The business world is changing. Not only are workforce demographics undergoing a shift, but digital technologies are having a major impact on organizations. As a result, business leaders need to take a look at the way their companies operate and respond accordingly. The following are four business leadership approaches that are altering workplace culture.
Companies are finding they can no longer rely on solid leaders to take their organization to the next level. In fact, only a small percentage of businesses state they currently have the right talent in place to keep up with the shift to digital technology. One person cannot handle all tasks, and organizations need to recognize this. They must bring together a number of individuals with different mindsets and skills to boost innovation, engagement, and profits. All employees need to be encouraged to serve as leaders.
Every person should be given the opportunity to lead at one time or another. With collective leadership, a business finds they have answers when they need them, solutions to ongoing problems, and more. By allowing everyone to take a leadership role when appropriate, the business will find decisions are made more effectively, it becomes easier to determine the purpose of any particular task, and everyone becomes accountable. Visit liberationist.org for more information on this leadership approach and its benefits.
Business leaders are now coming to realize their organizational structure is no longer providing the desired results. Most large organizations have moved from organizing their workforce by function. They now make use of market, geographic, or product-facing structures as they find this to be of more benefit. The transformation from top-down hierarchies to small teams allows the companies to reward individuals for their input while forming a culture that is cohesive and meaningful. As a result, alignment, engagement, and communication improve.
When companies put employees first, everyone wins. The employees are happier and more engaged. In addition, they tend to be more inspired and will recommend the company to others when a position becomes available. Furthermore, these people who are recommended are three times more likely to be hired and remain at the company for an extended period of time. This extends to those who make use of the company. Happy employees tend to make for happy customers. This goes much further, however. When a company puts the employees first, fewer mistakes are made, productivity increases and absenteeism declines.
With democratic leadership, creativity is rewarded. All employees are encouraged to share ideas and are recognized when they work. While the leader has the final say, employees feel more valued when they are asked for their input. This shows the organization understands the employees are on the front lines and see things those at the top may overlook. Employee morale improves when this style of leadership is implemented and productivity rises. Companies find the shift to this leadership style also benefits them in a variety of ways.
Business owners need to evaluate their organization and determine which method they feel will be of most benefit. Implement this method. If results aren’t seen in an established period of time, try another. Every organization has its unique characteristics, and what is appropriate for one might be disastrous for another. Keep this in mind and don’t give up. By trying new leadership methods, a company will find they can improve their organization across the board and reap the rewards of doing so.
John James is a content writer for Learn To Trade, the foreign exchange education and learning specialists – offering a range of training courses to help people understand the currency trading market, as well as its opportunities and risks.