Lesson

“A great leader’s courage to fulfill his vision comes from passion, not position” (John C. Maxwell)

Leadership is a vital skill in the success of any social enterprise, and social enterprises are crucial for the healthy functioning of society, especially in remote, isolated areas. Most important qualities a leader of a social enterprise should have are such as: expertise, integrity, empathy, passion as far as the enterprise’s mission is concerned. These latter traits are often forgotten when we talk about leadership in the corporate world, but without these traits leaders in the social economy sector struggle to make a positive impact, rarely establish strong support systems and lack motivation to nurture new leaders. Leaders of social enterprises are solution finders, networkers with keen communication skills and ambition, to lead the way and to sell their vision.

It is also important to be mentioned that, leadership as a general term is not related to managership, managers are not necessarily leaders, and leaders are not always managers. Although managers are responsible for planning, coordinating, and organizing tasks and activities within an organization, their role certainly demands leadership skills, too.

While a manager is a job title, being a leader means a state of being. Managers are supervising employees to make sure they are following company rules and guidelines, and they fulfill their tasks. Leaders, on the other hand, are who influence the behavior and work of others in group efforts towards achievement of specified goals in an organisation or a given situation. They can also have people who work for them, but more importantly, they have people who look to them for guidance or generally look up to them

The terms “manager” and “leader” are not mutually exclusive. Leading and managing are two different roles that require different competences. However, that does not necessarily mean that managers cannot become leaders. Leadership demands soft skills that, when inculcated, empower managers.

There are several ways to categorize leaders. Usually we are labelling them based on their occupation and calling them political, economical or religious leaders, just to mention a few. But leaders are not only those who are well-known nationwide or globally. It’s a common misconception. The teacher from your child’s kindergarten may play a leading role in his/her workplace or in an NGO. Being a leader of a social enterprise, in a smaller community is an achievable goal.

First of all leadership starts with community, organizational skills and self-confidence therefore the previous learning units are going to be handy.

Leadership and power are closely linked. People tend to follow those who are powerful. And because others follow, the person with power leads. But powerful people are the good leaders or rather good leaders are becoming powerful through their leadership? Power can come from many source and leaders have power for different reasons, and people tend to follow also those who are leading with good example.

Leaders of social enterprises have to earn their power, they usually earn the appreciation of others after proving their values through exemplary actions. In short, they are setting good examples/models to follow.

In the following section you will find a more general classification of the types of power.

More than half a century ago, in 1959, two social psychologists, John French and Bertram Raven, conducted one of the most notable studies trying to understand why some leaders influence us and the following were found:

Legitimate – this comes from the belief that a person has the formal right to make demands, and to expect compliance and obedience from others.
Reward – this results from one person’s ability to compensate another for compliance.
Expert – this is based on a person’s high levels of skills and knowledge.
Referent – this is the result of a person’s perceived attractiveness, worthiness and right to others’ respect.
Coercive – this comes from the belief that a person can punish others for noncompliance.

Later on they completed the list with a sixth base of power, Informational – this results from a person’s ability to control the information that others need to accomplish something.

These are rather relevant in the case of corporate or political leaders, who are mostly charismatic leaders.

Charismatic leader has a strong personality that attracts others. They usually shine in times of crisis or uncertainty. The social entrepreneurs may be charismatic leaders, especially if they inspire others to make changes in the societal structure. In this case, they should possess the ability to express and share their vision and to exercise sound practical and ethical judgment every step of the way. Unlike the charismatic leaders who enjoy the glamorous settings and the big platforms, the servant leaders usually work face to face with others in classrooms or workshops, interacting with more compassion, intimacy and personality. Servant leaders are those who are focused on serving their communities. Their leadership is directed towards the development and well-being of others. Servant leaders are more engaged in the daily lives of those they serve. They have the capacity to educate, train and build skills in their followers. Both kind of leaders can be effective in social enterprises, but their success depends largely on the nature of the issue they are standing for.

A burning question may emerge now based on the above: What can (and should) leaders contribute with at any organization what others can’t do? More simply, what is their role?

A leader have to fulfil many roles, often simultaneously. There are different leaders and each type of leadership serves in specific capacities. Below are presented five roles of a good leader in a more general approach:

The Motivator: motivation can vary from person to person. What motivates you? Is it money, time off or recognition? The motivator influences others to act in an advantageous manner. This could take form in recognition for excellent work. In social enterprises motivation is crucial, because there could be more uncertainty at the beginning, also if it’s social mission is to help excluded/vulnerable social groups, their involvement is the most effective by motivation.
The Mentor: Being guided in the right direction is essential to success. A mentor provides the mentee with the foundation to be successful. This type of leader is the perfect asset to have when an employee reaching new heights in any area of life. Mentoring your employees is also an investment in the local community, in their future and with a little luck in your company’s future.
The Learner: Always aim to be better person today than you were yesterday! The learner is someone who constantly develops their knowledge, skills and abilities to help the organization achieve its strategic goals. Lifelong learning is crucial to sustainability. It can also serve as an inspiration for your employees, who, by seeing you set an example, might also want to develop themselves.
The Visionary: A good leader clearly defines where their team is going and how they are going to get there. Effectively leaders see that where they are today is not where they need to be tomorrow. In this role, leaders create a shared vision and communicate it so powerfully that others join them on the journey. A visionary leader is someone who is innovative and is able to leverage on ideas and concepts from his or her team and merge them into a concrete plan. To be a visionary leader, you need to learn to look at your business from an outside perspective, be innovative and most importantly work as a team with your people.
The Strategist: Strategic leaders consistently achieve results with and through others using disciplined and carefully planned processes. Effective leaders translate vision into results by focusing on the most important priorities and creating systems that empower people. In this role, leaders create an environment where people can work together and win. A strategist is able to delegate well and understands what everyone’s strengths are. If you want to be a strategic leader, create a platform for you and your team to test new ideas and concepts openly. Be transparent and be ready for a transformation when it is required – which means stop resisting change and adapt yourself to technologies and trends that is fit for your business.

In fact, leadership is not just a position, it is also about responsibility, it is a choice, a sacrifice that is needed to be taken while achieving goals. Good leaders can be recognised through their qualities such as: self-awareness, prioritizing personal development and trying to help others, encouraging strategic thinking and innovation, etc.

Effective leaders focus also on developing their emotional intelligence. Leaders that are motivated to refine this quality are more adaptive, resilient, and accept feedback from others. They are also good listeners and open to change. Delegating, coaching, and mentoring employees are similarly important competences for anyone in leadership position. At the same time leaders have to look forward and think about where their organization is heading. They must consider internal organizational factors, such as product roadmaps and staffing needs, as well as external factors, including government regulations and technology advancement, when making strategic business decisions.

In the following section we are offering a few tips for how can you improve as a leader:

Set goals, prioritize goals, and take responsibility for accomplishing them. Also, take responsibility for falling short of your stated goals or making mistakes along the way.
Set boundaries between your personal and professional lives. Remember that your organization will follow your lead—if they see you working long into the night, they will assume that they have to do the same.
Accept that things can and will go wrong. This anticipation will help you respond in a thoughtful way that does not make a difficult situation even worse.
Retain awareness of your strengths, weaknesses, and any potential sources of bias that may impact your thinking and decision-making. Conduct self-assessments and seek feedback from your team, and set improvement goals with measurable targets in areas where you have room to grow.
Recruit and develop your team with diverse skills and backgrounds, and give the team members both the tools and the space to build trust among each other.
Delegating responsibility can be more difficult than completing the task yourself, but this allows you to see what a team is capable of doing. Accomplishing complex tasks helps a team build confidence and continue its path to growth.
Make genuine connections with those outside your organization. Actively seek out people who will make your team stronger, even if their expertise doesn’t perfectly match the needs you have at the moment.
Make training a priority within your organization—and balance it with a culture that allows team members to thrive.
Focus on the future, understand that change is occurring all around you, and maintain a positive outlook.
Encourage creativity and innovation in your team through exercises such as brainstorming or prototyping. Let business lines explore new ideas based on the output of these exercises.
Make informed decisions. Leaders often have to make risky decisions, but you must be able to justify the course of action you are taking. Your team will take notice if you are making reckless decisions—and they will be likely to follow your lead.

Taking into account the suggestions made, you might be already capable to implement some of them in your business, or practice them before you start your social enterprise.