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The biggest reason why a business fails

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Planning leadership succession is the most common problem faced, while running an organisation. An entrepreneur or a business owner formulates an idea, but it is his leaders who need to get this idea executed and take his vision forward.

But what if the leader is unable to do this? How do we identify who is a capable/ incapable leader?

To identify this, one needs to know if leadership capabilities are acquired or inherited. As a famous quote goes, ‘true leaders are born, not made’ but is that really true? Let us dig deeper to find out.

As humans, we are all born with a certain kind of aptitude. While attitudes and skills can be honed, through practice and hard work, the same cannot be done for Aptitude.

Aptitude is the innate ability of a person to do things in a certain manner. The right amount of hard work when done in sync with the aptitude can make someone a natural success. We may term these people as talented and natural. Such people are capable leaders as they have a natural ability to manage tasks effectively in their specific area of expertise.

On the other hand, if a person is extremely passionate, motivated and works extremely hard, but doesn’t have an aptitude for that work then maybe he/she can do well, but will struggle much more, and might never reach the level of the person who is born with that ability. Many a times such people despite putting extreme hard work fail, as they just are not able to think in the direction that is required, in short, they just don’t have the aptitude.

Thus a capable leader is a person with a vision and aptitude of running an organization. Their vision not only helps them but others as well to lead a successful life. He/she is one who looks beyond themselves and aims at the growth of everyone around. A sign of a capable leader is one who is willing to learn and convert his weak areas into strong ones. A leader devoid of these capabilities then is an incapable leader.

A major concern in terms of incapable leadership can be solved through proper leadership succession. Succession planning is in itself a big challenge in every organization.

It’s the duty of an entrepreneur to have an eye for an effective successor and keep his/her horizons broad and not limit succession only till blood relations. If a leader has an aptitude and not the necessary willingness and hard work then he also qualifies to be an incapable leader, as in order to be capable he/she should work towards the organization’s goals and indulge in self-improvement.

Hence, whenever a business owner is looking forward to having the next generation in the business, one thing he/ she needs to look at, is whether the successor has the vision to take it to the later generation as well. A business which has been established over the years and in the graph needs to enter the next phase needs to have someone who is not only innovative but also has an aim to keep the organisation’s values alive while bringing in the modernity. A business takes a lot of hard work and perseverance and if the successor who takes over it doesn’t nourish it the same way, the business loses its essence. Improper leadership succession is a major setback for any organization and needs to be dealt with, in order for the effective functioning of an organization. A leader, therefore, plays a key role in either building up a business or breaking it, as his/her capability or incapability to lead decides the path for a business.

A worthy Successor is that who has an aptitude, the right intent, puts in necessary hard work, and is able to uphold the correct values that are in sync with the changing time yet not contradicting those of the founder/ business owner.

 

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