There are successful businesses of every size, in every location and in every industry, but they all have one very important thing in common — effective leadership.

Effective leadership meets the needs of the team to ensure maximum productivity, guides the team through changes and evolutions, helps to resolve internal and external conflicts, impacts morale and employee happiness, and sets the stage for a positive work environment.

The quality of the leadership within your organization can make or break your success. It’s critical to be able to recognize the difference between good leaders and bad leaders. Here’s how:

The difference between good leaders and bad leaders

Bad leaders focus too much on making friends

Bad leaders want to be your friend. Unfortunately, it can be difficult to truly lead a friend. In order to be an effective leader, you have to take the friend hat off.

With effective leadership, you can’t be afraid of hurting people’s feelings. That’s not to say that you should be insensitive. Sometimes, the truth is a little ugly, but it still has to come to light — just in the right way.

If you’re always worried about being liked and seen as a friend, it makes having difficult conversations even harder.

Good leaders communicate effectively

If there’s one thing that good leaders are accustomed to, it’s being uncomfortable. Being honest with your team and leading effectively are not always comfortable, easy things to do for most people.

Whether it’s that you don’t know an answer to a question or why a policy change is occurring, it’s important to tell the truth and communicate openly with your team.

Your team should never have to wonder what’s on your mind or if their performance is up to par. If you’re communicating effectively, your team always knows the score.

Bad leaders avoid confrontation

Everyone is different, but most people aren’t overly fond of confrontation — so much so that many actively try to avoid it at all costs. Bad leaders give in to that instinct to avoid confrontation.

However, good leaders understand that, sometimes, confrontations are unavoidable, and being brave and having honest, tactful conversations, from the get-go leads to success.

For example, let’s say someone on your team is struggling with a certain task or to reach their performance goals. By addressing the issue head-on, you give them the tools they need to succeed rather than just watching them flail.

Good leaders lead by example

Respect is something every leader needs from their team, and while some respect comes from holding a title, it’s just surface level. Real, honest respect comes when you stop leading from the sidelines and start leading by example.

When you lead by example, you’re not just telling someone that the job should be done a certain way or in a certain time frame. You’re showing them that it can be done and inspiring them to follow in your footsteps.

Leading by example is especially important in difficult situations and when the challenges seem insurmountable. During these times, it’s critical to demonstrate what’s possible.

Bad leaders procrastinate

Like I said, sometimes, being a leader is uncomfortable. Difficult conversations and situations are going to come up at some point or another. Good leaders deal with the matter head-on, and bad leaders put it off.

If a team member is struggling, a bad leader will put off having an awkward conversation or appearing to be a micromanager by correcting them. Then, when the team member ultimately fails, a bad leader blames them for their failure.

Good leaders don’t wait for an issue to become a problem. They correct minor errors or inefficiencies as they see them and help struggling team members to succeed.

Good leaders put their team’s success above their own

Good leaders understand that their success depends on their team’s success — and each individual member’s success — not the other way around.

Rather than putting all of their focus on their own tasks and goals, they focus on what they can do to help every member of their team succeed.

Good leaders help their team members identify and grow their strengths, while also having honest conversations about weaknesses and how to overcome them.

Every business, no matter how small, needs effective leaders. But having the title of chief, director, manager or lead isn’t enough to be an effective leader.

You need to know what being a good leader means — and how to avoid being a bad one.