8 Leadership Qualities Required For Growth
McKinsey – together with the equally esteemed executive search firm Egon Zehnder International – have published a study showing which leadership competencies are most valuable when it comes to growing a business. Not surprisingly they found that “leadership quality is critical to growth, that most companies don’t have enough high-quality executives, and that certain competencies are more important to some growth strategies than to others”.
That’s hardly surprising to anyone, but maybe some of the details are. They looked at eight different leadership qualities on a 7-point scale and calculated the difference in how good the leaders are related to these traits between the best and the worst companies:
- Collaboration and influencing: 0.1
- Team leadership: 0.3
- Results orientation: 0.4
- Developing organizational capacity: 0.4
- Strategic orientation: 0.5
- Customer impact: 0.8
- Market insight: 0.9
Customer Impact & Market Insight
What this table says is that those companies who have leaders who are good at “Customer impact” (defined as the capacity to understand customers’ evolving needs) and “Market insight” (defined as looking beyond a company’s current business landscape to discern future growth opportunities) clearly outperform other companies when it comes to growth.
So if leaders are good at “Customer impact” and “Market insight” they are good at creating growth.
Come on, do we really need research from McKinsey to tell us that? Honestly, it’s a no-brainer that you need to understand your customers, competitors and markets in order to grow your business. So if it’s not too late for you to make a Christmas wish for your business I suggest that you wish for less hot air and more deep insights about your customers, competitors and markets. That will be your safest bet to make your business grow.
Why not download our funny and inspirational e-book “Santa, we need change!” to get an idea or two about how good ol’ Santa Claus managed to grow his failing business at the North Pole? It sure beats this McKinsey study when it comes to actionable advice on how to grow your business.