Rethinking: PERMA-Lead – Why Leadership Requires a Radical Shift in Perspective

„Engaged teams outperform managed ones.“

The Rethinking Impulse as a RethinkAudio – Listen. Reflect. Analyze. Advance.

Leadership has evolved significantly over the past decades, yet one paradigm stubbornly persists: the belief that leadership is primarily about control, setting targets, and incentivising performance. PERMA-Lead, a concept derived from Martin Seligman’s PERMA model of well-being, is often misinterpreted as a soft, almost therapeutic leadership approach designed merely to create a pleasant work environment. However, this perception constitutes one of the greatest misunderstandings surrounding PERMA-Lead – and underscores the urgent necessity for a profound rethinking.

Misconceptions, Misinterpretations, and Toxic Mindsets Around PERMA-Lead

The notion that a leader’s role in applying PERMA-Lead is limited to ensuring that employees feel good about themselves fundamentally misrepresents the essence of this model. Several erroneous assumptions persist:

“Leadership is not a wellness programme.” This belief suggests that leadership should focus exclusively on efficiency, productivity, and financial results, reducing human dynamics to mere performance metrics. Yet organisations are not mechanical constructs; they are social ecosystems where emotional intelligence, psychological safety, and intrinsic motivation drive long-term success.
“Employees do not need to be happy; they need to perform.” This toxic mindset disregards the intrinsic link between well-being and performance. A vast body of research confirms that motivated and emotionally balanced teams are demonstrably more productive, innovative, and resilient in the face of challenges.
“PERMA-Lead is just another trend that won’t survive in the harsh realities of business.” This perspective betrays a fundamental misunderstanding of the psychological mechanisms underpinning effective leadership. Far from being a fleeting trend, PERMA-Lead is rooted in rigorous scientific inquiry and represents a structural shift in leadership philosophy.
“Leadership does not require a psychological foundation.” This view fails to acknowledge that all human interactions are shaped by psychological dynamics. Leaders who disregard this dimension operate in a blind spot, failing to comprehend their own influence.
“A leader who is too kind will not be taken seriously.” Many still conflate authority with harshness, assuming that respect is earned through dominance. True authority, however, stems from credibility, trust-building, and the capacity to inspire. Leaders who misinterpret PERMA-Lead often resort to command-and-control tactics, unwittingly stifling motivation and autonomy.

These misconceptions reveal a widespread lack of understanding of PERMA-Lead, demonstrating that many leaders either fail to grasp its core principles or apply them inconsistently. This is why a fundamental shift in mindset – a rethinking – is imperative to position PERMA-Lead not as a superficial add-on, but as a strategic leadership foundation.

Defining PERMA-Lead in Depth

PERMA-Lead translates the five pillars of Martin Seligman’s Positive Psychology model into the realm of leadership. Its fundamental components are:

Positive Emotions – Leaders who actively foster a culture of positivity enhance their teams’ resilience and adaptability.
Engagement – Individuals perform at their best when immersed in tasks that align with their strengths and stimulate intrinsic motivation.
Relationships – High-performance teams do not emerge from rigid goal-setting alone; they thrive in environments of trust, psychological safety, and meaningful interpersonal connections.
Meaning – People seek purpose in their work. Leaders who successfully convey a larger vision foster deep-rooted motivation.
Accomplishment – The experience of progress and competence is a key driver of sustained motivation and self-efficacy. Leaders who make achievements visible nurture long-term commitment.

PERMA-Lead does not imply that leadership should be preoccupied solely with well-being. Rather, it demands that leadership be strategically aligned with scientifically validated principles that enhance performance, motivation, and team cohesion over the long term.

Philosophical, Psychological, and Depth-Psychological Perspectives

From a philosophical standpoint, PERMA-Lead addresses the fundamental question of how leadership perceives human nature in the workplace. Are individuals merely rational economic agents (homo economicus), motivated solely by external incentives? Or are they dynamic, meaning-seeking beings whose motivation is driven by intrinsic fulfilment and cooperative endeavour? This question is central to leadership in an era where rigid hierarchies are giving way to more fluid, adaptable organisational structures.

From a psychological perspective, PERMA-Lead is grounded in the understanding that motivation is not driven by pressure, but by purpose and positive emotional states. The Self-Determination Theory highlights autonomy, competence, and relatedness as the three fundamental psychological needs that fuel intrinsic motivation and long-term engagement.

From a depth-psychological perspective, leadership always has an unconscious dimension. Leaders who uncritically reproduce authoritarian patterns often project their own biographical imprints onto their leadership style. Those who consciously embrace PERMA-Lead, however, have the opportunity to break these dysfunctional cycles, fostering an environment where employees can thrive both professionally and psychologically.

Why Rethinking PERMA-Lead Is Essential for Leadership

Leaders today face a paradox: they are expected to maximise performance while simultaneously cultivating a humane and resilient organisational culture. PERMA-Lead offers a resolution to this dilemma—but only if it is understood not as an optional supplement, but as a fundamental leadership strategy.

Emotionally intelligent leadership reduces long-term attrition and burnout.
Moving beyond traditional power structures unlocks innovation and agility.
Recognising the significance of positive emotions, meaning, and intrinsic motivation establishes a future-proof work culture.

Leaders who neglect these realities jeopardise not only their organisations’ success, but also their own mental well-being. The question is no longer whether this transformation is necessary, but whether it will be embraced proactively or resisted until external pressures force adaptation.

The R2A Formula: Implementing PERMA-Lead in Leadership Practice

Reflect: The Foundation of Self-Awareness

What outdated or dysfunctional beliefs about leadership do I still hold?
How does my leadership style – consciously or unconsciously – impact my team’s well-being?
What role do purpose and motivation play in my own professional satisfaction?

Analyze: Understanding the Mechanisms at Play

What psychological principles underpin motivation and engagement?
How can I cultivate an environment that fosters strengths-based development and intrinsic motivation?
What structural or cultural barriers in my organisation hinder transformational leadership?

Advance: Translating Insights into Daily Leadership Practice

Establish active listening and empathetic communication as core leadership competencies.
Create frameworks that empower individuals to leverage their strengths and intrinsic drivers.
Articulate and embody clear values, ensuring authenticity in leadership behaviour.

Key Learning: Leadership Means Embracing Psychological Reality

PERMA-Lead is not an ancillary concern – it is a leadership philosophy grounded in scientific insight. Leaders who recognise that motivation and well-being are not antithetical to performance, but rather its precondition, will foster teams that are not only productive but also resilient and deeply engaged. The essential rethinking lies in understanding leadership not as a mechanism of control, but as the deliberate cultivation of culture, purpose, and engagement.