Going Beyond Start-Up: The Importance of Personality, Leadership and Culture in Building a Business (Part 1 of 3)
Congratulations!
If you’re reading this, you have started a business or are considering starting a business. You would have arrived at this decision after considering the risks ahead and weighing those against the potential rewards. So again, congratulations
At the start the priority is often on the product or service that will provide value, for which someone will ultimately pay. You would have completed your analysis of the market and identified possible customer segments. You also know your competitor’s strengths and weaknesses in relation to your own (SWOT Analysis).
The other, perhaps more important priority is to if you have the required behaviours to realize your vision (dream) and go beyond start-up: build a viable business that continues to produce value and profits or create a business that may be attractive to someone willing to buy it for the right multiple.
In this 3-part series, we will focus on bringing awareness to the more abstract and behavioural aspects of building a business, by discussing:
- How your personality can affect your business,
- How your leadership style influences the culture and
- The role culture plays in a business.
Personality (a brief explanation)
Personality can be described as the psychological characteristics that influence how individuals interact with their environment and how they feel, think, and behave (Organizational Behaviour, Johns and Saks, 2023). There are five (5) types of personality based on the Big 5 Personality Traits. These personality traits are on a spectrum so there are Low and High levels. Also, they are not mutually exclusive; if you are Extroverted, you can also be Conscientious.
Each personality trait can provide advantages and disadvantages to a business. Openness is associated with being creative and finding innovative approaches to solving a problem. However, it can also result in a lack of focus, inaction and taking un-calculated risks. Being Agreeable will allow someone to be willing to compromise and be receptive to feedback. Conversely, it can cause some to be reluctant to change (less adaptable) and defensive to receiving feedback about their performance, resulting in Blindspots.
Personality: The Goggins Example
Personality can also affect the performance of the business. David Goggins, the famous ultramarathon runner, ultra-distance cyclist and triathlete, can be described as someone with a high level of General Self Efficacy (GSE), which is an individual’s belief in their ability to be successful in challenging and stressful situations (National Institute of Health (NIH)).
David Goggins completed over 60 ultra-marathons, triathlons, and ultra-triathlons, setting new course records and regularly placing in the top five. He once held the Guinness World Record for pull-ups completing 4,030 in 17 hours.
A high level of GSE would be considered an asset for a business owner and help you overcome the challenges ahead. But when managing a team of employees, this trait can be a liability, as your belief in being able to be successful in challenging situations can be projected onto your team, and your team may not share the same beliefs.
“If I can do it, why can’t they do it?”
This belief can be a consequence of a high level of GSE. That mindset often leads to burnout, a decline in employee morale, lower job satisfaction, a decrease in productivity, and a negative impact on overall organizational performance.
What to do?
- Be aware of your personality traits. Here’s a link to a free test Big Five Personality Test. Understand your strengths and weaknesses:
- In which scenarios would your traits be helpful in making a decision or solving a problem?
- Which situations would your traits hurt the outcome and how would you prevent that impact?
2. Feel comfortable sharing your personality traits with your team. Let them know what you’re good at and no-so-good at doing.
3. Monitor and make adjustments, if needed, for how you respond to different situations.
4. Do not be overly concerned about your personality, but be mindful that it can sometimes have a less desired outcome than you intended.
In the next post, we’ll discuss how your Leadership style affects your business. //
