Reading time: 4 – 6 minutes
In my last article, I introduced the Leader-Member Exchange theory or LMX as it’s known. LMX suggests that every leader has a unique, individual relationship with each follower and that each of these relationships is different in terms of the quality of the interactions. LMX also goes on to suggest that as leaders we have a definite “in-group” and “out-group” and the group individual followers end up in will determine the quality of the interaction and relationship we have with each follower.
So, if the Leader-Member Exchange theory is accurate and we accept that we have an in-group and an out-group how can we use this information to lead more effectively? To me the secret to overcoming the in-group / out-group dynamic is first accepting that it exists.
Recognizing the Dynamic
When we’re able to recognize who we’ve put in our in-group and out-group we can use the rest of LMX to our advantage. Remember, at the heart of LMX is the notion that we have a unique and individual relationship with each of our followers.
When we recognize that we have relegated someone to our out-group, we’ll need to take the time and do some Follower Reflection about our relationship with that individual to better understand why we have them in our out-group. Are they there because they really are unmotivated or incompetent, or do we just perceive them to be so because we haven’t provided the opportunities and support they need to succeed? In other words, is their being in our out-group a result of their failings or ours?
We can look at the same dynamic with those in our in-group as well. Are the folks in our in-group really that motivated and competent? Or was there some other, perhaps interpersonal reason that they ended up in our in-group. Again, doing some Follower Reflection about our relationship with these individuals will give us a better understanding of why we have them in our in-group.
Self-fulfilling Prophecies
Without some kind of “purposeful intervention” in our thinking and consequent behavior, once someone is put in either one of our groups, it’s very hard to move them. This, of course, has to do with the self-fulfilling prophecies that our two groups become. Since we tend to overlook failings of those in the in-group, only a very major issue will get them relegated to the out-group. For those in the out-group, most times just being out is enough for us to effectively ignore any great work that they do.
Therefore, the other thing we need to recognize is the effect of the self-fulfilling prophecies on our two groups. I’m reminded of an experiment done many years ago with teachers and students where the teachers started the year being told that their class was full of either exceptional students or low performing students. In reality the students were grouped in no special way. By the end of the year, the students in each group were performing to the misinformed expectations of their teachers. The lesson of the experiment is that folks will perform to the level which they are expected.
Changing Behavior
In order to break this self-fulfilling prophecy, we need to break our pattern of expectation. We need to take the time and energy to build a deeper relationship with those in both groups, but especially those in our out-group. Make no mistake, taking such action will feel weird for everyone. It will feel weird for us because we need to make a determined effort to break our own behavior towards those we had previously considered “out”. It will feel weird to those in the in-group because they are used to our exclusive attention and support.
For those in the out-group it will feel weirdest of all, because they are not used to having our attention and support at all. The first reaction we are likely to get is one of wariness. There will be folks who don’t trust our motives and will remain guarded. This is only natural. But we will need to continue to sustain our efforts.
It would be naive to think that we can move everyone to the in-group. While almost all employees go to work wanting to do a good job, there really are those that are unmotivated and incompetent and no matter what we do to bring them into the in-group they will still remain unmotivated and incompetent.
So to me the usefulness of understanding LMX is being able to use Follower Reflection to deepen our relationship with folks in both groups, really to make sure that we have each individual in the right group and more importantly for the right reasons. We could be wasting valuable talent because we have someone in our out-group for the wrong reasons. Similarly we could be hurting ourselves and our organization because we are “protecting” someone in our in-group who is incompetent.
Leader’s Reflection: As leaders, we need to understand the Leader-Member Exchange theory so that we can take the time to recognize who is in both our in-group and out-group. From there we can take the time and effort to deepen our relationship with each individual to really make sure that we have each individual in the right group, for the right reasons.







Very insightful article series. Your suggestions on changing the in/out group dynamic is right on target. I believe you are correct, that our assignment, conscious or not, will dictate how we relate to the individuals and in the case of the “Out” group we are very likely doing them, the company, and ourselves a disservice.
I look forward to reading more.
Tom, I think that you’ve addressed the dinosaur in many a management room.
Leaders have always hired in their own image and we cannot ignore the fact that we are hard-wired to like people like us, which begs the need to do the reflection and assessment that you suggest.
In too many organizational cultures, those on the management track are the equivalent of the cool or popular kids in high school. Indeed, those in the “in crowd” are afforded passes but this issue is magnified by today’s LeaderShift whereby personal power often trumps positional power. The unbalance of power in the hands of followers who do not merit it or are unprepared to use it wisely is often at the root of creating un-coachable prima donna employees and creating toxic workplaces.
Obviously, I’m loving this series. But here’s a question for you: do we always want to move people into our in-group, or are there valid and preferable reasons to relegating someone to our out-group?
Tom,
I wanted to congratulate you on having this post selected to be part of February’s Carnival of Trust, hosted this month by Bret L. Simmons.
The Carnival of Trust is held monthly and showcases the top blogposts dealing with the subject of trust in business, politics and community. We think you have touched on a really unique and interesting concept here with the LMX. We’re excited to hear more on it and from you in the future!
To see the Carnival in its entirety, please go to: http://www.bretlsimmons.com/2010-02/february-2010-carnival-of-trust/
Again, congratulations!
Best,
Kristin
http://www.trustedadvisor.com/trustmatters
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