The Benefits of Effective Leadership

The Benefits of Effective Leadership

As John Maxwell put it, “A leader is one who knows the way, goes the way, and shows the way.”

Effective leadership initiates a positive domino effect that impacts every level of a company, from the C-suite at the top, trickling all the way down to the inexperienced, lower-level management, and beyond.

In our experience, we’ve discovered five benefits of effective leadership:

1) boosted employee productivity,

2) increased revenue for your business,

3) an inspired workplace culture,

4) improved communication, and

5) higher customer service success rates.

Boosted Employee Productivity

When employees have clear expectations from leadership about their work requirements, they are happier and more productive in the workplace. In an article on, the author says, “Smart employers work to achieve a golden combination—an engaged workforce that is also highly productive.” When employees feel engaged in their work, which is usually a result of knowing what’s expected of them, they will be more productive.

Increased Business Revenue

Effective leadership prospers a business. Although there are many bottom lines, and money is only one of them, you can’t deny the impact that finances make within a company. Money gives you the freedom to make choices about what direction you take your company. Without profitability, you can’t pay your employees. Without revenue, a business can’t continue to operate.

Inspired Workplace Culture

Never underestimate the importance of workplace relationships. Harmonious work relations are a result of effective leadership. When employees feel appreciated and recognized by their leaders, they will appreciate, respect and recognize each other. It’s the “pay it forward” attitude put into action.

Improved Communication

Good, effective leadership has a domino effect when it comes to important areas like communication in the workplace. In the article, “6 Ways Leaders Can Improve Team Productivity,” published by Norwich University Online, it states, “Building a culture of open communication ensures that leaders are constantly sharing and receiving feedback on their firm’s performance, while also inviting employees to provide valuable constructive feedback about the performance of their leaders as well.” This channel of communication works better when both parties are receptive. When an employee feels that they can offer a leader constructive feedback, they’re more apt to receive constructive criticism in a gracious manner.

Optimized Customer Service

As a result of outstanding, effective leadership, you will see your customer service success rate go up the scale. Happy, satisfied employees create happy, satisfied customers. An effective leader is one who recognizes and publicly identifies employee strengths. An employee who feels appreciated is going to go the extra mile for a customer. Forbes Magazine discussed the role of leadership in good customer service as follows: “If managers know their employees’ strengths, they can tailor their roles to fit those strengths, so customers get the best possible experience. This can also help employees stay engaged.”



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