Good leadership is a key competitive advantage

Good leadership means ability and willingness to create change that drives the firm towards it’s goals, both short and long term. Did you realise that a leaders ability to take charge and who truly cares about their employees is an organisation’s foremost competitive advantage, and a major predictor of a company’s success (Judge, Piccolo & Ilies, 2004)? Our experience is that employees that enjoy being at work, work better, and they have leaders who are aware of their role and effect on the team!

We recommend that companies who hire external consultants for leadership development ensure that the consultants understand the science of leadership, understand their own role and have the required competence. He or she needs to understand the company’s developmental needs seen in light of the current situation, surrounding factors, strategy and goals. When Bjørnson performs leadership development for a client, we’re interested in determining what measurable effect the program will have on the work environment, performance and financial results.
There are many studies that show a connection between leadership, employee engagement and financial results. The Rogaland Leader Survey, is a leadership survey conducted by Bjørnson across 125 companies in Rogaland (Western Norway). With over 5000 participants, it clearly documents several positive effects of good leadership. Among other findings, companies with the best scores on ”perceived leadership quality” have employees who largely agree on how the business is run, feel the strongest loyalty and desire to remain in the company, and have the highest level of trust to their own leader and the company’s leadership. Our tentative conclusion based on the survey results, is that there’s a correlation of 0.2 between perceived leadership quality and financial results.

As important as measurable results, are the qualities that leadership development participants acquire. Enhanced insight and self-confidence, an ability to think strategically both short and long term, clearly define problems and make the best decisions in a given situation, as well as manage risk are some of the qualities in question. 

Practice makes perfect. Confident leaders mean comprehensive leaders across the board, who build a positive company culture and a business ready to meet any challenge the future brings.

Would you like to know more about leadership development?