11. Assessing Your Own Strengths & Weaknesses
11. Understand Your Own Leadership Gaps
Many SME owners focus on evaluating their teams but fail to take a critical look at their own leadership abilities. A business can only be as strong as its leader, and self-awareness is a crucial component of successful leadership transitions. Without a clear understanding of personal strengths and weaknesses, business owners may inadvertently become bottlenecks, fail to develop the right leadership strategies, or struggle to delegate effectively.
Owners often grapple with questions such as -
What are my strongest leadership qualities, and how do they impact my business?
Where do I struggle as a leader, and how does this affect my team?
How do my leadership strengths and weaknesses influence my ability to step back from daily operations?
What steps can I take to improve my leadership effectiveness while transitioning?
Without an honest leadership assessment, business owners may unknowingly hold back the organisation’s growth by over-relying on their own capabilities rather than developing a strong leadership team.
The Solution – A Structured Leadership Self-Assessment
Just as businesses assess team members, owners must apply the same level of scrutiny to their own leadership. A structured self-assessment can help clarify areas for improvement, inform transition strategies, and ensure leadership development aligns with business needs. The key is to take an objective approach -
Identifying Core Leadership Strengths – Recognise personal attributes that contribute to business success, such as strategic thinking, decision-making, resilience, or communication skills.
Pinpointing Leadership Weaknesses – Acknowledge areas where leadership may be lacking, such as delegation, conflict resolution, or adaptability.
Gathering External Feedback – Use 360-degree feedback from employees, peers, and mentors to gain an unbiased view of leadership effectiveness.
Comparing Leadership Style to Business Needs – Assess whether current leadership qualities align with the business’s long-term goals.
Creating a Personal Leadership Development Plan – Develop an action plan to improve weaknesses, enhance strengths, and adjust leadership involvement over time.
By applying a structured self-assessment, SME owners can develop a leadership roadmap that aligns with business growth and transition strategies.
The Impact on the Business and the Owner
For the business, a self-aware leader fosters a culture of accountability and continuous improvement. Employees are more engaged when they see leadership that acknowledges strengths and actively works to improve weaknesses. This also sets an example for future leaders, reinforcing a mindset of growth and adaptability.
For the owner, understanding personal leadership limitations allows for more effective delegation and transition planning. It ensures that gaps in leadership capabilities are filled proactively rather than reactively, enabling a smoother transition to a leadership team-driven model.
Key Considerations for SME Owners
Defining Your Leadership Role Post-Transition – What leadership qualities will still be required, and which should be transitioned to others?
Assessing Delegation Ability – Are you willing and able to delegate responsibilities effectively?
Understanding How Your Leadership Affects Culture – What impact do your leadership strengths and weaknesses have on company culture?
Building a Support Network – Have you surrounded yourself with mentors, advisors, or peer networks that provide honest feedback and guidance?
Setting Personal Development Goals – How will you ensure continued leadership growth as the business transitions?
HR Best Practice
The best business leaders invest in personal development as much as they do in team development. Companies that implement leadership coaching and executive mentoring see stronger performance from owners and senior leaders. Creating a personal development roadmap that includes leadership training, workshops, and professional coaching sessions can significantly enhance an owner’s ability to lead effectively during a transition.
Additionally, SME owners should consider personality and leadership assessments such as the DISC model, Myers-Briggs, or StrengthsFinder to gain deeper insights into their leadership tendencies and how to leverage them for the business’s benefit.
Psychological Perspective
Leadership transitions can be emotionally challenging, particularly for founders who have built a business from the ground up. Research shows that self-aware leaders experience lower stress levels, higher adaptability, and improved decision-making capabilities. Accepting that no leader is perfect—and actively working to refine leadership skills—creates a sense of confidence and stability throughout the transition process.
Additionally, business owners who take a proactive approach to leadership growth often report greater fulfillment in their post-transition roles, whether in an advisory capacity, new business ventures, or personal pursuits.
Practical Tips
Take a Leadership Self-Assessment – Use formal tools or peer reviews to identify strengths and areas for improvement.
Seek Honest Feedback – Ask employees, business partners, and mentors for candid insights into leadership performance.
Develop a Delegation Strategy – Identify specific tasks and decisions that should be transitioned to others.
Invest in Leadership Coaching – Work with an executive coach or mentor to refine leadership capabilities.
Refine Communication Skills – Strong leadership relies on clear and effective communication, particularly during transitions.
Embrace Continuous Learning – Stay engaged with new leadership strategies, business trends, and personal development practices.
Balance Strengths with a Strong Team – Surround yourself with leaders who complement your weaknesses and enhance business performance.
The Long-Term Benefits of Leadership Self-Assessment
By taking an honest approach to leadership evaluation and development, SME owners can create a stronger, more resilient business while setting themselves up for a fulfilling transition. Long-term advantages include -
More Effective Leadership – Improved decision-making and delegation strengthen overall business performance.
Smoother Transition Planning – Self-awareness ensures a more structured, successful leadership handover.
Stronger Organisational Culture – Employees respect and trust leaders who prioritise personal growth.
Increased Business Stability – A well-developed leadership team ensures continuity beyond the owner’s involvement.
Greater Personal Fulfillment – Owners who proactively develop their leadership skills find greater satisfaction in both business and post-transition opportunities.
Golden Nugget - "The best leaders never stop learning. Assessing and refining your leadership strengths and weaknesses ensures both personal growth and business success."