What Makes An Effective Leader?

• Is it their courage?
• Their business acumen?
• Their expert knowledge?
• Their ability to organise?

The cost of being an ineffective leader

According to a 2011 study by The Ken Blanchard Companies, the average organisation is losing an amount equal to 7% of its annual sales because of poor leadership. That’s more than $70,000 per year for a practice with $1 million or more in annual sales.

Think about it.

Ineffective leaders create a disengaged workforce, and employees that are not loyal to their job and the company will start looking for new job opportunities. This creates a snowball effect of sorts where companies have to spend time and money filling the vacant roles, and training new staff members.

More organisations simply need to recognise the importance of assessing and developing leadership.

The issue of leadership can be ignored, but the price of doing so cannot be when you are paying for this neglect.

What makes an effective business leader?

Jim Collins argues the key ingredient that allows a company to become great is having a Level 5 leader: an executive in whom genuine personal humility blends with intense professional will.

The concept of Level 5 Leadership was created by business consultant, Jim Collins, author of the book From Good to Great.

The concept came about during a study that began in 1996, when Collins began researching what makes a great company. He started by looking at 1,435 companies, and ended up choosing 11 truly great ones. These 11 companies were all headed by what Collins called “Level 5 Leaders.

He found that these leaders have humility, and they don’t seek success for their own glory; rather, success is necessary so that the team and organisation can thrive. They share credit for success, and they’re the first to accept blame for mistakes. Collins also says they’re often shy, but fearless when it comes to making decisions, especially ones that most other people consider risky.

Two Sides of Level 5 Leadership

Level 5 Leaders also possess qualities found in four other levels of leadership that Collins identified.

Although you don’t have to pass sequentially through each individual level before you become a Level 5 Leader, you must have the skills and capabilities found in each level of the hierarchy.

Move up from being the Manager to being the LEADER of your Podiatry practice

It takes time and effort to become a Level 5 Leader, but the good news is that it can be done, especially if you have the passion to try.

Here are some strategies that will help you grow emotionally and professionally, so that you can develop the qualities of a Level 5 Leader:

Channel your ego away from yourself

Channel your ego away from yourself towards the bigger goal of building a great company. That’s not to say that Level 5 Leaders don’t have large egos or ambitions – they do. The difference, is their ambitions are first and foremost organisational goals, not personal goals.

Set up successors

Set up your successors for future success. Work to ensure the practice is even more brilliant in the generation after you. Level 5 leaders are comfortable knowing most people in their practice won’t even realise that the practice’s path to success can be traced back to them.

Ask for help

Level 5 Leaders are sometimes mistakenly thought of as “weak,” because they ask for help when they need it. However, learning how to ask for help is a genuine strength, because it lets you call upon the expertise of someone stronger in an area than you are. The result. The entire team wins; not just you.

Take responsibility

A top attribute of Level 5 Leaders is that they take responsibility for their team’s mistakes or failings.

Develop discipline

Level 5 Leaders are incredibly disciplined in their work. When they commit to a course of action, no matter how difficult it is, they stick to their resolve.

If you know in your heart that you’re right, then don’t let naysayers dissuade you from a course of action. It’s always important to listen to differing opinions of course, but don’t let fear be your driving motivator when you make, or change, a decision.

Lead with passion

Level 5 Leaders are passionate about what they do, and they’re not afraid to show it. When you demonstrate to your team members that you love and believe in what you’re doing, they will too. If you’re having a hard time finding passion in your work, then you need to search for the human benefit in what you’re doing.

The acceptance of leadership is a great responsibility. It is both scary and exhilarating. Once you decide to become the Leader in your practice, you cast off the fear and dependency that hold most people back and forge ahead with a positive attitude.

You design your own future. You set yourself fully on the path to becoming everything you are capable of becoming.

We’d love to know your thoughts or personal experience with Leadership. Share in the comments section below.

Until next time

Greg