Entrepreneurs with leadership skills usually build successful businesses. While many types of leadership styles exist, some are known to be more effective than others.
For instance, autocratic leadership can effectively grow a small business, but the growth is likely to be limited. The business is also likely to have high turnover because this type of leadership does not permit discussions, negotiations, and involvement of employees in the decision-making process.
On the other hand, a leadership style that allows employees to have a say in everything might cause them to lose track of the vision and mission of the company. There is a need to strike a balance. That is why many business executives prefer the bureaucratic leadership style.
Employees should be involved in the decision-making process, but once policies, protocols, and guidelines have been established, every team member is expected to abide by those rules or guidelines.
Double Iron Consulting is a business consultancy firm that focuses on family businesses. William Smith, the founder and CEO of Double Iron Consulting, and the team can help family businesses overcome different challenges.
About Double Iron Consulting
William, also known as Bill Smith, worked for Royal Cup Coffee’s family business since high school. He worked every summer during his high school and college years, learning about the business from the factory floor to the sales and delivery routes.
After earning an MBA from Emory University’s Goizueta Business School, William Smith returned to the family business. This time, he took on a managerial role in the operations division. Here, he transformed the company by improving the capabilities and capacity of various units in the company.
In 2014, he became the company president and CEO, a role that allowed him to streamline operations, build the Royal Cup Coffee platform, and continue the company’s growth as one of the largest roasters and distributors of coffee in the United States.
In 2020, William Smith, the board, and the family promoted one of Bill’s executive hires from CFO to COO and ultimately to CEO, the first non-family member to serve as the company CEO. This move was significant and important for the company’s continued growth and success and momentum built following the family’s management by his father, uncle, and now him.
The family planning moves were successful and Royal Cup Coffee continues to grow successfully. After transitioning from the CEO position in 2020, Bill Smith founded Double Iron Consulting to give back to the community and share his career experiences with other family business owners and leaders.
The Importance of Leadership
Leadership development is crucial in business, whether small or large. Below are some of the reasons why investing in leadership is essential:
1. Improves Profits
Good leadership can have a significant impact on the bottom line of a company. First, it helps to reduce team member turnover. A company with good leadership attracts and retains the best talent.
The company can save money by having a high team member retention rate. Secondly, good leadership improves team member productivity by around 36%.
Thirdly, good leadership improves operations. This can cut costs and make a company more profitable. Lastly, it improves work quality. The result is improved bottom lines and profitability.
2. Change Management
Change management is crucial in an organization. This is because significant changes can have a detrimental effect on the organization.
Fortunately, good leadership can help employees to absorb the shock and move forward accordingly. When the company has to lay off workers, good leaders can help employees understand that the change is not the end of the world and that they will be well compensated.