34 - Why Rules Exist: Leadership Through 'Why,' 'What,' and 'How'

Understanding the Purpose of Structure, Culture, and When to Challenge or Reinforce Rules

Rules Are More Than Just Guidelines—They Are Leadership Tools

Every organization operates on rules. Some are formal—written policies, procedures, and codes of conduct. Others are informal—unspoken norms, traditions, and expectations. But all rules, whether explicit or implicit, shape the culture and effectiveness of an organization.

The best leaders don’t just enforce rules blindly. They understand why rules exist, what impact they have, and how they should be applied, challenged, or evolved over time.

Mismanaging rules—whether through rigid enforcement or careless disregard—can lead to disengagement, inefficiency, and frustration. The goal isn’t to create an environment burdened by unnecessary bureaucracy but to design a system where structure enhances performance and culture rather than stifles it.

So, how should leaders think about rules? Let’s break it down through three essential leadership perspectives: Why, What, and How.

The 'Why' of Rules: Understanding Their Purpose

Before applying or challenging a rule, leaders must first ask: Why does this rule exist?

Rules should serve a purpose—whether it's maintaining safety, driving efficiency, ensuring fairness, or aligning with strategic goals. But too often, rules persist simply because “that’s the way we’ve always done it.”

Key Questions to Assess the 'Why' of a Rule

• What problem was this rule originally designed to solve?

• Is this rule still relevant in today’s context?

• Does it create value, or has it become an obstacle?

• Is it universally applicable, or does it require flexibility?

Case Study: The Danger of Stale Rules

A financial firm had a rule that all new hires needed six months of internal experience before leading client meetings. Initially, this rule was established to ensure competency and confidence. However, as the industry evolved, the firm began hiring experienced professionals from outside. The rule, once useful, became a barrier—causing unnecessary delays and frustrating high-caliber recruits. Leadership eventually reassessed and adjusted the rule to allow exceptions for experienced hires.

Leadership Insight: If a rule no longer serves a clear, strategic, or ethical purpose, it’s time to reconsider it.

The 'What' of Rules: The Impact They Have

Rules don’t exist in a vacuum. Every rule, policy, or cultural norm has an impact—on people, productivity, and engagement. Leaders must be attuned to these effects, ensuring that the rules in place serve their intended function without unintended negative consequences.

Signs a Rule May Be Having a Negative Impact

• It creates unnecessary friction. Employees struggle to work within its constraints.

• It prioritizes process over outcomes. The rule focuses on compliance rather than results.

• It fosters disengagement. People follow the rule out of obligation, not belief in its necessity.

• It contradicts other rules or values. It creates conflicting expectations across the organization.

Reflection Exercise: The Rule Audit

Leaders should periodically review the effectiveness of rules. Consider:

1. What are the top three most frequently cited rules in team discussions?

2. Are those rules driving efficiency or creating barriers?

3. When was the last time leadership reviewed these rules?

Leadership Insight: Every rule has trade-offs. Make sure the benefits outweigh the burdens.

The 'How' of Rules: Reinforcing or Challenging Them

Once a leader understands why a rule exists and what impact it has, the next step is determining how to apply, challenge, or evolve it.

When to Reinforce a Rule

• It aligns with core values and mission. If a rule protects organizational integrity, reinforcing it strengthens culture.

• It ensures fairness and clarity. Rules that provide consistency in decision-making should be upheld.

• It drives efficiency and effectiveness. If a rule eliminates chaos and improves productivity, it’s worth keeping.

When to Challenge a Rule

• It discourages innovation or flexibility. If a rule prevents progress, it needs to be reconsidered.

• It serves no current strategic purpose. If a rule exists “just because,” it may need elimination.

• It disproportionately impacts certain individuals or teams. If it creates inequity, leaders must address it.

Case Study: Balancing Compliance and Innovation

A tech company implemented a rigid approval process for new software features to maintain quality. While the rule was effective initially, it slowed product development as the company scaled. Engineers voiced frustrations, and the leadership team ultimately revised the process to introduce a fast-track lane for low-risk innovations, keeping quality control intact while boosting speed.

Leadership Insight:

Rules should be living, evolving frameworks—not rigid barriers.

Leadership in Action: The Balancing Act

A senior leader at a fast-growing company noticed that an outdated rule required every new project to go through three separate levels of approval. Originally, the rule was meant to prevent misalignment. But as the company scaled, this approval process became a bottleneck—slowing down innovation rather than ensuring quality.

Instead of eliminating the rule entirely, the leader adjusted it. They redefined the approval process to allow lower-risk projects to move forward with fewer approvals while still requiring strategic initiatives to undergo thorough review.

The result? A balance between efficiency and oversight—maintaining structure without unnecessary slowdowns.

Leadership Insight: Rules should evolve alongside an organization’s needs. If a rule no longer makes sense in its original form, leaders must adapt it rather than ignore it.

Final Thought: Leading with Structure, Not Rigidity

Rules are necessary. But they should never be arbitrary. The best leaders recognize when to uphold structure, when to adapt it, and when to remove it entirely.

Before applying or challenging a rule, ask:

• Why does this rule exist?

• What impact does it have on the organization?

• How should it be applied, evolved, or eliminated?

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Because leadership isn’t about enforcing rules—it’s about designing systems where people can thrive.

This post is part of Maypop Grove’s Leadership Evolution Series—a collection of in-depth reflections on leadership, influence, and strategy. Designed for leaders navigating complexity, this series explores how to drive change, build resilient teams, and lead with confidence.

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