I see firms in our area with great ideas, a solid grasp of their market and on top of other fundamentals. But they sometimes fail to achieve full potential because the person at the top lacks the qualities needed to be in charge.

Leadership is more than having the title, an idea or the money to make it happen. The leader of a business is above all calm, brave, far-sighted and can direct the activities of others. This sounds straightforward, and in some respects it is.

But in our difficult economic climate, the people at the top sometimes disappear into their own market panic and end up being managers instead, bothering too much with detail and the day-to-day whilst losing sight of their wider aims.

A leader commands, setting out the vision for a business that others will follow. Managers then direct people to make the Big Idea happen.

This is not about being Napoleon in the corner office. Current wisdom says that most effective leaders tend to be very strong in some areas, but weaker in others. Nobody is perfect. So the most successful firms have leadership teams rather than relying on one individual.

But firms do not have to be big enough for teams. Charisma helps, but the good news is that leadership skills can be nurtured. The best leaders are truthful and trusted, as well as fair in how they treat individuals.
You might think leadership needs a massive ego. Quite the reverse, in my experience.The best ones are unassuming, but confident individuals, people who are bold but emotionally stable. They also listen, really listen, before issuing instructions and charting a course for their company to sail.

It is very important to be open minded to the views of other people, and then prepared to change if a better view or strategy is presented.

There are other important qualities: Sensitivity to others, initiative, courage and an open mind. It also helps to have a positive nature. An employee needs to feel that the venture on which their livelihood may depend is driven by somebody powered by confidence.

I think there are three styles of effective leader. The first is an authoritarian, someone highly controlling, but in truth probably best for a crisis. The second is transformational, a person who encourages others and leaves them to deal with the details whilst they focus on the big picture.

The final leader is participative and seeks consensus before doing anything helping their team to feel involved. The problem with this style is that it can slow a business down and encourage too much caution.

Then there is the gender question. Do men or women make better leaders? Those of a certain television watching age might remember the old Spitting Image portrayal of Margaret Thatcher as masculine in all but gender. The sexes do often have different styles.

As a generalisation, men tend to focus on tasks and goals, whilst women think harder about tasks and relationships. But the best leaders always focus on an individual’s talent, not their background, and they work had to avoid gender bias.

So whilst not everyone sets out to be a leader, those who find themselves in that position need to think honestly whether they are good enough and work on areas where they are weak.

Mike Parkinson is a partner in accountancy firm Barnes Roffe of Cowley Mill Road, Uxbridge