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‘Leading from the front’

All too often business owners/managers believe that strong, confident leadership is all about projecting personal ego and controlling all aspects of the business.

But as the business grows it is essential to develop a confident management team that demonstrates professionalism to a growing customer base.

Morale can be sapped at a crucial stage in development if the business leader does not develop and train his team. He must realise early on that he cannot do it all himself, otherwise the business will not reach full potential and key players are likely to leave to fulfil their career ambitions.

Some examples of Confident Leadership

The world of politics gives very clear pointers. The current Brexit debate has seen a momentum swing largely because the main protagonist, the Prime Minister, is not trusted by electors as much as he used to be because he and his team have been unable to vary their message. The Brexiteers, confidently led by Boris Johnson, have adopted headline-catching themes and electors have warmed to a strong confident statement of intent.

In the commercial world, the phenomenon of Dyson has seen a revolution in product design which has turned vacuum cleaning technology on its head.  James Dyson is a confident, remarkably skilful designer, but he has also inspired a business team, which is strong on product development and marketing on the world stage. Now where Dyson leads, others follow.

Contrast the recent woes of Tesco. For decades, it knocked spots off the competition and stole market share with ruthlessly focused buying and marketing which captivated customers. Led by Chairman Lord Maclaurin and Chief Executive Sir Terry Leahy, it could do no wrong. Maybe it is no coincidence that they habitually spent one day every week in store talking to staff and customers.

But a change of top management exposed serious flaws leading to a perceived arrogance characterised by a distracting diversification programme just when new competitors (Aldi and Lidl), seeing the gaps left by Tesco and the other supermarket giants, came storming in.

So confidence is hard-won, but easily lost if the top management loses sight of its customers. Weakness is as much a product of over-confidence as under-confidence.

As always, start from within

Five simple questions that any business owner should ask himself:

1. How confident are you that your team shares your belief and confidence? Do the financial results bear this out with successful, profitable growth?

All too often, small business owners believe they know the answers, simply because they ‘know’ everyone very well. But do they ask the right questions? And do they operate a disciplined Performance Assessment programme that would assure a balanced response?

2. Is that confidence shared by your suppliers and customers? How do you check this and how frequently?

Again, many business owners would fully believe that others have full confidence in their products, services and people because they ‘know’ them all.

A key part of confidence is the ability to listen and to ask searching questions

3. Do you have a Business Plan with clear objectives and pathways to success?

As a business grows, it becomes crucial that there is a well-defined and regularly updated Plan, and that performance yardsticks are reflected in the roles and responsibilities of managers and staff. Regular updates on company performance are also imperative.

4. Have you communicated that plan to your employees and do you and your management team take ownership of it and constantly sell it?

It is not good enough to ‘do a planning document’ and then file it for an annual update which is carried out by a small group of senior managers.

5. Are your suppliers aware of your goals and how they will be rewarded for strong support?

It is not enough to negotiate the best prices. Your suppliers should understand the value of their support and feel that this is properly rewarded. Yes, the marketplace is angled towards keen pricing, but value is a combination of quality of price and service, not price alone.

A successful business is led by those with pioneering entrepreneurial skills allied with the confidence to entrust the expansion programme to their employees and suppliers. That confidence will inspire long-term customer loyalty and result in long-term rewards on exit.

A future buyer will always be impressed that your business is not wholly dependent on you. A committed, knowledgeable management team will allay any succession planning concerns and enhance value.