What a successful business leader looks like

By Jean Kruse / Guest Editorial

We all can all name a successful small business. We do business with them. We rely on their products or services. They are the first places that come to mind when we need something. Likewise, we also know what the not-so-successful businesses are in our community. But what is it that successful CEOs do to manage their businesses that the other ones don’t? Do all business leaders have the same attributes? What does a successful small business leader look like, anyway?

Iowa State Sen. Liz Mathis was recently the featured speaker at the Women’s Equality Coalition of Linn County’s annual celebration of women’s right to vote, which this year commemorated the 95th anniversary of the passage of the 19th amendment to the U.S. Constitution. During her remarks, Ms. Mathis discussed the five attributes of an effective leader, and I’d like to share those with you now.

The first attribute of an effective leader is the ability to listen – that includes listening to employees, customers and the community. Ask questions and listen some more. The ability to analyze what you hear and then take action is one of the most important traits of an effective leader.

As you listen, it is important to have diversity of thought. If you are an extrovert, seek input from the quiet introvert in your midst, as he or she may come up with the best idea, and vice versa. Good communication skills and the ability to share relevant information are keys to successful leadership.

Also, never forget to say thank you to those you listen to. Being appreciated is one of the great motivators in the workplace, even better than money. Velma Hart, CFO at the Thurgood Marshall College Fund, says, “Leadership is not always about being in front. Sometimes, it is about being comfortable enough in your skin to lead from the rear and let others shine.”

Second, a leader must be able to take risks. When an entrepreneur has an idea for a business, they must do the appropriate research, make a plan and then take a huge risk as they instigate their plan. Risks are often monetary – new businesses often lose money in the first few months or years – but there is also the risk of failure. A true leader knows that success rarely happens unless a person is willing to take a risk.

The third attribute of a leader is the ability to follow through and bring others along. A leader must get buy-in from their family and employees. To get buy-in, you must be able to articulate the vision and mission of your business. Your family may willingly accept your long hours of work if they understand your vision and its importance.

Communicating your business’s vision and mission to employees is also important, but much more is required to be an effective leader. A leader must first set a good example. If they do not follow the rules or act dishonest, employees will know the rules do not really matter; likewise, if the leader maintains high standards, employees will follow suit. Leaders also encourage individual development and are willing to delegate authority as employees show progress. They gain employee buy-in by being concerned with working conditions, listening to suggestions and praising accomplishments.

An effective leader also knows that lifelong learning is required both for themselves and their employees. Getting education in your chosen field – perhaps graduating with a degree in business – is not enough. The quickest way to stagnation is to reject new modes of thinking.  Entrepreneurs are defined by their ability to embrace new technologies, new theories and new practices. The entrepreneurial mindset is fed by an unending appetite for new learning, and will help you expand your skills and grow your business.

Finally, an effective business leader must balance their confidence with humility and learn from their failures. A failure or a disappointment can be difficult, but they are also great opportunities to learn. Instead of being ashamed of the mishaps you’ve had, seek the lesson you can learn from your mistakes. Each failed experience helps to shape and strengthen a person as an individual who can become an effective leader.

Rosalynn Carter, wife of President Jimmy Carter, once described a leader like this: “A leader takes people where they want to go. A great leader takes people where they don’t necessarily want to go, but ought to be.”

If you need a mentor with whom you can discuss ideas, sign up for a face-to-face meeting with a SCORE mentor on our website, www.scorecr.org.  You can meet with your mentor as often as you like and the discussions are free and confidential.

 

 

 

Jean Kruse is a SCORE counselor and SCORE Iowa district president. She operated her own CPA firm for 13 years and in 1988, joined RSM McGladrey, a national firm, where she provided accounting and tax services to small businesses.