Leaders have compassion by caring for people, but to be an effective leader one must go one step further. That step being, an effective leader must care about everything that is being said in the organization. We all must have mentors who will show us how to develop that compassion that is needed.
Having compassion is even more important for smaller organizations with less people than it is for larger organizations. An effective leader must listen to what everyone says and be passionate about what they say. There is nothing worse than having a leader not listening when you are pouring your most concerning thoughts out to them. This is a leader breaking deal! You do not want to go near any situation like that.
Besides being compassionate toward the people and what they say, a good leader must also be compassionate about his visions and beliefs. It is important to have this, in order to achieve one's goals and be effective. Having a passion for what you do is a trait of all good and effective leaders. Your vision must have the conviction and compassion that will motivate your followers to understand and believe in what you say and do. People will not get motivated by themselves unless you as a leader can project passion for it. My vision has always been motivating others to realize their vision.
The leader who truly has compassion and can show it, will always be the more effective leader for the organization. So now you must choose whether you want to be an effective leader or a follower.