When Jay Multanen was asked for his number one leadership tip, his answer surprised many business leaders. After decades of building Bestbath into a national manufacturing company, his advice was simple: “Serve those around you.”
This philosophy runs counter to traditional leadership models that emphasize authority and control. Yet companies practicing servant leadership consistently outperform their competitors in employee retention, customer satisfaction, and long-term profitability.
Coming up, we’ll explore how servant leadership transforms business performance through practical strategies that put people first while driving measurable results. You’ll discover why this approach works, how to implement it effectively, and the specific frameworks that turn servant leadership from a nice philosophy into a competitive advantage.
Understanding Servant Leadership Beyond the Buzzwords
Servant leadership flips the traditional power structure by making leaders accountable to their teams rather than the other way around. This approach, developed by Robert Greenleaf in the 1970s, has evolved into a proven business strategy that addresses 2026‘s most pressing workplace challenges.
Jay Multanen discovered this principle through experience rather than theory. Co-CEO of Bestbath with his sister Megan, he learned that serving others creates a reciprocal dynamic that benefits everyone involved.
The best advice I can give is, the more we uplift those around us, the more they uplift us. It’s kind of a rising tide lifts all boats kind of mantra. The more I’ve tried to serve others, the more that I get served. When I try and be self-serving, the less I get served.
This perspective transforms how leaders think about power and influence. Traditional leadership often focuses on what leaders can extract from their teams. Servant leadership focuses on what leaders can contribute to their teams’ success.
The distinction creates fundamentally different outcomes:
- Employee engagement increases. When people feel genuinely supported, they invest more energy in their work.
- Decision-making improves. Leaders who prioritize others’ needs gather better information and make more thoughtful choices.
- Organizational resilience grows. Teams that trust their leaders handle challenges more effectively.
The Business Case for Servant Leadership
Research consistently shows that servant leadership delivers measurable business results. Companies with servant leaders experience 50% lower employee turnover, improved customer satisfaction scores, and stronger financial performance over time.
These outcomes occur because servant leadership addresses fundamental human needs that traditional leadership often ignores:
Building Psychological Safety
Servant leaders create environments where people feel safe to take risks, share ideas, and admit mistakes. This psychological safety directly impacts innovation and problem-solving capabilities.
At Bestbath, this principle manifested during a federal compliance crisis. Instead of looking for someone to blame, Jay took personal responsibility and worked collaboratively with regulators to solve the problem.
I wanted to be in compliance. And that’s what they wanted. I was able to demonstrate to them that I’m trying to do right. We can find a way.
This approach to leadership challenges creates trust rather than fear, encouraging teams to bring problems forward before they become crises.
Developing Others as a Strategic Priority
Servant leaders view employee development as a core business function, not an HR afterthought. This investment creates competitive advantages that compound over time.
Jay emphasizes the connection between taking care of employees and serving customers:
If we can take care of each other, then there’s a chance that we can take care of the customer. But if we can’t take care of each other, then there’s no chance that we can take care of the customer.
This philosophy creates a virtuous cycle where employee satisfaction drives customer satisfaction, which drives business growth, which enables further investment in employees.
Core Principles of Effective Servant Leadership
This section explores the fundamental behaviors and mindsets that make servant leadership effective in business settings. You’ll discover specific practices that transform servant leadership from philosophy into measurable competitive advantage.
Personal Accountability as Leadership Foundation
Servant leaders consistently examine their own role in problems before looking at external factors. This self-awareness prevents the blame-shifting that destroys team trust.
Jay learned this lesson through experience:
Here’s what I’ve discovered about all my problems: I am the common denominator. So I’m very quick to look at myself first, and figure out how can I improve this situation? What can I do? Before I look at others to say, ‘This is what I think you should do.’
This approach accomplishes several objectives:
- Models accountability for the entire organization. Teams mirror their leaders’ behavior.
- Reduces defensive reactions. People respond better when leaders admit their mistakes first.
- Accelerates problem-solving. Focusing on controllable factors leads to faster solutions.
Listening as a Strategic Skill
Servant leaders prioritize deep listening over quick responses. This skill enables them to understand complex situations and make better decisions.
Effective servant leadership listening involves:
- Creating space for difficult conversations. Regular one-on-one meetings where people can share concerns safely.
- Asking clarifying questions. Understanding the real issues behind surface-level complaints.
- Following up on feedback. Demonstrating that input leads to meaningful action.
Empowerment Through Clear Expectations
Servant leadership doesn’t mean lowering standards or avoiding difficult decisions. Instead, it means providing people with the tools, authority, and support they need to meet high expectations.
This requires leaders to:
- Define success clearly. People can’t serve effectively without understanding what excellence looks like.
- Remove obstacles. Leaders identify and eliminate barriers that prevent team success.
- Provide resources. Teams need training, tools, and authority to accomplish their goals.
Implementing Servant Leadership Strategies
This section provides concrete steps for integrating servant leadership into your organization’s structure and culture. You’ll learn how to create systems, processes, and communication frameworks that support and reinforce servant leadership principles.
Creating Organizational Structures That Support Service
Servant leadership requires intentional organizational design that reinforces collaborative behavior. Traditional hierarchical structures often undermine servant leadership principles.
At Bestbath, Jay and Megan’s co-CEO arrangement exemplifies structural servant leadership. Rather than competing for authority, they share accountability and use each other as strategic thinking partners.
I honestly believe that two minds are better than one. I genuinely think that we come to better agreements, and a faster resolution because of that.
This structure works because it:
- Distributes decision-making authority. Multiple perspectives improve outcomes.
- Models collaborative behavior. The leadership team demonstrates the principles they expect from others.
- Reduces single points of failure. Shared leadership creates organizational resilience.
Measuring Servant Leadership Impact
Servant leadership effectiveness requires measurement systems that track both people and performance metrics:
Employee Engagement Indicators:
- Employee retention rates and exit interview feedback
- Internal promotion rates and career development participation
- Employee satisfaction scores and engagement survey results
Business Performance Metrics:
- Customer satisfaction and loyalty measurements
- Quality indicators and error rates
- Financial performance and productivity measurements
Cultural Health Assessments:
- Communication effectiveness and conflict resolution
- Innovation rates and improvement suggestions
- Cross-departmental collaboration quality
Communication Frameworks for Servant Leaders
Effective servant leadership requires structured communication that builds trust and drives results. This goes beyond open-door policies to create systematic feedback and development processes.
Essential communication elements include:
- Regular coaching conversations. Weekly or bi-weekly one-on-ones focused on development, not just status updates.
- Transparent decision-making processes. Explaining the reasoning behind decisions, especially difficult ones.
- Proactive conflict resolution. Addressing interpersonal issues before they impact business performance.
Advanced Servant Leadership Techniques
This section covers sophisticated applications of servant leadership for complex business situations. You’ll discover how to maintain servant leadership principles during crises, scale the approach across growing organizations, and avoid common implementation pitfalls.
Leading Through Crisis and Change
Servant leaders distinguish themselves during difficult periods by maintaining their commitment to serving others even under pressure. This consistency builds trust that enables organizations to navigate challenges effectively.
Jay’s experience during the COVID-19 pandemic illustrates this principle. Rather than focusing solely on financial survival, Bestbath’s leadership team asked how they could best serve all stakeholders during uncertainty.
We were thinking, ‘How do we do what’s best for all? How do we do what’s best?’ Since then, we’ve both done a lot of personal work. I think that’s what it takes. I think it takes patience, it takes understanding, it takes gratitude.
This approach requires leaders to:
- Communicate frequently and honestly. People need information to feel secure during uncertainty.
- Make decisions based on values. Consistent principles guide choices when circumstances change rapidly.
- Support people through transitions. Change is easier when people feel supported and valued.
Building Systems That Scale Servant Leadership
As organizations grow, servant leadership principles must be embedded in systems and processes rather than depending solely on individual leaders’ behavior.
Key scaling strategies include:
- Hiring and promotion criteria that emphasize service. Selecting leaders who demonstrate servant leadership capabilities.
- Training programs that develop servant leadership skills. Teaching listening, empathy, and empowerment techniques.
- Performance review systems that measure leadership effectiveness. Evaluating leaders based on team development and engagement.
Avoiding Common Servant Leadership Pitfalls
Servant leadership can become ineffective when leaders misunderstand its application:
- Confusing Service with Weakness: Servant leadership requires strength to make difficult decisions and hold people accountable. Service means helping people succeed, not avoiding confrontation.
- Neglecting Business Results: Serving people includes helping them achieve business objectives. Leaders who focus only on relationships without driving performance fail their teams and organizations.
- Assuming Universal Applicability: Some situations require directive leadership. Servant leaders recognize when circumstances demand immediate decision-making without extensive consultation.
Developing Your Servant Leadership Approach
This section guides you through building your personal servant leadership capabilities and creating organizational development plans. You’ll learn assessment techniques, skill-building strategies, and implementation timelines for sustainable leadership transformation.
Self-Assessment Framework
Before implementing servant leadership strategies, evaluate your current leadership approach:
Personal Leadership Inventory:
- How do you typically respond when team members make mistakes?
- What percentage of your meetings focuses on developing others versus reporting status?
- How often do you ask for feedback about your leadership effectiveness?
Organizational Culture Assessment:
- Do people feel safe bringing problems to leadership?
- Are promotion decisions based on technical skills or leadership capabilities?
- How does your organization handle conflict and disagreement?
Creating Development Plans
Servant leadership development requires intentional practice of specific skills over time. This isn’t a personality change but a strategic approach to leadership that can be learned and improved.
Development priorities typically include:
- Active listening techniques. Learning to understand before seeking to be understood.
- Coaching and mentoring skills. Helping others develop their capabilities and career prospects.
- Emotional intelligence development. Managing your own emotions while supporting others through challenges.
Implementation Timeline
Servant leadership transformation happens gradually:
Months 1-3: Foundation Building
- Begin regular one-on-one meetings with direct reports
- Practice active listening techniques in daily interactions
- Start asking for feedback about your leadership style
Months 4-6: Skill Development
- Implement structured coaching conversations
- Focus on developing others rather than solving problems for them
- Create transparency in decision-making processes
Months 7-12: Cultural Integration
- Align organizational systems with servant leadership principles
- Measure and track engagement and performance improvements
- Expand servant leadership development to other leaders
The Strategic Advantage of Servant Leadership
Organizations that successfully implement servant leadership create sustainable competitive advantages that are difficult for competitors to replicate. The culture and relationships built through servant leadership become organizational assets that drive long-term success.
Jay’s reflection on receiving Idaho’s Small Business Person of the Year award demonstrates this principle:
The Small Business Administration does not designate family ownership. So we won that as a family. How I think that’s just kind of a testament to us sticking together and working together.
This recognition came because Bestbath’s servant leadership approach created exceptional results for employees, customers, and the broader community. The award recognized the cumulative impact of putting service at the center of their business strategy.
Servant leadership works because it aligns with fundamental human needs for respect, growth, and purpose. When leaders consistently serve others, they create environments where people choose to give their best effort rather than doing the minimum required.
The transition to servant leadership requires commitment and patience, but the results speak for themselves. Organizations with servant leaders consistently outperform their peers in the metrics that matter most: employee engagement, customer loyalty, and sustainable growth.
If you’re ready to transform your leadership approach and create a culture that drives exceptional results through service, consider scheduling a complimentary strategy session with one of our experienced business coaches. We’ll help you develop a servant leadership strategy that aligns with your business goals and creates lasting competitive advantages.
Not sure if you're the bottleneck? Find out in 2 minutes →
