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A recent survey showed that 71% of businesses still feel that their leaders aren’t ready to guide the company into the future. It is an alarming statistic, given the role effective leaders play in developing an organisation’s culture and growth. It is causing many leaders to re-evaluate their current methods to become more effective. But what traits do effective leaders possess that separate them from the rest?
And how can you be an effective leader?
Leaders exude influence over peers and subordinates, enthusing them to achieve a company or a team goal and work cohesively as a team. Regardless of the title, leadership is a mindset in action. Leadership is not a mantle to be handed out. Leaders earn their position because of their competency to inspire those around them, focus on the organisation’s objectives and work to maximise the firm’s value.
From Steve Jobs to Jeff Bezos, effective leaders empower their employees, support the organisation’s long-term goals, and deliver the best experience to their customers. Research has shown that effective leadership can lead to a 12x jump in a company valuation compared to those that ineffective leaders lead. Furthermore, when Ken Blanchard conducted a study on more than 200 organisations, they found that each year of delay in improving leadership skills cost the company 7% of its annual revenues. Since this effect compounds over time, effective leadership can mean giving up millions in potential revenue opportunities in the future.
Effective leaders are visionaries who can inspire innovation in the organisation by motivating their team members to reach beyond their potential. Effective leaders create a shared vision to unify those around them, build processes to foster collaboration and recognise each individual’s unique strengths and weaknesses to best deploy their skillsets to solve complex problems.
So what’s the difference between leaders and effective leaders?
Is it their ability to communicate and motivate their staff?
Is it the number of connections in their network?
Or the fact that they are politically savvy, having the ability to keep everyone content in the organisation?
While all these factors have a bearing on leadership effectiveness, they are not the core tenets.
Core tenets that set an Effective leader apart from the rest are-
Effective leaders listen well and speak decisively, which is crucial in addressing problems, clearing misunderstandings, and getting everyone aligned to the organisational goals. An effective leader communicates the corporate objectives, provides constructive feedback to team members and negotiates effectively with business partners.
A recent study showed that 79% of employees tend to quit a company due to a lack of appreciation from their managers or team leaders. 69% said they would work harder if bestowed with recognition. Effective Leaders motivate and support the development of their team members by developing their emotional intelligence, empathising with their team members, and understanding & sharing their feelings.
Leadership skills are crucial to career development. A survey conducted by Deloitte found that 48% of participants said that leadership skills were essential for career advancement. While technical skills and a college degree can get you into a company, being an effective leader is critical for moving up the ladder. You can fast-track your career and create new opportunities by demonstrating your effective leadership skills.
I am sure by now you agree that effective leaders positively impact the organisation, from improved communication to increased productivity, employee satisfaction, retention, and engagement. These factors tend to compound over time, implying that companies led by effective leaders will grow exponentially while those led by ineffective leaders will struggle. Despite the growing need for effective leaders in the industry, very few people are born leaders, much less effective leaders. Thus, it is a skill that needs to be developed and honed.
Managers and founders can benefit from engaging an executive coach in India to support their leadership team’s transformational journey towards becoming effective leaders.
