Leading companies around the globe consider leadership development a critical challenge and are making investments in their future leaders. However, most of these organisations rely on the traditional view of leaders in the organisation being “business experts”, and that “leadership development is about how to deal with people”, which nowadays seems to be only partially true.
The leaders identified in many organisations seldom have a track record of carrying out multiple functions or achieving comprehensive profit-and-loss targets because their roles have typically been those of a functional leader. Business-oriented leadership skills cover much more than simple financial acumen or product/customer and sales expertise.
Historically, or even cinematically, effective leaders draw on a wide array of talents to inspire those who follow. In the film Gladiator, there is a powerful scene where General Maximus is addressing his troops before going into battle. To motivate and inspire his troops, he says:
“Three weeks from now, I will be harvesting my crops. Imagine where you will be, and it will be so. Hold the line! Stay with me! If you find yourself alone, riding in the green fields with the sun on your face, do not be troubled. For you are in Elysium, and you’re already dead! … Brothers, what we do in life … echoes in eternity.”
The whole idea of the speech is “stay with me — I know how to keep you alive” and “follow my instructions and we will be where we all want to be very soon”. This speech becomes powerful because Maximus has credibility. His credibility is due to a mixture of vision, understanding of the situation and the complexity of the battle, and the capability to draw on a strategy to help his team win.
People Leadership vs Business Leadership
Great leaders, then, encompass a range of skills that can be classified into two groups: people leadership and business leadership. There are distinct differences between the two.
Often, we tend to focus on people leadership skills (the “how”), such as the ability to engage and inspire, collaborate, influence, manage stakeholder expectations, develop talent and lead change. While these skills are essential, business skills (the “what”) are on the more strategic side of the capability spectrum and are often given minimal attention.
Key capabilities included under the business leadership umbrella include strategic thinking, market savvy, business and financial acumen, competitive awareness, fact-based analysis, scenario planning and evaluation, portfolio management and decision-making.
Leaders who exemplify strong business skills, including business acumen, are better equipped to understand and articulate the company strategy, and can make better decisions to execute more effectively. They are better equipped to manage the three tensions in business: profitability vs growth, long-term vs short-term, and centralisation vs decentralisation.
Combine these characteristics with the ability to engage, inspire and collaborate, and the result is an effective and successful leader.
Putting Business Leadership Skills into Practice
The good news is there is no need to go to the battlefield to practise business leadership skills. As one US Army general interviewed by BTS pointed out, “There are some things I really do not want my people to learn on the field” — meaning he would rather have them practise in a simulated, risk-free environment where learning is impactful and secure.
The use of experiential methodologies like business simulations, Engage Maps, and other discovery-based learning techniques can help accelerate business acumen learning and allow people to practice business leadership skills to deliver meaningful results. Studies have shown that practice by doing increases learning impact by 8 to 10 times over traditional techniques of lectures and reading.
Finally, immersing leaders in discovery-based learning initiatives connected to desired organisational results creates valuable experiences that are more likely to stick as they return to their jobs.
As Tim Mooney and Robert Brinkerhoff explain in their book Courageous Training, leaders must understand how their new skills and capabilities are linked to their strategic objectives. Learners must leave the experiential learning programme armed with an action plan and a clear understanding of how these new capabilities align with the company’s strategy.
In conclusion, leaders who exemplify a combination of strong business leadership and people leadership skills understand the key questions regarding a company’s ultimate goal of value creation. They can combine the drivers of profitability and growth with a market-focused approach, while engaging, inspiring and collaborating with those around them to ensure the agility and long-term success of the organisation.
As a friend who is a famous basketball pro once told me: “It is not your height that matters in basketball; it is the height of your game!”
Dr Philios Andreou Sphika is the Deputy CEO and President of the Other Markets Unit, including Thailand and Asia, at BTS Group, a leading global strategy execution consulting firm specialising in the people side of strategy. With a wealth of experience in strategic alignment and cultural transformation across various industries, Dr Philios is passionate about helping organisations achieve their full potential. He is deeply committed to working closely with teams and businesses to drive meaningful impact on a global scale. For executives who are interested in connecting, Dr Philios can be reached at philios.andreou@bts.com or visit his LinkedIn profile.