We work mainly with business owners and managers in the SME sector and what we find in general is that they have a clear idea of what they want to achieve with their business, but what they don’t have are good methodologies in terms of implementing their vision for the business. One of the programmes we deliver is the futureSME and the management team programme. These programmes try to help business owners and senior management teams to deliver true leadership in the organisation. Any discussion about leadership effectiveness can be quite difficult to pin down. It’s about behaviour which is very hard to measure and values that can be difficult to articulate. At LEAP we have our own template that we go through with business owners. Here are 4 ways to increase leadership effectiveness.
1. Clarify the vision
The first thing we look at is the vision. We clarify what the leader’s vision for the company is by asking the question, ‘where do the leaders see the company going in the next two to three years?’ It’s about articulating that vision and finding a way to communicate that vision to the rest of the organisation.
2. Decide the purpose of the organisation
Once the vision has been established and clarified, we look at the core purpose of the organisation; what does the organisation represent and what do they want to achieve? I use the example of Ryanair distilling their message or purpose down to just two words – no frills. We try to help organisations to simplify their message and what it is they represent, so people in the organisation are clear about what behaviours and attitudes and standards are being set. That’s not just for the benefit of the staff but also to establish that sense of purpose for customers and suppliers as well.
3. Establish goals
Once we establish that purpose we look at the three or four primary goals that the organisation wants to achieve. Then we find a mechanism to articulate those goals particularly through visual management systems. One of the visual tools we use are Gantt Charts featuring various lines of action, where we assign work to people, in other words who is going to do what and when. It’s essentially a visual monitoring system , like a traffic light system to show what’s working and what isn’t. Green means the action is on target, orange means the action has been delayed or is still in progress and red is for tasks that have missed their completion date.
4. Measure performance
Another thing we try to establish is what the correct key performance indicators (KPI) are in the business. KPIs show the activities of team members and the level of progress in different areas within the business. One of the things I find working with companies is that they either have no KPIs at all, or they are measuring some KPIs but they are the wrong ones. The KPIs they are measuring are driving the wrong behaviours and activities within the organisation. That can greatly hinder a company’s performance and needs to be corrected as a matter of urgency.
So it’s very important that everything is aligned from the leader’s vision to the purpose of the company through to the goals, lines of action and KPIs. You can talk about leadership styles and the different types of leaders, but if you follow this clear methodology you can’t go far wrong.
John Raftery is Senior Partner and Executive Coach at LEAP