With This Four Methods

In a small business, your abilities to make effective decisions, motivate employees and develop a customer-friendly atmosphere are keys to success. Measuring leadership directly often is a challenge, though it isn’t impossible. You can implement some formal processes in your business to assess leadership effectiveness. In many cases, business results speak for themselves.

Evaluation Feedback
One of the most direct ways you can measure your leadership performance is to ask those that you lead. During typical top-down appraisals, you can ask employees to assess your performance generally or in specific areas. The problem with this approach is that employees often are reluctant to criticize in this face-to-face manner. Alternatively, you could use a 360-degree feedback system where you have all employees evaluate subordinates, colleagues and supervisors. If you have a clear, anonymous system, employees are more likely to offer genuine feedback on leadership.

External Audit
If you really want to dig deeply into leadership analysis, you could hire an external consulting firm. Some human resources consultants come in and assess your entire HR system. These consultants look at leadership systems, as well as processes and communication methods. They may also meet with employees to conduct interviews on supervisors. The benefits of a third-party assessment like this include the unbiased perspective and the creation of another format where employees may comfortably open up.

Business Results
Though not inherent, a common indicator of effective management is strong business results. If you operate a retail business, better-than-expected or growing profit supports the notion that your leadership has worked well. Over time, ineffective leadership often contributes to low employee morale, and poor or declining results. Negative morale in the work culture also may signal ineffective leadership, or at least the need to intercede.

Customer Assessments
In many organizations, leadership is hands-on. You not only lead employees, but you also make decisions and have direct involvement in the customer experience. In a small retail store, for instance, owners and managers often work directly on the floor. Thus, to assess this facet of leadership, you can use customer feedback tools. You can specifically ask about effectiveness of management, or the level of confidence customers have in the ability of leaders to create a positive atmosphere for customers. More specific criteria may apply to your business in such an assessment.

Source: smallbusiness

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