This paper aims at contribute to an understanding of how present leadership characteristics influence the implementation of HK in manufacturing SMEs. The research is based around two case companies where the ideas of HK was implemented in an action research project. The leadership characteristics associated with HK include characteristics such as supporting, coaching, challenging, involving top management and co-workers. The findings show that HK leadership characteristics have similarities with lean leadership and developmental leadership characteristics. The two cases have successfully began to implement HK and the CEO’s in both cases have a present leadership style resembling of developmental leadership.