The Habits of Highly Effective Leaders

How Strong Leadership Impacts the Bottom Line

Organizations of all shapes and sizes are under immense pressure to retain good talent.

High employee turnover can directly impact a company’s bottom line—with many studies suggesting poor leadership is one of the main causes.

Today’s infographic from Online PhD Degrees explores what it takes to be an strong leader, and the behaviors of poor leaders that should be avoided at all costs.

In today’s rapidly changing world, how can the qualities of a strong leader positively shape a company’s future?

The Benefits of Investing in Leadership

Effective leadership is worth its weight in gold, with 58% of employees claiming they would choose having a great boss over a higher salary.

Not only that, 94% of employees with great bosses feel passionate about their jobーnearly twice as many as those working for a bad boss. A strong leader increases employee loyalty, creating a conducive environment for reaching a company’s goals.

In fact, research shows that companies with strong leaders are crucial when it comes to outperforming industry competitors and are three times more prepared to react to the speed of change. Moreover, a company with a strong leader is almost five times more likely to have higher customer engagement and retention rates.

How to Lead Effectively

While each company has its own processes and demands different skill sets, there are core behaviors that separate leaders from managers:

• Clear Purpose: Clearly articulating the company’s future vision to all levels of staff in a clear and concise way.
• Contagious Passion: While managers light fires under people to motivate them, leaders light fires in people.
• Self-Accountability: The expectation to work harder than employees and set a standard of excellence.
• Flexible Determination: Leaders are agile and open to change.
• Sustainable Outlook: Focusing on long-term goals proves to a team that a leader is invested in the long-haul.
• Dual Focus: Beyond thinking big picture, leaders provide employees with a clear and actionable strategy for success.

Effective leaders are born from this combination of behaviors. However, one of them has the farthest-reaching impact, both on employees and a company’s bottom line: purpose.

Purpose and Performance

The Global Leadership Forecast finds that a strong and well-executed purpose can build organizational resilience and improve long-term financial performance.



Leaders who amplify an organization’s purpose create a culture of optimism where employees feel safe in proposing new ideas that will shape the trajectory of a company.

The Future of Leadership

To stay competitive, continuous learning and re-skilling should be at the heart of every organization’s leadership strategy. Leaders of the future should possess the ability to redesign jobs in a more fluid way and lean in to the changing nature of work.

“If we don’t disrupt our business, somebody else is going to do it for us.”

—McKinsey Analysts

While management is a foundational skill, organizations need to invest in their leaders to ensure constant growth. Embracing the traits of an effective leader can not only provide improved returns—it also empowers organizations to thrive in an uncertain future.