Business leadership involves the ability of the management of an organization to achieve goals, act decisively, and beat its competitors while instilling the performance spirit within the organization.
Business leadership is important because it touches both the internal and the external stakeholders within the industry and beyond.
Here are eight reasons why business leadership is important:
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 course towards 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 the right direction, even in times that 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 an Organization 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 may be because of lack of sound business leadership.
A sound business leadership in any organization will always have room for diversity.
Diversity with regards to employment of women, millennials, and minorities in an organization should be guided by the management to create an affirmative action towards 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 in 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.
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 a point of authority and therefore diffuses any doubt of 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 of such communication from their leader is a sort of a reassurance.
5. Ensuring the 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 purview 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 Necessary 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 leadership has a desire to see them delivering 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 they 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.
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 the above, then they also have to inspire a collective identity within the organization.
This 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 in the organization as compared to at home with their families or with friends which
What Makes Business Leadership Important?
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