Why Expectations Shape Performance
3 mins reading time

We often think performance is driven by skill, resources, or strategy. But one of the most overlooked drivers is expectation. The Pygmalion Effect first studied by psychologists Robert Rosenthal and Lenore Jacobson in the 1960s demonstrates that people tend to live up (or down) to the expectations placed upon them.
In their landmark study, teachers were told that certain students were “intellectual bloomers.” In reality, the students had been selected at random. Yet, when tested later, those students showed significantly higher academic gains. Why? Because teachers treated them differently: more encouragement, more patience, more belief. Expectations became self-fulfilling.
The lesson for business leaders is profound: what you expect from your team is often what you get.
The Positive Cycle of High Expectations
When leaders expect strong performance, they naturally:
- Give more trust and autonomy
- Provide more development opportunities
- Offer more constructive feedback
- Celebrate achievements more visibly
This creates a virtuous cycle: belief → support → motivation → performance. Research from Gallup shows that employees who feel supported and trusted are 4.6 times more likely to perform at their best. High expectations spark energy, confidence, and collaboration.
The Negative Trap of Low Expectations
The opposite is equally true. When leaders quietly assume that someone won’t deliver, their behaviour shifts. They offer fewer opportunities, withhold feedback, and provide less support. Team members pick up on this subtle lack of belief and their performance sinks. Harvard Business Review reports that managers who hold negative biases unintentionally create up to 30% lower performance in those employees.
Six Ways to Harness the Pygmalion Effect
- Set ambitious but realistic goals. Make expectations clear, stretch people, and express confidence that they can succeed.
- Back belief with support. Provide the tools, coaching, and resources needed to deliver. Confidence without support becomes hollow.
- Encourage autonomy. Micromanagement signals doubt. Delegation signals trust.
- Give feedback that lifts performance. Recognise effort, highlight progress, and frame mistakes as learning opportunities.
- Build a positive culture. Encourage respect, collaboration, and appreciation. When people feel valued, they rise to the challenge.
- Model the standard. Leaders must embody the behaviours they expect. Consistency between words and actions reinforces credibility.
Why This Matters for Leaders
The Pygmalion Effect isn’t just a psychological quirk it’s a leadership responsibility. Leaders set the emotional climate of the team. If they expect greatness, they plant the seeds for it. If they expect mediocrity, they’re almost guaranteed to get it.
McKinsey research shows that high-performing teams are not simply better skilled; they operate in environments where leaders consistently express confidence in their ability to win.
In short: expect more, support more, and you will get more.
Conclusion
The most powerful performance tool a leader holds isn’t a spreadsheet, a dashboard, or even a strategy. It’s belief. When leaders look their team in the eye and genuinely communicate, “I know you can do this” they are activating one of the strongest drivers of human potential.
The Pygmalion Effect reminds us: people don’t just work to the level of their skills, they rise (or fall) to the level of our expectations