How do you balance kindness and strict standards as a business owner?

My personal values are very important to me as a business owner. Being a person of faith I care deeply about people. For years I have struggled to find this balance between kindness and compassion and strict standards. For those of you that have hearts for people and want to be kind and compassionate...how do you help your team rise to the occasion without having to seem heartless and only care about the bottom line?