Why Is Leadership Important In Business?

Every successful company has one thing in common: They are led by a Dynamic Leader. So what makes a leader Dynamic? There are many attributes that a Dynamic Leader possesses, but one thing that differentiates a good Leader from a Dynamic Leader is their willingness and ability to successfully empower others within their organization.

In no other realm are Dynamic Leaders more important than in small business. A small business by definition does not have seemingly infinite resources at its disposal. A small business does not enjoy an endless stream of ivy-league quality applicants busting down the door, resumes and amazing intellects in hand. A small business does not have a multi-million dollar marketing budget that can use a “trial and error” approach to determine the appropriate marketing strategies to employ. A small business will always remain just that – small – unless it is grabbed by the throat and forced out of the small business mentality by a leader who is dynamic enough to achieve results using the finite resources at his disposal. A small business must be led by an individual who can get it right the first time; trial and error will likely result in complete and utter collapse of a small business enterprise.

All leaders are not Dynamic. In his book “The 21 Irrefutable Laws of Leadership”, John C. Maxwell explains “Leading well is not about enriching yourself – its about empowering others”. A Dynamic Leader will recognize that he simply cannot perform every important function of a business; a leader who attempts to do this will hold his company back from realizing its full potential. A truly Dynamic Leader will learn to identify individuals within his or her own organization who have the requisite skill set and ability to become leaders within the organization, and the Leader will empower them with authority over specific functions, duties, departments, or other aspects of the business.

A Dynamic Leader will give them the resources they need, including access to him/her, or to outside experts within the field, and then will turn them loose to achieve. A Dynamic Leader does not micro manage his or her subordinates. Micro-management is the antithesis of empowerment. People with true leadership potential within any organization, small business or otherwise, will resent being micro-managed, and cannot operate effectively under the intense scrutiny that accompanies micro-management. They will be chased away by this approach, and will be replaced by those who are order takers, rather than leaders.

The concept of empowerment is especially important in the realm of small business. Any small business that wishes to make the leap to being something other than a small business must be led by a Dynamic Leader. And a Dynamic Leader recognizes the importance of identifying, developing, and ultimately empowering individuals who will become leaders in their own right. A Dynamic Leader seeks to become a leader of leaders, not a leader of “yes men” or bureaucrats. If people are a business’s number one asset, then developing and empowering leaders within your organization is crucial to utilizing your company’s primary asset.

So what if you are a small business leader, and you simply don’t have the right people in your organization to become leaders of your company? There are numerous resources available to your small business that you can lean on while you grow, and as you seek leaders within your organization. It is possible to “outsource” leadership by finding independent third parties who can step in and perform the duties and tasks that are necessary to help the business grow, and achieve its full success potential. If you are a Dynamic Leader, then you will realize that you cannot do everything yourself, you must learn to lean on the abilities of others, whether on upcoming leaders within your organization, or from outside sources. A truly Dynamic Leader would never do anything to hold his or her organization back from achieving success.