The term ‘leader’ is so frequently used to describe a certain type of person that it’s meaning – or at least what it’s supposed to mean – can get lost in the noise.

Across the full professional landscape, from business to politics to sport, we talk often about ‘leaders’ and ‘leadership’. We know who these people are, what their roles entail, and often discuss the effectiveness of those in prominent positions of leadership. Less often do we talk about what it is that makes a great leader, great.

Now, I would never be so self-aggrandising as to describe myself as a ‘great leader’. In fact, I’d go so far as to say that anyone who would, most likely isn’t. What I have done however, is founded, invested in, and grown multiple successful businesses. I feel this qualifies me to at least discuss the concept of leadership and the leadership qualities I’ve witnessed in action that have made my own journey possible.

Here, I’d like to share with you some of the qualities that I believe can (and have) produced ‘great leaders’.

 

Humility

Among the various dictionary definitions of humility is ‘freedom from pride or arrogance’. When an individual reaches a certain position of seniority, either via promotion or self-made means, the compulsion to believe in one’s own infallibility can be intoxicating.

This compulsion can manifest in all kinds of ways. A classic one is a stubborn belief that a good business idea will begin yielding lucrative results within a year or two of conception. Nothing grounds this belief in cold, hard reality like the passage of time. As good as any idea might be, it can easily take upwards of five years to begin bearing fruit. A sense of humility is essential for navigating through this period with focus and diligence.

Humility is especially important for those leaders building an enterprise from the ground up. Leaders in this position, who may once have taken for granted the likes of a reliable monthly salary, sick pay, paid holidays, and automatic pension contributions, soon learn the anxiety that comes from realising that none now apply. As such, an unpretentious and respectful approach to those early years are vital for appreciating every closed deal and every new client.

Bullishness has its place in business, but be wary of excessive pride. All too often it precedes a fall.

 

Confidence

Now confidence is different. Whereas an air of superiority can be off-putting to all stakeholders attached to an enterprise, confidence breeds belief.

Confidence also weaves into all areas of a business and is essential for decision-making. As an example, I can take you all the way back to when I was a starry-eyed 18-year-old, keen to involve myself in the world of commerce. By chance, I noticed an advert on the back page of the business section of the Sunday Times that had been posted by a gentleman in Doncaster who’d taken a container load of Eastern Bloc bicycles as part-exchange for a Rolls Royce. He was selling them for £15 each.

Pulling together every ounce of confidence I could muster at that age, I drove to Doncaster and bought as many bikes as I could fit in my van. Upon my return, I soon sold every single one for £80 per bicycle.

Had I been arrogant, I might have deemed the venture not worth my time or haggled over the price to the detriment of the deal. But I was confident in the viability of the transaction and in my ability to sell the bikes myself, and the experience proved the catalyst that would take me to where I am today.

Not every deal in business will deliver the results you want. Some might fail in their entirety but hold on to that confidence in your own abilities and these will become the exception.

 

Appreciation of your people

The importance of the people that work within your business cannot be overstated. If, as a leader, you fail to turn up to work for a week, the business will continue operating as usual, albeit without the same sense of direction. If your people fail to turn up to work for a week, it could be enough to collapse the business in its entirety.

However, fear of the repercussions from not investing properly in your people shouldn’t be the motivating factor. You should want to invest in them. I’m often asked what the secret is to the success I’ve enjoyed and the answer is always the same: I employ people that are better than me at what they do. And, I ensure they know they are appreciated by the words I use, the rewards I make available, and the opportunities I strive to create for them.

This is particularly true when acquiring or investing in a new business. The temptation when doing either of these is to head straight to the numbers, the EBITDA, the product or service quality. But ultimately, that’s not what you’re investing in; you’re investing in the know-how and skillset of the people within the business, and the culture that forms the bedrock of its success.

Apart from the sense of wellbeing that comes for providing an environment in which good people can flourish, the rewards can also come in pounds and pence. It’s something that came to me later in life, but I have since learnt the formidable power that comes shifting the focus away from yourself and concentrating on simply helping others. Whether as an investor or as a business leader, if you invest your energies into helping people succeed, their success becomes your own.

 

A Sense of Humour

Ask most people what qualities they appreciate in another person and a sense of humour will feature high on the list. The reason is that humour is disarming. It alleviates periods of unease, boosts the mood of those present, and strengthens bonds between people. A sense of humour also makes a person more appealing to others, even helping to breed trust and loyalty. For a business leader, these are impacts that are most advantageous.

Of course, this doesn’t mean a leader should assume the role of in-house comedian. Indeed, the hit comedy show, The Office, is predicated on the sheer awfulness of a boss who cares only about being popular and funny. But used effectively, humour is a powerful tool.

In any business there are gloomy periods. Sales will drop, marketing campaigns will fail, clients will leave. Whatever the cause of the unrest, your people will look to you for a response. If that response is rooted in anger or misery, make no mistake, it will filter down and do nothing to improve the situation.

We only need to look to some of the most eminent leaders of our time, from Brian Clough and Jose Mourinho to Barack Obama and even the late Queen Elizabeth II to see evidence of leadership that inspired and bred success and which was laced with good humour.

Much has been made in recent years as to the damaging effects of toxic work cultures on mental health and overall productivity. By learning to laugh at yourself and by establishing a culture in which people feel safe to smile as they work, you create an environment that few will ever want to leave.

 

Final thought

As stated in the introduction, I do not profess to be a great leader. With humility being the first quality explored as to what I believe does make a great leader, it would be remiss of me to apply such a label to myself. I’m a person who has taken risks, surrounded myself with exceptional people, and enjoyed plenty of good, old-fashioned luck.

Nevertheless, I’ve known success, I’ve helped nurture success in others, and I spend every working day observing great leadership in action. It is from these experiences that I’ve devised my own beliefs around what great leadership is.

If you feel that some of these leadership traits are absent from your own skills inventory, keep in mind that they can be learned. If great leadership is about anything it’s about a desire to keep learning, to keep improving, and internalise the lessons that come from failure.

And, while it might sound like a tad cliché, by maintaining a real passion for your business and the industry in which you operate, success will come. It might take a bit longer than you’d prefer, but with humility, confidence, investment in your people, and a peppering of humour, it will come.