Successful business management has changed a lot over time. To succeed in today's corporate world, a range of different skills are required for leaders. Leadership is increasingly being used in this context. Here you can find out what leadership actually means and what makes a good leader.
What is leadership?
There are different interpretations and definitions of the term leadership. It is usually equated with the German equivalent "leadership" and is often associated with the practice of leadership. But to refer to the term leader exclusively as a leader does not go far enough, because the role of a leader involves much more. In contrast to the German term, the English term leader has neutral and not negative connotations.
Essentially, leadership embodies the ability to inspire and motivate other people through one's own vision. This is not only about motivating statements, but also about the embodiment of certain values and beliefs through the leader's own actions.
The Difference Between Leadership and Management
- Management is the art of getting things done. Leadership is the art of getting people to do things.
- Managers are administrators. They organize resources, processes, and people. They keep things running smoothly.
- Leaders are visionaries. They have an idea of what could be, and they inspire others to follow them along the way.
- Good leaders are both managers and visionaries. They can organize and get things done, but they can also inspire and motivate people.
What makes a good leader?
Good leaders have a number of characteristics that set them apart from others. These include:
- Vision: Good leaders have a clear vision for the future. They know where they want to go, and they can convey that vision to others.
- Motivation: Good leaders are self-motivated and they can motivate others as well. They create an environment where people feel valued and inspired.
- Communication: Good leaders are good communicators. They can articulate their vision clearly and they are also good at listening.
- Integrity: Good leaders have integrity. They act according to their values and they are honest and trustworthy.
- Empathy: Good leaders have empathy. They can put themselves in the shoes of others and they understand their needs.
- Decisiveness: Good leaders are decisive. You can make decisions even if the information is incomplete.
Leadership Styles
There are different leadership styles that have proven themselves in practice. These include:
- Transformational Leadership: Transformational leaders inspire and motivate their employees to go beyond their own limits. They create an environment where learning and innovation thrive.
- Transactional Leadership: Transactional leaders lead their employees through reward and punishment. They set clear goals and expectations, and they reward their employees for achieving those goals.
- Laissez-faire leadership: Laissez-faire leaders give their employees a lot of freedom and autonomy. They trust that their employees will make the right decisions.
The right leadership style
The right leadership style depends on the situation. There is no one-size-fits-all style that works all the time, everywhere.
In some situations, a transformational leadership style is required. This is the case, for example, when a company needs a new vision or when it is in crisis.
In other situations, a transactional leadership style is more appropriate. This is the case, for example, if the tasks are clearly defined and if the employees have the necessary skills and competences.
And in some situations, a laissez-faire leadership style is the best way to go. This is the case, for example, if the employees are highly motivated and competent and if they have a lot of experience.
The Future of Leadership: Digital Leadership
Effective leadership is critical to the success of a business. The type of leadership style, as well as the appropriate people for this role, vary from company to company.
An increasingly important term is Digital Leadership, also known as Leadership 4.0. Under the concept of digital leadership, digitalization is used to realize forward-looking visions. Digital leaders are leveraging new media and technologies to drive operational efficiencies.
In order to adapt to new conditions, the company must act more flexibly and agilely. A digital leader therefore needs media literacy and flexibility in particular in order to adapt to the continuously changing structures.
Good leaders will be able to overcome the following challenges:
- Digitalization: Digitalization is fundamentally changing the global economy. Leaders need to understand the opportunities and risks of digitalization and they need to prepare their companies for the digital future.
- Globalization: The world economy is becoming more and more global. Leaders need to be able to work with people from different cultures.
- Demographic change: The population in many countries is ageing. Leaders need to understand the needs of the older generation and they need to ensure that companies continue to have a sufficiently skilled workforce in the future.
Good leaders will shape the future. They will lead the companies of tomorrow and they will make the world a better place.
