Leadership In A Small Company

Looking down at the most liked posts on LinkedIn, it is apparent that thoughts on leadership interest us more than any other management topic.

For good reason too, work is where we spend most of our lives and having a great boss is probably the biggest influence on whether we enjoy our time at work. Other than questioning whether these thoughts are overly idealistic and a little too cliched, you cannot argue with the sentiment of every thought in this list. I too had a great boss whom I am grateful for starting my career off with such enjoyment and fun.

The principles and practices discussed in these articles et al apply equally to small company leadership as they do to leading in larger more complex organisations. However, leading within a small company has many unique challenges that are not present in larger organizations. These challenges affect the leadership style needed to run a successful SME. I want to concentrate on one specific difference between running a small company and a much larger one. Owning and running an SME is for life. Until the day I sell my company, I will be connected in some way to every employee.

Like having children, you cannot walk away from them no matter what circumstance you find yourself in. I have a dear friend who is just about to start his new role as the CEO, after completing four years working for another company as their CEO. He is an incredible strategist and great leader who turns companies around and then moves on to the next challenge. Whilst a great leader with immense integrity he can move away from his company with no strings attached.

For over thirty years I have managed a small team of people, who have been incredibly loyal to me, and who have become more like an extended family than employees that I pay to work for me. So how does this context change my style of leadership?

I hope that I have exhibited all the qualities that you would expect from a good leader, whether managing a large multinational company or a much smaller company. If our retention of staff is any form of barometer to this then I have succeeded in nurturing an environment that people want to stay in even when there is an alternative job. The key difference is that I feel a sense of long-term responsibility to my employees that cannot be erased easily. (if at all) I believe this phenomenon has made me less selfish and more selfless, exactly like the intrinsic change I felt after having children. Consequently, leadership becomes more paternal and less mechanical when you cannot walk away from people. You have to live with the consequences of your decisions and how they play out in other people's lives over the long term. This brings out a more caring attitude within you and reduces any thoughts of being ruthless. Commercially, I want to point out that this context does not necessarily underpin making soft decisions and avoiding tough love for the majority.

There have been times when this sense of responsibility has underpinned some good strategic decisions. Before repositioning Connell of Sheffield, it would have been easy to succumb to importing a range of leather products rather than make the strategic changes we did. Closing down that side of the company would have been beyond hard emotionally due to the loyalty of the staff working in difficult conditions; my business partner and I felt they deserved our effort, well beyond the business unit making a loss. This proved a good decision and I have discussed the success of this company in my previous articles. This is leadership in a small company; fighting for jobs of loyal staff well before any cost-reducing measures are taken, even if this means self-sacrifice. You look for alternative paths that bit harder knowing that these people are so connected with you. I think running a small company sharpens your senses in many ways and not least of all your moral compass.