Preparing for a business acquisition or transfer typically triggers a due diligence process that evaluates leadership competency. Here are the leadership behaviors we evaluate to determine how a leader contributes to the achievement of short-term and strategic goals, and enduring business sustainability:
- Acting with credibility: more than any other leadership attribute, employees choose to follow leaders who walk the talk, lead from the front and keep promises; they are seen as genuine and worthy of trust.
- Thinking strategically: despite the constant pressure to be drawn into day-to-day tactical circumstances, leaders must carve out time to think about the strategic opportunities that enable progress. They are the only ones in the business who determine long-term direction.
- Driving change: leaders are hired to improve results, which involves driving change, not just adapting to it. Change requires an investment of discretionary effort by employees that cannot be compelled; overcoming resistance to change mandates that leaders inspire their people to invest extra time and energy to improve process and performance.
- Nurturing relationships: there is no business without relationships…no customers, no employees, no investors, no future. Relationships matter; leaders are responsible for building enduring relationships with all key stakeholders.
- Cultivating shared accountability: teams bond when they struggle together to overcome barriers and achieve common goals. Leaders who promote trust, collaboration and commitment enable the prompt and efficient resolution of challenges that expedite decision-making, drive change and encourage innovation to improve performance.
- Sustaining a growth focus: leaders who preserve an outward looking focus, a bias towards markets and customers, appreciating how their business makes a difference for them, boost sustainability.
How do you evaluate leadership competency?
How might each of these six characteristics be measured?
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