In our experience as business coaches, we’ve witnessed firsthand the transformative power of people-oriented leadership, especially for SME business owners.
In this blog, we want to explore the benefits that people-oriented leadership brings, as well as how it differs from other leadership styles, to help you bring some of this style into your own approach.
Let’s begin by distinguishing between a manager and a leader—two roles that, though related, have distinct focuses and differences.
Leadership vs. management: a nuanced distinction
While a manager excels in efficiency and task-oriented processes, a leader is someone who inspires, motivates, and develops the potential of individuals within a team.
In the dynamic world of business, the distinction between leadership and management is crucial. Management is about dealing with complexity, ensuring tasks are completed efficiently and resources are optimised.
On the flip side, leadership is about navigating change, inspiring others, and fostering a shared vision. As a business coach, I often stress the need for SME business owners to balance these roles, understanding that effective leadership is the catalyst for organisational growth.
As an SME business owner, you will likely take on both roles of the leader and manager. Therefore, not only do you need to have the skills in both areas, you need to be able to navigate between the two depending on the situation and ensure your team know which version of you they are getting!
People-oriented leadership for SMEs
For SME business owners, where decisions impact on every level, effective leadership is not just an asset; it’s a necessity.
We’ve found that SME owners often wear numerous hats, from strategic planners to hands-on team motivators. Leadership skills, therefore, become the linchpin that influences team dynamics and shapes the trajectory of the entire business.
Unpacking people-oriented leadership in SMEs
What does people-oriented leadership look like in the context of SME business owners?
It’s about cultivating a leadership style that places a premium on relationships, open communication, and the growth and well-being of team members.
Creating a positive workplace culture, where individuals feel heard, valued, and motivated to contribute their best, is key.
Active listening: the cornerstone of people-oriented leadership
One of the foundational elements of people-oriented leadership is active listening.
As an SME business owner, engaging genuinely with your team members is critical. Understand their concerns, ideas, and aspirations. There are lots of online guides and tools to help you develop an understanding of what active listening is, but the proof is in the practice.
It is about truly listening to the verbal and non-verbal cues in order to comprehend and emphasise. Too often, we listen in order to respond to them, rather than focus on what is actually be said.
Active listening builds trust, confidence in you and establishes a foundation for effective communication within the team.
Recognition and appreciation: fuel for team morale
Acknowledging and appreciating the efforts of your team members is akin to providing fuel for their morale.
Regular recognition programmes, like performance review meetings, can celebrate achievements and milestones, fostering a positive atmosphere within the workplace. But you shouldn’t wait for these milestone moments, a simple thank you and regular check ins can be enough.
Investing in professional growth: a win-win proposition
A people-oriented leader invests in the professional development of their team.
As an SME business owner, creating opportunities for learning and growth not only benefits individual team members but also aligns their aspirations with organisational goals. This investment in professional growth is a win-win proposition, fostering a motivated and skilled workforce that contributes to the overall success of the business.
When times are tough, learning and development budgets can often be the first line item to be cut or reduced but if you don’t invest in your team, motivate them or feel able to effectively delegate to them (which is in effect development training), how can your business progress?
Building a collaborative culture: strength in unity
Fostering collaboration within SMEs is paramount.
A people-oriented leader creates an environment where team members feel comfortable sharing ideas and working together toward common objectives. Encouraging open communication and collaboration not only enhances problem-solving but also nurtures a sense of unity and shared purpose within the team.
In the same way as you wear many hats in your business, a small team will likely need to chip in and support outside of their main operational area. Collaboration and finding ways in which your team can work together effectively, including handling disagreements and conflict, can make or break your team!
Taking the first step toward transformative leadership
In a world where leadership is continually evolving, embracing a people-oriented approach, it gives you and your business a strategic advantage.
Team management is one of the three main areas many owners find challenging, and in any situation where that is the case, the best solution is to ask for help from an expert.
If you would like some support with unlocking the full potential of your team and business—schedule a complimentary, no-obligation business review with us.
Together, we’ll figure out the nuances of your organisation, identify areas for growth, and chart a course for transformative leadership through meaningful and results-driven business coaching.
Schedule a call with me by clicking the link below, and let’s unlock the true potential of your leadership and business.
