Balancing Autonomy and Guidance

Let’s be clear: Active leadership is not about micromanagement. It’s about providing strategic guidance, building trust, fostering collaboration, and driving results. 

How to Achieve This: 

• Be Good at Everything and Great at One Thing

You can’t be the best at everything. And you shouldn’t try to be the best at everything either—as Shakespeare aptly put it, “That way madness lies.” 

But you need to be good enough that you can “properly evaluate talent, set realistic goals, and manage [your] direct reports to their potential,” Mehrguth explains. “The real question should be, what are my zones of genius and how can I surround myself with experts in the areas I am less passionate about (without opting out of my responsibility to the company?)”

• Set Proper Expectations with Your Team

Set clear and measurable goals for your employees. Ensure these objectives align with the company’s business strategy while playing to your team’s strengths. 

When team members know what you expect from them, they can take ownership of their work and explore creative solutions while still feeling supported. 

• Maintain Open Lines of Communication and Provide Ongoing Support

Set up regular check-ins and encourage open dialogue. Offer support when an employee is navigating unique challenges, whether it’s through coaching, resources, or simply acting as a sounding board.

This not only creates an environment where your employees feel comfortable sharing ideas and obstacles but also keeps you informed in real time. When you stay looped in, you can provide appropriate, timely feedback—and you can quickly course correct when necessary.

Your continual involvement can make a big difference in the success of your employees and of the business as a whole. 

Real-World Applications

Here at Directive, Mehrguth focuses on all facets of his business: 

“When Directive started, I reconciled our books myself. I wanted to learn how bookkeeping and a chart of accounts worked. I have not tried to improve this skill in 8 years, but I’m glad I spent a season growing in this area. Now, I am working on learning more about debt + M&A. To accelerate this learning, I am surrounding myself with the brightest minds in the industry, buying every book on the topic, and calling every agency CEO who did M&A, [asking] ‘What do you wish you knew looking back?’”

Mehrguth also discusses company goals, challenges, and wins openly with his team and on LinkedIn. His dedication as a leader to transparency, community engagement, mentorship, and innovative thinking demonstrate his commitment to active over permissive leadership. 

Takeaway

Successful leadership is a balancing act. It calls for active involvement without micromanagement. It requires delegating, but not abdicating. 

The notion of hiring the best of the best then moving to the sidelines may sound appealing, but that laissez-faire mentality is ultimately an imprudent and risky approach to leadership. 

You need fantastic, intelligent, and self-driven employees in order to succeed. But they also need you to set the vision, drive innovation, and provide consistent direction, guidance, and support. 

So don’t get out of the way.

The stakes are too high.