Guest Writer: Malcolm Peace, President of Tsetserra Growth Partners

“You’re not a very effective leader”

It stings, right?

I lead a team of 30+ amazing people. You might be leading a thousand or maybe even just two members.

What we all have in common is that we hold a lot of responsibility by being a leader. To be an effective one, you have to know your leadership style.

Having no leadership style is a lot like driving a car without a GPS… or side mirrors… and a steering wheel.

It will be very hard to navigate the road and reach your destination. Worse, you might even end up in a crash.

Leading people is no easy feat that’s why learning which style suits you, your work, and your team is super important.

Lucky for you, this guide will walk you through the different approaches that you should know as a C-Suite Employee so you can (hopefully) avoid being told “You’re not a very effective leader.”

Why Knowing Your Style Matters

You might be reading this article because you got promoted recently, or you’re months into your role but still haven’t figured out which style would best fit you.

Maybe you just want to learn these leadership styles because you want to be a leader one day.

Before we get to the nitty gritty parts of leadership, it’s important to know why your leadership style matters.

The more you understand your leadership style, the better equipped you are to handle challenges in a way that feels natural to you. It leads to:

  • Enhanced Team Dynamics –  Your leadership style shapes your team’s culture and communication. Understanding your style helps you create an environment where your team can truly thrive and grow.
  • Improved Decision-Making – Knowing your default leadership style allows you to adapt your leadership to what the situation calls for, leading to more effective decision-making.
  • Increased Engagement and Retention – When leaders are in tune with their style, they can better cater to their employees’ needs. This can lead to employee satisfaction, and in turn, retention.
  • Alignment with Organizational Goals – Your leadership style influences how well your team’s efforts align with the broader goals of the organization.

Now that we have that covered, let’s see which one you are!

The 6 Leadership Styles Explained

1. Transformational Leadership

“I see the vision!” That’s one thing that one of my teammates always says when she comes up with a project.

She gets all excited and giddy about having a new thing to focus all her energy on.

I think that one sentence clearly sums up what transformational leadership means.

Being a transformational leader means you have to set a vision for your team and organization, and then leading the way towards how this vision can be achieved with smaller actions.

You have to unleash your inner “influencer” (and no, I’m not talking about going on to promote your favorite product to your team), and use your reach and power to inspire your team to move towards your goals.

I like to look at it not just as a method but as a mindset that pushes you to see beyond what is in front of you.

If you ask me what the formula for transformational leadership is, remember these three I’s:

  • Inspirational motivation – setting a vision that makes teams excited to be a part of
  • Intellectual stimulation – encouraging teams to think outside the box
  • Individualized consideration – investing in not just the professional but also the personal growth of your team

This leadership style is beneficial for C-Suite employees because it aligns the entire organization and rallies them around a purpose that propels the business forward.

Now, you also need to keep in mind that it’s not just about being idealistic because chances are, you’re going to drive them towards a false, unattainable goal.

Remember what the “A” stands for in “SMART Goals”?

Achievable.

The purpose that you are setting for your team should be realistic and not just idealistic. While you are expected to transform, inspire, and influence, your vision should also be balanced.

What you should ask yourself:

Do I enjoy challenging the norm and encouraging new, innovative ideas?

2. Servant Leadership

If I didn’t know better, I would say that the term “servant leadership” is so contradictory.

How can the servant be a leader? That doesn’t make sense if you look at the dictionary (or maybe even the history books).

That’s the great thing about servant leadership: it flips the traditional leadership model on its head. Here, your team’s growth and development always come first.

Why? Because a thriving team leads to a thriving company.

To do this effectively, you must learn to stand in their shoes to better understand what they are going through and how you can provide them with the guidance they need. It’s a type of leadership that positions the company as a place where people want to work, which can be a significant competitive advantage when attracting talent.

A servant leader who I personally admire is Herb Kelleher, Southwest Airlines CEO. He created a fun, family-like culture at the company by encouraging his employees to take themselves lightly but their work seriously. As a result, he was able to reduce employee turnover rates.

What you should ask yourself:

When I lead, do I focus on empowering others rather than just giving orders?

3. Autocratic Leadership

Autocratic leadership is the opposite of servant leadership.

Your keyword: centralized decision-making.

This leadership style can come in handy when you have to make a quick decision during a crisis or highly regulated situation. It provides clarity, efficiency, and direction, especially when there is little room for error.

A quick word of caution: it can be a double-edged sword because while it allows you to make decisions rapidly, it can also stifle creativity and reduce morale if used too frequently and in the wrong context.

I remember an old colleague of mine who leaned heavily on this style. His team operated in a high-stakes environment which had him calling all the shots. Because of wanting to get instantaneous results, he developed an “I’ll do it myself” attitude when it comes to decision-making which is good in some situations but not all.

His team got so used to his way of doing things, but over time, it stunted their innovation and growth.

As a leader, that’s what I’m doing my best to avoid because your team handles the work and will most likely influence what the end goal will be.

The thing about autocratic leadership is knowing when to use it. If you’re not careful, you can come off as inconsiderate and restrictive. If used in the wrong context, you can become your biggest enemy because going this route 100% of the time will cause you to get in the way of a breakthrough.

What you should ask yourself:

Am I at ease with taking control and expecting my team to follow my lead?

4. Democratic Leadership

I think the most common misconception about leadership is that it is always one-sided…

that leaders are always the ones calling the shots.

While it’s true to some extent, those who use a democratic approach will argue differently.

Much like in politics, with this leadership style, you let your team members get a vote before making a decision. You ask for the consensus as you recognize that there are other ideas outside of your own and that your team members know the situation better since they’re the ones who work closely with the gears that make the organization move.

The most important thing that you can do to make this model more effective? Get some Q-tips and clean your ears because active listening is its foundation.

It’s not just the “inside one ear, outside the other” type of listening, but the kind where you genuinely absorb and understand what is being said, and follow through with action.

I also like to think of this as “collective wisdom.”

This approach is where you foster a deep sense of involvement within your team in decision-making. You show your team members that their opinions matter and that their voices are heard.

This type of leadership also teaches us humility and allows us to not rely too much on our own understanding – that there might be better perspectives than our own.

This approach is focused on collaboration, transparency, and empowerment. It helps us develop an understanding that there are lots of situations where we will all flourish through collaboration and looking through different lenses.

What you should ask yourself:

Do I feel comfortable sharing power and involving my team in decision-making?

5. Laissez-Faire Leadership

When I hear Laissez-Faire Leadership, I think of autonomy. This leadership style is defined by a hands-off approach and giving teams the autonomy to manage their own work.

Laissez-faire leadership can be super effective in organizations with highly skilled, self-motivated teams.

This is the leadership style that I personally have. I like giving my employees the freedom to explore and do what’s best for their teams.

You need to exhibit a sense of trust towards your team members and their skills, otherwise, it wouldn’t work. This leadership style can encourage innovation and even lead to breakthroughs that might not surface under more restrictive leadership styles.

But, just like the others, this approach has its risks.

You have to set the foundation for this to work. Without a strong foundation and structure, teams may struggle with the general direction that they need to take.

Just recently, one of my managers hired someone with the highest salary that our company allows for that role. I was concerned about how this might limit the new hire’s potential for income growth, which isn’t so good from a long-term perspective.

I firmly believe that every ounce of autonomy that I give to them, comes with an equal amount of accountability.

I don’t want my employees to be in their roles and not be held accountable for their actions. Learning the responsibilities that come with their decisions helps them navigate challenges with purpose.

I make sure not to intervene with their day-to-day but I make myself available for consultation if needed. As their leader, you also have to know when to step in to ensure that the outcomes won’t cost your company.

What you should ask yourself:

Do I believe people do their best work when they have the freedom to make their own choices?

6. Situational Leadership

While there’s one-size-fits-all for clothes, this approach believes there isn’t with leadership.

Situational leadership adapts to meet your needs and the demands of the, you guessed it, situation.

Think of it like the yoga of leadership styles. It requires a lot of flexibility (but minus the downward dog poses).

It’s a style that sits on the belief that being a successful leader means being able to assess the situation and provide the appropriate guidance, direction, support, or delegation.

I remember reading an article about IBM’s former CEO, Lou Gerstner. He shifted the company’s culture from inward-looking to customer-focused by using a situational approach.

Gerstner was directive when implementing changes but more participative once the company was more stable.

He knew when to take the wheel and say, “We’re going this way!” and also when to ask, “What do you think about this direction?”

This approach is really helpful in environments where the ability to pivot and respond to change is crucial. Situational leadership allows for a tailored approach which means having an understanding of the unique needs of your team and the specific challenges they face.

What you should ask yourself:

Am I comfortable switching between being more hands-on or laid-back based on what’s needed?

Conclusion

Who you are as a leader not only helps get the job done but also allows you to create an environment grounded on resilience and accountability.

By embracing the full spectrum of these leadership styles, you can unlock your team’s potential and drive your company toward sustainable success.

To help you remember what each leadership style means, repeat after me:

  1. Transformational Leadership – being a visionary balanced with reality
  2. Servant Leadership – putting your team’s needs first
  3. Autocratic Leadership – pushing for strong directives
  4. Democratic Leadership – hearing your team out before making a decision
  5. Laissez-Faire Leadership – giving teams autonomy while being available for support
  6. Situational Leadership – leading according to what the situation calls for

Having to choose which leadership style would be most effective for your team is another layer to the already huge responsibility of being a leader. I trust that you know the situation better than I do, and I hope that this guide was able to help you choose a what-works-for-you and what-works-for-the-job type of leadership.

Malcolm Peace is the President of Tsetserra Growth Partners, where he helps small to midsize Texas businesses thrive. He specializes in supporting retiring business owners by revamping operations and crafting strong succession plans while preserving company culture.

Comments

Share: