Build with Leila Hormozi - Episode 289: Are You Leading or Just Reacting?

Release Date: June 25, 2025
Host: Leila Hormozi
Podcast Description: How can you create an unshakeable business? Leila Hormozi, who crossed $100M by age 28 and is scaling acquisition.com into a billion-dollar portfolio, shares invaluable lessons on scaling big businesses and aiding portfolio companies. Buckle up, Let's BUILD.

Introduction

In Episode 289 of Build with Leila Hormozi, titled "Are You Leading or Just Reacting?", Leila delves deep into the critical distinction between reactive and proactive leadership. Drawing from her extensive experience in scaling businesses, she emphasizes the importance of shifting from merely solving immediate problems to strategically preventing future challenges.

Reactive vs. Proactive Leadership

Leila opens the episode by reflecting on her recent quarterly planning sessions. She highlights a recurring theme: the stark contrast between reactive and proactive leadership.

[00:02] A: "Being reactive means you're always solving problems... you are working on how am I going to prevent this from happening."

Leila echoes this sentiment, asserting that while reactivity ensures problem-solving, proactive leadership focuses on preventing issues before they arise. She emphasizes that the best leaders don't just address today's problems but anticipate and mitigate tomorrow's challenges.

The Pitfalls of Being Reactive

Leila discusses the deceptive nature of reactivity. Although it feels productive, it often traps leaders in a cycle where their schedules are consumed by unforeseen issues, leaving little room for strategic planning.

[12:45] Leila: "Reactive leadership feels urgent. It feels very need to happen right now. It feels chaotic, it feels stressful."

She explains that being overly reactive can prevent leaders from gaining a holistic view of their business, thereby stifacing growth and innovation. This constant firefighting can lead to stagnation, as leaders are too entrenched in day-to-day challenges to drive their vision forward.

The Importance of Planning Ahead

Transitioning from reactivity to proactivity requires a mindset shift. Leila emphasizes the necessity of dedicating substantial time to future planning rather than being bogged down by current issues.

[20:30] Leila: "The shift that has to occur to get out of this is one that everyone has to go through and you have to go through it multiple times in your business journey."

She advises that leaders should allocate 40-60% of their time to forward-thinking activities. This includes building systems, integrating new technologies, auditing organizational structures, and designing strategies that are adaptable to the evolving market landscape.

Framework for Proactive Leadership: Look Up, Look Around, Look Ahead

To aid leaders in this transition, Leila introduces a practical framework:

1. Look Up

Assess whether you're too immersed in execution to envision the future.

[25:10] Leila: "When's the last time you thought about what's going to happen six months from now?"

2. Look Around

Identify bottlenecks and inefficiencies by diagnosing root causes rather than just addressing symptoms.

[30:20] Leila: "If you are not able to diagnose the root cause... then it means like I'm again too entrenched to look around."

3. Look Ahead

Anticipate future challenges and proactively implement solutions to prevent them.

[35:45] Leila: "What's going to break next if nothing changes and what do I need to do now to prevent it from breaking?"

This framework encourages leaders to step back from daily operations, analyze their business environment comprehensively, and implement strategies that ensure long-term stability and growth.

Behavioral Shifts for Proactive Leadership

Leila underscores that shifting to proactive leadership is not just about strategic planning but also about personal behavior and mindset.

[42:15] Leila: "Behavior leads emotion. That means you do not wait to feel like a proactive leader. You start acting like one today until that identity catches up."

She advocates for intentional actions that cultivate a proactive identity. This includes blocking time in your calendar for strategic planning, delegating authority to empower team members, and fostering a culture where team members are encouraged to think critically rather than just seek guidance.

Practical Tips for Leaders

To embody proactive leadership, Leila provides actionable strategies:

1. Block Time for the Future:

   • Allocate dedicated time in your schedule that is non-negotiable, ensuring uninterrupted focus on strategic planning.
   • [48:30] Leila: "If you block time to work on the future and then you're like, oh, I couldn't because I had to take care of this fire... you have to move it to a different day or whatever."

2. Delegate Tactical Decisions:

   • Empower your team by delegating not just tasks but also the authority to make decisions within their purview.
   • [50:10] Leila: "If you can build frameworks that people can use to make decisions, you can get out of that so much faster."

3. Train Your Team to Think:

   • Encourage problem-solving and critical thinking by prompting team members to consider solutions before seeking assistance.
   • [52:00] Leila: "Ask your way back to them. What do you think? I'd like to know what you think before I answer."

4. Self-Reflection:

   • Regularly audit how you spend your time to ensure that a significant portion is dedicated to building and strategizing rather than just reacting.
   • [55:20] Leila: "Look at your last week, audit your calendar, and ask how much of it was planned by you versus taken by others."

Conclusion & Key Takeaways

Leila wraps up the episode by reiterating the essence of proactive leadership. She emphasizes that leadership is about intentionality and designing systems that foster long-term success rather than short-term fixes.

[58:15] Leila: "If you don't lead your time, your time's gonna end up leading you and your job as a leader."

Key Takeaways:

1. Shift from Reactive to Proactive: Prioritize long-term planning over immediate problem-solving.
2. Allocate Time Strategically: Dedicate 40-60% of your time to future-oriented tasks.
3. Implement the Look Up, Look Around, Look Ahead Framework: Use this approach to evaluate and enhance your leadership effectiveness.
4. Empower Your Team: Delegate authority and encourage autonomous problem-solving.
5. Regular Self-Assessment: Continuously audit your time and strategies to ensure alignment with your business goals.

Leila concludes with a motivational note, encouraging leaders to take control of their time and prioritize intentional actions that build a resilient and forward-thinking organization.

Stay Tuned: For more insights on scaling your business and effective leadership, subscribe to Build with Leila Hormozi with new episodes every Monday and Wednesday!