Owning Your Business is Not Enough: Leadership Skills Required

Business ownership means that you are the boss but being the boss is not enough. Demanding results won't get you the results you want.

Whether you work in teams or by yourself, at some point in time you will work with other people; they might be customers, suppliers, co-workers, or your staff. And unfortunately, even though we might wish it were otherwise, there will be times when you disagree with those people, and when they disagree with you.

A number of small business owners I've worked with believe that if there is a disagreement or conflict of opinions and/or actions, their opinion should rule - because they are the boss. Unfortunately most people working in a democratic society do not believe that is true; but they might not say anything directly in fear for their jobs or their relationship with you. While they might not stand up and speak out directly, you may find that if you choose not to hear what they have to say and not to build an environment where all voices will be listened to, you will soon have a rather non-productive workplace.

People might react in a passive-aggressive manner to being told what to do, rather than being asked for input. Often they may not even recognize that their reaction to being instructed, rather than asked, resulted in a passive-aggressive response (such as procrastination, resentment, failure to do what was instructed, etc.). In our North American society, with its focus on democracy, we have developed into a workforce that is reluctant to comply with orders; we want to participate and be part of a team that works towards a common goal.

If you are having difficulty managing your staff or communicating with customers, suppliers or other stakeholders in your business, assess your personal style and learn how your leadership and management styles effect the results you are trying to achieve.

Some ways to assess your style are to hire a certified coach to work with you; to do some behavior and attitude testing; and the most challenging assessment is to request that your business stakeholders (e.g. employees, customers, suppliers) respond to a 360 degree survey assessment tool. The 360 degree assessment was originally designed as a performance feedback tool alternative to a regular upward performance review (in which employees are reviewed by their supervisors). In a 360 degree review, subordinates, co-workers, direct and indirect management in an organization are asked to comment on, or input to, a series of questions designed to assess the performance of the individual. This 360 degree review has been expanded to assess the performance of leaders.

Without understanding your personal leadership and management style, you will find it difficult to lead and manage your staff to get the results you want for your business. Human resources are your business’ most important asset; yet many business owners do not focus on their human resources, they focus on their equipment, machinery, and facilities.

Repairing, maintaining, adding and replacing assets needs to be one of your priorities but do not forget that you also need to invest in repairing, maintaining, adding and replacing your human assets that can have such a strong impact on your small business success.

Measure Your Business Performance
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