Corporate organisations are formal legal structures and separate entities from their owners, designed to conduct business, owned by shareholders and managed by boards of directors who appoint executives to run the companies. The executives are members of the C-suite, like the Chief Executive Officer, Chief Operating Officer, Chief Financial Officer, Chief Accountant, etc, who make day-to-day decisions in ensuring the organisations are profitable. They give life to corporate organisations in that the organisations cannot survive on their own. When experts say business is a pool of risk, they are actually saying that leaders in business organisations are risk-takers. The types of risk they take and the degree of the risks determine the success of the business. Leadership’s major function is risk-taking. Leaders are risk-takers because strategic and calculated risks are essential for innovation, growth and navigating uncertainty. By embracing risks, leaders can identify business opportunities, develop creative solutions, and inspire their teams to foster a culture of experimentation.
Successful leaders can differentiate between risk-taking and gambling and they tactfully avoid reckless gambles and nose-diving. Instead, they focus on well-researched and purposeful risks that align with organisational goals and benefit stakeholders like shareholders, governments, business customers, employees and neighbours in the business location through regular corporate social responsibilities (CSRs), while maintaining the courage to lead through uncertainty and unpopular decisions. Without risk-taking, there would not be exploration of new ideas, products and processes which lead to transformative possibilities and organisational advancements. Leaders see opportunities where others see challenges, adapting their strategies to thrive in tough times. By demonstrating a willingness to take calculated risks, leaders create a psychologically safe environment where team members feel confident proposing bold ideas, fostering greater involvement and a sense of ownership. Leadership are the unseen forces behind corporate organisations’ successes and failures!
Key features of corporate organisations include limited liability for owners, the ability to make profit and own properties, ability to create leadership opportunities and perpetual experience which allows the business to outlive its founders, if well managed. Leadership is crucial for business success because leaders set vision and direction, motivate and inspire employees, drive performance and growth, foster a positive culture, guide decision-making, and navigate crises. Effective leadership provides clear organisations’ objectives, nurtures future leaders, builds teams, encourages innovation, ensures accountability, and ultimately safeguards the organisation’s long-term goals, success and profitability. Organisations need leadership because a leader is a motivator, communicator, and guide. Effective leadership makes management functions easy to achieve by others and are the links between stakeholders. Their critical function is the determination of returns on shareholders’ funds and employees’ remuneration.
Other functions of leadership include:
Provides vision and direction — Leadership establishes and communicates a clear vision and set strategic goals, guiding the organisation toward its mission and ensuring everyone is working toward the same objectives. When the employees are functioning well and achieving organisation goals, it is because leadership is functioning and when the organisation is failing, it is because leadership is bad.
Strategic planning — Leadership develops and implements strategies to achieve organisational goals, adapting to market conditions to ensure the organisation’s sustainable growth.
Motivates and inspires employees – Leadership motivates and inspires employees of an organisation by determining remuneration, awards and rewards and acts as role models thereby inspiring the employees to greater heights.
Drives performance — Leaders influence employees to perform at their best by providing clarity of intention, support, and by recognising their efforts and improved performances. Leadership creates an environment of trust and love in a successful organisation, sustain organisation culture and position an organisation to face the future.
Boosts engagement — By fostering a positive and inclusive work environment, leaders can increase employee morale, engagement, and a sense of purpose.
Drives performance and growth — Leadership gives direction to the performance of organisations by acting as the ship captain and determining the level of performance of workers.
Enhances productivity — Effective leaders ensure their teams stay efficient and productive, which contributes to overall organisational performance. They accept responsibility for employees’ shortcomings and share accolades with the employees when the organisation performs extra ordinarily well!
Promotes innovation — They create an environment where creativity thrives and employees feel valued, fostering new ideas and approaches that lead to innovation.
Shapes culture and environment — Leaders of successful corporate organisations are in charge of shaping the culture and climate of their organisations. Their integrity affects the goodwill of the organisation and their misdeeds rub negatively on their organisations.
Other functions of leadership also include:
Fosters a positive culture — Leaders play a pivotal role in shaping the organisation’s culture, creating an environment where employees feel valued and are motivated to collaborate and learn.
Facilitates communication — Good leadership ensures open communication and helps resolve internal conflicts, creating a more cohesive and productive workplace.
Enables effective decision-making — Without leadership, there would not be effective decision-making in corporate set-up.
Strategic decisions — Leaders are responsible for making critical decisions that can lead to market expansion and increased profitability. In turbulent periods, leaders make critical decisions that can make or mar the visions and missions of organisations.
Crisis management — In times of uncertainty or crisis, leaders provide calm and decisive guidance, helping the organisation navigate challenges and maintain stakeholders’ confidence.
Leadership is very important in corporate organisations because leaders are the heart of corporate organisations. They are the rallying point of other stakeholders and their confidence permeates their organisations. Leaders are experienced and can forecast the future of business organisations. They influence the employees to perform at their best. The failure of organisations is usually due to failure of leadership. Leaders create a positive culture for business to thrive. Corporate organisations are entities that require engines to propel their movement; leadership are the engines, while employees are the wheels! In the modern era, especially research findings from organisations like the World Bank Group, Diageo, Amazon, Marriott, Microsoft, Google, Alibaba, Unilever, Cadbury and Standard Bank Group show that successful organisations develop leaders internally through structured programmes, mentorship and providing opportunities like stretch assignments.
