How Leadership Drives Business Value

By Generational Equity


One of the most important steps in our Generational Consulting Group (GCG) assessments is to help the business ownership identify any weaknesses or blind spots in their leadership style. It is almost impossible for owners to self-assess this, but it is a proven fact that the organization gets better if the leader gets better. 

So, GCG consultants work with owners to develop 360-degree feedback to the owner(s) on how his/her leadership style impacts the health and growth of the organization. This critical step often reveals how an owner's personality, needs, wants and behaviors impact the entire company, often without the owner even realizing it. 

I recently came across a really interesting analysis of how leadership can impact an organization by Brian Dodd entitled, “10 Signs Of An Organization With A Lazy, Careless, Or Absentee Leader”. Here are Dodd’s 10 signs:

A leaderless organization is similar to sheep without a shepherd. The following are 10 signs of an organization with a lazy, careless, or absentee leader:

  1. There is no personal or organizational growth. The people do the same thing over and over.
  2. Unhealthy habits have been formed and viewed as normative.
  3. There are no new or fresh ideas. You have become an expert in what used to work. You’re in a rut.
  4. There are fewer and fewer customers. The land has become barren.
  5. Your culture has become polluted.
  6. Instead of attracting people who can move the organization forward, you attract parasites who suck time and resources away from the organization.
  7. Your organization is filled with prideful, stubborn leaders. They are stiff-necked because they think the organization is healthy when in fact it is plateaued, declining, or even dying.
  8. Your organization is filled with careless leaders.
  9. Your organization is filled with absentee leaders who neglect the pasture and sheep.
  10. There are no systems or plans in place to grow the people or organization.

Sadly, I am sure that we all have worked in organizations over the years that exhibited some or all of these “signs.”

Of the 10, I think the one that is most damaging when buyers come to look at your business is number 10. An organization without a growth plan for its people that is tied to the growth of the organization is destined for failure. Buyers know this and steer clear of rudderless companies without designed tactical or strategic plans.

That is why the work that GCG does is so vital to our clients. The GCG track record is exemplary in helping guide a business back on track. Here is what a few of our clients have said about our process:

So, leadership is critical to the valuation of any business. And leadership needs ideas, new approaches, and a willingness to change in ways that add value to the business. Our Senior Business Strategists with GCG are experts in creating tactical and strategic plans that really work and ultimately add value to any organization.

To learn more about getting a leadership assessment on you and your company, please reach out to us and we can arrange to have you attend one of our Growth and Exit Strategy Conferences.

Finally, don’t be afraid to look at yourself in the mirror. Your leadership style has a tremendous impact on your entire organization, and you are probably not even aware of it!

Carl Doerksen is the Director of Corporate Development at Generational Equity.

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