The Importance of Leadership in Business

Regardless of the size or sector of your business, several key attributes determine whether your business reaches its stated goals. These are things like stellar customer service, consistent product or service innovation, and competitive prices. 

But having said this, one of the most critical factors determining a business’s success is leadership. There’s simply no way around it. Companies and organisations are made up of teams and those teams are made up of individuals. Leadership is the secret sauce that makes those individuals work in concert to accomplish both short-term and long-term business goals. 

Even though it is tempting to think that good leadership will naturally occur in your organisation, this is a dangerous assumption. Good leadership is what will take your organisation to the next level. Therefore, you must not only be cognizant of the importance of leadership, but how to most effectively cultivate new leaders in your organisation. 

The Power of Great Leadership 

While some may call it intuitive, research has shown that organisations with great leaders tend to outperform their rivals. Most notably, studies have shown that great leaders within an organisation can double that organisation’s profit. The general idea is that good leader create more economic value than bad leaders and extraordinary leaders generate significantly more value than good ones. Those once-in-a-generation business leaders are certainly hard to find, yet they can be an organisation’s most important weapon.   

If asked to identify great business leaders, it is easy to come up with names like Jack Welch, Jeff Bezos, or Tim Cook. But this leads to the general question of what is it specifically about good leadership that makes it so powerful for all types of organisations? There are a variety of reasons. 

First, these leaders provide meaningful guidance and advice to their employees. They use their knowledge and experience to show employees how to successfully complete a duty or task. Great leaders also motivate employees. Whether appealing to a higher calling or the opportunity for employees to become more competent or skilled, leaders light a fire in their employees. They pay close attention to their organisation’s culture and create a positive, inspiring work environment. Great leaders delegate efficiently and align employee needs with organisational needs. Ultimately, they pay less attention to the details and more attention to larger-scale challenges that the organisation confronts. 

While the factors comprising good leadership are relatively simple, the simple fact is that good leader are hard to find. According to a 2016 Gallup poll, only 18 percent of managers demonstrate a high level of talent for managing others. 

So what can organisations do to better cultivate new leaders? 

First, don’t be afraid to challenge your employees. It is easy for your employees to “stay in their lane” and focus on their daily tasks before heading home. Instead, think about challenging them with a task that is outside their expertise. Doing this will make them think more holistically about how they can help your business grow. Similarly, encourage an entrepreneurial mindset among your employees. Don’t automatically reject new ideas from your team—no matter how “crazy” they may seem. Consider them and determine a way that your employees can exhibit their creativity and innovation on side projects or initiatives. Finally, leaders themselves need to set good examples. Leadership, as the old saying goes, comes from the top. By exhibiting qualities like honesty, hard work, and empathy, your employees will be more likely to follow suit.

The Focus of Any Great Business 

While the product or service may vary, leadership is one critical quality that separates a business from its competitors. They have the power to make or break an organisation. Whether or not leaders are born or made, it is absolutely critical to create a collection of positive, motivated leaders at your company. Doing so will undoubtedly take your organisation to the next level. 

At Luna Management, we understand the power of organisational leadership. We are a specialised building management company that focuses on preserving the facilities and assets within a residential or commercial building. Some of our services include building management, facilities management, project management, and concierge services. To learn more about our organisation and how we can help you, don’t hesitate to visit our website.