The Power of Effective Leadership in Business

1. The Role of Leadership in Business

Meanwhile, Nancy Koehn, a well-known historian and professor of business administration at the Harvard Business School, defines leadership as the capacity to deliver a vision – whether we are talking about an executive in a company or the leader in a nonprofit organization – and the capacity to create followership, enthusiasm, and resolve among people. In her talk in the Global Summit 2014 by the consultancy firm, McKinsey & Company, she highlights the requirements of fulfilling that definition of leadership. She explains that leaders must be able to show their resilience, especially in difficult times. They must gain the trust of their employees and communicate effectively with them. And they must know how to make good business judgments. Such criteria, Koehn notes, can help us develop a realistic assessment of leadership, and that the underlying leadership skills are essentially the same in different kinds of leaders, regardless of their agreement or varied levels of authority and responsibility. She also points out that it is important not to confuse leadership with authority, power, or coercion. For in many situations, we do find leaders who are not necessarily on the executive level, and all of us are likely to lead in some situation in our lives. Koehn’s words echo with a very well-known expert on leadership, John C. Maxwell, who stresses in his book, The 21 Irrefutable Laws of Leadership, that leadership is not about titles, positions, or flowcharts, but it is about one life influencing another. Rather than focusing solely on the upper management and the so-called executive level, theories about leadership in business suggest possible orientation in examining the role of leadership specifically in business organizations. More importantly, leadership in a business environment is not just focused on leaders themselves; people, being followers and subordinates, are also a central part of the leadership process in business. Koehn, Maxwell, and many other scholars undoubtedly point out the significance of the relationships between leaders and followers in leadership theories: that not only that leaders share a reciprocal relationship with followers and both are crucial to the effect of leadership, but also that different types of leaders, qualities of leaders, and situations can make a difference in leadership effectiveness.

2. Qualities of Effective Leaders

Two of the main leadership styles, as demonstrated by leaders within the case studies, are that of authoritarian and democratic; with authoritarian being when a person maintains strong control over the group and has a regime of well-defined discipline and obedience, that is, “It’s my way or the highway”; and democratic being when people who are potentially leaders are encouraged to bring forward their own ideas, and take the role of being able to set about achieving aims using their own and borrowed knowledge and experience.

These qualities are discussed in detail throughout the case studies later on in the book, as well as in the Leadership project workshop and lecturer materials. In the case studies, the particular examples of how these qualities have proved effective are discussed, and the workshop and lecturer materials help to plan and lead discussions and workshops with teaching activities and guidance. This is important not only in business and profit-making institutions, but also in fields such as public services and government.

Another of the qualities of a good leader is that they are able to serve as a good role model for their team members. This does not mean that a good leader needs to be loved or admired, but it is important for a person to stand out and be known. However, it is also important to know that not all team leaders are best placed to have a role as a role model and to take the position of being in charge of a group. Being in the right field, such as a youth group or a school class, will allow for these types of leaders to be more prevalent. We are proud of our political leaders, but some of them are not the best sort of examples to be setting for the general public, especially in more modern times.

One of the main qualities of a good leader is that they need to actually be prepared to lead. This means that a person must take their role seriously, and that they must know where they need to be in order to lead by example. This means having set aims and goals but also showing others that a person is able to focus on the task in hand.

There is a great amount of responsibility in being a leader, and in order to be a leader, a person must possess certain qualities or characteristics. These are not just physical and mental traits, but are those that are acquired as well. While it takes certain skills to be a good leader, there are many different ways to be a good leader, and these qualities can change depending on the type of leadership in a particular working environment.

3. Strategies for Developing Leadership Skills

Leadership is an acquired skill that is developed over time. It involves continuous learning, self-reflection, and self-study, which helps in broadening knowledge and enriching personal experiences. It is important to have an awareness of the current skill level and potential. To do this, self-assessment can be used whereby an individual can learn the values and interests of himself as well as the things that most enjoy and that is also the most important. Also, in addition, it can be made clear the personality that one has and the type of people that is attracting to one’s personality. It will also help in setting the long-term and short-term goals leading to the definition of the available opportunities for one to progress. Having strong concepts is one way to develop and prepare for reality. A strong imaginary work can help in drafting and demonstrating these visions. Reading broadens the imagination. It is through reading and gathering information that helps one feel capable and knowledgeable. As a leader, it has become very easy to criticize, but better to engage in a language of leading, as this has been helpful in creating a vision and encouraging people to engage with their own process that will lead to the realization of set goals. Digging deep through discussions to the foundation of knowledge is a very essential skill for a leader. It is very important to understand the needs of the people and match these to the abilities of the team. This helps in creating a common path that will bring significant changes, as it is the case when it comes to developing a productive and fulfilling culture. Work with team members by asking for their help and seeking creative solutions to problems. This helps in developing a culture of trust and ownership within the team. Also, it is important for one to reward and recognize the efforts and successes of the team. This way, it helps build commitment and inspire the team to reach even higher levels of performance. Last but not least, experiential learning is when one contributes to knowledge and theory through the process of developing personal and collective experiences. It is where knowledge is created through the transformation of experiences. This can be achieved through observation, doing research, training, and so forth. This will help one view failures as an opportunity to learn and improve.

4. The Impact of Effective Leadership on Business Performance

As equally noted by Gash and Browning (2014), the impact of effective leadership in the organizations’ performance is not only fully documented but also well recognized all over the world. The two authors focused on charities in England but this is a generic factor across all the areas of management in any given business or organization. More specifically, Gash and Browning (2014) indicated that transformational leadership is a key driver for increased performance and staff satisfaction within the charity context. However, recent developments in the management literature have emphasized on the role of different leadership styles in enhancing the efficiency and performance of a business. The impact of effective leadership on the organization’s performance will be evident in the following aspects of the business: employee satisfaction, customer satisfaction, financial management, and innovation and change programs. First and foremost, employee satisfaction is one of the key elements in the modern business environment. This is because the level of employee satisfaction is directly correlated with motivation and working efficiency. As noted by Flynn and DeRezende (2001), largely due to the emotional and non-monetary nature of the provisions that employees of non-profit organizations deliver to different client groups, the concept of leadership, staff satisfaction and commitment could not be treated separately. Nonetheless, as stated by Walters (2014), when leaders are effective, employees are more satisfied and they produce more in unit of time, are absent less often and are more loyal.

5. Case Studies: Successful Leadership in Business

Effective leadership has been a driving factor for the success of any given organization. Over the years, the public and private sectors have embraced and acknowledged the significance of good leadership. The aim of this section is to share some of the success stories of good leadership in the corporate world. Most of the case studies are given as clear evidence of the positive relationship between good leadership and business success. Case studies on companies and businesses of different sizes, sectors, and global locations are selected so that the range of leadership factors and the variety of industrial and economic situations are reflected in the selection. Iconic companies and leaders such as Steve Jobs and Apple, Bill Gates and Microsoft, Kony and his 2010 election campaign, Google and Merrill Lynch are all included. Every case not only focuses on an individual leader, but a range of various leadership factors can be discussed and evaluated. So, when a case is being studied in class, students are encouraged to explore and critically evaluate comparing personalities and leadership styles, team composition and structure, and the important elements for the achievement of a good organization. With the continuous advances in technology, students are also given opportunities to make use of the information sources such as business, academic publications, and social media for further and expanding procedures in their critical analysis. Students’ enthusiasm and interest can be raised from just being a receiver of information. Rather, they are urged to engage in the critical exploration for the development of their own leadership skills. Students can also appreciate that good leadership is a complicated and demanding yet hugely rewarding and the study of leadership never ends.