Effective leadership is the foundation of any successful business. For small businesses, in particular, strong leadership can be the difference between stagnation and growth. Many organizations promote employees to managerial roles based on technical expertise, but leadership requires more than industry knowledge. To drive productivity, inspire teams, and foster innovation, businesses must train managers to be leaders.
This article offers some of the most practical strategies that small businesses can implement to develop leadership skills in their managers. From mentorship programs to leadership workshops and a culture of accountability, these techniques will help shape competent, confident leaders who can effectively deal with challenges and lead teams.
Why Leadership Training Matters
In large corporations, leadership training programs are often well-funded and systematically integrated into the business structure. However, that’s not always the case for small businesses. Oftentimes, they may lack the resources for extensive leadership development programs. As a result, new managers are often left to figure out leadership on their own, leading to inconsistent team management, low morale, and high employee turnover.
The Difference Between a Manager and a Leader
A manager ensures employees meet deadlines, follow company policies, and perform assigned tasks. They focus on operational efficiency and process execution.
A leader, on the other hand, goes beyond task management. Leaders:
- Inspire and motivate employees to perform at their best.
- Foster innovation by encouraging creativity and problem-solving.
- Empower teams to take ownership of their work.
- Communicate a vision that aligns with company goals.
Small businesses need leaders—not just managers- to build a successful business. Developing leadership skills among them ensures they can drive team performance and company growth.
Ways to Train Managers to Be Leaders
Tip #1: Establish a Strong Mentorship Program
Mentorship is one of the most effective ways to develop leadership skills. A well-structured mentorship program pairs aspiring leaders with experienced professionals who can provide guidance, share insights, and offer constructive feedback.
Match Mentors and Mentees Strategically
A successful mentorship program relies on thoughtful pairing. Assign mentors based on complementary skills, personality compatibility, and leadership strengths. An effective mentor should have experience leading teams, strong communication skills, and the ability to provide both encouragement and constructive criticism.
Encourage Open Dialogue
Like any relationship, mentorship thrives on honest, two-way communication. Mentors should encourage mentees to ask questions, discuss challenges, and seek advice. They should also share personal experiences, including mistakes, to help mentees learn from real-world situations.
Set Clear Goals
Establish measurable objectives for mentorship from the jump. Define what success looks like, whether it’s improving decision-making skills, enhancing conflict resolution abilities, or gaining confidence in public speaking. Periodic progress reviews help track development and ensure the mentee is gaining valuable leadership insights.
Tip #2: Implement Leadership Workshops and Training Sessions
While hands-on experience is invaluable, formal leadership training helps managers build foundational skills they may not naturally acquire in their day-to-day roles.
Develop Emotional Intelligence
A great leader understands emotions—both their own and those of their team members. Emotional intelligence (EQ) training helps managers develop self-awareness, empathy, and interpersonal skills. This improves workplace relationships, enhances team morale, and strengthens conflict-resolution capabilities.
Improve Decision-Making and Problem-Solving Skills
Managers may face challenges that require swift, strategic decisions. Leadership workshops should include case studies, role-playing exercises, and simulations that help participants practice analyzing situations, weighing options, and making decisions under pressure.
Strengthen Communication and Active Listening
Leadership is about more than giving instructions; it’s also about understanding, engaging, and inspiring. Communication workshops should focus on:
- Delivering clear and compelling messages
- Active listening techniques
- Nonverbal communication cues
- Public speaking and persuasion skills
Tip #3: Foster a Culture Of Accountability
Leaders set the tone for accountability within an organization. When managers take full ownership of their actions and expect the same from their teams, they cultivate a workplace culture that values responsibility and integrity.
Define Roles and Responsibilities Clearly
Ambiguity leads to confusion and inefficiency. Ensure every team member, including managers, understands their role, expectations, and performance benchmarks. Clear accountability structures help managers make informed decisions and support their teams effectively.
Implement Constructive Feedback Systems
Encouraging feedback—both giving and receiving—improves performance and professional growth. Train managers to provide feedback in a way that is:
- Specific – Focus on concrete actions, not vague observations.
- Timely – Address issues promptly to prevent recurring mistakes.
- Balanced – Recognize achievements while addressing areas for improvement.
Likewise, managers should be open to receiving feedback from employees, allowing them to refine their leadership approach.
Recognize and Reward Accountability
Acknowledge managers who demonstrate accountability and inspire their teams to do the same. Whether through formal recognition programs, bonuses, or simple words of appreciation, reinforcing positive behaviors encourages a culture of ownership and responsibility.
Tip #4: Provide Opportunities For Hands-On Leadership Experience
One of the best ways to develop leadership skills is by practicing them in real-world situations. It is imperative for small businesses to create opportunities for managers to lead projects, make decisions, and handle challenges firsthand.
Assign Leadership Roles In Projects
Give managers ownership over specific initiatives, allowing them to lead cross-functional teams or oversee important company objectives. This hands-on approach builds confidence, strengthens problem-solving skills, and teaches valuable lessons about responsibility.
Encourage Decision-Making Autonomy
Empower managers to make decisions without excessive micromanagement. Providing autonomy fosters critical thinking and confidence while allowing managers to experience the real impact of their choices. Support them with guidance, but allow space for independent problem-solving.
Rotate Leadership Responsibilities
Exposing managers to different leadership scenarios strengthens adaptability. Assign them to lead other teams or handle various business functions. This broadens their perspective and prepares them for higher-level leadership roles in the future.
Tip #5: Develop a Growth-Oriented Mindset
Leadership is a continuous journey, not a destination. Encourage managers to embrace learning, seek out new knowledge, and develop skills beyond their current expertise.
Promote Continuous Learning
Provide managers with resources such as:
- Leadership books and podcasts
- Online courses and webinars
- Access to industry conferences
Support Professional Development Programs
Invest in leadership certification programs or executive education courses. Managers who continue learning are better equipped to navigate business challenges.
Encourage Self-Reflection
Leaders grow by assessing their strengths and weaknesses. Encourage managers to engage in self-reflection exercises, such as journaling, peer evaluations, or leadership assessments, to gain deeper insights into their leadership style and areas for improvement.
Tip #6: Encourage Cross-Department Collaboration
When managers are confined to their departments, they often lack insight into other teams’ challenges, goals, and workflows. Cross-department collaboration helps managers develop holistic leadership skills and strategic thinking.
Assign Managers to Cross-Department Projects
Encourage managers to work with different teams on special projects or company-wide initiatives. This fosters adaptability and strengthens problem-solving skills.
Host Interdepartmental Meetings
Regularly bring managers from different departments together to discuss challenges, share best practices, and align on business objectives.
Encourage Job Shadowing
Allow managers to shadow leaders in different business areas to gain insight into various roles. This will enhance their understanding of how their decisions impact the broader organization.
Tip #7: Develop Conflict Resolution Skills
Great leaders know how to address conflict constructively. Whether it’s resolving disputes between employees, resolving performance issues, or handling customer complaints, conflict resolution is a critical leadership skill. Without proper training, managers may avoid difficult conversations, leading to unresolved issues that impact morale and productivity.
Train Managers in Active Listening
Managers should practice active listening techniques such as:
- Paraphrasing what the other person is saying to confirm understanding.
- Asking open-ended questions to encourage deeper discussion.
- Managing their own emotions before responding to conflict.
Tip #8: Teach Managers to Coach, Not Just Supervise
A common mistake in leadership development is focusing only on oversight rather than coaching. While managers are responsible for ensuring tasks get done, leaders go a step further by coaching employees to reach their full potential.
Train Them to Ask the Right Questions
Great coaches don’t just give orders—they ask questions that help employees think critically and solve problems independently. Examples include:
- “What do you think is the best way to approach this challenge?”
- “What skills do you want to develop, and how can I support you?”
- “What lessons did you learn from this situation?”
Implement Regular One-on-One Coaching Sessions
Set up dedicated coaching meetings between managers and employees to discuss career growth, challenges, and skill development.
Recognize and Celebrate Growth
Encourage managers to acknowledge and celebrate employee progress. This reinforces positive behaviors and motivates employees to keep improving.
Tip #9: Create a Strong Leadership Culture
This serves as the final piece of leadership development. When leadership is ingrained in the company’s DNA, managers naturally develop into strong leaders.
Lead by Example
Senior leaders should model the behaviors they want managers to adopt. Demonstrating transparency, adaptability, and ethical decision-making reinforces these values.
Encourage Peer Learning
Establish leadership development groups where managers can share experiences, discuss challenges, and learn from one another.
Align Leadership with Business Goals
Leadership development should always connect back to company objectives. Managers should understand how their leadership impacts:
- Employee engagement
- Customer satisfaction
- Business profitability
When leadership development is purpose-driven, managers become more invested in their role.
Main Takeaway
Small businesses cannot afford to overlook leadership development. By implementing mentorship programs, leadership workshops, and a culture of accountability, they can effectively train managers to be leaders who inspire teams and drive business growth.
Leadership is not an innate talent—it is a skill that can be developed with the right training, mindset, and support. By fostering leadership at all levels, small businesses can create a future of confident, capable leaders who will take their organizations to new heights.
Become a Better Leader
Veteran Marketing Group proudly offers the best local leadership training in Memphis, TN. From team management courses to executive coaching sessions, our programs are designed to help managers develop the skills they need to lead confidently and effectively. Join the many businesses transforming their management teams into strong, inspiring leaders.
Learn how our leadership training programs can help you and your team!
