Creating a company culture: Lessons form Consolid8

Consolid8 is an accounting firm that was originally built on the experience Managing Director Tanya Titman developed providing management accounting solutions. From that basis, Tanya realised there was a significant need for greater financial literacy among business owners, a focus she believes is a great differentiator for the business. There’s also been a focus on cloud accounting solutions, a fact that has seen the company recognised by Xero for its contribution to the industry.

However, Consolid8 hasn’t just made a name for itself in the way it serves its clients. The company is in the unique position of offering subsidised onsite childcare for its staff – a model that other businesses have expressed their desire to replicate. The childcare facility has provided challenges to the firm over the years, but it is well-established as a key part of Consolid8’s culture. The ongoing benefits it provides Tanya and her team have been well worth the effort.

The challenge: Balancing business ownership with a young family

In the last practice Tanya worked in before starting Consolid8, trying to look after two children (there are now four in her family) meant she experienced challenges often associated with being a working parent.

“[When] having a baby and running a business, you don’t get to take six months off or 12 months off and just enjoy motherhood. It’s like business, it never stops,” Tanya began. “I went through the challenges of trying to look after a baby while balancing that with work, and it was really, really hard.”

“At the end of it I thought ‘no woman should have to go through this’, so when I went out on my own from day one I set up the on-site childcare.”

Tanya approached the inclusion of the childcare facility with no real strategy, but a desire to make it happen so other women could avoid the stress of what she went through. This resolve was put to the test even before the facility’s doors opened. It was originally meant to be a joint venture, but the day the centre was to open was the day the GFC hit, so the other business pulled out.

The solution: Creating a family-friendly working environment

Tanya’s experience in an industry that wasn’t able to offer the flexibility working parents desired was a key catalyst for the on-site child care centre. Women across the accounting sector were being discouraged from coming back into the workforce after having children, leaving them to make the tough decision between their children and their career. At Consolid8, that’s not a choice they have to make.

“Amongst my peers and people I’ve gone through uni with, there’s some amazing talent and I’ve seen them rise really quickly through various firms and do amazing things and then they’ve had a child and it’s all come to a grinding halt because they weren’t offered any sort of flexibility,” Tanya explained.

“If I can present these amazing women with an opportunity to bring their kids to work or have their baby with them and be able to be breastfeeding and not have any of the barriers to being in the workforce… no one has to make the choice between work or family”.

Unfortunately, the process of setting up a child care centre wasn’t as simple as it sounds, especially as Tanya was essentially a pioneer for this model of creating an on-site variant. One of the core decisions concerned whether the centre could be government-funded without incurring significant amounts of red tape.

“If we were to become a fully licensed childcare facility, we could access government funding but to do that essentially we’re becoming a commercial childcare centre, and there’s a whole lot of regulation and a whole lot of requirements for that that made it cost-prohibitive,” Tanya says.

The results: An engaged workforce and a defining culture

The effects of the on-site child care centre have been wide-reaching, and influence more than just the working parents that bring their children into Consolid8 each day.

“A graduate can come on to our team and know they’ve got a lifelong career here if they want it, and they’ll never have to make that choice,” Tanya says. “I’ve had some of my male team members come on board and be able to bring their children to work so that their wives can go back to work.”

Most importantly, the centre is shaping Consolid8’s culture and changing the way staff engage with each other, while also attracting the next generation of employees.

“The parents that are on the team are very connected because their children are growing up together in child care.”

“The talent we get is incredible and we have a lineup of people wanting to come on board,” Tanya notes. “In an industry that is really quite competitive for great staff, it means that we have the edge over many of the larger firms because they can’t match what we can offer in terms of that work/life balance.”

Tanya’s desire to challenge herself while developing Consolid8 led her to TEC, where she finds she is able to be influenced by people from business outside the accounting industry. Importantly for Tanya, the group isn’t just there to congratulate her on what went well but rather exists to question and challenge her – and each other – for the purposes of improving the business and her role within it.

How to receive feedback when in a senior position

As CEOs or managers, you can benefit from constructive feedback. Everyone has areas in which they need to improve, and listening to others can impart valuable information, even if it’s only regarding how others perceive them.

Top leaders — those performing in the 83rd percentile — ask for feedback the most frequently. Upward feedback incorporates feedback from employees in managerial reviews; it gives critical information regarding your relationship with employees. There is no doubt that feedback from employees and colleagues are helpful, but this doesn’t stop the fact that CEOs and managers often receive less feedback and have greater difficulty accepting that feedback.

Major sources of feedback for those in a senior position

Subordinates, colleagues, the board of directors, and even internal measurement systems can all be sources of feedback for you. But all of these sources of feedback are not the same. It’s important to understand how these sources can be best used and how they may sometimes be skewed either negatively or positively.

  • Subordinates. Subordinates are some of the most familiar with your performance because they work directly with you. That being said, they may conflate your performance with management as a whole. Some of their complaints may directly relate to their work rather than relating to your personal leadership style.
  • Colleagues. Colleagues have a significant amount of interactions with an individual but may not be truly objective. In order to continue a solid working relationship, colleagues may be hesitant to offer negative feedback, even if they are assured it would be confidential.
  • Board of directors. A board of directors see the results of your managerial style and can only give you feedback on your chosen business strategies. Because they aren’t privy to day-to-day operations, they may not be able to give accurate criticisms. When an organisation is doing poorly, they may see this reflecting upon you.
  • Internal measurement. Internal measurements such as those provided by enterprise resource planning solutions can give direct information regarding your productivity and success but may not be otherwise accurate, especially in relation to soft skills.

You need to use all these avenues of feedback to create a complete picture of your performance. This is why it becomes important to court feedback from multiple sources as it’s the only way to obtain a full and complete picture of both yourself and the current managerial environment.

Scheduling one-on-one meetings

One-on-one meetings are often the most effective way to get detailed feedback from employees and other colleagues. Though they may at first be hesitant to share any reservations, once they begin talking, you can then explore the issues in detail. Positive feedback also helps, as it can become easier to identify an employee’s or colleague’s values and what matters most to them about their working environment.

For employees, a one-on-one meeting gives them the chance to air out any of their concerns. In many cases, employee concerns can stem from a lack of transparency; they may not understand why processes are in place or the decision-making process behind these processes, as it has never been explained to them. Employees are also heavily involved in the day-to-day processes of an organisation and may see issues that are simply invisible from a CEO or management perspective.

For colleagues, a one-on-one meeting will often reveal how working better together would look like. There may be issues that are not apparent to you as your colleague may operate in a slightly different space and have an emphasis on different aspects of the business. Together, you and your colleagues can find solutions that benefit the business as a whole.

Getting anonymous feedback

Understandably, much of the challenge related to one-on-one meetings involves a hesitance to give direct criticism. Employees are often fearful of their jobs while colleagues may be worried that they will create a combative working environment. Some may not have any work-related concerns but may simply feel that it’s overly stressful or impolite.

Anonymous feedback can resolve some of these issues. Through anonymous surveying tools — such as Survey Monkey or Google Forms — employees and colleagues can evaluate individuals without having to attach their name. In an ideal scenario, this gives them more room to be honest and direct.

However, it’s also not without some issues. In close working environments, it can be impossible to give anonymous feedback without implying who gave it. Because of that, the feedback may be vague enough that it isn’t useful. At the other end of the spectrum, anonymous feedback can embolden certain members to give unnecessarily harsh feedback. Though this feedback may still have a core of truth, it’s important not to take it to heart.

Finding the right approach

Often both types of feedback can be necessary to create a well-balanced picture of your own performance as a leader. But you need to take some time to educate employees regarding the type of feedback that you’re looking to acquire. An emphasis should be on providing constructive feedback; rather than simply stating things that you’re doing right or wrong, employees should focus on how they would like things to be and whyThis gives you actionable information to work with.

Some structure to feedback can be desirable — such as asking employees to give you feedback on specific areas of your leadership: communication, decision-making, efficiency, and interpersonal skills. Employees are more likely to give useful feedback if they’re aware of the areas that you are seeking to improve and the type of feedback you desire.

Additionally, it can be important to separate yourself from the rest of the business and its management. Be specific about needing feedback regarding yourself and your own performance, rather than management as a whole. Otherwise, it can be too easy for both colleagues and employees to conflate you with the business itself and its processes.

When in doubt, ask direct questions, such as the following:

  • How can I better support you and facilitate your work?
  • Is there anything that I am doing that disrupts your work?
  • Have you received enough feedback regarding your work and your position?
  • Are you being given the opportunities to use and develop your skills?

If there are certain areas in which you want to improve, you can also ask your employee to keep an eye out for them. Some examples include the following:

  • Am I appropriately delegating work?
  • Do you ever feel as though I am micromanaging?
  • Are there tasks I give that you feel are unachievable?

Taking steps towards improvement

Whether or not you believe that the feedback was valid or useful, it’s important to acknowledge that it’s been received, understood, and — above all — valued. Whether feedback is negative or positive (and whether you believe it’s accurate or inaccurate), the process of giving feedback is something that you should encourage or reward.

Of course, once you’ve acquired that feedback, you need to process it into action. Feedback has to be assessed — both individually and as a whole. If there are areas that are frequently coming up, such as a lack of communication, then these are issues that you need to work on. If there are issues that are only coming up with a single employee, you may need to assess your professional relationship and whether the feedback may be valid or may be an idiosyncrasy of the individual.

Ultimately, collecting feedback not only gives you the opportunity to grow as a professional, but it also improves an employee’s relationship with the business as a whole. Through meetings with both employees and colleagues, you can develop relationships that are built on trust and work towards making them more functional and efficient. Remember: negative feedback doesn’t necessarily mean you’re doing something wrong; it could mean you’re doing something that isn’t effective for that particular individual.

Collecting feedback doesn’t always mean engaging with employees and colleagues, either. You can also get input and advice regarding your feedback from others who are experienced within your field. Mentorship and peer-to-peer exchange is an excellent way to get more insight into your performance as an individual. Contact TEC today to join a highly qualified, experienced, and professional network of leaders across the globe.

4 tips to running effective meetings

From stand-up scrums to sit-down sessions, meetings take up a large portion of time for any organisation. When managed effectively, a meeting is an opportunity to optimise business operations. But when managed poorly, meetings become disruptive and distracting.

It’s estimated that $37 billion a year is wasted on meetings that are unnecessary — and meetings themselves can offer a false sense of productivity that gets in the way of legitimate accomplishments.

What’s the difference between an effective, powerful meeting and a waste of time? It often comes down to leadership.

Leaders are what set the tone and course of a meeting; they are the ones who decide whether a meeting is necessary, what format the meeting should be in, and how long the meeting should take.

As a leader, you need to take steps to make sure your meetings are living up to their potential.

1. Create a highly structured agenda

Meetings tend to bounce from one topic to another as related concerns arise and an extemporaneous discussion begins. While this type of exploration can sometimes be useful, it’s more often distracting.

Creating a highly structured agenda will keep your meeting focused on the issue at hand. When creating an agenda, ask yourself:

  • What are the goals of the meeting?
  • Who is necessary for the meeting?
  • When is the best time for the meeting?

Expand on your agenda with a thorough outline of the meeting’s discussion topics. A narrow, specific agenda is the most useful agenda; the broader your meeting topics are, the less likely you are to be able to get anything substantive done.

2. Only invite those who belong to the entire agenda

A shorter, smaller meeting is almost universally desirable. Additional members will only expand the scope of a meeting, encouraging it to run longer and reducing its capacity to focus.

Meetings should be as short as possible and should be limited to attendees who are necessary. If team members feel that the meeting is not relevant to them, they will often become distracted. They may even derail the meeting entirely, in an attempt to bring it towards topics that are more relevant to them. Even if they remain silent, their time will still be wasted.

Irrelevant meetings burn out employees — and over time, they encourage employees to ‘zone out’ during meetings even when they are relevant to them. Improving the relevancy of your meetings is the first step towards ensuring that employees are attentive and alert.

3. Stick to the agenda

It’s easy for unexpected issues to arise during a meeting. After all, team members may find themselves suddenly in the room with a large number of people who could solve the problems that they’re currently encountering.

This encourages them to discuss issues that are relevant to their current tasks. But for a meeting to remain efficient, it’s important to avoid being side-tracked.

When an issue that’s not on the agenda does arise, acknowledge it and have it recorded. Make it a point to discuss it in subsequent meetings.

Ensuring that the issue is properly acknowledged is important; otherwise, team members may feel as though they have been brushed off.

Likewise, it’s important to schedule a meeting to discuss the issue if it is a valid one, as otherwise people could forget about the issue.

4. Debrief and follow up

Once the meeting is over, give an overview of the key points the team has discussed and the information that has been gained throughout the meeting.

If it is desirable to get undirected feedback, set aside a time at the end of the meeting for meeting members to address any of their additional concerns.

A report should be compiled to include the meeting’s minutes, and team members with newly assigned projects or tasks should be followed up to make sure they’re on track.

Ideally, every team member involved in the meeting should walk away understanding the issues raised, the solutions presented, and their role in implementation. Written documentation will further improve the process as team members will be able to refer back to the documentation later.

As a leader, you have the unique ability to direct the meeting — and an effective meeting is all about direction. Keep your agenda close, and you’ll be able to keep the meeting on track and moving swiftly.

But meetings aren’t just about structure and process; they’re also about practice and experience. Connecting with other leaders is an excellent opportunity to acquire tips from others. Contact TEC today to find out more about connecting with a peer group of thousands of leaders, entrepreneurs, and mentors.

Making decisions with disagreements

When it comes to business strategies and problem-solving, not everyone shares the same perspective. Before a decision can be made, it’s not uncommon for a disagreement to occur. As a leader, it’s your role to manage these disagreements without letting them disrupt the flow of your organisation.

Sometimes, it’s not always important, or even possible, to make the best decision when you don’t have all the information regarding a certain issue. It’s more important that the decisions are made and that they are made with due consideration. You can achieve this by creating a decision-making strategy and by following these best practices:

Leave emotion out of it

A disagreement can easily become personal. After all, each professional is defending their own point of view, which stems from a combination of their own knowledge and experience. But everyone has their own perspective and no single individual can understand all aspects of a situation. It’s important to remain professional and to leave emotion out of the decision-making process.

Not only can introducing emotions ultimately confuse issues, but it can also reduce the impact of any points you are trying to make. Being clear on facts and clearly justifying your decisions is necessary not only for the best possible outcome, but also to ensure that employees understand your reasoning and do not feel ignored or pushed aside.

Appreciate all suggestions

It’s very easy to dismiss suggestions either as being outlandish or something that you’ve already considered. But rather than making a quick decision and potentially undermining your employee’s confidence, you should instead explore the idea and walk them through your own thought process. Be open to ideas that you might have otherwise dismissed; there may be some components that you haven’t considered.

By being a good listener, asking questions, and trying to see everyone’s point of view, you can create a positive and cooperative atmosphere. Employees will be more willing to share ideas, and ideas that are truly innovative and creative will be more likely heard. Being a primary decision maker is often like being an investigator; you need to explore all of the data before drawing a conclusion.

A failure to consider your employee’s ideas, even when they are truly unsuitable, can eventually lead to frustrated employees who feel unappreciated. When employees offer their ideas, they are trying to help. When that help is ignored, they often feel personally rejected. Moreover, it can make employees hesitate when they truly do have a good idea, as they may feel as though they won’t be heard.

Keep the consequences of your decision in mind

By necessity, each suggestion during a decision-making process needs to be explored to its conclusion. Once the brainstorming is over, each potential decision should be thoroughly outlined, and the consequences of that decision should be thoroughly investigated. The following questions should be asked:

  • What are the potential results of this decision?
  • What complications could arise due to this decision?
  • Who will this decision affect positively or adversely?
  • What will be the ultimate cost, in time and money, of each decision?

It’s possible that you may not know which decision will perform better. It may be something that is truly unknowable, such as a scenario that relies on too many factors, or it may be a decision that requires additional information before it can be made. Either way, if a decision must be made at this time, then the potential consequences not only need to be acknowledged but they also must be prepared for.

In business, it is possible that a decision may need to be made without all of the information present. Because of this, you may need to simply choose the best out of all possible solutions and plan contingencies in the event that there are negative consequences.

Compromising often doesn’t produce the best results

When we were children, we were often taught to compromise. It made sense because compromising is a fantastic way to build relationships with friends and family. But compromise is not a fantastic way to run a business. As a CEO, you need to make decisions that are optimal, not acceptable. Compromise ultimately results in both parties getting a little of what they want and a little of what they don’t need. Compromise leads to two dissatisfied parties and a weakened overall strategy.

CEOs may feel the compulsion to compromise when it comes to important business decisions, especially if tensions and emotions are running high. But when it comes to business, it’s almost always better to set a solid course rather than trying to split multiple strategies. A CEO needs to carefully study when compromise is and isn’t appropriate, and practice mediation in lieu of compromising their decision-making process.

Make better decisions through positive leadership

As CEO, you have already been selected to lead your company. Your company has put its faith in your decision-making abilities for a reason. Part of that reason is because you make well-considered, well-crafted decisions. As long as you are not making every decision in the company, it’s your prerogative to override others.

But it isn’t always that simple, especially when tensions run high or the right decision may not always be obvious. During those times, you may want to reach out for mentorship. TEC provides direct access to leaders and business owners who have experience moderating the decision-making process and ensuring that the right decisions are made day after day. Contact TEC today to find out more. 

The art of defining a market for business: Lessons from Norwest Recruitment

60% of Australian small businesses will fail within the first three years. When polled, 44% of failed Australian businesses suffered from ‘poor strategic management’ and 40% ‘fell victim to inadequate cash flow.’ Many of these businesses failed not because of a lack of opportunity but because they were not able to properly define their market and execute related strategies. In fact, small businesses have been opening m­­ore often throughout Australia due to favourable economic conditions; though all the components for success may be there, the focus and the market research is not.

Since 2002, Norwest Recruitment has operated with a simple goal: connecting businesses to the talent they need to grow and thrive. With over 20 business awards — and a ranking of 47th on the BRW Fast 100 — Norwest Recruitment has been a clear success in the competitive market of permanent and temporary employee recruitment. Erica Westbury, CEO of Norwest Recruitment, has achieved this success not only by identifying the commercial and residential growth within the North West but by also committing fully to the opportunities it represented.

Embrace the challenge

In Australia, recruitment services is not a growing industry. In fact, it experienced a downsizing of -0.4% between 2012 and 2017. This is significant, as nearly all sectors experienced growth. Since 2002, the unemployment rate in Australia has been generally falling, with a peak in 2009 and again in 2015. With this information in hand, it might be easy to think that a recruitment agency wouldn’t be able to succeed.

But it was a thorough understanding of the local market that led Erica to her conclusions. Erica realised that the recruitment agencies that already existed in Norwest Business Park weren’t offering premium-level professional services. Recruitment services were being ignored because they offered both poor customer service and a substandard talent pool. Recruitment services had developed a bad reputation.

By understanding the challenges facing the recruitment industry — one of poor reputation and a flooded workforce — Erica was able to position Norwest Recruitment in an area of the market that was not yet filled. By offering premium temporary and professional talent, she was able to sidestep issues related to low unemployment rates and a stagnant market. Norwest Recruitment became a resource through which HR departments could find the best professional talent. And this was something businesses would always need, even when the market was flooded.

Do it better

When asked about competition tech entrepreneur, Elon Musk, once said, ‘If other people are putting in 40-hour work weeks and you’re putting in 100-hour work weeks, then even if you’re doing the same thing, you know that you will achieve in four months what takes them a year to achieve.’

Businesses need to view their competition as a benchmark and should always be attempting to improve upon their work product. For Norwest Recruitment, it wasn’t just about providing a better talent pool. It was also about providing a better experience, refining processes, and reducing overhead. Businesses today need to be able to stay ahead of their technology, pivot when the market changes, and understand their customer’s needs. Often, a business will even be called upon to anticipate market and customer changes long before the change occurs.

Erica knew that in order to break into the market of recruitment and employment, she had to be able to do it better. There are hundreds of options available for companies that simply want access to a talent pool, but it was better customer service that many HR departments were looking for. By improving upon customer service and putting clients first, Erica was already a step ahead in the game.

The risk in decision-making

As a CEO, you’re faced with difficult decisions every day. Making challenging decisions can be the difference between success or failure, it could even change the entire course of your business. It is easy to fall into the habit of choosing the safest decision to achieve expected results and avoid the risk of being wrong. This may decrease risk but it does not improve results.

It is essential, as a business owner, to remain committed to your choice and be aware that no matter what option you choose, your efforts to support the success is far more important than the cost of being ‘wrong’. Erica’s decision to build a business in a saturated market was associated with great risk. The focus was not on whether this was the right decision to make – rather Erica did everything she could to ensure that her decision turned out right. The success of this is reflected in the 15 business awards won by Norwest Recruitment, including the 2014 Hills Local Business Awards, the 2011 Fairfield City Local Business Award, and the NPAWorldwide Australia/New Zealand Top Revenue Achieved Award.

Learn from other business owners

Business owners must never stop learning. Not only is there a wealth of knowledge out there available from other business owners, but the market itself may change with the times. Business owners need to stay on top of new technology, need to refine their leadership skills and learn new management techniques. They must understand modern accounting standards and have the strategy skills necessary to grow and expand in often challenging marketplaces.

Through TEC, Erica was able to reach out to other business owners, entrepreneurs, and professionals. She was able to listen to experienced and accomplished TEC speakers and connect to a like-minded community that could offer her support and resources. Through this professional community connection, Erica was further able to build her knowledge and confidence as a leader. It’s time you belong to a peer network and learn from the best. Get in touch with TEC today.

The task of delegating tasks

Only 28% of businesses offer any training regarding delegation — even though half of them are concerned that delegation is not being handled effectively. For CEOs and managers, delegation skills are not optional. In fact, these are the only way to progress.

The process of delegation is the process of prioritisation — letting go of tasks that you can allow others to handle so that you can focus on the tasks that only you can handle.

Through appropriate delegation, CEOs and managers can free themselves up for the most important tasks while also giving their employees the benefit of additional experience and advanced skills.

Nevertheless, there are some definite psychological and practical barriers to delegation that can cause CEOs and managers to hesitate. It is these barriers that need to be cleared to achieve more effective business processes overall.

1. Identify the tasks that can be delegated

Delegation should always begin with the simplest tasks and work its way upwards to the more complex ones. In a well-run business, every task is important — but some tasks are less complex than others.

A good candidate for delegation will be a task that is routine, repetitive, consistent, and teachable. This is a task that is easy to explain to an employee and that they have the skills and the capabilities to complete. This is also a task that does not change often and does not require any special access or permission to complete.

It isn’t always easy to identify a ‘simple’ task. For instance, there may be interactions with vendors that appear to be simple mechanically but would require your personal social interaction to complete. So before delegating, ask yourself whether an employee may encounter any roadblocks during the task that you yourself may not, such as not having in-depth knowledge of a customer or a business process. This doesn’t mean that the task can’t be delegated; it merely means that additional work may be needed.

2. Match the task to the employee

It is important that you hand over tasks to employees who have some level of competency within the area. As a leader, it is likely that you are handling many different tasks that utilise different skills, ranging from business knowledge to interpersonal communications.

So knowing your employees is the first step towards understanding which tasks they are best suited for — though you also shouldn’t hesitate to give a capable employee a chance at something that may be a little outside of their skill set.

When delegating, it often becomes the case that a CEO or manager will discover that one employee is highly competent. These are the employees that often begin to take on more delegated tasks and processes, and it should often be the goal of the leader to find these employees. Once you have found your highly competent individuals, you can then begin mentoring them into more advanced roles within your organisation.

3. Introducing the task to the employee

When an employee has a task delegated to them, it’s easy for the task to be seen as ‘more work.’ Framing the delegation appropriately can be the difference between an excited employee and a hesitant one.

A delegated task is not a punishment; it is an opportunity for growth and development. If the employee does well at the task, they should be able to grow with the company and eventually enhance their own responsibilities. This is something that is very important to modern employees, who are found to have an eye for consistent career advancement.

Employees should be made aware of the task itself and why you chose them for the task — this is in addition to the skills and experience that make them an ideal candidate. Through this, the employee will be aware that you are looking at their performance and paying attention to their own career goals. They will have more motivation to not only complete the task in a timely fashion but also to do their best at it.

If the task relates to a vendor, customer, or other individual, introductions should be made at this time so that the delegation will flow smoothly.

4. Provide instructions

It’s easy to become an indispensable resource over time simply because others would not know exactly what you did or how it was done. The difference between a successful delegation and a failed delegation often comes down to documentation.

It can be easy to become frustrated about things that you believe ‘anyone should know’, and it can be easy for an employee to become frustrated that they are expected to ‘read your mind’. Giving clear instructions from the outset bypasses these potential issues.

More importantly, documentation is an investment; it can be used when these tasks are delegated in the future and ensures that you are not burdened by ‘hit by a truck’ scenarios.

In addition to providing clear instructions, it may be necessary to complete the job with an employee a few times. When the task is finally handed over, the employee must be clear regarding the desired results of the task and when it needs to be completed by.

Not only will this take a burden off you as the leader, it will also empower your employees to take ownership and initiative. This is further discussed in “How to create a culture of accountability“ by the established business leader and HR professional Trudy MacDonald.

Delegation is a skill, and it’s a skill that will serve a leader for some time to come. The best leaders are the ones that are most effective at delegating; they trust their employees can handle the day-to-day operations fully while they’re focusing on the bigger picture.

You can master your delegation skills through practice, experience, and mentorship. TEC gives you access to experienced, successful leaders, with which you can discuss the art of delegation and the process of integrating delegation effectively into your business culture. Contact TEC today to find out more.

How to manage your star employees

Employees are what drives a business — and that’s why businesses are always competing for the best talent.

Industry professionals have estimated that up to 90% of an enterprise’s value is driven by its intellectual capital, but you don’t need to rely upon such abstract estimates. It’s already known that the average employee costs six to nine months of their salary to replace.

With all this in mind, it becomes necessary for CEOs and managers to focus on both acquiring and supporting their best employees. Unfortunately, model employees tend to disappear beneath the problem employees, making them feel unwanted and undervalued.

It’s a CEO’s job to ensure that all employees feel satisfied and recognised — especially the ones that are doing the most for the business.

Foster your team relationships

The Pareto Principle tells us that the top 20% of our employees will complete 80% of the work. By the same token, the bottom 20% of our employees will take up 80% of our time. This is what can cause a solid employee to disappear under a morass of more difficult ones. But when you manage a business, you aren’t managing just the top employees or just the bottom employees; you’re managing them all as a team. There will always be overachievers and underachievers, but you need to work with all of them effectively.

When employees work together, they are more likely to feel rewarded by a task successfully completed. Team-building exercises and corporate events can be used to further deepen and build upon these relationships, in addition to the foundation that a strong sense of company culture provides. A sense of camaraderie and team spirit is often enough to make employees feel like a valuable member, but the danger is that they may also feel as though they aren’t being rewarded for their direct and unique contributions.

Recognise and reward individual employees

Creating a company culture of recognition is important. But rewards don’t necessarily need to involve money. In fact, both public and private recognition are often rated more highly. Employees don’t just want to feel directly recognised; they also want to feel as though they have a future with the organisation and that they will continue to develop their career. What’s more, while 24% of employees found recognition from their CEO the best, 28% found recognition from their direct managers preferable.

Communicate with your employees through bi-weekly meetings

Regular one-on-one meetings, even quick stand-up meetings to check in, are a great way to tell your employees what they’re doing correctly and to get any feedback on what managers may be doing wrong. Many companies are blindsided by employees who appear to leave suddenly, when the departure really wasn’t sudden at all. The employee was simply never given the opportunity to directly address their concerns. When given a chance, most employees will be straightforward about their own goals with the organisation and what the organisation could be doing to better serve them.

Training and development opportunities

Employees today are not loyal to their companies; they are loyal to their careers. If they feel as though their careers aren’t advancing at the rate they expected, they’re more likely to jump ship. The solution is to offer a steady stream of training and development opportunities. Employees want to be able to do their jobs well; this gives your top-performing employees their time to shine.

Training and development directly benefit the organisation itself. As employees become more effective, they become more efficient at their tasks and more capable of operating autonomously. Though the company may need to invest directly in these training and development opportunities, they will ultimately achieve a substantial return on their investment.

Employees may also be given the opportunity to engage in transfer of learning, through which skills are diversified and employees are able to cross-train in different fields. Employees who are able to train in multiple fields are far more likely to be effective, as they are able to quickly adapt to the positions that the company requires. Transfer of learning is how some of the top CEOs are able to be so effective. It is also instrumental in grooming top-performing employees for management positions.

By improving your employee retention, not only can you reduce your hiring costs, but you can also boost your employee satisfaction by up to 22%. Though this isn’t an easy task, it can be achieved by building a company culture of employee recognition from the ground up. As a CEO, managing your employees is a balancing act; you need to be able to reward your outstanding performers while still managing the employees who are struggling. Mentorship and advisement can help. Through TEC, you can connect with other entrepreneurs and CEOs who are facing the same hurdles and developing their own employee management strategies. For more information, contact TEC today.

How to have difficult conversations with employees

In an interview with 200 executives, it was discovered that 53% of executives admitted to avoiding difficult conversations because they felt they didn’t have the training or the experience to handle them. Of those who avoided conversations, 97% did so because of the stress that it caused them — and 80% were concerned that the conversation would escalate into anger. The role of a CEO is no different; difficult conversations with employees are stressful. Unfortunately, they are still necessary.

Being able to tackle difficult situations in the workplace is a defining characteristic of a CEO. A true leader doesn’t just manage difficult conversations; they excel at turning difficult conversations towards a positive goal. But all of that takes experience and self-awareness. Here are some of the key factors to mastering difficult conversations with employees.

Set the right tone 

It’s important to start any conversation with a positive tone — otherwise, you can easily put your employee on the defensive. Handling a difficult conversation is very much about reducing the emotions that are in play. An emotional person will not be receptive to your feedback and your direction. There are many things that can influence the tone of a conversation:

  • Environment. Being ‘called into the office’ can be stressful in and of itself, and it’s important to understand that your employee is already going to have their guard up. Consider an alternative approach, such as walking up to your employee and asking them, ‘Would you mind having a talk with me in the conference room?’ For difficult conversations, neutral territory may be best.
  • Body language.It can be difficult to control your body language, especially if you yourself are upset or frustrated. As a CEO, your employees are going to take their cues from you; if you seem agitated and upset, they will be as well. Keep your body loose and relaxed, avoid any aggressive movements, and take some time to just breathe.
  • Mindset. What is your ultimate goal for this encounter? If it’s a combative one, then the encounter will probably be combative. Your mentality going into a difficult conversation should be to ask about the other person’s point of view and to work together to find a solution.
  • Opening. Your opening sentence should be inclusive rather than, ‘I need to talk to you about something,’ say ‘May we talk about something?

It’s important to align yourself with your employee so that you can work together during the conversation. While you may feel that the employee themselves is a roadblock or that they have caused a situation, it is still true that you and the employee are going to need to work together and resolve it. As a CEO, this bigger picture will override any smaller frustrations.

Be clear about the issue, but don’t oversimplify the problem

Effective leaders are able to convey complex topics in simple terms, but that in itself can be an art form. When describing an issue, CEOs need to achieve a balance between being concise and being clear. There can be a temptation to oversimplify an issue — either to get the conversation over with or to gloss over some of the negativity. Unfortunately, that gives the employee an incorrect perception of the issue. They may not treat it appropriately or even take it seriously. Eventually, this leads to frustration, as the leader perceives a problem that the employee still does not.

  • Don’t go into unnecessary detail. When describing an issue, discuss only the facts that are pertinent to the employee — and only give enough for the employee to both understand the issue and understand the desired outcome. The employee doesn’t need to know the intricacies of the situation. They need to know what to do to complete their work more effectively.
  • Ask questions to determine whether the employee fully understands the issue. What is clear to you may not necessarily be clear to the employee; after all, you have more data to work with regarding the situation than they do. Rather than assuming that the situation has been resolved at the end of the conversation, ask the employee questions — such as what they will do next to resolve the problem.

Communication is all about clarity, and clarity often requires brevity. Complex situations should be distilled into a few concise statements; this will ensure that the employee will understand the issue and be able to appropriately tackle it.

Prepare for the meeting, but do not rehearse

As a CEO, it’s likely that quite a lot of your life involves preparation. The more prepared you are, the better the outcome. Having difficult conversations is no different. Before you tackle a difficult conversation, you need to have as full an understanding of the situation as possible. You should understand the facts of the situation, be able to articulate why it is an issue, and have suggestions for moving forward.

But preparation is far different from rehearsal. When you’re concerned about a conversation, it would be easy to go over it many times in your head. But eventually you would end up developing a script — and scripting can be dangerous. When you operate from a script, you stop listening to the other person. You are no longer able to effectively communicate with them and answer their questions. Instead, you’ll find yourself going back to your script, again and again.

Avoiding rehearsal will make it easier for you to connect directly to your employee and to listen to them. Remember: your prior knowledge may not always be accurate, and you may not always have a full picture of the situation. Being open to your employee means that you can be open to changing your preconceptions and open to solutions that may differ from the ones that you had previously devised.

Know your objectives, stay positive and future focused

It’s easy to get derailed through the course of a conversation, especially a difficult or defensive one. This may involve becoming bogged down in arguing details rather than looking at the bigger picture. Rather than seeking to position themselves at an indefensible point (such as whether or not a project was delivered late), defensive employees may begin to argue finer points (such as who was responsible for delivering a specific part of the project late).

This can be avoided by remaining positive, staying on track, and focusing on the future. It’s always possible to argue what has happened in the past; it is less possible to argue about what needs to happen going forward. Practically speaking, the major concern is not who was guilty or culpable; it’s being assured that the situation will not occur again.

Regardless of the content of the discussion, it must always end with a clear, concise goal for the future. This is what gives your employee something to focus on moving forward.

Master the art of conversation

As a leader, you have to be able to tackle difficult conversations head-on. Developing this talent will serve you well throughout your career, and will lead to better business outcomes throughout your organisation.

It can be difficult to face frustrated or aggressive employees, especially when you are perceived as opposition rather than help. Luckily, you’re not alone. TEC’s network of experienced, knowledgeable CEOs can help give you tips that have served them well throughout their tenure, developing your social skills and building up your network. Contact TEC today to find out more.

How to manage employee retention: Lessons from Marsh & Partners

More than 75% of the CEOs of Fortune 500 companies were promoted from inside of the organisation. Whether they were promoted on the basis of a family dynasty, through merit, or a combination of both, CEOs have an average of 16 years of experience within their organisation. In fact, approximately one-third of these CEOs are ‘lifers’ — individuals who have worked from the bottom up within their company.

Regardless of industry, people are a company’s most valuable asset and investment. The best CEOs don’t just have prior experience with their companies — they continue to grow, learn, and self-analyse within them. These CEOs will be true leaders; they will be able to inspire loyalty and consistently acquire the best work from their employees.

Bronwyn Condon, managing partner of Marsh & Partners, has worked with the firm since her graduation from college. As managing partner of the accounting firm, she has focused both on developing a strong team and fostering individual relationships with her employees. By focusing on employee development, mentorship, and opportunities for growth, she has been able to build a company culture of trust and loyalty, and she has been able to deliver the best in talent to her firm’s clientele.

Analyse your turnover 

Australia has seen increasingly high staff turnover rates in the last few years. In fact, staff turnover rose 29% year-over-year in 2016 alone. Modern employees have more options, which is leading to more job-hopping and more job-hunting. Not only is high staff turnover inefficient and expensive, but it can also disrupt the continuity of service that customers have come to expect. Employers need to be able to procure and retain the top talent: otherwise they will only find themselves caught in a ceaseless treadmill of employee training.

Every time a business needs to replace an employee, it costs approximately six to nine months of that employee’s salary. A significant portion of this is wrapped up in training, during which time the new employee will need to adapt and grow into the role. But that isn’t the only cost of high turnover. Companies with high turnover rates also lose their best employees — the employees who are most likely to build value for the business.

Business leaders need to be willing to analyse their turnover rates and identify areas in which the business may not be performing to its full potential. A significant portion of employee turnover is due to management; when management styles conflict when an employee’s goals, the employee will often leave. Marsh & Partners has devoted itself to the hiring of individuals who fit into their people-centric business model. To that end, they have focused on hiring individuals who are proactive self-starters and who can align with the company’s culture.

Support each staff member

Every staff member is unique. They have their own career goals and personal desires. It isn’t only the responsibility of the employee to support the business; it is also the responsibility of the business to support the employee. Employees will leave when they feel that their career is at a standstill, when they aren’t able to devote enough time to their personal lives, or when they feel ignored or unrecognised by their management. It is your job as a leader to resolve these issues to avoid losing talents.

To that end, Bronwyn was able to create a comprehensive mentorship program at Marsh & Partners to ensure that the goals of her employees aligned with the goals of the business. By helping her employees reach their own personal goals, she ensured that they were able to dedicate enough time to producing the best.

Employees will put much more into their work when they feel valued — and building this type of relationship with an employee starts with empathy and self-analysis. Mentorship programs cut both ways, by giving newer employees access to expertise and guidance whilst ensuring that senior employees remain connected and engaged.

Find a peer network

True leadership requires constant improvement. Just as new staff members may need senior mentorship, business leaders often need expert feedback in order to continue to grow. Connecting to a peer advisory network gives a leader the opportunity to see things from a different point of view. Peer networks can offer key insights into the strategies of other industries and can offer vital third-party, neutral analysis. By being exposed to different management styles and business strategies, a leader will be able to develop beyond the confines of their own company.

Through TEC, Bronwyn was able to further her development as a leader and partner in Marsh & Partners. One-to-Ones with Bronwyn’s TEC mentor fulfilled a valuable need for her own mentorship, through which her concerns and issues could be voiced to an experienced third party. Through this partnership, Bronwyn was able to work through many solutions for her business, make better decisions and personally develop her own leadership skills. Self-analysis is incredibly important for all leaders. No one is infallible, and every leader serves as an example for their employees.

Through TEC, leaders can begin transforming themselves and, in so doing, transforming their businesses for better results. Contact TEC today to begin your own journey.

 

Are you a manager or a leader? Three essential lessons from Inspire CA

A manager is someone who does exactly that — manages. They’re the people who give employees direction when they come to work every day. They answer questions, offer guidance and provide insights to help staff achieve goals.

A leader, on the other hand, is someone different. Someone who is inspirational, passionate, innovative and empathetic. A leader is someone that encourages their staff to challenge the status quo, come up with their own solutions, problem-solve and work towards their goals.

Ben Walker is someone who knows a thing or two about just how important leadership can be. As the director of Inspire CA, Ben founded the company himself in 2013 at the young age of 22. After many years of working within the boundaries of a traditional accounting firm, Ben began looking for newer and more innovative ways in which he could serve his clients. That was how Inspire CA was born. Because Ben’s instinct to do more than just manage was and will always be a powerful one. Something that cannot be contained or restricted.

As you move throughout your own career, it’s important to come up with a definitive answer to that very question: ‘Are you a manager or are you a leader?’ If you fall into the former category and want to do whatever it takes to move into the latter, there are a few essential things to keep in mind.

Defining one’s leadership style

The most important thing to understand is that there is no ‘one size fits all’ approach to leadership. Different situations require different leadership styles, as a business is essentially a living, breathing whole that needs to be nurtured in its own unique ways. Remember that 46% of all startups fail due to general incompetence in leadership — meaning, people are trying to manage in a situation where something more is required.

There are a few different leadership styles for you to choose from depending on your needs:

• Facilitative leadership is a people-centric approach to leadership. It puts the work process and the company culture first, which is ideal for environments that are both creative and high-pressure.

• Laissez-faire leadership, on the other hand, is a more ‘hands-off’ style. It puts the members of a particular team in control of their own destiny, ideal for exceptional employees and teams that excel in self-motivation.

• Coaching leadership fosters a much more ‘give and take’ atmosphere. It puts a heavy emphasis on two-way communication, ideal for individual development long-term.

• Authoritative leadership is essentially the business version of a dictatorship. The leader is in complete control, which is great for undisciplined environments.

• Democratic leadership is all about the free exchange of ideas, perfect for a balanced working environment.

When learning how to lead Inspire CA, Ben Walker also had to learn how to think outside the box. He had to adapt his leadership style to implement new technologies to change the way the business communicated with its clients. During this process, he learned exactly how difficult leadership could be — particularly when you’re trying to control too many things. On the ‘leader vs manager’ scale, Ben started out a manager. The situation demanded that he became a leader, sooner rather than later.

Build that management team

It’s also important to understand that a leader is nothing without a strong management team by their side. In fact, according to one study, only about 2.5% of companies successfully complete 100% of their projects. The average cost overrun of all projects is about 27%. 57% of all projects that fail do so because of a substantial breakdown in communications.

What does this tell you? Simple — you could be the best leader in the world, but without the right management team at your side, you may well be finished before you ever had a chance to truly start.
Nobody can run a business single-handedly, which is why communication with your management team is so important. But this is about more than just making sure everyone is on the same page — it’s about the free exchange of ideas that lets everyone operate at their best at all times.

In those terms, The Executive Connection was instrumental in helping Ben Walker understand the importance of a team to assist the leader. Leaders may be the captains of their ships — but they’re not the ones down in the engine room stoking the fire. They not people whom they can trust to help make that happen.

All focus, all the time

When you’re starting (and eventually running) a small- to medium-sized business, every day is a new challenge. You invariably meet a lot of different obstacles that don’t just test your resolve — they also start forcing you to question whether you’re on the right path in life in the first place.

How common is this idea in terms of leadership? More common than you probably think. According to a study conducted by the Small Business Administration, about 1/3 of businesses that begin today will fail within the first two years. Of those that remain, another 50% will fail over the course of the next five. Not knowing what to focus on and when and why are major contributors to this.

Being a part of TEC helped Ben Walker not only learn how to become a better leader, but also underline the importance of focus. TEC helped Ben gain insight into not just that focus was important, but what he needed to be focusing on: namely, developing his business, his leadership skills, and his team.

Taking leadership to the next level

There is nothing wrong with being a manager. Managers are an essential part of any business. But to really take your own development to the next level — to become the best possible version of yourself you can be — you need to learn how to think, eat, sleep, and breathe like the leader you’ve always dreamed of becoming.

Leaders don’t just know how to adapt their own style to fit the needs of the situation. They know how to surround themselves with the best possible people and maintain the type of hyper vigilant focus that allows everyone to do better. They’re masters of the approach of putting the pieces in place to turn a business into the well-oiled machine it was meant to be.

If you’d like to find out more information about building leadership skills, or if you have any additional questions on related topics that you’d like to see answered, please don’t delay — contact TEC today.

4 Insights into what great CEOs do differently

When less-than-optimal leadership costs businesses as much as 7% of total sales each year — what’s the difference between a good CEO and a great CEO? A good CEO is an important part of any successful business. A great CEO, on the other hand, doesn’t just lead — they inspire and contribute to an impactful business.

Here are the four key traits in particular that separate the good CEOs from the great ones. 87% of professional leaders, who either become or aspire to one day to become a CEO, deliberately develop the following four qualities. They may seem simple, but the key lies in the consistency of application that delivers the best results time and again.

1. Great CEOs make decisions with conviction

A great CEO understands that more often than not, it’s not about making the best decision possible — it’s about being decisive with conviction. It’s less about making the perfect decision and more about making decisions when they’re needed and acting without doubt.

A common trait among CEOs with the highest IQ is that they often struggle with making fast decisions as they’re much more likely to weigh the pros and cons of every situation. This leads to indecision and ambiguity, which invariably creates a bottleneck.

Great CEOs know that the expectation of ‘perfect information’ is an unrealistic one on the best of days; you need to make decisions quickly with conviction. If any signs of doubt are exhibited, employees will quickly start to lose faith in their leaders.

2. Great CEOs know how to measure impact

Regardless of the business you’re running or even in the industry you’re operating in, success more often than not comes down to your ability to deliver results. A great CEO never focuses too much on their vision without understanding the precise impact of that vision and which metrics will ultimately be used to measure its success.

To that end, it should come as no surprise that CEOs who are deftly able to engage their stakeholders’ needs are 75% more successful in their role than those who aren’t.

To be a great CEO, you need to be aware of not just the impact of what you want delivered — but also the impact you’re making when you deliver the results or engage with the people who have a stake in the game.

This idea even plays a role in how you interact with people on a daily basis. Remember that employees will always magnify your reactions. If you grimace when someone is telling you their ‘next big idea’, they might immediately think you hate it — or worse, think they’re being fired.

Along the same lines, good CEOs will allow employees to vote in the direction of the company. Great CEOs will allow them to have a true voice in the matter, albeit with the understanding that the consensus-driven decision is not necessarily the one that will be made. Knowing how to measure impact — in this case, the difference between listening to the input of employees because you’re afraid of being disliked versus making an unpopular move because you know it’s the best one — is something you’ll need to focus on if you want to move up to ‘great CEO’ status.

3. Great CEOs adapt proactively

Everything about your business is changing regularly — from the marketplace you’re trying to serve to your industry to your organisation at a basic level. CEOs who are able to adapt to changing times and evolving needs are roughly 6.7 times more likely to succeed than those who do not.

For a great CEO, adapting proactively is less about being able to successfully handle today’s challenges and more about dividing your attention between short and long-term thinking. Devoting as much of your time as possible to thinking about the long-term direction of things makes it easier for you to not only recognise signs of change and mitigate risks ahead of time, but it also creates a business that operates with a growth mindset as well.

4. Great CEOs deliver reliably

Good CEOs make promises. Great CEOs keep them.

To be a great CEO, you need to demonstrate results. This means that you need to show you cannot only recognise what needs to be done to move a business forward, but actually do it. It should come as no surprise that CEO candidates who are twice as likely to deliver results than average are much more likely to actually be picked for that role.

To get better at this, learn how to set realistic expectations upfront. Focus on establishing business management systems including dashboards, accountability, performance monitoring, and more. All of this allows you to build a much more stable bridge between where you are today and what you promised you would do tomorrow.

One of the major reasons that CEOs sometimes don’t deliver expected results is because they don’t have the tools in place when they need them the most. In fact, 60% of CEOs make the rookie mistake of not having the right team in place quickly enough. Words are cheap — actions are more expensive. From the business management solutions you employ to the teams you surround yourself with, all of this helps you deliver what you need, when you need it, no exceptions.

From good to great

The fact of the matter is that the gap between a good CEO and a great one is often created less as a result of any one major move and more because of a series of small ones. Knowing how to make decisions with conviction, knowing how to measure the impact of actions both large and small, being able to adapt to a naturally fluid environment, and knowing how to deliver what you promised are all major leadership traits that you should be focused on.

If you’d like to find out more information about the major qualities of a great CEO, or if you’d like to learn more about similar leadership insight topics, please don’t hesitate to contact us today. 

 

5 Leadership styles and when to apply them

An effective leader motivates and guides employees, targeting their strengths and weaknesses so that both the employees and the organisation can succeed. The relationship between leadership styles and employees, therefore, plays a crucial role. Despite of this, surveys have shown that 75% of employees voluntarily leaving their positions leave because of their bosses, leading directly to issues of talent retention and churn.

Surprisingly, 36% of organisations don’t have a formal leadership development strategy — considering that to be a good and effective leader, one needs to be highly adaptable. Depending on a project, the environment, and even the psychology of the employee involved, leaders may find themselves switching between leadership styles quite frequently.

It all starts with a solid knowledge of the five major leadership styles.

Facilitative leadership

Facilitative leadership is a people-centric leadership style that puts the work process and company culture first, ideal for creative and high-pressure environments.

A facilitative leader works to build trusting relationships between leaders and employees in order to achieve their mutual goals. Facilitative leaders learn as much as they can about their employees and how they work, give clear expectations of their employees, and encourage them as they achieve these goals. Facilitative leaders are positive and motivational.

Ideally, employees should feel that they are valued and that their work matters; they should feel as though they are being listened to and that they know what to expect.

Facilitative leadership is often used best within creative and skill-based industries, in which a more rigorous or structured type of leadership style could lead to roadblocks and stress. Facilitative leadership puts people first and thus ties very strongly into people-first company cultures. It is best used when employees are already invested in producing the best work that they can for the organisation.
 

Laissez-faire leadership

Laissez-faire leadership is a hands-off leadership style that puts all members of the team in control, ideal for exceptional employees and self-motivated teams.

In a laissez-faire leadership, a leader provides very little guidance to their team. Instead, they trust that their team understands their own roles and will be able to perform their best. Statistically, laissez-faire leadership is often considered to be the least productive type of leadership — but this is usually when it is improperly applied. When applied correctly, laissez-faire leadership actually reduces much of the red tape surrounding organisational administration and can produce very rapid and effective results.

A tightly connected team full of self-starters may thrive under laissez-faire leadership. All individuals need to be personally motivated and highly competent. Laissez-faire leadership is best used when each individual member has an expertise and skill set that the leader themselves may not necessarily grasp. In this situation, over-managing employees could become more disruptive than helpful.

 

Coaching leadership

Coaching leadership creates a give-and-take atmosphere that puts a heavy emphasis on two-way communication, ideal for developing long-term and stable communication.

Sports teams are an excellent example of how a well-balanced coaching leadership style is put into effect. In a coaching leadership, the leader sets out clear goals and responsibilities for their team. However, the leader also listens to their team and provides constant communication. Leaders will provide feedback regarding an employee’s role and accomplishments and will listen to any concerns that employee has. This fosters a very strong employee-and-leader relationship, which is more likely to yield stable and consistent results.

When competent and capable employees don’t seem to be giving their job the attention that’s needed, a coaching leadership can be used to delve into their psychology and to inspire and motivate. Coaching leaderships drill down to any potential issues within a team and inspire the team to work together. They are best used to develop long-term team structures and goals.

 

Authoritative leadership

Authoritative leadership is essentially a dictatorship that puts the leader in complete control, ideal for undisciplined or high-stakes environments.

Authoritative leadership is one of the least preferred by employees, but nevertheless, it can become necessary in a variety of situations. In authoritative leadership, a leader makes all the decisions and rarely considers the opinions of team members. Team members may rebel against this type of leadership style unless they feel that the consequences of rebellion outweigh the benefits. All the team’s goals, initiatives, and strategies will be developed solely by the team leader, with very little input. The psychology of authoritative leadership can be a bit rough, with employees feeling devalued and ignored.

Though it may sound like a bleak atmosphere, authoritative leadership can become necessary when there has been a complete breakdown in structure. During times of transition or crisis, an authoritative leadership style may be necessary to make rapid-fire decisions and to keep a team together. Authoritative leadership is generally not intended for long-term use but instead as a short-term tool.

 

Democratic leadership

Democratic leadership is a type of leadership that puts an emphasis on the free exchange of ideas, ideal for most balanced working environments.

This is one of the most versatile types of leadership style. In a democratic leadership, team members are consulted regarding major decisions and projects. Communication consistently occurs between leaders and team members, and input from every individual is considered valuable.

Many teams have a tendency to default to some form of democratic leadership policy. However, it isn’t without its flaws: a democratic leadership process does take longer, and projects and teams can be stalled by a weak link.

Democratic leadership works best in strong, homogenous teams of accomplished and competent individuals. This is a solid ‘default’ leadership style, though it is particularly useful when time is not at a premium. It may need to be abandoned in times of crisis or looming deadlines.

 

All about the balance

There is no one leadership style that is going to carry you through all the teams, projects, and environments that you will encounter. Instead, the ability to effortlessly switch between these leadership styles as necessary is what makes for an effective leader. A business with satisfied and motivated employees will be able to retain the best talent and experience limited churn.

But merely knowing about these leadership styles is not enough: you also need to be trained in them. Contact TEC today to get started.