If you think about it, running a business really isn’t that difficult. I mean, it breaks down to be as simple as:

Now, how complicated can that be, right?

If you would just take a look at the many companies around, apparently, this is not as easy as it looks. To keep a business running smoothly, to keep a team running smoothly; there are processes and controls that need to be in place. To be a good leader, you must be familiar with how it all works.

Can you imagine not knowing how money is collected? You think it is as easy as picking up the phone, asking for the accounts department, quoting your invoice number and viola! you are paid? Maybe. But do you know for sure?

You must be intimately familiar with how things are run. The higher up you are in the organisation, the more you need to have a feel of things in general. Let me clarify something here. Being an expert at all things operational can sometimes make leaders into “micro managers”. These are the bosses who seem to be breathing down everyone’s necks, either telling them what to do, or how to do it. Love those, eh?

The leader needs to understand and be comfortable with the operations. This will enable him to see solutions when problems arise and to spot opportunities. It will require a heavy text to go through all the various details, but know this – operational competency will make you a better leader.

One other word of caution – don’t abuse others with your operational competency. Allow others to do their work, their way. A leader is not there to tell everyone what and how to do. The good leader allows his team to work their way out of challenges and to be on hand to assist and guide.