Seven rules for leading a business

There has been extensive discussion in the academic world as to whether leadership is innate in a person or whether it can be learned.

By observing people acknowledged as leaders, there is certainly one common characteristic - leaders take action.

Observation would indicate seven common characteristics that are integral to business leaders and to business success; whether the leader is involved in a major company or whether the leader is responsible for a small entrepreneurial company. Also, whether the characteristics are consciously utilized by the person.

1. Have a clear vision.

Communicate and test by speaking in grade-school terms so everyone easily understands the communication.

In "Alice in Wonderland," when Alice came to a fork in the road and couldn't decide which way to go, Alice asked the Cheshire cat for advice. The cat asks her where she is going and Alice says she doesn't know. The cat responds, "Then it doesn't matter which way you go."

If everyone on the team does not know where you are "leading" them, then there is no doubt they will go different ways, making it difficult to achieve success.

2. Always be curious.

Have a sense of history and learn from the experiences of those who preceded in similar situations. At the same time, look to the future for upcoming trends. Make sure you have an awareness of what's going on around you. Read books and articles across a diverse range of disciplines to keep an open mind on issues that may impact your business.

3. Provide consistency in customer service.

No matter what business you're in - you must recognize who your customer is and make it a priority to consistently satisfy their needs.

4. Understand the purpose of your company.

Leaders focus on making sure their business only provides goods and services consistent with the company's vision.

5. Identify the uniqueness of your business.

Leaders put emphasis on differentiating their business. They understand and promote why their products and services provide better solutions than anyone else.

Volvo recognized there was an important number of car buyers who needed more than a car. Their perceived need was for reliability and safety. This became "the soul" of Volvo's uniqueness in the auto industry.

6. Set the example.

Leaders visibly get out front and do something consistent with their vision of the business.

A lot of people have ideas, but there are few who decide to do something about them now. A vision without action is merely a dream. Action without a vision just passes the time. However, a leader provides a vision with his or her example of action to successfully change the business.

7. Leaders show passion.

It's of tremendous importance. Unless you truly love what you are doing, unless you love getting up every morning to take your business to its next level, you'll not only be limiting the performance of your employees but you will also not be doing a service to your customers.

Iain Macfarlane is the president and founder of BizCOACHING & Associates in Madison, a franchise of Action International. He was named "Coach of the Year 2005."