Five challenges of business leadership (and how to overcome them).

Who are the business leaders of today?

Gone are the autocratic leaders of the 20th century, leading with an iron will and single-minded vision. Largely gone, too – or so I’d hope – are the authoritarian micro-managers rendered inept by the fast pace of technological change and the growth in knowledge workers.

The business leaders of today don’t have a single style, but wear many hats. They need to inspire a company, challenge employees, have highly developed interpersonal skills, business acumen, and shape the strategic direction of the organisation they lead.

Even if you don’t see all these qualities in yourself, it’s likely you’ve utilised them in some capacity over your business career. And it’s just as well. The challenges for business leaders ahead demand varying and complex skills that come from all of these areas.

Managing change

If there’s one certainty that has come out of the last ten years of business it’s that the global business world is in fact uncertain, volatile, and increasingly in flux.

Change can be an enormous challenge for businesses, provoking emotive responses from employees, corrupting old ways of doing, and sometimes inspiring a fear of the new among your workforce.

I’ve previously written on how to create change, but not how to guide it. I think the number one way to overcome this challenge is to recognise and embrace the emotional side of change – disruption and unfamiliarity – and use it as a moment to create a new direction, focus and energy for your company.

It isn’t enough that there’s a rational business case for change when it happens. An organisation needs to be actively countering any of the negative ripples (among employees or management) created by change. This starts and ends with a business leader’s vision.

Create a positive narrative and harness the energy of change for the future momentum of your company.

Inspiring others

You don’t get the best from employees with a great wage or rewards program (though that can certainly help!) What galvanises someone to give their top effort is passion – and often that needs to be ignited by a business leader.

I think the primary thing any business leader can do to inspire others is be inspired themselves. I’m sure you can think of people in your life or past who’ve been brimming with enthusiasm for something – and have experienced how infectious that enthusiasm can be. That’s the attitude that you need to bring to your business, and it starts with believing in what your business does and how it can improve the lives of others, however humbly.

But be wary – unbridled enthusiasm without a focus will produce much heat but little light. Couple your energy with a vision for the company, a narrative which both management and employees are working towards, to keep your business travelling in a clear direction.

Not all businesses lend themselves to grandiose ideas about helping others as readily, though, which is why I think a corporate social responsibility program is another method of stoking passion in your organisation’s work environment and helping employees feel like they are making a difference – a vitally important emotional reward for employees.

A truly global market

Of all the challenges business leaders face, this may be the most disruptive and difficult to navigate. In one sense, the ideas of change management and galvanising employees discussed above are continuing difficulties traversed by leaders in the past and into the future.

But globalisation is a different game altogether. Coupled with the internet, it redefines business boundaries and customer expectations. Customers are socially connected, well-informed digital citizens with diminishing loyalty to any brand or product. And the field of competition is increasingly a global one.

For example; Uber, the world's largest taxi company owns no vehicles. Facebook, the world's most popular media owner creates no content. Alibaba, the most valuable retailer has no inventory. Airbnb, the world's largest accomodation provider owns no real estate.

Though globalisation represents a significant force of upheaval, I don’t think businesses need to rewrite the rules from the ground up to counter it. But business leaders have to be open to innovation and the newest technologies – especially social digital platforms, on which current (and vast numbers of potential future) clients are interacting.

You also need to be constantly across what your business is offering and what the competition are offering too – as this information is now typically readily accessible to potential customers through the internet to instantly compare and evaluate. Reputation as a commodity is seeing an exponential rise in value.

The politics

Though many complain about it and some ignore it altogether, businesses have an inherent political aspect to them. The determinant of your success at work is not just how much work you do for the company, but also includes intangible aspects of performance including interpersonal skills and your ability to balance and influence key stakeholders.

There is nothing to gain from being wilfully ignorant of the reality of political business. I’d advise you to be aware of the way your organisation works and the needs, wants, and goals of the different stakeholders that play within it. And this is not about any pragmatic or cynical interpretation of the politics and how you can play them to your benefit. By improving your political savvy and understand what others want – essentially the skill of empathy – you can improve outcomes for all stakeholders involved in your business and the company itself, not just your own objectives.

Aside from this, be genuine and maintain integrity in your business dealings. Keep promises. Leave good impressions. Presenting and behaving well towards others is really the best way to accumulate any “political capital” in a business environment.

Developing employees

The nurturing of your employees for the future demands strong interpersonal skills and leadership – knowing when to intervene and assist employees, and when to stand back and let things take their course.

I’ve written on this point before, and I think some of the same ideas there apply here – developing employees is a challenge that can be overcome by employing empathy and understanding for what makes different people tick and what they want to get out of work. Advocate for, respect, and give responsibility to your employees and this obstacle will be easily overcome.

These are just some of the many external and internal challenges faced by business leaders the world over, and my limited insight into them. Looking to the outstanding performers in your industry or field, and what the top businesses are doing, can further aid in overcoming business obstacles into the future.