Any productive activity in an economy needs four primary elements in order to succeed. These are land, labor, capital and entrepreneurship. However, in any business setting, leadership is the catalyst that ensures other three fundamental constituents work seamlessly. Without this critical factor, the other resources necessary for conducting such a pursuit in any commercial or industrial establishment will remain dormant and ineffective. Savvy and effective leaders in business are able to inspire and motive those around them to make sure the activities of a business enterprise operate effectively. They understand the vision, mission, objectives and execution plans of the organizations they manage to be able to lead the workforce to realize them.
Role of an Effective Business Leader
Leslie Hocker, a prominent entrepreneurial coach and business expert says good and effective leadership plays vital role in the success of any commercial or business venture. What such an organization is now and what it will in the future is because of the entrepreneurial skills of its leader. She explains that businesses, which have inadequate capital, can always borrow money from other institutions. Again, when locations of such enterprises do not attract enough customers, they can move to a different place. However, organizations that are lead by individuals, who do not possess the expertise, skills and business acumen to operate them, have no chance of surviving in the marketplace.
She further explains that the essential qualities of an effective business leader in any commercial or industrial organization are as follows:
- Honesty
A business leader is ineffective and worthless without his/her creditability. Such an individual must be able to gain and develop the trust of his/her clients, employees and stakeholders by being truthful when dealing with them. This is particularly important when conflicts arise in the organization he/she is operating.
- Be Clear and concise
It is important for any leader running a business establishment to ensure that those around him/her understand what tasks they need to carry out daily. Moreover, such a person must be able to supervise and guide them at critical stages to ensure their accomplishment. For this, such an individual needs to be explicit in his/her directions.
- Decisive
Situations may arise where there are numerous possibilities and each of them have potential risks. However, it is important for any effective leader to take a firm decision and strive to accomplish it. Moreover, such an individual must also be responsible for the out of the decisions he/she takes and move forward.
- Communication
An effective business leader must be able to share information, motivate people, resolve conflicts and advise subordinates in order to run a commercial venture successfully. For this, such an individual needs to have exemplary communication skills
- Courage
A good leader worth his/her salt must be able to take calculated risks and be accountable for his/her actions in the course of operating a business organization. Mistakes do occur in certain situations but it is important for the individual to learn from those errors.
Leslie Hocker clarifies that the above traits in an effective business leader make him/her stand out among the crowd.