Are leaders born, or made?

Both- with the right business tools

        Are leaders born, or made? Is leadership a function of nature, or nurture?

       The answer is both. Some people are born leaders. But which ones? And how will they show their leadership colors unless they are placed in the right environment?

       These questions are at the heart of strategic leadership planning for most companies, large and small.

       If you don't have a contingency of leaders on staff and others primed to step up into leadership roles, you will undoubtedly find yourself way behind the pack. Nurturing leaders takes more than luck or intuition.

The right tools for the job

How can your company identify a leader? Not by a resume or an interview. Research shows that 98% of resumes contain some form of fraud, deception overstatement or misleading claim.

       Most employment interviews are cosmetic and can be manipulative. You may already have many leaders within your company but don't recognize them as such. In some cases a company leader will surface only during a crisis. The key is to identify these leaders before a crisis occurs. Any employees with leadership potential who have not been identified for their capabilities early on have been cheated out of using all of their talents. Conversely, the employer has lost a huge opportunity to benefit from those talents.

Creating leaders requires an effective system

         Today, employers are looking for a more systematic means of identifying leaders to play key roles in their companies.

       "You can have a vision, but if you don't have the road map or the tools you can't get where you want to go, and you can't lead. Managers need leadership tools that give you the facts, with clarity," said John King, president of the statewide Roster Network, an alliance of professional-services firms. When King talks about clarity he's referencing several systematic leadership tools including Activity Based Costing and Activity Based Management, ISO/QS Certification and Business Efficiency Testing. All of these systems provide the employer with the clarity to better understand where their business is going, or should be going. Another tool, called the Position Matrix, provides a clear picture of what employees are doing (or should be doing)!

  Beyond visionary charisma

         "Leadership is more than being a visionary and having charisma," King said. "After you share your vision and show off your charisma, then what? You need tools to identify leaders, train them and hold them accountable."

Many companies encounter problems because they lack performance measurements and documentation on which to base key leadership decisions.

       "Some companies are selecting people based on subjective criteria and throwing them into assignments with little direction and no accountability. That's like the sand-lot baseball games we played as kids," King said.

Just as in sports, business teams that select the best players and give them the best tools will win. It begins with tracking your progress against your competition.

Keeping score with Business Efficiency Testing

         Do your local competitors pay more than you for raw materials? How long do they wait for payment from vendors, vs. your own cash flow? Do they pay higher or lower salaries than you? These answers can be obtained through Business Efficiency Testing, a process that gathers competitive cost data to give you a benchmark for your own company's performance.

       "The data is easy to obtain and can be priceless," King said. For example, if your competitors are getting a better deal from the same suppliers, you'd like to know that. Likewise, if you are underpaying or overpaying people in similar jobs, you need to know that too.

Tying employees' goals to their supervisors' goals

       So Business Efficiency Testing is a good way to keep score and step out of Sand-Lot Business. Another tool is the Position Matrix, which provides employees with clear job descriptions and ties their performance goals to the goals of their supervisor. "That's crucial. When every employee is working on goals consistent with the goals of their supervisor, throughout the organization, you've got real momentum to get things done," King said. "That's how you make a vision a reality."

       The process also has built-in performance mechanisms to identify potential leaders and give them goals to demonstrate their potential. The system is at work in literally thousands of companies today and has been continually refined and enhanced.

       There will continue to be a lot of Sand-Lot Businesses in the future, but for business leaders to stay competitive, it will take a lot more than making decisions on the fly. It will take empowered employees with phenomenal leadership skills, and the winners will be the companies that have the better tools!

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