4 Leadership is the art of motivating a group of people to act toward achieving a common goal. In a business setting, this can mean directing workers and colleagues with a strategy to meet the company's needs. Leadership is the art of motivating a group of people to act toward achieving a common objective. + Organizations refer to upper-level personnel in their management structures as leadership. + To be an effective leader in business, you must possess traits that extend beyond management duties. Leadership skills can be learned and leaders may evolve. + A person may be referred to interchangeably as both a “leader” and a "manager," though the two terms are not necessarily synonymous. How Does Leadership Work? Leadership captures the essentials of being able and prepared to inspire others. Effective leadership is based upon ideas—both original and borrowed—that are communicated to others in a way that engages them enough to act as the leader wants them to act. A leader inspires others to act while simultaneously directing the way that they act. They must be personable enough for others to follow their lead, and they must have the critical thinking skills to know the best way to use the resources at an organization's disposal. In business, leadership is linked to performance, and any leadership definition has to take that into account. Therefore, while leadership isn't intrinsically linked to profit, those who are viewed as effective leaders in corporate contexts are the ones who increase their company's bottom line.! Note If an individual in a leadership role does not meet profit expectations set by boards, higher management, or shareholders, they may be terminated. While there are people who seem to be naturally endowed with more leadership abilities than others, anyone can learn to become a leader by improving particular skills. History is full of people who, while having no previous leadership experience, have stepped to the fore in crises and persuaded others to follow their suggested course of action. They possessed traits and qualities that helped them to step into roles of leadership.Leadership vs. Management Leadership vs. Management Leadership Management May or may not be a manager May or may not be a leader Must inspire followers May or may not inspire those under them Emphasizes innovation Emphasizes rationality and control May be unconcerned with preservingSecks to work within and preserve existing structures existing corporate structures Typically operates with relativeTypically a link in the corporate chain of independence command May be less concerned withMay be more concerned with interpersonal issues interpersonal issues The terms leadership and management tend to be used interchangeably, but they're not the same. Leadership requires traits that extend beyond management duties. Both leaders and managers have to manage the resources at their disposal, but true leadership requires more. For example, managers may or may not be described as inspiring by the people working under them, but a leader must inspire those who follow them. Another difference between leaders and managers is that leaders emphasize innovation above all else. Whereas a manager seeks to inspire their team to meet goals while following company rules, a leader may be more concerned with setting and achieving lofty goals—even at the expense of existing corporate structures. When a worker has a radical new idea for how to tackle an issue, a leader is likely to encourage that person to pursue the idea. Managers may be more likely to preserve existing structures because they themselves operate within that structure. They may have bosses above them, so they have less freedom to break rules in the pursuit of lofty goals. Leaders, on the other hand, often operate fairly independently. That allows them to tolerate a greater amount of chaos, so long as they believe it will be worth it in the end. However, the leader's devotion to innovation can sometimes come at a cost. Chaos and high-pressure work environments can create interpersonal issues. When such issues arise, a manager is more likely to see it as their duty to smooth over problems between employees. Leaders can sometimes be so singularly focused on achieving lofty goals that they let interpersonal issues and employee welfare fall to the wayside.Quality management standards Quality management statement template A quality policy statement is a brief document developed as part of a business’ quality management system. It declares what you consider ‘quality’ in your organization and outlines the processes you have in place to ensure that you meet the agreed standards. What is the purpose of a quality policy? Quality management policy is important for several reasons. Most importantly, it articulates: your intentions regarding quality of your products or services * your commitment to continuous improvement in quality management + responsibilities of all staff, especially those with key roles, for maintaining quality of products and services Avwritten, well-defined quality policy is also required by the ISO 9001 standard and is essential to creating an effective quality management system Sample quality policy statement Below is a template for a typical quality management policy statement which you are welcome to customise for your business. Sample company name (XYZ Limited) Quality policy statement Company XYZ Limited was established in [year] to provide [describe goods, works, services] to the [describe] industry. We are based in [city/town/region] and employ [number] people. Quality is important to our business because we value our customers. We strive to provide our customers with products and services which meet and even exceed their expectations. We are committed to continuous improvement and have established a Quality Management System which provides a framework for measuring and improving our performance. We have the following systems and procedures in place to support us in our aim of total customer satisfaction and continuous improvement throughout our business: «regular gathering and monitoring of customer feedback * acustomer complaints procedure« selection and performance monitoring of suppliers against set criteria + training and development for our employees * regular audit of our internal processes * measurable quality objectives which reflect our business aims * management reviews of audit results, customer feedback and complaints Our internal procedures are reviewed regularly and are held in a Quality Manual which is made available to all employees. This policy is posted on the Company Notice Board and can also be found in the staff handbook. Although the Managing Director has ultimate responsibility for Quality, all employees have a responsibility within their own areas of work to help ensure that Quality is embedded within the whole of the company. The policy review date is [date]. Signed:........006 (Chief Executive) Date: Please note: It is good practice to review your quality policy regularly to ensure that it remains suitable and appropriate to your organization.What is Strategic Planning? Strategic planning is the art of creating specifi i a implementing them, and evaluating the results of cxemuting the clan Sneed toa company’s overall long-term goals or desires, It is a concept that focuses on _ integrating various departments (such as accounting and finance, marketing, and human resources) within a company to accomplish its Strategic goals. The term strategic Planning is essentially synonymous with strategic management. The concept of strategic planning originally became popular in the 1950s and 1960s, and enjoyed favor in the corporate world up until the 1980s, when it somewhat fell out of favor. However, enthusiasm for strategic business Planning was revived in the 1990s and strategic planning remains relevant in modern business. Strategic Planning Process The strategic planning process requires considerable thought and planning on the part of a company’s upper-level management. Before settling on a plan of action and then determining how to strategically implement it, executives may consider many possible options. In the end, a company’s management will, hopefully, settle on a strategy that is most likely to produce positive results (usually defined as improving the company’s bottom line) and that can be executed in a cost-efficient manner with a high likelihood of success, while avoiding undue financial risk. The development and execution of strategic planning are typically viewed as consisting of being performed in three critical steps: 1. Strategy Formulation In the process of formulating a strategy, a company will first assess its current situation by performing an internal and external audit. The purpose of this is to help identify the organization's strengths and weaknesses, as well as opportunities and threats (SWOT Analysis). As a result of the analysis, managers decide on which plans or markets they should focus on or abandon, how to best allocate the company’s resources, and whether to take actions such as expanding operations through a joint venture or merger. Business strategies have long-term effects on organizational success. Only upper management executives are usually authorized to assign the resources necessary for their implementation./ 3, strategy Implementation After a strategy is formulated, th als related to fs » Me company needs to i 4 She strategy’s execution Tre Strategy into action, and alos ePecife bes i20 ., i ie aa source: determined by how wey 2 he success of the implementation stage is oten edt u " communicating the chosen sey. spp er rouupagement docs in regard to clearly its employees to “buy into” the deste toy ighout the company and getting all of ut the strategy into action. Effective strategy i ‘ont framework. fee implementation involves developing a solid structure, or relevant resources, and tele eteateeys ‘Maximizing the utilization of goals and objectives. recting marketing efforts in line with the strategy’s 3. Strategy Evaluation Any savvy business person knows that success today does not guarantee success tomorrow. As such, it is important for managers to evaluate the performance of a chosen strategy after the implementation phase. Strategy evaluation involves three crucial activities: reviewing the internal and external factors affecting the implementation of the strategy, measuring performance, and taking corrective steps to make the strategy more effective. For example, after implementing a strategy to improve customer service, a company may discover that it needs to adopt a new customer relationship management (CRM) software program in order to attain the desired improvements in customer relations. All three steps in strategic planning occur within three hierarchical levels: upper management, middle management, and operational levels. Thus, it is imperative to foster communication and interaction among employees and managers at all levels, so as to help the firm to operate as a more functional and effective team. Benefits of Strategic Planning ili e business environment causes many firms to adopt reactive ae ner then proactive ones. However, reactive strategies are ‘ypically only viable for the short-term, even though they may require spent ing c significant amount of resources and time to execute. Strategic planning ee firms prepare proactively and address issues with @ more long-term vie ons. enable a company to initiate influence instead of just responding Among the primary benefits derived from strategic planning are the following:, He 1, Helps formulate better strategies using a logical, systematic approach leis o + Teng. proce It important benefit. Some studies show that the strategic Pane aloverall itse makes a significant contribution to improving a performance, regardless of the success of a specific strategy. 2, Enhanced communication between employers and employees comtd throws i crucial to the success of the strategic planning process. Itis eployees whieh Participation and dialogue among the managers and employees, which shows their commitment to achieving organizational goals. Strategic Planning also helps managers and employees show commitment to the organization’s goals. This is because they know what the company is doing and the reasons behind it, Strategic planning makes organizational goals and objectives real, and employees can more readily understand the relationship between their performance, the company’s success, and compensation. AS @ result, both employees and managers tend to become more innovative and creative, which fosters further growth of the company. 3. Empowers individuals working in the organization The increased dialogue and communication across all stages of the process strengthens employees’ sense of effectiveness and importance in the company’s overall success. For this reason, it is important for companies to decentralize the strategic planning process by involving lower-level managers and employees throughout the organization. A good example is that of the Walt Disney Co., which dissolved its separate strategic planning department, in favor of assigning the planning roles to individual Disney business divisions. Wrap Up An increasing number of companies use strategic planning to formulate and implement effective decisions. While planning requires a significant amount of time, effort, and money, a well-thought-out strategic plan efficiently fosters company growth, goal achievement, and employee satisfaction.