A leader is responsible to give a sense of direction and establish a strong vision, while inspiring fellow employees, creating a positive work environment, boldly addressing conflicts, making strategic decisions and leading change. Leadership is important for entrepreneurs and in the absence of strong leadership will cripple the performance in operations and torpedo them to fail.
An entrepreneur is by default a leader who takes the risk of managing resources and must be capable of seizing opportunities in the business sphere. Primarily a leader identifies the vision and objectives of the organization, supplements with a comprehensive plan in order to achieve the predetermined goals of the organization.
A leader should set an example for the rest of the followers by working tirelessly and showing passion about the work which will inspire the employees. Leaders should be capable of making the employees feel valued and respected, their effects recognised and show them that their contribution will lead to create a positive work environment for the success of any organization.
The COVID-19 pandemic and the economic crisis that Sri Lanka is experiencing since, urged leaders to make tough decisions and in shorter timeframes. Leaders are often pressured and challenged to make difficult decisions and not so popular ones. It’s essential that strong leaders make these tough decisions fairly and ethically, which is an important quality to maintain.
Having a strong leader will ensure great success to the business organization even during turbulent times which leads to improving the morale of the employees. Bill Gates, Co -founder of Microsoft; Warren Buffett, CEO of Berkshire Hathaway; Jeff Bezos, CEO of Amazon; Elon Musk, CEO of Tesla and Henry Ford, Founder of Ford are such world renowned business leaders who have changed the course of businesses and inspired a million across the world.
Leadership skills
The most important skills a leader should possess are communication, decision making, critical thinking, problem solving followed by the capability of motivating followers. Routinely leaders will encounter challenges, dissatisfactions, conflicts which must be resolved and strong communications with the respective parties is very essential. Facilitating step-by-step resolutions and maintaining healthy relationships among the team members, customers and other stakeholders of the organization is a vital quality to have.
A leader is a lifelong learner who must keep track of the latest trends in the business world and management techniques since technology advances at an explosive rate which sometimes changes dimensions of management from time to time. A leader also should be open to feedback and listen to the voices of the followers, which will help to rectify mistakes and encouraging this two-way communication will create a sense of belonging and lends a positive environment around the workplace. A leader should not be afraid to take risks and should have confidence in the moves he/she makes as this will assist an organization to be flexible and absorb shocks in the market.
Inspiration and positive environment
Strong communication is the first step in creating a highly motivated team where the leader must communicate clearly and effectively. When everyone understands the vision of the leader, it is easy to achieve the predetermined goals and also be flexible enough to adapt to change. Creating an environment to unleash the full potential of the team will uplift the morale where their efforts are valued while providing them the opportunity to learn and grow. Creating a positive environment is very important to succeed in a fiercely competitive business world, such a positive work environment is one where employees feel valued, respected, and supported. It is a place where employees feel comfortable being themselves and where they can do their best work.
A leader must get regular feedback from the team which will improve the performance of the team and the organization. He/she should also celebrate the success of achieving important goals by employees which will encourage them further to work hard and deliver the best to the organization. The environment shouldn’t be rigid, it should be fun and engaging creating a relaxing workspace for the team to perform at an optimum level.
Conflict Resolution
Conflicts are inevitable in day-to-day business operations and arise due to individual differences, goals, working styles etc. As a leader when a conflict arises you should be very calm and focus on listening to the other person’s perspective which will help to avoid any misunderstandings. Respecting all the parties involved should be a good quality a leader should have. A leader should also remember to focus on the problem rather than focusing on the person which will help to stay objective and find the most suitable solution to the problem encountered. He/she should be a great negotiator and be willing to make compromises. Most encounters can be resolved by compromise and the leader should be sharp enough to manage such situations. A leader should be capable of understanding whether a third-party mediator is required to resolve a particular conflict as some conflicts could go beyond the capacity of the leader to resolve.
Strategic Decisions
Making strategic decisions is a routine task for a leader and some of these decisions will be tough. A leader should possess an intuitive understanding of the business as he will be called upon to make decisive calls. To become a successful leader, they must make informed decisions rather than compromising decisions based on emotions. A leader must be aware of the latest trends and developments in the respective sector of business which will facilitate more than one solution to problems the organization will encounter. Some of the strategic decisions that a leader will have to make will not be the most popular decision but will be in the best interest of the organization. The leader must be confident in the decisions made and should stick to the plan without deviating. Good governance, transparency and proper feedback channels will facilitate better strategic decisions especially when operating in a VUCA (Volatility, Uncertainty, Complexity and Ambiguity) business world. For example in 1997 Apple Inc. was on the verge of bankruptcy but Steve Jobs took some strong strategic decisions focusing more on the products of Mac and iPod which changed the course of the brand becoming the wealthiest company in the world and Apple becoming the most successful brand in history. Therefore, one leader can change the direction of an organization.
Embrace Change
In an ever-changing world the only thing that doesn’t change is “change”, business organizations must be able to adapt to change and face boldly to the development followed by the change. Change is inevitable and inability to change in an evolving business environment at a fast pace will test the survival of the organization. One of the best qualities of a strong leader is the ability to delegate and empower the team members which will facilitate quick decisions and will make the structure of the organization flexible to adapt to change. A leader must be patient since changes might take time and having a strong culture accustomed to change within the organization will ensure that the organization will reach its end objectives smoothly. In the face of change the leader must have a strong positive attitude which will lead to have a positive impact during the transition period. Elon Musk has become a role model in leading his followers to change. Through his companies Tesla and SpaceX he has managed to send a strong message to the business community to think out of the box. Elon was able to promote electric cars through Tesla to the entire world making Tesla ground-breakingly popular and eventually helping to open the eyes of the community to discuss sustainability options openly.
A leader is a change agent and is very important for the success of a business organization. Having strong leaders in the business sphere will help Sri Lanka to perform well in front of the corporate giants in the world.
This content was facilitated by CeFEnI/COSME and prepared by the University of Sri Jayawardenapura, Kotte
