What are the main different styles of leadership? Which leadership styles are best, and how do we know when to use each one?

No matter where you are on your leadership development journey, an understanding of leadership styles will help you. Even when you are not in a position of leadership, recognising different leadership types will help you navigate the workplace and contribute effectively.

There are various types of leadership styles, each with its own unique characteristics and impact. Understanding these styles is essential for identifying the most effective approach for different situations and individuals. In this article, we will explore several leadership styles, their key features, and examples. This knowledge will serve as a guide to help you identify what type of leader you are or aspire to be.

What is Leadership?

Leadership involves guiding and influencing others toward achieving common goals. It requires skills in communication, decision-making, and problem-solving. The way a leader exercises these skills defines their leadership style.

The Importance of Understanding Leadership Styles

Leadership styles significantly affect team dynamics and productivity. They shape the work environment and influence how employees perceive their roles and responsibilities. A leadership style that aligns with the needs of the team and organization can lead to higher morale, increased efficiency, and successful outcomes.

Impact on Team Dynamics

Different leadership styles can dramatically alter team dynamics. For example, an autocratic style might lead to a highly structured environment, whereas a democratic approach encourages open communication and collaboration. Understanding these dynamics helps leaders create a harmonious work environment.

Influence on Employee Motivation

The right leadership style can significantly boost employee motivation. Transformational leaders, for instance, can inspire their teams to exceed expectations by fostering a sense of purpose and achievement. Conversely, a mismatched style might lead to disengagement and decreased productivity.

Alignment with Organizational Goals

Aligning leadership style with organizational goals is crucial for success. A company focused on innovation might benefit from transformational leadership, while a business emphasizing efficiency might prefer transactional leadership. Understanding this alignment ensures that leadership efforts contribute effectively to strategic objectives.

Different Leadership Styles

1. Autocratic Leadership

Autocratic leadership, also known as authoritarian leadership, is characterized by individual control over decisions with little input from group members. Leaders maintain strict control and expect obedience from their team. This style of leadership is associated with leadership models such as the Great Man theory.

Characteristics of Autocratic Leadership

Centralized decision-making is a hallmark of autocratic leadership. Leaders in this style set clear expectations and provide explicit instructions to ensure compliance and order. The lack of collaboration means decisions are quick, but employee input is often limited.

Situations Where Autocratic Leadership Excels

In high-pressure environments where quick decisions are paramount, autocratic leadership can be highly effective. For instance, during a crisis where problems are critical and time is of the essence, a leader’s ability to direct swiftly can be advantageous. This style also suits scenarios where strict adherence to protocol is necessary.

Potential Drawbacks of Autocratic Leadership

While efficient, autocratic leadership can stifle creativity and lower morale if used excessively. Employees may feel undervalued and disconnected, leading to increased turnover and dissatisfaction. It’s essential for leaders to balance authority with empathy to maintain a motivated workforce.

Examples of Autocratic Leadership

Military command, in times of war, is a classic example of more autocratic leadership. For example, General Patton, the US commander in World War Two, was bold and decisive. He had strong opinions and an often abrasive manner, but he was also charismatic and achieved marked success in a highly pressurised situation.

2. Democratic Leadership

Democratic leadership, or participative leadership, involves team members in the decision-making process. This style values collaboration and ensures everyone has a voice.

Key Traits of Democratic Leaders

Democratic leaders prioritize group input and foster an inclusive environment. They hold regular meetings and encourage open dialogue to ensure that diverse perspectives are considered. While the leader makes the final decision, the process is collaborative and engaging.

Benefits of Democratic Leadership

This style can lead to increased employee satisfaction and innovation. By involving team members in decisions, leaders can tap into a wealth of ideas and foster a sense of ownership and accountability. It’s particularly effective in creative fields where diverse perspectives enhance outcomes.

Challenges of Implementing Democratic Leadership

The democratic process can sometimes be time-consuming, slowing down decision-making. It requires skillful facilitation to manage diverse opinions and ensure productive discussions. Leaders must strike a balance between inclusivity and efficiency to prevent stagnation.

Examples of Democratic Leadership

Ray Dalio, founder of Bridgewater, a highly successful investment management firm, employed a style of democratic leadership. In meetings, everyone is expected to critique ideas. Ray Dalio managed to harness the power of this collective input while mitigating the risk of slow decision-making through the use of core principles and technology to support business processes.

3. Transformational Leadership

Transformational leaders inspire and motivate their team to exceed their goals. They focus on creating a vision and fostering an environment of innovation and change.

Core Elements of Transformational Leadership

At its core, transformational leadership is visionary and inspiring. Leaders articulate a compelling vision and encourage personal and professional growth among team members. They focus on long-term goals and drive change through motivation and engagement.

Advantages of Transformational Leadership

This leadership style is highly effective in dynamic industries requiring constant innovation. Transformational leaders can ignite passion and creativity, pushing teams to new heights. Their focus on growth and development can lead to exceptional organizational performance and employee satisfaction.

Potential Pitfalls of Transformational Leadership

While inspiring, transformational leadership can sometimes overwhelm team members. The constant push for innovation and change may lead to burnout if not managed carefully. Leaders must be mindful of their team’s capacity and provide the necessary support to sustain long-term success.

Examples of Transformational Leadership

Transformational leadership is often more frequently found among start-ups and non-profit organisations. In these situations the leader is reliant upon a compelling vision to motivate people to action. They generally do not have traditional structures or large incentives to compel people. Church leaders and activists such as Dr Martin Luther King Jr fall into this category.

4. Transactional Leadership

Transactional leadership is based on a system of rewards and punishments. Leaders use formal authority to achieve performance goals.

Defining Features of Transactional Leadership

Transactional leaders emphasize performance and results through structured systems. Clear expectations are set, with rewards for meeting targets and penalties for falling short. This approach ensures accountability and consistency in task execution.

Effectiveness of Transactional Leadership

In structured environments with clear objectives, transactional leadership can drive efficiency and productivity. It’s particularly effective in sales-driven or operational roles where measurable outcomes are paramount. The clarity and predictability of this style can motivate employees to meet and exceed targets.

Limitations of Transactional Leadership

While effective, this style may stifle creativity and limit innovation. The focus on rewards and penalties may lead to a transactional relationship with employees, lacking deeper engagement or loyalty. Leaders should combine this approach with other styles to foster a more holistic work environment.

Examples of Transactional Leadership

Transactional leadership is common in industries such as construction, where most of the problem-solving does not need innovation. Most buildings use common techniques but involve multiple companies and contractors, so a carrot and stick approach, with contracts and payments, is an efficient way to manage most work.

5. Laissez-Faire Leadership

Laissez-faire leadership is a hands-off approach where team members have the freedom to make decisions. Leaders provide minimal guidance and allow employees to manage their tasks.

Characteristics of Laissez-Faire Leadership

Laissez-faire leaders offer minimal supervision, granting high autonomy to team members. This approach encourages self-management and innovation, relying on employees’ skills and expertise to drive outcomes. It’s best suited for highly skilled and motivated teams.

Situations Favoring Laissez-Faire Leadership

In creative or research-driven environments, laissez-faire leadership can unleash potential. By allowing freedom and flexibility, leaders can foster innovation and exploration. This style is ideal for teams with experienced professionals who thrive on independence.

Challenges of Laissez-Faire Leadership

Without adequate guidance, laissez-faire leadership can lead to a lack of direction and accountability. Teams may struggle with prioritization and coherence, impacting productivity. Leaders must ensure clear objectives and support systems are in place to mitigate these risks.

Examples of Laissez-Faire Leadership

Valve, the award-winning software development company, behind the Steam gaming platform and computer game mega-hits such as Half-Life and Portal, famously employs a laissez-faire style of leadership. The company has a flat structure where employees decide which projects they want to work on and organically create their teams.

Comparing Leadership Styles

Different leadership styles suit different scenarios. Understanding the advantages and disadvantages of each style helps leaders adopt the most effective approach.

Autocratic Leadership: Efficiency vs. Morale

Autocratic leadership is efficient but may lead to low morale if overused. Its strict approach ensures quick decisions but can alienate team members. Leaders should balance authority with empathy to maintain a motivated workforce.

Democratic Leadership: Collaboration vs. Speed

Democratic leadership fosters collaboration but can slow down decision-making. While it encourages diverse input, the process can be time-consuming. Leaders must manage discussions effectively to ensure timely and productive outcomes.

Transformational Leadership: Innovation vs. Burnout

Transformational leadership drives innovation but may overwhelm some team members. Its visionary approach inspires but requires careful management to prevent burnout. Leaders should provide support and recognize individual capacities to sustain momentum.

Transactional Leadership: Structure vs. Creativity

Transactional leadership offers clear goals but may stifle creativity. Its focus on rewards and penalties ensures accountability but can limit innovation. Leaders should integrate elements of other styles to encourage broader engagement.

Laissez-Faire Leadership: Autonomy vs. Direction

Laissez-faire leadership empowers teams but can result in a lack of direction. While it promotes independence, the absence of guidance may lead to disorganization. Leaders should establish clear objectives and offer support to maintain focus and coherence.

Leadership Development: Master the Top Leadership and Life Skills

Better lead in life and work to maximise your success. Sign up and access materials for free!

Choosing the Best Leadership Style

The best leadership style depends on various factors, including the organization’s culture, team dynamics, and the nature of the task. Here are some considerations:

Task Complexity and Leadership

Complex problems and tasks may benefit from democratic or transformational leadership. These styles encourage collaboration and innovation, essential for tackling intricate challenges. Leaders should assess the task’s nature to determine the most suitable approach.

Team Skill Level and Leadership

Highly skilled teams may thrive under laissez-faire leadership. Their expertise allows them to self-manage effectively, driving innovation and productivity. Leaders should evaluate team capabilities to provide the appropriate level of autonomy.

Urgency and Leadership

Urgent or critical situations might require autocratic leadership for quick decision-making. In high-pressure environments, decisive action can be critical. Leaders must recognize when speed is necessary and adapt their style accordingly.

Organizational Goals and Leadership Alignment

Align the leadership style with the strategic objectives of the organization. A company focused on innovation might benefit from transformational leadership, while efficiency-driven organizations might prefer transactional leadership. Understanding this alignment ensures leadership efforts contribute effectively to success.

Flexing Leadership Styles for Effective Management

Management often requires a blend of leadership styles to address different challenges. Effective managers are flexible and understand when to apply each style to maximize team performance and achieve organizational goals.

Situational Leadership in Management

Situational leadership is the ability to switch between styles as needed and can be considered a leadership style in its own right. It’s about being flexible and responsive to changing circumstances. Managers must assess the situation and adjust their approach to ensure the most effective leadership. This means a leader should be adaptive, but is not to be confused with Adaptive Leadership, which is a specific leadership style in itself.

Implementing Situational Leadership

Implementing situational leadership involves understanding team dynamics and organizational needs. Managers should be observant and open to feedback, continually refining their approach. This adaptability enhances their ability to lead effectively across various scenarios.

Example of Situational Leadership

A manager who adopts a transformational approach during a company rebrand but switches to transactional leadership to meet quarterly sales targets demonstrates adaptive leadership. This ability to pivot ensures that leadership efforts align with current priorities and challenges.

Understanding and Employing Leadership Styles

Leadership styles play a vital role in shaping an organization’s success. By understanding the various types of leadership, leaders can tailor their approach to suit their team’s needs and the organization’s goals. Whether you are a new manager or an experienced leader, embracing a versatile leadership style can enhance your effectiveness and drive positive outcomes.

Explore these styles further and consider how you might incorporate them into your leadership approach. As you grow in your role, remember that the most effective leaders are those who adapt and evolve with their teams. Understanding and applying diverse leadership styles can transform not only your leadership capabilities but also the overall success of your organization.

There are many other styles of leadership, each type being more applicable to different situations and leadership roles. If you would like support in exploring the right leadership style for you and your organisation, please drop me a line via the Contact Page.

The rope snaked out in front of me, linking me to my three climbing buddies. I could see each one, in turn, slowly progressing up the ridge. The problem was that they were getting harder to see. The lead climber was beginning to face into the mist as she scaled higher up the peak. It was getting darker too. Not a good sign.

We had started our Alpine climb in the sunshine but had been scrambling up the ridge for hours. While we had been edging up the rock, ominous clouds were forming on the far side of the mountain. Now, as we neared the peak, we were ambushed.

When you look at a cloud from afar it is a giant cotton ball, majestically suspended in the air, silent and ethereal. But climb into a Cumulonimbus and the experience is very different. Clouds become loud, scary and very tangible.

Within seconds of summiting, we were in a gale and had to huddle together to communicate. Rain and hail started to pummel us and, just when we thought things could not get any worse, lightning struck a nearby peak. The air crackled and spat. We were in trouble.

We had conquered the climb, but the mountain was reminding us that it did not consider itself subdued as a result. It was time to beat a hasty retreat. But the strangest thing had happened. The person who had been leading all the way up the mountain just froze. When the thunder sounded, they just stood there, wide-eyed, and did not say anything. Instead, for some reason, everyone was looking at me.

Fight, Flight or Freeze

The fight, flight or freeze response is a natural psychological reaction to a threat. It is hardwired in for good reason. As with our cousins in the animal kingdom, this response can often save our lives.

But it does not always work, and we can all react differently. The leader had frozen, but when leading, you cannot afford to just react. You must think too. You have to engage in the decision space, the opportunity that lies between stimulus and response.

“Between stimulus and response, there is a space. In that space is our power to choose our response. In our response lies our growth and our freedom.”

Victor Frankl

In our case, we actually did need to flee, but we also needed to go together and safely. This would require leadership.

Something within me grasped all of this, even if just as at a subconscious decision-making level. And so, I had started taking command. I shouted my hasty plan as we gripped the rock and tasked the team to sort their kit quickly. I looked everyone in the eye, made sure we were good, then led the way off the peak and down the mountain.

Within an hour we were out of danger. Within two we were back in beautiful sunshine. No one thought that what had happened within our team was in any way strange. We trusted each other, we shared roles and responsibility. But what had just happened?

The situational leadership model and how it can help

To be a good leader you need to know how to vary your leadership style depending upon the circumstances. Leading in a crisis requires a different approach to managing everyday circumstances.

On that day I was climbing with an experienced team. But when managing someone inexperienced they will require more support than other team members.

Therefore, as a leader, you need to adapt your style accordingly. This is called situational leadership. Paul Hersey and Ken Blanchard developed the most well-known model for situational leadership. This model helps to show the most appropriate form of leadership, depending upon the nature of the task and the competency and commitment of the team. In simple terms it breaks down into four key leadership styles; directive, delegating, supporting and coaching.

“We can’t always control what happens in our lives — things will go well, things will go poorly — but what we can control is our response to those events.”

Kenneth Blanchard

---

Directing

Directing is telling people what to do. This is usually used for enthusiastic novices or when in a crisis. This command style is suitable for critical problems.

When things went wrong on the mountain this was the approach I had to adopt. This is certainly not my normal and preferred way of working. In my experience, if a leader uses this style the whole time or out of context then it can be overbearing, condescending or both.

“When placed in command, take charge.”

Norman Schwarzkopf

Delegating

Delegating is giving over whole tasks to people who are experienced and able to take responsibility. This is a more hands-off leadership approach used with competent team members.

On the mountain, as soon as I had taken command, I started to delegate tasks. I did have a competent team; they were just in shock and the previous leader was exhausted. As soon as I gave out tasks the team started to break out of the stupor. Their experience broke through as they went into action and became themselves again.

“Surround yourself with the best people you can find, delegate authority, and don’t interfere as long as the policy you’ve decided upon is being carried out.”

Ronald Reagan

Supporting

This style suits when there is a high level of trust in the team and individuals can manage themselves independently. But the leader employing this style has higher participation than in pure delegation, by providing moral support, encouraging and communicating proactively.

For most of the climb, we had been in this situation. The leader knew that we could manage ourselves, but she had worked hard to support the team. This was the right approach but meant she was very tired when the storm broke.

“A leader is great not because of his or her power, but because of his or her ability to empower others.”

John Maxwell

Coaching

In this context, coaching involves selling the task to the individual and helping them grow to take on more responsibility. This works particularly well with individuals who may have lost confidence in what they need to do.

I had to use this approach with the person who had been leading. We had previously relied on her energy and enthusiasm up until we reached the summit. They were now exhausted, a little shell-shocked and probably embarrassed that they had frozen. I was able to share small tasks and responsibilities with her as we started to enact the plan. In this way, she quickly recovered her confidence and came alive again.

“A good leader inspires people to have confidence in the leader; a great leader inspires people to have confidence in themselves.”

Eleanor Roosevelt

---

Team member development and maturity levels

On my climb that day we were all of a similar experience and so picking the right style for the situation was the most important thing. But as well as the leadership styles we also need to consider the development levels that relate to the maturity and capability of the team members. These progress from the low end of maturity and development (for example, a new worker who has just joined the firm), to the expert level, where the person is highly capable to deal with the task.

It is important to remember that someone could be very experienced in some areas but, faced with a new task, they could find themselves out of their depth. Equally, the new joiner might have expertise that long-term team members are lacking. Therefore, as a manager, it is important to think about someone’s ability to do the specific task and how to lead them in that situation rather than just assume a default approach based on the time in a given job.

This applies no matter how senior we get. I have worked with entrepreneur CEOs who are incredibly experienced and gifted but who have required coaching support as their roles and organisations have evolved. It is an important lesson in humility for all leaders as well as team members. It does not matter how capable we are (or think we are), there will always be times where we are learners and need people to support us.

To be a leader is to be flexible in style

We all have our preferred leadership style. For me, I prefer a more non-directive approach to leading. I like to put trust in my team and support them to achieve the result rather than just telling them what to do. But I can’t always lead that way.

The best leaders are not stuck in one mode of management all the time. Fortunately, the situational leadership model can help us identify the times when we need to adapt our approach. It might be the external circumstances that prompt the change, or it could be the experience level of a team member; the important thing is to be aware of the changes in your situation so you are ready to adapt as a leader.

“Effective leaders need to be flexible, and must adapt themselves according to the situation.”

Paul Hersey and Kenneth Blanchard

Think about your team and their tasks today. As a manager, do you need to direct, delegate, support, or coach them through their next piece of work?

What is servant leadership and who is it relevant to? Can a leader really be a servant?

I never really thought about the leadership ability of my father until I became a leader in my own right. I certainly did not fully appreciate his role as a leader until I became a parent. This was mostly because – when growing up – I never really thought of my dad, and what he did as a father, as a leadership position. To me, leaders were the loud, larger than life characters who led countries, armies, or large corporations. Back then I had a very narrow view of leadership.

My father was not the archetypal leader. He was not some charismatic figure in senior management. He was not a visionary, an intellectual or a great orator. But, to make up for this last point, he has never been shy of sharing a joke (no matter how good the joke or appropriate the context!)

So, what did he do (apart from dad-jokes) that made him a leader?

The father as leader

Well, he led my family – with my mother – through shared sacrifice. He served us as a family and put that team first in his priorities. He worked hard to be a provider, to be a role model for us, and he was true to his values.

As a provider, he set the standard for reliability and hard work. He was employed for the same company for most of his working life and never took a day off sick. When he came home, he read to us children (while trying not to fall asleep) and then was off working around the house or in the garden.

He led with integrity. He kept his own standards, and his actions matched his words. One example of this was that he did not swear in front of us children or bad mouth other people. This was a small but powerful lesson for us. It is only now, as a parent, that I realise how hard this is to do!

My father’s values were founded on his faith in God. He was not ostentatious in his faith, but he was always truthful about what he believed and gave straightforward answers when questioned. These values, such as his love for others, service to the community and honesty in his words and dealings, all shone through in the little things of everyday life. In so doing, my father provided a powerful example of good servant leadership.

The servant as leader

The idea of servant leadership was popularised by Robert K Greenleaf in his book, of the same name (1977). His phrase, the ‘servant as leader’ has been shortened over time to ‘servant leader’ but it is worth reflecting on the original construction. The ‘servant as leader’ reveals Greenleaf’s premise that we are all servants and, at times, we all need to take the role of leader, while maintaining this servant-heartedness.

This phrase is a seeming contradiction. Servant and leader are often (mistakenly) seen as opposites. His wording is also both divisive and inclusive. It is divisive, and potentially offensive, by using the term servant. The word servant actually comes from the Latin servus which means slave. Who wants to be a servant, let alone a slave?

But here again, lies a deeper truth. We are all servants of something. If we chase addictive substances or behaviours we become slaves. We can enslave ourselves to ideas such as wealth, fame, or appearance. And even if we avoid these extremes, we all serve something. That might be others, a higher ideal, God or ourselves, but we all choose to prioritise some thing. That is what makes us servants. The question is:

“Whom do you serve and to what purpose?”

Robert Greenleaf

If we accept the first premise, the second is that, although we are all servants, we all have the capacity and responsibility to lead. This is because the philosophy of this sort of leadership (and much of modern leadership theory) is that leadership is influence; not necessarily an official position. We can also all learn to be better leaders; there are skills we can improve. Therefore, we can lead from whichever position we find ourselves in, with whatever measure of power.

What servant leadership is

The servant as a leader is different to the leader who seeks power, fame and fortune. This serving model of leadership stands in contrast to Great Man theory and the cult of personality, or the Machiavellian, unprincipled manipulation of people to achieve one’s ends. The servant-leader is not driven to acquire power or possessions but motivated instead to serve the community, to serve others. As Greenleaf puts it:

“The servant-leader is servant first… It begins with the natural feeling that one wants to serve, to serve first. Then conscious choice brings one to aspire to lead.”

Robert Greenleaf

Within this approach, there is an emphasis on serving and developing other people. The servant-leader seeks to share power, prioritise the needs of others and raise up new servant leaders. This is why the true test of the servant leader, their legacy, is in the growth of who they lead.

“Do those served grow as persons? Do they, while being served, become healthier, wiser, freer, more autonomous, more likely themselves to become servants?”

Robert Greenleaf

The potential pitfall of servant leadership

There are pros and cons to servant leadership. There is a potential danger of this emphasis on serving others if misconstrued. Serving others is not tending to every whim of every individual. That would seem like serving them but would actually be counterproductive. To take an extreme example, you do not best help an alcoholic by giving them a drink whenever they ask for it. Equally, any parent knows, that giving a child everything they want will not serve them in the long run.

That is why there needs to be a vision, an idea of what the future can look like. Most importantly, in this vision, the servant leader must see the potential of the person they are serving. They seek to guide that person toward their future better self; not just react to the imperfect person standing in front of them. This idea of the leader serving the person, but towards a longer-term mission and goal can be seen in the inspiration that lies behind Greenleaf’s work.

Leadership Development: Master the Top Leadership and Life Skills

Better lead in life and work to maximise your success. Sign up and access materials for free!

The inspiration behind servant leadership

Greenleaf was inspired, amongst other things, by Herman Hesse’s book Journey to the East. In this story, a group of travellers is on a pilgrimage to find enlightenment. At first, things go well, but they face a crisis and their servant, Leo, goes missing. The group falls into disarray and they abandon their journey. Many years later, the main character – still on his search – discovers that Leo is actually the leader of the spiritual order he had been seeking all along.

Greenleaf also looks to the example of Jesus of Nazareth as a historical example of the servant leader. The Jesus of the Bible did not seek fame, power and riches and yet – by serving those around him and developing his disciples – had an impact as a leader that is unparalleled.

Greenleaf helped to renew these old truths and has in turn inspired famous leaders and management experts such as Stephen R Covey (author of Principled Centred Leadership), Simon Sinek (author of Leaders Eat Last) and Ken Blanchard (author of The One Minute Manager).

“Servant leaders don’t think less of themselves, they just think of themselves less often”.

Ken Blanchard

Serve to lead

This paradoxical paradigm of leadership has had a great impact, even in unexpected places. I started out my career as a bomb disposal officer in the Army. Stereotypically people think of military leaders as being confident, loud, and directive. If all you watched was war movies you could assume that martial leadership is mostly about shouting!

Directive leadership does have its place when you are storming trenches or kicking down doors to enemy compounds, but it is not the cornerstone of military management. The motto of the British Army’s leadership school, The Royal Military Academy Sandhurst is, ‘Serve to Lead’. Equally, ‘Selfless Service’ is one of the seven basic values of the United States Army.

At Sandhurst I was taught to genuinely care about my soldiers, not just lead them into battle. I joined the Army for adventure, but seeing soldiers develop and grow became one of the most satisfying parts of my job. Take this short example:

When I took over my first troop of 30 soldiers, I was warned by the outgoing lieutenant about one particular soldier who was a troublemaker. After watching this young man for a while, I chose to take a risk, gave him a position of responsibility, and took him on operations. His behaviour changed and he developed into one of my best junior non-commissioned officers. It was one of the most rewarding experiences of my young career, seeing someone who was destined for the scrap-pile, turned around and set on a new course.

Why servant leadership?

Without a servant hearted approach, based on a love for others, those with power can fall into two common traps.

The leader, pursuing their dream at any cost, can use people as fuel to the fire. Just resources to be burned in order to achieve the mission. I have worked with organisations led by this type of leader. Entrepreneurs can allow their passion override their compassion. Early on this can get results but it is not sustainable. I have seen start-ups fall due to this sort of approach. This risk is shared with the Transformational Leadership style as well.

The manager, concerned with efficiency and output, can see people as just a cog in the machine. That wheel might need the occasional grease but can be run until it is worn out. A cog is easy to throw away and replace. It is very transactional. I have also seen this in the workplace. I have seen good people thrown on the pile because they are inexperienced, unconfident or just in the wrong role. It is easy – in our hire-and-fire culture – just to replace someone rather than develop or relocate them.

As a boss, this also means releasing people. It is tough losing your best team members but if a move to a new position or place is genuinely the best thing for that individual then the manager should support and encourage the move, not coerce that person to stay.

From small things to great things

The examples of servant leadership, from Abraham Lincoln to Mother Teresa, show that a servant attitude and small acts can compound into great impact, even to the national and international level.

One building trend, through organisations such as B Corps, is that business leaders are once again learning to steward their people, and the resources of the planet, by measuring success against something other than pure profit.

Is this how you are building your organisation?

Starting steps of the servant leader

Whatever your position or role, being a servant leader starts with the inspiration to act and then taking small steps. For me, it was my father who gave me my first role model of servant leadership. Then being taught to ‘serve to lead’ in the army and reading Greenleaf’s writings gave me the inspiration I needed.

Being the ‘servant as leader’ has become ingrained. Wherever I am and whoever I am with, I know that I have the responsibility to serve and to lead.

This has helped me to see people differently and to act differently. I have realised that this type of leadership can be expressed in every interaction we have. It could be in a word of praise for the person serving coffee, words of encouragement to a child who is struggling, or stopping to ask if someone needs help.

It all starts with inspiration to make a difference in the small things. So, what small act of servant leadership can you do today?

If you would like to learn more about other leadership styles and theories then check out the following articles:

An Introduction to the 10 Most Influential Leadership Theories

Exploring Different Types of Leadership Styles

What is transactional leadership? What are its pros and cons? How does it differ from transformational leadership?

When meetings go wrong

It was turning into my worst ever Monday morning. Certainly, my worst as a project manager and probably the most miserable meeting I had endured as a leader in any context.

I was struggling to stay focused. The meeting was a disaster, playing out like a waking nightmare to my exhausted mind. I had just flown overnight, back from the US to Europe. For the first time, I really understood what flying the ‘red-eye’ really meant. My eyes felt like sandpaper. I had consumed some coffee – three rapid-fire espressos – but my tired and rebellious body just laughed this off and went on strike.

But I could not sleep. I had flown back to be at the Monday morning meeting with the property developer. This would usually be routine but as I strained under the weight of my leaden eyelids, I found myself ambushed by a project that had gone awry while I had been away. I was the project manager and – despite the fact I had been on vacation when things had gone wrong – I was held responsible in this Kafkaesque show trial.

The blame game

Various costs, delays, and mistakes were hurled at me in a steady bombardment. It was the first time I had heard of these misadventures, but no one cared. The various contractors and consultants, who were generally the cause of said mishaps, were not going to lift their heads above the parapet in my defence.

The silence of the guilty. Their time would come.

I stayed on the ropes for two hours, absorbing each punch until the bell rang for the meeting to end. I tried to slope away afterwards, nurse my wounds, and start to consider what had just happened, but I was cut off by the lead developer. He took me around the back for a very personal verbal kicking. He questioned my character, competence and parentage.

I went from tired, to numb, to depressed, to angry. It took at least 24 hours, and some rest, to come up with a plan. I looked at each problem, identified the party who I believed was the root cause and then studied the legal obligations in their contracts. I did not hold much power, but I did hold the purse strings when it came to paying consultants. So armed with my contracts and cash flow projections I went into bat with the contractors. 48 hrs later and the project was back on track.

The project manager’s challenge

When I worked in the construction industry as a project manager it was a classic middle-man leadership position. As a project manager, I had very little actual power. What influence I did have, beyond my interpersonal skills, came down to contracts and cash.

It is not my preferred style of management, but this is where the real leverage lies in these sorts of situations. If something goes wrong, relationships will get you some of the way, but when it really gets painful it is the legal wording and the threat of non-payment that brings people to the negotiating table.

What is transactional leadership? 

Transactional leadership is the name for this type of management. It is a leadership style following behavioural leadership theory. The approach is also related to the psychology of Transactional Analysis.

This approach relies on people’s needs and a ‘give and take’ approach to keep the team on track. In this way, it is closely linked to Maslow’s Hierarchy of Needs. The rewards and punishments reflect a trade of basic human needs. The manager barters with the team, dangling the carrot of incentives such as wages or recognition while holding the stick of contract, discipline, or expulsion to maintain cohesion.

Transactional leadership is based upon the assumption that:

“In simple terms, better pay, (are linked to) better performance, promotion, further productivity” (Bass and Avolio (1994)).

This holds true to an extent. The more enlightened factory owners in the industrial revolution realised that adequate pay, better working conditions and rest did improve productivity. By providing the basic needs of shelter, enough money for food, rest and a secure job and environment, factory owners could have happier, more productive workers. But as we shall see, this approach has its limits.

Carrot and stick

Transactional management uses both carrot and stick; rewards and punishments.

There is generally some benchmarked expectation of performance, contracted between worker and manager. Performance above this baseline of work can be rewarded, and equally, if productivity dips below the line then punishments are used to ensure compliance.

Any parent knows that there are times when this mode of leadership is needed. In the same way, there are times – when things may be less than pleasant or time-dependent – when transactional leadership may be necessary to carry through a project or phase of delivery.

The transactional approach to management is generally effective and ensuring a reasonable level of productivity but the challenge comes when you want to inspire people beyond that.

The pros and cons of transactional leadership

On the plus side, transactional leadership is a simple and fair approach and can assure a level of performance. Because it relies on basic human needs and behaviours it is broadly effective in making people work. For the aspiring manager, it is also easy to understand and implement.

But, as mentioned previously, transactional leadership rarely gets the best from anyone. Going back to the discussion of Maslow’s hierarchy, once people have their basic needs covered – such as enough food to eat, basic shelter and security – just increasing a person’s potential resources does not necessarily lead to a proportional increase in productivity.

Research has shown that monetary incentives do not necessarily improve performance. Also, if penalties are too harsh, workers will be unwilling to take risks. People won’t take risks if they are worried about their pay or job security. Fear of punishment is a poor atmosphere for creativity. To allow people to experiment (and therefore likely fail) there needs to be an environment of psychological safety.

Transactional leadership, when carried to extremes, is the tool of despots and authoritarian regimes. There may be rewards but in these cases, the threat of punishment becomes the regimes preferred means of coercion.

Therefore, it is hard to develop a high-performing team with transactional leadership alone. This is why transactional leadership is usually seen as the poor cousin of transformational leadership. Transformational leadership is about inspiring the team with a vision, supporting the growth of individuals, and achieving a higher purpose rather than just getting a job done.

Leadership Development: Master the Top Leadership and Life Skills

Better lead in life and work to maximise your success. Sign up and access materials for free!

When to use managerial leadership

But there are times when you do just need to get the job done. You may not have the big vision, the team you would choose or the task you want, but you have to complete the project or task. At these times – as I experienced as a project manager – transactional leadership can be effective.

Transactional leadership is suitable for tame problems. These are problems that are well defined and understood. Tame problems may be complicated, but they have tried and tested solutions, even if a degree of creativity is involved. A process can therefore be applied to these types of problems and this process can then be managed towards a solution. This is why transactional leadership is also known as managerial leadership.

Basic project, programme and production management fall into this category. A product being pieced together in a factory may be complex in its composition, but all of the construction steps are pre-defined. Similarly, most buildings, even if they have a novel exterior design, are constructed in tried and tested ways. Some crisis and emergency situations can also fall into this category. If there is a known process for dealing with the issue, then the situation can be managed.

However, the managerial approach falls short when problems are wicked in nature or when creativity is needed. The highest performing teams and the most challenging problems require other leadership approaches.

Keep transactional leadership in your toolkit

I still feel slightly queasy when I remember back to that Monday car crash of a meeting. Fortunately, I was able to recover my situation with the help of transactional leadership.

Transactional leadership is not my preferred style of management but there are times when it is necessary. When things go wrong, and relationships break down, it is an approach to fall back on. Then it is important to be straight with people. Down the line, by the book, firm but fair.

So, as a leader make sure you have transactional leadership as a tool in your back pocket. And back up this contingency plan with the contracts or other levers you will need if things go wrong. But always remember: the carrot and stick approach is not as powerful as visionary, or servant leadership can be. People want a higher purpose to work for. Not just cash and contracts.

If you are interested in exploring other leadership styles then read An Introduction to the 10 Most Influential Leadership Theories.