Characteristics and prerequisites of effective managers

By Sabine Walter
02 May 2019

The figures from the latest Gallup Engagement Index are as sobering as ever: around 2/3 of all employees have resigned internally and are working to rule. The associated economic damage amounts to around 150 billion euros per year in Germany alone. One of the main causes of employees resigning are managers who do not fulfil their role.

In this article, I explain what the causes of inadequate leadership are, what competences effective leaders have and how developing an understanding of leadership is the first step towards an effective and modern leadership culture.

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Characteristics of effective leaders

Management literature defines various competences that characterise effective managers. These include acting as a role model, strategic and visionary thinking, communication skills, social skills, assertiveness, goal- and results-orientation. 

Causes of poor leadership

In my daily work with executives and managers of medium-sized companies, I experience time and again that there is a gap between theory and practice. Why is that the case?

Many of my clients have grown so strongly in recent decades that they have had to establish structures to secure this growth. This is why many managing directors and entrepreneurs have relied on people who are professionally experienced and have been with the company for a long time.

Five things happened as a result:

  • The best technical experts were entrusted with tasks for which they were not trained and which they rarely really wanted to do.
  • There was a failure to develop an effective understanding of leadership that all managers can orientate themselves by and that forms the basis for feedback and further development.
  • The technical experts had less time for their technical work and instead had to deal with conflict resolution in teams and administrative tasks. Both suffered as a result.
  • Employees were inadequately managed and withdrew emotionally from their tasks and the company.
  • Absenteeism and sick days have increased. Staff turnover increased.

An overarching understanding of leadership as a prerequisite for effective leadership

As part of our work, we advise medium-sized companies on how to set up their management culture for the future. The first step is to work with employees and managers to develop an understanding of leadership that reflects the times we live in and forms the basis for the company's long-term competitiveness.

What does such an understanding of leadership entail?

Elements of an effective understanding of leadership

An effective understanding of leadership comprises three elements:

  • Management principles
  • Leadership competences derived from this
  • Behaviour derived from this

Let me explain this in more detail using the example of a leadership principle:

WE GIVE TRUST.

competencies

Behaviours

Self-confidence

  • occurs safely
  • speaks clearly and without plasticiser
  • Addresses conflicts openly and with confidence in a solution

Delegation

  • transfers responsibility to others appropriately

Fault tolerance

  • accepts that mistakes happen

Scope of an effective understanding of leadership

To ensure that an understanding of leadership can be remembered in everyday life and anchored in leadership behaviour, it has proven useful to define no more than 9 leadership principles. We recommend 3 - 5 key competencies per leadership principle and 3 - 5 behaviours that can be observed in everyday life are assigned to each key competency.

Understanding leadership as the basis for manager selection and development

Your understanding of leadership is the basis for the selection of suitable managers and their development. As part of 360° feedback processes in combination with development days, high-potential employees can be identified at an early stage and developed in a targeted manner as part of coaching and training programmes.

The 360° feedback is repeated annually in order to visualise and recognise progress and initiate the next development step.

Companies that have this attitude and carefully select and develop their leaders do not need expensive employer branding. These companies will have young and experienced talent beating down their doors. These companies will be among the organisations with which employees identify and perform to their full potential.

Start the guided development of your leadership culture.

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