Leadership and competitiveness go hand in hand

24th June 2015

Remaining competitive is high on many company agendas at the moment, but just what tools do they have at their disposal to make this happen?

The Australian Industry Group (Ai Group) revealed that strong leadership should be at the heart of every business - especially in a marketplace as fierce as it is in the modern day. However, the organisation revealed that several barriers stand in the way of firms being able to achieve this goal.

Chief Executive of the Ai Group Innes Willox said: "The evidence, from both academic research and business surveys clearly shows that workplaces with more effective leadership and management capability are more productive, profitable and innovative."

Among the issues that many managers face is that they only look at the short-term opportunities on offer. Instead, the Ai Group argues that they should be focusing their attention on development, whether it be upskilling existing members of staff or creating a productive organisational culture.

Businesses are also failing to invest in their leaders, which is money that needs to be spent for the long-term benefit of the company. This means establishing what the firm requires in order to succeed, before ensuring that its managers are able to meet these objectives.

In many cases, companies would benefit from using business intelligence software, which provides a valuable insight into their operations. From being able to keep on top of e-commerce to customer relationship management, the advantages of these products are limitless.

Australian businesses may be more willing to think about this kind of purchase at the moment, especially as confidence has improved in light of conditions in the wider economy. Roy Morgan Research's Business Confidence Index increased 9.6 points in May from the previous month following the federal budget announcement, as well as the decision to lower the cash rate.