Having the awareness that everyone watches what, how, when, and why Leaders do things, is something we should all harness in regards to the discipline required to lead effectively. Leading by example is motivating, it sets the example for how others should lead their team, their customer relationships, their outlook, and just about everything else from attitude to belief systems.
In regards to what folks are watching for:
A list of (what I believe to be) the most important traits of great leaders. What would you add?