One of the best project managers I know was faced with a similar scenario, and succeeded wildly by doing mostly #2, but with very specific questions: what do you need to work effectively, what is preventing you from getting this.
In most cases, the answers were dedicated time and interruptions.
He trusted the team to know their jobs and worked to insulate them from the chaos around them. They came to trust him when they experienced what they craved, dedicated time, no interruptions.
What I dislike about the original post is that he seems to think his job is to lead and have them follow.
It isn't. His job is to support, to do the things, manage the interactions, that are preventing the team from working effectively.
In most cases, the answers were dedicated time and interruptions.
He trusted the team to know their jobs and worked to insulate them from the chaos around them. They came to trust him when they experienced what they craved, dedicated time, no interruptions.
What I dislike about the original post is that he seems to think his job is to lead and have them follow.
It isn't. His job is to support, to do the things, manage the interactions, that are preventing the team from working effectively.