Why Leadership is Important in Business

 

Why Leadership is Important in Business

Why leadership is so important? The importance of leadership in an organisation or business can’t be overlooked. Effective leadership is crucial for business success. It forms an integral part of a business organisation.

Businesses need leadership or leaders to lead the organisation or business. Great leadership skills in the workplace are essential for leaders or managers to manage organisational activities effectively.

Leadership is equally important for small as well as big businesses.

Leading a business can be challenging and for sure it is not a simple process.

It may involve managing people, making important decisions, forming and implementing strategies, setting a vision, driving the organisation's direction, and other crucial activities related to the business.

To accomplish all these activities, it needs leaders with effective leadership skills and personality traits.

Strong business leadership requires strong leadership skills to set organisational goals and achieve them.

Remember, leadership is not about a position or title, but it is about action and example.

Therefore, great leaders are essential for businesses to achieve great success. Without effective leadership, it is almost impossible to grow in an ever-changing environment.

 

Also read: What is Leadership?

 

Important Leadership Skills for Workplace Success

Leadership or a leader is a combination of different skills. Even if you are not in a supervisory or higher management position still you need to master some important leadership skills if you want to excel in professional life.

Here, are some important leadership skills which are necessary to help you become a strong leader in the workplace or business:

• Communication
• Inspiring
• Visionary
• Strategic Thinking
• Motivation
• Adaptability and Change Management
• Creativity
• Decision-making
• Problem Solving
• Flexibility
• Responsibility
• Team Building

 

Also read: Top 10 Leadership Skills

 

Importance of Leadership in an Organisation or 

business

How leadership is important? What are the benefits of leadership in an organisation or business environment?

Imagine a business without effective leadership; it will be nothing but a failure. 

In this section, I highlighted the importance of leadership in a business setting:

1. Leadership Ensures Vision

Without vision, it is almost impossible for an organisation to grow and get a higher share in the market.

Vision is a futuristic picture of a business. It is not just enough to have a vision, but it must be communicated to the employees of that organisation.

Leadership or leaders play an important role to ensure the business maintain its vision.

Leadership creates, communicates, and implements a vision within an organisation.

Leaders steer up all available resources towards achieving the business’s vision.

Leadership is a real driving force behind the attainment of vision and keeps all forces on track for organisational vision.

The human side of management is very important. This is leadership that aligns vision with employees.

 

2. Inspiring

One of the best qualities of a leader is an inspiration. A leader must be an inspiration to be followed by the people.

Leadership makes the employees work hard towards vision and goals by boosting their morale and confidence.

It is not an easy task to boost employees’ morale, it needs effective inspirational skills.

Leaders can easily accomplish tasks through other people with their inspirational qualities.

Only inspirational leadership can retain valuable employees or staff by boosting morale for business success.

Employees with high morale can help to increase the productivity, performance, and profitability of a business.

 

3. Leadership Motivates Followers

Motivation is important for increasing the productivity and performance of followers or employees.

Motivation helps the leadership to accomplish management tasks and achieve organisational goals through its followers.

It creates an environment in which employees feel positive and confident while performing their duties and jobs.

It is the responsibility of the leadership in a business setting to motivate employees in a materialistic and non-materialistic way.

Sometimes, just some words of appreciation can boost up the morale of employees.

Also, it is the responsibility of leadership to introduce some reward system for employees as a way of motivation.

 

4.  Leadership Creates Leaders

A very important quality of leadership is that it creates leaders rather than just followers.

It is a reality that all followers can’t be leaders. But, organisations or businesses need leaders for the future and they have to lead the business.

A true success test for a leadership is either it creates more leaders or not. Creating more leaders can be challenging. Leadership requires high skills and characteristics.

Unlikely, managers in organisations always want to lead and they think creating new leaders can be a risk for them. Therefore, they create followers rather than leaders.

In the words of Mahatma Gandhi, ‘a sign of a good leader is not how many followers s/he has, but how many leaders s/he creates’.

Tom Peterson says, ‘leadership doesn’t create followers, but it creates more leaders’.

 

5. New Strategies

Businesses need new strategies for growth and success. Developing and communicating new strategies need strategic thinkers.

Strategic thinking is the most important factor in the survival of a business. It refers to the long-term planning of an organization.

Effective leadership doesn’t manage day-to-day tasks, but it focuses on long-term planning.

In this era, it can be difficult to beat the competition and get a higher market share. True leadership’s strategic thinking can help to cope with the competition and increase market share.

Strategy formation is a complex phenomenon. Strategy formation is not just enough, but it must be communicated to all internal stakeholders for effective implementation. And here comes the role of a true leadership.

Even businesses need strategic planning for retaining valuable human resources and it also includes the responsibilities of the strategic thinkers.

 

6. Leadership Manages Change

Change in the business environment inevitable and sometimes it becomes challenging.

The change affects the overall organisation. Managing change in an ineffective way may create hurdles and cause performance decline.

Leaders’ role is crucial when it comes to change management. Change, internal or external may cause stress and anxiety among employees.

It creates fear and employees lose confidence that may impact organisational performance.

True leadership plays a role when the organisation faces operational and strategic change.

Leaders with excellent communication and management skills can minimise resistance to change. They can help the employees to regain confidence during tough times.

7. Leadership Promotes Creativity

You can’t undermine the importance of creativity in business. Creativity leads the businesses.

Creative people play an important role to make a business successful by providing creative ideas.

This is the responsibility of a leader to promote an environment of creativity within an organisation.

Every person is somehow creative, but it needs an opportunity to participate in different activities expressing his/her ideas and thoughts.

By promoting creativity within an organisation, leadership must provide an opportunity for the employees to come with new ideas that help the business to improve performance and productivity.

 

8. Effective Communication

Effective communication is an integral part of a business setting. Without effective communication, business success is almost impossible.

Communication may be internal as well as external. These both are important for a business.

When it comes to internal communication, then the leadership role is quite crucial.

Leadership should communicate rules and regulations to the employees for effective management.

Also, leadership must communicate important decisions to the internal stakeholders.

The employees must be informed by the leadership about new strategies, changes in strategies, or changes in direction. Effective and timely communication reduces the communication gap.

Effective leadership connects to effective communication, and effective communication connects to effective management.

 

9. Develops and Maintains Team Spirit

Great leaders know how to develop and maintain team spirit. Great success needs great teamwork.

Leadership must know how to improve the performance of a team. The performance of a team is directly related to the performance of an organisation.

Effective leadership promotes cooperative interaction amongst team members to avoid competition.

Leaders should provide training and support to the employees to overcome challenges and problems while accomplishing organisational tasks.

They help the employees or followers to maintain zeal and confidence to achieve goals and objectives.

 

Also read: Are Leadership and Management Different?

 

Final Thoughts

The importance of leadership in business can’t be undermined. It covers all aspects of the business to achieve the desired goals.

It is almost impossible for a business or organisation to flourish and succeed without a strong leadership.

Creating more leaders is much more important than achieving the desired goals and making the business profitable.

 

Frequently Asked Questions (FAQs)

Why leadership is important in a company?

You can refer to the above-mentioned points for the importance of leadership.

 

What is leadership and why is it important?

You can refer to my article in ‘also read’ and for the importance of leadership above-mentioned points.

 

Why is leadership important state the 5 reasons which make leadership important?

Leadership is important because it creates

1. Vision
2. Inspires
3. Creates new leaders
4. Drives businesses
5. Develops great teams

 

Why is it important to have leadership skills?

I already explained in this article the importance of leadership.

 

 

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