Global competition is a major driver for change in many countries. It has had a profound impact on the way the whole world does business.

This has become increasingly evident with the Covid-19 pandemic.

In the past, most business owner/operator markets tended to be local or nationally based, supplying other smaller or larger businesses.

Today, improved technology and communication has dramatically impacted us all by enabling competitors from around the world to compete in our traditional markets.

The changing external business context means that business leadership is important for business survival and growth.

As a leader you should be constantly scanning the environment to see how improved technology; innovations and communication could positively or adversely impact the business.

For many years, ‘management’ qualifications have focused on the planning, organizing and controlling aspects of the business.

However, recent studies now emphasize the importance of leadership in setting the culture within business and unlocking the full potential of people.

The term ‘leadership’ is often reserved for large industry CEOs and political figures. Yet if you look at countries across the globe, small to medium enterprises are the backbone of industry and have adapted and thrived in this constantly changing business world. They haven't got to where they are today without some strong leadership practices in place!

Coaching and working in many organisations, I have witnessed the benefits of effective leadership and that of leadership development. 

Our leadership practices and capability impact our key business metrics!  

Development Dimensions International (DDI) did an analysis of longitudinal data from a leadership development program involving more than 18,000 leaders and 12,000 managers, peers, and direct reports of leaders.

This study showed that leadership development had a substantial increase on sales; customer satisfaction; productivity, operational efficiency, and work quality.

In addition, the DDI study showed that leadership development decreased absenteeism, staff turnover, rework, overtime, accidents, and grievances.

Business leaders that employ less than 300 hundred staff comprise over 90% of businesses in most countries. This is where we could enhance leadership practices – at the entrepreneurial level.

Every business owner should also be a business leader. Any improvement that is made at the micro-level of our economies will have a multiplier effect at the macro-level.

Individually and collectively, we can make a difference to the lives of others and minimize our negative impact on the environment.

We can be more intentional about the legacy we want to leave through our leadership and business practices.

I have created The Leadership Practices Framework (LPF) to support business leaders in small/medium enterprises.  It consists of 5 high level domains with 15 associated leadership practices, and 45 key actions.

The application of the Leadership Practices Framework in the business will assist with:

• Providing clarity regarding the purpose and direction of the business
• Building relationships that are collaborative
• Supporting the capability development of individuals and teams
• Encouraging a constructive culture
• Enhancing your personal impact
• Fostering business excellence.

Actions to consider:

• Distinguish between management and leadership
• Use varying leadership approaches depending on the situation
• Apply a Leadership Practices Framework in the business
• Ensure all staff understand the 5 Domains of leadership and how these  align to the business values
• Align the Leadership Practices Framework with, and into your people  systems and processes
• Role model leadership practices to encourage these behaviours in others
• Know the benefits of developing leadership capability
• Plan and deliver leadership development for yourself and your staff.

If you would like changes to happen in your business – it starts with your leadership first!

Our Small Changes, Big Impact Leaders Arena programme includes the introduction of the Leadership Practices Framework and this underpins the 7 strategies for a healthier business.