Businesses today, need people capable to respond to technological, social and economic challenges, as well as, leaders having a charisma to stand out and to inspire devotion to others. The effective business leader is a person that everyone follows at their will, as opposed to the managers who employees most often have to obey. It is not an obligation for a business leader to have experience, but it is essential to have ideas and to visualize the future of his business. Additionally, an effective business leader motivates his employees, in order to inspire them, to do their best to achieve personal and corporate goals. Organization of human resources management, by an effective business leader, requires passion and awakening of emotions.
Business leadership is a bidirectional relationship between the leader and the members of the business team. The leader alone is not adequate for the implementation of tasks and the effective operation of the business. Entrepreneurship plays an essential role, combining productive factors (labor – land – capital), in order to lead business to profit. This is done through innovative business plans based on the ethic of the leader. The successful business, in order to become a real market power, requires a leader who will inspire all the related factors (not just employees, but also external partners, financiers and customers) and lead the business to its viability.
Especially today, the ethical leader is a source of value for the business. In the prolonged period of crisis, it is increasingly imperative to redefine the values that guide the actions of business leaders because of the appraisal of the requirements and expectations. Business need to demonstrate consistent positive economic results in a recession, in a moral context that guarantees the firm’s stability, in order to achieve social and moral acceptance. Every time that a business leader is facing a dilemma, he will not only choose to do what is right, but he is obliged to do it in the right way. The leader owes to have clear personality values, to be fair, honest and trustworthy with communication skills and finally to care about his team.
A key factor for Business Management should be how creativity is linked to Business Leadership. The leader has to prove that is innovative for himself and his team in order to achieve the business’s objectives. Creativity is characterized by the ability to produce something new, fresh as a service, as a product, as a new form, is however the source of innovation, a very important skill. A creative leader proves his ability whether it collaborates, communicates, develops an organization’s vision and solves important problems, or even negotiates with its partners, employees, customers and competitors.
Creative business leaders work with their instincts, focus and embrace, are imaginative, accept critical, seek progress, balance themselves and their team, and motivate people / employees without being afraid to operate outside the ‘established framework’. Creative leaders are passionate visionaries, anxious for new ideas, linking seemingly unrelated things to one another. They reach the right people at the right time for a project. They allow their team to be more creative by setting an example. In addition, the creative business leader owns to be:
- Guide & Inspirer
- Teacher & Student
- Good Manager – administrator (human but also financial, legal, social and technological affairs)
- Effective & Substantive
- Successful public relations – demonstrate the good face of the business/company/enterprise
- Be aware of current trends / changes
- Understanding of markets & societies
- Transform creative ideas into new products and services
- To work through critical thinking because his mind is constantly in a creative process
The business leader must be a transformer, ensuring that the vision of the business is clear, comprehensible, accepted by everyone, in accordance with the values and needs of the local community and business community. He must be able to direct, mobilize, inspire, activate and control human resources, with substantial participation in the objectives and the desired results. It is essential to motivate employees to realize their potential by making the most out of them, so that the business can offer the maximum for its customers, employees, shareholders and society. Key features of the contemporary model of financial management and business management – beyond leadership – are the following:
Strengthening individual initiatives.
- Enhance responsibility. Educate and develop the right people, who do not hesitate to take responsibility for the outcome.
- Transfer of powers and responsibilities to executives to make immediate, effective decisions.
- Structure and organ gram composition.
- Coordination, with the aim of providing value to customers and meeting their demands in real time. Each department of the business (accounting, technical, and logistics, marketing and sales) must be responsible for its results, without the need for close central control and supervision.
- Evaluation tools for predicting Business Performance Management.
- Utilizing resources and finding new funding.
- Incentives, material and ethical reward (extra money as a bonus for achieving goals).
This will upraise the performance of individuals and groups, so that one will motivate the other.
In conclusion, studying the role of business leader of any business or organization, private or public, obviously cannot and should not be detached from the economic, political, social, and technological framework, in which it operates. A person’s eligibility for a leader’s position depends on five key questions regarding his or her personal orientation, directly affecting all manifestations of his or her business leadership performance:
- To what extent he is active rather than sluggish.
- To what extent he is acting decentralized and not centralized.
- To what extent (wants to) operates advisory and democratic rather tan authoritarian.
- To what extent he is preventing crisis, rather than dealing with them once they are created, and finally.
- To what extent he is primarily focused on the training and development of human resources, rather than simply dealing with procedures and regulations.
In general, the determinant factor of growth and progress for a business is the quantity and quality of the leadership that proves and the ability to synchronize and operate collectively.