The four leadership principles that directly impact business results

The four leadership principles that directly impact business results

A few years ago, the multinational SAP published the financial impact of employee engagement and turnover. The figures given, taking into account its global company size, are as follows: each percentage point of improvement or deterioration of the commitment indicator has an impact of between 35 and 40 million euros; while each percentage point of turnover has an impact of between 40 and 50 million euros.

“Faced with this situation, it seems pretty obvious that organizations that have good leaders will grow their business more effectively and sustainably over time. And for organizations to have good leaders, they need to consider four fundamental principles, ”he says. Ignacio Mazo, Director of Leadership and Coaching at BTS. He added: “These are the result of the experience and analysis of studies and research that we have carried out in recent years, and reflect a way of approaching the processes of development of leadership capacities in organizations.

The first principle is that leadership must be immersed and consider the economic model of the organization. Although there are common aspects, the characteristics, attributes and / or capacities of leadership must take into account the type of company, the strategic moment and the culture of each organization. The evolution of techniques, tools and concepts must be taken into account to adapt them to the reality of each moment and each company.

A second principle is that leadership is demonstrated in the moments and doing well in the critical moments and taking advantage of it is what makes the difference and really has an impact on the business. Mastering leadership skills is not easy. Knowing how to apply them is difficult. Doing so at critical times is vital. For this reason, the development of leadership capacities must be done by identifying the times when it is essential to manifest, demonstrate or practice the behaviors associated with leadership capacities. For example, it’s not just a matter of knowing how to give feedback, but of doing it at the critical moment when giving feedback will enable action that makes a difference. Crucial moments are common moments in the daily life of the company, but they must be identified, because they are the moments when doing one thing or another, behaving in one way or another, makes the difference. difference between succeeding or not succeeding in the objectives and therefore the respect or not of the business plans. “To establish a better relationship between leadership capabilities and business results, it is essential to identify critical moments and work on the behaviors, which must be manifested there,” says Ignacio Mazo.

The third principle refers to the fact that in order to adopt or change a behavior, it is essential to understand the underlying mentality that causes it. “Mentalities are universal”, this statement is based on research conducted with the University of Singapore, based on the analysis of more than 120,000 coaching conversations, which have identified 33 mentalities, which have appeared to many repeated in these conversations. If the leadership capacity development processes or initiatives do not respond to the underlying mindset (s), there will be no impact as no behavior change occurs. It is very important to know the state of mind with which leaders approach moments, and how it has been generated throughout their professional trajectory, and to identify the changes of state of mind necessary for them. desired leadership behaviors come to life.

The last principle, also based on scientific evidence, people learn best from and with others. For this reason, and although digital learning is very important and there are quality content and tools, the human factor remains essential and cannot be substituted. Leadership capacity development initiatives and projects should combine face-to-face or virtual learning experiences with other people, digital content accessible at appropriate times as part of daily workflow and application activities that make it possible to generate lasting impacts.

“In short, ignoring these principles is probably an invitation to failure and frustration. Without them, development initiatives will not yield results, ”concludes the head of the BTS.

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