When it comes to companies that succeed in the marketplace and those that stagnate and fail, the difference lies in how their chief executives motivate and lead the people under them.

When the creative thought leaders in a company set an example for others to follow, it usually leads it to amazing places.

For example, Charles Phillips, Infor CEO, took a company that was floundering and turned into an industry leader in the cloud computing space by refocusing the core business on SaaS apps that are now seeing impressive year-over-year growth.

If you want to learn how to lead a company to success, check out our tips for how to be an effective business leader below…

1) They set out a vision – and they make sure everyone knows it

When it comes to attaining success as a company, it is imperative that everyone knows where they are going.

If there isn’t a road map that everyone can look at and adapt their efforts in accordance to what they see, employees will flop and flounder around in much the same way that a rudderless boat will do on the swells of an open ocean.

By crafting a vision statement that spells out in no uncertain terms of what a company’s objective is, everyone from the CEO to the mail room staffers will know what is expected of them.

This will govern their behavior in a way that will help advance the company rather than hold it back.

2) Their communication skills are on point

An effective business leader is good at what they do not because they are a superhero that gets everything done themselves, but because they are able to communicate in an effective manner to the people around them.

By not clouding their intentions in obtuse business speak, employees will know what is expected of them, and what is happening at all times.

Also, they are able to influence clients and peers in order to get what they want, which is a skill that will benefit the company as a whole.

3) They are focused on excellence

Business leaders aren’t satisfied with good enough – they always aim for the best, and then they get up the next day and try to better that standard.

Mediocrity is a disease that can cripple a company, as more motivated competitors will lap them in due time.

Whatever your habits are on the job, the people that work under you will take their cues from you. If you are motivated with your eyes on the prize, most will follow your lead.

If you look like you are going through the motions and don’t care, others will more likely to slack off, as they perceive it to be acceptable behavior.

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