Since leadership is so vital to a company’s bottom line, this week Axis for Business’ reveals five ways a democratic style of leadership can save you money.
What is Democratic Leadership?
As an energy and telecoms supplier who strive to help small businesses across the UK save money, Axis for Business understands the importance of leadership. With the right leadership style, you can steer your company in the right direction to ensure it grows its profit margins.
There are many styles of leadership capable of getting results, but we would advocate the democratic style of leadership. As the name suggests, this is where major decisions, whether it be to support the Small Business Bill for instance, are consulted on throughout the office, however the final decision still lays on you.
The Five Advantages of Democratic Leadership for Your Bottom Line
The democratic style of leadership has many advantages that can save you money, thus help you expand your profit margins…
1) It Saves You Time: Time is money in business, especially for a leader, who has many demands on their time. Therefore, consulting with your employees frees up time for you to handle your other duties more effectively, so you can be the type of leader who increases your SME’s bottom line.
2) It Enables Wider Research: There’s only so much research you can do on your own. By letting employees help in the decision making, you gain a wider research base, as they’ll strive to find out all they can, to ensure they make the right decision. Their research might catch something you might have missed, so that you can make the right decision for your company, and avoid the pitfalls a mistake may reap on your profit margins.
3) It Provokes Discussion: Expanding on that last point, once your employees have researched the matter at hand, they’re bound to come up with conflicting view points, which will provoke discussion. This discussion will allow you to see the matter from all angles, so that you know everything you need to, to ensure you make the right decision for your company’s business model.
4) It Makes Employees Feel Valued: By asking their opinion, you let employees know you care about their opinion. This makes them feel valued, and an employee that feels valued is more likely to stay at your company, reducing the cost of staff turnover to your profit margins.
5) It Brings the Office Closer Together: Democratic decision making inspires communication. Building communication skills helps your staff learn to work as a team, which is always good for your profit margins.
Make Money Rather Than Losing It
Although intangible, there are many ways that a democratic style of leadership can reap real financial benefits for your small business’ bottom line. Ultimately, it allows your company to run more efficiently, so that it makes money, rather than lose it.