Importance Of Leadership And Characteristics Of An Effective Leader

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Do you know what creates a downward spiral in business success? The companies that emphasize implementing effective leadership practices establish their dominance in the market. Good leaders play a significant role in raising team performance towards the common organizational goals. They don’t have to be in management positions necessarily; rather, they should be capable of using their leadership skills to foster teamwork. Leadership is all about executing the company’s vision after refining and improving to set a streamlined and efficient workflow. When an organization lacks leadership, it leads to disengagement among employees. 

As per the research of Gallup, around 24% of employees were assessed as disengaged from their work due to poor management, which led them to become less productive and profitable. Also, this is the major reason which causes turnover. Now you might have realized how much leadership is required to retain employees, provide effective service to customers, and enhance the company’s overall productivity. You should know about Charles Field Marsham, who is a Canadian entrepreneur with more than twenty-five of experience in building businesses. He is the co-founder of the Field Marsham Foundation. He is dedicated to fostering strong communities where he lives and works and is involved with numerous charities and not-for-profit organizations. 

Characteristics Of An Effective Leader

There are a particular set of characteristics and skills that every leader must possess before taking over the position. Although, there are highly required traits that every leader like Richard Branson has in their personality to effectively guide, instruct and lead the team. Some of the majorly required traits of effective leaders are listed as follows:

  • Influential

It is one of the most essential leadership skills that directly impact the behavior, attitude, opinions, and preferences of subordinates. Influence can never be attributed to power, control, or potential for being in that position. Influential leaders are capable of inspiring others’ actions more positively.

  • Transparency

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Lack of transparency is the major root cause for no integration among team members. It causes disbelief, disappointment, and dissatisfaction. A trustful relationship is built when leaders are truly and dedicatedly involved with them. Transparency is important to promote collaboration, knowledge, and easy flow of work. But it should be balanced with privacy while some sets of boundaries are crucial.

  • Risk-taking

Most people are overwhelmed with the fact that success takes much more from you. Taking risk is rewarding on one side while it can flip the scenario of the company. Without taking risks, innovation seems impossible to happen which retards the company to gain a competitive advantage. Big breakthroughs can never happen if the company is playing safe.

  • Decisive

High-performing companies have fast-changing business processes and a complex working environment requiring highly decisive leaders. The leader has to be an active observer and analytical thinker to solve problems effectively.


Without effective leadership, it can cost more to the company than anything else. Every company must encourage effective leadership practices in the organization. Leadership traits create more motivation, inspiration, and powerful strategy.

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