Leadership Drives Business

Over the years there have been a number of studies done regarding the effect of leadership on the success of a business. Each study has clearly revealed that a strong link exists between the leadership practiced by company/business managers and the performance of the company/business. This link has appeared to be especially strong for companies/businesses operating in uncertain environments, which of course is almost universally the case in the contemporary business world.

Leadership is defined as the use of noncoercive influence to shape company/business goals, motivate employee behavior toward achievement of those goals, and define company/business culture. More specifically, leaders work to accomplish the following things:

(1) Create a vision of what the company/business should be,
(2) Communicate with and gain the support of multiple constituencies to the vision,
(3) Persist in the vision even under challenging conditions, and
(4) Create the appropriate culture to obtain the desired results associated with the vision.


Leaders, then, are people who can influence the behavior of others without having to rely on force. It follows that such people should possess certain core traits which are associated with this quality. The most often cited core traits are:
(1) Drive,
(2) Integrity,
(3) Self-Confidence,
(4) Cognitive Ability,
(5) Extraversion, and
(6) Openness to New Experiences.


Drive refers to the initiative, persistence, and tenacity that a person possesses. Leaders must have the drive to create a vision and engage in behavior to achieve that vision. Further, a leader must have the drive to continue to act positively in times of turbulence.


Integrity relates to the honesty and truthfulness that is demonstrated by a person. Leaders must maintain consistency in what they say and what they do. Leaders with high integrity are likely to win the trust of followers.


Self-Confidence is demonstrated through a person's ability to learn from their mistakes, react positively to stress, and remain even-tempered under all circumstances. Leaders who possess high self-confidence are more likely to inspire others.


Cognitive Ability refers to a person's degree of high intelligence. Leaders who possess a high degree of intelligence are better able to process complex information and deal with changing business environments.


Extraversion refers to a person's comfort level with being around and working with other people. Leaders who are high in extraversion are comfortable in proactively working on problems and opportunities with a wide range of individuals.


Openness to New Experiences is the degree that a person is open to new ideas and flexible as to how to deal with same. Leaders who possess this quality are better able to deal with a dynamic business environment.


To stay competitive, a company/business must be able to inspire organizational members to go beyond their ordinary task responsibilities and exert extraordinary levels of performance. A company/business manager who can achieve extraordinary levels of performance from employees is said to exhibit "transformational leadership".


More specifically, transformational leadership involves motivating followers to do more than expected, to continuously develop and grow in their skills, to increase their level of self-confidence, and to place the interests of the company/business before their own.