How does it work? Well, in it's basic form, you forecast the story points for the upcoming sprint based on the story points completed in the last sprint. By using this pattern, I've reduced the sprint planning meeting from an hour of chattering debate to five easy breezy minutes.
Instead of directing employees and managing their tasks, you create an environment where they can be successful. Ponder this paragraph.
The effective Agile Leader spends less time managing for results and more time designing environment that create results. They spend less time telling others what to do, and more time creating conditions that empower and enable others to know what they need to do, and to be in action doing it.
The authors refer to catalyzing leadership. If you wish to learn more about catalyst leadership, you may want to read Leadership Agility where a chapter is devoted to the qualities of a catalyst leader.