8 Reasons Why Business Leadership Is Important

By Chirag Patel

Updated Over a Week Ago

Minute Read

Business leadership involves the ability of the management of an organization to achieve goals, act decisively, and beat its competitors while instilling a performance spirit within the organization.

Business leadership is important because it touches both the internal and external stakeholders within the industry and beyond. Here are the top eight reasons:

1. Ensuring the Business Maintains its Vision

A business leader needs to always be on their toes and alert in order to ensure that the organization has a vision and stays on a course toward the achievement of that vision. This is because, in the course of everyday ebbs and flows in an organization, the employees and the organization as a whole may, at some point, lose track of the big picture.

A good business leader ensures that the ship is sailing in the right direction, even in times when the organization has lost its course.

2. Inspiring Morale

It has been said in some quarters that an organization without a leader is like an army without a general. A business leader’s position is to inspire morale among the organization’s employees. This makes the employees work harder, and they have their eyes on the prize.

They can therefore work with the image in mind that their leader knows what their role is. This raises the morale and confidence of employees and helps them to get things done without material motivation.

3. Guiding Towards Embracing Diversity

Whether or not an organization embraces diversity depends on the kind of business leadership offered by the organizational management. Some organizations embrace diversity, while others don’t. This may not be because of choice but maybe because of a lack of sound business leadership.

Sound business leadership in any organization will always have room for diversity.

Diversity with regard to the employment of women, millennials, and minorities in an organization should be guided by the management to create affirmative action toward this.

Organizations always have a policy on inclusion, and it is the place of business leaders to ensure that there is diversity in an organization. The issue of diversity also needs to be addressed at the board of directors’ level.

This then ensures that the organization does not only have diversity at the employee level but later on at the leadership level as well.

Giving a Speech on Ethical Leadership

4. Communicating New Strategic Directions

Once an organization’s management has decided on a new strategic direction for the organization, leadership must communicate this through memos, emails, or staff meetings.

This ensures that the change is communicated from the point of authority and therefore diffuses any doubt about whether it is true or not.

It also helps the employees to better deal with the changes that may come with the adopted strategic directions. The business leader is held by employees as a unifying figure and receiving such communication from their leader is a sort of reassurance.

5. Ensuring Employees are Motivated

It is the duty of the business leadership to motivate the employees materially and otherwise. The formulation and implementation of motivational reward systems are the purviews of organizational leadership.

This is in line with giving credit where it is due. If an employee has done very well and they need to be rewarded, organizational leadership needs to follow up. This helps to increase motivation within the company.

6. Availing Resources and Support

While the department of finance may be the one to procure the resources needed by the various employees in order to perform better, it is the business leaders that give the go-ahead for acquisition.

A better business leader will even ask the employees what it is that will help them deliver better. With that information, the business leader will then direct and follow up on the acquisition of the resources requested.

This shows the employees that the business leader has the desire to see them deliver better with the necessary resources availed.

7. Encouraging Continuous Learning

A good business leader will go out of their way to ensure that their employees learn more. The more the employees learn, the better they deliver and the better people they become.

It may mean better remuneration for the employees. But even if they do not get opportunities elsewhere, they may also be promoted in the same company.

It is in a good business leader’s interest to ensure that their employees have many learning opportunities in order to improve not only with productivity and delivery but also in being better employees overall.

Team Members Motivation Meeting

8. Inspiring a Collective Identity

It is every employee’s desire to identify with their company, especially if they are satisfied and they like their job and working environment. If the business leaders provide all of the above, then they also have to inspire a collective identity within the organization.

Collective identity happens if the organization’s employees share common interests and experiences. It goes beyond this to even include an organizational culture that is inherent in that organization. This is achievable because of the length of time that employees spend with each other as compared to at home with their families or with friends.

Why is Business Leadership Important?

If you have ideas about business leadership that might be helpful to readers, share them in the comments section below. Thanks!

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Chirag Patel
Chirag Patel
Chirag Patel is a content writer. He likes to write on business, travel, education and private tutoring. He works closely with a Singaporean tuition agency, Smiletutor. He is passionate about content writing, net surfing and sports. You can reach him at mepatelchirag@gmail.com
  • Sally Wally Lee says:

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  • Levi Armstrong says:

    I find it helpful to know that business leadership is crucial because they’re the ones who have the duty to motivate employees to do better in their job. As an aspiring CEO, this is an excellent article to read. Once I open my own business, I’ll make sure to conduct leadership training for all my employees. Thanks.

  • Your writing style is so engaging. I couldn’t stop reading once I started. Keep it up!

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