Why Business Leadership is Important

Sep 21, 2022 4 Min Read

Photo by Adeolu Eletu @ unsplash

Leadership is vital everywhere!

Why does business leadership matter so much, and why do you need to strive to acquire leadership skills yourself? This quality is at the core of strong teams and strong organisations. Learning how to lead will benefit your career, the organisations you work for and your colleagues.

Strategic Direction

Leadership is critical when it's time to take the company or a department in a new strategic direction. There can be pushback from staff, but ultimately, when they respect management, they can be persuaded that the change is for the best even if they do not see the immediate results. This could be the case if you work in fleet management and are looking for ways to reduce fuel consumption and costs

grayscale photo of person holding glass

A single, integrated fleet management software that offers data-driven insights is an excellent way to help you identify various inefficiencies and where you are spending money needlessly. It will be much easier to implement this new platform if you are already in a situation where you have good communication and buy-in from drivers and other staff on your decisions.


Every organisation does or should have a vision, and leaders are crucial in seeing that vision sustained and reflected in everything that the organisation does. Without that vision, it can be easy to lose sight of this vision, and an organisation can quickly become rudderless. Effective management should be able to not only remind staff of the organisational vision but to help demonstrate how that vision is being carried out.

Morale and Motivation

Amongst the top skills every leadership candidate needs, cultivating strong morale and motivation are key to retaining the best employees, and so a leader has a large part in creating those incentives. While it is important to offer tangible rewards, such as good pay and good benefits, some elements that drive employee retention are not as concrete. 

A healthy work culture is important as are strong relationships between employees. Feeling as though they have a voice within the organisation is another factor that will help keep employees satisfied. All of these can be achieved through effective leadership.


No organisation can function if people are not working together, and strong leadership can in turn foster a strong sense of teamwork, whether that is throughout the entire company or in small units within larger departments. 

Read more: Here Are Some Secret Keys To Unlock Teamwork

One element of this is building a sense of a cohesive identity. Leaders should look beyond standard team-building exercises and focus on what the particular people on their particular team would most prefer. Some teams will respond well to more traditional exercises while others will enjoy social outings and still others would prefer to foster that sense of togetherness simply through collaborating in the workplace toward a particular end.


Ultimately, a team, department or company with strong leadership is resilient. This is more important than ever in a fast-changing environment, where new technologies are constantly disrupting work processes and employees are moving on to new jobs more quickly than ever before. 

This may interest you: How to Build Resilience in an Age of Instant Gratification

Organisations that have fostered a strong sense of cohesion through effective leadership will be more resilient and whether these changes are better than those that lack direction and a clear mission.


This article is also available in Chinese.


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This article is published by the editors of Leaderonomics.com with the consent of the guest author. 


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