There are probably more business books written on Leadership than almost any other business topic, which suggests it’s a complex and exceptional skill worthy of this voluminous literature. In contrast, I think there are some personal characteristics and simple principles which are consistently present in good leaders.  In this article I outline those characteristics and principles which I have experienced and observed amongst successful and effective leaders, regardless of the nature or scale of the operation.

 

Why Leadership Matters.

To run a good business requires an effective team and the first requirement of an effective team is strong Leadership. Teams with a strong leader know where they’re going and why, they understand their personal and collective responsibilities and are willing to be held to account for them and they are capable of a high degree of autonomy and independence which gives them great satisfaction and fulfilment.

Weak or poor leadership produces directionless, confused and dependent teams that rely on constant supervision and instruction, are apt to blame others, deny the existence of problems or offer excuses for poor results.  Good employees don’t stay for long in these situations, so the situation only worsens over time.

 

The Principles of Great Leadership.

Vision. An effective leader must be able to tell the story of where the business is heading and what it will look like in the short, medium and long term, in a way that is both inspiring and motivating.  In order to give of their best, people need to know that they are building the apocryphal Cathedral, not just laying bricks.

Culture and Standards. The ethos of a business is driven by those at the top of the organisation and will determine the way that all the various stakeholders are treated. Is the business good to work with or an absolute nightmare? What are the standards to which we work and expect others to uphold?  Is anything other than the highest standard acceptable, when ‘good enough’ isn’t.

Strategy. The leader or leaders of the business will determine the strategy that is adopted for how the business will progress towards its longer term goals.  How good is their ability to foretell the future with all its variabilities and uncertainties.  Are they doing the right thing at the right time?

Structure.  It might be argued that organisational structure is a part of strategy although I think getting the structure right is an internal matter that greatly affects the productivity and effectiveness of everybody and everything within, through effective managerial control and good internal communications.

Systems.  Good businesses run on good systems, people run the systems and leaders lead their people.  Good leaders ensure the systems folder is complete, accurate, up to date and the definitive best practice for that business.  Ultimately, a significant component of the business value lies in the ‘Systems folder’, the bit that allows a proven process to work consistently, replicably and with scale.

People.  Because most businesses are highly dependent on the people they employ doing a consistently good job, selection, inspiration, long-term motivation, development and progress are essential elements that effective leaders enable and monitor continuously.  Good leaders are able to identify the strengths and weaknesses of their people and enable them to play to their strengths.

 

The Personal Characteristics of Effective Leadership.

Humility.  Arrogance and hubris almost always lead to a variably spectacular downfall: in contrast, humility usually engenders loyalty, commitment and focus on the task, rather than waiting on the capricious whims of an egotistical boss.

Discipline.  I have never come across a successful businessman and leader who didn’t possess a high degree of self-discipline.  Doing what is necessary when the business demands it, rather than when it suits the leader, seems to be an absolute requirement.

Decisiveness.  I often hear the phrase that ‘leadership is a lonely place’ and it can be.  Very. It is rarely more so than when difficult decisions have to be made by the leader alone.  It is then that your people will expect a considered, crisp and definitive decision.  It is worth remembering that coming to a decision is the hard part.  Once it’s made, it’s easy.  You just get on and ensure it is effectively delivered!

Resilience.  One of the few certainties of business is that there will be successes and failures, ups and downs, sometimes expected, often out of the blue.  How the leader responds will be watched minutely by their team.  Signs of weakness, lack of resolve and uncertainty will percolate throughout the business with very negative results.  Resilience, determination, stickability and future focus is what your team will want and expect.

Consistency.  Nobody wants to come to work when the boss turns up with a face like thunder, nor with a despairing demeanour nor looking like a month of wet Sundays.  When things are good leaders should present an aura of positivity, excitement and focus on success.  When things are bad, exactly the same applies.

Empathy.  A good leader knows that people are very variable and treats them with empathy and understanding according to their need.  Some people need a virtual arm round the shoulder and encouragement to excel, others a swift rebuke.  Get it the wrong way round and all sorts of trouble ensues but get it right and the great leader develops every person in the team and enables every one of them to perform at their best.

Flexibility.  John Maynard Keynes is reputed to have said “When the facts change, I change my mind.  What do you do Sir?”  Good leaders respond to changing circumstances, risk levels, opportunities and developing knowledge by changing their plans appropriately.  Rigidly sticking to the original plan is rarely going to result in the best outcome.  The good leader has the wisdom to distinguish the difference between the need for resilience and stickability and the need for flexibility and agility.

 

Effective leadership needn’t be complicated but there are some principles that need to be applied with consistency, so that everyone knows where they are going, what is expected of them, what resources are available to them and what the deadlines are.  Leadership also demands a deep understanding of the way people operate, so that the environment, communications, systems and support structures enable them to perform autonomously and at their best.