The Best Practices of a Leader

Strong effective leadership helps small businesses meet their objectives and drives the changes that are essential for growth. Great leaders develop winning strategies, drive innovation, implement change, and create organizations that can succeed in complex markets. Strong leadership is equally important at the project-team or business-unit level to ensure that teams and individual employees make the strongest possible contribution to the success of the business.


  1. Effective leaders adopt a style that is appropriate to the business. The website identifies four important styles: visionary leadership, coaching, affiliative and democratic. Visionary leaders set a vision that engages and motivates employees. Leaders with a coaching style help employees relate personal goals to the objectives of the business. Affiliative leaders build and encourage teamwork as a way of meeting business objectives. Democratic leaders encourage employees to participate in making decisions or suggest new ideas for the business.


  1. Good leaders set a clear vision for the future so that all employees understand the direction of the business and their role in achieving the vision. A vision such as “we will become the leading supplier of techno-widgets for the oil industry” describes the products and the markets the company will focus on and sets out the ambitions for the business. The vision enables the company to identify the skills and resources it needs to achieve the vision. It also motivates employees by establishing the standards they need to achieve to make the company a leader.


  1. Good leaders encourage other managers and employees to improve their performance so that they can contribute to achieving the vision. They do this by involving people in making decisions and encouraging them to set and exceed their own standards. Leaders also provide training and resources to support the individuals and teams that are critical to achieving the vision. Leaders who focus on people and their potential, rather than products and processes, are more likely to create a successful company.


  1. Effective leaders challenge people and processes to bring about necessary change. Challenging conventional ways of developing new products, for example, can stimulate innovation in the company and generate ideas for successful product launches. Challenging traditional organizational structures and building cross-functional teams can increase collaboration in the company and improve performance in areas such as manufacturing, product development or sales and marketing.