SME leaders can’t afford to ignore feedback, here’s how to keep it flowing

Ignoring feedback is like steering a ship in a storm without radar — you might be heading for trouble but won't know it until it's too late.

As discussed in the preceding few columns, effective leadership is essential for the success of any enterprise. A key aspect of good leadership is the ability to seek and embrace feedback. Leaders who ignore feedback do so at their peril, as it can lead to a host of problems, including decreased employee morale, hindered innovation, and even financial setbacks. This article will address the grave mistake of ignoring feedback in leadership and suggest some guidelines to address it.

Good leaders know feedback is a valuable tool to use since it allows them to gauge the health of their organisation, understand the concerns of the employees, and make data-driven decisions. Ignoring feedback is akin to steering a ship in a dense fog without radar; you might be heading for trouble, but you won't know it until it's too late.

Take, for instance, Blockbuster, a once-dominant force in the video rental industry. Its leadership totally failed to heed feedback. In the early 2000s, as the Internet revolutionised the way people consumed media, Blockbuster had the opportunity to acquire Netflix for a mere $50 million. However, its leadership dismissed the idea, claiming that people would always want to visit physical stores to rent movies. This refusal to consider feedback on changing consumer preferences ultimately led to its demise while Netflix continued to grow, leveraging customer feedback to offer streaming services.

As another classic case, take Nokia, once a global leader in mobile phone manufacturing. When the first iPhone was launched, the Nokia chief executive officer (CEO) arrogantly said no one could unseat the largest mobile phone seller. Nokia failed to adapt and innovate despite the success of Apple. Their leadership downplayed the significance of touchscreens and the app ecosystem, ignoring feedback from their engineers and market signals. This resulted in Nokia's decline and eventual sale to Microsoft. Blackberry is another example of the mobile phone industry failing to consider feedback.

There are numerous other examples of failures by leaders to take feedback for improvement. Ignoring feedback can lead to a multitude of problems for leaders and their enterprises.

Smart Growth

When employees feel that their input is disregarded, they become demotivated and disengaged. This can negatively impact their performance, creativity, and loyalty. Second, innovation often stems from feedback and new perspectives. Ignoring feedback can hinder an organisation's ability to adapt to changing markets and stay competitive. Third, critical feedback can provide insights into emerging trends and customer needs, and ignoring this can result in missed opportunities for the business. Finally, ignoring feedback from customers, employees, or other stakeholders can tarnish a leader's reputation and erode trust within the enterprise.

Here are 10 best practices from great leaders to rectify the mistake of ignoring feedback. SME leaders can quickly master this skill and become more effective leaders.

1 Create a culture of openness: Encourage open communication within your organisation. Make sure that your employees and team members feel comfortable providing feedback without fear of reprisal.

2 Implement feedback channels: Establish formal channels for feedback, such as suggestion boxes, surveys, or regular one-on-one meetings. Consistent feedback mechanisms will ensure that you receive a steady flow of information that can be used to drive positive change.

3 Act on feedback promptly: When feedback is received, take prompt action. Show your team that their insights are not only heard but also put into practice when appropriate. This will help build trust and confidence in your leadership.

4 Involve stakeholders: In addition to employee feedback, seek input from customers, suppliers, and other relevant stakeholders. They often have unique perspectives that can help you make informed decisions and improve your brand.

5 Use feedback as a learning opportunity: It is a good source of learning and improvement. Acknowledge your mistakes and the areas where your leadership may have fallen short. Communicate your commitment to growth and change based on the feedback received.

6 Set measurable goals: Transform feedback into actionable goals. Create SMART (Specific, Measurable, Achievable, Relevant, Time-bound) objectives that address the issues raised. This ensures that your response to feedback is systematic and result-driven.

7 Monitor progress and adapt: Regularly assess progress towards achieving the goals set in response to feedback. Be willing to adjust your plans and tactics based on ongoing feedback and changing circumstances.

8 Communicate changes transparently: Keep your team informed about the changes and improvements being made in response to feedback. Transparency will build confidence in your leadership and help everyone see the tangible benefits of their input.

9 Lead by example: Showcase the importance of feedback by actively seeking it and demonstrating how you use it to make decisions and drive progress. When your team sees that you value feedback, they will be more inclined to participate.

10 Seek external expertise: Sometimes, it's beneficial to bring in external experts or consultants who can provide an objective assessment of your organisation. They can help identify areas for improvement and provide unbiased feedback.

For leaders of small and medium enterprises (SMEs), rectifying the mistake of ignoring feedback is a crucial step towards building growth and success. Feedback is a powerful tool that can guide your decision-making, improve your products and services, and enhance employee satisfaction.