The primary factor that determines the success of any business is good leadership. It is the most influential element of an organization as it affects all the spheres of business. Good leadership is characterized by the having an effective set of skills that inspire and impact teams to run competently. It also means that the leader understands the company’s objectives, goals, action plans, and mission statements and can lead the business to realize them.
A study involving a 360-degree assessment of the impact of 50,000 leaders on the success of business showed that good leaders increased the profit of the firm while poor leaders reduced a company’s earnings. The study also included extraordinary leaders who were reported to double the company’s profit compared to the other two categories. Schulich Executive Education Centre which helps leaders acquire leadership which inspires leaders to perform better to improve the organizational productivity and earnings. We further explain how good leadership impacts the success of a business:
Improved Communication :
Good leadership fosters communication between employees and the heads of various departments. A company that maintains a closed-door policy and barely makes an effort to communicate with employees makes it difficult to implement various policies. Since employees are not involved in the decision-making process, they feel uninformed and left-out which leads to arguments, confusion and reduced morale as they lack the guidance they need. If you are looking to improve your leadership skills, you can always take advantage of leadership courses offered by various suppliers such as Schulich Executive Education Centre.
Clarity of Company Objectives :
Good leadership also entails making the company objectives known and making a long-term plan to achieve them. Shared aspirations develop cohesiveness among the employees as they are working towards achieving similar goals while creating stability in the working environment. To make the company objectives clear, a leader can arrange for discussions to help employees understand how they fit into the goals and vision of the company.
Improved Employee Morale :
Low morale is often associated with the leadership style of an organization. A company that adopts an authoritative or dictatorial leadership style arouses feelings of contempt and resentment among employees. Over time, it leads to low productivity, infighting, and breakdown of communication between employees and their leaders. Good leadership style, e.g., a democratic style that encourages an open-door policy helps develops trust between the employees and the leaders ultimately improving their morale.
Impact of Positive Values :
Good leadership not only focuses on the productivity of a company but also impacts positive values on its employees. A good leader invests a significant amount of time developing leadership skills like honesty, integrity, and decisiveness among employees. A leader’s behavior and attitude directly affect the people he is leading. For instance, if a company’s taskforce comprises young graduates with little life and work experience, the leader should strive to impart positive values that will help them mature and become valuable individuals in the future. The positive values they learn from you will reflect on how they treat the customers and co-workers.
Evidently, good leadership is critical to the success of a business as it improves communication between employees and their leaders, enhances clarity of the company’s vision, enhances employee morale and impacts positive values.
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