Effective Leadership Essential in Business

“Leadership and learning are indispensable to each other.” – John Fitzgerald Kennedy

Effective leadership is the oil that lubricates the company’s ‘machinery’ and ensures the smooth movement of any business. Without effective leadership it would be tough to maintain order and direction, which are so essential in business. The behaviour and influence of leadership is what shapes the overall behaviour of those employed in the company and prevents inadequacies like employee and customer attrition. Effective leadership does not seek to only direct without action – effective leadership shows the way by doing and permeates the feeling of trust, confidence and enthusiasm in the employees. Great leaders are able to mould and influence the demeanour of the employees such that all benefit from the positive behaviour. Effective leadership has a clear vision of what heights the company must scale and the contribution that each member of the company would need to make to achieve those goals. Effective leadership converts the potential of each individual to the reality perceived for the company and ensures the success and growth of each member.

No company can survive for too long without effective leadership. Staunch and forward thinking leadership will ensure that the company gets better with time, makes better products and has in place better employee policies such that the end result on on-going basis is enhanced customer service and happy employees in a company that is led by stalwarts who know what leadership is about. The importance of effective leadership in all spheres of the company cannot be overemphasized since without it, accomplishing goals and realizing the expectations of the employees and customers would remain a dream. With some authority figure to look up to, employees and even other stakeholders are more respectful and remain in conjunction with the company’s goals and create a work environment that benefits all.

Those who are in leadership positions must be able to command respect and affection. The leaders, who use the authoritarian method, are unable to command either – they would use force to get obedience but would never be able to garner respect. Effective leadership relies on teamwork and the coalition of skills and talents to achieve new heights, which is more robust and durable and withstands crisis and other challenges of the business environment in the long run.

In the absence of strong and effective leadership, employees are usually forced to believe the rumour mills and tend to ‘follow’ those co-workers who seem to know everything and acquire some kind of leadership status. This kind of false leadership is detrimental to the health of an organization as it leads to confusion and disarray.  Effective leadership is the glue and the direction that is needed to ensure that everyone works toward common goals. Leaders must be seen as role models – someone who the employees feel proud to emulate. Irrespective of the size, repute and stature of a company – effective leadership is a must have. For small companies it can prove to be a major growth accelerator and for larger companies effective leadership can prove to be the stabilizing quality that is so essential for a company’s success. Without effective direction, even in our personal lives, we are unable to grow or see anything clearly in our path. Would you say that your company has effective leadership? What are the salient features of such leadership?

  • Effective leadership translates to smooth planning and a strategy that is workable over the long term and people who do whatever it takes to meet the company’s long and short term goals.
  • Companies that seem to have a clear vision and are able to communicate it to their employees as lucidly are the ones that are led by effective leadership. They are able to provide a clear and unobstructed direction to the members of the organization and allow them to develop their talents and potential to the maximum which will lead to their success and that of the company.
  • The hallmark of effective leadership is that they don’t need to coerce the other employees – they inspire and motivate by doing the right things and by honouring commitments and recognizing contributions and good performance.
  • Great leaders are insightful and proactive and have the ability to draw out latent talents such that each person in the company contributes to the best of their ability. As each person contributes, new ideas and innovation come about, positively contributing to the overall environment of the company.
  • Effective leadership is not afraid of encouraging an open and interactive work environment. They ensure that employees can speak their mind without fear of retribution and feel as valued members of the organization.
  • In the words of Abraham Lincoln – “A house divided against itself cannot stand”, is something that all great leaders believe. Therefore, even during crisis they remain focused and stoic taking the members of the organization from a state of panic and confusion to an energized and rejuvenated work environment such that the goals of the company and each individual are met.
  • Effective leadership recognizes the fact that leading is not a cakewalk. It is a complex and often uphill task and can very often be thankless and lonely. However, they stand firm in their resolve to lead and ultimately take the company to new heights and success.
  • Great leaders have traits like being good orators, skilled communicators, have a great awareness of their own strengths and weaknesses and those of others too and always take ownership of their actions. They know that if they are to remain effective, they must continually learn and this environment of learning and training permeates the whole organization, contributing to its growth.

There is a lot more to effective leadership. It is about the knowledge that it is “things that need managing and people who need to be led”. So therefore, effective leadership understands that an effort to ‘manage’ people will not be successful in the long run. Effective leadership is about showing the others a direct correlation between ideas and the implementation of which will lead to the ultimate success of the company and the individuals therein. Great leaders can get people to concur and agree on common goals and then work towards fulfilling them.

It is obvious that it is not possible for one person or small group of people to bring about all the changes required in the company or even create a culture that everyone believes in. Effective leaders realize this truth and hence are able to delegate and empower those who work with them. They refuse to do everything on their own but rather have the eye to hire the right people, who will not only share the vision but also be enthusiastic to make things work out for the customers, themselves and the company. A company’s success can only be determined through the success of all its stakeholders and hence effective leadership takes everyone into account. Those ‘leaders’ who believe in keeping power centralized in their own hands, are not true leaders but rather self-centred and power hungry people who only have their own interests at heart.

Leadership can never be effective in a vacuum or in a silo – it is always about everyone involved. Effective leadership is one that recognizes the fact that every person connected with the company or otherwise can be a source of learning and teaching. Each person has something to contribute. Effective leadership is an on-going process and the more your company focuses on creating such leaders, the more successful you will become and customers and other stakeholders will have no hesitation in being connected with your company in some manner or other.

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