People in leadership roles are tested on the daily: operating in a difficult economy, the state of constant change, plus managing the usual workplace issues require focus and the right mindset to tackle and overcome.
Actually, scratch that. It’s not just leaders who face these kinds of challenges!
Mostly everyone in a work setting, whether they operate as part of a team, are in a middle management or leadership role, faces such challenges. There’s a concept which I use in my coaching practice that is really helpful for just about anyone, but in particular those with leadership responsibilities, in that it brings values to life, in a tangible way.
It’s the concept of ‘above the line’ and ‘below the line’ thinking.
First popularised by financial educator Robert Kiyosaki and explored in depth by organisational culture expert Carolyn Taylor in her book ‘Walking the Talk’, this simple concept provides a valuable tool for leaders striving to foster responsibility, build ownership and resilience within their teams..
At its core, it’s a philosophy about choice: how we approach situations—particularly challenging ones—and how this impacts both ourselves and those we lead.
‘Above the line’ thinking represents a proactive, growth-oriented mindset, while ‘below the line’ thinking often involves reactive, defensive, or fear-driven responses. Imagine a dividing line between two mental states:
When we operate ‘above the line,’ we’re adopting a stance of curiosity, responsibility, and possibility. This approach is characterised by accountability, openness to learning, and a commitment to finding solutions. Leaders above the line are often calm, centered, and focused on growth rather than defense. They engage with challenges in ways that bring value to their teams and themselves, even in the face of uncertainty.
‘Below the line’ thinking, on the other hand, can be reactionary and driven by fear or self-protection. It’s easy to fall into this mindset: it’s comfortable, familiar, and, most importantly, it’s wired into our brains. Here, we might blame others, avoid accountability, or resist new ideas. Leaders below the line might appear closed off, overly critical, or quick to judge—a position that limits growth and creates a climate of resistance.
The idea behind taking the time to locate where you are in relation to this line (and yes, it’s normal for your position to be fluid and changeable) is that those who recognise and adjust their thinking patterns are better positioned to succeed. This is especially relevant in the context of leadership, where mindset impacts every decision and action.
Our Brains Default to Below the Line
Don’t be hard on yourself if you find you are below that line. Our tendency to operate in this space is deeply rooted in human psychology. The human brain is wired for survival; historically, it evolved to avoid threats, protect against danger, and preserve energy. This ancient wiring meant that the brain, facing a challenge, would often react with a fight-or-flight response—something that translates today into defensiveness, or resistance.
Understanding this tendency is critical. By acknowledging the brain’s bias toward safety and familiarity, you can intentionally choose to shift to an above the line perspective. It takes self-awareness and, sometimes, a gentle reminder, but by observing our tendencies, we gain control over them.
The Advantage of Above the Line Thinking
Why should you care about moving ‘above the line’? The impact is multifaceted, touching on adaptability, empowerment, and decision-making. Leaders who stay above the line are able to create an environment where resilience, collaboration, and innovative thinking thrive. Here’s why it matters:
1. Adaptability and Resilience
With the way our modern world operates, adaptability is an essential skill. Leaders who adopt above the line thinking are more equipped to handle change, see obstacles as opportunities, and respond to setbacks with resilience. This agility is particularly valuable in the New Zealand market, where the bulk of businesses are on the smaller size and shifts can ripple quickly across sectors.
2. Empowering Teams
A leader’s mindset sets the tone for the entire team. By modeling above the line thinking, leaders encourage their teams to take ownership of their work, engage creatively with challenges, and focus on solutions. This approach fosters a growth-oriented culture that emphasises collective responsibility and learning.
3. Enhanced Decision-Making
Every day, leaders make decisions that affect the direction of their organisation. Those operating above the line are more likely to make thoughtful, strategic choices rather than reactive ones
Real-life scenarios: Locating Yourself
Translating these ideas into practice can make a world of difference. Here are a couple of example scenarios where above the line thinking can transform your approach, and of course there are many more:
1. Dealing with Team Conflicts
Consider a scenario where two team members are in conflict. The leader has a choice: respond below the line by blaming, ignoring the issue, or becoming frustrated, or choose above the line by facilitating an open, constructive conversation. By choosing the latter, the leader helps the team members resolve their issues in a way that strengthens communication and collaboration.
2. Responding to Business Challenges
Imagine that you are facing the loss of a major client. The below the line response might be to view it as a failure, and blame the team, or external factors. An above the line approach, however, sees this loss as an opportunity to analyse service gaps, learn from the experience, and improve. This kind of constructive response strengthens both the team and the business, preparing them for future challenges.
Practical Tips: Encouraging Above the Line Thinking
Building a culture of above the line thinking starts with leadership, but can expand to the entire team. Here are some strategies to build this mindset:
- Daily reflection: encourage leaders and their teams to reflect on daily decisions, considering where they operate ‘above the line’ and where they might improve. This practice builds self-awareness over time.
- Accountability groups: checking in regularly on mindset and goals, in smaller groups, helps keep one another accountable for staying above the line.
- Coaching and mentorship: In the New Zealand market, where it feels like there are only a few degrees of separation and often businesses are closely interconnected, having a practice of coaching or mentorship can help to provide external perspectives, and support for maintaining that above the line approach.
It’s a choice
The choice between ‘above the line’ and ‘below the line’ thinking is ultimately about awareness and intent. Leaders who understand this concept can consciously navigate challenges with a mindset that fosters growth, responsibility, and collaboration. And in New Zealand’s unique business environment, this approach is particularly valuable. A reputation for resilience, adaptability, and thoughtful leadership not only strengthens teams but also builds trust with clients, partners, and the community.
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Could you commit to operating above the line? This could be an amazing personal goal for next year. In doing so, you could help to unlock new possibilities, cultivate great teams, and help drive your organisation towards lasting success.
As always, please get in touch if you have questions, or are in need of support or advice, email us at hello@thepeopleplace.co.nz or call us on +64 9 300 7224.