17.03 – Developing a Personal Leadership Style
Most large organizations have developed according to basic management principles. If you began your career in a larger firm or your current managers have experience in such enterprises, you might be familiar with this scenario. Managers in these organizations plan, organize, and control in a way that produces consistent, if unexciting, results. This formula worked well for much of the 20th century when all a successful company needed to do was more of the same. However, management focused solely on maintaining order and predictability is ill-equipped to deal with the constant change of the 21st century. To effectively cope with change, you need to be a leader as well as a competent manager. Young businesses, in particular, require leaders more than managers initially.
Understanding Leadership
Leadership and management are not the same, although many businesspeople fail to distinguish between the two. The late management professor Peter Drucker summarized the difference: “A leader challenges the status quo; a manager accepts it.”
In a world where product life cycles are shrinking, new technologies have shorter shelf lives, and customers demand faster delivery and higher quality, the leader’s role increasingly involves defining and inspiring change within a company. By setting a company’s direction, communicating this direction to its workforce, motivating employees, and taking a long-range perspective, a leader adapts the firm to its volatile environment. Leaders become the change masters in their own firms.
In a world where product life cycles are shrinking, new technologies have shorter shelf lives, and customers demand faster delivery and higher quality, the leader’s role increasingly involves defining and inspiring change within a company. By setting a company’s direction, communicating this direction to its workforce, motivating employees, and taking a long-range perspective, a leader adapts the firm to its volatile environment. Leaders become the change masters in their own firms.
Delegating
Overwork is a common issue for those running their own businesses. They often feel they lack time to think or plan. Without time for planning, moving forward becomes difficult.
Delegating tasks can ease this stress. Delegation is the art of getting things done your way by other people. As one entrepreneur succinctly put it, “Making other people happy to make you rich.”
Delegating tasks can ease this stress. Delegation is the art of getting things done your way by other people. As one entrepreneur succinctly put it, “Making other people happy to make you rich.”
Seeing the benefits of delegation
Delegation brings benefits to everyone involved:
For the Boss:
- More time for high-value tasks: Free up time to focus on recruitment, selection, or motivation.
- Back-up for emergencies and day-to-day tasks: Ensure a reserve of skilled people who can keep the business running if you’re unavailable. This gives customers and financial backers confidence in the business’s stability.
For Employees:
- Opportunity to develop new skills: Delegating tasks allows employees to learn, discover new skills, and grow, preventing good employees from leaving in search of greater challenges.
- Greater involvement: Delegation encourages ownership of decisions, increasing enthusiasm and job satisfaction.
For the Business:
- Improved efficiency: Allow those closest to the issues to make timely decisions.
- Increased flexibility: More people can perform key tasks, enabling the rotation and adjustment of teams to meet changing circumstances. Delegation also prepares more people for promotion
Delegating Successfully
Successful delegation is not about offloading unpopular tasks but involves a thoughtful management process. Follow this five-point plan for effective delegation:
Decide What To Delegate
- Can anyone else do or be trained to do the work to a satisfactory standard?
- Is all necessary information available for the task?
- Is the task operational rather than strategic?
- Would delegating save a reasonable amount of time?
- Can initial teething problems be managed?
- Can someone else exercise direct control over the task?
Decide whom to delegate To
- Who has the necessary skills?
- Who could be groomed for future promotion?
- Who is likely to respond well to the challenge?
- Who is most likely to remain a loyal employee?
- Whose workload allows for additional tasks?
Communicate Your Decision
- Discuss the task one-on-one with the individual concerned.
- Confirm the employee feels up to the task and agrees to any necessary training or resources.
- Clearly outline the task, its components, measurable outcomes, timescales, and other important factors in writing.
- Discuss how the person proposes to handle the task and allow time for implications to sink in.
- Inform others in the business of your decision.
Manage And Evaluate
- Establish set times to review performance from the beginning. Make intervals short at first, lengthening as performance improves.
- Follow up consistently for successful delegation.
Reward Results
- Recognize achievements, often more valuable to ambitious individuals than money.
- Set realistic goals for the change period and anticipate handling the time lag between change and results.
Evolving Leadership Styles for Growth
All businesses require leadership, but the type and amount needed vary over time. Businesses grow through phases—infancy, adolescence, and so on—each punctuated by a crisis that signifies a dangerous opportunity. Researchers have identified several growth phases, each requiring changes in organizational structure, strategy, and behavior.
Initially, a business may take on any customer, operate informally, and have little management or control. The founder, who provides ideas, drive, and decisions, becomes overwhelmed with administrative details and operational problems. Unless the founder changes the organizational structure, further growth increases vulnerability.
Successful owner-managers tackle these crises by finding a clear focus, building a strong team, delegating tasks, appraising performance, and ensuring progress toward objectives is monitored and rewarded. Each growth phase calls for different leadership approaches—strong leadership, consultative approaches, more systems, or increased cooperation.
Unfortunately, as businesses grow, founders often try to run them the same way they did when they were small, resulting in a big-small company rather than a small-big company. This approach is akin to suggesting that transitioning from infancy to adulthood requires only larger clothes.
Finding a Mentor
Bridging the gap between knowledge and action can be challenging. A mentor with greater experience and wisdom can offer impartial advice and support. If you know someone suitable, that’s great. If not, consider contacting Mentorsme.co.uk (www.mentorsme.co.uk), which recruits and trains business mentors in the UK.
Managing Change
Peter Drucker claimed that a leader’s first task is to define the company’s mission. With product and service life cycles shrinking, technologies evolving rapidly, and customers demanding higher quality and innovation, entrepreneurial leadership means inspiring change.
Being Flexible Enough to Change
To adapt to a volatile and competitive environment, leaders must become change masters. Change can create turbulence that sinks small firms unless they adapt quickly.
Entrepreneurs must see change as the norm, not a temporary disruption.
Planning for Change
Change management is a business process. Following a proven procedure can improve your chances of success. These steps can help:
Tell staff why change is necessary
- Explain the benefits of change clearly, similar to explaining product benefits to customers.
- Explain the background to changes to help staff see them as opportunities rather than threats.
Make the change manageable
Break down the change into manageable parts.
Take a shared approach
Involve people early and give key participants a say in shaping the change.
Get an overview of the forces at work
- List those most affected by the change and categorize their commitment levels.
- Examine how each person is affected and anticipate retraining needs.
Reinforce individual and team identity
- Build self-esteem by emphasizing positive contributions.
- Reward achievements, highlight success stories, and celebrate milestones.
- Pay personal attention to those most affected by the change.
Adapting to the Pandemic at HUSK
HUSK, a custom kitchen business, demonstrated the importance of flexibility and rapid adaptation during the global pandemic. When the UK Government ordered non-essential retail outlets closed, HUSK quickly pivoted to producing flat-pack desks for home workers and students. This swift adaptation allowed HUSK to continue operating and even expand its product range despite the challenging circumstances.
Change often takes longer than expected, with initial productivity declines as people adapt. Setting realistic goals and planning for the time lag between change and results can help prevent discouragement and ensure successful implementation.
