The ABC’s of a Good Leader
Good leadership is something everyone wants to achieve whether the person happens to be a CEO, a banker, an entrepreneur or even an owner of a small scale business.
So how does one become a good leader? Here are important guidelines to keep in mind to help any person in the business industry to succeed and be of good example to others.
1. LEARN TO SACRIFICE
It is wrong for leaders to retain their high compensation and ask for more bonuses when their company is experiencing difficult times. Michael Kneeland, CEO of United Rentals, recently asked for and was granted a 20% pay cut. This is one good deed that should be emulated.
2. BE ACQUINTED WITH YOUR PRODUCT
Based on a recent three-part story published in The Wall Street Journal, investors’ weaknesses when it comes to doing businesses fall on the reason that they do no realize the complexities of the products they will either buy or sell.
It is indeed an ethical obligation for anyone in a business to know the characteristics of its products. This is for the benefit of the company, the clients and the person himself.
3. THE END DOESN’T JUSTIFY THE MEAN
Many business leaders failed to treat others the way they want to be treated. They sought to get all they want whatever means they have to do. For example, credit card companies tend to put unauthorized charges to peoples’ accounts. These companies do such moves because they believed that they’ll keep their competitive edge this way.
This kind of action is irresponsible, unfair and leads to bad business. Good leaders, as early as conflict arises, know how to manage their businesses themselves.
4. TRUTH DOESN’T HURT
A good leader has to be honest and truthful. This is a must especially for issues which concern stakeholders and clients. As an example, Apple CEO Steve Jobs announced that he was taking a five-month medical leave of absence. This caused a 10% drop in Apple stock but Jobs did the right thing of letting his stockholders know his condition. At least, these stockholders could think of solutions to prevent the drop to worsen.
5. THERE IS BAD KARMA
A good leader knows the consequences of a decision made. The decision made should not cause harm to both clients and company.
Companies like subprime mortgage lenders and brokers lend money to people who likely have hard time paying and eventually seek financial rescue from the federal government.
What these companies didn’t realize that in the long run, their schemes will be detected through form of bankruptcy fillings, bad PR and foul business evaluations.
6. DON’T TAKE ADVANTAGE
Some business men take advantage when a tragedy or an event takes place. But this action is not for good leadership. Situations like calamities can really bring good profit but the outcome of these deeds is not favorable. For instance, more than a dozen companies paid $60,000 for dishonest business practices following Hurricane Katrina.
7. KEEP PROMISES
Good leaders know when to make promises they are sure to fulfill. This is a sign that the leader is true to the commitment he made to himself, to the company and to the clients.
8. ADMIT MISTAKES
Committing error is unavoidable but admitting its occurrence is hard. It is a difficult move for a business leader to accept mistakes but it is a great thing if the leader apologizes and makes improvements. In 2007, Mattel CEO Robert Eckert apologized publicly for lead-painted toys but ensured that they’ll work closely with Consumer Product Safety Commission to solve the problem.
9. GIVE BACK
President Calvin Coolidge left a statement that should serve as an inspiration for everyone: “Of course the accumulation of wealth cannot be justified as the chief end of existence”. A noble leader’s goal in life and business is not getting all the riches but also reaching out for the less fortunate people in the society.
10. RECOGNIZE THE VALUE OF LIFE
Aside from completing their missions, good business leaders think about the welfare of others. Whatever challenges may come, a leader stays firm to his principles and his dignity.