13 Leadership Insights On the Role of Vulnerability in Business

Vulnerability in leadership isn't weakness. It's the willingness to be real in front of your team. When leaders admit they don't have every answer, they create a culture where collaboration, learning, and innovation can flourish. From the TIGERS 6 Principles™ perspective, vulnerability is a trust-building behavior that also ties directly to risk resolution.

In organizations where trust is a strong group norm with behaviors that are defined by employees as well as the leader, vulnerability shows up in moments of uncertainty. A leader who says, "I don't know the answer, but I'm committed to finding it with you," communicates both humility and accountability. That honesty strengthens trust. It invites interdependence, because people feel freer to contribute their ideas. It models genuineness, by showing that leadership isn't about posturing. And it demonstrates risk resolution, because the leader is willing to take the personal risk of not appearing perfect in order to move the group forward.

For small business owners—whether they lead 5 employees or 500—this matters even more. Employees are close enough to see the leader's decisions day-to-day. Pretending to know everything often rings hollow. Vulnerability, when paired with consistency and follow-through, builds credibility and deepens the human connection that keeps employees engaged and loyal.

I recall working with a small manufacturing company where the owner gathered the team during a market downturn. Instead of pretending to have a quick fix, she said, "I don't have all the answers yet. What I do know is that we're going to get through this together. I need your ideas on how we can serve customers better while reducing costs."

That moment of vulnerability sparked a flood of creative solutions. Employees felt valued because they were trusted with the problem, not shielded from it. The company not only weathered the downturn—it came out stronger with new processes employees themselves had helped design.

The lesson is clear. Vulnerability is not about over-sharing or abdicating responsibility. It's about creating space for others to contribute, modeling honesty, and showing that leadership is a shared journey. For small business leaders especially, mastering this balance can transform vulnerability from a perceived risk into one of the strongest tools for building resilient, high-trust teams.

The TIGERS 6 Principles™ are a research-based framework I developed to measure and strengthen teams.

Vulnerability in leadership doesn't signify weakness; rather, it's the secret lever that transforms a leader from being merely a boss into a trusted guide. In my early days at Legacy, I learned that the most powerful growth didn't come from pretending to have all the answers, but from admitting when I didn't and collaboratively finding solutions together.

One example: during our first year of virtual learning, a teacher approached me privately and expressed feeling overwhelmed with managing live learning classes, grading all the students, and providing the necessary student support. I could have chosen to brush her concerns aside or look the other way. Instead, I decided to allow her to speak publicly about her feelings, and acknowledged that as colleagues, we were likely expecting too much from teachers without adequate support. In that moment, I asked her what kind of assistance she was seeking. Together, we were able to identify measures we could implement, which I hope made her life a bit easier. We then introduced collaborative weekly check-ins, redistributed some of her more administrative tasks, and identified time in the schedule where we could build in support time for LSS advisors to assist teachers (not in a true co-teaching role, but to lend a hand with tasks that might not directly impact or benefit the students). The results were clear: teachers felt less burnt out, the quality of instruction improved, and we even saw retention increase in some of the more challenging courses.

Here's what I believe for both first-time and seasoned leaders: when you allow people to see your own doubts, you give them permission to express theirs. This builds trust and surfaces challenges early, before they become crises. So yes, be vulnerable, not through sweeping confessions, but by incorporating your mistakes, limitations, and uncertainties into the narrative of where you want to go. This creates a leadership culture that is authentic, resilient, and deeply human.

I don't think about leadership in terms of "vulnerability." My leadership is about being a person of my word. My perspective is simple: if you make a mistake, you own it. The best example of this was a time I made a poor judgment call on a big job. It was going to cost us extra time and money, and it was entirely my fault.

I could have hidden it from my crew. I could have blamed a supplier or the weather. But I didn't. I gathered them all together on the job site and said, "Look, I messed up. My bid was off, and we're going to have to work much harder on this job to get it done on time and make it profitable." I was honest with them. My "vulnerability" was simply an act of admitting my mistake.

The outcome was completely different from what I expected. My crew didn't get angry. They respected me for it. They worked harder and more carefully on that job. They knew that in a tough situation, I would be honest with them. This built a lot of trust.

My advice to any leader is to stop looking for a corporate "strategy." The best way to build a good team is to be a person who is honest about their mistakes. The "vulnerability" isn't a weakness. It's a simple, human act of honesty that builds a lot of trust and respect. That's the most valuable asset you can have in a business.

When AI-driven transcription tools began gaining traction, I was honest with my team that while this technology was advancing quickly, we weren't going to chase every trend blindly. Instead of pretending to have the perfect roadmap, I acknowledged my uncertainty and invited the team into the conversation. We discussed the pros, cons, and where we stood as a 100% human-powered transcription company.

That moment of openness not only reduced anxiety but also inspired my team to contribute solutions for how we could adapt our messaging and operations in an AI-saturated market. It turned a potential challenge into a shared mission.

The lesson? Vulnerability unlocks collaboration. By being transparent about challenges, even something as big as AI disruption, leaders empower their teams to innovate, take initiative, and stay committed to a common vision.

When a leader demonstrates vulnerability, they create space for others to do the same. It sends the message that they're human. They experience the world with emotions, fears, and challenges. That encourages others to listen with curiosity, speak up, and share their real thoughts and feelings.

I recall leading a virtual team meeting several years ago when I was sick. My guard was down, and I openly shared my frustrations with a decision we'd been working on finalizing for months that wasn't getting resolved. I apologized to the team for the snark in my tone. They all agreed that they appreciated how honest I was and shared similar frustrations. Then they told me to get off the call and get some rest, something I always tell them when they're sick.

It was a sign for me to let my guard down more often and not come to work sick.

Vulnerability is leverage. It builds trust faster than any title or credential.

When I ran my travel company in Chile, I was invited to speak to executive MBA groups. They didn't want my revenue numbers—they wanted me to talk about mental health, failure, and the fears behind my success. I shared openly about losing a business, laying off 50 people, and the therapy it took to recover. Instead of eroding credibility, it made people more engaged.

That vulnerability became my edge as a leader. It showed my team—and later my clients—that I wasn't hiding behind strategy decks. I was experiencing the same struggles they were, just willing to acknowledge them openly. And that's when people actually start to follow you.

Leadership is intrinsically human. Sometimes leaders are seen as untouchable, giving instructions, and the cliché of ivory towers springs to mind.

When a leader shows vulnerability, it can act as a magnetic force attracting colleagues to the leader. Seeing the intrinsically human side. This happened to me when, as a leader in the civil service, I had breast cancer. There were options: stay quiet, say nothing, or share. I decided to share. The outpouring of positive sentiment was overwhelming. But then the trust followed. I had shared the point in my life when I felt most vulnerable. People connected with me, first as a human and then as a leader.

I believe vulnerability is a vital part of effective leadership because it humanizes leaders and creates an environment of trust. When leaders are willing to acknowledge challenges openly, admit limitations, or share when their influence is constrained, it reassures employees that they're not being misled and that their leader is advocating for them. Vulnerability, in this sense, isn't about weakness — it's about authenticity.

One example from my own experience was during a review cycle where budget constraints prevented raises and bonuses from aligning with performance. Some of my team members had been graded as high performers and were valuable contributors, yet the final numbers approved 'up the chain' didn't reflect my recommendations. Others who were consistent but not exceptional didn't receive any raise at all. Instead of sugarcoating the situation, I chose to be transparent. I sat down with each individual, acknowledged their contributions, and explained candidly that while I had advocated strongly for them, the final budget decisions were outside my control. I even encouraged them to speak directly with my manager or higher leadership if they still felt upset or had concerns, reinforcing that their voices had a right to be heard at every level.

This openness had a profound effect. While they were understandably disappointed, my team appreciated that I was upfront, that I had fought for their recognition, and that I wasn't deflecting responsibility. Several told me later that this honesty gave them confidence I truly had their best interests at heart.

The lesson I took from this experience is that vulnerability builds credibility. By admitting my limitations and being transparent about difficult realities, I strengthened trust with my team. They knew I wasn't hiding behind corporate decisions, and that sense of openness helped maintain morale and engagement even in an unfavorable situation. In the long run, this experience reinforced for me that vulnerability, when combined with advocacy, deepens relationships and sustains trust — even when the outcome isn't ideal.

I see vulnerability as a strength that helps leaders connect with their teams. Employees do not follow perfection; they follow authenticity from us. During the pandemic, we faced unexpected shipping delays. I shared with my team that I felt frustrated and uncertain about reassuring customers. By being honest instead of hiding my concern, I encouraged open discussion and invited suggestions. This transparency led to new approaches such as proactive customer communication and flexible delivery options.

The outcome strengthened our reputation for reliability during a challenging time. At our company, we value open conversation because it drives innovation. Showing vulnerability sets the tone that it is safe to admit difficulties. When that happens, solutions come faster and relationships within the team become stronger. Being open about challenges allows us to grow together and find better ways to serve our customers.

Leadership requires vulnerability as an essential yet underappreciated quality. My practice of revealing my limitations and mistakes creates stronger trust relationships than attempting to present a false image of complete understanding. This practice enables team members to share their thoughts without needing authorization or feeling their contributions are insufficient.

An experience that remains vivid in my mind occurred when I revealed to a major client that our team lacked experience with their specific vertical but presented our method for handling the unknowns. Our complete transparency during the pitch actually led to securing the deal instead of losing it. The client expressed their appreciation for our authenticity because all other agencies presented themselves as having a flawless solution.

Admitting that I didn't understand our new inventory software in front of the team initially felt uncomfortable, but it transformed our training culture. Instead of pretending to have expertise, I learned alongside employees and asked them to teach me shortcuts they discovered. This openness created an environment where everyone feels safe admitting knowledge gaps and asking for help. Our software adoption improved dramatically because people weren't afraid to reveal what they didn't know.

Vulnerability in leadership creates space for authenticity and builds trust. When leaders acknowledge uncertainty or share personal challenges, it signals to staff that strength is not about having every answer but about facing reality with honesty. In healthcare especially, where stress can run high, vulnerability models openness and encourages teams to voice concerns before they become problems.

An example occurred during the early days of adopting a new electronic health record system. Instead of presenting as though leadership had the transition fully under control, we admitted to the team that we were also learning and might make mistakes. That admission made staff more willing to raise issues without fear of judgment, which sped up troubleshooting and improved adoption. Vulnerability in that moment shifted the culture from compliance to collaboration, ultimately strengthening both performance and morale.

Some of the best leaders I have personally had have been the ones who were most vulnerable. I found that vulnerability gave me the chance to see them eye-to-eye, and that led to trust being built. That's why I knew from the start that as a leader myself, I never wanted to be afraid to be vulnerable. I wanted to lead by example and show my fellow leadership team that vulnerability is something to be embraced.