Entrepreneurs often focus on developing innovative ideas and creating startups. However, organizational leadership is a key skill that every entrepreneur needs to manage a successful company that grows over time. If you are interested in leading a company, then consider studying organizational leadership.
What Is Organizational Leadership?
Organizational leadership is a type of management approach that focuses on motivating people and bringing the best out of a team while achieving a company’s goals. According to Maryville University, it requires a mix of human resources, business, psychology and leadership skills.
Effective organizational leadership requires collaboration with a strong work ethic. You also need to have critical thinking and problem-solving skills because people will turn to you for answers when problems appear. Managing conflict, dealing with people’s egos and creating real changes are essential tasks for leaders. All of these skills are necessary for entrepreneurs who want to be successful.
Understanding the Difference Between Management and Leadership
Although there are similarities between managers and leaders, these roles are not the same. A manager usually has to complete tasks on time and make sure others follow orders. However, a true leader does all of this while inspiring others to do their best and setting an example. A leader always makes sure that a company’s mission and goal are at the forefront. Leaders have long-term plans and visions for the company that managers lack.
If you want to be an entrepreneur, it is not enough to be a good manager. You have to be an effective leader, and getting a degree in organizational leadership is one way to achieve this. Leaders create the overall strategy for a business that managers and other employees have to follow.
Organizational leadership centers on good communication between the leader and followers. Entrepreneurs who have trouble conveying their ideas to others will struggle with running any organization. This is why being able to communicate your vision clearly is crucial.
Organizational leadership also fosters strong communication between departments and people in various roles. If an entrepreneur wants to build a strong startup, then he or she has to eliminate silos and make it easy for everyone to share ideas without feeling overwhelmed.
A good leader knows how to handle fragile egos and conflict when it appears. This is where a strong understanding of psychology and personality types is helpful. For instance, the Myers-Briggs Type Indicator (MBTI) is a personality test that many entrepreneurs take themselves and require that their employees take, so they can understand each other better. Another popular test is the Riso-Hudson Enneagram Type Indicator (RHETI). Understanding personalities leads to better communication, faster decisions and fewer arguments.
Although many entrepreneurs are multi-talented and can handle different tasks, as a company grows, it becomes necessary to hire more people. The CEOs of startups will not be able to handle sales, management, hiring and accounting on their own as their businesses expand. However, simply hiring more people is not enough. You have to offer them support such as training and ongoing motivation. People who study organizational leadership acquire these skills.
Good leaders offer support in the right way without being too intrusive or overbearing. They are willing to listen when it is necessary and capable of giving advice at the right moment. They do not punish employees for small offenses or wrong decisions. Instead, they understand how to support them, so mistakes happen less frequently. They also work with them to correct mistakes instead of yelling.
Sharing the Limelight
Entrepreneurs are often in the spotlight as they give interviews, attend conferences, talk on podcasts or win awards. However, organizational leadership teaches them to share the limelight with others. For example, when entrepreneurs win awards they make sure to mention the team that was behind the success. They will name specific people at the company who also deserved recognition. They acknowledge how much the contributions of others matter to them.
Building an Organizational Leadership Toolbox
One of the key concepts of organizational leadership is equipping people with a toolbox that they can use in the future. This is a metaphorical toolbox and not a physical one. It is not filled with screwdrivers or hammers. Instead, it has skills and knowledge that leaders can use when they face a problem or change. The toolbox can include things such as problem-solving skills and conflict resolution ideas. It can also include other leaders who serve as mentors and books for guidance. Soft skills such as a positive attitude, strong work ethic, confidence and acceptance of criticism can also be a part of the box.
Entrepreneurs who want to find success and create a legacy can benefit from studying organizational leadership. It can teach them how to become a strong leader with a clear vision for their business and future.