Three factors that contribute to healthy family business ownership
A healthy business has an ownership group that is emotionally connected, well informed and capable of taking responsible decisions in the interests of various stakeholder groups. ...
Brain circuits
Do you possess the 3 factors that separate great leaders from the rest? Part 2
The operating system (OS) created by leaders is the key lever they possess to bring out the best in people, ensure work streams and projects run optimally, and set the tone for how people interact and work as a team.
We studied 50 years of research consisting of 1,000 studies, looking beyond direct reports to processes, peers and stakeholders and tested our findings with 2,500 leaders. The conclusion is there are three key factors in an effective leadership OS: trust, clarity, and momentum.
Trust includes psychological safety for people, caring, reliability and fairness. In addition to making sure your employees feel safe, you also need to pay attention to your customers in times of crisis. Zoom did a good job of this; after initially having problems in the pandemic, the CEO made public rounds and restored trust in the system.
Clarity means people have an understanding about the strategy of the business, who is accountable for what, why certain things are important, and how things should be done. It also means being clear about uncertainties. While it may be uncomfortable for some leaders to admit they don’t have the answers during a crisis, it is key they do so in a clear and direct manner.
Momentum refers to the sustained activity that comes from motivation, confidence, empowerment, and togetherness. This generates drive and can counteract cultural toxins such as stress and siloed operating.
It is important to look at the trust, clarity and momentum that currently exists in your organization and pinpoint where improvements can be made.
Ask yourself this question: what are the most difficult factors in your business context and how confident are you that your direct reports, peers and line managers would agree with your assessment?
Once you have established a high-performance OS, you will be able to ensure that good decisions made are being implemented and that success is within reach.
This is the second part of a two-part series. Part one is available here.
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