
The Hero Factor
10 minHow Great Leaders Transform Organizations and Create Winning Cultures
Introduction
Narrator: On January 15, 2009, Dave Sanderson was a passenger on US Airways Flight 1549. He was the last person to exit the plane after it crash-landed in the frigid Hudson River, an event the world would come to know as the "Miracle on the Hudson." After helping others and surviving hypothermia, he finally spoke to his boss. The first question wasn't about his health, his family, or the trauma he had just endured. It was, "Are you going to Michigan next week?" This single, jarring question reveals a profound disconnect—not just between two people, but between a company's operational needs and its human values. It's this very disconnect that author Jeffrey W. Hayzlett dissects in his book, The Hero Factor: How Great Leaders Transform Organizations and Create Winning Cultures. The book argues that true leadership isn't just about success; it's about making a conscious choice to build a culture where people are valued as more than just numbers on a spreadsheet.
The Hero Factor Equation: Balancing Profit and People
Key Insight 1
Narrator: At the heart of Hayzlett's framework is a simple but powerful equation: Operational Excellence + Hero Intensity = Your Hero Factor. This formula provides a new lens through which to evaluate any organization.
Operational Excellence is the more familiar side of the coin. It is the execution of a business strategy that yields consistent, reliable, and measurable results. It’s about efficiency, growth, and profitability—the "how" of a business. While essential, Hayzlett argues that by itself, it is incomplete and ultimately unsustainable.
The other, more crucial variable is Hero Intensity. This is a measure of a company's character and is composed of two parts: first, the organization's stated values and how authentically they are lived, and second, how the organization values its people—employees, customers, partners, and the community. This is the "why" behind the business.
When these two scores are combined, companies fall into one of six categories. "Heroes" are strong in both areas, balancing profit with people. In contrast, "Bottom Liners" have high Operational Excellence but low Hero Intensity; they are profitable but often have toxic cultures. "Struggling Do-Gooders" are the opposite, with high ideals but poor execution. The goal is not to sacrifice one for the other, but to recognize that they are deeply intertwined. A decline in Hero Intensity, as seen in Dave Sanderson's story, will almost inevitably lead to a decline in Operational Excellence.
Values Are More Than Words on a Wall
Key Insight 2
Narrator: Many companies have values. They are often printed on posters, featured in mission statements, and discussed in annual reports. However, Hayzlett contends that the true measure of a company's values is not what is written, but what is lived, especially under pressure. A company can become so enamored with the story of its values that it fails to notice when its actions no longer align.
The 2018 racial bias incident at a Philadelphia Starbucks serves as a stark example. Starbucks had built a powerful brand story around being a "third place"—a welcoming environment for all. Yet, on that day, a manager called the police on two black men who were waiting for a business associate. The company’s immediate reaction was shock: "That's not us!" But the incident revealed a critical gap between the company's story and the reality on the ground. The brand promise of inclusivity was not delivered.
Hayzlett argues this is a classic case of getting "stuck in your story." The company believed its own narrative so completely that it failed to continuously test whether its people were living those values with every customer, every day. The subsequent company-wide anti-bias training was a necessary step, but it highlighted a failure not of policy, but of culture. For values to be real, they must be operationalized and consistently demonstrated, not just proclaimed.
A Culture's True Test is How It Cares
Key Insight 3
Narrator: A company's culture can rise and fall based on its commitment to valuing people. Hayzlett uses the story of Liberty Tax to illustrate this dramatic shift. For decades, Liberty Tax was known for its vibrant, caring, and transparent culture—a true "Hero" company. Co-founder Martha O'Gorman describes a place where franchisees were supported, employees felt trusted, and the mission was shared.
This all changed when the company went public. The new leadership prioritized Operational Excellence above all else, transforming the organization into a "Bottom Liner." The culture of trust evaporated. O'Gorman, who managed a $20 million advertising budget, suddenly had her corporate credit card limit slashed and was reprimanded for minor expense report errors. Long-term, loyal employees were laid off while new executives received massive bonuses. The company stopped providing crucial off-season financial support to its franchisees, causing some to go bankrupt.
The result was a collapse in morale and trust. The company's Hero Intensity plummeted, and soon, its Operational Excellence followed as unhappy franchisees led to unhappy customers and declining growth. The story of Liberty Tax demonstrates that culture is not self-sustaining; it requires constant care, especially during times of change. When leaders forget to value their people in the quest for profit, they lose the very foundation of their success.
The Messy Reality of Building Inclusive Cultures
Key Insight 4
Narrator: Creating an inclusive culture is a cornerstone of Hero Intensity, but it is far from simple. It requires fostering psychological safety, an environment where people feel safe to take risks, speak up, and have real, often uncomfortable, conversations. Hayzlett points to the 2017 controversy at Google as a case study in the complexity of this challenge.
An engineer, James Damore, circulated a memo titled "Google's Ideological Echo Chamber," arguing that the underrepresentation of women in tech was partly due to biological differences and that Google's culture silenced conservative viewpoints. He claimed he lacked the psychological safety to express his opinions. In response, many female employees stated that Damore's memo itself made them feel psychologically unsafe. Google ultimately fired Damore for perpetuating gender stereotypes.
This incident reveals the inherent tension in building an inclusive culture. Whose psychological safety takes precedence? How does an organization balance free speech with the need to create a welcoming environment for all? Hayzlett argues that true inclusion is not about avoiding conflict but about having the courage to navigate it. It requires leaders to welcome diverse perspectives, challenge their own biases, and unite people around shared goals, even amidst disagreement. It is a messy, ongoing process, not a simple checklist.
Heroes Give More, Not Just Back
Key Insight 5
Narrator: The pinnacle of hero leadership is not just giving back, but giving more. This means moving beyond passive, transactional charity and actively empowering people. Hayzlett offers the story of Rob Ryan, founder of Ascend Communications, as the ultimate example. When Ascend was acquired by Lucent for $20 billion in 1999, Ryan didn't just enrich himself and his top executives. He set aside 10% of the sale—$2 billion—and distributed it among all employees, from janitors and secretaries to engineers.
His act created a record for the most millionaires made in a single day. But the impact was more profound than just the money. Employees gathered to thank him, sharing stories of how the money would pay for their children's college education or a parent's life-saving surgery. Ryan didn't just give back; he shared the wealth with the very people who helped create it, fundamentally changing their lives.
This is the essence of "giving more." It’s a philosophy shared by Hamdi Ulukaya, the founder of Chobani, who gave his 2,000 employees shares in the company, telling them it was a mutual promise to build something of lasting value together. This level of generosity and empowerment is what separates good companies from truly heroic ones. It redefines success as a shared endeavor, not a private reward.
Conclusion
Narrator: The single most important takeaway from The Hero Factor is that heroic leadership is a conscious and continuous choice. It is not a title one earns or a destination one reaches, but an active, daily decision to balance the demands of business with an unwavering commitment to human values. It is the choice to see people as individuals to be empowered, not commodities to be used.
The book challenges every leader to look in the mirror and ask what kind of legacy they are building. Is it a legacy defined solely by profits and market share, or is it one defined by the positive impact made on the lives of employees, customers, and the community? In a world of constant change and disruption, the ultimate question is not just whether your business will survive, but whether its story will be one worth telling.