When evaluating team performance, choosing the right leader can lead to improved performance.
In studies evaluating the effectiveness of three different groups: competent leader, random leader, and self managed democratic groups, the teams that had the leader with competence in the field and understanding of the technical aspects of the business outperformed the other groups. Even self managed groups outperformed the teams that had a randomly assigned leader.
I think that the key point is not trying to find the best leader, but to avoid choosing someone who does not understand the business. There are plenty of ways to improve management and leadership skills; formal education, reading, attending seminars, certifications, but that will not matter if that person does not understand enough about what the work actually is. Teams routinely choose leaders that display confidence and physical attributes, but may not possess the technical skill or understanding. These teams then lag behind because they are not able to make the best decisions. In turn, look to people that have excellent technical understanding and leverage their knowledge.
This is in line with other research that demonstrated that teams preferred leaders who had similar backgrounds to them. They felt these leaders understood them, and their role, better and were then able to be more effective in their leadership.
Take the time to understand the business and the technical aspects of what is needed to be successful. This will improve your ability to create strategy and become successful. When in a hiring position, do not just hire someone who has a degree, make sure they know the business.
"Leadership qualities" vs. competence: which matters more? Harvard Business Review, 11/5/15
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