Characteristics of the organization that substitute for leadership include formalization, group cohesion, inflexibility, and a rigid reward structure. If the staff at your organization follow a lot of rules and standard operating procedures to do their jobs, if rewards are given according to a policy rather than at the discretion of the leader, and if their relationships with each other are more important than their relationship to the leader, then they will probably continue to perform at a high level whether or not they have a highly capable leader.