Leadership styles can make a difference to the success of a business. When used effectively, a leader’s approach can foster teamwork for positive workplace performance. It can create competition and spark innovative ideas. It can encourage communication that increases trust with transparency and accountability.
Leadership can be inspiring and motivate excellence. It can help others easily adapt and adjust to an organization’s changing environment.
There is not a right way to lead and there is not one style that works best in all situations.
Choosing a leadership style is not easy. To find the effective leadership style that works best for your business, consider factors that can make the difference in the success of your leadership style. Factors can include your mission, values and the personality of you and your team.
5 Types of Leadership Styles
Autocratic
An autocratic leader is one who has all the authority. The leader makes most, if not all, the decisions without consulting the team. This is a traditional style that has proven to be effective when the leader has a clear vision for business. His decision is final, and expectations are clear. However, for it to work effectively, employees must also have clearly defined roles and responsibilities. There is typically no flexibility, so they are also expected to adjust and adapt to changes.
Democratic
A democratic leadership approach might seem completely the opposite of autocratic leadership. Employees are encouraged to provide input in the decision-making process. While the leader has the final say, he will take employee’s opinions, feedback and ideas into consideration before making the ultimate call. To be effective, democratic leadership focuses on motivation that increases employee engagement, creates collaborative workplaces and unlocks employee potential.
Laissez-faire
The Laissez-faire leader sets the goal and lets the employees be self-guided in getting their work done. The approach empowers employees with the freedom to do the work as they see fit. In this way, the employees have the choice to make some decisions in their work. The leaders are then able to focus on company growth and development. The approach has proven to be quite effective in businesses that have experienced teams and where innovation is key.
Pacesetting
The Pacesetting approach is based on the concept, “Lead by example.” The style is preferred by leaders who like to lead from the front. Although he sets the standard, the leader expects minimal management involvement. To be an effective approach, the business environment that works best for this style is fast paced for high achievers.
Strategic
In a strategic leadership approach, everyone’s best interest is considered. The company’s goal for growth includes maintaining the optimal working conditions and environment for its employees. This style focuses on branding and buy-in from everyone to support overall growth and a healthy work environment. To be effective, leaders of this approach must be flexible and open to continuous opportunities.
When choosing a leadership style that works best for your business, consider one of these styles as a starting point and then think of how you would infuse your own values and personality. Leadership development is a process, and your style will continuously develop.
Getting help in understanding and developing the best leadership style for your business can be advantageous to your success. Natasha Davis is an executive coach who can help you develop the skills and style that are most effective for the success of your business. Schedule your coaching discovery call today.