Framework for first time and frontline leaders
One of the great challenges faced by small and medium business is the capability of their frontline and first time management.
Think and Grow Business Director Tony Curl says small business is renowned for people creating businesses from a specialist skill set, and they grow that business to a level based on that skill set.
To continue to grow means employing staff and teams and that is often seen as a minefield for owners. In fact, many businesses make the choice to limit their growth to remain a single person business to save themselves the hassles and stress of employing staff and building teams.
The owner is often the foundation of the business because of their technical skills, and the ability to manage process and lead people is often overlooked. This causes productivity and performance issues for the business and often an attitude of “I’m better off doing it all myself”
We see this in small business regularly and it’s supported by the ongoing research that has been conducted since the Karpin Report comprehensively reported on Australian Management Capability in 1995.
And these studies show that Australian small and medium businesses have significant scope to increase performance and productivity by enhancing their leadership and management capability.
They show our strength is in operational leadership where we rank above average in the world.
However, we rate at average or below in areas of overall performance and people, and that small and medium sized business are the ones that wear the cost of this.
Research report, Management Matters, from 2009, reported that corporate and larger business perform better in the key areas of performance and people than SMEs.
No surprise there and no surprise also that family businesses suffer more than SMEs in general.
Generally, leadership in a family business is one of the greatest challenges faced in business. Those in these situations tend to accept it as part of the cost of doing business.
Firms that can unlock the management capability conundrum and build leadership effectiveness, will create a greater sense of accountability and a more productive workplace culture.
That’s our small business challenge. Some research* indicates that sales per employee can increase by up to 50 per cent with greater engagement from team members and engagement is a clear indicator of management and leadership capability – 50 per cent greater sales effectiveness.
As owners we tend to focus on cashflow, systems, processes and marketing demands of our businesses, losing sight of the impact of management and leadership training.
We do not gain the benefit of effective leadership and management. We rely on our people to become “natural” leaders based on their competence and our results speak for themselves.
Good businesses build a solid framework around how they manage and how they lead.
These leadership models are useful for businesses to create a framework for their managers and leaders to operate in. Good leadership models create a performance culture based on good leadership practices.
No surprise that businesses that have and use leadership models create a competitive advantage in their industry.
The models usually cover four key areas:
• Culture – (people)
• Strategy – (performance)
• Foundation – (values)
• Vision – (goals)
The model incorporates business performance and people.
That’s why leadership models are effective for business.
They provide the basis for the way in which the people in your business behave, manage, lead and drive results.
And it starts when the leader reviews their history of results and analysed how they had previously led others and teams to success.
Combining that with our core values and principles provides the foundation for the creation of your leadership model.
Understanding what leadership style has built success in the past, allows us to build a model for success in the future. Its starts with you.
Find out how you can create competitive advantage by implementing a leadership model for you, your team and your business.
Register today for the CCIQ leadership breakfast event with Tony Curl from Think and Grow Business where he will detail a leadership model that can be built for your business.
Register today for the June 14 breakfast and unlock that competitive advantage.