Question

Please define the 3 Biggest Leadership challenges that Leader face as business grow. And explains why for a sustainable business growth, Effective Leaders need all these 3 to be well managed and strong.

Answer 1

1. Capacity

If an organisation is to grow, it needs the right people and the right leadership. A shortage of leaders at every level is the biggest challenge to the organisation sustaining growth, even if it can create client demand.

Consider the scenario of a company where the local market is developing rapidly. Many would consider it to be in a lucky position with clients clamouring for its products and services. But with a lack of leadership capacity comes the risk of not delivering. And in a competitive market, a reputation for poor delivery is almost worse than a lack of demand.

2. Capability

Companies are also struggling with leaders lacking the critical skills they need to succeed.

Today’s employees are intelligent, educated and innovative. And they’re used to thinking about the world in digital terms and on a global scale. In a fast-growing company, talented employees often fast-track through promotions. Their innovative skills and abilities take root and bear profitable fruit. But there’s little chance to instil the foundations of the leadership needed to continue growth. They may have had limited exposure to management and leadership positions. And that means they lack skills, experience and confidence in leading themselves, others and the organisation.

3. Culture

Building leaders requires more than a portfolio of training programmes. It means having a culture of growth that everyone buys into to broaden the opportunity for leaders to develop in new ways. This means putting potential leaders in positions that stretch them beyond their current skill sets, coaching and supporting them so they build their capabilities rapidly.

Fast-growing companies also face the challenge of preserving the positives of their culture as they grow. I know from my experience at Avanade that company culture is generally formed early on by founding members and key management. These individuals work closely together, making it relatively easy to maintain company culture. But as the company adds new personalities (not to mention extra locations), it can be a real challenge to assimilate all these individuals and preserve the company culture.