52 pages • 1-hour read
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Maxwell argues that effective leadership requires the ability to anticipate, accept, and systematically address problems rather than avoid them. He illustrates this principle through Sam Walton’s journey from small-town variety store owner to founder of Walmart. When discount retailers like Herb Gibson entered Arkansas in the 1960s, Walton faced a critical choice: resist the inevitable shift in retail or adapt. He chose to study the discount concept thoroughly, opened the first Walmart in 1962, and continued solving successive challenges—improving distribution through centralized systems, managing debt by taking the company public, and ultimately building America’s largest retail chain. Maxwell contends that this problem-solving mindset distinguishes successful leaders from those who complain about circumstances beyond their control.
Maxwell identifies five qualities of effective problem solvers: They anticipate difficulties rather than expect smooth paths; they accept reality instead of denying problems exist; they maintain perspective on the larger mission without getting lost in details; they address challenges sequentially rather than attempting to fix everything simultaneously, and they avoid making major decisions during low points. This framework reflects the pragmatic, business-oriented leadership philosophy prevalent in late 20th-century American management literature, where individual resilience and adaptability were prized above systemic critique.
The chapter offers a TEACH method (Time, Exposure, Assistance, Creativity, Hit it) for systematically approaching problems. Maxwell reinforces his message with the story of boxer Gene Tunney, who, after breaking both hands early in his career, transformed from a power puncher into a skillful technical boxer and still achieved championship status. The underlying assumption throughout is that obstacles can be overcome through determination and strategic thinking—a perspective that empowers individuals, though it may not fully account for structural barriers some leaders face.
Maxwell claims that relationship-building stands as the most critical leadership skill, emphasizing that technical knowledge means little if leaders cannot connect meaningfully with others. He illustrates this through the life of physician William Osler, who revolutionized medical education by prioritizing human compassion alongside scientific knowledge. Osler brought medical students out of lecture halls to interact directly with patients, founded professional associations to foster community, and demonstrated extraordinary care. Maxwell uses Osler’s example to demonstrate that exceptional leaders succeed not despite their focus on relationships, but because of it.
Maxwell outlines three essential practices for developing strong relationships. First, leaders must “have a leader’s head” by understanding human psychology—recognizing that people universally desire to feel valued, need encouragement during low moments, and respond when leaders address their needs (106). Second, leaders must “have a leader’s heart” by genuinely caring for others rather than viewing them as means to an end (107). Third, leaders must “extend a leader’s hand” by actively helping people and prioritizing what one can give rather than what one can extract (108). This framework reflects the tradition of servant leadership popularized by Robert Greenleaf in the 1970s, though Maxwell presents it with practical business applications. He cites survey data indicating that employers value interpersonal skills (84% identify it as one of the most important traits in an employee) far above formal education and experience (only 40% of employers rank this as a top trait), suggesting that relationship competence has become increasingly central to professional success in modern organizational contexts (106).



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