Do you have a new startup? If the answer is “yes,” there is no doubt that you have dreams of growing it into a multinational. However, it is important to appreciate that 20% of new enterprises fail after two years of commencing, 45% in five years, and 65% in their first ten years. These facts are disturbing, and it is important to ask the question, “Why?” In this post, we will list the main leadership mistakes that you should know to avoid failure after starting an industrial venture. 

Taking the Commander Mindset 

Many new leaders get tempted to adopt the perfectionism model of operation, believing that it can help them realize their targeted objectives with ease. However, this is a serious mistake that can easily bring down an organization within a very short time.  The main problem with this type of leadership is that the leader becomes a type of “commander,” making the employees simply follow instead of getting engaged innovatively. Ultimately, the workplace becomes toxic, and your organization’s productivity and profits are likely to take a downtrend. 

To avoid the dangerous outcome for your business, it is advisable to adopt a leadership model that is based on collaboration. By bringing everyone on board, your ideas will be enriched, and employees will want to make the organization more successful. See, it will no longer be about executing instructions but putting more effort to make the entire organization move ahead. 

Poor Communication 

An industrial facility strongly relies on the effective flow of information for smooth operations. Particularly, how a leader communicates the mission and policies of an organization is very important because it should help define what individual departments do. Therefore, if the communication is poor, different departments are likely to make goals that are not cohesive. 

To make communication effective, it is paramount to adopt multiple channels of relaying messages. For example, you can plan to hold regular meetings with the entire team to brainstorm and bond together. You should also keep the channels of communication, such as emails, live chats, and phone calls, open. Remember that it is not enough to always relax in the office and wait for reports; join your team at their workstations, be they the packing line, chemical mixing units, or accounts, to understand their experiences. 

Prioritizing Processes as Opposed to People

While it is true that automation, machinery, and devices used in manufacturing are very important, they cannot entirely run without the people. Whether you have a very lean team or the bulk of your work is done manually, giving priority to processes than people is likely to result in failure. Your employees are likely to get disconnected and only come to work to meet business targets as opposed to creatively helping the organization to grow. They will also be resistant to change. 

If you prioritize people, they will own the process and work hard to ensure it becomes successful. Instead of resisting change in your industrial organization, they will become its drivers. This might become one of the most important pillars to the success of your organization. 

Follow In the Footsteps of Top Industrialists: Iskander Makhmudov

Now that you have seen the main mistakes that people make and how to avoid them, there is one more thing to become successful as an industrialist – following other top investors. One of the top examples is Iskander Makhmudov, the founder of Ural Metallurgical Mining Company (UMMC). The success of more than 40 mining companies under UMMC and spread across the globe is a demonstration of his successful career as an industrialist. From sourcing funds to support the venture to developing the best teams, Makhmudov is an icon you can look to become equally successful. As a new entrepreneur, it is important to appreciate that industrial operations can be challenging because there are so many requirements. However, you can become successful by learning from the mistakes of those who came before you. More importantly, ensure to follow in the footsteps of the most successful industrialists, such as Iskander Makhmudov.