Recall a Strong Leader in Your Life

Take a moment to reflect on who you’d identify as a good leader. Recall past
managers, executives, or founders you’ve worked with. Or, consider companies that
you admire and the leaders who have driven their success.

What kind of person comes to mind? What qualities or behaviors make them stand
out? Perhaps you remember a CEO who excelled at connecting your team to the
company’s greater vision. Or, maybe you think about a manager whose personal
mentorship advanced your professional growth. 

While most of us can recognize a good leader when we see one, few of us take the
time to understand what leadership actually means or what defines a strong leader. In
this lesson, you’ll explore both. You’ll learn a basic definition of leadership followed
by the five critical functions of business leaders. You’ll then compare and contrast
what separates a bad leader from a great one.

What Is Leadership?
Leadership is the act of influencing others to achieve a shared outcome or a common
goal. It is not necessarily tied to authority or power. Rather, it means mobilizing
people and inspiring them to take collective action. 
Great leaders often exude confidence, passion, and charisma. People are naturally
drawn to them and want to follow them. Leaders give a team vision and direction.
They inspire those around them to be and do better. They drive forward movement,
make difficult decisions, and rally the right people and resources to produce results. 

The 5 Critical Functions of Business Leaders

So, what does a leader actually do? What is their primary role in advancing a company’s
interests and growth? Expand each row below to learn about the five critical functions of
business leaders. 

Inspire a Shared Vision

–
Leading means creating a vision and sharing it with others. Leaders must always assess the
answers to the questions, “Where are we going?” and “How will we get there?” Then, they
must communicate their vision to others and get them excited about it. 
Vision gives people a shared goal that they can get behind or purpose they can rally around.
Without a shared vision, a team’s efforts become disjointed, and progress stops. Leaders
provide a clear target to aim for, and they make sure that everyone sees the same target and
moves toward it.  

Make Things Happen

–
The second critical function of leaders is to make things happen. Leaders create a strategy, or
a road map, for translating vision into reality. They are responsible for organizing resources,
deciding who will be involved, and creating a timeline for completion. They then execute the
plan, manage changes or updates to it, and take responsibility for ensuring its success.

Engage and Motivate Others

–
Next, leaders play a crucial role in engaging and motivating others. Leaders are not sole
heroes. They do not micromanage or get things done alone. Instead, the best leaders unlock
the potential of others. They strategically engage the skills, strengths, and expertise of the
people around them. They set high standards and motivate others to reach them. They provide
the support people need to put their own ideas into action. That’s why skills like
collaboration, relationship-building, and fostering trust are so important in leadership. 

Develop Human Capital

–
Another important function of leadership is to develop human capital, or build the next
generation of leaders. They do this by recognizing talent, developing talent, and helping
talent to see a continued future within the organization. They match the needs of the company
with the skills and interests of its people. They help employees cultivate the leadership skills
they need to manage others, solve problems, and take meaningful responsibility and
ownership in the company.

Embody Company Values

–
Finally, leaders lead by example. They embody company values, shape company culture, and
exemplify the character, attitudes, and behaviors that they want others to emulate. Leaders
inspire loyalty and respect from others because they act with integrity and goodwill. That
means leaders must work on developing themselves and their personal proficiencies. They
must demonstrate emotional intelligence, including social skills, empathy, self-awareness,
and self-regulation. These skills also allow leaders to reflect on their success and failures,
recognize their limits, and translate what they learn into business practices.

Bad Leaders vs. Great Leaders 

So, what defines a good leader? And what distinguishes a bad or mediocre leader from a
great one? Advance through the flashcards below and flip each card to compare and contrast
the two. 
Summary
In its simplest terms, leadership means influencing others to work toward a shared
goal or a common purpose. In practice, leadership means so much more. Leaders
create and share a vision that unites and gives direction to a team. They translate that
vision into reality by developing a strategy, making decisions, delegating
responsibilities, and setting standards. 

So much of a leader’s power stems from their ability to engage and motivate others.
They engage the strengths of the people around them and call on them to rise to the
occasion and unlock their potential. They look ahead and invest in developing the
human capital needed to sustain the business long term and build the next generation
of leaders. Finally, they embody company values. Their actions reflect their values,
and they demonstrate the goodwill, integrity, and passion that fosters loyalty, trust,
and confidence in their followers. 

What Does Employee Engagement Look Like?

The fully engaged employee is easy to spot. They display several characteristics that indicate
their level of investment in the work, the team, and the company goals.  
 Dedication. When an employee is fully engaged, they are more likely to arrive early
and stay late to solve problems or make deadlines. Personal and emotional investment
in work is a sign of a dedicated and engaged employee.
 Enthusiasm. Engaged employees demonstrate excitement and enthusiasm about their
projects. They bring positivity to tasks and motivate their coworkers, leading by
example. When faced with challenges, they take an optimistic approach. 
 Outspokenness. Employees engaged in their work are more willing to vocalize ideas
and raise concerns about decisions they disagree with. They are inquisitive and more
likely to ask questions when they don’t understand and offer praise when it is due.
  Productivity. Employees engaged with their work get results. Their output meets and
often exceeds expectations, and they willingly take on additional tasks for the good of
the group.
 Pride. Engaged employees are conscientious about their work and proud of
accomplishments. They commonly go above and beyond their duties, and eagerly
learn, grow, and take on additional responsibilities or opportunities within the
company.
 Humility. An engaged employee gives credit to their team rather than taking credit
themselves. Receptive to criticism, they also search for opportunities to improve.
When facing knowledge gaps, they defer to those with more expertise and experience.
Don’t confuse job satisfaction with employee engagement. It’s possible for employees to
like their job, but still have low productivity and engagement. For example, leaders may
create a situation where there are low standards, low accountability, and little vision. In this
case, employees may enjoy the job because it’s easy, but they may not be particularly
motivated to achieve more. 

Why Employee Engagement Matters

Engaged and self-motivated employees boost your company’s bottom line, and they give
value to your company in less tangible ways, too. Review the following list of reasons you
should make employee engagement a top business priority. Higher levels of employee
engagement are linked to: 

 1

1
Increased quality and productivity. Teams consisting of fully engaged workers
produce at a higher level and are more effective. Engaged employees put more effort
into their work, increasing quality and efficiency. 

 2

2
Better customer service ratings. Employee engagement directly affects the customer
experience. Customers are more loyal to companies whose employees exude
positivity and dedication. 

 3

3
Reduced turnover and absenteeism. Higher retention rates are another of the many
benefits of employee engagement. Satisfied and fulfilled employees are more likely to
show up to work and less likely to seek opportunities elsewhere.
 4
4
Improved morale. High levels of engagement create a healthy and positive
workplace environment. When employees are engaged, it minimizes the office
dynamics that lead to apathy, negativity, and subterfuge.
6 Strategies to Increase Engagement
While it’s critical to consider an employee’s motivation, attitudes, and values in the
hiring process, leaders continually underestimate their impact on employee
engagement. The best leaders take responsibility for engagement. They get to know
their employees and what motivates them. They actively seek out ways to get them
more involved at work. Click on each of the statements below to learn about strategies
to increase employee engagement:

Show Why Their Work Matters

First, engaged employees not only believe in the long-term vision or goals of the company,
but they also believe in their personal contribution to those goals. Employees need to feel
connected to what they do and why it matters.

This does not, however, mean exaggerating the meaning or impact of their work. Instead, it
means consistently identifying and communicating the genuine ways an employee’s work
makes a difference for coworkers, the company, customers, or the product. 

Always take the time to help employees envision the outcome of a project and how it
contributes to the bigger picture. A few more strategies you can employ include:
 Reiterating the mission and values of the company and how projects contribute to
them.
 Recognizing employees for their success and acknowledging how their contributions
advance bigger goals.
 Talking about the impact of employees’ work.

Help The Excel At Their Job

People like to feel that they are good at what they do. Get to know and leverage employees’
strengths. Help them develop their talents and take pride in their work. Strategies to apply
this idea include:
 Coaching employees and giving constructive criticism or advice on how to do better.
 Praising employees for their accomplishments and delivering positive feedback when
they do good work.
 Asking employees what skills they’d like to develop and providing opportunities for
additional training or practicing those skills.

Listen And Value Their Ideas

Employees who feel valued and heard are more likely to be engaged in their work. Here are
some strategies to put this into action:
  Ask employees for feedback about what they need to stay engaged at work or how the
workplace could improve. Listen to their advice. 
 Include employees in big decisions. Ask for their input and opinions regarding big
decisions about the company or individual projects. 
 Give employees some control or ownership over their work. Let them decide the best
way to approach a task and trust them to do their job. 

Create Work Environment That Help Them Thrive

The work environment you create is a key factor in employee engagement. A work
environment that is toxic, political, exclusionary, or overly critical is a surefire way to get
employees to shut down and disengage from work. Here are some strategies for creating a
work environment where people can thrive: 
 Don’t punish or reprimand employees for mistakes. Instead, discuss and coach them
on how to avoid mistakes in the future, approach the challenge as an opportunity to
learn, and encourage them to come up with a solution. 
 Encourage collaboration and teamwork among employees. Focus on achieving shared
goals instead of individual performance. 
 Invite employees to share their ideas, honest opinions, and thoughts.  
 Build workplace culture on the principles of inclusion, diversity, and belonging. Make
it clear that discrimination in any form won’t be tolerated. Moreover, find
opportunities to celebrate diversity and create a space where historically marginalized
groups can make their voices heard.  
 Practice empathy and compassion. Understand that employees come from a range of
backgrounds and experiences, and each brings their unique approach and perspective
to the workplace. Get to know them as individuals to discover what drives and
motivates them. 

Set High Standards And Challenge Them to Grow

Employees may become disengaged when they feel like their job isn’t going anywhere or
when they become complacent. Employees need to be challenged. They need a leader who
has confidence in them, depends on them, and invests in their potential. 

You might increase engagement by trying one of these strategies: 

 Encouraging employees to take risks or try new approaches.
 Discussing employees’ growth and future within the company.
 Providing challenging assignments and opportunities to test new skills.
 Communicating goals, plans, and milestones.
 Placing employees in roles of increasing responsibility or influence.

Be A Leader They believe In And Support

Finally, employees are more engaged when they believe in the leadership and direction of the
company. Give them a person worth following, and they’re more likely to want to follow
you. Give them a person to look up to, and they’re more likely to want to support and impress
you. 

Here are some ideas for bolstering your reputation as a leader: 

 Be transparent and honest. Make sure that your actions align with your values and
words. 
 Follow through on promises or commitments.
 Give credit to employees, and celebrate their accomplishments.
 Treat every employee with dignity and respect.
 Create a track record of achieving results.
 Take the time to listen to employees’ ideas.
 Pursue training to develop your emotional intelligence.

Everybody is motivated differently. Get to know your employees as individuals, and tap into their
unique motivations.

Summary
Engaged employees are personally invested in their work. They take pride in what they do,
and they’re committed to the long-term success of the company. Employee engagement is
also linked to better key performance outcomes, ranging from higher rates of productivity and
customer satisfaction to lower rates of turnover and employee absenteeism. As a leader, you
play an important role in engaging and motivating employees. Use the following checklist to
ensure you’re providing the prerequisites necessary for employees to feel engaged at work: 
 Do employees understand the impact of their work, why it matters, or how it
contributes to the bigger goals of the company?
 Do employees feel like they’re appreciated and good at their jobs? Do they have
adequate training, and do you focus on their strengths instead of their weaknesses?
 Do employees feel like their ideas are encouraged, heard, and valued? 
 Is the work environment positive, healthy, and constructive? Is it free from fear of
punishment or judgment?
 Are employees given opportunities to be challenged, try new skills, or take on roles of
responsibility and influence?
 Do you act with integrity, respect, and goodwill as a leader? Are you consistent with
your actions and words, and do you demonstrate strong emotional intelligence and
transparency?

Encourage employees to be themselves. 
Leaders may unknowingly create tension and resentment when they expect employees to act
the way they do or be motivated by the same factors. Recognize employees for their
individuality. Encourage employees to be their authentic selves, and then call on their natural
strengths to achieve desired outcomes.
Great leaders motivate and engage their employees.