Leadership isn’t a one size fits all approach, it comes in all different styles which serve a different purpose, like the different tools in your toolbox – knowing when to use the right one can make all the difference. So let’s explore in more detail and maybe ask yourself – which leadership style best suits you and your work culture?
Types of leadership
Autocratic leadership
In a high pressure environment decisions need to be made swiftly, such as during a financial crisis. Autocratic leaders make decisions quickly and with authority, and while this is effective for urgent situations, it can also limit creativity and lower team morale if overused. To balance autocratic leadership, make sure you mix it with moments of team involvement like collaborating on tasks or providing training opportunities.
Transformational leadership
A transformational leader has a way of encouraging their team to go above and beyond. According to the Chartered Institute of Personnel and Development (CIPD), organisations with engaged employees perform significantly better in comparison to those without.
True transformational leadership goes beyond big ideas and includes daily engagement, so regularly recognising efforts and encouraging personal growth can sustain the motivation and drive that is central to this style.
Laissez-faire leadership
The Laissez-faire leadership style is where the leader provides minimal direction and allows team members to make their own decisions. This can lead to great creativity and innovation but can also result in a lack of direction and accountability if not managed carefully. Richard Branson captures this idea perfectly: “Train people well enough so they can leave, treat them well enough so they don’t want to.”
Successful laissez-faire leadership requires setting clear expectations and regular check-ins. In this way the team have the freedom to innovate while they remain aligned with the organisation’s goals.
Coaching leadership
This style follows the same principles as the approach taken by sports team managers as they seek to develop each player’s skills and ensure they perform successfully as a team. Coaching leadership thrives on open communication and continuous feedback. In this sense, it’s important to invest time in understanding your team’s individual strengths and areas for growth.
Democratic leadership
The democratic leadership style, also known as participative leadership, strategically involves team members in the decision-making process. However, it can be time-consuming and may not be suitable for industries requiring quick decisions.
Situational leadership
Situational leadership is a flexible approach where leaders adjust their style based on the maturity and competence of their team members and the specific demands of the task. For instance, a leader might be more directive with a novice team needing guidance but shift to a delegative approach with a seasoned team.
Servant leadership
Unlike traditional leadership, where the main goal is the organisation’s success, servant leaders prioritise the needs of their team members, aiming to help them develop and perform as highly as possible.
Visionary leadership
Visionary leaders are skilled at seeing the big picture and inspiring others with a long-term vision. However, visionary leadership must be balanced with practical steps to avoid being seen as overly idealistic.
Bureaucratic leadership
Bureaucratic leadership is characterised by a focus on rules, procedures, and adherence to established processes. While it ensures compliance, it can also stifle creativity and flexibility, and impact employee morale.
How do leadership styles affect an organisation?
The choice of leadership style can significantly impact an organisation:
- Employee motivation and satisfaction: Transformational and coaching styles can enhance job satisfaction and motivation, leading to higher productivity and innovation. Engage for Success reports that engaged employees are 87% less likely to leave their organisation.
- Decision-making processes: Autocratic styles ensure quick decisions, while democratic and laissez-faire styles promote inclusivity and creativity.
- Organisational agility: Agile organisations benefit from transformational and coaching leadership, which support adaptability and continuous improvement.
- Team dynamics: The right leadership style encourages collaboration and trust, while the wrong style can lead to conflict and disengagement.
Leadership is not a one-size-fits-all role – it’s a dynamic interplay of styles tailored to the needs of the moment and the people involved. What’s your leadership style going to be today?
Case study – Elon Musk
Elon Musk has drawn upon different styles throughout his career, which undoubtedly have contributed to his success. When he launched SpaceX he wasn’t just talking about reaching Mars, he was visionary and had plans of building the rockets to get us there. With Tesla he has shown the power of sustainable energy by developing electric vehicles and battery powered projects like the Tesla Powerwall.
When he took over Tesla, the electric car industry was almost non-existent. But through his transformational leadership Tesla has become a leader in the industry, pioneering the autopilot system and creating the first profitable electric vehicle company.
Sometimes, you need to be direct and decisive, and he knows when to take the reins and be autocratic when necessary. At SpaceX, to meet his high standards and to incorporate his own ideas, he often worked alongside engineers on the factory floor. At Tesla, he has at times got involved in the details of vehicle design and manufacturing.
He is also a known risk taker, for example he invested $100 million of his own money into SpaceX, which had two failed launches, one partial failure, but after that – the launch succeeded, securing a NASA contract and saving the company. Elon also adapts his leadership style to meet the moment. During the COVID-19 pandemic, he swiftly shifted Tesla’s resources to produce ventilators and other medical equipment.
Musk shows us that by adapting our leadership styles we can achieve amazing success, inspiring all leaders to push boundaries and dream big.
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Jay is the Founder & CEO of Fractal Systems Consulting, an agile consultancy run by a group of Professional Scrum Trainers, change agents and agile delivery coaches who have deep experience and know-how in creating behavioural change.
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