Leadership is the backbone of any successful organization. It’s the driving force that inspires and motivates employees to work towards achieving the organization's goals, which heavily impacts a business’ financial trajectory. However, not all leadership styles are the same, and it's crucial to choose the right one for your organization. In this paper, we'll examine different leadership styles, weigh the pros and cons of each, and look at real world examples. Ultimately, we'll recommend a situational leadership style as the best option for most organizations.
Autocratic Leadership Style
Autocratic leadership is a top-down approach where the leader makes all the decisions and expects employees to follow them without question. This style can work well in certain industries, such as the military or emergency services, where quick decisions must be made and followed without hesitation. However, in most cases, an autocratic leadership style can lead to low employee morale, high turnover rates, and a single point of failure in the business.
Imagine working at a company where your boss makes all the decisions without consulting you or your colleagues. You may feel undervalued and demotivated, leading to a lack of productivity and a high turnover rate. Furthermore, your boss may make decisions with incomplete information, leading to the wrong direction for the business. In today's workforce, employees want to feel like they have a say in the company's direction, and an autocratic leadership style can stifle their creativity and innovation and create potentially disastrous scenarios for the business.
In the fashion industry, designer Karl Lagerfeld was known for his autocratic leadership style. Lagerfeld made all the decisions, from designing to marketing, and his employees had little input. This approach allowed Lagerfeld to create a unique vision for the brand, but it also led to high turnover rates and low morale among his employees.
Transformational Leadership Style
Transformational leadership is a style where the leader inspires and motivates employees to achieve their full potential. Leaders who use this style are passionate about their work and have a clear vision of where they want the organization to go. They inspire employees to think outside the box and work towards achieving that vision. However, this style can be challenging to implement, and leaders need to have a strong relationship with their employees.
Imagine working at a company where your boss is a transformational leader. You feel a sense of purpose and meaning in your work, you're motivated to achieve great things, and part of a team that's driven to succeed. However, this leadership style can also have its drawbacks. With high expectations, there can be a risk of burnout and stress. There may also be a lack of focus on details, leading to potential oversights or mistakes. Additionally, as this leadership style is often heavily reliant on the leader's personality, there may be concerns about what happens if the leader leaves or is absent.
Elon Musk is an excellent example of a transformational leader. He founded several successful companies, including SpaceX and Tesla, and his vision of space exploration and sustainable energy has inspired his employees to work tirelessly towards these goals. However, his leadership style has not yet transferred well to his team at Twitter, leading to widespread organizational pain, a significant drop in revenue, and a chaotic product roadmap in his first few months as CEO.
Laissez-Faire Leadership Style
The laissez-faire leadership style is hands-off, where the leader provides minimal guidance and allows employees to make their own decisions. This style can be effective in organizations where employees are highly skilled and experienced, such as research or creative industries. However, it can lead to chaos and confusion if employees are not equipped to make the right decisions.
Imagine working at a company where your boss is rarely present, and you're left to make all the decisions. While this may sound liberating, it can be overwhelming and lead to uncertainty about what's expected of you. The laissez-faire leadership style can work well in certain situations, but it's not a one-size-fits-all solution.
Google is known for its hands-off approach to leadership. The company allows employees to take ownership of their work and gives them the freedom to pursue projects that interest them. This approach has led to some of Google's most successful products, such as Gmail and Google Maps. It has also led to many initiatives that didn’t fit Google’s core product offering, such as Google Wave, Tango, and Bump, resulting in wasted company effort and resources.
Servant Leadership Style
Another leadership style that has gained popularity in recent years is servant leadership. This style is focused on putting the needs of employees first and empowering them to grow and develop. The servant leader creates a positive and inclusive environment where employees feel valued and respected, and their well-being is a top priority.
Imagine working at a company where the leaders prioritize the growth and development of their employees by providing them with the necessary tools and resources to succeed. They also encourage them to take ownership of their work and provide them with opportunities to learn and develop new skills. Servant leaders are empathetic, approachable, and always available to listen and support their employees. That said, taking a servant leadership approach can be time-consuming, as it requires leaders to be deeply involved in the development and well-being of their followers. It may also drive a lack of direction because servant leaders may be too focused on empowering their followers and may neglect to provide clear direction and guidance. This can lead to confusion and inefficiency among team members.
A well-known example of a servant leader is Herb Kelleher, the founder of Southwest Airlines. He believed in creating a company culture that valued its employees, and his leadership style played a significant role in the airline's success. Kelleher prioritized his employees' well-being by providing them with competitive wages and benefits, promoting from within the company, and fostering a family-like environment where employees felt supported and valued.
Situational Leadership Style
Situational leadership is a leadership style that is characterized by the leader's ability to adapt their approach to the needs and abilities of their followers. It is based on the idea that different situations require different leadership styles, and that a leader must be able to flexibly adjust their approach to achieve the best results.
Imagine working at a company where your boss adapts their leadership style based on your skill level and the task at hand. If you're new to the job, your boss may provide more guidance and direction, but as you gain experience, they may step back and allow you to take the lead. This approach fosters a sense of trust and respect between the leader and the employees and can lead to higher job satisfaction and productivity.
This leadership style was first proposed by Paul Hersey and Ken Blanchard in the 1970s, and it has since become a widely accepted model for leadership development. Situational leadership is based on the idea that there is no single "best" style of leadership that will work in all situations. Instead, the leader must be able to assess the situation and the needs of their followers and adjust their approach accordingly.
The situational leadership model consists of four different leadership styles, which are based on the leader's level of direction and support for their followers. These styles are:
- Directing: This style is characterized by high direction and low support. The leader provides clear instructions and closely supervises their followers.
- Coaching: This style is characterized by high direction and high support. The leader provides guidance and support to their followers, but also sets clear expectations and monitors their progress.
- Supporting: This style is characterized by low direction and high support. The leader provides emotional support and encouragement to their followers but allows them to take more responsibility for their own actions.
- Delegating: This style is characterized by low direction and low support. The leader gives their followers a high degree of autonomy and allows them to take ownership of their own tasks and goals.
Overall, situational leadership is a flexible and adaptable approach to leadership that emphasizes the importance of assessing and responding to the needs of individual followers in order to achieve the best results.
One real-life example of situational leadership in business is Satya Nadella, the CEO of Microsoft. When Nadella took over as CEO in 2014, he inherited a company that was struggling to keep up with the fast-changing tech industry.
Nadella recognized that Microsoft needed to shift its focus from traditional desktop software to cloud-based services to stay competitive. To make this transition, he adopted a situational leadership approach, where he adjusted his leadership style to fit the needs of the company's changing situation.
Nadella encouraged a culture of experimentation and innovation, empowering employees to take risks and try new things. He also recognized that Microsoft needed to collaborate more with other companies and developers, rather than trying to dominate the market through its own products.
Nadella's situational leadership approach helped Microsoft successfully make the transition to a cloud-based company, with products such as Azure and Office 365 becoming major revenue drivers. Under his leadership, Microsoft's market value increased from $302 billion to over $1 trillion, and he was named "CEO of the Decade" by Fortune magazine in 2019.
How to Implement a Situational Leadership Style
Implementing situational leadership requires a leader to understand their followers' needs and abilities and adapt their leadership style accordingly. Here are some steps to implement situational leadership effectively:
- Assess the situation: Before deciding on a leadership style, assess the situation and determine the needs of your followers. Consider their level of experience, motivation, and skillset to identify what leadership style would be best suited for them.
- Choose the appropriate leadership style: Once you have assessed the situation, choose the appropriate leadership style. Use the four styles of situational leadership (Directing, Coaching, Supporting, and Delegating) to match the situation's needs.
- Communicate expectations: Regardless of the leadership style, clearly communicate expectations to your followers. Let them know what you expect of them, and what they can expect from you as a leader.
- Provide support: Provide support for your followers in whatever way they need it. This may include guidance, feedback, resources, or emotional support. Providing support helps build trust and confidence in your followers.
- Monitor progress: Monitor your followers' progress and adjust your leadership style as needed. If your followers are struggling, provide more direction and support. If they are excelling, delegate more responsibilities to them.
- Continuously evaluate: Continuously evaluate the effectiveness of your leadership style and adjust it accordingly. Every situation is different, and what worked in the past may not work in the future.
Implementing situational leadership requires a leader to be flexible and adaptable to the situation and the needs of their followers. By assessing the situation, choosing the appropriate leadership style, communicating expectations, providing support, monitoring progress, and continuously evaluating, a leader can effectively implement situational leadership.
Conclusion
In conclusion, choosing the right leadership style is crucial for any organization. While situational leadership may not be the easiest leadership style to implement, it is one of the most effective. By taking a flexible approach to leadership, leaders can build trust with their employees and foster a sense of collaboration and mutual respect. This can lead to higher levels of productivity and job satisfaction, as well as lower rates of turnover. By implementing situational leadership, organizations can build strong, effective teams that can tackle any challenge that comes their way.
About our Resident Expert: John Downey
John Downey is a seasoned business executive who drove growth and profitability for companies, including Amazon and Motorola.
He recently served as Chief Commercial & Marketing Officer for Hurtigruten, a global expedition travel leader.
John launched innovative products and strategies at Amazon and maintained Motorola's market leadership position. He holds an MBA and a Bachelor of Arts from Northwestern University.