This approach is great for peacetime and for when the team is already reasonably functional and performing. The really hard leadership problems occur during wartime (the business is in crisis, or shrinking, or responding to a serious competitive threat, or must aggressively cut costs, or must integrate an acquisition, or...) or when the team you have is routinely underperforming at scale.

These two situations require different techniques. Applying peacetime techniques during wartime does not work: you'll rapidly accumulate debt from unsolved organizational problems, politics you've lost control of, competitive pressure you failed to respond to decisively enough, or an underperforming team you've failed to correct enough. Or all of the above.

But, similarly, applying wartime techniques during peacetime also does not work. You'll alienate your high-performing team and suffocate critical innovation that will grow the business.

Confusing the two situations is a major category error that managers often make. It often happens because they've only experienced one of the two categories before, they were successful previously, they don't fully appreciate the extent of the existence of the other category, and when they encounter it for the first time they rely too much on their prior experience and have slowed down their own learning too much (because of said prior success).