What Type of Leader Are You and Does It Matter?

Are you familiar with your leadership style? How it impacts your team and your business?

Understanding your leadership style can be a game-changer, and here’s why…

In any organisation, regardless of your job title or position in the hierarchy, you have the potential to be a leader.

Being a leader doesn't revolve around your rank, but rather your drive to inspire and bring about change. 

Read on to understand the types of leadership styles that exist and how they can benefit a workplace. 

Understanding Leadership Styles

Leadership styles are like tools in a toolbox.

Each one has its purpose, strengths, and weaknesses.

None of them is "the best" in all situations.

It's all about choosing the right style for the right situation and making the most of what you're good at. 

Understanding these styles isn't just an exercise in self-awareness – it's a critical aspect of running a business.

Your leadership style and the style of those you hire to manage the day-to-day running of your company, can shape your organisation's culture, influence employee engagement, and ultimately affect your bottom line. 

Behaviours That Shape Leadership 

• Dominant behaviours challenge the status quo and prioritise getting things done swiftly, often overlooking the repercussions. This style, however, may be perceived as intimidating.
• Influential behaviours are often possessed by leaders who are dynamic and optimistic. They excel at cooperation, but their follow-through may sometimes falter. They prefer an overview rather than detailed information.
• Supportive behaviours are characterised by those who are amiable, open, and accommodating. They strive to assist others but tend to avoid conflict, sometimes restraining their insights. These leaders must voice their ideas and solutions.
• Conscientious behaviours come from those who are logical, cautious, and thorough. They appreciate details that others might overlook. While not necessarily anti-social, they favour productivity in solitude and should remain receptive to different strategies.

Each behaviour style excels at certain aspects of the leadership process and faces challenges with others.

Your role as a business owner is to get the right mix within your team to ensure that your company has a diverse set of skills and approaches to tackle various business situations. 

Types Of Leadership 

Democratic Leadership

If you're a democratic leader, your leadership style is akin to a 'free-flowing' river, full of ideas and inclusivity.

You value everyone’s input, thrive on collaboration and flexibility, and you are the go-to person in rapidly changing environments.

Yet, remember that the very strength of this style – involving the whole team in decision-making – can sometimes slow down the process and cause discussions to veer off-course.

Keep the dialogue open, respect input, and remain committed to the best approach for you and your team.

Autocratic Leadership

As an autocratic leader, you prefer a strong hold on the reins.

You make decisions single-handedly, drawing on your own experiences and beliefs.

This approach can create a streamlined, fast-paced decision-making process, ideal for smaller businesses and high-stress environments.

However, remember this style might be perceived as outdated and inflexible, with the risk of reduced team motivation.

If this is your style, set clear rules, manage small teams effectively, and embrace responsibility.

Transformational Leadership

If you're a transformational leader, your focus is on unlocking and nurturing the potential within your team.

You set ambitious targets to drive improvement and performance.

This style encourages idea-sharing and creativity, similar to democratic leadership, but with a forward-thinking approach.

Remember, to avoid creating too much dependence on your leadership, inspire your team and bring your innovative ideas to the table.

Laissez-faire Leadership

Are you a laissez-faire or delegative leader?

If so, you believe in giving your team complete freedom in decision-making.

While this can lead to self-reliance and independent problem-solving, there's a risk of poor performance and role confusion if your team lacks expertise.

Ensure you're present and checking in with your team to build trust and clearly define each member's role.

Procedural Leadership

As a procedural leader, you are detail-oriented, and prefer to do things 'by the book'.

You are keen on managing others and their tasks, and your approach centres on discipline and perseverance.

While there's a risk of appearing inflexible, with careful methodology and adherence to procedures, you can achieve substantial rewards.

Why Understanding Your Leadership Style Matters

Understanding your leadership style is very important for your business.

Why?

Because it helps you know your strengths and areas you can improve.

The biggest benefit however is that it gives you the flexibility to adjust your style to different situations.

This is a great way to boost team spirit and get more work done, which can in turn boost your business results.

Your leadership style also helps shape your company culture, which itself can say a lot about your business values.

This can affect how engaged your employees are, how long they stay with your company, and how satisfied your customers are. 

As a leader, you need to remember that you're part of a bigger network.

This includes your team, business partners, suppliers, and even competitors.

Knowing your leadership style can improve how you work with these different groups to make your business run smoother and build stronger relationships.

Conclusion

Ultimately, knowing and understanding your leadership style is not just about self-reflection.

It's a key part of setting your business up for long-term success.

Reflecting on your leadership style and that of the team you work with, is a great way to assess if your business is performing as well as it can.

Getting the right balance of leadership styles across key areas of your organisation can improve team dynamics, promote creativity, and stimulate innovative problem-solving strategies. 

Knowing the styles and behaviours of your managers can also guide you in assigning roles that play to their strengths and mitigate their weaknesses, which ultimately enhances the efficiency and productivity of your entire team.