The Two Most Important Keys to Effective Leadership

According to a study by the Hay Group, a global management consultancy, there are 75 key components of employee satisfaction (Lamb, McKee, 2004). They found that:

• Trust and confidence in top leadership was the single most reliable predictor of employee satisfaction in an organization.

• Effective communication by leadership in three critical areas was the key to winning organizational trust and confidence:
  

1. Helping employees understand the company's overall business strategy.

2. Helping employees understand how they contribute to achieving key business objectives.

3. Sharing information with employees on both how the company is doing and how an employee's own division is doing — relative to strategic business objectives.

So in a nutshell — you must be trustworthy and you have to be able to communicate a vision of where the organization needs to go. The next section, Principles of Leadership, ties in closely with this key concept.