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The impact of different leadership styles on business

Just like an all you can eat buffet or the number of colourful hues of paint available in your local DIY shop when you are re-decorating, there are an overwhelming number of leadership styles. We saw a link to an article recently that referred to thirteen!! 

 

Leadership styles come in all shapes and sizes and in this article, Blue Gnu Senior Partner, Steve Brunt, focuses on what are likely to be the most common. As with our buffet lunch, each style brings its own unique flavour to the rich culinary world of work, and they create a different dynamic across our organisations.  


 

What is most interesting about these four leadership styles is how we can relate them to the four Insights Discovery energies, although it’s more nuanced than I am describing here, you will get the idea!   See if you can spot some of the behavioural clues that might suggest the link to each of the Insights Colour energies.  

 

Autocratic Leadership: The Captain of the Ship 

 

In the new Ridley Scott movie, Napoleon, Autocratic Leadership was very much on display from the military leaders of the day. It’s the style where traditionally the captain stands at the helm of their ship, steering with authority. Here decisions flow from the top down, like commands from a captain. The autocratic leader sets the course, issuing orders and expecting swift obedience from their crew. In high-risk environments, where there are safety critical decisions to make, this leadership style really stands out. Autocratic Leaders are likely to be assertive, decisive, and focussed on results. They tend to take charge quickly, make quick decisions and have an expectation that team members will do as they are asked.  

 

Democratic Leadership: The Roundtable of Equals 

 

Now, let’s gather around a cosy roundtable with Democratic Leadership. Here, decisions are made through consensus and collaboration. Picture a discussion where every voice is heard, like a colourful mosaic of ideas coming together. In this haven of inclusivity and openness, everyone has a seat at the table, contributing to the collective vision, collaborating to achieve together. Democratic Leaders will value input from their team members, encourage participation, and foster a supportive environment where everyone's voice is heard. 

 

Transformational Leadership: The Architect of Change 

 

Like a skilled artist, this leader paints a picture of change and innovation, envisioning a bright future for their organisation. With charisma and inspiration, they rally their team towards a shared vision, sparking passion and creativity along the way. Transformational leadership can be seen as empathetic, visionary, and focused on personal growth. These leaders look to inspire and motivate their teams by aligning their goals with a greater purpose, fostering a sense of belonging, and nurturing individual development. 

 

Transactional Leadership: The Keeper of the Ledger 

 

In the realm of transactional leadership, we encounter the pragmatic keeper of the ledger. Here, the exchange of rewards and consequences forms the currency of leadership. Picture a balanced scale, where performance is met with incentives and deviations are met with corrective action. In this structured environment, clarity, and accountability reign supreme. Transactional Leaders might be analytical, structured, and detail-oriented and they will look to establish clear expectations, set goals, and provide rewards or consequences based on performance. They emphasise efficiency and adherence to established procedures. 


 

Now that we’ve explored each leadership style, let’s consider their influence on organisational culture. Just as a tapestry is woven from different threads, so too culture is shaped by the leadership style at the helm. Autocratic leaders may cultivate a culture of efficiency and obedience, while democratic leaders foster an atmosphere of inclusivity and collaboration. Transformational leaders infuse their organisations with a spirit of innovation and growth, while transactional leaders prioritise performance and accountability. 


 

The Dance of Engagement and Motivation: A Symphony of Success 

 

Ah, the eternal dance of engagement and motivation—the heartbeat of any organisation! Different leadership styles sway to the rhythm of these twin muses in their own unique way. Autocratic leaders may struggle to inspire genuine passion and commitment, while democratic leaders harness the power of teamwork to fuel motivation. Transformational leaders, with their infectious enthusiasm, ignite the flames of inspiration within their teams. And transactional leaders, with their clear rewards and consequences, keep the wheels of motivation turning smoothly. 


 

Fostering a Highly Motivated Workforce: The Secret Ingredient 

 

Now, let’s ponder the age-old question: which leadership style is the secret ingredient for fostering a highly motivated workforce? While each style has its strengths and weaknesses, the magic lies in finding the right balance. A dash of autocracy for clarity, a dollop of democracy for inclusivity, a sprinkle of transformation for innovation, and a pinch of transaction for accountability—blend them together, and you have the recipe for a highly motivated workforce! 


 

The Hero’s Journey: Leadership Styles in Times of Crisis 

 

Ah, the crucible of crisis—where leaders truly shine! In the face of adversity, each leadership style reveals its own unique superpower. Autocratic leaders provide decisive direction, guiding their teams through the storm with unwavering resolve. Democratic leaders rally the collective wisdom of their teams, finding strength in unity. Transformational leaders inspire hope and resilience, turning crisis into opportunity. And transactional leaders maintain order and stability, ensuring that the ship stays afloat in turbulent waters. 


 

At Blue Gnu, we specialise in understanding and leveraging these diverse leadership styles to enhance organisational success. Whether guiding with an autocratic hand, fostering collaboration with a democratic spirit, inspiring change with a transformational vision, or ensuring accountability with a transactional mindset, our expertise in leadership development helps shape resilient and effective leaders. 

 

Through our bespoke Leadership and Management Development Programmes, we help teams and leaders navigate the complexities of people development. Feeling inspired? We’d love to chat - drop us an email – admin@bluegnuco.com 


Article written by Blue Gnu Senior Partner, Steve Brunt - August 2024


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