Leadership- Its Importance in Business

by James P. Tate on August 17, 2011

Everyone can name a person in their life they believe is a good leader.  This person can be in the spheres of business, government, non-profit organizations or the military.  However, can any of us describe the attributes that make up a good leader?  Why are some men and women followed willingly by their subordinates to achieve organizational goals when other men are ignored or even vilified by their subordinates?

Business schools at both the undergraduate and graduate levels tend to focus on the skill and tools of management.  Only in the military environment do we see a strong focus on the tools and skills of leadership.   The topic of leadership is often confused with the term “management”.  In fact these are two entirely different skills for a business manager.  The APICS Dictionary defines management as “The functions of planning, organizing and controlling the transformation process and its utility in providing a good or service to customers.”  Leadership isn’t defined in the APICS dictionary!  We go to the Oxford Dictionary to find the verb “to lead”.  In our context of the business world, to lead is to “guide in direction, course action, opinion … .”

In a recent book on the skills and attributes of leadership, Christopher Kolenda, sets three key components of a good leader:  First, the leader must be recognized by his subordinates as technically competent in his business.  Second, he must build a team that can face the unknown (or unusual) with the confidence that they will succeed.  Third, the subordinates must have trust in the leader.  How does a leader gain the trust of his subordinates?  For the leader to gain trust, his subordinates must believe that their leader is looking out for them and will not intentionally lead them in a direction that will cause harm or get them fired!

How these three attributes are attained is the challenge of leadership.  A true leader will build a team in which the individuals will overcome their fear of change and their desire to be safe, while accepting and working toward to new goal.  Kolenda has collected a series of essays on various case studies of good leadership.  While, admittedly these case studies are largely military in nature, they still show that sound leadership can be the single strongest factor in the achievement of an organization’s goal.

How do you rate yourself as a leader?

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