Leadership
Do you really know what it means to be a good leader?
Once upon a time landing a job as a CEO or senior management role meant you needed industry expertise and financial savvy. And while that is still important, what companies are really seeking in this modern age are leaders with strong social skills. That’s what the authors of a 2023 HBR article1 discovered after analysing nearly 5,000 job descriptions for C-suite roles. Their explanation for this trend? Business operations are becoming more complex and tech-centered; workforce diversity is growing; and firms face greater public scrutiny than ever before. Those conditions call for leaders who are adept communicators, relationship builders, and people-oriented problem solvers.
The Impact of Good Leadership on Business Results
Research has consistently shown that companies with effective leadership outperform their peers financially. Visionary and strategic leaders can drive growth, optimise operations, and navigate market fluctuations successfully.
- A study by Harvard Business Review found that companies with highly effective leadership had a 3.5 times higher total return to shareholders compared to those with less effective leadership.
- A report by Deloitte found that organisations with strong leaders were 2.2 times more likely to be among the top financial performers in their industry.2
- A research paper published by Cornell University revealed that good leadership was associated with increased employee engagement, leading to improved customer satisfaction and overall financial performance.3
These findings highlight the significant impact that effective, strong and “good” leadership can have on a company's success. By investing in developing strong leaders, organisations can see tangible improvements in their financial performance.
Here are 8 things you will see an effective leader doing and being:
1 Empowering others
Effective leaders not only make good decisions themselves, but they also empower their team members to do the same.
.
2 Fostering collaboration
Good leaders are able to bring people together, bridge communication gaps, and foster collaboration within teams. This enables teams to work effectively towards a common goal, leading to improved team performance and business results.
3 Encouraging innovation
Leaders who encourage creativity and innovation within their organisation can drive growth and stay ahead of the competition. By fostering a culture that embraces new ideas and encourages experimentation, good leaders promote continuous improvement and create an environment where innovation thrives.
4 Building strong customer relationships
Effective leadership extends beyond internal operations; it also influences customer relationships. Leaders who prioritise customer experience and service create loyal customers who are more likely to return and recommend the company to others.
Good leadership is often a blend of various traits, practices, and mindsets.
Here are some additional key characteristics that also define the most effective leaders of today:
5 Visionary Thinking
Exceptional leaders have a clear vision of where they want to take their organisation. They can articulate this vision compellingly, inspiring and aligning their team towards common goals.
6 Adaptability
In a world that’s constantly changing, adaptability is a key trait of good leaders. They are open to new ideas, embrace change, and can pivot strategies when required to meet new challenges.
7 Integrity
Leaders who act with integrity build trust within their organization. They are honest, ethical, and lead by example, fostering a culture of transparency and accountability. Again so very critical with the scrutiny of social media.
8 Emotional Intelligence
We would argue that above all else the skill effective leaders need is the ability to lead with high emotional intelligence ie understand and manage their own emotions while effectively recognising and influencing the emotions of others. This skill is crucial for building strong relationships and creating a positive work environment, which underpins skills such as communication.
Good leaders are also exceptional communicators. They actively listen, provide constructive feedback, and ensure that their message is clear and understood by everyone in the organisation.
All of these traits lead to attracting and retaining top talent
Top talent is always in high demand. Good leadership can make a significant difference in attracting and retaining the best employees. When leaders do all of the above and foster a culture of innovation, creativity, and continuous learning, they create an environment that appeals to highly skilled individuals who want to grow and develop their skills. This reputation spreads easily in the age of the internet – organisations are far more visible than before in a time where employees of a certain age are using apps like Tik-Tok to ‘out’ poor workplace practices.4
Conclusion
The link between good leadership and business results is undeniable.
Leadership skills like visionary thinking, emotional intelligence, decision-making capabilities, communication skills, adaptability, and integrity define what good leadership looks like to drive significant positive outcomes for businesses. For managers, corporate leaders, entrepreneurs, job seekers, and HR managers, investing in the right sort of leadership development for ourselves as individuals and organisations underpins success.
We would love to hear your thoughts experiences and insights. Feel free to comment, like and share.
Footnotes
1 https://hbr.org/2023/05/the-leadership-odyssey
Share:
