Dragons' Den star James Caan: 'How to recognise talent in your firm'

Throughout my career in business I have encountered many individuals with outstanding managerial skills: people with energy, who inspire others and communicate their ideas efficiently.

But where do these managers come from? Are they born or are they trained? Everyone needs to be given an opportunity before they can impress and they also need to gain experience before they are given that opportunity.

It is up to business leaders and entrepreneurs to identify employees with potential, to nurture them and to grow the next generation of effective leaders. Failing to spot an employee's strengths and talents will only lead to their dissatisfaction and could ultimately end up costing your business money.

I remember sitting in a meeting where a financial director made a presentation of complicated financial information in such a way that nobody could fail to understand. His self-awareness and innovative approach illustrated to me just how valuable ‘switched-on' managers could prove to be.

If business leaders don't correctly recognise someone's talents and give them the tools to build a successful career they have little chance of harnessing that individual's true potential.

Incentivising managers correctly is of vital importance to business leaders. I am a great believer in giving my managers a real, tangible interest in the company they are working for.

Everybody seeks reward for their labours and creating the correct goals to motivate managers is as important as selecting the right responsibilities for them. The aim is to meld all the pieces of the jigsaw into a cohesive team. A good leader needs to listen and consider everyone's ideas if they are to get the best out of them. The object should be to create a genuinely entrepreneurial spirit within the business.

It is important that business leaders have the confidence to recognise their own weaknesses. For example, can any business owner honestly say they are a financial wizard, a dynamic salesperson, an IT guru and operational task-master all in one?

A successful business is usually driven by a successful team and you simply cannot do everything yourself. It is up to you to ensure that you select the right people for the appropriate positions. If you try to do everything yourself I guarantee that you will fail.

It isn't just about providing your managers with specific skills to tackle particular tasks; it's also about encouraging them to be able to translate those skills to different situations and develop new ones.

According to the UK Commission for Employment and Skills the number of people "not fully proficient" at their job is rapidly increasing. We need to be alive to harnessing all the talent that we already have within our businesses.

Business growth is the only way that Britain will develop the strong economy that can lift us out of recession. Training efficient and passionate managers can only have a beneficial effect throughout British business and ultimately the economy.

Good business leadership undeniably has its part to play in that growth, but are strong leaders born or trained? Personally, I believe that it is a combination of both. Some of the great leaders of the world were born with leadership skills in their blood, whereas a few others have developed their own characteristic qualities over time and through life's experiences. It is our duty to aid the personal development of our employees in whatever way we can.

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