Rajesh Soundararajan on LinkedIn – https://www.linkedin.com/in/rajeshsound

When building a successful business, the age-old question arises: Are good leaders the key to building good companies or vice versa? The answer, as it turns out, is a bit of both.

A case for ‘it depends’.

Good leaders are essential for any company because they set the tone for the entire organization. They provide direction, set goals, and inspire their employees to work towards a shared vision. Good leaders also create a positive work culture, which is crucial for employee engagement and satisfaction. A good leader will also be able to navigate the company through difficult times and make tough decisions that will benefit the company in the long run.

On the other hand, good companies also play a vital role in developing good leaders. A good company will provide opportunities for employees to grow and develop their leadership skills. They will also have systems in place for mentoring and coaching, which will help to develop the next generation of leaders. A good company will also have a clear vision and values that align with the leader’s, which makes it easier for them to lead the company in the right direction.

A case of how leaders built companies –

In my view, I tend to believe that good leaders make good companies. While good companies may attract good leaders or groom some, ultimately, it is the leadership at the top that sets the direction and tone for the organization. Good leaders have the vision, drive, and ability to make tough decisions that will benefit the company in the long run. They also create a positive work culture, which is crucial for employee engagement and satisfaction. This, in turn, leads to a more productive and efficient workforce and, ultimately, to a more successful company. While a good company can certainly provide opportunities for employees to grow and develop their leadership skills, it is ultimately the leader that is responsible for leading the company to success.

One great example of this is Amazon. Jeff Bezos, the founder, and CEO, are widely considered one of the best leaders in the world. He has set a clear vision and values for the company and has created a culture of innovation and customer focus. This has allowed Amazon to become one of the most successful companies in the world.

Another example is Apple; under the leadership of Steve Jobs, the company was able to create a culture of innovation, design, and focus on customers. He was able to lead the company through difficult times and make tough decisions that ultimately led to the company’s success.

Yet another example of a leader who has had a significant impact on their company’s success is Elon Musk, the CEO of Tesla, SpaceX, and Twitter. Musk is known for his ambitious vision and ability to think outside the box. He has led Tesla to become one of the most valuable car companies in the world and has revolutionized the way people think about electric cars. Additionally, his leadership has also led to SpaceX becoming a leader in the private space industry with its reusable rockets and satellite launches. Even with Twitter, much as there have been different views on style, clearly, Twitter today is a lot more agile and a lot more shipping new stuff than the sumber it was in for almost 7-8 years.

Musk has also implemented a unique management style in both companies, where he sets very ambitious goals and encourages (pushes ;)) his employees to work towards them. This approach has led to rapid innovation and development, allowing Tesla, Twitter, and SpaceX to achieve milestones that were once thought impossible. His leadership has also been vital in fostering a culture of innovation and risk-taking within the companies, which has been a key driver for their success.

Bezos, Jobs, and Musk are prime examples of leaders with completely different leadership styles who have had a significant impact on the success of their companies. They have a clear vision, super ambitious goals, and an ability to think outside the box, which has led to rapid innovation and development. Their leadership has also been key in fostering a culture of innovation and risk-taking within the companies, which has been a key driver for their success.

A case of how companies building leaders –

While it is true that organizations like Unilever, GE, and IBM have built great leaders, it is less common that those leaders have gone on to build great companies. These companies are often established and have a long history, with well-established systems and processes in place. While the leaders of these companies have certainly had a significant impact on their performance, they are often working within the framework of an already successful organization.

For example, while leaders at Unilever have been instrumental in shaping the company’s strategy and direction, the company itself has a long history and has been successful for many years. Similarly, while leaders at GE have been able to drive growth and improve performance, the company has been a leader in its industry for decades.

It’s not to say that these leaders haven’t had a significant impact on their companies, but it is a rare case that those leaders have built great companies from scratch. Building a company from scratch requires a different set of skills than managing and leading an already successful one. It requires a more creative and innovative approach and a willingness to take risks.

Needless to say, while organizations like Unilever, GE, and IBM have built great leaders, it is less common that those leaders have gone on to build great companies. These companies are often established and have a long history, with well-established systems and processes in place. While the leaders of these companies have certainly had a significant impact on their performance, they are often working within the framework of an already successful organization.

Conclusion

In conclusion, the relationship between good companies and good leaders is a complex one. While both elements are important for a successful business, they play different roles. Good leaders provide direction, set goals, and inspire their employees to work towards a common vision. They also create a positive work culture which is crucial for employee engagement and satisfaction. On the other hand, good companies provide opportunities for employees to grow and develop their leadership skills; they have systems in place for mentoring and coaching. They have a clear vision and values that align with the leaders. Building a company from scratch requires a different set of skills than managing and leading an already successful one. It requires a more creative and innovative approach and a willingness to take risks. Both elements are needed to create a successful business, and one cannot exist without the other.

Hashtags: #LeadershipMatters #GoodLeadersGoodCompanies #BusinessSuccess #CompanyCulture #EmployeeEngagement #LeadershipDevelopment #Innovation #RiskTaking #LeadershipExamples #JeffBezos #SteveJobs #ElonMusk #Unilever #GE #IBM

Keywords – Good companies, good leaders, business success, company culture, employee engagement, leadership development, innovation, risk-taking, leadership examples, Jeff Bezos, Steve Jobs, Elon Musk, Unilever, GE, IBM, interplay of good companies and good leaders, building a successful business, good leaders key to building good companies, managing and leading successful companies, creative and innovative approach, leadership matters, building a company from scratch, key to business growth, key role of leaders in a company, relationship between good companies and good leaders, importance of good leadership in companies, impact of good leaders on companies, company success and leadership, developing leadership skills within a company, company vision and values alignment with leaders, company mentoring and coaching for leadership development, key elements for a successful business.

Tags: Leadership, Business, Success, Companies, Culture, Employee engagement, Development, Innovation, Risk-taking, Examples, CEO, Vision, Values, Mentoring, Coaching, Building a company, Key to growth, Impact of leaders, Company and leadership, Skills development, Alignment, Key elements, Business growth, Management, Business strategies, Entrepreneurship, Organizational development.

Turn Entrepreneur in 2016 (8 Reasons), Published on 2016-01-08 12:15

This is part 1 of the 3-part series and has appeared on Money Control SME news recently.

Is 2016 the going to be the year of the Entrepreneur? There has never been a better time to act on your “big idea”. And these 8 reasons will tell you why!

1. Entrepreneurs are the new black

In 2015, USA breached $70 Billion in Venture Capital Funding ($47 Billion in 2014). In 1H2015, Indian start-ups raised a massive $3.5B funding, record of sorts.

Today’s news makers are the 30-something year olds like Mark Zuckerberg (Facebook, 31y), Elon Musk (Tesla/ 44y), Brian Chesky (Air BnB/ 34y), Travis Kalanick (Uber, 39y). They are quickly replacing the likes of Ginni Rometty (IBM), Mary T. Barra (General Motors), a Christopher J. Nassetta (Hilton) or John P. Tague (Hertz), who would have dominated the news just a decade ago.

2. The age of Garage Entrepreneur is dead

Entrepreneurs are no longer just two guys starting in a garage. They are everywhere – in Starbucks, in McDonalds, in Airport Lounges, in Wi-Fi Hotspots or even at our work or college environs. They come from all parts of the world. They capture markets across the globe in months and are not limited to looking at US markets. We are going through a global entrepreneurial renaissance as evidenced by the explosion in entrepreneurial programs offered in universities the world over, as well as start-up accelerators, and corporate incubators.

3. Student unemployment is helping new ideas take shape

Student unemployment of those graduating is higher than ever before in the industry. On one side education has become expensive and on the other, there is no assurance of a campus placement. There are just not enough jobs in big corporates to cater to the millions of students passing out. It is not surprising that more students are instead seeking out entrepreneurial experiences while in college – many with aspirations to build the next Facebook, WhatsApp or Tesla. The others go through entrepreneurial education simply to better equip themselves or perhaps, in anticipation of one day taking that big leap from a cushy corporate job.

4. Lifelong employment is a myth busted, forever.

The age of lifelong employment is dead! Period.

With the security of lifelong employment and associated pensions gone, more people are looking to get into the driver’s seat and take control of their destiny. Side business start-ups are on the rise.

5. Disruptive innovation seldom happens in large companies.

There is a lot more scope for disruptive innovation today than ever before. Technology has flattened the world and we all want to see the same changes and fear almost the same things.

The pace of disruptive innovation has been accelerating since 2005. We are not seeing 10-year-old companies any more, let alone 100 year legends. New comers are disrupting previous disruptors. Who could have imagined Facebook forced Google to close Google+? Who could have imagined Samsung and LGs get Nokia to close shop? Such incidents have carved out an amazing window of opportunity for entrepreneurs.

Unfortunately, though, the larger the company, the more they are forced to maintain status quo. Not that they wish to, but that is how they are structured. They are too big to choose a new path and jettison the past. They face too many roadblocks – shift in power centres, employee disillusionment, painful experiences and crumbling organization structures.

6. Failure is the new badge of honour

The Silicon Valley have always prided in its entrepreneurial spirit with the phrase ‘Failure is a Badge of Honor’.

The rest of the world, including mostly Asian economies like India, China and Indonesia that constitute over half of world’s population rewarded formal employment and had a social stigma attached to failure.

Their iconoclastic generation is going back with a vengeance and challenging the tenets of the older generation. The likes of Jack Ma (Alibaba), Sachin Bansal (Flipkart), Bhavish Aggarwal (Ola) have only helped the cause in creating that aura around entrepreneurs.

7. There is no Better time to start

Internet has flattened the world. Since 2005 the advances in mobile telecommunication, increased bandwidths and broadband penetration have led to convergence of idea centres, funding sources and user clusters. Technologies like Cloud Computing and Mobile Applications have further democratised our world and have given the power in the hands of the common man.

Today, for the first time in history, people all over the world from New York to New Delhi, Amsterdam to Amman to or Jakarta to Johannesburg, London to Leningrad, have access to similar tools, knowledge, funding and people. It is cheaper, faster and less risky than ever to launch a new business, and there is no better time to start than now.

8. You don’t even need that permission to start

The world has changed and it has changed big time. The approach of Governments has changed. The social structures have changed. The sources of funding have changed.

Just a decade ago, starting up a business was both painful and expensive. Getting Government licenses, software licences, an office space or building team or those dozens of visits to the bank for capital infusion. Today, most of these things are extremely simple or even, free.

The question today isn’t: “Can we build this?”, but rather, “Should we build this?”

You don’t need lots of money, people, or time to answer that question. What are you waiting for? 2016 is waiting to see that disruptive entrepreneur in you!

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You might also like Part 2 of this – “Why Do Entreprenurs Fail? (8 Reasons)“

The author has over 20 years of experience in the technology industry and is now a serial entrepreneur. As Managing Partner at Futureshift Consulting, he often advises large businesses and new start-ups to take advantage of their innate potential and generate traction on their ideas to maximise impact.