Most organizations define success by their profitability. They then connect their profits to what they produce – products, services, etc. They might further credit their increasing success to their latest actions – a new online channel, enhanced website or marketing strategy.
But according to a recent Mercer study, 52% of a company's long-term profitability is directly related to the quality of their leadership team. Even more insightful, this same study found that only 39% of leaders from different organizations rated their personal performance as good.
Today the pressure on businesses and other sectors is for unrelenting productivity and better results. Leaders are seen to be expendable if they cannot deliver “bottom line” success. Competencies such as analytical ability, execution, prioritizing and time management are lauded as most critical. But in reality, leaders who have high emotional intelligence, and practice empathy and tolerance create environments of trust, openness and genuine commitment to achieve goals and succeed as a collective.
Research shows this management style delivers not only the coveted bottom-line financial success but also creates a healthy and safe workplace where employees choose to do their best and strive to do better. Leaders who focus on balancing employee capabilities and the challenges they face characterize such workplaces.
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