Leadership depends on so much more than technical skill. This theme has been echoing over and over recently in my work with my clients and in my reading. Sure, the small business owner has to act like a CEO. In other words, be able to know the nuts and bolts of how the business operates, use good communication skills, set the vision and mission, facilitate the overall strategy with the executive team, foster the corporate culture, nourish an entrepreneurial mindset, and model good  management skills. But it’s not how skilled you are at taking financial statements and turning them into a strategic plan that people remember most. It’s who you are. It’s the intangible skills that use emotional intelligence that makes your business hum or whimper. It always comes back to your values, your ability to connect, and your behavior. In other words, character.

In a small business, leadership can be a potent combination of petri dish and crucible. It takes a highly confident person to lead a small business, particularly through times of change. Employees see you for the person you are as there are fewer layers in the organizational chart.It can be daunting to make strategic plans that include products or services that have never been done by your company before. Given the recession that started in 2008 and the current “will it/won’t it” recovery of the economy, some of you have been faced with letting go of people who have been part of your company. If you’re feeling like you are on the hot seat, well…

You are being watched. No, this is not a good time to get paranoid, however tempting. Your team, your board, your employees, and your community are watching you for inspiration and results. They want you to be successful. John C. Maxwell in the tenth edition of The 21 Irrefutable Laws of Leadership writes “To build trust, a leader must exhibit competence, connection, and character.”

One bad example-There is a small business leader I know who has an amazing ability to infuriate people. She runs a successful business and her immediate staff speak highly of her. However, in business networking groups and other community organizations, she acts in a way that makes it so hard to volunteer with her. She demands allowances for personal issues, says she will do something but does not follow through, and gossips about other people behind their backs.

One good example-Another small business owner I know goes out of her way to foster positive relationships with her clients and her staff. Somehow she almost always finds time to talk and catch up with someone. There are stories of her sending people home when they are ill or have a family issue to deal with and acting as their substitute. Her postitive attitude and boundless energy are infectious and she is instrumental in mentoring small business owners. She is always on the lookout for new ideas that will improve her skills, enhance what her business offers, and support the growth of other small business owners.

Both of these small business owners appear successful on the surface. Which example is most like you? Aren’t there enough dysfunctional organizations out there? Most leaders don’t take on their roles because they feel it is necessary to denigrate others nor do they aim to seem indecisive and fearful. What about you?

How do you want to be seen?

What are you doing that keeps you consistent with your values and intentions?

What (or who) keeps you honest as you develop your leadership skills?

“Are you gonna go my way?”

Challenge or invitation? As a leader of a small organization, how do you expect your team to go along with you? This isn’t about you becoming a tyrant or the boss from hell! That smacks a little too much of the Red Queen from Alice in Wonderland. Great leaders understand how use their desire and authority to create a positive culture which makes people want to work for them and grow the business.

Founders believe their idea is something that will “engage and rearrange and turn the world back to one.” There is a level of passion you possess and there are people in your organization that believe in who you are or in the idea. It can be intimidating to step up and become more than just the chief technologist. You are the one who advocates for how your vision is going to make your business an industry leader (even the industry leader) and make a decent profit. The most powerful way to get your message across is to make it part of your everyday actions. In fact, you have to testify, witness, to its power and wonder.

Lenny Kravitz has a consistent message in his music. He sings about love in almost every song and has done this throughout his career. Just listen to his greatest hits album to hear this theme. This is a manifestation of his vision. He knows the power and wonder of his message. What is he doing that you can use for yourself?

• Choose to inhabit who you are. Lenny Kravitz has a reputation for not getting caught up in the whole rockstar thing. That doesn’t mean he doesn’t turn it on when he has to or wants to. You are the leader of your organization. This doesn’t mean that to be effective you have to be highly charismatic. Be yourself and step it up when you have to. Shying away from this responsibility leaves your team without a pilot. They need your confidence and assurance that this a great idea worth commercializing along with your willingness to stretch your skills to include the unsexy parts of managment.
• Have fun. It’s amazing how inspiring it is to have lunch together or simply asking, “how’s it going?” with your full attention. People desire a work environment that encourages them and allows them to work without fear or stress. You will get so much information about what parts of your business are functioning smoothly and what parts need your direct attention.

When you step beyond the role of the chief technologist/architect/worker bee to become CEO, you are choosing roles such as visionary, manager, and strategist. Getting people used to your new and very different role is tough. A current client is now going through the process of identifying which jobs he can delegate. One thing that makes this tough is that he is redefining what his role will entail. Another thing that makes this tough is the business is not quite big enough for him to completely inhabit his role as CEO. His organization needs his faith and determination.

Keeping the faith is crucial to going forward. This is where you witness to the desire, belief, and joy you get out of your Big Idea and vision. It isn’t when things are going well or even poorly that your team needs your enthusiasm or stability. It’s during the mundane of the days and weeks as you work on projects. The slog of the regular workday can be deflating because there isn’t anything to fight against or push against. This is the easy way to inspire people to action. The harder way is that the message that every small step brings you closer to accomplishing the goal.

While Lenny Kravitz may not be the first person you think of as an inspiration as a business guru but he’s got the question you need to ask your team: “Are you gonna go my way because I got to know.”

What are you doing to inspire your team already?

Are you issuing a challenge or an invitation to go your way?