New leaders - and sometimes more senior leaders - can find themselves in organizations and situations that are very cloudy and confusing. This problem could arise from changes in the organization’s structure, new leadership, a lack of direction, or even a new team or organization. What can a leader do to create clarity amidst the confusion?

First of all, you must define the future for the organization. Many times confusion arises from just not knowing where the organization is headed. Define the future by determining a vision and mission for the organization - and be as specific as possible. What goal do you want the organization to reach, and in what time frame? Do you need or want the organization to grow in size, revenue, or number of locations? All of these things must be described concisely in order to lift some confusion. You’ll find that by just painting a picture of what the future looks like, people will fall behind it and begin moving in the same direction. Remember that your vision is most likely a change, so expect the organization to react to change before embracing the new direction.

Next, be sure to clarify roles. This simple statement takes on quite a bit of complication because you must clarify the roles of everyone in the organization - from the front line to middle managers, as well as your own role. As a leader, your role should concentrate on the big picture and you should communicate this to the organization. While you’re clarifying roles, you may need to adjust them, as well. For example, if you’re trying to move your organization into a more leadership-based organization, you may have to define managers as team leaders - and begin changing the hierarchy. You may also find that you have to adjust roles within the organization - the person or team who was responsible for certain tasks may not be the best suited for those tasks and you may have to make adjustments. As you move down into the organization, be certain that every person is aware of his or her role - and that their questions about that role can be answered by you or another leader. With clarified roles, at least people can direct their attention to their tasks and not to the confusion that may be occurring.

Third, begin the process of developing leaders at all levels. Look at the training that currently exists in the organization. Is the training based on function only, or are there opportunities for people to grow as coaches or leaders? Can you take functional training and adjust it to create functional leaders, that is, people who excel at their normal tasks and can be used to lead others in those tasks? Examine the organization to determine if any leadership is visible at the lower levels - and spend time developing those groups. But how does this create clarity in confusion? First, creating a talent pool helps you to clarify roles. You may have emerging leaders who can now see their role within the organization - and the possibility that they can move up within the organization. Second, you’re making it clear that in order to reach the organization’s goals, each person has a chance to become a leader. So not only can people concentrate on their own tasks, they can also concentrate on how leadership skill can improve the entire organization.

You must remove hierarchies and boundaries that may have caused confusion in the past. Sometimes you’ll find that the organization may have quite a bit of redundancy in tasks and responsibilities. This not only creates confusion but it also creates less than good will amongst departments and teams. By examining who’s doing what, you can clarify the hierarchy and move to create an organization that functions efficiently. Boundaries between teams and departments can also contribute to confusion. In many organizations, teams do not have a general awareness of how they fit in with the big picture and with other teams. In fact, many individual team members may be keenly aware of his or her own tasks, but have no idea how those tasks contribute to the overall function of the organization. By breaking down the walls between teams and departments, you’ll allow everyone to see how it all fits together, as well as to expose redundancy and ineffective processes. Again, removing an old way of doing things is a change, so be sure to communicate the benefits the change at all times.

Finally, communication is the key to removing confusion - both formally and informally. On the informal side, you, as the leader, must be a constant champion of your own vision and goals for the future. In other words, you should talk about it whenever you have the chance. Be sure that lower-level organizational members hear the words coming out of your mouth - prove to them that it’s not just top-level talk. More formally, consider using a G.E. “Work Out” approach, where business units come together to solve problems and brainstorm on future efficiencies. Allow the people who do the work to communicate with you and your team - you’ll find that some of the best ideas come from that type of communication. You can also consider “town hall” type meetings, where you go to the groups and allow them to ask questions about the changes, the new vision, and the direction of the organization. Remember that communication is a two way street, so just as you communicate to the organization, allow the organization to communicate with you.

By defining the future, clarifying roles, developing leaders, removing boundaries, and opening communication, you can create clarity in the midst of confusion - and move your organization ahead.

There are probably quite a few average leaders - but there are some simple competencies that can take average to extraordinary. Getting caught up in the day-to-day can take us away from the leadership actions we need to practice, so use these six actions to become an extraordinary leader.

Focus on the big picture. Some leaders have to wear the hat of manager and leader. Some of us don’t but still find it easy to dive into the details. If you’ve taken the time to create a top team around you, keep your focus on your big picture and vision. When you do this, the organization will know that someone is always focused on the big picture - and where the organization is in relation to it. Let your team handle the smaller details - and stay focused on the big picture.

Don’t get caught in the day-to-day squabble. Organizations consistently go through forming, storming, and norming phases - whenever a team has a turnover it’s easy to start that whole process again. When teams get to the storming phase, they will probably begin to “squabble” amongst themselves over important, and not so important issues. When this happens, you must have faith that the team can work it out on its own. The temptation is to play sage leader and solve the minor infighting problems that occur and we must avoid that impulse. If a team member comes to you with a problem, offer advice but don’t offer to get involved. As leaders, we must be involved at the right times - and know when it’s the wrong time.

Be the first to act. When things get tough, the leader should be the first one to acknowledge the fact. If it’s a financial issue, be the first one to take a cut. But on the other hand, our teams sometimes forget to acknowledge success or progress. If this is the case, be the first one to acknowledge a success - even a small one. When it comes to innovation, don’t sit on an idea simply because it’s risky - examine it and move forward if it can do the same for your organization. Leadership is all about being the first one to make a move. Sometimes what separates the leaders from the rest of the crowd is their ability to step out on a limb - and lead.

Be a motivator. Somehow leaders get motivation mixed up with telling the organization what they’re doing wrong. Although that’s part of it, remember that motivation can come at any time, especially when there’s been a failure or a lack of progress. Dwight Eisenhower once said, “leadership is the art of getting someone else to do something you want done because he wants to do it”. To motivate your organization you must show the benefits of every action - and this means you have to know your teams and what they do. When people feel that they are spinning their wheels, know how to redirect them through motivation - explain how what they are doing is helping the organization reach its goals and vision. It’s been said that motivating people may be one of the hardest skills to master. But if you can show people why they’re doing what they’re doing, you’ll be a step ahead in the motivation arena.

Keep it real. We’ve all heard this expression, but for a leader it’s imperative. Keeping it real means that you have to acknowledge that life goes on outside of your organization. It’s the admission that if it all folded up in one day, you would go home to your family, pick up the pieces, and start over again. It also means that you have to keep a sense of humor - and show it to the organization. Part of getting people to follow you is showing them that you are just as human as they are - and keeping it real is a good way to do it. Don’t take yourself too seriously, either. If the joke’s on you, admit it. If you’ve made a mistake, admit it. The humanity and humility of leadership is something that will keep your organization behind you.

Value and leverage diversity. The diversity of your organization will help you keep it real. You’ve got to look for all kinds of people, with all kinds of skills, to move your organization forward and keep it competitive. The diversity of your organization also helps you keep that humanity and humility in your leadership style. But think about diversity a little further than what’s on the outside: an organization made up of people from diverse backgrounds will keep the ideas and innovations flowing. In a diverse organization, people think differently from each other - instead of all the same. In this way you can leverage diversity and keep the organization moving.

Obviously these six actions have to be tempered with other leadership competencies. But if you remember to focus on the big picture, don’t get caught up in the daily squabble, to be the first to act, be a motivator, keep it real, and value diversity, you’ll be able to change ordinary leadership into extraordinary leadership.

Leaders must take the time to be visionary, motivational, strategic, and humble. These are all admirable qualities in leaders, but what about inspiration? Leading with inspiration could be the most important characteristic of a leader - after all, without inspiration, will a leader have followers? In order to lead with inspiration, understand and act upon these ten items.

Everyone wants to be part of a team that’s bigger than they are. Your organization is made up of one large team and many smaller teams. Your role in defining teams is to keep them focused on the overall strategy, goal, or vision. You must communicate the value each individual brings to the teams - and how each individual’s hard work and determination will make them part of something great.

All team members want to be valued. This ties in with being part of a big team, but this goes further. As an organizational leader, you may have a layer or two of team leaders between you and the bulk of the people in the organization. You must be sure that each team leader communicates the value of each individual at all times. It means that accomplishment must be rewarded, progress must be recognized, and failure must be tolerated - at all levels.

Define the vision. The visionary aspect of leadership cannot be underemphasized. A leader must paint a picture of the future - what is it that the organization is supposed to be doing? What kind of excellence is expected? Is the organization going to grow, overtake a competitor, or innovate the field? A single, goal-oriented vision that takes your organization into the future can inspire great things in the organization and in individual team members. If you have a vision, make sure it’s communicated with lively language and great enthusiasm - and remember to champion your vision at every chance you get.

Show the value of each team. Just as you have to communicate the value of each individual, you must show the value of each team. In “old school” organizations, you may find that no one knows what other teams do or what value they bring to the overall function of the organization. When you take down that boundary, you’re opening up the ability to show how each team fits together - and how each team helps in accomplishing your vision. This one action alone can replace apathy with inspiration - simply because teams know how they fit into the overall strategy.

Provide for individual accomplishment. Make sure all leaders at all levels make room to recognize the accomplishments of individuals. It could be the completion of a training course, the innovation of a process, or even a promotion. Alternatively, you can provide for criteria-based recognition programs that show each individual they have something to work for. In addition, development programs also provide a path for individual accomplishment - and you should recognize them as such.

Reward and acknowledge. If you provide for individual accomplishment, you must acknowledge those accomplishments publicly. If an individual receives a recognition award, go to that person’s location and reward him or her personally. If that’s not possible, send a personal note or video. When individuals know that you are waiting to give them a nod, they’ll feel a heightened sense of ownership and responsibility. Remember that reward and recognition can go for individuals, teams, and other leaders.

Be accessible. For some reason, leadership is often seen as an ivory tower for both the leader and the organization itself. In some cases, security could be a factor in accessibility. But if you can be accessible, do it. Attend functions. Visit locations and take the time to chat with individuals at all levels of the organization. If your organization is spread out, try writing a weekly communication that lets everyone know, in a conversational tone, what you’re doing and how the organization is progressing. You can also have “town hall” style meetings where you attend in person to listen to what’s on people’s minds - and respond personally.

Take risks. Leadership is all about risk-taking. This doesn’t mean that you have to be an Indiana Jones type leader - risk is tempered with knowledge and realism. It does mean that you have to be willing to step outside the box, especially if your organization is “old school”. When you decide to take risks, explain why you’re doing it - highlight the benefits and future value of the risk you’re taking. Not only does taking a risk inspire the organization, it shows that you’re willing to accept risk as part of the growth process. You may find that members of the organization become a little more empowered, ready to speak out, and willing to think outside the box.

Place an emphasis on attitude. Learning and development, and your support of it, is very important. You must emphasize how vital it is that all individuals receive functional, soft skills, and leadership training. But you can balance this with emphasis on attitudes. Organizations often forget that part of moving forward, in addition to knowledge, is through attitude. Poor or negative attitudes coupled with the best education cannot move your organization forward. So, you must take the time to lead by example and communicate the attitudes that will make a difference in your organization.

Show your human side. Being accessible is one thing, but you must be willing to show that you are human. Approach each situation with humility - acknowledge that the organization’s success is based on everyone’s input, not just your own leadership. Take the time to be reflective in an open environment - show your fears, your pride, and your vision. Let the organization know that you are human just like they are. This type of action allows individuals to make a connection to their leaders - to see that leaders suffer from the same inadequacies and fears as they do.

Each of these actions can inspire an organization’s members to sit up, take notice, and keep moving forward. Together, these actions can transform you into an inspirational leader - and take your organization in new directions.

All of us are born with one trait in common: potential. Of course there are many potentials, but the key in dealing with potential is the stimulus and environment that brings it out. In this way, you can look at all of the members of your organization as potential leaders. It’s your job to provide the stimulus and environment that enables leaders’ potential.

First, let’s talk about leadership traits or characteristics. There are many schools of thought on which traits make the best leaders, but the most common traits tend to make sense. One trait is a sense of adventure or exploration - that’s not to say that each person has to be a Sir Edmund Hilary. It means that leaders seek out the answers in their environment, whether it’s Arctic exploration or the assembly line in a manufacturing company. Not only is there an urge to explore, but there’s also a need or desire to innovate the findings. So leaders strive to determine why things work, but also want to improve them, to make them different, to make them new. Leaders must have an ability to influence through persuasion - this doesn’t necessarily mean that each person will have a charismatic, verbal approach to persuasion, it just means that each leader, in his or her own way, will be able to influence people. Another common characteristic to leaders is the courage to speak out - if leaders see through their exploration that things could be different, they are going to say something about it instead of sitting on that bit of information. Leaders also have a strong belief and enthusiasm in themselves and what they and their organizations are doing. These are not superhuman traits and characteristics. These are also not characteristics that one is born with or not - for example, if you grew up in an environment where risk-taking was considered foolish, you may not have a belief in yourself as a risk taker. But, in the right environment, who knows what your capabilities are?

So we’ve seen that leadership characteristics are most likely inherent and can be developed in the right environment. But how do we learn leadership? First of all, we learn leadership through observation and emulation. A potential leader will be on the constant lookout for someone to emulate - and it’s your responsibility to lead the way. Some leaders learn through trial and error - think about the number of well-known inventors, authors, and even actors who have been rejected over and over again. With each rejection, these leaders adjusted something about their approach. Leaders learn through taking risks - potential leaders have already taken the time to examine their surroundings and look for ways to innovate. Taking the risk means a leader will speak out, persuade, or just make the change that leads to innovation. Finally, leaders learn through constant self-development. Leaders and potential leaders know that learning and development is a lifetime thing - it doesn’t stop when one reaches a goal or a plateau. And leaders are on the lookout for ways to develop at all times.

We’re all born with potential - and we can all develop the traits of leadership. That’s where you come in. You must create an environment that encourages leaders to be made, otherwise your leaders will rot on the vine or seek out environments that are conducive to their development. How can you provide the right environment and the right stimulus to “make” leaders?

There are many ways to encourage a leader-based and entrepreneurial environment. First, you must constantly encourage people to take action. Remember that speaking out is a leadership characteristic - your encouragement will allow people to challenge the status quo, innovate old ways of doing things, and to persuade you and others to follow them. In the same vein, you must persist with ideas that come to you. When people begin speaking out, insist that they champion the idea. When the idea gets to your level, you must persist as well. What about failure? The culture you create should tolerate failure - not reward it, but tolerate it. That is to say, failure causes people to analyze the situation and fix the mistake. When innovation occurs, reward and promote the innovators. Many organizations fall into the trap of promoting because of time served or functional knowledge. If you are going to set up an environment that promotes leadership, you must promote the ones who speak out and make change - the ones who innovate.

An interesting, and sometimes difficult, way to promote the making of leaders is to allow the “skunkworks”. When Lockheed was developing some of its groundbreaking aircraft, such as the P-38 and the U2, the “skunkworks” was an unofficial group that was pretty much free of red tape and free to work on secret projects. Management did not intervene as innovators got together under the radar to work on successful projects. How does this apply to you? Be aware that innovators will always be on the lookout for other innovators - don’t try to sanction or sponsor every team. In this environment, the “skunkworks” will allow leaders and potential leaders to speak out, try new things, and look for new ways to innovate. Finally, you can provide an environment that promotes informality, both physically and emotionally. Try to knock down some of the old hierarchies that kept people from communicating - at the same time, make sure your physical space encourages hallway meetings, collaboration, and team interaction.

Leaders are definitely made - not born. But the environment will determine whether potential leaders can develop their talents - and it’s your responsibility to provide it.

The process of identifying, recruiting, and developing talent creates great value within your organization. First, it creates a viable talent pool - a group of leaders and future leaders that you can rely on to share your vision and values and move the organization forward. On the personal side, the process gives you the ability sharpen your skills in identifying exactly what kind of talent you want to see in the organization. If you are in a constant talent identification mode, you’re going to be ready for the workforce and also keeping up with changing environments.

First, you must identify talent - but the identification starts before you look for the actual people. You must take the time to identify the competencies you’re looking for in potential talent. For example, you can look at competencies that are behavioral, attitudinal, and personal. Behavioral competencies are those that demonstrate the skill and knowledge you’re looking for - they could be skills or knowledge in certain areas that are common to your organization. Attitude and value competencies show a person’s self concept and self-perception, as well as the kind of work each person enjoys or thrives upon. Personal competencies are the traits and motivations that drive each person - these are internal factors that drive outward behavior. Look at all of the competencies shared in your organization - between yourself, your leadership team, and down the line. Once you’ve decided on the common competencies, you’ll be able to readily identify individuals who share them.

But now that you know what you’re looking for, where do you go to find it? The first place is your own network, both personal and business. You probably know people who you’ve thought of as possibilities to bring into your own organization. With your identified competencies, look at these people again and evaluate them. Believe it or not, just living your life can bring you to the identification of potential talent. When you’re interacting in the community, from the local shops and restaurants to community events, look for talent you identify with. Some organizations even provide cards telling a person that they’ve been identified as someone you want to work with. Campus recruiting is also a good way to go - you can always farm talent from the growing number of new graduates.

Recruiting is the most difficult part of the process. Your organization must be competitive in its offerings, so you have to find out what motivates your target population. You’ve identified your competencies, so which of those can be translated into a benefit of working for your organization? Money is always important, so be sure to look for industry wide salary trends and try to compete with them. But recruiting goes far beyond money - does your organization offer a flexible schedule, a relaxed working environment, or other non-tangible benefits? Think about the people with the competencies you’ve identified - and make your organization competitive by putting yourself in potential talent’s shoes.

Development is probably the most overlooked part of the process - never assume that you can keep your talent simply by bringing them in. Newer generations of workers are on the constant lookout for something better - for advancement and new skills. So this makes your development of talent extremely important. For starters, be sure that there is functional development - every person should have the tools and knowledge to do his or her job. Whether it’s classroom, online, on the job, or a combination, be sure that you’ve got this piece. Offer management training such as coaching and human resources management as a way to keep talent interested. In addition, you should be ready to assess potential leaders based on your identified competencies - find out where each person is in relation to the competencies. Once you’ve done that, you can offer leadership training as a way of enhancing your talent pool - and making sure that your talent is not walking out the door.

When looking at identifying, recruiting, and developing talent from the leadership standpoint, there are a few things to avoid. If you have a recruitment team, be sure each person is aware of these things to avoid - it’s not only your responsibility to recruit but also your responsibility to ensure that recruiters are all on the same page. First, avoid what’s known as “central tendency”, which is basically hiring talent down the middle. You want to look for talent that falls on both sides of the medium for your competencies - in other words, even though a person may not seem to be high in X Competency but is very talented in the Y competency, don’t discount them. By doing this, you’re ensuring a wide variety of talent. Avoid stereotyping. It’s a very simple command, but many people involved in recruiting may have unconscious stereotypes based on age, race, or gender. It’s illegal, yes, but nonetheless be aware of tendency in this area. Another thing to avoid is the “halo or horns” effect, which takes one item or action a person does or says and turns it into an extreme. For example, a potential talent may say that he or she went to the same school as you -and you may unconsciously award them a “halo” that doesn’t allow you to see the true depth of his or her competency. On the other hand, a person may say something about a bad habit or weakness that causes you to brand them with “horns”. Finally, avoid the “similar to me” syndrome - you do not want leaders in your organization who are just like you - variety in leadership style and competencies will go a long way.

Be aware of the difficulties and benefits of identifying, recruiting, and developing talent in your organization - when you are, you’ll have a constant pool of talent as well as a highly competent recruiting team.

When we think of leadership, many times we immediately think about senior and executive level managers. Although this is true, leadership exists at many levels below the senior one. First of all, you should examine your functional levels for emerging and existing leaders. This means that the very lowest levels of your organization will grow leaders - and you must look for them there. A functional leader is someone with a great deal of knowledge in a functional area, such as assembly lines or bank proof operators. The difference is that the functional leader uses that knowledge to empower others, solve problems, and develop his or her career. You may find that these functional leaders even exhibit more of a leadership role than their direct supervisors - and it’s up to you to decide what to do with them.

You can also look for leadership in the middle supervisory or management areas, as well as the functional supervisors. Many times our inclination is to leave this group out - they are productive, happy, and get good feedback from the people who report to them. Therefore we think that they’ve achieved their career goals - but think again. You’ll find that these middle management leaders are solving problems, championing your vision without being asked, and taking the time to motivate and inspire their workers. These leaders can be ready for advancement - and advanced leadership training. Take the time to seek them out. Obviously your senior and executive management teams are full of leaders - but it’s still your responsibility to keep them motivated, inspired, and in a leadership stance. In fact, it may be that this group is your biggest challenge - you’ve got to find a way to keep these leaders motivated even though they may have reached a staying point in their career with the organization.

So if you’ve identified these various levels of leaders, what can you do to develop, motivate, and retain them? At the functional levels, you should always offer additional functional training, whether it’s in the same area of expertise or across functions. Consider adding management and leadership courses within the function. For example, if you’ve got emerging leaders on the assembly line, develop courses that teach these leaders how to coach and motivate within the assembly line environment, using specific examples and scenarios from that area. The middle management and supervisory areas are the best places to begin leadership development in earnest. Offer management and leadership courses and seminars for anyone in these roles or anyone who is aspiring to or recommended for these roles. These learning interventions include coaching, human resources management, and leadership. Open these courses and interventions up to the functional leaders at various times, as well. In fact, you may want to consider using a leadership assessment tool to prove the leadership aptitude at the functional levels - and open the leadership development program to those individuals. This level of development motivates the functional and middle level leaders to continue working hard and developing their skills. At the executive or senior level, leadership development should take on a much more “intense” tone. For example, leaders could undergo intense team building, such as ropes courses or survival type interventions to solidify the team. Or, leaders at this level can be placed into work groups to solve real organizational problems and lead the project teams. Development at this level should be real-time and use real problems - and you can gauge the leaders’ abilities in numerous competencies. This isn’t necessarily something you or your training department should tackle alone - there are numerous consultants and firms that can help you with leadership development at the senior levels.

Now that we’ve discovered where leadership exists and how to develop it, let’s talk about why you should take the time and money to do it. First of all, you’re creating a culture of leadership. In fact, this could be one of your values - the ones you want to pass into the organization’s culture. By identifying leaders and developing them, you’re showing that the organization is dedicated to maintaining leaders - and finding new ones at all levels. Not only this, you’re extending your culture of development. Your organization may offer training of many kinds, but adding leadership development shows a high commitment to excellence.

Any time you invest in leadership development, it gives you the opportunity to create and maintain a talent pool. You’ll be amazed at how your leaders react to their development - and how you begin to put together the puzzle pieces related to talent management and succession planning. As development grows, you’ll have a constant talent pool - and the ability to rest easy knowing that your leadership needs, planned or unplanned, are already met. Finally, and most importantly, identifying and developing leaders at all levels creates and maintains a level of motivation. You’ve taken the time to outline the competencies you look for in leaders, so aspiring leaders have a way to grow. They will strive for recognition as leaders - and inspire their direct reports to do so, as well. And the fact that you recognize leaders at all levels will inspire a motivation that’s hard to achieve.

Leading an organization from the pure leadership standpoint frees you to take big actions. You can motivate, inspire, be a visionary, and develop other leaders. But for most organizational leaders, it’s necessary to lead in the cloud of business - in situations where the business itself needs your attention. Just as you can take pure leadership action, you can also take business leadership action. Not only can you set yourself apart as an organizational leader, but you can also take seven steps to set yourself apart as a business leader.

Know the difference between leadership and management. Leadership is about initiating change, focusing on the big picture, concern with overall processes, and motivation. The act of management is taking control, directing, concern with the day to day, and maintaining the status quo until another change comes around. If you’ve set up a middle leadership team that takes care of management, then you can watch the management occur. But if you’re in the situation many leaders increasingly find themselves in, that is, where you have to be manager and leader, you must be able to temper one with the other. Perhaps your management involves giving simple direction regarding your vision - and then stepping out of the way. Part of managing is the act of letting yourself step back and watch your teams take action. Knowing the differences between the two will help you keep your focus on managing in the cloud of business.

Set the bar as high as possible by redefining your market. As an organizational leader, your responsibility is to set a vision, to paint a picture of the future. Look at where the business is in relation to its competitors. Many of us work in industries where there may be four, five, or more providers of the same products and services. We have to decide that slots number one and two are the only slots for our organizations - and communicate this to the teams. Competitors in lower slots tend to take losses during a downturn, so you must insulate your business against that. As a leader, you have to look for ways to innovate the sector you’re in and redefine its market so you can stay ahead.

Encourage productivity through speed, simplicity, and self-confidence. This formula comes from G.E., where former CEO Jack Welch decided that what worked in the 80’s wouldn’t work in the 90’s - and going forward. The idea was to change the way businesses did business internally. Speed means that you have to give teams the power to make decisions or get answers within minutes. It means you’ve got to reduce red tape and give people the power to move forward based on their own analysis and research. Simplicity is just that - any ideas that come across have to be simple enough to communicate at any level. Not only this, simple messages tend to travel faster - and, according to Welch, simple designs hit the market quicker. Self-confidence comes from speed and simplicity - the old way of doing business doesn’t breed self-confidence. Leaders and team members have to focus on the speed and simplicity they can bring every day. In this structure, each new progression brings further self-confidence.

Use stretch goals. Just like redefining the market, stretching internally can change the organization’s outlook. For example, if you have a profit-sharing scheme, create tiers of profit reward for each tier of production criteria. In other words, don’t just reward the organization for increasing production by five percent. Reward one percent profit for five percent increases, two percent for six percent increases, and so on. Your goal structure, even if it’s not profit related, should tell the organization that meeting goals is great, but exceeding them is the only way to stay in the number one or two slot!

Focus on quality - inside and out. This is a simple commandment but one that’s often overlooked. Internal quality means that you must lead the charge to find efficiency and value in every internal process and procedure. It may mean that you have to open communication with the organization - and ask them to report and solve inefficiencies and redundancies. It goes back to communicating that the organization shouldn’t be doing things simply because that’s the way they’ve been done throughout history. External quality is just as important - each product and service that hits the market must have exceptional quality. One of the best ways to ensure this kind of quality is to set up your criteria for quality products and services - and link compensation and pay increases to the quality ratings. Internally, offer a portion of the savings to the person who solves complex inefficiencies. Whatever your method, a focus on quality is absolutely necessary.

Always look for ways to be more competitive. The cloud of business darkens when the competition steps ahead. You and your organization must be innovators and inventors, always on the lookout for ways to change the industry - and narrow the competition. With a spirit of open communication, along with speed, simplicity, and self-confidence, you should be able to point the organization in this direction. When you speak to the organization, remind the teams every single time that part of their responsibilities is to look for ways to innovate. Imagine an organization that’s always on its toes!

Function as a small company. This is another page out of Jack Welch’s book. Small companies move quickly, shunning red tape and always looking for the next new innovation to keep them going. Just because your organization is large in number doesn’t mean that it can’t be run like a small business. Stay away from bureaucracy and boundaries - keep teams talking, discussing, and communicating with each other. Know your customers - find out who they are, what they like, what they don’t like, and why. When you maintain a small-business mentality, you can keep the organization moving forward easily.

Remember to know the difference between leadership and management, redefine your market, encourage productivity, stretch, focus on quality, always look for ways to be competitive, and act like a small company. When you have to lead in the cloud of business, set your general leadership standards and move to these actions. You’ll find that the cloud of business can be a lucrative place to be - as long as you keep your focus and keep moving forward.