Effective leadership not only sets the strategic direction but also influences how teams operate and thrive within the company.
A strong leader in financial services understands that their influence extends beyond mere decision-making; it encompasses fostering a positive culture that aligns with the firm's values and objectives.
Leading Teams Australia partner and facilitator Gavin Mahony said professionals who can prioritise open communication, transparency, and support contribute to a more cohesive and motivated team. This environment encourages collaboration and innovation, essential for navigating the complexities of the financial sector.
“When we come under high pressure, such as high workloads or tight deadlines, or if business performance isn’t going as well as we’d like, that’s definitely when our relationships are put to the test,” Mr Mahony said.
“In my experience, when I talk to teams and leaders about why relationships matter and their role in performance, many people agree that it's nice to like the people we work with. It helps with levels of trust and respect, and it creates a good environment we want to be part of.
“While I agree with this, I believe relationships are fundamental to performance. There are key business objectives often underpinned by strong relationships. Much of this revolves around effective communication.”
When working with teams, common pain points in team performance often include miscommunication, lack of communication, or insufficient communication, according to Mr Mahony.
“Stronger relationships lead to better dialogue, more effective communication, and what we call discretionary effort,” he said,
“Great teams have great teammates, and this contributes to high levels of discretionary effort. For example, think about someone in your life with whom you have a really strong relationship, like a family member or long-time colleague. If that person got into trouble, you’d likely go out of your way to help them. Compare this to someone you don’t have a strong relationship with. Even if you don’t harbor ill will, you might be less inclined to extend discretionary effort.
“In a team setting, if someone is struggling, the inclination to support them depends on the strength of the relationships. Many people simply go through the motions at work, doing their job and leaving at the end of the day, without additional effort.”
Mr Mahony said discretionary effort, efficiency, and productivity are significantly impacted by relationships.
Disagreements and conflicts are inevitable in any team or relationship, but embracing and addressing them openly can enhance efficiency and productivity. For instance, resolving an issue quickly through open dialogue is far more effective than letting issues fester or discussing them with others who are not directly involved. Unresolved issues tend to resurface under pressure and stress.
“Retention is another crucial aspect related to relationships. People are less likely to leave good leaders and positive work environments. If I trust and respect those around me and feel they care about me, it would take a very attractive offer to make me leave,” he added.
“Therefore, investing time and effort into recruiting, retaining, developing, and nurturing employees is essential for performance. This demonstrates how relationships drive performance and contribute to the bottom line of a team and an organization.
Building greater engagement
Leadership also impacts performance by setting clear expectations and providing the necessary resources and guidance for success. Leaders who actively engage with their teams, offer constructive feedback, and recognize achievements create an atmosphere where employees feel valued and empowered, according to Care Recruitment Director, Chris Goulas.
“Not enough time was spent on things like sharing experiences of wins and losses, or even just general information sharing. It wasn’t until the leaders, including myself, drew a line in the sand that we acknowledged the need to reflect on our leadership and the environment in which we worked. We recognized the necessity of making some changes,” Mr Goulas said.
“One of the first things we did was to identify that we lacked a set of unified behavioral values or standards. We also realized that we weren’t creating enough time together as a team to strengthen our relationships. We needed a framework of agreed-upon behaviors for how we would work as individuals, improve our performance, bond as a team, and advance the business.”
Mr Goulas noted that by giving everyone a voice, it established the building blocks for developing more meaningful relationships within the team.
“Once we implemented this relational framework, the working environment shifted from one of isolation and disconnection to one where feedback and shared experiences were welcomed,” he said.
“This fostered deeper relationships and ultimately led to positive changes in behaviors and performance.”
“Investing in strong leadership is investing in the overall success of a financial services firm. Leaders who cultivate a supportive and forward-thinking culture can significantly enhance team performance and position their firms for long-term success.
“As the industry continues to evolve, the ability of leaders to inspire and guide their teams will remain a critical factor in achieving excellence.”
