Many small business owners don’t set out to become leaders. The skills it takes to start a business don’t always overlap with the skills needed to run the company. As a result, many entrepreneurs feel underprepared to lead a team and manage direct reports. If you find yourself in this position, or if you are simply looking to find a leadership style that works for you, try this approach.
Choose a framework
Research into different leadership styles became very trendy in the 1970s. As a result, there are dozens of frameworks and approaches to leadership that can help you define your own style.
From Lewin's Leadership Styles to the six emotional leadership styles, navigating the different schemas defining leadership can quickly be overwhelming. Review a few frameworks to see if any resonate with you and to get a sense of how these approaches can provide a foundation for defining your personal style.
[Read more: 10 Business Leadership Styles and What They Mean]
Understand your natural strengths
Leadership style frameworks are useful as a baseline, but you need to understand your natural tendencies. “Humans don’t fit into neat little boxes,” said Michelle Duval, a business coach and CEO of Fingerprint for Success. “Looking at motivations and attitudes takes into account the fact that people adapt and mature. It allows for a much more dynamic view of humans and how their leadership styles can change over time.”
Notice how you react to certain situations to get a sense of your natural leadership style. It can also be helpful to ask for feedback from your peers, mentor, and direct reports to understand how they experience your leadership.
Take a leadership style assessment
There are almost as many leadership assessments as there are leadership style frameworks. Fortunately, many of these assessments are free. Here are a few formal assessments to explore:
- The LSI Leadership Style Inventory.
- The Visionary Leadership Test.
- The Leadership Practices Inventory.
- Gallup’s CliftonStrengths for Leaders.
- MindTools 'What's Your Leadership Style?
There are other assessments that focus on personality types, which can also inform your leadership style. For instance, MBTI and Enneagram tests can tell you more about your personality traits, like self-awareness, communication, decisiveness, and extraversion. These types of evaluations can provide an extra dimension to your leadership style assessment and help you understand your natural strengths.
Think about leaders in the wider business world and in your network whom you admire. What do these people all have in common? How can you incorporate their approach into your own leadership practice?
Consider which leadership traits you admire
The results of your formal leadership assessment do not have to dictate how you manage your team. Instead, this evaluation can help you understand where your natural tendencies lie and identify where you can adjust your approach.
“[Individuals] can take an active role in shaping their leadership style by reflecting on the characteristics and skills they’ve admired in other leaders and working to embody those traits,” wrote Lattice, a human resources platform.
Think about leaders in the wider business world and in your network whom you admire. What do these people all have in common? How can you incorporate their approach into your own leadership practice?
[Read more: 5 Simple Ways to Become a More Engaging Leader]
Keep your business goals in mind
Different leadership styles are suited for different stages of business growth. For instance, a laissez-faire leadership — a style that encourages high autonomy for employees — is great for fast-moving or creative industries, where workers thrive with the space to create, iterate, and draw on their expertise to deliver unique, innovative solutions.
However, this style could create challenges for businesses that are trying to grow quickly and need someone to take charge. Your leadership style should adapt to your business needs and, from moment to moment, shift in response to your team dynamics.
It can also be helpful to adapt your leadership style to different employees. Some employees respond better to collaborative leadership. Others simply want to be told what to do. Spend time with each individual to understand how you can adapt your approach to get the best possible performance from them.
Comparing leadership styles: Which one fits your business best?
The best leadership style for your business depends on factors like company size, industry, team maturity, and goals, such as quick decisions in crises versus fostering innovation. There’s no best style that works for every business. But depending on your business’s maturity, borrowing traits from certain styles can help you reach your goals.
For instance, new businesses often need to make decisions quickly in pursuit of launching, collecting feedback, and reaching profitability. If your priority is speed and clarity, a more directive leadership style might work best. If your goal is to innovate, then combine this style with a more collaborative approach to encourage creativity.
If your business has reached a growth point where a directive leadership style is stifling production, then shift into a development-focused style. For instance, coaching, delegation, and situational leadership (that adjusts as each person performs) can help you build a self-sufficient team. Create enough structure to empower consistency and quality while still enabling your team to take ownership of their work.
How leadership styles impact team culture and performance
Research suggests that one’s leadership style can shape the workplace culture, impacting team performance and the employee experience.
“Because of the impact of leadership style on employee performance, companies can use leadership styles to benchmark against other similar organizations,” wrote Top Workplaces. “For example, autocratic leadership styles generally improve short-term performance and productivity, while participative leadership styles show more effectiveness in long-term performance.”
Experts believe that the best results come from combining multiple leadership styles and depending on your business goals and team needs. Regularly hosting employee surveys and asking for feedback can help you adjust your style to meet the moment.
CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.
CO—is committed to helping you start, run and grow your small business. Learn more about the benefits of small business membership in the U.S. Chamber of Commerce, here.
