MANAGEMENT/LEADERSHIP SPECIAL....LEADERSHIPTHE FOUR FOLD IMPACT

LEADERSHIP  THE FOUR FOLD IMPACT  Research has shown that good leadership produces four times better bottom-line results and also facilitates investor confidence in future business success     Research has shown that good leadership produces better bottom-line results and this business-inclined leadership quality also facilitates investor confidence in future business success.     Effective leadership influences business outcomes in four important ways:     The first is ‘creating a vision and ensuring vision alignment within the organisation'. While most organisations do have a vision, the key is on how well it is articulated and more importantly, how compelling is that vision for all employees. Does it arouse motivation in employees or is it something that remains on paper? Equally important is how frequently and consistently a compelling vision is communicated to the last person in the organisation. Effective leadership ensures that a proper vision alignment focuses all energies in one direction – towards that of the organisation's mission and objectives. Effective leadership continuously looks for opportunities to communicate a consistent message across the length and breadth of the organisation and ensures that a uniform understanding is created at all levels.     The second quality of effective leadership is ‘creating a differentiated strategy in achieving company's vision'. Unless an organisation is a cost leader, it does not make sense to play the competition on prices alone. The business must have a sustainable differentiation vis-a-vis the competition. It can come from a strong brand, efficient supply chain, customer service or innovation in new product launches, etc. The strategy actually builds on this differentiation to deliver profitable growth for the organisation. Effective leaders develop with their teams a differentiated strategy to compete in the marketplace.     The third is ‘developing excellence in operational efficiency'. No matter how strong the vision and strategy of the organisation, execution is the key. That is why operational excellence is an absolute must and a timetested way to enhancing business results in the short and long-term. Operational excellence is being able to do something repeatedly better and better, thus creating new benchmarks and finding new ways of doing things. These include initiatives towards achieving excellence in manufacturing, marketing, supply chain management, etc. More focused initiatives like fixed cost optimisation and inventory management if done properly can certainly yield remarkable results in the immediate time-line.     ‘Capability building' is the fourth avenue for effective leadership to create good business results. Though it is much written and talked about, this tends to get the least focus as the dividends can be seen only in the longterm. Having said this, effective leadership recognises the importance of strengthening capabilities in terms of an effective organisational structure, systems and processes, culture and people capabilities. They do this by challenging the status quo, encouraging a debate and finding the way forward through consensus-building. Leaders are critical in the way they manage their teams. Very clearly laid expectations motivate employees to continuously innovate to develop and realise their potential.     What good coaching can achieve, formal training cannot. Effective coaching creates more coaches through a chain reaction, thus replicating coaching effort.  Meenakshi Narain   - The author is head HR,   Ambuja Cements Ltd ET130924