Lately, I’ve been observing behaviors of companies. Mostly, I’ve been observing companies I’m involved with, including two of my own entities and several clients. Specifically, I’m paying attention to leadership. And the conclusion I’ve drawn is no surprise: the success of a company is directly dependent on the strength of its leadership.
I’ve always heard that investors invest in team first and product second. Makes sense. A strong team, with strong leadership, will figure out a way to make amazing things happen.
What’s been interesting is to observe a couple cases with poor leadership. In one case in particular, the leadership is basically non-existent and has been for quite some time. It is breaking this company but doing so in a slow, painful way. Poor leadership is digging a deep, deep hole. The poor leadership, or in this case lack of leadership at all, is creating anarchy within the ranks of the company. Employees have been loosely assigned to certain areas of responsibilities with no one providing knowledge and oversight. It’s interesting to watch and discouraging to be a part of it, especially when we are interested in implementing positive changes to help get the company back on track.
One other case I’ll briefly describe now has decent leadership in place. From a distance, I would have told you this company had better than average to very good leaders. And generally speaking, the employees respond in a positive manner. They are usually smiling and happy to be part of the venture. As we have gotten more involved, we are starting to observe the leadership may have a few limitations. We can foresee leadership needs in the not to distant future for this company and will delicately broach this topic with them.
A company will succeed or it will fail based on the leadership.