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The irony of leadership in times of uncertainty is that it is par for the course when leading any group of people or an organisation. The speed of technology, evolving human behaviour and the global village that we no live among, to be competitive and relevant is key.

On this podcast, we dig into what it means to be a leader, how a robust and human approach to all of your decisions will create an enduring brand that people want to be part of beyond the role itself.

We cover a bit of everything:

1. Vulnerability
2. Trusting your staff
3. Take advantage of the opportunity not the person
4. Using your values and mission to align and growth
5. What does good look like
6. Creating new opportunity
7. Strategy planning

If you are a leader looking to evolve and grow right now it’s the best time to lean in.

A company’s success is often attributed to the effectiveness of its leaders. It’s because of this that just as much, if not more importance, should be placed on an organization’s assessment of its leaders as they would with all other team members.

Measuring leadership effectiveness in an organization is generally pretty straight forward. It can be measured by the decisions made, how plans are implemented, the culture of the team, and the result of the leader’s initiatives.

It sounds simple enough, but in reality is not so simple to measure. There are a number of frameworks and tools on the market to help evaluate leadership effectiveness, but the outputs are only as good as the inputs, so a proper level of objectivity, rationality, and insight must be applied.

So what exactly is leadership effectiveness, and how can we determine whether a leader is effective or not?

Research and common sense would suggest that when leaders can influence their teams to perform their respective tasks which result in positive business outcomes, leadership effectiveness has been achieved.

15 insights in assessing leadership effectiveness in today’s businesses

1. Members’ evaluation of their leader’s effectiveness
2. Higher job satisfaction of the members
3. Ability to motivate their members for optimum performance
4. Higher commitment and performance from the team
5. Raised financial performance and success of group goals
6. Willingness of team members to accept additional roles
7. Better decision making and members’ heightened commitment to decisions
8. Improved team performance
9. Capacity to promote growth and moral values
10. Grown company profitability
11. Attained strategic objectives
12. Positive workforce attitudes
13. Empowered and confident team members
14. Delivered customer satisfaction
15. Improved team metrics

1. Members’ evaluation of their leader’s effectiveness

Team members can assess their leaders on the following aspects:

• Through their opinions and willingness to work for a leader These are ratings given by members that show their willingness to work with a high level of performance, assuring that they enjoy working with the leader, admiring the leadership qualities, finding their job styles matching, and having similar principles.
• A leader’s overall effectiveness compared to other leaders the member has worked for
• Comparison of the perceived leadership effectiveness from a leader and a member’s point-of-view These evaluations consider the following metrics: satisfaction with leadership quality, general assessment of leader effectiveness, rating of the current leader and the ideal leader, aiming to be like the leader, and whether the leader helped the business prosper.

2. Higher job satisfaction of the members

Job satisfaction is a vital ingredient in maintaining productivity and efficiency in a company. We are all aware that satisfied team members become more engaged to perform their work well and drive productivity.

Members’ job satisfaction is also crucial to deliver customer satisfaction as John Smith, a former CEO of Marriott Corporation, described,

“You can’t have happy customers served by unhappy employees.”

At times, team members’ dissatisfaction is a more distinct way of gauging a leader’s effectiveness. Some indicators of dissatisfaction include their attitudes and perceptions based on their leaders’: level in meeting their expectations and needs, ability in improving their skills, and contribution to their mental growth.

3. Ability to motivate their members for optimum performance

When you can influence and encourage your members to perform at their best, which results in increased performance, you are said to be an effective leader. From “This is already good,” the mindset of your team members is switched to, “How can we make it better?”

4. Higher commitment and performance from the team

Several studies emphasize how successful companies bank on the commitment of their team members to perform at their best as they fulfill their roles.

Higher commitment is experienced by team members when they don’t just pledge to complete their tasks but are united in reaching the bigger goal of the organization.

Related: How these 7 Remarkable Leadership Skills Can Grow your Business

5. Raised financial performance and success of group goals

A proven indicator of leadership effectiveness is when your team’s talents propel the company to reach its goals. The numbers will show it through increased sales, market share, and quick return on investment.

6. Willingness of team members to accept additional roles

Although each team member tends to agree to perform defined roles, it does not limit the individual to these predetermined roles. Instead, members are open to accepting additional tasks as they see them as their means of enhancing their knowledge and skills.

Though only a few team members can be proactive in checking in with their leaders about what more should be done, it becomes a valid indicator of leadership effectiveness.

7. Better decision making and members’ heightened commitment to decisions

Effective leaders are great decision-makers. They can also drive their team members to support and commit to their decisions through good communication.

8. Improved team performance

You are perceived effective when your team shows improvements on clear performance outcomes, like a division or unit reaching its goals or when your members exhibit organizational citizenship behavior.

Organizational citizenship behavior occurs when your team members voluntarily commit to their company to perform other duties that are not part of their contract.

9. Capacity to promote growth and moral values

Establishing a workplace that promotes growth and moral values is a unique quality of effective leaders. By creating a growth environment through knowledge sharing, training and development initiatives, and opening doors of opportunities to your team members, you open them to endless possibilities – that makes you an effective leader. Through knowledge sharing, you can provide solutions by innovating your systems and/or creating new products or services.

As for leaders who exhibit moral values, they attract and retain team members who share the same principles.

10. Grown company profitability

Profitability is a simple yet direct way of measuring leadership effectiveness. If you can fast-track and sustain your growth by getting more clients or offering more services that answer the market needs, increased profitability will be seen.

What is essential is to build your reputation, brand, and offerings for profitability to follow.

11. Attained strategic objectives

Another straightforward way to assess a leader’s effectiveness is through the met goals and objectives. Review your metrics in your strategic plans to determine whether you were able to achieve the return on investment or hit your productivity targets.

12. Positive workforce attitudes

When your team is excited to come to work or participate in weekly meetings, it’s a sign that you are an effective leader. More than the financial metrics, members who are engaged and willing to give their all on projects, events, or any initiative, show that you have succeeded as a leader.

13. Empowered and confident team members

Effective leaders contribute to the growth of their team members by putting them in roles that can showcase their strengths and improve their skills. Letting them shine and acting as their support displays your trust in them and gives them a feeling of empowerment.

14. Delivered customer satisfaction

Whether you are offering new products or delivering after-sales service, customers will remember how you helped them or solved their concerns. When you focus on customer satisfaction, you won’t have to worry much about your profitability.

15. Improved team metrics

Through several team metrics like increased employee engagement, reduced members’ turnover, or boosted internal promotions, you will identify whether or not you’ve been effective as a leader. So long as team members feel they are valued, they likely won’t quit their positions so you can retain and develop them to be your company’s future leaders.

References:

Belias, D. & Koustelios, A. (2014, March). Leadership and Job Satisfaction – A Review (10). 1857-7881. Retrieved from https://www.researchgate.net/publication/261570285_LEADERSHIP_AND_JOB_SATISFACTION_-_A_REVIEW

Cakir, F., & Adiguzel, Z. (2020, March 31). Analysis of Leader Effectiveness in Organization and Knowledge Sharing Behavior on Employees in Organization, 10 (1). https://doi.org/10.1177%2F2158244020914634

Forbes Business Council. (2021, May 28). How to Measure Leadership Effectiveness: 14 Essential Tips. Forbes, Inc. Retrieved from https://www.forbes.com/sites/forbesbusinesscouncil/2021/05/28/how-to-measure-leadership-effectiveness-14-essential-tips/?sh=5abc10c92823

Gray, Rob. (2018, January 25). Measuring leadership effectiveness. HR magazine. Retrieved from https://www.hrmagazine.co.uk/content/features/measuring-leadership-effectiveness

Madanchian, M., Hussein, N., Noordin, F., & Taherdoost, H. (2017). Leadership Effectiveness Measurement and Its Effect on Organization Outcomes. Procedia Engineering (181). 1043-1048. Science Direct. Retrieved from https://www.sciencedirect.com/science/article/pii/S1877705817310950/pdf?md5=6734d539d7257eae7b2036bb554f7298&pid=1-s2.0-S1877705817310950-main.pdf

Servant leadership is a leadership style in which the goal of the leader is to serve those around them. It is different from the traditional leadership style where the leader’s main focus is profits and growth.

With differing needs in the workplace, a “one leader to rule all’ does not meet the need of the future workforce who are looking to be “part” of something not just a cog in a wheel.

Traditional leadership depends on the use of perceived power and hierarchy, whereas servant leadership puts your focus firmly on what’s best for the people that work alongside you.

No longer should we be using terms like human resources or human capital. But see those that we serve as part of the journey towards purposeful outcomes and success. If we create people-driven businesses through servant leadership by very definition, we create companies that serve and generate better outcomes.

The accountants no longer define success through numbers, but our people through continuous growth and development, nurturing, and open communication will actually drive successful businesses.

As a leader it requires a shift in mindset and to serve first, you benefit as well as your employees in that your employees experience endless personal growth, while the business naturally grows and evolves through increased engagement and a sense of purpose.

Servant leadership is driven by a key set of skills and mindset adopted by those who lead. It isn’t a case of just being a bit nicer and saying yes to every demand, but an awareness that you are dealing with people and their most basic needs allows you to understand where they stand and where their passions lie.

As a leader, it’s dangerous to expect your team to care as much as you do about your business, but that doesn’t mean they can’t care enough to make a huge difference. Your job as a leader is to bring the best out of people and put them in a position to succeed in both their work and personal lives.

There are a few things that you need to have in your leadership toolbox to develop your servant leadership style:

1. Look at your motivators – are you passionate about developing talent?
2. Are you self-aware and do you expect the standards of yourself as the same as those that work alongside you?
3. Be humble. You are not supposed to know everything.
4. Do what you say you are going to do.
5. Focus on results but share why you are trying to achieve them.
6. Always be looking ahead for bumps in the road to protect your team.
7. Listen to hear not to respond.
8. Ask for help and praise those who know better.
9. Coach all day every day but set expectations.
10. Be vulnerable but not weak. Show you are a person too but also lead with conviction to provide confidence.

Being a servant leader does not mean you are a slave to your team’s needs; in fact, it’s the total opposite. It is being aware of them and guiding them, which creates growth and positive outcomes for all parties.

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