The 3 R’s of Business Leadership

Are you a leader? If you’re the owner of a business, by default the buck stops with you. But that doesn’t necessarily mean you’re functioning as a leader.

When you don’t step up to the plate, take charge, make a decision on a timely basis and see that it’s carried out, you’re creating a potential problem. Your job as leader is to make decisions and take action. When decisions are put off because you’re not sure what decision to make, or you take action without really making a decision, problems can start to pile up. That’s when your business can get into trouble.

Yes, it’s true, every business decision involves risk. As the leader you bear the responsibility to make the right decision in order to reach your reward. These are what I call the 3 R’s of Leadership: Risk, Responsibility, Reward.

Risk

Let’s face it, with any decision there is the risk of making the wrong choice. What do you need in order to make the right choice? One of the first places to check is the Plan you have for your business. Consider which choice will most likely lead to your goals? Also assess if the marketplace and economy will support the decision and are your internal operations able to support it?

What you’re seeking when there’s risk at stake, is confidence. The key to gaining confidence is to gather all the pertinent information, analyze it and base your decision on what you learn.

Responsibility

Since it’s your responsibility to make the decision, the ball is in your court whether you like it or not. You also have to create and carry out a plan of action pertinent to your decision. You gain new confidence every time you carry out your plan of action and assess the results.

It’s your responsibility to know what is going on in your business at all times. You can only do that if you have ways to get the information you need. So it’s your responsibility to have adequate systems and procedures in place to carry out any decisions you make and provide you with information to assess results.

Reward

When you lead your business, taking the risk and bearing the responsibility, there will be a reward. Know what your reward should look like. Keep it in mind at all times as you make choices that take you closer to your target. Reaching or surpassing the goals you’ve set for yourself is your best reward.

Prepare yourself to take the risk, bear the responsibility and reap the reward of being a leader?