To ensure that you are using the right style of leadership to help your business expand, this week Axis Telecoms explains how democratic leadership benefits your company’s bottom line.
The Value of Democratic Leadership
The importance of leadership is something we’ve come to learn well as an independent supplier of energy and telecoms. Axis Telecoms has learned that with the right leadership style, a company gains the ability to make sure that they can keep their bottom line growing in the long term.
Throughout the myriad of leadership styles out there capable of benefitting your company, Axis Telecoms has come to understand the value of democratic leadership. With this style of leadership, the final decision still rests with you, but everyone in the office gets a say.
The Benefits of Democratic Leadership
At this point you may think that throwing a decision to the entire office may be cumbersome and thus inefficient and costly. However there are advantages to democratic leadership which make it good for your company’s profit margins:
Reduces Staff Turnover: If you let an employee help in making a decision you let them know that they matter. Therefore they feel like a valued, essential part of them team, meaning they are less likely to leave. Therefore, through democratic decision making, you can reduce the cost of employee turnover.
Promotes Communication: Making a decision together means not only do you communicate with staff, but they communicate with each other. This fosters their ability to work as a team, which has been proven to lift profit margins.
Fosters Research: If an employee is involved in a making a decision, they’ll feel compelled to research said decision. They may find something that hasn’t occurred to you, ensuring you are able to make an informed decision that will protect, not deplete your company’s bottom line.
Facilitates Debate: Building on the last point, employees come from different perspectives, and researching will give them contrasting viewpoints on the matter at hand. This will facilitate debate that will allow you to look at the matter from all perspectives, so that you are able to make the right decision for your small business.
Allows a Leader to More Effectively Manage Their Time: A leader has many demands on their time that can make it hard for them to effectively lead. Sharing decision making eases that burden, allowing a leader to devote their time to other concerns more effectively.
The Profitability of Intangible Benefits
The benefits of democratic leadership are intangible, but they are there. Think of it like you would think of reputation. You can’t measure the positive effects of having a good reputation, but they are there. In the same way, democratic leadership will make your company more profitable.