What is Effective Leadership?

Effective leadership can make or break your business. Are you an effective leader?

A few months ago, I wrote a post entitled “Are You an Effective Leader and Why You Should Care” Since that post, one of my Mastermind groups discussed each of the 23 aspects of leadership outlined in this post. This discussion revealed some very valuable nuggets of information! I took a lot of notes during these discussions and the key points I captured are shown below:

Mastermind Discussion on the 23 Elements of Leadership

Linchpin

Are You Indispensable?

The book review for this week is Linchpin by Seth Godin.

Godin is simply an outstanding author and this book proves it once again! Linchpin describes how each of us needs to approach how we deliver our unique genius to the marketplace. Linchpins are the mapmakers of society. They are the people who drive our world forward through the application of their skillsets and talents. Each of us needs to strive towards this mindset and build our organizations to create and develop Linchpins.

My takeaway from this book is that everyone can be a linchpin. Godin suggests that we need to do the following seven things in our quest to become an indispensable linchpin:

Ask “Who” Not “How”

In a recent Dan Sullivan podcast, Sullivan stated that many small entrepreneurs stay small because they take on every task for every aspect of their business. Essentially, they get stuck in the “How?” mindset. They have an excellent idea and then get bogged down with the implementation details.

Conversely, small entrepreneurs that break this mold to grow into successful large companies don’t get bogged down like this because they have a “Who?” mindset. When they have an excellent idea, they ask themselves, “Who would be the best person to implement this great idea?” They spend their time finding the best person to execute on the idea and they then enable that person to be successful!

Without a doubt there are times when every entrepreneur needs to get their hands dirty and do the work needed to become or to stay viable. Bill Gates coded, Steve Jobs designed and Michael Dell assembled. However, there came a point in time where these guys realized that to remain viable they would need to find people to take on these roles so they could step up and lead their organizations.

Essentially, they were able to make the change from a How person to a Who person.

So, how do you become a “Who” leader?

Growth is Not Easy But It is the Only Option

In order to grow in your ability as a business leader you must change. This is basically an empirical law . . . there are no exceptions to this!

 

GROWTH = CHANGE

Before you change, it is wise to understand that any change is accompanied with a certain level of disruption. This is also an empirical law. The amount of change you go through is directly proportional to the level of disruption you experience.

CHANGE ∝ DISRUPTION

And, with any disruption there is always discomfort! In fact, the level of disruption is proportional to the level of discomfort that you will feel.

DISRUPTION ∝ DISCOMFORT

How to Increase Profit and Wages Simultaneously

All business leaders today are looking for ways to decrease costs, while increasing productivity and profit. Many businesses today are taking a one time profitability boost by reducing costs at the expense of the employees.

Cost cutting always seems to be the first action taken by companies as they try to increase their profit. I understand that some businesses are in trouble and this may be their only recourse. However, many businesses rely on this cost lever rather than looking at all the other options available to increase profitability.

Henry Ford

Most people know that Henry Ford was quite famous for piloting the assembly line factory and for increasing the productivity of his factories. But did you know that he was able to simultaneously increase profits while decreasing production costs, increasing productivity, and increasing employee’s wages?