Matt Waller, dean emeritus of the Sam M. Walton College of Business, shares lessons learned from his Leadership & Organizational Behavior course he is teaching this fall in a series for Walton MBA students.
This article integrates leadership research with applied examples from Sam Walton, Doug McMillon, and Julie Royall, who leads the Walmart Neighborhood Markets in Northwest Arkansas.
Leadership Behaviors in Practice
As a part of the announcement of Doug McMillon as CEO of Walmart, he was at the Supercenter in Rogers, Ark. Julie Royall, an associate who started in an hourly position, was now the manager of this enormous Supercenter and was in the back of the store. Many people were waiting out front for Doug to come out and speak. Julie looked up and saw Doug. Doug came over to her, looked her in the eyes and talked with her. He said, “What are your goals with our company.” Julie said, “I want to be a market manager.” Today she is market manager over the Neighborhood Markets in Northwest Arkansas. (Thanks to Julie for speaking to our MBA students yesterday.)
Leadership behaviors are the visible actions leaders use to influence, guide, and support others. They differ from personality traits, which are relatively stable and not easily changed. Behaviors, in contrast, can be developed and improved. For this reason, organizations benefit not only from who leaders are but from what leaders consistently do.
Early leadership research emphasized concepts, which assumed that leadership effectiveness came from inherent traits such as charisma or intelligence. By the mid-twentieth century, scholars recognized the limitations of this approach. Leaders with impressive traits sometimes failed, while others with modest personal attributes succeeded by practicing deliberate behaviors. This recognition shifted the focus of leadership research toward what leaders do. That is, the observable, repeatable actions that influence performance and culture.
Sam Walton embodied this perspective. His practice of visiting stores, asking questions, and acting on associates’ ideas translated vision into daily action. His principle of sharing profits with associates was reinforced by consistent behaviors that shaped Walmart’s culture. Doug McMillon’s development illustrates a similar pattern. Early in his career, he learned to combine curiosity with humility in meetings with Walton, transforming listening into a core behavior that encouraged idea sharing. Julie Royall, who now manages an enormous Walmart Neighborhood Market business across Northwest Arkansas, experienced this culture when McMillon asked her about her career aspirations. That single behavior (taking time to ask and listen) signaled authentic interest and reinforced the company’s emphasis on empowering people.
Connecting Before Leading
Research consistently demonstrates that people judge leaders first on warmth and only then on competence (Cuddy, Kohut, & Neffinger, 2013). Warmth creates the conditions for trust and openness, while competence demonstrates the capacity to act effectively. Strength without warmth often produces fear and disengagement. Warmth without competence can lead to respect without results. Leaders who connect first and then lead establish both credibility and influence.
Warmth is more than friendliness. It includes behaviors such as calling associates by name, showing interest in personal well-being, and asking about aspirations. Royall emphasizes that her most important responsibility is to connect with people. She consistently calls associates by name, recognizing that such behaviors communicate dignity and belonging. She also stresses the importance of psychological safety. Leaders must know their people well enough that they will tell the truth, which is possible only when associates trust that speaking openly will not result in negative consequences. Psychological safety, as described by Edmondson (1999), accelerates learning because individuals feel safe to report problems, admit errors, and surface risks.
Royall connects this to business outcomes. Hiring and training new employees is expensive, and turnover is disruptive. Behaviors that increase retention, such as calling people by name or checking in during personal crises, save both money and organizational energy.
McMillon’s development further illustrates the sequence of connection before direction. Early in his tenure as CEO, his feedback suggested he took too long to make decisions. Over time, he became more decisive, a shift that became essential during the COVID-19 pandemic. He moved to daily stand-ups and empowered his team to act quickly. Because trust and connection were already established, accelerated decision-making was accepted and effective.
Balancing People and Results
Research at Ohio State University distinguished two clusters of behavior: consideration for people and initiating structure for results (Stogdill & Coons, 1957). Blake and Mouton’s (1964) Leadership Grid combined these dimensions, arguing that the most effective leaders are high in both.
Consideration behaviors include things like listening, empathy, and recognition. Walton’s “Management by Walking Around” was a structured practice of listening to associates, writing down their ideas, and acting on them. Royall applies similar principles. She views her role as being “in the corner” of her managers (supportive, present, and accessible).
Initiating structure behaviors include things like defining roles, clarifying goals, and demanding accountability. McMillon has reinforced this by clarifying Walmart’s constants (purpose and values) while leaving strategy and structure open to change. Royall demonstrates initiating structure through frequent store tours. She emphasizes that stores can “hit a ditch in a day” if leaders are absent, and so she checks merchandising, cleanliness, and operations herself.
Royall illustrates how both dimensions operate together. She is supportive but also holds managers accountable. She communicates frequently, which ensures that when difficult conversations occur, they are never a surprise. Her approach of asking “How can I help you succeed?” combines high consideration with high structure.
Authentic Leadership
Authentic leadership emphasizes alignment between values and actions. Leaders build trust when their words and deeds are congruent. Walton’s authenticity was evident in his willingness to admit mistakes, including the oversight that cost him his first store lease. McMillon has also emphasized authenticity by acknowledging product failures, such as the chili-lime chips promotion, and accepting responsibility.
Royall demonstrates authenticity in how she manages recognition. When her store’s performance drew praise from senior leadership during a shareholders’ meeting, she redirected the recognition to the store manager who had driven the results. For her, authenticity means elevating others and ensuring credit flows where it belongs. She also demonstrates authenticity in personal care. When associates face health crises, she checks in directly, reinforcing that leaders are always visible and accountable. As she often says, “People notice everything you do in this role.”
Authenticity also extends to recovery from mistakes. Leaders who admit errors and support others through theirs build credibility. Those who deny or deflect mistakes erode trust quickly.
Constants and Change
McMillon has emphasized that Walmart’s purpose and values remain constant, while everything else may change. The purpose, “save money, live better,” and the four values (respect, integrity, service, and excellence) are non-negotiable. Strategy, operating models, and even business formats are subject to change.
This distinction between constants and variables helps organizations adapt. Historical comparisons reinforce this point. Sears once dominated retail but declined by failing to adapt to digital commerce. Kmart, once a major discounter, also faltered. Walmart’s willingness to adapt strategy, while anchoring in purpose, sustains its relevance.
Why Leadership Behaviors Work
Warmth enables trust and information sharing. Competence adds clarity and results. Consideration builds loyalty, while structure ensures accountability. Authenticity sustains credibility during change. Together, these behaviors create conditions where associates trust leaders, engage in problem-solving, and adapt to new demands.
Leaders who connect first, balance people and results, and act with authenticity sustain performance and, in Royall’s words, “build lives” rather than destroy them.
References
Blake, R. R., & Mouton, J. S. (1964). The managerial grid: The key to leadership excellence. Houston, TX: Gulf Publishing.
Cuddy, A. J. C., Kohut, M., & Neffinger, J. (2013). Connect, then lead. Harvard Business Review, 91(7/8), 54–61.
Edmondson, A. C. (1999). Psychological safety and learning behavior in work teams. Administrative Science Quarterly, 44(2), 350–383. https://doi.org/10.2307/2666999
Fiske, S. T., Cuddy, A. J. C., & Glick, P. (2007). Universal dimensions of social cognition: Warmth and competence. Trends in Cognitive Sciences, 11(2), 77–83. https://doi.org/10.1016/j.tics.2006.11.005
Stogdill, R. M., & Coons, A. E. (Eds.). (1957). Leader behavior: Its description and measurement. Columbus, OH: Bureau of Business Research, Ohio State University.
Walton, S., & Huey, J. (1992). Sam Walton: Made in America. New York, NY: Doubleday.
