Last October, I wrote an article for Fast Company on the hidden leadership trait of intrinsic value. Since that article was published, I have continued to dig deeper into the comparisons of intrinsic vs extrinsic leaders. I’ve noticed how brands run by extrinsically-minded leaders are in a perpetual chase for the right message, the right audience and the right business model – and never finding any of these. They tend to obsess over campaigns, slogans and managing perceptions. Meanwhile, brands lead by intrinsic-minded leaders are disrupting and shaping industries and society.

As a Brand Strategist working with clients, I’ve particularly noted how being intrinsically driven creates a natural competitive advantage in the era of Social Business. Within this natural competitive advantage are the standards and habits of these leaders and the cultures of the brands they lead. Here are 5 specific habits found in intrinsic brands:

1. Values-driven: Intrinsic-driven brands are rooted in their WHY. They have developed the habit of constantly returning to the root of that WHY: their values and belief systems. They first benchmark strategies against their values, then determine the financial impact/opportunity. This intrinsic habit keeps the brand from over-reacting to trends, competitors and other external pressures. Example: Whole Foods
2. Movement-minded: extrinsically-driven brands are obsessed with the business model. Intrinsically-driven brands are obsessed with creating a movement. They’ve made being a movement an organizational habit by incorporating disruption, critical thinking, stress testing, etc. into business processes. This habit allows them to market the movement in a way that is natural, easy and believable. Example: Virgin
3. Attracting talent: As obvious as it sounds, intrinsic brands attract intrinsic people – employees, customers and influencers. This means that these brands are attracting self-aware, confident, values-driven people – creating a deep and growing pool of both employees and customers. This habit provides the advantage of never having to over-spend on attracting people. Example: REI
4. Innovation: For intrinsic brands, innovation is neither a buzzword nor a strategic initiative – it is a daily habit. Innovating is as natural as breathing. They view their employees and customers as partners in innovation. Which is why they are so adept at social business: they are used to listening. They actively seek feedback. They are not threatened by dissenting ideas or opinions. Example: Adobe
5. Failure: Extrinsic brands obsess about external issues: public perception, stock price, competitors, etc. At the root of this obsession is a fear of failure. (Which I believe is a form of narcissism – but that’s a different post!) Alternatively, intrinsic brands embrace failure as part of the process of improvement; a necessary trait of innovation. This unleashes a flurry of ideas and reinforces the brand’s reputation as being willing to take risks. Example: Nike

As leadership style, company culture and human experiences continue to converge into a modern definition of a BRAND, organizations with intrinsically-driven leaders will continue to have a greater and greater competitive advantage. This will put more pressure on extrinsically-driven brands to change. But change requires self-awareness, willingness, humility and more. When is the last time you saw any of these traits in traditional executives?