The importance of effective leadership in your business

Some business owners have essentially fallen into their leadership position. They are excellent operators in their industry, but they weren’t necessarily ‘taught’ how to manage. Managing a business effectively is not a skill that comes easily to all people but can provide great benefits to the business such as:

  • Leadership – making effective and timely decisions
  • Providing employees with knowledge and motivation to execute the business’ plans
  • Cohesiveness – moving with a shared goal in the right direction
  • Increased efficiency in your business

To focus in detail on one of the advantages above; how can leadership make your business management more effective?

Leadership consists of more than just the administration of your business. It involves detailed planning, strategy and goal setting discussions. Once a strategy for business development is determined, that strategy needs to be effectively communicated to the team to ensure everyone is on the same page when it comes to achieving the stated goals of the business.

Leadership is exactly what it implies; those in the senior positions need to demonstrate, not only through words but with their actions. They need to be following the values and strategies set to achieve the goals of the business. ‘Do what I say, not what I do’ doesn’t apply in the world of effective business management.

Leaders that are strong in making effective and timely decisions regarding all aspects of the business, whether this is operational, financial or administrative, leaves a team with no doubt that the priority is the successful running of the business, encompassing customers/clients and staff alike. When a team feels confident that the people at the top have a clear plan for what needs to be done, they are empowered and feel safe to stretch their own boundaries and look to achieve the best they can for the business.

Strong leadership not only helps to create cohesiveness and direction for the business but increases efficiencies in all parts of the business that have been thought about throughout planning sessions, this ensures that the common goals are achieved in a timely and cost-effective manner.

If you would like assistance in running a strategic planning session with your leadership team to ensure your business is being effectively managed, get in contact with your local Accru Office…

About the Author
Melissa McCrystal , Accru Rawsons Brisbane
Melissa assists primarily small and mid sized businesses with all aspects of their accounting, tax and audit. She has a particular focus on business valuations and self managed superannuation funds, helping businesses, as well as professionals and investors, to achieve their long-term goals.
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