Success Factors for Business Leadership

Success Factors for Business Leadership

In the world of business, leadership is the capacity and ability of the management of an organization to set strategic goals and motivate their teams to achieve these goals. The success of business leadership mostly lies in the knowledge of managers and executives to motivate and inspire their subordinates to perform at the highest levels for the company. According to Chin, Trimble, and Garcia (2017), successful leaders power their organizations and form the intellect behind their success. They should be visionaries charged with leading the companies, especially during difficult times. Healthy and successful business leaders must understand when to seize opportunities and rally their staff to work towards achieving the strategic goals of their companies. Effective leadership in the modern world of business requires distancing from the title “boss” or “manager.” They need to transform in a way that enables them to achieve a combination of self-assurance, enthusiasm, and charisma. While it sometimes seems that some people are naturally gifted with such leadership skills, the truth is that most leadership skills and traits can be learned and sharpened with time and continuous practice.

Success Factors for Business Leadership

Business leadership provides strategic vision and direction for an organization and its workforce. The staff needs to fully understand the direction in which the organization is headed and the people to follow to arrive at the destination. Leadership involves showing the team how to execute their roles effectively and regularly supervise the completion of these tasks. This paper discusses four vital success factors for business leaders, especially in the 21st century, and how modern leaders can wade through the challenges associated with running these business organizations.

Firstly, successful business leadership requires people who are capable of simplifying complexity and operationalizing it. As the pace of change, transformation, and technology disruption become quicker across the globe, business leaders face an onslaught of new and complex decisions and problems to be solved (Taylor, Santiago & Hynes, 2019). The typical business leader can possess massive amounts of data and complexity, most cases on the fly. The ability to effectively deal with ambiguity and learning agility has become commonly used statements in executive assessments. Truly standout and exceptional business executives, however, accomplish much more than living comfortably with chaos. Such outstanding leaders take ownership of complexity through the creation of simple, workable narratives around it that can quickly and readily be understood and embraced by their subordinates (Taylor, Santiago & Hynes, 2019).

For several of the business revolutions going on, like the blockchain and the Internet of Things, the endgame remains unknown and unclear. In the face of such ambiguity, the most successful leaders strive to create clarity on the challenges their business strategy seeks to address. They should emphasize the reasons their firms are uniquely placed to address these challenges and offer workable and straightforward plans that can help in pushing the organization to success. Business leadership is the ability to inspire staff or subordinates to achieve shared objectives—the journey to achieve these objectives being with vision and the clarity of vision embodied by the leader. After creating a simple and understandable plan that gives clarity on the challenge being addressed, the leader must create an inspired and motivated group of people who are capable of executing the strategy. The most successful leaders use the simple plan as the solid base for an operational narrative of how the procedure will be carried out and indicators of success that will be followed.

Secondly, successful and effective business leaders drive the ambition that fuels their entire enterprise. One of the biggest momentum-killers in businesses is the tendency of staff to develop silo behavior. Such silo behavior focuses attention within the organization instead of winning in the competitive marketplace and, therefore, can create blind spots for the enterprise (Johnson-Kanda & Yawson, 2018). To get out the silo and think across the organization means that leaders must overcome two drivers: security that comes from a well-known and understood area and tribalism. Getting to the heights of enterprise-level thinking requires leaders to develop adequate self-awareness to follow the established impulses and proper discipline to effectively overcome them (Yadav & Agrawal, 2017). Great leaders must challenge their staff to think about their roles as contributors within the more extensive enterprise.

Thirdly, effective business leaders play exceptionally well on teams they are not leading. From the apex leadership ranks on down, teams are the organizing and cementing principle of organizations (Yadav & Agrawal, 2017). However, it has been established that business teams have given little thought to what it means to be accurate teams, despite the growing body of strategic and academic work about the significance of the organization (Taylor, Santiago & Hynes, 2019). The very best and effective leaders, long before they reach the highest levels, begin conversations with their teams with particular questions. For instance, what needs to be worked on to accelerate the business strategy? Such items drive the agenda of the meeting, guide the process of making decisions, and focus information sharing to the broader organizations. The best business leaders need to play exceptionally well on teams they are not directing and leading. This can be a huge challenge for several management executives. As they rise through the various ranks of their organization, business executives are incentivized and encouraged to lead their teams. The most effective managers and business executives stress the significance of leadership, both collective and individual, as a means through which business strategy is delivered (Yadav & Agrawal, 2017). They then focus their gathered contributions on the team from a strategic standpoint, not from a tactical point of view.

The last success factor is the ability to build leaders. In the world of business leadership, business executives fall into one of two categories (Yadav & Agrawal, 2017). One group sees people working for them as assets to help them in career advancements. In contrast, the other category considers the potential of the staff, and hence take ownership of the responsibility to develop these leaders. It is never easy for executive leaders, human resource executives, and board of directors to precisely discern which category best describes a specific manager (Taylor, Santiago & Hynes, 2019). Some executives spend a considerable amount of time managing up, creating the impression that they are highly thoughtful, in the process of ignoring the people working for them. However, a leader’s track record unambiguously measures whether the leader is known for building other leaders.

A leader who is capable of developing other leaders or staff is more likely to be an individual who can retain and develop a diverse group of employees and staff. The people promoted by a leader indicates the ability to create a diverse workforce. Diversity is not a demographic nicety (Yadav & Agrawal, 2017). However, diversity promotes strategic execution, which encourages the ability of the team to build teams and exploit opportunities for their organizations.

Business Leadership Challenges Today

In successful business leadership, attributes such as open and transparent communication, strategic vision and execution, innovation, and integrity never go out of style. Today, business executives must focus on building strong teams, especially in the modern environment, where recruitment and retention face significant hurdles (Coulson-Thomas, 2019). Executives also have to demonstrate vigorous and sustainable business acumen, embrace change and diversity, and keep up with the changes in the latest technology. Coulson-Thomas (2019) and Sashkin (2016) explain that those at the apex of their organizations must demonstrate and execute these skills, among others, to wade through the business environment, which recent studies have shown that is increasingly challenging to accomplish. A recent survey by Robert Half Management Resources survey indicated that 66 percent of CFOs find it more challenging to lead their organizations in the modern environment that it was a half a decade ago (Yadav & Agrawal, 2017). Emerging issues and trends, which ranged from disruptive innovations and accelerated pace of change to regulatory compliance demands and dispersed workforces, have increased significantly the pressure facing organizational leaders (Yadav & Agrawal, 2017). Business leaders must be proficient in their chosen career fields, but also stay current on significant picture issues that face their organizations and industries.

The good news to business leaders is that employees are on the side of management. In the survey cited in the previous paragraph (Robert Half Management Resources), 87 percent of employees indicated that they have confidence in their organizational leaders (Yadav & Agrawal, 2017). Professionals fully understand how difficult managing a company or department can be and respect the work being done by their supervisors; the report shows. However, even with employees on their side, business leaders must acknowledge that there are significant and overwhelming challenges that affect their ability to deliver on their mandates, especially from outside of their organizations.

Firstly, the contemporary business environment requires leaders to have wide-ranging knowledge. Not so long ago, many business executives operated in silos: they were the experts in their departments, but they stayed away from the work of other departments (Coulson-Thomas, 2019). The situation has, however, changed significantly today. Business leaders in the current context must take a more comprehensive organizational view. For instance, many chief financial officers have expanded their roles beyond finance into operations, information technology, and human resources. Fostering healthy and sustainable relationships within colleagues within the department can be invaluable when it comes to learning about other divisions of the organization (Yadav & Agrawal, 2017). Successful leaders today are working towards ensuring that they participate in interdepartmental projects and committees (Coulson-Thomas, 2019). Holding high-level management positions in professional firms can also assist business leaders and management executives get a more broad perspective of typical organizational procedures and structures.

The second challenge for modern business leadership is the demand for skilled talent in an environment where companies compete for the most talented and experienced experts. Since in-demand experts and professionals have more and better opportunities today, it is more challenging to recruit and retain the most capable staff (Coulson-Thomas, 2019; Hooper & Potter, 2019). Further, managers frequently must oversee their team in many locations, which makes it even more difficult to motivate their workers. The gap in getting the skilled and talented staff is where successful business leaders tap into their business acumen and communication skills, clearly demonstrating and explaining to each member of their team their career path and role in the mission and vision of the company (Chin, Trimble & Garcia, 2017). After explaining to the staff their career paths, they can then support them to build their leadership competencies and prepare for more significant responsibilities (Coulson-Thomas, 2019; Hooper & Potter, 2019). Savvy business leaders also seek the way they communicate from their staff, managers, and mentors and follow-through using the best suggestions.

Thirdly, business leaders in the contemporary world face the challenge of information overload. Business executives and those at top management positions today have access to extensive databases filled with data and information that can massively enhance the process of decision making. Still, the volume of data they have to deal with daily can be overwhelming (Johnson-Kanda & Yawson, 2018). The most influential managers and leaders know the process of extract the most valuable information and transform the same into a strategic direction- and how to bring in highly skilled business analysts who can achieve this plan.

The business environment today is dwelling on the knowledge economy. Information and data are available in infinite abundance, delivered automatically to mobile devices, and using a few clicks of the mouse (Sashkin, 2016). The flood of information that swamps managers and business executives daily seems to be producing more pain than gain (Sashkin, 2016). The available current research shows that the current increasing volume of information and data and its interruption of managers’ work, can adversely affect not only the well being of the leaders but also their productivity, innovation, and decision-making. A recent study showed that the staff takes an average of about 25 minutes to resume their work tasks after being interrupted by an email. That is not good news, not just for organizations but also for leaders and their subordinates (Sashkin, 2016). The ability of leaders to sift through loads of information, get the best insights to implement in their organizations is limited because of time and available resources.

Lastly, business leadership suffers from constant changes that have to be implemented to ensure the smooth running of their organizations and the desire to maintain a competitive edge. In the past, companies understood how their competitors conducted their businesses. However, new business models are being introduced by firms all the time today. What is more, technology is changing every single day. The constant change makes it crucial for business executives to stay on top of market trends and remain transparent and adaptable to change (Sashkin, 2016). Successful business executives regularly read top industry articles and blogs, follow industry leaders on social media, and subscribe to newsletters. The modern business environment also requires training in information technology to ensure they keep up with the changing trends.

Developing Effective Business Leaders

The current business leader must understand how to act strategically. Forward-thinking, open-minded approach is essential for modern business leadership. Business leaders must show willingness and readiness to adjust their strategies to capture emerging chances and address unexpected problems (Yadav & Agrawal, 2017). Business leadership, thinking strategically should be considered an ongoing process that involves assessing the organizational environment and adapting appropriately. Exceptional business leaders cultivate strategic thinking by being flexible in their mindsets, ideas, and approaches; focusing on the future and thinking about the operational conditions of the organization; having a genuine interest and curiosity into the company and the broader environment of the business; and maintaining a positive outlook of the organization (Yadav & Agrawal, 2017).

Business leadership significantly revolves around effective communication. Great leaders know when to issue instructions and when to listen to their peers and subordinates (Taylor, Santiago & Hynes, 2019). Effective communicators must also explain to their staff succinctly and organizational goals and specific tasks. Connected to effective communication is the ability to set clear goals and inspire teams to achieve them. Their subordinates must-see leaders as being passionate about achieving goals that have been set up (Chin, Trimble & Garcia, 2017). In creating these goals, clear strategic vision and direction should accompany clear and straightforward communication.

While leaders can work on their professional profiles to become exceptional business executives, organizations also play a huge role in developing the type of leaders they need to run their businesses (Chin, Trimble & Garcia, 2017). Firstly, organizations should promote high potential employees who possess the leadership competencies and skills needed for the specified roles and the goals of the team. Most firms today pick new leaders by evaluating internally at the highest performing individual contributors. There are several excellent reasons why firms to this, and looking to an organization’s top talent is a great place to build the leadership pool (Taylor, Santiago & Hynes, 2019). However, a robust selection process needs to be put in place to ensure that these potentials possess the right leadership skills required for successful job performance in their roles and as they contribute to the leadership team of their organizations.

Secondly, organizations can build effective business leaders by empowering them to make decisions. If leaders are not authorized to make decisions, failure is likely to creep into the organization (Taylor, Santiago & Hynes, 2019). Leaders and their subordinates understand when they do not have the authority to make decisions. Several things can go in the wrong direction if leaders are not allowed to make decisions. Making leaders autonomous and allowing them to make decisions brings a sense of responsibility and belonging, which is beneficial for the health of the business.

Lastly, organizations can create a culture of continuous learning and development for their leaders. By emphasizing skill development and continuous learning as the core principles of the organization’s culture, organizations can both attract and nurture great leadership traits and skills in the workforce (Coulson-Thomas, 2019). Maintaining an open and healthy channel for raising concerns and asking questions creates a positive environment through which continuous learning can be conducted. The workplace is then transformed into a place of education and productivity for long-term growth and development. By defining the leadership skills and traits most required by the company, the organization can better identify the characteristics within and outside the organization.

Conclusion

Successful business leadership, according to Taylor, Santiago, and Hynes (2019), revolves around the intellect and power behind successful organizations. Successful business leaders are the visionaries that steer their brands around pitfalls. They understand when to rally the staff to achieve the strategic vision of the company and seize opportunities for growth and development. The simple and clear fact is that the business environment today is continuously changing ad evolving. With these changes and evolution are new pressures that leaders have to face every day (Johnson-Kanda & Yawson, 2018). To help their organizations remain on top of the competition, business leadership requires investment in time and effort to improve and refine their leadership skills. However, one factor remains constant and consistent; successful leaders are unable to achieve their personal and organizational goals without building a talented, skilled, and engaged workforce. As stressed and reinforced by Johnson-Kanda and Yawson (2018), successful business executives engage their staff, help them build their leadership skills, and work to grow their organizations together.