5 Realistic Reasons that Show the Importance of Leadership

Besides helping professionals to become better leaders, knowing the importance of leadership goes a long way. Understanding this crucial organisational role leads to successful collaborations, effective conflict resolution, and contribution to a positive work environment.

When an organisation is leaderless or has an incompetent leader, it is hard for everyone else to contribute to the fullest potential. It’s like, no one realises who is driving and steering the wheel in the right direction. Operations can halt, communication can misfire, ruin work-life balance, and motivation dwindles.  

Such negative effects make employees look for other options and/or not speak openly about innovation, which leads the company to lose big opportunities in the market. 

Think of Nokia’s marketing myopia. It is widely known today that its upper management created a sense of fear when middle management employees could not meet quick targets. The top management did not give importance to the long-term vision of innovation that could secure its future by improving its operating system. This sense of insecurity led the middle management to fabricate information to the top management for quick results. 

Importance of Leadership in an Organisation: Top 5 Reasons

Leadership is about interaction and depends on the context and situation, i.e. not merely about the leaders’ abilities and personality (Aalateeg, 2017). 

• Journal of Business and Management (ncbi)

Taking this as a justifiable explanation of effective leadership, let’s look into its role and how it impacts long term organisational success.

1. Sets a Vision that Everyone Understands and Feels Motivated By

Great leaders throughout history have had a vision for the long term. This vision is still important to consider – be it in a startup as well as in a large company. It is also not just for the company employees but for the customers. 

Leaders visualise the outcome and leverage communication to build trust and sincerity while showing their followers what they can do to achieve success. 

Related: Best business communications books

They look into each potential obstacle and show accountability to empower team members to navigate challenges to meet the overarching vision. 

2. Creates an Environment of Productivity and Motivation

Strong leaders make sure they never come across these three pitfalls. 

• No one at work criticises them. 
• Team members fear failing.
• Increased employee turnover.

The strategic leader focuses on the continuous improvement of their followers in a compatible environment where they can progress in their career. They need to be certain how they can grow in their roles.

Prioritising well-being, inclusivity, and showing empathy while providing guidance create a sense of accountability among employees. These steps can create high morale collectively. 

Having engaged and motivated employees stands as the paramount factor driving a company’s success. This has been endorsed by 83% of executives and 84% of employees, according to a Deloitte survey. 

Related Read: Emotional Intelligence

3. Improves Satisfaction that Leads to Higher Employee Retention Rates

While the employee must be able to grow in their role, it is equally important to be satisfied with their current job description. 

Many organisations do not set clear responsibilities, and employees do more outside their job descriptions. They are then expected to contribute more instead of focusing on the expertise they were initially hired for. This causes dissatisfaction. 

According to Officevibe’s Pulse Survey, only 30% of employees get to ‘genuinely’ do what they do best. The rest of the 70% lack a sense of purpose. Naturally, the employee in the larger group will look for better opportunities. 

This is where the concept of ‘centered leadership’ from McKinsey & Company resonates. Here, leaders should have five capabilities for the best organisational results and boosting employee engagement. 

These interconnected capabilities are seeking meaning at work, creating a sense of community, converting stress into opportunity, taking ownership of action, and managing energy. 

4. Facilitates Change Smoothly and Transparently

Mastering change management is crucial for leaders and organisations. With regular, inevitable organisational changes, prepared leaders ensure better experiences for employees and customers. 

According to Nicole Braley, a Forbes Councils Member, there are three ways how an effective leader can facilitate change. 

• Acknowledge the change and understand its implications.
• Communicate transparently about the change’s details and impact.
• Lead with self-awareness and introspection.

Explore what change management is in the context of leadership.

5. Resolves Conflicts Without Prejudice

Conflicts often happen in workplaces due to miscommunication. 

This creates a toxic work environment and reduces productivity. 

But good leaders can turn this around. 

Experts from Leaders Media mention how leaders know situational conflict management styles. 

Accommodation

The accommodating approach is straightforward. It allows individuals their way without much resistance. Leaders use it for trivial issues to maintain peace. But they avoid it for significant conflicts.

Compromise

When no side can win, there can be a compromise. Leaders can keep principles yet find comfortable solutions. 

Avoidance

Avoidance dodges conflict. Change topics, delay. Use cautiously to offer perspectives. Ineffective when no one seeks new views.

Competition

Competing resists yielding. It should be reserved for critical matters. Leaders hold firm. Limits discussion but suits vital concerns.

Collaboration

This is a preferable conflict management style that leads to perfect resolution. As everyone contributes, there are no losses. And this strengthens teams. 

Related Read: Conflict Management

Parting Thoughts

The importance of leadership cannot be overstated. Strong leaders steer organisations through challenges, foster innovation, and empower their teams, ultimately driving sustained success.

Taking action is the first step to becoming a leader in any situation. The more you focus on improving your leadership skills, the better you get at leading others and developing a leadership style that fits. 

Take up strategy and leadership courses!