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The Exit Plan

The Expectation Effect: Why Your Team Rises (or Falls) To Meet You


A Whole Heap Of Goodness In Less Than 5 Minutes

"The Exit Plan" is a weekly newsletter designed to help you build, grow, scale, and get out of the weeds. This isn't just about selling your business (although you might do); it's about being intentional with your growth. You didn't start a business to have a job.

The Rosenthal Effect isn’t just psychology — it’s your hidden lever for performance, culture, and client results. Most people are blind to it.

Hey Reader,

In 1963, Harvard psychologist Robert Rosenthal ran a sneaky experiment at an elementary school in California.

He told teachers that a few specific students in their classes were about to experience an “intellectual growth spurt.” There was just one catch: those students had been randomly selected. Completely at random.

But here’s what happened …
Eight months later, those kids outperformed their classmates.
They were more confident, scored higher on IQ tests, and were rated more favourably by their teachers.

Why?
Because the teachers believed they were gifted. And their expectations subtly changed everything — from how they greeted them, to how they explained things, to how much patience they showed.

That’s the Rosenthal Effect.
And whether you realise it or not, you’re doing this in your business every day.

CORE LESSON / INSIGHT:

The expectations we place — on our team, our clients, and even ourselves—shape performance.

In leadership, what you believe someone is capable of isn’t just a quiet thought. It becomes a behavioural blueprint:

That subtle eye roll when someone asks a “basic” question.
That extra grace when someone you believe in makes a mistake.
That early judgment call you make in your head after one slightly off discovery call.

It all adds up.

In the workplace, the Pygmalion Effect (another name for it) is backed by hard data:

  • A UK study in the Journal of Applied Psychology found that managers’ expectations significantly influenced employee goal achievement, even after controlling for skill level.
  • In education, students randomly labelled as “high potential” made 2–3x more progress across the year than their peers — even though no other factors changed.
  • In sport, coaches’ expectations have been shown to significantly impact effort, technical accuracy and even how resilient an athlete becomes under pressure.

How you see yourself shapes your behaviour just as powerfully.

If you’ve unconsciously decided you’re “bad at selling,” “not strategic,” or “not ready yet” — those beliefs show up in how you plan, how you pitch, how you price, and even how you procrastinate.

In Atomic Habits, James Clear wrote:

“You do not rise to the level of your goals. You fall to the level of your systems.”

I’d go further: You fall to the level of your beliefs.

Here’s what I know to be true:

People don’t just rise to meet their goals. They rise —or fall— to meet your expectations.

That includes you.

If you want different results, don’t just upgrade your software or your strategy.

Upgrade what you believe — about them and about yourself.

We’ve got this …

P.S. If this hit home …
And you know you’ve got more to give — but you’re stuck in the day-to-day, second-guessing yourself or your team … reply Empowered and lets see what we can do!


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The Exit Plan

"The Exit Plan" is a weekly newsletter designed to help you build, grow, scale, and get out of the weeds. This isn't just about selling your business (although you might do); it's about being intentional with your growth. You didn't start a business to have a job.

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