According to the latest report by KPMG, the number of startups in India has gone up from 7,000 to 50,000 in a decade. And according to a report by IBM Institute, 90 percent of startups in India fail within 5 years of their inception. So, what is the reason? It is the lack of leadership skills in business owners and leaders.
To fill the gap, startup owners and leaders should appoint professional HR companies for leadership development. This would help startups refine their work environment and consistently propel forward since good leadership has a direct impact on productivity, employee motivation, employee engagement, employee turnover and innovation.
Wondering where to begin change? Start with these common practices of successful leaders:
1. Practicing Clear Communication
Transparency fosters trust. And transparency in a business is only possible when everything from goals to challenges is communicated clearly. Effective communication skill is one of the most important leadership skills since it allows showcasing the project in the same light as the business owner or leader sees it. This inspires passion in the employees. Here are a few things you must know about business communication:
• Instructions and explanations should be clear and detailed.
• Use of gestures and expressions results in clarity.
• Active listening makes two-way communication effective.
• Public speaking and presentation skills are a major part of effective communication skills.
2. Staying Humble and True to the Employees
While being modest is a great quality to have, it is an essential trait of successful business owners. In an excellent book by Jim Collins, Good to Great, the top level of leadership is represented as ‘Level Five’. And Level Five leaders never take complete credit for an accomplishment.
Humility, however underrated, is one of the most important soft skills essential for growth. It builds trust and strengthens relationships, which is especially important in a startup. Here are a few characteristics of a humble leader:
• They focus on the needs of the people around them.
• They own up to their mistakes.
• They value feedback and insights from others.
• They are the same in every situation and with everyone.
• They respect everyone irrespective of the position.
3. Delegating Better
Often, leaders find it easier to complete a task themselves rather than taking time to assign it to someone else. What many fail to understand is that delegating work to others helps in leveraging themselves and multiplying their value to the company. Hence, a good leader must be able to gauge the task-relevant maturity of the employees and assign work accordingly. Here’s what to do before delegating responsibilities.
• Establish a priority system.
• Identify the strength and competencies of your employees.
• Give clear instructions.
• Conduct training sessions if needed.
4. Creating an Upward Feedback System
360-degree perspectives are important for every startup. And since employees work at a more functional level, insights and feedback from them can help derive solutions to even complex business problems. However, soliciting honest feedback is a challenging task. As a business owner or leader, you must create a comfortable environment for employees which would encourage them to share.
Here are a few benefits of an upward feedback system:
• Employees feel valued, and hence, they perform better.
• Upward feedback results in increased employee retention rate.
• It also results in reduced employee turnover.
• More perspectives result in better innovation.
These were some sure-fire leadership practices that bring order to any work environment. Don’t leave the success of your startup to fate; begin today with a small step at a time. Seek professional help and leverage your potential.
Author Bio: Liliana Chitnis
Liliana Chitnis is a former HR professional who now works as a content marketing executive at NamanHR, an organization that offers end-to-end HR solutions to help companies build a strong human capital base. She strongly believes in the power of consistent training in the workplace. Liliana writes about various topics related to human resources and shares trends, techniques, and tips with her readers. She loves to read and practice yoga regularly, and occasionally binge on Netflix.