5 Ways Poor Leadership Impacts Your Business

scott morrison interview with anabelle crab with caption of him saying "I've learnt not to care"

“The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands at times of challenge and controversy. The true neighbour will risk his position, his prestige, and even his life for the welfare of others. Where do we stand as leaders? Do our leaders stand for the welfare of others through this difficult time?” – Dr Martin Luther King Jr.

Impact of a Leader that does not care

Leaders who don’t care for their team members are adding tremendous costs to their organisation. And most often, it is the people on the front lines who are blamed. Additionally, they are blamed for being disengaged, for low productivity, and for lack of loyalty (that is, turnover).

The most direct result of poor leadership is poor Sales. And as we know, in the Sales industry low productivity means missed targets. Consequently, this has a direct impact on a Salesperson’s individual performance and KPI. But more so, on the company’s overall financial gains.

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Effects of Poor Leadership

Poor Leadership has devastating effects on any team but particularly on a Sales team. Why? Because a Leader is so much more than just a figurehead. Ultimately, a Leader has a massive impact on the core belief system of the wider team.

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Anyone who holds a position of authority has the responsibility to ensure all team members are working together towards a collective goal.

Leaders are a valuable part of any business because they determine the pace and progress of work. However, compassion and understanding while striving towards these goals have never been more important.

Based on that, poor Leadership becomes a massive liability. Many are of the belief that Leadership is “so easy”… all you have to do is tell others what to do. But that thinking is quickly quashed when faced with the reality of leading.

The actions of a poor Leader is more than missed targets, it can destroy the entire culture of a company.

Poor Leadership can bring down the entire organisation single-handedly.

Now we don’t know what we don’t know. But once we are made aware, it is up to us as Leaders to adopt change and grow. Grow from our experiences, grow from what we are being told, grow from our mistakes. Poor Leaders can change – if they want to!

Spotting poor leadership early will help you to pivot in the right direction. Here are 5 Ways Poor Leadership Impacts Your Business.

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1. Loss of Motivation to work

Poor leadership can have a negative impact on the performance and morale employees.

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Ultimately, commitment levels will plummet, and there will be little to no motivation to attend to their tasks. Additionally, employees will have no creative energy, or desire, to come up with innovative ideas. Their drive to contribute to company growth will wane and eventually expire.

2. Poor Sales Performance

As mentioned, one of the most direct results of poor leadership is dwindling Sales. Adding to point number one, employees will lose all mojo to perform their best if they feel their Leader is lacking in interest. And in Sales, poor performance ultimately means missed KPIs and low productivity.

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Also, poor leaders do not fully maximise their staff members. They typically lack the necessary capacity to evaluate their employees’ strengths and weaknesses. Because of this, these employees are assigned roles that don’t bring out their strengths. This factor alone is detrimental to the company long-term.

3. Lack of Ownership and Transperancy

A strong leader is able to instil the value of ownership across all departments to each employee. On the other hand, a bad leader makes people feel indifferent to taking responsibility over their own roles within the company. Subsequently, a Leader’s “I don’t really care” mentality trickles down to all employees.

Poor leaders also have the tendency of failing to be transparent to their employees. The KONA Group Coaching Program teaches and believes that honesty is an integral trait of a great leader. It is core to the Leadership framework and is top line in the development of Leadership Charters.

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4. Mismanaged Resources

Sales is not the only company function impacted by poor leadership. It can affect others as well. Time and costs also suffer as a result of poor leadership. Put simply, a lot of time ends up getting wasted correcting the wrong calls made by a bad leader or a mismanaged employee.

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5. Poor Work Culture

Poor leadership, combined with low morale, will create a negative workplace environment.

This means that even workers who were not originally affected by the initial issues can become “infected” by this negative environment.

This low morale gradually spreads to all areas of the company. Remember, the trickle down affect of poor leadership?

Evaluating Poor Leadership

There is no room for poor leadership in any organisation. What is the quality of the Leadership in your company?

If you are a Sales Leader, take time to reflect on how you can challenge your own ideas about what it means to be a great Leader. Moreover, actively work to ensure that you are enabling your team to be as effective as possible.

Also, take a step back and think about KPIs impacted by Leadership. This includes turnover and growth. Is turnover high? Are new employees leaving after a short tenure? Are tenured employees leaving after years of loyalty? These types of questions may open some uncomfortable doors but are so important for both your growth as a Leaders (and person), as well as employee and company growth. Analysing your own Leadership ability and that of your peers enables your company to recruit effectively, as well as retain those very employees that make your company successful.

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For more information about Leadership Training and Coaching, contact us to invest in your growth, on 1300 611 288 for a confidential conversation, or email info@kona.com.au anytime.