Revenue growth, market share and quarterly results are often used as ways of measuring leadership in today’s world. While profits are vital to keeping an organization alive, being a leader extends beyond financial results. It is about managing people – understanding, supporting, and enabling them to do their best work. Organizations with a “people first” approach to leadership tend to achieve long-term sustainable success, not just short-term success.
Appreciating Employees as Individuals
Leaders who are truly effective as leaders will recognize that employees are not simply resources or job titles; they are individuals with emotions, aspirations, strengths, and weaknesses. To be an effective leader means to be empathetic – listening actively to employees and being open to their concerns, while also valuing all points of view. Employees feel valued and recognized, which leads to greater engagement and commitment on the part of employees, leading to a more positive and productive workplace.
Trust and Psychology
People-centered leadership is built on trust. When leaders consistently demonstrate transparency, consistency and fairness toward employees, this creates psychological safety for employees (where employees feel comfortable bringing forward ideas, asking questions, and admitting mistakes without fear). When there is no trust in the work environment, employees may comply but will seldom contribute ideas or wholeheartedly.
Communication as a Leadership Tool
Effective communication is two-way, open, honest, and above all, clear. A true leader doesn’t just tell others what to do but also explains the reasoning behind their decisions and listens to feedback. By using open communication, a leader will minimize the possibility of confusion, clarify goals within an organization, and create a sense of involvement (vs. control) among employees. Through openness, a leader may identify issues quickly, before they develop into larger ones.
Empowerment vs. Control
A profitable leadership style tends to use micromanagement and strict control as the basis for leading. Conversely, a people-oriented leadership style utilizes empowerment. When leaders delegate authority, empower autonomy, and trust their employees, they help build confidence and ownership with their employees. Employees who are empowered tend to be much more motivated and willing to take initiative because they feel a sense of responsibility for the results into which they’ve invested, rather than simply completing a job/task.
Development of People vs. Performance
A true leader will consistently invest in employee “development” for one reason: developing each employee will result in long-term growth for the entire organization. A true leader builds loyalty and creates a future pipeline of leaders by investing in his/her employees’ purchase of their own personal and professional growth through mentoring, training opportunities, and performance appraisal/feedback. While today’s profits may represent current performance levels, employee development will shape the organization’s future success.
Balancing Results with Responsibility
People management is not disregarding profit, it is about achieving results through responsible means of leading people. When leaders lead their organizations responsibly, they achieve performance targets as well as create a balance between corporate objectives and the well-being of employees, workload, and work/life balance. While burnout can enhance performance levels for a short period, shockingly, it will erode morale and retention for the long term. Organisations which are sustainable with respect to their profitability, have employees who are healthy, motivated and supported.
The Bottom Line: Lasting Leadership
True leadership is not about choosing people over profit; rather, it is about realizing that the way that individuals are led, equates to the level of profit realized. Leaders demonstrate True Leadership by focusing on trust, communication, empowering/self-developing their employees, and building an environment where their employees can flourish in their roles. Leaders demonstrate these characteristics of True Leadership in order not only to have financial success but also build strong, resilient organizations founded on respect, purpose, and connection.
