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6 Ways Poor Leadership Impacts Your Business

December 4, 2019
6 Ways Poor Leadership Impacts Your Business

Poor leadership can have some devastating effects on your team. That's because a leader is so much more than just a figurehead.

Anyone who holds a position of authority has the responsibility to ensure all team members are working together 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.

But poor leadership is a huge liability. The actions of a poor leader lead not only to missed targets, but can also damage company culture.

6 Ways Poor Leadership Impacts Your Business

Let’s explore the potential impact poor leadership can have on your business. Spotting it early will help you to pivot in the right direction.

1. Loss of motivation to work

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

Not only will they develop a minimal commitment to their tasks, they'll also have no motivation to come up with innovative ideas or contribute to company growth.

2. Poor sales performance

According to AZCentral, the most direct result 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 (or, lack thereof).

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 long-term.

3. Lack of ownership and transparency

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 feel indifferent to 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.

4. Mismanaged resources

Sales is not the only company function impacted by poor leadership. It can affect others as well.

Career Trend points out that time and expenses are usually 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.

5. Poor work culture

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 low morale.

This low morale can gradually spread to all areas of the company, which can be devastating.

Evaluating Poor Leadership

There is no room for poor leadership in your organization.

If any of the points above resonate with you, we highly recommend you spend some time re-evaluating time and create a plan to resolve the disconnects.

eBook – How to Develop a Healthy Sales Culture

If you are a CEO, VP of Sales, or a Sales Manager, developing a healthy sales culture is of utmost importance.

In fact, we'd argue that it is the MOST important part of your business.

Why? Because people are the most important asset that your company has.

Ready to make your company the BEST place to work? Click on the image below to discover the 8 steps you'll need to develop a healthy sales culture in your organization.

Free eBook: How to Develop a Healthy Sales Culture

Author Biography

The Impact of Poor Leadership on Your BusinessBefore becoming a blogger, JenOnTop worked in human resources, where she helped resolve company issues and worked closely with a variety of people. Aside from writing, she consults companies on employee development and management. Watch out for her own blog soon!

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