Ever feel like you’re doing everything “right” as a leader—yet struggling with burnout, turnover, or disconnection in your team?

You’re not alone. Many local business owners in Hawaii are working harder than ever to keep good people, navigate rising costs, and stay compliant with complex laws_Hawaii Employer Strugg…. But there’s something deeper beneath the surface that’s often overlooked: how we see our people—and how we see ourselves as leaders.

At PayrollHR Hawaii, we’ve been exploring the principles of Servant Leadership—a philosophy that flips the traditional power model on its head. Instead of asking “How can my team serve the business?”, we ask, “How can I serve my team so the business thrives?” (Greenleaf, 1977).

But we’re not stopping there.

We’re taking these timeless leadership concepts and grounding them in something even more powerful: the Lokahi Triangle—the Hawaiian model of harmony between self, others, and the environment. This fusion is what we call Leading in Lokahi—a culturally rooted, values-aligned approach to leadership that honors our people and our place.

Let’s start with a foundational shift.

The Big Mindset Divide: Theory X vs. Theory Y
In the 1960s, psychologist Douglas McGregor introduced two distinct leadership mindsets:

Theory X: Assumes people are lazy, unmotivated, and need constant supervision.

Theory Y: Believes people are naturally driven, want to grow, and will thrive with the right support (McGregor, 1960).

Most of us were taught—explicitly or implicitly—to lead with a Theory X mindset. Control. Compliance. Rewards and punishments. Layers of oversight.

And yet, in Hawaiʻi, this mindset creates friction. It goes against the grain of our cultural values: trust, respect, relationship, and kuleana (responsibility).

It’s time to evolve.

Seeing Our People as Partners, Not Problems
When we shift to a Theory Y mindset, we begin to see:

• Employees as capable and self-motivated
• Work as meaningful, not just a paycheck
• Leadership as guidance, not control

In short, we start leading from a place of Lokahi—honoring both individual potential and collective well-being.

Imagine how this shift could ripple through your workplace:

• Less micromanagement, more accountability
• Fewer power struggles, more collaboration
• Lower turnover, deeper engagement

It’s not just idealistic—it’s practical. Especially in Hawaiʻi’s tight labor market, we need workplaces that people want to stay.

So Where Do You Start?
This week, try this simple reframing exercise:

Instead of asking: “Why can’t they just do what I ask?”
Ask: “What support, clarity, or belief might they be missing right now?”

You might be surprised by what shifts.

This is the first in a series where we’ll explore how to adapt Servant Leadership into Living Lokahi Leadership—not as a buzzword, but as a grounded, actionable framework for small business owners in Hawaiʻi who want to lead with more ease, heart, and harmony.

We’ll cover topics like:

• Growth mindset and employee development
• How to measure success in culturally grounded ways
• Legacy-building through leadership
• Creating workplaces that reflect the Aloha Spirit

If you’re ready to lead from a deeper place—and bring more Lokahi into how your team works—stay tuned.

You don’t have to do it all alone. We’re here to support you every step of the way.

With care,
Donna
Founder, PayrollHR Hawaii
#LeadWithAloha #LokahiAtWork

References
Greenleaf, R. K. (1977). Servant Leadership: A journey into the nature of legitimate power and greatness. Paulist Press.

McGregor, D. (1960). The Human Side of Enterprise. McGraw-Hill.

Servant Leadership Academy. (2025). Servant Leader Mindset .