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Business Leadership: Advantages and Disadvantages

Business Leadership

Business leadership is the ability of an organization leader to guide and inspire people and obtain maximum performance from them for the company.

Although they are often used interchangeably, the truth is that leader and boss are terms with different meanings: while the latter imposes himself as an authority and uses his power to rule over other people, the former goes further. And it is that a person with business leadership not only directs but also motivates his work team and influences it in a positive way, without imposing his own ideas, to achieve the goals and objectives of the organization. For this reason, companies today need much more than bosses. They need great leaders: strategic, communicative, charismatic, enthusiastic and, above all, role models.

In this article we want to focus on the advantages and disadvantages of this type of leadership.

Business leadership: Are people the main competitive advantage?

Before seeing clearly what it means to have a leader, it should be remembered that it is the people who truly treasure that advantage. Why?

  • They execute the processes that generate products or services for the customer.
  • They contribute new ideas and innovate in the company.
  • Best ambassadors of the company as a brand.
  • They build strategies.
  • They adopt and adapt new technologies.
  • Generate marketing campaigns.
  • They build relationships with customers.
  • They have projects for professional improvement and benefit the company.

What advantages exist if there is a figure of leader?

Probably, many of the following characteristics you already know because you know them first-hand -either because you are a good leader, or because you have one in your company-. Let’s go there:

  • A favorable work environment is created for work.
  • One of the advantages of business leadership is that the overall results of the company are improved.
  • Increase teamwork.
  • Employee participation in decision-making and other important factors are increased.
  • You should also point out that other benefits of good business leadership, communication is more transparent.
  • Confidence and reliability towards the company is improved.
  • Unexcused absences from work are reduced.
  • Business performance is improved.
  • Short, medium and long term objectives are worked on.
  • With conscientious leadership employees are motivated, this is one of the best benefits of good business leadership.
  • Another of the benefits of business leadership is that the benefits of the company increase when everyone works in a good working environment.
  • By working on all these aspects, the brand image and brand reputation of the company is worked on.
  • Talent is developed.
  • The fear of change reduced, which is a great advantage.
  • The errors that exist in the equipment better managed.

What disadvantages exist if there is no figure of leader?

On the other hand, what drawbacks does business leadership present and what can we do to avoid them? In addition to those opposed to the previous point, some of the disadvantages of business leadership that we can point out are:

  • Opportunities can lost due to lack of execution.
  • Another disadvantage of business leadership is that there can be a disagreement between the leader and the workers.
  • Productivity can decrease in those companies in which tasks cannot delegated as much or the most complicated tasks delegated to the worker.

Extra Points: What qualities should a person with business leadership have?

Build trust

One of the bases of success for a leader is the support of his collaborators. By itself you won’t get it.

To achieve endorsement, you need to inspire trust in people. This is how you will be able to integrate competitive teams, take advantage of the skills to face challenges, develop projects, meet goals.

Develop Empathy

Empathy is a skill that consists of putting yourself in the place of others. People trust their leader when they feel understood.

When a leader understands the problems and needs of those he directs, he can assume a constructive stance to develop plans and seek alternative solutions.

Actively Listen

It is the most optimal listening level; It is when the ability to not interrupt the interlocutor while speaking acquired. The level of internal dialogue is minimal and judgments about the other person’s message avoided.

Active listening allows you to show interest in others; it is an effective way to develop trust and collaborative postures of those directed.

Develop optimistic attitudes

A leader will face many challenges throughout his career. His academic preparation will be a great tool but he needs more.

You will need to fill yourself with positive energy to help you take control of your life.

When problems arise, it is very easy and comfortable to blame the situation and fall into a vicious circle.

It is more effective to have positive attitudes and focus on building goals that help the leader and the company to build a future of possibilities.