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Why Some Business Owners Avoid Being Leaders

May 16, 2019

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The Situation

“Adam” had a problem.

Previously, Adam was the manager of a business unit responsible for customising software for their clients’ unique requirements.

He was constantly frustrated by the firm’s attitude towards customisation, which was essentially “Don’t stray away from what we already offer”.

Adam realised his leader, the business owner, was too heavily invested in his own idea of what was needed by the clients.

Adam felt the ‘customisation offer’ was just a ruse to sell what was already there.

He believed his leader was a control freak who was prone to outbursts of unconstrained anger that contributed to a high turnover of staff.

Adam felt morally and professionally compromised.

He decided to leave and start his own business offering customised applications.

Adam’s diligent work attracted and retained delighted clients.

Soon he had to employ staff to cope with the workload.

For the first couple of years, whilst staff numbers were a handful, things went well.

They were a good team.

When the business grew more, with fifteen staff covering the range of functions that every business requires, Adam felt overwhelmed.

Things weren’t going smoothly anymore.

Staff were disagreeing.

Relationships became strained.

Customers started complaining about service shortfalls.

Adam was being asked to intervene in internal disputes, which he hated doing.

He decided to ask for help from an executive coach.

His coach investigated the business.

He spent time understanding where Adam had come from and got him to do a behavioural and emotional intelligence profile.

It was revealed that Adam was a great team member, hated conflict and was an introvert.

He admitted that he never wanted to be like the leader he had left.

In fact, Adam didn’t like the idea of leadership at all.

He believed everyone should just get on and do their job, like he did.

Why Leadership?

His coach asked, “Does everyone in any team always know what to do next, to ensure they are heading in the right strategic direction?”

Adam paused to think.  “I would hope so” he replied, clearly uncertain.

“Do plans need to change at times?” his coach asked.

Adam nodded “Yes, plans are a guide and shouldn’t be set in stone.  They need to be tweaked to deal with reality.”

“Who decides when, what and why a plan should change?” asked the coach.

“OK, I see where you are going with this.  Leadership is needed.”

“And can’t the leader also set the example of how we behave and work together?” prodded the coach.

Adam nodded.

“And can’t the leader take the responsibility to deal with unacceptable behaviour and performance whilst keeping trust and respect?”

Adam “OK, show me what I need to do to get ourselves back on track.”

Being a business owner, especially of a smaller business, requires the owner to ensure that effective leadership is present, or risk losing the business.

If the owner doesn’t enjoy or wish to be the leader, they can always appoint the right person to the role.

I have a client who is brilliant at winning contracts for his business in which he is the major shareholder.   He thoroughly enjoys the role of contract manager.

Instead of taking the formal primary leadership role, he has appointed another very competent person as leader.

It doesn’t mean he has no say.  In fact, the culture of the business encourages everyone to speak up if they feel they have some insight that can add value to the business.

Unfortunately, too many business owners aren’t proactive enough in ensuring that their business has effective leadership, whether by themselves or another appropriate and competent person or persons.

Some Reasons Why Leadership is Avoided

Those amongst us who seek to diminish or argue against the value of effective leadership are usually those who have had the unfortunate experience of an incompetent or rogue leader.

The primary reasons for business owners avoiding leadership are their fears, discomforts or ignorance.

Compromised Leadership

I’ve experienced a client who had a long relationship with many of her staff.  They were truly family friends, godparents to each other’s children.  They’d even holiday together.

This client was no longer running the business, the staff were and mainly serving themselves.

The client avoided wanting to ’hurt’ them or lose the friendship.

Despite my help and her acknowledging what she needed to do, she was unable to step up for fear of risking the friendship.

She denied that manipulation was taking place.

I told her that if she didn’t make the changes, the business had about 12 months life left in it and there was no point in me being her coach.

I was wrong.  It folded seven months later.

The reminder for me was that some people aren’t coachable.

Ensuring effective leadership of the business is the easiest and most powerful investment the business owner can make.

What is the state of your business’ leadership?

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