How to build a thriving organization

Article originally published in the Philadelphia Business Journal on April 15, 2019

I am frequently asked by individuals who are at various points in their careers how they can improve their leadership style so they can build a thriving organization. This is an update of an article I wrote in March 2018 for those seeking this advice.

As a business leader climbing the ranks of my company and eventually reaching the position of CEO, I have learned much from my own experiences as well as observing other leaders. I offer the following list of what to do and what not to do if one wants to be an effective leader and build a thriving organization.

Set the right tone at the top and nurture the right culture

Tone at the top defines the ethical standards under which the organization operates. Culture defines how employees interact with each other and their customers/clients. In my experience, both tone and culture are prime determinates of the success of any organization.

Communicate to your team what you are trying to accomplish

The Holy Grail of any business should be to become the preferred provider of products or services to its markets — the company that customers and clients go to first. Develop strategies with your team to be on a journey to become that preferred provider and share with all employees why this is important.

Choose your employees wisely

Your employees represent you and your company. The results they achieve, how they are achieved and the ability to work cohesively as a team have a direct impact on your reputation as an effective leader. Choose direct reports that you can trust and who will be trusted by fellow team members.

Listen to your employees

As the leader, listen to your employees and their ideas for moving the business forward. Listen to employees who challenge policies that don’t make sense to them. Never respond with, “Well, that’s just the way it is.”

Don’t undercut those in your organization

Empower your people and give them the authority to do their jobs. Give them space to disagree with you. Insecure leaders hold their people to a tight script and lash out if they say or do the wrong thing. If questioned why a member of your team has a different viewpoint than yours on an issue, just say you respect that view, but this is the direction the team is going.

Part company with an employee who is impeding progress

If a direct report cannot get onboard and impedes the direction you are taking or is a toxic individual, you need to part company with them but in a respectful way, so they can maintain their dignity. Personally tell them face to face. You will be judged on how you handle their departure.

Chaotic organizations are ineffective

Build a stable team. Chaos is bad for the organization. People need to build working relationships and trust among team members as well as those they deal with outside the company. Frequent turnover prevents this from happening and inhibits the achievement of your objectives.

Engender trust by being consistent in your policies and decisions

You need to be readable by your employees. This provides them with guidance on how to act in various situations. Being consistent also engenders trust with those you deal with outside the company.

Help employees create a sense of ownership in what they do

Employees feel ownership in what they do if you set expectations, don’t micro-manage and empower them to accomplish the goal. When employees feel a sense of ownership, great things will happen.

Trust your employees to make the right decisions

Celebrate, don’t terminate employees who violate company policy when it is in the best interest of the company to do so. Ensure that the leaders below you have the same mindset. Hire people with common sense and good critical judgment so they know when they need to violate policy when it is in the best interests of the company to do so.

It’s okay to admit you were wrong and change direction

If an initiative you previously committed to becomes impractical or has unintended adverse consequences not initially foreseen, it’s okay to admit you were wrong and to change direction. The worst thing you can do is continue to pursue a bad initiative because of a previous commitment. Not acknowledging issues is a sure way to lose trust, and once trust is lost, it is hard to gain it back.

You want to be respected and not feared

Respect keeps lines of communication open. Fear shuts them down. You want everyone in your organization, regardless of position, to feel comfortable in sharing things with you. You can’t resolve issues if you don’t know what they are.

Leaders who self-aggrandize are insecure and lose the respect of their organization. It’s not about you. It’s about serving your customers or clients, and how well you do that brings long-term sustainable success to your company.

Remember the adage that “people leave bosses, not companies.” If frustration leads a high-potential high-performing employee to leave your company, they may go to work for a competitor. Ensure you don’t lose these types of employees due to ineffective leadership.

Stan Silverman is founder and CEO of Silverman Leadership. He is a speaker, advisor and nationally syndicated writer on leadership, entrepreneurship and corporate governance. Silverman earned a Bachelor of Science degree in chemical engineering and an MBA degree from Drexel University. He is also an alumnus of the Advanced Management Program at the Harvard Business School. He can be reached at Stan@SilvermanLeadership.com.