4 Ways To Become A More Effective Business Leader

Good managers are hard to find. According to Harvard University, effective business leaders need many different qualities that don't always exist in the same person. However, any business professional who wants to become a great manager must have a set of core attributes. 

That's something known too well by Gabriela Vogel, senior director analyst in the Executive Leadership of Digital Business practice at research firm Gartner, who provides pragmatic leadership guidance to executives. Drawing on her consulting knowledge and professional experiences at Disneyland Paris, Vogel told ZDNET that the key qualities of effective managers are grouped into four key areas.

Also: What is digital transformation? Everything you need to know about how technology is changing business

Let's find out how you can become an effective business leader.

1. Deliver value

Vogel said the first thing you need to do to be seen as an effective business leader is to deliver value.

"You need to know what value is," she said. "Is it about revenue or cost reduction, and how does that definition of value translate to the top line? Because if you can't do that, how can you justify your senior position?"

Vogel gave an example of how business leaders might think about exploiting generative artificial intelligence (Gen AI).

Also: The data suggests gen AI boosts software productivity - for these developers

"When we talk about delivering value through Gen AI -- what does that mean? Are we talking about increasing revenues, reducing costs, or boosting productivity? What does productivity even mean? What are you going to do with that rise in productivity?" she said.

"There's so many conversations that need to happen."

In another example, Vogel referred to the changing role of IT professionals. She said modern digital leaders need to focus more on value than previously before.

Also: Businesses still ready to invest in Gen AI, with risk management a top priority

"They need to understand about the architecture of finance, how the P&L is billed, and whether the business needs to have a different type of financial vision to track the value," she said, echoing the sentiments of other business leaders who have spoken with ZDNET.

"Does our IT strategy change the business and corporate KPIs, and how does that transformation affect my interaction with all the other executives? How do I get skin in the game? There's now a more complex conversation around value in all business roles."

2. Read the room

Delivering quantitative results isn't the only factor that defines effective leaders -- great managers also possess the right qualitative skills, including being able to communicate and collaborate with their peers.

"Once you reach that higher level in the business, particularly if you are part of the executive committee, you need to know how to deal with corporate politics," said Vogel.

Also: 5 ways to be a great leader at work

Managers must recognize that underlying corporate politics can be made with social motivations in mind. Great leaders see the signs.

"If you're unable to read the room and understand and navigate that context, it's going to be tough," said Vogel.

"You could be the most intelligent person in the room, but you can easily find yourself outside."

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Vogel advised up-and-coming professionals to consider whether they're a good fit for the company and the position. Focus on a few key questions.

"You need to ask, 'Can I work with this team? Do I understand how decisions are socially made? And is this a place where I can actually add value?'" she said.

"I think the ability to read the room becomes an important element. Because if you can't, you'll have a very, very short stay in senior management positions."

3. Upskill yourself

The rapid pace of change in modern organizations represents a huge challenge for all business leaders. Vogel instructed would-be executives to keep learning.

"Especially at the moment, and the world we work in, you need to upskill yourself," she said. "We have had so much change happening in the business."

Vogel said technology is a key factor in the rapid pace of change. The past two years have seen huge demands for Gen AI and machine learning. In the future, technological innovations around blockchain, quantum computing, and robotics will lead to more pressure for digital transformation.

Also: IBM will train you in AI fundamentals for free, and give you a skill credential - in 10 hours

However, technology is not the only change factor. Vogel pointed to macroeconomic factors, such as inflation and recession, and social pressures, including demands for environmental sustainability and instabilities due to geopolitical considerations.

Jon Grainger, CTO at legal firm DWF, told ZDNET recently that experienced professionals often feel it's too late to move into a new area and gain new skills. However, he said the fast pace of change can be your best friend if you want to try something fresh because challenges keep arising.

Vogel expressed similar sentiments -- there's no time like the present if you want to learn something new.

Also: The best free AI courses in 2024

"Executives must continuously reinvent themselves. This is where older generations possibly didn't have that much pressure. They didn't need to keep upskilling themselves," she said.

"But this focus on continual learning has to be a practice that executives in the market today take very seriously if they want to have a long and successful career."

4. Listen to your team

Most importantly, up-and-coming professionals must understand that successful leaders work effectively with their teams.

While honing personal skills and collaborating with peers will help you stay close to senior executives, the people who help you deliver value will dictate whether or not you're perceived as a great leader. 

"You don't have to agree with your team, but you need to listen to them," said Vogel.

Also: 5 ways to create an effective hybrid working strategy, according to business leaders

Numerous business leaders in conversation with ZDNET emphasized how great ideas can bubble up from any level in the organization. However, while most managers think they understand the importance of listening to their teams, Vogel said some would-be executives are missing a trick.

"We see so much quiet quitting within teams," she said. "Voices are being suppressed. Managers must find ways to try and bring people's voices out."Vogel said effective managers spend quality time with their teams. They listen to their staff and live their day-to-day operational activities.

Also: 5 ways CIOs can manage the business demand for generative AI

"Ask yourself, 'Are you listening to everyone? When was the last time you visited the operation? How can you lead effectively if you have never lived that operation?'"

Vogel encouraged senior managers to create a sense of urgency. "Spend more time involving yourself in your team and listening to what's happening below the management level, so that you can bring out all the best information," she said.

"The big message is to avoid suppressing your teams -- you must spend more time listening to them. There are more intelligent people in the room that will not necessarily be you."