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Three Key Features Of An Effective Leader


The purpose and strategic direction of an organisation lies at the heart of impactful leadership, says Saara Bange, Associate Director at Aalto University Executive Education.


Based on the leadership framework at Aalto University Executive Education, Bange says that the knowledge, skills and competencies of an effective leader come down to three key factors; sensemaking and interpreting, adapting and aligning, renewing and growing.


A key skill of a leader is to break down information and use it as an aid for decision making – sensemaking and interpretation is key for this as it describes the way we make sense of the world around us.


The leader’s task is to ask; What is happening? What will happen? Which beliefs will influence the events? It is necessary to understand and accept that the answers will never be perfect, says Bange.


She adds that this imperfection cannot paralyze decision-making and execution which brings us to the second factor; adapting and aligning.


This refers to a leader’s ability to adapt activities to the surrounding reality as it is interpreted – the company strategy, context, and events on both a micro and macro level.


On an individual level, it means that leaders who are aware of their behavioural styles and ways of making sense of the world can use that knowledge to adapt to the situation.


The third skill is renewing and growing – this is both the leader’s personal renewal and the impact on organizational renewal and growth. Bange says that this may require challenging both the leader’s own and the organization’s mindsets.


She adds that adapting and aligning involves continual development, whereas renewing and growing refer to a leader’s ability to respond to sporadic, surprising changes in the operating environment.


“It is important to remember that leadership never takes place in a vacuum; the organizational and wider context exist along the perimeters of leadership.”

“Even the most skilled leader is unable to leave a positive imprint without structures and frameworks that support leadership. The collective capabilities, knowledge, and skills of the organization set the conditions for a leader’s activities,” says Bange.


By strengthening these knowledge, skills and individual competences, Bange believes leaders can become more effective and leave their mark – on the team, organization, and surrounding society.

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FBU continues to expand and has a growing membership base around the world. Recognised as THE family business champions we have also gained recognition in both of the Top 100 Global Family Business Influencers list compiled by Family Capital. We are also the VOICE of the family business community, celebrating their contribution throughout the UK and beyond.

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Family Business United (‘FBU’) is an unparalleled rallying point and voice for the global family business community and an invaluable source of insight into the sector.  FBU is a resource for all, family businesses of all sizes and sectors, and their advisers, helping to raise the profile of the family business sector and to encourage greater awareness of the contribution that family firms make to the global economy through employment, income generation, wealth creation and charitable endeavours.

At FBU, everything we do is about the family business, creating the best resource available to help families in business get access to the resources and support they need to continue their family business journey, wherever it will take them.

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