Lack of leadership skills ‘holding firms back’ 
 
Business leaders are failing to lead their organisations effectively when going through periods of change, new research suggests.

Consultancy firm Square Peg surveyed senior business leaders and found that half of them were unable to plan or execute ideas successfully.

It was also found that only 8% of senior management teams believe their leaders are ‘fantastic and extremely talented’ and 14% said they were ‘void of any real leadership talent.’

Over half of the participants’ leadership teams were rated as below average in their ability to plan, and of these over 30% were rated as sub-standard overall.

Of the managers surveyed, those of high performing businesses said they reviewed their assumptions and plans more frequently than low performers.

Also, successful businesses were more likely to review their budgets and forecasts on a more regular basis, according to the findings.

Doug Ross, managing director of Square Peg, said: “Leaders need to manage their organisations as dynamic, going concerns, not as bureaucratic machines that are fixed to annual cycles with distinct start and finish points.

“Leaders may need to break free from traditional fixed planning and budgeting so they can successfully prioritise and reallocate resources in real time.”

The findings also show that high performing organisations create a minimum of bureaucracy.

The respondents surveyed said that 50% of the processes and policies that businesses put in place frustrate the ‘right’ behaviours and drive the ‘wrong’ ones.

“In a world where processes can only be shortened so much, HR, Finance, Audit and other key functions will increasingly have to ensure that policies and processes enable knowledge workers rather than constraining them,” said Ross.

“Competitive advantage can be achieved by allowing people to make things happen with the speed and flexibility that market issues demand.”