The Importance of Leadership in Development of a Business

THE IMPORTANCE OF LEADERSHIP IN DEVELOPMENT OF A BUSINESS

Thao Hoang Bich Bui

City University of Seattle

The Importance of Leadership on Development of a Business

The Importance of Leadership in Development of a Business

Leadership may be defined as a position of power held by an individual, which provides him

with an opportunity to mobilize and direct the collective efforts towards certain goals. Today, the

goal of most businesses is to focus on sustainable development orientations, especially in the

context of many uncertainties, such as COVID-19. To achieve this, the role of leaders is crucial

since they are in charge of developing talent, creating greater achievements, and pushing

innovation through an organization.

Firstly, leaders play an important role in the sustainable development of a company by

developing talent. They operate the company’s culture, and an effective culture creates an

environment for employees to grow, empower, and seize opportunities to express themselves. At

the same time, the leader is also a communicator for his employees (Gordon, 2017). Being a

good leader, or more specifically, a good one-on-one communicator will help strengthen the

bond between leaders and employees. This helps employees feel valued and more motivated to

develop themselves and contribute to the overall effectiveness of the company. When a company

has always built a good culture for itself, its talent pool will not be limited. Human capital is

always one of the most important resources of every company, which will ensure that the

company always has people with outstanding capabilities, suitable to take on difficult jobs and

maintain creativity, ensuring the sustainable development of the organization.

Secondly, leaders contribute to the sustainable development of a company by promoting higher

efficiency at work. Leaders have an important responsibility for this because they will be the

ones who set priorities, manage time to perform tasks, delegate to employees, and review daily

work to improve performance (Joseph, 2019). The aim of setting priorities is to distinguish

between what is important and what is urgent and not to let the employees be overloaded and
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lose control. That is the basis for improving work productivity. Managing time to perform tasks

is to record what the employees must do and make a time commitment to the things that must be

achieved; then, delegating to employees and reviewing daily work with the purpose of

identifying tasks and selecting the appropriate resource to solve them. The day-by-day

progression of the company's business performance ensures that a company can maintain its

position in the market. And when leaders consistently create such a disciplined and productive

work environment, it helps their organization stay competitive with its competitors. Finally,

towards sustainable development, they will never allow their organization to stop.

Lastly, leaders also contribute to the success of a company by promoting innovation. According

to Gordon (2017), good leaders or “positive leaders create and share a positive vision”. That

vision can be understood as "where others see what is impossible, they see what is possible"

(p.62). In every business, leaders need to create a bubble of optimism and transfer them to the

team so that failure is accepted as a part of innovation and growth. Besides, increasing dialogue

reduces the gap between leaders and employees, there will be more information to be exchanged

(Kelly, 2017), which also encourages innovation. From that innovation, new thinking on how

companies can deliver core business strategies while producing enhanced business benefits, and

more foundations for sustainable growth will be established.

For those reasons presented above, it is so true to state that leaders are responsible for developing

talent, promoting higher efficiencies at work, and promoting innovation within an organization.

That is proven through the fact that leaders play an important role in building corporate culture,

thereby creating a favorable environment for employees to be challenged, expressing innovative

ideas, as well as setting KPIs, and managing the process of achieving them to ensure business

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performance. As a result, leadership is a crucial factor that fosters the long-term and sustainable

development of the enterprise.

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References

Gordon, J. (2017). The Power of Positive Leadership: How and Why Positive Leaders Transform

Teams and Organizations and Change the World (pp. 62-63). John Wiley & Sons, Inc.

Joseph, M. (2019). Increasing Efficiency in Leadership. Teach Better. Retrieved 20 July 2022,

from https://www.teachbetter.com/blog/increasing-efficiency-in-leadership/.

Kelly, R. (2017). Creating a Culture of Innovation Starts With the Leader. Entrepreneur.

Retrieved 20 July 2022, from https://www.entrepreneur.com/article/280870.