Having strong and effective leaders in a company is vital. If a company manager lacks in the ability to guide and provide direction or coach and motivate staff members, the company’s morale can suffer. Having poor leaders can have multiple negative effects on the staff and company overall. Keep reading below to see how lousy leadership can negatively affect your business.

Financial Results

One large result of poor leadership is financial results and goal achievement. In order to optimize sales, a company needs employees who are committed to their jobs and take pride in their work. If a leader doesn’t inspire those around them to work harder, the financial results will show it and your company’s financial gains will remain stagnant.


When a company or department has lousy leadership it also inhibits the development of synergy. An effective manager will coordinate tasks in their department and help provide an atmosphere to their employees that have them focused on goals. If your management is lacking, it could show in employees’ work roles. In turn, this can cause employees to have a negative attitude towards the work they do.

Low Morale

When an employee has high morale, it shows not only in their attitude, but in their work ethic. When a company has poor leadership, it leads to a low company morale. This can lead to high turnover in employees. You don’t want to be an overly critical manager and make employees feel scrutinized, but you don’t be too laid back either and provide little guidance.

High Turnover

If a worker isn’t motivated and are unhappy at their job, they will begin looking for a new one. When you begin to lose employees, you can also begin losing profits. This can be difficult for employers to get out of once you start losing experienced employees and have to replace them with new hires.

Having inspirational, dedicated, and hard-working leaders is important for any business to succeed. As you can tell from the above, if you have lousy leaders it will be evident not only in the bottom line, but in the overall energy of the workplace.

We are Diamond Strategy Group, a leadership development and consulting company. We focus on improving the quality of leadership within organizations by utilizing the same methods MG (Retired) Mike Diamond and his consultants have used in both military and civilian sectors. We invite you to stay connected! Visit us online at www.DiamondStrategyGroup.com and connect with Mike at Diamond Strategy Group on LinkedIn, Facebook, Twitter, or e-mail us at info@diamondstrategygroup.com!

To request Mike as the keynote speaker for your next event, e-mail SEM4MD@gmail.com. Order Mike Diamond’s book, The Diamond Process, now at www.diamondstrategygroup.com/book/

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