As a manager and a leader I’ve been fortunate enough to be on the front seat and see how strong leadership can put a big impact on the success of a business. My last post was woven around the early signs that reflect a business is being governed by poor leadership. Or in better words — the scenarios which might require you to get a stronger leader for your team.
Continuing from where we left in the last article, I am going to talk about the losses a business has to suffer because of the problem mentioned in my last article — Poor Leadership!
The first thought that instantly comes to mind when someone talk about loss in business is quite obvious — loss of revenues. But when we talk about poor leadership, sometimes the losses are lot more than just monetary.
Here is a look at those losses that a business has to go through when the teams are being governed by poor or weak leaders –
Loss of opportunities
‘Opportunities are never lost, someone will take the ones you miss.’
Grabbing opportunities is the mantra for a thriving business. You never know when successful completion of a single project can open the haven of opportunities for the team and business. A strong leader always knows this fact. And this is the reason he is keen on improvising and innovating with every passing day. Inspiring the team to leave no stone unturned in delivering projects successfully is something that comes naturally to them.
A weak leader, on the other hand, has his eyes set only on the present. Innovation and improvisation are foreign terms for him. They are never keen to take the road less travelled, this is why they miss out opportunities, which might have the potential to turn the business on its head and take it to the next level.
Loss of productivity
Here are some of the facts about poor leadership costing a loss in productivity to American businesses that I found out in an article published at Harvard Business Review.
According to one of the workplace reports by Gallup, 50% of the working professionals in US merely put their time in at office, 20% often represent their discontent via missings their days on job, driving customers away or influencing the co-workers in a negative way. Only the remaining 30% are committed towards their work. What’s the reason behind it — POOR LEADERSHIP!
In fact, while researching for their book Leading People, the authors Rosen and Brown came up with the findings that the current state of poor leadership is costing more than half of their human potential to the American companies.
The numbers are self explanatory as to how much does poor leadership cost a business in terms of productivity.
Loss of human resources
Loss of human resources does not only mean the employees leaving the organization. Well, that’s the ultimate loss, but a BIG loss is when the employees are not being used as per their full potential. Think of it like a writer being asked to work as an HR. How can you expect the results to meet the expectations in such a scenario?
Poor resource management is one of the key tell tales of weak leadership, that can bring a downfall for the company. No matter how experienced and expert your resources are, if they are not utilized rightfully they are not going to benefit the business. This will ultimately lead to loss of resources, more so it will bring the loss of your company.
Successful leadership is all about having the right people, with the right abilities, in the right place, at the right time!
Loss of revenues
According to the same report by Gallup that has mentioned in the second point it has been found that poor leadership alone costs american companies a loss of more than half a trillion dollar each year.
According to the Cost of Poor Leadership Calculator created by DDI, a leading firm that conducts corporate researches, it was found out that poor leadership costs around $126,00,000 over just one year owing to loss of productivity, and employee turnover issues.
Those numbers are HUGE! Just imagine how much profitable businesses could be, only if they had a better leader.
There it goes — some eye opening facts that might inspire you to think whether your company has the kind of leadership it needs to get to that next level? Or are you making the same mistake that majority of the businesses are making?
Think about it!
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Vartika Kashyap currently runs the marketing team at ProofHub — a project management software for teams of all sizes. She is a seasoned marketing professional who is an expert in digital marketing and entrepreneurship. She’s been featured among LinkedIn’s Top Voices for the year 2016. Connect with Vartika on LinkedIn, Medium and Twitter.
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Originally published at LinkedIn.com