The Impact of Poor Leadership on Your Business

Poor leadership can have some devastating effects. Because a leader is more than just a figurehead.

Anyone who holds a position of authority has the responsibility of serving as the driving force that motivates team members forward towards a collective goal. This is why leaders are a valuable part of any business, because they are the ones who determine the pace and progress of work.

This is also the reason why poor leadership is such a liability. The actions of a poor leader can lead not only to missed targets, but damage relationships within the organization itself.

Let’s explore the impact of poor leadership. Spotting it early will help you to navigate your business in the right direction.

Loss of motivation to work

An article on the Community of Human Resource Management states that poor leadership can have a negative impact on the performance and morale employees.

Not only do they have minimal commitment to their tasks, but they also have no motivation to come up with innovations and new ideas that will aid the company.

Low company performance

According to AZCentral, the most direct impact of poor leadership is poor sales.

As mentioned in the previous point, employees can lose motivation when working under a poor leader, which translates to low productivity.

In the sales industry, sales staff may no longer take the initiative to hit their targets. This will have a direct impact not only on their individual performance, but also on the company’s overall financial gains.

Additionally, poor leaders do not fully maximize their staff members. They typically lack the necessary capacity to evaluate their employees’ strengths and weaknesses. Because of this, oftentimes these employees are assigned roles that don’t bring out their strengths—which is detrimental to the company in the long-term.

Lack of transparency and ownership

A good leader is able to instill the value of ownership to his or her team members.

A bad leader, on the other hand, makes people apathetic about taking responsibility over their own roles within the company. They also have a tendency of failing to be transparent to his or her employees.

Menlo Coaching believes that honesty is an integral trait of a great leader. Part of this involves self-reflection on their contribution to how a situation ended poorly. Employees act on the traits of their leader. If they see that their mentor is unable to admit even to himself/herself about their own role in the failure, then they might take this as a license to do the same thing.

Mismanaging resources

Human resources is not the only company resource affected by poor leadership. It can also affect the other elements as well. Career Trend points out that time and expenses are also wasted due to poor leadership. For instance, a lot of time ends up getting wasted in order to correct the wrong calls made by a bad leader.

Negative workplace environment

Poor leadership, combined with low morale, will create a negative workplace environment. This means that even workers who were not originally affected by the initial issues can become “infected” with the low morale of some of the staff who are feeling inspired.

The low morale can gradually spread to all areas of the company, which can be extremely detrimental to the company.

Evaluating Poor Leadership

There is no room for poor leadership in your organization. If any of the above resonate, we highly recommend taking a step back. Spend some time to re-evaluate and create a plan to resolve the disconnects.
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Author Biography

The Impact of Poor Leadership on Your BusinessBefore becoming a blogger, JenOnTop worked in human resources, where she was exposed to different kinds of people. Aside from writing, she consults on employee development and management. Watch out for her own blog soon!

By | 2017-08-14T13:31:52+00:00 August 15th, 2017|Sales Leaders|0 Comments

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