Leadership - Why It Matters

Leadership is more than understanding pluses and minuses on a balance sheet. Leaders are tasked with communicating with, influencing, and managing people. This is no small task as diversity is at an all time high and showing no signs of decreasing. In an increasingly aggressive market organizations are constantly charged with getting the edge that will help them win out over competitors. It’s difficult to do this if you are constantly plagued my employee turnover, losses from employee error, lack of productivity, lack of creativity, or lack of vision and direction. Leadership is the pivot point for the organization linking challenges and successes to the balance sheet.

A common and destructive myth is that leadership is an innate skill that requires someone to make the tough calls. Policies, procedures, and accountability do not make for effective leadership or a profitable organization. While these tangible aspects of an organization have a place they don’t denote effective leadership or profitability. Leadership’s communication with employees, vendors, customers, and stakeholders underscores every aspect of an organization and sets the tone for every action or inaction they experience. While it might seem like a non sequitur that a lack of job descriptions would result in a lack of productivity, it exists. Communication creates reality, and each word builds this. There are no little words or conversations - they all matter, a lot.

Communication and leadership are learned, practiced, and grown. We aren’t born with the ability to influence and lead. These characteristics require intentional and continuous attention. If you settle for the skills you or your team have the growth you seek will never be realized. Unhappy, confused, unmotivated, underutilized employees directly and dramatically affect the bottom line. It is leaderships’ job to see where the gaps exist and work to address them. Simply blaming employees or external factors will only perpetuate and usually worsen the challenges you see. Great leaders strive for constant personal and professional growth. Effective leaders understand the importance of communication on their financial health.

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