Business leadership is important because it touches both the internal and the external stakeholders within the industry and beyond.
Here are five reasons why business leadership is important:
1. Ensuring the Business Maintains its Vision
A business leader needs to always be on their toes and alert in order to ensure that the organization has a vision and stays on course towards the achievement of that vision. This is because in the course of everyday ebbs and flows in an organization, the employees and the organization as a whole may at some point lose track of the big picture.
A good business leader ensures that the ship is sailing the right direction, even in times that the organization has lost its course.
2. Inspiring Morale
It has been said in some quarters that an organization without a leader is like an army without a general. A business leader’s position is to inspire morale among the organization’s employees. This makes the employees work harder and they have their eyes on the prize.
They can therefore work with the image in mind that their leader knows what their role is. This raises the morale and confidence of employees, and helps them to get things done without material motivation.
3. Guiding an Organization Towards Embracing Diversity
Whether or not an organization embraces diversity depends on the kind of business leadership offered by the organizational management. Some organizations embrace diversity, while others don’t. This may not be because of choice, but may be because of lack of sound business leadership.
A sound business leadership in any organization will always have room for diversity.
Diversity with regards to employment of women, millennials, and minorities in an organization should be guided by the management to create an affirmative action towards this.
Organizations always have a policy on inclusion, and it is the place of business leaders to ensure that there is diversity in an organization. The issue of diversity also needs to be addressed in the board of directors’ level.
This then ensures that the organization does not only have diversity at the employee level, but later on at the leadership level as well.
4. Communicating New Strategic Directions
Once an organization’s management has decided on a new strategic direction for the organization, leadership must communicate this through memos, emails or staff meetings.
This ensures that the change is communicated from a point of authority and therefore diffuses any doubt of whether it is true or not.
It also helps the employees to better deal with the changes that may come with the adopted strategic directions. The business leader is held by employees as a unifying figure and receiving of such communication from their leader is a sort of a reassurance.
5. Ensuring the Employees are Motivated
It is the duty of the business leadership to motivate the employees materially and otherwise. The formulation and implementation of motivational reward systems are the purview of organizational leadership.
This is in line with giving credit where it is due. If an employee has done very well and they need to be rewarded, organizational leadership needs to follow up. This helps to increase motivation within the company.