Top 5
What Makes an Effective Business Leader?
Whether you’re an aspiring business owner or a seasoned executive, there is one question you should ask yourself regularly. What makes a good leader?
After all, while a position might make you the boss, it doesn’t necessarily make you an effective business leader.
It turns out, though, that influential leaders share some common qualities. The even better news is that you can work on these qualities and become more effective in your decisions and actions.
We love writing about leadership, as there are many online resources on the topic. Let’s face it: Everyone needs leadership skills, not just those at the top. So, let’s dive in and look at some of the top business leadership qualities you can use professionally and socially.
Whether you’re an aspiring business owner or a seasoned executive, there is one question you should ask yourself regularly. What makes a good leader?
After all, while a position might make you the boss, it doesn’t necessarily make you an effective business leader.
It turns out, though, that influential leaders share some common qualities. The even better news is that you can work on these qualities and become more effective in your decisions and actions.
We love writing about leadership, as there are many online resources on the topic. Let’s face it: Everyone needs leadership skills, not just those at the top. So, let’s dive in and look at some of the top business leadership qualities you can use professionally and socially.
Good Communication
You cannot lead if you cannot communicate effectively. Your message needs to be received clearly by its audience. Great leaders understand that not everyone approaches information with the same level of expertise, so they gear their communication to the level of their listeners to ensure it is heard and understood.
At the top of their game, leaders are also excellent listeners who listen when others speak. Good listening makes the other person or audience feel valued, so they are more receptive to your message.
Sound Decision-Making
Decision-making is near the top of a list of crucial business traits a leader needs. Leaders make countless decisions, and they can’t agonize over all of them.
Good decision-making demands that you recognize the importance of the decision and give it the appropriate attention. Minor decisions require little attention, while significant decisions require significant attention.
There is no room to shirk away from making the call when required. With practice, you’ll have more confidence to call it correctly. Use a methodology you’re comfortable with whenever you need to make a decision, whether big or small. As the saying goes, practice makes perfect!
Acting with Integrity
If someone doesn’t trust you, they won’t follow you. At best, they’ll follow your orders while looking for the double cross.
Successful leaders embody integrity. They don’t double-deal with their own team. They behave ethically.
If people trust that you mean what you say, they’ll prove far more willing to follow you.
Striving for Excellence
Influential leaders strive for excellence. This can take many forms.
For example, good leaders often spend a considerable amount of time on self-education. They read extensively about their industries, history, and leadership, which expands their frame of reference and enables them to make more informed choices.
They leave their comfort zones. This allows them to challenge their own limits and discover their true potential.
This pursuit of excellence implicitly signals to everyone that good enough isn’t good enough. It’s also inspirational.
Perseverance
Problems crop up every day in business. Sometimes, deals fall through, or a trusted subordinate quits unexpectedly.
Successful business leaders persevere in the face of these challenges. Solutions exist for most problems. Leaders persevere until they find those solutions.
Self-awareness, a critical component of emotional and spiritual intelligence (EQ and SQ), is the building block for success. It enables us to make insightful, sharper decisions and “course correct”. In addition, being self-aware facilitates authentic relationships with others, including our boss, colleagues, team members, clients, suppliers, family, and friends.
So, how do we harness and develop this core competency in both our business and personal lives?
Here are five things that will lead to increased self-awareness:
- Become aware and mindful of how you are feeling in the moment.
- Try naming these emotions and feelings.
- Notice when your feelings and mood change – for example, when you are upset or excited.
- Ask yourself why this might be the case.
- Become aware of the impact of your feelings and emotions on your thoughts and subsequent behavior.
The role of feedback
Being open to feedback and reflecting on our experiences are two other significant ways of increasing our self-awareness. Our so-called failures can also provide fertile ground for increased self-awareness and learning.
In business settings, self-awareness can be fast-tracked through the management and leadership development courses and executive coaching.
A key component of any learning and development program is self-assessment, as well as 360-degree feedback from colleagues, direct reports, and managers. In some instances, suppliers and customers can also participate in this process.
When it comes to feedback, there are broadly four windows to self and other awareness: (Johari’s window)
- What we know about ourselves and others does too
- What we know about ourselves but others don’t
- What we don’t know about ourselves and others don’t as well
- What others know about us but we don’t
Feedback and leadership effectiveness
In the fourth category, feedback can significantly impact one’s management or leadership style if listened to and taken on board. If you are receiving feedback about an aspect of your leadership style that you may have overlooked, then now is the time to take notice. Changing your thinking and behavior may take time and commitment, but the rewards will be well worth it.
The results in greater productivity, improved team and business relationships, and positive feedback from those in your immediate environment can be rewarding and humbling.
This was the case of a senior manager I was coaching who had been branded as someone with a confrontational and aggressive style. Though initially questioning (of course!) the results of his feedback, he could have taken it on board as he realized that his attitude and behavior were not serving him (not to mention others!).
Over the course of twelve months, through conscious awareness of his mindset and behavior, reflection, and feedback, he transformed his leadership style into a much more constructive one. However, the biggest win was sidestepping a potential derailment at a critical time.
Three steps to increase your leadership effectiveness:
- Ask for feedback.
You may wish to ask 5-6 people for a key strength and one thing you could do better to achieve your specified goals. - Listen to this feedback.
No, I mean, really listen! More often than not, there will be a theme from your feedback providers. Listen with an open mind and open heart. - Take action
Decide what one thing you will focus on, and enjoy growing in your awareness and wisdom.
Becoming a More Successful Business Leader
Becoming a more successful business leader doesn’t mean changing yourself overnight. If you’re in a leadership position, you likely already possess these traits to some extent.
You can build on them with small but meaningful steps. For example, make a commitment to listening with more care for the next month. Decide that you won’t spend more than 15 seconds on low-level decisions and stick to it.
Block out 20 minutes a day for self-education. Keep three commitments you’d rather avoid. Keep working on one vexing problem until you find the solution.
Any or all of these steps will make you a more effective leader.
Looking for more business leadership advice. Check out our management section on this site.