Leadership is about people. The best leaders intuitively understand this reality and surround themselves with the best people possible. You can only ever accomplish so much alone. Achieving anything of significance usually requires leveraging the skills, talents and relationships of others. You need to be less worried about being the smartest person in the room and more focused on the collective intelligence of your organization. Over time, your own IQ end up being the average IQ of the ten people you spend the most time with.
It’s very important that leaders are clear about and enforce standards of acceptable behavior. You will never win long-term in an “anything goes” environment. Winning isn’t everything. Moreover, people will get easily confused if you take a situational approach to moral and ethical issues. If something is wrong for one person it is equally wrong for someone else (even in family businesses). One of my favorite quotes of all time is that “we are what we tolerate.”
There is nothing more important a leader can bring to an organization than his/her values. It is the organizational DNA. Our values define us.