by Julie Tuggle-Nguyen
Leadership development is critical for all companies, but it’s especially critical for small ones. The ripple effects of losing a key leader or having an underprepared decision-maker are far more pronounced when teams are small and resources are concentrated. For small business owners, investing in the growth of your leaders is not just a strategy for success—it’s a strategy for survival.
In a small business, every leader carries significant responsibility. Losing one of them without a backup plan can disrupt operations, stall momentum, and demoralize your team. Furthermore, the decisions made by senior leaders have an outsized impact. While larger businesses might absorb a poor decision with minimal fallout, smaller organizations may experience a devastating effect.
This underscores the importance of building a strong bench of future leaders. When senior leaders are engaged, prepared, and equipped to lead, they not only protect your business but also help drive it forward. Here’s how to ensure your leadership pipeline is robust and ready for the future.
Identify and Engage Your Key Operational Leaders
Consider who are your key leaders, your second tier of leadership — the people you rely on today and are counting on for future leadership. These leaders need to be closely aligned with your strategy and goals.
- Evaluate your Bench Strength. Identify key players in your organization who have the potential to step into senior roles. These individuals should have the capacity to grow and the drive to lead.
- Engage Them in Strategy: Ensure these leaders understand your company’s vision and strategy. This helps them align their and their teams’ goals with the organization’s direction.
- Invest in Their Development: Provide training, mentorship, and opportunities for growth that will prepare them to take on more responsibility. This is essential to turning potential into performance.
Give Leaders Exposure and Responsibility
As a top leader, your role is evolving, and so must the roles of your team. Bring your second tier leaders into the fold by exposing them to broader business conversations and allowing them to take on more responsibility. Here’s how:
- Involve Them in Key Meetings: Are there strategic discussions or cross-functional meetings where your emerging leaders should participate? Giving them a seat at the table provides valuable insight and builds confidence.
- Encourage Cross-Functional Thinking: Leaders who remain siloed in their own areas will never see the bigger picture. Help them understand how their decisions affect the organization as a whole.
- Delegate Strategically: Assign meaningful projects that challenge them to stretch their skills while contributing to the company’s success.
Protect Your Business and Grow Your People
Losing a key leader unexpectedly can cripple your company. To mitigate this risk, focus on retention and engagement.
- Retain Your Talent: Build a culture that values and supports your leaders, making them less likely to seek opportunities elsewhere.
- Reduce Vulnerability: Identify gaps in your leadership pipeline and address them proactively. Ensure you have successors ready to step up when needed.
- Align Goals with Strategy: Help your leaders set meaningful goals that drive the business forward, rather than focusing solely on tactical execution.
Build a Culture of Continuous Development
Foster an environment that values and prioritizes ongoing learning. At Midwest BankCentre, we created a Strategic Operations Committee to support leadership development. This group brings senior leaders together with the executive team to present on their key functions, learn comprehensive strategies outside of their areas, build connections with fellow up-and-coming leaders, and get exposure to the executive team. This structure provides dual benefits: senior leaders gain invaluable experience and insight, while the executive team observes their capabilities and leadership potential.
Start Planning for the Future Today
As you look ahead into the new year, take a critical look at your leadership pipeline. Ask yourself: Who are my key leaders, and what am I doing to develop them? How can I ensure they fully understand our business strategy? How can I provide opportunities for growth so they’re truly ready when I need them to take on more?
The time to act is now. Leadership development is not just about preparing for the future—it’s about advancing the business you’ve worked so hard to build. By intentionally investing in your leaders, you protect your organization, empower your team, and set the stage for sustainable success.
Julie Tuggle-Nguyen is Chief Human Resources Officer at Midwest BankCentre.