Be a Leader, Not a Control Freak

Pfeffer believes today's leaders need enough confidence to act but enough humility to realize they don't know everything. They should let employees influence decisions and listen when they say the company is getting off course. "If you're going to make all the decisions, you might as well hire idiots," says Pfeffer. "They're cheaper."

Shawn Ramsey, founder of Crossroads PR in Raleigh, N.C., admits she was a bit of a control freak when she started her company four years ago, but she's learned to empower the company's nine employees.

Ramsey, 37, thinks she has great influence over the company's reputation, vision, pricing, target customer lists and projections, but she feels her influence is more limited in areas such as motivation. "If someone isn't dedicated or loyal to your company, there's only so much you can do to change that," she says.

Lowe thinks leaders have to believe they can lead. For better or worse, perception is still nine-tenths of reality. "[My clients] are thinking, 'This man is holding a pair of scissors, so I'd better be really nice,'" Lowe says with a chuckle. "It's a very, very fine balance."