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Last Updated on December 8, 2020

What Makes a Good Leader: 9 Critical Leadership Qualities

What Makes a Good Leader: 9 Critical Leadership Qualities

The word “leader” makes you think of people in charge, high-ranking people: your boss, politicians, presidents, CEOs…

But leadership really isn’t about a particular position or a person’s seniority. Just because someone has worked for many years doesn’t mean s/he has gained the qualities and skills to lead a team.

Getting promoted to a managerial position doesn’t automatically turn you into a leader either. CEOs and other high-ranking officials don’t always have great leadership skills.

So what makes a good leader? What are the characteristics of a leader?

Good leadership is about acquiring and honing specific skills. Leadership skills enable you to be a role model for a team in any environment. With great leadership qualities, successful leaders come in all shapes and sizes: in the home, at school, or in the workplace.

The following are some of the many characteristics great leaders exhibit.

1. A Positive Attitude

Great leaders know that they won’t have a happy and motivated team unless they themselves exhibit a positive attitude. This can be done by remaining positive when things go wrong and by creating a relaxed and happy atmosphere in the workplace.

Even some simple things like providing snacks or organizing a team Happy Hour can make a world of difference. An added perk is that team members are likely to work harder and do overtime when needed if they’re happy and appreciated.

Even in the worst situations, such as experiencing low team morale or team members having made a big mistake at work, a great leader stays positive and figures out ways to keep the team motivated to solve the problems.

Walt Disney had his share of hardships and challenges, and like any great leader, he managed to stay positive and find new opportunities. In 1928, Disney found that his film producer, Charles Mintz, wanted to reduce his payments for the Oswald series. Mintz threatened to cut ties entirely if Disney didn’t accept his terms, and Disney chose to part ways. But in leaving Oswald, Disney decided to create something new: the iconic Mickey Mouse[1].

The key is to break down huge challenges into smaller ones and find ways to tackle them one by one.

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Think about the lessons you can learn from the mistake and jot them down because sometimes you win, and sometimes you learn.

2. Confidence

All great leaders have to exhibit an air of confidence if they’re going to succeed. Please don’t confuse this with self-satisfaction and arrogance. You want people to look up to you for inspiration, not so they can punch you in the face.

Confidence is important because people will be looking to you on how to behave, particularly if things aren’t going 100% right. If you remain calm and poised, team members are far more likely to as well. As a result, morale and productivity will remain high, and the problem will be solved more quickly.

If you panic and give up, they will know immediately and things will simply go downhill from there.

Elon Musk is a great example of a leader with confidence. He truly believes that Tesla will be successful, which he has shown many times through his actions. He converted 532,000 stock options at $6.63 each, their value on Dec. 4, 2009, before Tesla went public. It was a hefty bargain considering Tesla’s stock price stood at around $195 per share at that time. He doesn’t apologize for his beliefs and has drawn fire from just about everyone for his political actions.

You can’t instantly become a very confident person, but all the small things you do every day will gradually make you more confident:

  • List 5 things you like about yourself every day (something different every day), and you’ll appreciate yourself more.
  • Work on your strengths and do your best to enhance them.

3. A Sense of Humor

It’s imperative for any kind of leader to have a sense of humor, particularly when things go wrong. And they will.

Your team members are going to be looking to you for how to react in a seemingly dire situation. It would probably be best if you weren’t stringing up a noose for yourself in the corner. You need to be able to laugh things off because if staff morale goes down, so will productivity.

Establish this environment prior to any kind of meltdown by encouraging humor and personal discussions in the workplace.

As a president, Barack Obama exuded confidence and calm during stressful situations. But he was also known for his “dad jokes,”[2] his genuinely funny speeches at the White House Correspondents’ Dinner, and appearing on Zack Galifianakis’s Between Two Ferns.[3] Obama’s sense of humor made him grounded, realistic, and honest, which no doubt helped during some tense moments in the White House!

Learn to laugh at yourself. Confident people laugh about their own silly mistakes, and when you do this, others will also trust you more because you’re willing to share your experiences.

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Be observant and learn from the jokes others make. You can also get a lot of inspiration from the internet.

4. Ability to Embrace Failure

No matter how hard you try to avoid it, failures will happen; that’s okay. You just need to know how to deal with them.

Great leaders take them in strides. They remain calm and logically think through the situation and utilize their resources. What they don’t do is fall apart and reveal to their team how worried they are, which leads to negative morale, fear, and binge-drinking under desks.

Great leaders do, in fact, lead, even when they’re faced with setbacks.

Henry Ford experienced a major setback after designing and improving the Ford Quadricycle. He founded the Detroit Automobile Company in 1899, but the resulting cars they produced did not live up to his standards and were too expensive. The company dissolved in 1901. Ford took this in stride and formed the Henry Ford Company. The sales were slow and the company had financial problems; it wasn’t until 1903 that the Ford Motor Company was successful and put the Ford on the map.

Get to the root cause of any problem so you can prevent it from happening again and learn from the mistake.

By asking “why” 5 times (or more) on why something happened, you can find out the key factor that caused the problem and can find the best solution to tackle the problem.

You’ll also learn how to prevent this from happening again in the future after finding out a problem’s root cause.

5. Careful Listening and Feedback

This is far more complex than it actually sounds. Good communication skills are essential for a great leader. You may very well understand the cave of crazy that is your brain, but that doesn’t mean that you can adequately take the ideas out of it and explain them to someone else.

The best leaders need to be able to communicate clearly with the people around them. They also need to be able to interpret other people properly and not take what they say personally.

The Dalai Lama, as a symbol of the unification of the state of Tibet, represents and practices Buddhist values. The Dalai Lama’s leadership is benevolent and aims toward truth and understanding, alongside the other Buddhist precepts. This is a great example for all leaders: if you want to give good directions to others, you have to get feedback from others to understand the situation properly.

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Encourage communication between team members and establish an open door policy.

Practice not interrupting team members when they’re talking. Instead, summarize what they say and ask for feedback after you have talked about your ideas.

6. Knowing How and When to Delegate

No matter how much you might want to, you can’t actually do everything yourself. Even if you could, in a team environment that would be a terrible idea anyway.

Good leaders recognize that delegation does more than simply alleviate their own stress levels (although that’s obviously a nice perk). Delegating to others shows that you have confidence in their abilities, which subsequently results in higher morale in the workplace, as well as loyalty from your staff. They want to feel appreciated and trusted.

Although Steve Jobs was known for focusing in on the smallest of details, he knew how to delegate. By finding, cultivating, and trusting capable team members, Jobs was able to make Apple run smoothly, even when he had to be absent for extended periods of time.

To know when and how to delegate work to team members, you have to be very familiar with each of them:

  • List out all of their strengths, weaknesses, and personalities.
  • Talk with your team members more to know about their passion and interests.

Take a look at this guide and learn more about delegation: How to Delegate Work Effectively (The Definitive Guide for Leaders)

7. Growth Mindset

Any good leader knows how important it is to develop the skills of those around them. The best can recognize those skills early on. Not only will development make work easier as they improve and grow, it will also foster morale. In addition, they may develop some skills that you don’t possess that will be beneficial to the workplace.

Great leaders share their knowledge with the team and give them the opportunity to achieve. This is how leaders gain their respect and loyalty.

Pope Francis has been unusually popular with many Catholics and many non-Catholics. His position isn’t totally traditional, which is part of his appeal, but he also has admirable leadership skills. Pope Francis’s TED talk[4] drew attention because he encouraged leaders to be humble and to demonstrate solidarity with others. This inclusive, kind, and respectful style of leadership is incredibly important for any situation.

It’s important to spend time talking with other team members individually to understand them.

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Find out team members’ current challenges and try to give feedback and encouragement so they will grow and do better.

8. Responsibility

Great leaders know that when it comes to their company, work place or whatever situation they’re in, they need to take personal responsibility for failure. How can they expect employees to hold themselves accountable if they themselves don’t?

The best leaders don’t make excuses; they take the blame and then work out how to fix the problem as soon as possible. This proves that they’re trustworthy and possess integrity.

Howard Gillman is the chancellor of UC Irvine. You might have heard of how the university rescinded a bunch of acceptances, and then changed its mind[5], This past spring, an unusually high number of accepted students decided to matriculate; the school initially responded by rescinding offers over things like missed deadlines. But the college realized this was a mistake and reversed its decision. Gillman and the university accepted responsibility and decided to move past their earlier bad decision.

Always ask yourself what you can do better or what you should change. Take responsibility and think about what you can do better to prevent this from happening next time.

9. A Desire to Learn

It’s safe to say that all great leaders will have to enter unchartered waters at some point during their career. Because of this, they have to be able to trust their intuition and draw on past experiences to guide them.

Great leaders know that there’s always something to learn from everything they have experienced before. They are able to connect the present challenges with the lessons learned in the past to make decisions and take actions promptly.

You can either recall what you’ve learned from your memories or search your notes (ideally, a software that you can access anywhere with things well-organized).

Warren Buffett, one of the richest people in the world, has mostly made the right calls. But in dealing with huge amounts of money, Buffett has also made several multi-million (and sometimes multi-billion) dollar mistakes. He has stated that buying the company Berkshire Hathaway was his biggest mistake[6]. From that poor choice, he realized that it was unwise to pursue “improvements” and “expansions” in the existing textile industry. Despite mistakes like this, Buffett has invested wisely, and it shows.

To effectively learn from the past, write down lessons you’ve learned from any mistakes you’ve made. Have all the lessons well organized, and when similar things happen again in future, take these lessons as references.

The Bottom Line

Leadership traits are learnable. If you practice consistently, you can be a great leader, too.

Make small changes to your habits when you work with your team, wherever that may be. Most of us aren’t presidents or CEOs, but we all work with other people, and our actions always impact others. This gives every person the chance to develop leadership skills and to stand out from the crowd.

More Tips on Leadership

Featured photo credit: Markus Spiske via unsplash.com

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Tegan Jones

Tegan is a passionate journalist, writer and editor. She writes about lifestyle tips on Lifehack.

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Last Updated on January 6, 2021

14 Ideas on How to Measure Productivity to Make Progress

14 Ideas on How to Measure Productivity to Make Progress

Everyone has heard the term productivity, and people talk about it in terms of how high it is and how to improve it. But fewer know how to measure productivity, or even what exactly we are talking about when using the term “productivity.”

In its simplest form, the productivity formula looks like this: Output ÷ Input = Productivity.

For example, you have two salespeople each making 10 calls to customers per week. The first one averages 2 sales per week and the second one averages 3 sales per week. By plugging in the numbers we get the following productivity levels for each sales person.

For salesperson one, the output is 2 sales and the input is 10 sales: 2 ÷ 10 = .2 or 20% productivity. For salesperson two, the output is 3 sales and the input is 10 sales: 3 ÷ 10 = .3 or 30% productivity.

Knowing how to measure and interpret productivity is an invaluable asset for any manager or business owner in today’s world. As an example, in the above scenario, salesperson #1 is clearly not doing as well as salesperson #2.

Knowing this information we can now better determine what course of action to take with salesperson #1.

Some possible outcomes might be to require more in-house training for that salesperson, or to have them accompany the more productive salesperson to learn a better technique. It might be that salesperson #1 just isn’t suited for sales and would do a better job in a different position.

How to Measure Productivity With Management Techniques

Knowing how to measure productivity allows you to fine tune your business by minimizing costs and maximizing profits:

1. Identify Long and Short-Term Goals

Having a good understanding of what you (or your company’s) goals are is key to measuring productivity.

For example, if your company’s goal is to maximize market share, you’ll want to measure your team’s productivity by their ability to acquire new customers, not necessarily on actual sales made.

2. Break Down Goals Into Smaller Weekly Objectives

Your long-term goal might be to get 1,000 new customers in a year. That’s going to be 20 new customers per week. If you have 5 people on your team, then each one needs to bring in 4 new customers per week.

Now that you’ve broken it down, you can track each person’s productivity week-by-week just by plugging in the numbers:

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Productivity = number of new customers ÷ number of sales calls made

3. Create a System

Have you ever noticed that whenever you walk into a McDonald’s, the French fry machine is always to your left? 

This is because McDonald’s created a system. They have determined that the most efficient way to set up a kitchen is to always have the French fry machine on the left when you walk in.

You can do the same thing and just adapt it to your business.

Let’s say that you know that your most productive salespeople are making the most sales between the hours of 3 and 7 pm. If the other salespeople are working from 9 am to 4 pm, you can potentially increase productivity through something as simple as adjusting the workday.

Knowing how to measure productivity allows you to set up, monitor, and fine tune systems to maximize output.

4. Evaluate, Evaluate, Evaluate!

We’ve already touched on using these productivity numbers to evaluate and monitor your employees, but don’t forget to evaluate yourself using these same measurements.

If you have set up a system to track and measure employees’ performance, but you’re still not meeting goals, it may be time to look at your management style. After all, your management is a big part of the input side of our equation.

Are you more of a carrot or a stick type of manager? Maybe you can try being more of the opposite type to see if that changes productivity. Are you managing your employees as a group? Perhaps taking a more one-on-one approach would be a better way to utilize each individual’s strengths and weaknesses.

Just remember that you and your management style contribute directly to your employees’ productivity.

5. Use a Ratings Scale

Having clear and concise objectives for individual employees is a crucial part of any attempt to increase workplace productivity. Once you have set the goals or objectives, it’s important that your employees are given regular feedback regarding their progress.

Using a ratings scale is a good way to provide a standardized visual representation of progress. Using a scale of 1-5 or 1-10 is a good way to give clear and concise feedback on an individual basis.

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It’s also a good way to track long-term progress and growth in areas that need improvement.

6. Hire “Mystery Shoppers”

This is especially helpful in retail operations where customer service is critical. A mystery shopper can give feedback based on what a typical customer is likely to experience.

You can hire your own shopper, or there are firms that will provide them for you. No matter which route you choose, it’s important that the mystery shoppers have a standardized checklist for their evaluation.

You can request evaluations for your employees friendliness, how long it took to greet the shopper, employees’ knowledge of the products or services, and just about anything else that’s important to a retail operation.

7. Offer Feedback Forms

Using a feedback form is a great way to get direct input from existing customers. There are just a couple of things to keep in mind when using feedback forms.

First, keep the form short, 2-3 questions max with a space for any additional comments. Asking people to fill out a long form with lots of questions will significantly reduce the amount of information you receive.

Secondly, be aware that customers are much more likely to submit feedback forms when they are unhappy or have a complaint than when they are satisfied.

You can offset this tendency by asking everyone to take the survey at the end of their interaction. This will increase compliance and give you a broader range of customer experiences, which will help as you’re learning how to measure productivity.

8. Track Cost Effectiveness

This is a great metric to have, especially if your employees have some discretion over their budgets. You can track how much each person spends and how they spend it against their productivity.

Again, this one is easy to plug into the equation: Productivity = amount of money brought in ÷ amount of money spent.

Having this information is very useful in forecasting expenses and estimating budgets.

9. Use Self-Evaluations

Asking your staff to do self evaluations can be a win-win for everyone. Studies have shown that when employees feel that they are involved and their input is taken seriously, morale improves. And as we all know, high employee morale translates into higher productivity.

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Using self-evaluations is also a good way to make sure that the employees and employers goals are in alignment.

10. Monitor Time Management

This is the number one killer of productivity in the workplace. Time spent browsing the internet, playing games, checking email, and making personal calls all contribute to lower productivity[1].

Time Management Tips to Improve Productivity

    The trick is to limit these activities without becoming overbearing and affecting morale. Studies have shown that most people will adhere to rules that they feel are fair and applied to everyone equally.

    While ideally, we may think that none of these activities should be done on company time, employees will almost certainly have a different opinion. From a productivity standpoint, it is best to have policies and rules that are seen as fair to both sides as you’re learning how to measure productivity.

    11. Analyze New Customer Acquisition

    We’ve all heard the phrase that “It’s more expensive to get a new customer than it is to keep an existing one.” And while that is very true, in order for your business to keep growing, you will need to continually add new customers.

    Knowing how to measure productivity via new customer acquisition will make sure that your marketing dollars are being spent in the most efficient way possible. This is another metric that’s easy to plug into the formula: Productivity = number of new customers ÷ amount of money spent to acquire those customers.

    For example, if you run any kind of advertising campaign, you can compare results and base your future spending accordingly.

    Let’s say that your total advertising budget is $3,000. You put $2,000 into television ads, $700 into radio ads, and $300 into print ads. When you track the results, you find that your television ad produced 50 new customers, your radio ad produced 15 new customers, and your print ad produced 9 new customers.

    Let’s plug those numbers into our equation. Television produced 50 new customers at a cost of $2,000 (50 ÷ 2000 = .025, or a productivity rate of 2.5%). The radio ads produced 15 new customers and cost $700 (15 ÷ 700 = .022, or a 2.2% productivity rate). Print ads brought in 9 new customers and cost $300 (9 ÷ 300 = .03, or a 3% return on productivity).

    From this analysis, it is clear that you would be getting the biggest bang for your advertising dollar using print ads.

    12. Utilize Peer Feedback

    This is especially useful when people who work in teams or groups. While self-assessments can be very useful, the average person is notoriously bad at assessing their own abilities.

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    Just ask a room full of people how many consider themselves to be an above average driver and you’ll see 70% of the hands go up[2]! Now we clearly know that in reality about 25% of drivers are below average, 25% are above average, and 50% are average.

    Are all these people lying? No, they just don’t have an accurate assessment of their own abilities.

    It’s the same in the workplace. Using peer feedback will often provide a more accurate assessment of a person’s ability than a self-assessment would.

    13. Encourage Innovation and Don’t Penalize Failure

    When it comes to productivity, encouraging employee input and adopting their ideas can be a great way to boost productivity. Just make sure that any changes you adopt translate into higher productivity.

    Let’s say that someone comes to you requesting an entertainment budget so that they can take potential customers golfing or out to dinner. By utilizing simple productivity metrics, you can easily produce a cost benefit analysis and either expand the program to the rest of the sales team, or terminate it completely.

    Either way, you have gained valuable knowledge and boosted morale by including employees in the decision-making process.

    14. Use an External Evaluator

    Using an external evaluator is the pinnacle of objective evaluations. Firms that provide professional evaluations use highly trained personnel that even specialize in specific industries.

    They will design a complete analysis of your business’ productivity level. In their final report, they will offer suggestions and recommendations on how to improve productivity.

    While the benefits of a professional evaluation are many, their costs make them prohibitive for most businesses.

    Final Thoughts

    These are just a few of the things you can do when learning how to measure productivity. Some may work for your particular situation, and some may not.

    The most important thing to remember when deciding how to track productivity is to choose a method consistent with your goals. Once you’ve decided on that, it’s just a matter of continuously monitoring your progress, making minor adjustments, and analyzing the results of those adjustments.

    The business world is changing fast, and having the right tools to track and monitor your productivity can give you the edge over your competition.

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    Featured photo credit: William Iven via unsplash.com

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