Qualities of a Business Leader

A company’s success or failure often depends on the effectiveness of its leadership. A team is only as good as its leader. There are varied opinions on what business leader qualities are required to be successful. However, there are general qualities of a business leader that determines the success or failure of a company.

1. Ethical

Treating others with fairness is the cornerstone of an ethical leader. It creates a workplace where employees feel comfortable. A study of 195 leaders in 15 countries over 30 global organizations sought to answer the question “What makes an effective leader?” In the analysis, “high moral standards” was one of the most highly rated business leader qualities. Being an ethical leader means holding one’s self and others to a set of values to build a trustworthy environment. In this environment, one’s team will feel safe, and consequently, they will push themselves and each other to reach their full potential. They will be able to drive each other to achieve higher, reach goals quicker, and eventually create a more successful business.

2. Discipline

This quality applies to many areas, but it is especially important when it comes to taking action. A great leader is not defined by who they are, but by what they do. Ronald Heifetz, the author of “Leadership Without Easy Answers,” suggests that rather than defining leadership either as a position of authority or a personal set of characteristics, we should define leadership as an activity.

The ability to make quick and efficient decisions is vital to any leadership position. Effectively taking action requires that leaders are disciplined in their understanding of company motivation, as well as individual motivation. Discipline also equips leaders with the tools to motivate their team to act, so together they can reach their goal.

3. Humility

In the increasingly complicated and fast-paced business world, humility has become an invaluable quality for leaders. The current business climate has made it clear that no one person can accomplish everything on their own. The world demands business leaders that recognize they don’t have all the answers. It needs leaders who are mindful of their limitations and strive to improve themselves so they can lead others successfully.

While ego prompts us to believe our way is always the right way, humility makes us realize that we are often wrong. When we approach our work humbly, it shows an authenticity to others that in turn fosters trustworthiness and human connection. A humble business leader is willing and able to learn, which also helps to build a foundation of trust among their team. Once established, trust
allows leaders to encourage creativity and smart thinking in others.  Of all of the qualities of a business leader this is considered to be one of the most important.

Orly Maravankin, Founder of Edge Consulting, suggests ways that leaders can embrace humility, including the following: connect with your aspirations, adopt a mindset shift, expand your self-awareness, and ask for help. Each of these suggestions can be achieved by just taking a step back and obtaining a realistic view of one’s successes and failures.

4. Open-minded

It’s imperative in any business that leaders and their team are open to learning so that they can grow and adapt to survive in an increasingly competitive market. In order to promote learning in their company, a leader must remain open-minded. When one shows a willingness to be open, it eases worry about being wrong, and consequently, failing.

While failure is inevitable in any business, leaders can incite excellent ideas by openly acknowledges this inevitability and encouraging risk-taking. In Sunnie Giles’ article “The Most Important Leadership Competencies, According to Leaders Around the World”, he suggests that leaders “try to approach problem-solving discussions without a particular agenda or outcome, withhold judgment until everyone has spoken, and let people know that all ideas will be considered.” When one takes this approach, diverse ideas take shape.

Ultimately, business leader qualities depend on the individual.
Leaders must find an individualized approach to leadership, one that fits their position and their business. However, it is beneficial to everyone when leaders make an effort to better themselves and adopt new strategies and qualities that promote progress.

This discussion of Qualities of a Business Leader is just one of many topics of interest to executives of companies exploring reducing production costs by moving some or all of their labor intensive functions to Mexico.  You will others at http://tecma.com

NAFTA Negotiations Review

After Donald Trump’s announcement that he wants to uproot NAFTA, many feared that years of mutually beneficial free trade would come to an end.  However, he has said little about what changes he wants to make to the agreement.  This lack of information has created much uncertainty about NAFTA’s fate, as well as the future of U.S. companies currently doing business in Mexico.  In this NAFTA negotiations review, we will explore evidence that is leading many to believe that little will change and NAFTA will remain largely intact.

The first clue is the cautionary approach that Trump’s administration has taken when discussing NAFTA.  While Trump has used inflammatory language to express his stance against NAFTA, his administration has been considerably more moderate.  This suggests that they may not abandon the agreement as readily as many people initially believed.  However, there is some division among them.  Some of the administration believe that protectionism is the best route to take, while others are in favor of continuing free trade.

If protectionism wins, it will hurt two major U.S. industries: sugar and natural gas.  American natural gas powers more than a quarter of Mexico’s electricity.  Because of free trade, American energy companies are booming, especially in Texas where fear over changes to NAFTA is increasing.  If natural gas negotiations go poorly, it will be unfavorable for both sides.  There would be a severe loss of income for American companies and a devastating energy shortage in Mexico.  The seriousness of this potential outcome has spurred Mexico to begin looking for alternative power sources in case that their current source is cut off.

However, in the extreme case of a trade war, energy companies in Texas would be the first to fight it.  The market is about supply and demand, and currently, the production of natural gas in the United States exceeds its demand.  Without Mexico, one of the gas industry’s biggest customers, gas prices across the U.S. would plummet.  Similarly, natural gas is a valuable resource for Mexico, generating electricity for their major cities and providing power to citizens and manufacturers.  It is crucial, as we see in this NAFTA negotiations review, that the gas trade between Mexico and the U.S. continue if each nation is to be successful.

The sugar industry is also at the forefront of multiple trade issues between the U.S. and Mexico.  But the repercussions of said issues will quickly spread into international trade markets if not handled well.  Furthermore, the handling of sugar negotiations will set a precedent for the ongoing NAFTA negotiations and emphasize the importance of keeping the agreement together.

If sugar costs go up, then it will negatively affect food industry jobs.  Other American manufacturers rely upon sugar for production of their goods, and many of these companies are already moving their business to other countries to reduce costs.  Again, it is favorable for both Mexico and the U.S. that they form an agreement that guarantees that the sugar industry will continue to thrive.  Farms across Mexico employ 450,000 workers during harvest season, and an increase in import taxes on sugar would cost thousands of Americans and Mexicans their jobs.

Another key player in this NAFTA negotiations review is Canada.  They are an important trading partner, importing items such as softwood lumber and dairy products.  However, Prime Minister Justin Trudeau of Canada stands firm that Canada does not need a “Plan B. He believes that NAFTA has too many economic benefits for the U.S. for it to fall apart.

The results of this NAFTA negotiations review are clear: the economic benefits that the agreement affords to all countries involved are too numerous for it to change drastically.  Without free trade, American businesses would suffer.  The U.S. would lose valuable resources, opportunities, and trading credibility with nations outside of North America.  For these reasons, it is unlikely that the pact will undergo significant changes in the immediate future.

For a series of articles on NAFTA negotiations the reader is invited to visit http://tecma.com where you will find detailed articles in our blog.