How to Tell If a Company is Being Led by a Great Manager: 10 Key Indicators

Effective leadership is crucial for any company's success. But how can you tell if a company is being led by a great manager? In this article, we'll explore 10 key indicators that can help you determine whether a company is being led by a strong and capable leader, or a total clown.

1. A clear and compelling vision

Great leaders have a clear vision for the future of the company and can articulate it in a way that inspires and motivates others. Their vision is realistic but also aims higher than others. A good manager shoots for the stars and settles for the Moon.

2. Strong communication skills

Outstanding leaders can clearly and effectively communicate their vision, goals, and expectations to their team. They rarely exaggerate or make misleading statements to their investors. A good manager is one that under promises and overdelivers. If they miss a due date, they apologize and accept responsibility. They don’t stick their head in the sand until people stop bothering them. A great leader never vanishes when things get tough or when the stock price crashes. Great leaders respect their investors and employees and will always keep them in the loop.

3. Emotional intelligence

Great leaders are self-aware and able to manage their own emotions and the emotions of others, which helps them to build strong relationships and create a positive work environment. They don’t start fights on Twitter, or post dumb things on Facebook. A good manager focusses on growing the business and keeping their employees and investors happy and excited.

4. Strategic thinking

Excellent leaders can think long-term and develop strategies that will help the company achieve its goals and objectives. They don’t get bogged down with temporary trends or short-sighted ideas. A great leader will always be thinking about what’s next, and frequently communicates this strategy to their investors and employees. The only people a great leader keeps in the dark is their competition.

5. Decision-making abilities

Outstanding leaders can make tough decisions quickly and effectively, even in the face of uncertainty or ambiguity. They can make tough decisions even if it means admitting they were wrong. If a program needs to be scrapped, a great leader won’t just scrub all reference to it on the website in the middle of the night. They’ll explain in an email or a blog post or a conference call why they had to pull the plug, and what they’re doing to move forward.

6. Adaptability

Great leaders can adapt to change and adjust their strategies as needed to ensure the company's success. If your company’s sector is in the dumps, and a great leader will adapt to this. Great leaders can raise funds even when access to capital markets becomes difficult. They pound the pavement, they make cold calls, and they approach unique organizations like sovereign wealth funds. An exceptional leader doesn’t just sit around and wait for the market recover.

7. Collaboration and teamwork

Outstanding leaders encourage collaboration and teamwork, fostering a culture of cooperation and mutual support. They make great hires and then delegate tasks. If your CEO hires a chief business officer but then you never hear from this person on a conference call, and your company isn’t landing any deals, then what was the point of the hire? What’s the point of expanding the team if new members aren’t contributing?

8. Empowerment

Excellent leaders empower their team members to take ownership of their work and make decisions, which helps to create a sense of ownership and engagement. Does your company let its team members talk to the press? That’s great. That shows trust. If all the news coming out of your company is from anonymous sources (leaks) then these people probably aren’t very happy. This is a sign that your leader is micromanaging everything. This is inefficient and annoys employees.

9. Ethical behavior

Outstanding leaders demonstrate strong ethical values and lead by example, setting a high standard for the rest of the team to follow. Great leaders never lie or exaggerate the success of their company. Bad leaders do this all the time. They make wild predictions and promise billions in sales that never materializes. Bad leaders hide behind the “forward-looking statement” disclosure. It lets them get away with saying almost anything.

10. Innovative thinking

Great leaders can think creatively and come up with innovative solutions to challenges facing the company. They aren’t stressed by market downturns, or tough negotiating partners. A great leader will get the job done no matter what the obstacle is. Bad leaders hide under the bed until the thunder stops.

By considering these 10 indicators, you can get a better sense of whether a company is being led by a great manager. Keep in mind that no leader is perfect, and it's normal for there to be some bumps in the road. However, a company that is led by a great manager will generally be more successful and have a more positive culture.

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