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June 16, 2010

What happens when good leaders lose their way?

Power placed in the wrong hands corrupts and we have only to look back through the pages of time to verify that statement. But while history will continue to record the trails of destruction caused by despots, can your business afford the fallout of a leader who has become a liability?

In last month’s web poll we asked when preparing managers for leadership, what was the most effective way of ensuring their success?

Professional mentor

Sixteen per cent of respondents said develop a leader’s interpersonal skills, while 63 per cent voted to provide a professional mentor. Top tier managers sometimes struggle to stay grounded and the pressures of hitting KPIs are likely to become all consuming in times of crisis.

But there’s more to running a business than meeting financial targets if you want to stay ahead of your competitors and prevent top performers from jumping ship.

Employee retention

The wheels of industry do not run smoothly without the retention of good people, employed at every level. Given the current skills shortage across Australia, employee retention is an item that should be on every leader’s agenda. A high staff turnover is frequently an indicator of a lacklustre business losing its way.

More than half of respondents in last month’s web poll said the ability to inspire was the single most important attribute for a good leader, and 57 per cent said they believed good leaders were made rather than born.

Professional development

The result would suggest that in the best interests of your business, leadership development should be continuous throughout an individual’s career because it’s a rare individual who is born to inspire and lead others unsupported.

When things go wrong, how does your company address a manager’s shortcomings in leadership? The result was spilt: 48 per cent said their business provided professional and personal development with training and support, while 42 per cent confessed their company failed to address leadership gaps, and 9 per cent admitted they did not know.

10 Warning Signs of an Incompetent Leader
  1. Delegates responsibilities rather than balances work load, in a bid to divert attention in case of failure.
  2. Refuses to allocate time for continuous training and development.
  3. Abuses their rank to humiliate subordinates at group meetings.
  4. Fails to recognise other people’s ideas and claims innovations as their own.
  5. Creates a culture of blame where human error is unacceptable.
  6. Assesses employees on hours worked and not quality of performance.
  7. Behaves differently in the presence of their leaders and never questions them.
  8. Crisis manages situations rather than plans ahead.
  9. Encourages people to work longer and harder, not sharper and smarter.
  10. Micromanages employees and loses sight of the bigger picture.


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