Many people believe that being the CEO of a company simply turns you into a leader. You are, after all, in charge of the business’s plan, making key decisions, picking a business field, and driving the growth of the company, but is all you need to be a leader? The answer is no. Being a leader is a very complex role that demands a range of key skills, personality traits, and, often, years of experience. In this article, Joseph Haymore will explain how leadership shapes the destiny of entities in the world of business with examples.
1. Showing Compassion
Truett Cathy, the founder of Chick-fil-A, believed in treating his employees well. Before opening his own restaurant, he worked in various restaurants and understood the toll it took on workers and their families to work every day of the week. When he finally started Chick-fil-A in the 1940s, he made a compassionate decision: he closed the restaurant on Sundays to give his employees a day of rest.
This act of kindness wasn’t just good for the workers’ well-being; it also had a positive impact on the business. Despite Chick-fil-A being closed one day a week, it still became incredibly successful. Each Chick-fil-A store makes almost double the revenue of other fast-food chains like McDonald’s, which stay open every day for long hours.
While closing on Sundays isn’t the only reason for Chick-fil-A’s success, it’s a significant factor. By showing compassion to his team, Truett Cathy created a culture where staff members were appreciated and motivated to provide excellent service. This demonstrates that leadership isn’t just about making decisions for the business; it’s also about caring for the people who make the business thrive.
2. Granting Ownership
At Ritz-Carlton, every employee has the power to make a difference. Whether it’s a manager, a bellhop, or even a janitor, everyone is empowered to solve customer service issues as they arise. This means that guests can expect quick solutions to any problems they encounter during their stay.
What sets Ritz-Carlton apart is not just giving employees the authority to act but also backing it up with resources. Each employee can spend up to $2,000 per day per guest to ensure a positive experience. This level of ownership fosters a culture where everyone is committed to delivering exceptional service.
As a result of this approach, Ritz-Carlton has received numerous awards for outstanding customer service. By trusting and empowering their employees, Ritz-Carlton has created a culture where excellence is the norm, contributing to its success as a luxury hotel brand.
3. Engaging with Purpose
Tom’s founder, Blake Mycoskie, had a clear purpose from the start: to provide shoes to those in need around the world. This mission has been the driving force behind everything the company does. Despite facing challenges along the way, Mycoskie stayed true to his vision, and it paid off.
According to Joseph Haymore, Tom’s success isn’t just measured in profits; it’s also about the impact it has had on communities worldwide. In just over 13 years, Tom’s has given away over 60 million shoes in 70 different countries. This commitment to purpose has not only helped those in need but has also resonated with customers, contributing to Tom’s thriving business.
Even when Mycoskie sold part of Tom’s, the company was valued at over $600 million. This shows that staying true to your purpose can lead to both social impact and financial success. Tom’s success story illustrates the importance of aligning business goals with a higher purpose.
4. Cultivating a Unique Culture
Burton, the snowboard brand, has a culture unlike any other. From allowing employees to leave work to catch a good wave to formalizing ride-days where everyone hits the slopes, Burton encourages its employees to pursue their passions.
Moreover, Burton values employee input in shaping the company culture. Employees are encouraged to start groups and initiatives that promote job satisfaction. This inclusive approach has contributed to Burton’s dominance in the snowboarding market, capturing 40-45% of the market share.
Jake Burton, the founder, is worth an estimated $100 million, showcasing the success that comes from fostering a unique and empowering work culture. Burton’s example demonstrates that when employees feel valued and engaged, they are more motivated to contribute to the company’s success.
Importance of Leadership Development
Continuous leadership development is vital for long-term business success. Effective leadership not only drives individual teams but also sets the standard for the entire organization. When leaders invest in their development, they create a positive ripple effect throughout the company.
By nurturing successful leaders, businesses can cultivate high-performing teams that produce outstanding results. This, in turn, attracts top talent and fosters a culture of continuous improvement. Leadership development is an investment in the future of the company, laying the groundwork for sustained success.
Conclusion
Leadership plays a significant part in a company’s success. Joseph Haymore concluded that leaders can create environments where employees thrive and businesses prosper by demonstrating compassion, granting ownership, engaging with purpose, and cultivating a unique culture. These examples illustrate that effective leadership isn’t just about making decisions; it’s about empowering others, staying true to a purpose, and fostering a supportive work culture. Investing in leadership development is essential for driving lasting success and ensuring that businesses remain competitive in today’s dynamic landscape.