A recent study has found that CEO turnover worldwide spiked in the first quarter of 2024. Whilst there may be a variety of (good?) reasons for this, it unavoidably makes me question what makes an effective leader in today’s business landscape.
Every CEO and business leader aspires to deliver. Yet for many, this remains an elusive goal. In fact, statistics prove it: between 2010 and 2019 only 1 in 8 CEOs achieved over 10% revenue growth annually.
That being said, “sustainable growth” has become a crucial component for business survival post-covid.
More specifically, rather than merely focusing on financial gains, businesses are looking at a more comprehensive growth strategy.
Driven by their employees (mainly Millennials & Gen Z who form the majority of today’s workforce), companies are now incorporating employee experience, inclusion & diversity, climate change consciousness and transparency as part of their growth strategy.
Whilst company growth (and financial success) is top of mind for most business leaders, recent statistics clearly show that businesses who put their staff at the centre of their growth strategy do better across the board (financially & otherwise).
I’ve personally witnessed how the emotional connection between leaders and their teams positively impacts overall engagement. Leaders are there to stimulate their teams with an aspirational mindset and culture. By fostering a collaborative environment, as well as setting actionable goals, leaders can develop a culture championed by all stakeholders, which naturally leads to financial success.
Leaders are effective when they hone their ability to be both vulnerable & resilient, empathetic & fair. By doing so, they will appear more “human” & be far more approachable to their staff, which will consequently positively impact overall engagement, as well as the bottom line.
To help you better understand & implement this within your own company or team, here are some actionable steps to get you started:
1. Get to Know your People
Whilst this may seem like a given, most business leaders don’t truly understand their staff’s motivations on a deeper level.
As each person on your team is unique, being able to positively influence their spirit requires an understanding of what makes them tick. My advice would be to spend quality time with your staff and listen to what they have to say.
Listen deeply and observe ‘who they are’. Know what they want to achieve and consider the role they need you to play to enable them to succeed. Understand what energises their spirit as well as the things that typically drain them.
2. Encourage Enjoyment at Work
When leaders foster a positive and enjoyable work environment, it has a ripple effect on employee morale, productivity, and overall business success.
While not every aspect of someone’s role needs to be fun, the draining impact of doing a job we don’t enjoy can be profound. For a company to grow sustainably, its people need to be energised.
Here are some actionable steps leaders can take to do so:
- Promote Work-Life Balance: Encourage employees to maintain a healthy balance between work and their personal life. Provide flexible work arrangements, promote wellness programs, and emphasise the importance of downtime to ensure your employees’ wellbeing.
- Celebrate Achievements: Recognise and celebrate individual and team accomplishments. Whether it’s a small milestone or a major achievement, acknowledging hard work fosters a sense of enjoyment and pride.
- Create Social Opportunities: Organise team-building activities, social events, and outings. These moments allow employees to connect on a personal level, build camaraderie, and enjoy their time together.
- Inject Humour: A light-hearted atmosphere can boost enjoyment. Share jokes, funny stories, or create a relaxed space where laughter is welcomed.
- Provide Growth Opportunities: Encourage continuous learning and development. When employees see a path for growth within the organization, they feel motivated and engaged.
Remember, a workplace where enjoyment thrives leads to happier, more committed employees who contribute to the company’s growth.
3. Inspire Optimism & Belief in the Future
Inspiring optimism and belief in the future is essential for effective leadership. How people feel about the future, and their ability to influence it, are vital sources of strength and resilience within a company.
Leaders who exude positivity create an environment where employees feel motivated, engaged, and empowered.
4. Influence a Strong Sense of Personal Value
When individuals feel valued and appreciated, their motivation and commitment soar. Here are some actionable steps leaders can take to help their teams feel valued:
- Recognition & Acknowledgment: Regularly recognise and acknowledge individual contributions. Celebrate achievements, both big and small. When employees feel seen and appreciated, their sense of personal value grows.
- Invest in Development: Provide opportunities for skill development and growth. When team members acquire new skills or knowledge, they feel a sense of accomplishment and value.
- Feedback & Encouragement: Offer constructive feedback and encouragement. Highlight strengths and provide guidance for improvement. Positive reinforcement reinforces personal value.
- Promote Inclusivity: Create an inclusive environment where everyone’s voice is heard. When team members feel included and respected, their sense of personal worth increases.
- Lead by Example: Demonstrate self-worth and confidence. When leaders value themselves, it sets a positive tone for the entire team.
Remember, fostering personal value leads to higher job satisfaction, retention, and overall business success.
5. Help People find Purpose & Meaning in their Work
Helping people find purpose and meaning in their work is a fundamental responsibility of effective leaders. When employees connect their daily tasks to a larger mission or vision, their motivation and commitment soar. Here are some actionable steps leaders can take:
- Clarify the “Why”: Clearly communicate the organisation’s purpose, values, and long-term goals. When employees understand how their work contributes to the bigger picture, they feel a sense of purpose.
- Individualise Goals: Understand each employee’s aspirations and strengths. Tailor their roles and responsibilities to align with their personal interests and skills.
- Celebrate Impact: Regularly highlight success stories and the positive impact of employees’ efforts. Recognise their contributions and emphasise how they make a difference.
- Provide Learning Opportunities: Encourage continuous learning and growth. When employees acquire new skills and knowledge, they feel a deeper connection to their work.
- Foster a Supportive Environment: Create a culture where colleagues support one another. When people feel connected and valued, their work becomes more meaningful.
Remember, purpose-driven employees are more engaged, productive, and committed, ultimately driving business growth.
6. Build Strong Relationships
The quality of relationships at work can have a very big impact on a person’s spirit & ability to succeed. When leaders prioritise relationships, they create a positive work environment and foster collaboration. Here are some actionable steps leaders can take:
- Set Expectations: Begin by setting clear expectations of how people behave towards one another. Hold people accountable for behaving in ways that have a positive impact on their colleagues and team as a whole.
- Active Listening: Leaders should actively listen to their team members. Show genuine interest in their ideas, concerns, and feedback. When people feel heard, trust and rapport grow.
- Regular Check-Ins: Schedule one-on-one meetings with team members. Use these sessions to discuss goals, challenges, and personal development. Regular check-ins demonstrate care and commitment.
- Empathy: Understand the unique needs and emotions of team members. Empathise with their experiences, both professionally and personally. Compassion builds stronger connections.
- Recognition and Appreciation: Acknowledge and appreciate individual and collective efforts. Celebrate achievements publicly and express gratitude for hard work.
- Conflict Resolution: Address conflicts promptly and constructively. Encourage open communication and find win-win solutions. Resolving conflicts strengthens relationships.
Remember, strong relationships lead to better collaboration, higher employee satisfaction, and ultimately contribute to business growth.
In summary, effective leadership plays a pivotal role in driving business growth. Leaders who prioritise relationships, foster purpose, and inspire optimism create a positive ripple effect throughout their organisations. By encouraging enjoyment at work, building strong connections, and emphasising personal value, leaders empower their teams to achieve remarkable results.
As we navigate the ever-evolving business landscape, let us remember that great leaders not only steer the ship but also ignite the flames of progress, propelling their companies toward a brighter future (and further financial success)!