Profile of Survey Participants
Most of the survey participants are in established businesses. In fact, 55% have been in business for more than 20 years. In terms of size, 26% of the prospects have annual revenue of $5 million or more. An additional 43% have revenue between $1 million and $5 million. The most common employee size by the survey participants was 10-49 employees with 40% of participants in this range. The most common industry sectors are Professional Services, Manufacturing and Construction businesses.
Key Leadership Attributes
A common profile of the most important leadership skills emerged from our leadership survey:
Most Important Leadership Quality: Goals and Vision
Do Business Owners Primarily Pursue Opportunities or Manage Risk? Overwhelmingly they pursue opportunities. 90% of respondents selected Pursue Opportunity to serving the goals of the business while only 10% selected Manage Risk. Respondents also identified themselves as more willing to take risks rather than be risk adverse. On a scale of 1 to 10, with 10 being “the most risk-taking person,” 74% of respondents labeled themselves a 6 or higher.
The outcomes of decisions were not always great when respondents took significant risk. When asked to characterize the outcome of business decisions when they took significant risk, only 13% rated the outcomes as Excellent. However, 69% rated the outcome as good and only 1% as poor.
Leadership Means Inspiring Action
When asked what was most important to dealing with employees, owners responded as follows:
Providing a Vision and Inspiring Action are seen as critically important by business owners.
How Well do Leaders Communicate with Employees?
Having a good vision and goals is one thing. The vision and goals will only be achieved if employees are aware of them and understand their role in accomplishing the vision and achieving the goals. In our survey, 72% of participants selected 7 or greater (on a scale of 1 to 10) when asked how well their employees understand their role in achieving their vision. However, only 12% selected a 9 or 10. There is room for improvement.
How Do Leaders Want to be Perceived by Their Staff?
The respondents on the survey were not Machiavellian. In fact, zero respondents wanted their employees to fear them. They don’t necessarily want to be liked either. Only 3% preferred that their employees like them. Instead, 32% of owners want to be understood by their employees. Most importantly, 65% preferred that their employees respect them.
How Well Have Business Owners Prepared for a Leadership Void? Not well enough. We asked multiple questions about the leadership skills of the best available employee or executive in the company. We asked about how effective the employee or executive would be if they needed to step in and run the business for three months and for one year. For all questions asked about the effectiveness, 50% or more labeled this person Somewhat Effective. The next most common response was Very Effective. Our observation is that business owners should better prepare a second in command to be able to run the business effectively in their absence.
Obviously, leaders will only be effective if their organizations accomplish goals. On a scale of 1 to 10, 74% of respondents selected a 7 or higher, with 10 being the highest, in how well their accomplish their company goals. There are some nuances to this:
Leaders are committed to achieving their goals. When asked how they respond when faced with serious obstacles, only 1% of respondents said they abandon their goals and pursue new ones. The majority of respondents do not attempt to go it alone either. When they do face obstacles, 62% seek input from thosearound them.
For the past couple of months, most business owners and leaders did everything in their power to survive the pandemic. Now it is time to turn off survival mode and begin to thrive in our businesses. In this webinar we will discuss the importance of liquidity and how to effectively utilize it to safeguard your business’s financial health in the future We will also discuss repositioning your revenue and where it makes the most sense in your business.