Leaders have always played an essential role in business. However, now more than ever, businesses are becoming more aware of the importance of leadership.
To better understand how leadership can be used effectively in businesses, we must first define leadership.
What is leadership?
Unlike management, leadership is when an influence relationship is formed between the leader and his or her followers.
The aim is an effective leader is to influence and motivate his or her followers to take action and implement changes.
Leaders develop a new and shared mindset with their followers. They allow their followers to adopt a new way of thinking and perceiving the environment around them.
4 Characteristics of an effective leader.
1 – Leaders are change managers
Businesses have never faced more changes than they do today. We do live at a time where the world is constantly changing, from globalization, technology developments to even the health crisis we are facing. Change has become an inevitable factor for every business.
Whether the change is planned or unplanned, effective leaders are excellent change managers. They have a clear vision of the direction of the organization. He or she ensures everyone is able to see the bigger picture. Moreover, an effective leader also has a roadmap that outlines every step of the process when undergoing change.
Unlike managers, where they only aim to survive a crisis and stabilize the business. Leaders aim to not only manage change effectively but to rise above it stronger than before.
2 – Leaders are collaborators
Leaders put people first in everything they do. They understand the importance of collaborating with each other.
Leaders do not compete, they work collaboratively with their followers and colleagues. They lead by example and they give their followers an opportunity to lead.
Effective leaders are inclusive, believe that they can learn from anyone, including their followers. They not only listen to new ideas from their followers but give credit to their followers. They aim to empower and allow their followers to become leaders of themselves.
Effective leaders understand that they don’t need to know everything or have all the answers. They are humble enough to admit that they don’t know everything and to ask for help when needed. At the same time, they believe that everyone around them has their own talents and can contribute to the growth of the organization in their own way. They allow their subordinates to use their talents and they work closely with each person.
3 – Leaders are facilitators
Managers have always been known to have some sort of power and often this power is used to control other people and resources within the organization. This power that no one has access to can be scary when a manager is leading change.
Effective leaders don’t misuse their power to control. They instead focus on facilitating rather than controlling.
They provide their followers with the right resources, skills, and knowledge to achieve the desired outcome.
They facilitate changes instead of imposing them on their followers. More importantly, they include everyone in the planning and decision-making process. They do this because they know that employees are more likely to be engaged in any process when they have been included in the decision-making process.
4 – Leaders are diversity promoters
One of the very essential characteristics of an effective leader is the ability to embrace the differences of their followers.
They understand and value diversity within their organization. They not only welcome people from different backgrounds but they create a culture of openness where everyone feels welcome and engaged.
Leaders focus on long-term rather than short-term fixes. They are pivotal and can make quick decisions but they also have a clear vision of where the organization is headed. Leaders are not always reactive to unplanned changes, they are the ones who initiate change and take action in times of prosperity not only in times of crisis. Unlike managers where they only react to a crisis, they are almost always forced to make changes and they impose those changes on those around them.
Leaders are also self-aware. They are aware of their own differences and they are emotionally intelligent. They can not only manage their own emotions but of those who are around them. They are aware enough to pick up on the energy of the room. Their self-awareness helps them to constantly grow and develop themselves as they are not identified and stuck in their old habits and ways of thinking. They are always open to change and they ensure those around them are comfortable with change.
Putting it all together
By now you should have a better understanding of what leadership is about. If you are in business and are ready to take your business to the next level, start by asking yourself the following questions:
- How does leadership play a role in my business at the moment?
- What are we doing well and what should we sustain?
- What can we do differently and need to improve in our leadership?
- What can we implement and start adopting to help our leaders become more effective?
The awareness of any problem can be enough to solve it. Once you become aware of the importance of leadership, aware of the things you need to implement in your business, the rest is a matter of setting clear goals and steps to get there. Every business has a leader of some sort, the more effective leaders are promoted and encouraged, the more leaders you will see in your business.
As we live in a world where everything is constantly changing, we can see the importance of a leader. A leader doesn’t always have to be a manager or in a position of power. A leader can be a team member, anyone in the organization with the above characteristics is a leader. In order for a business to grow and sustain, leadership must be implemented and promoted in each part of the business. Leadership is the blood of business and when implemented effectively can lead to huge growth and success.