Good leadership as a must-have
Leadership is the ability of a person to lead, inspire and motivate a group or team in order to achieve common goals.
But it’s not just about exercising authority. It’s about the art of promoting, developing and empowering people.
In today’s fast-paced business world, effective leadership is critical.
Why? Here are some key aspects:
- Responding to change: The business world is constantly changing. Strong leaders adapt, drive innovation and lead their teams through uncertainty.
- Motivating employees: Committed teams are more productive and loyal. Good managers motivate their employees, which leads to greater satisfaction and loyalty.
- Promoting teamwork: In today's networked working world, it is important to form effective teams and strengthen collaboration. Strong leadership creates an environment in which everyone can develop their potential.
- Developing talent: Managers identify and promote talent. They are important for the future of the company as they develop the next generation of managers.
- Managing complexity: Today's working world is full of complex challenges. Capable managers analyze complex situations, make clear decisions and manage risks.
- Shaping culture and values: Managers influence the corporate culture and set ethical standards.
- Create competitive advantages: Companies with strong leadership are often more innovative and agile. Effective leadership has a direct impact on business success.
Leadership example 1: Transformational leadership
What is that?
Transformational leadership is more than just giving instructions. It creates change and inspires. As a transformational leader, you generate enthusiasm, promote innovation and encourage your team to excel. You set clear goals and communicate a vision that inspires everyone.
Four pillars characterize this style:
- Inspiring motivation: You are a motivator, give rousing speeches and convey a clear, captivating vision of the future.
- Intellectual stimulation: You challenge your team to question the status quo and think creatively.
- Individual consideration: Each team member is individually encouraged and supported by you.
- Ideal influencing behavior: You exemplify values and standards that inspire your team.
Example: Satya Nadella as CEO of Microsoft
Satya Nadella took over as CEO of Microsoft in 2014. At the time, Microsoft was known for its traditional IT focus and was fighting for its position in a rapidly advancing technology market.
Nadella implemented a radical cultural change. He changed Microsoft’s mission to “enabling every person and every organization on the planet to achieve more”. He promoted a culture of empathy, collaboration and lifelong learning.
His use of open source technologies and cloud computing was particularly striking. In contrast to his predecessor, who was critical of open source, Nadella was in favor of collaboration in the open source sector and introduced Microsoft as a Platinum member of the Linux Foundation.
Effects on team and organization
Under Nadella’s leadership, Microsoft has undergone a radical transformation. Share prices rose significantly and Microsoft established itself as a leader in the field of cloud technology and artificial intelligence.
The cultural change towards more openness and collaboration led to increased innovation and adaptability. Today, Microsoft is not only a successful player in the digital age, but also a pioneer in terms of corporate culture and digital transformation.
This example shows how transformational leadership can not only change the strategic direction of a company, but also directly influence the corporate culture and the way employees work.
Leadership example 2: Servant leadership
What is that?
Servant leadership is all about serving. Here, the manager is at the service of the team. This type of leadership emphasizes values such as empathy, listening and the personal development of employees.
A servant leader puts the needs of the team above their own and fosters an environment of care and respect.
Example: Howard Schultz as CEO of Starbucks
Howard Schultz, the longtime CEO of Starbucks, is an excellent example of servant leadership. He transformed Starbucks from a small chain into a global phenomenon.
How? By focusing on the needs of his employees and customers. Schultz was known for working closely with his employees, listening to them and creating a culture based on trust and mutual respect.
He campaigned for healthcare and share options for all employees. He also took part-time employees into account, which was not common in the industry at the time.
Benefits for employees and companies
The advantages of servant leadership are manifold. This type of leadership leads to greater employee loyalty, as employees feel valued and listened to. It also promotes a stronger team culture in which trust and cooperation are paramount.
Companies that practice servant leadership often experience higher customer satisfaction because employees are motivated to provide exceptional service. In the long term, this management philosophy can lead to a more sustainable and ethical business model that benefits both the company and society.
Howard Schultz’s approach at Starbucks shows how effective servant leadership can be because it not only helps the company grow, but also creates a work environment based on caring and respect.
Leadership example 3: Situational leadership
What is that?
Situational leadership means that managers adapt their leadership style to the circumstances. Accordingly, there is no one-size-fits-all solution for all situations. Instead, managers should be flexible and adapt their style to the needs of the employees and the organization.
Situational leadership theory, developed by Paul Hersey and Ken Blanchard, emphasizes that managers should tailor their approach to the task and the maturity or development of the employees.
This theory divides leadership styles into four categories: Telling, Selling, Participating and Delegating, where each style is applied according to the competence and commitment of the employees.
Example: Steve Jobs as CEO of Apple
Steve Jobs, the legendary founder of Apple, is a prominent example of situational leadership. He was known for selling his visions with enthusiasm and could even motivate teams to pursue internally unpopular ideas – which were ultimately very successful.
Jobs also used a delegating approach by hiring the best people for areas where he himself was not necessarily an expert, such as when he founded the Pixar film studio. Depending on the situation, he was able to switch between different leadership styles.
Adapting the management style to different situations
Situational leadership requires a deep understanding of the individual needs and abilities of the team members. It’s about finding the right management style for the respective situation and person.
For example, new employees often need direct guidance, while autonomy plays a greater role for experienced employees.
This flexible approach enables managers to lead their teams more effectively as they can respond to the different needs and skills of their employees.
Situational leadership promotes the personal responsibility and motivation of employees and can lead to greater loyalty and higher performance in the team.
Leadership example 4: Charismatic leadership
What is that?
Charismatic leaders have a number of qualities that enable them to motivate and inspire their followers.
These qualities include: exceptional communication skills, strong self-confidence, emotional expressiveness, inspirational motivation, a strong vision, passion, authenticity and a high risk tolerance.
Charismatic leaders are often able to communicate their visions very convincingly and establish a deep emotional connection with their followers.
Example: Nelson Mandela
Nelson Mandela is an example of charismatic leadership. Despite enormous personal sacrifices, including 27 years in prison, he consistently remained true to his message of peace and equality.
His impressive leadership in difficult times, his rousing speeches and his commitment to standing up for equal rights worldwide make him one of the most influential charismatic leaders.
Opportunities and challenges
Charismatic leaders inspire their teams through example and vision. They create a strong sense of belonging, which leads to higher morale and team spirit. Their gift for communicating visions in a forceful and convincing way motivates employees to go beyond their own interests. However, it is important to critically scrutinize charismatic leaders to ensure a positive and ethical influence.
This type of leadership increases motivation and commitment, but also harbors risks. Too much power and emotional attachment to one person can be problematic. A balanced leadership style that combines inspiring aspects of charisma with other important leadership qualities is therefore crucial.
Leadership example 5: Democratic leadership
What is that?
Democratic leadership emphasizes the participation of all team members in decisions. Every opinion counts here. Managers focus on collaboration and open exchange, valuing the contributions of employees.
It is about promoting personal responsibility and actively involving employees in decisions, which creates a strong sense of belonging. Finding consensus through group discussion is the key here.
Example: Tim Cook as CEO of Apple
Tim Cook, the CEO of Apple, is a prime example of democratic leadership. Since 2011, he has established a culture that encourages employees to get involved.
His style is characterized by openness and the promotion of creative freedom. Cook surrounds himself with people who challenge him and inspire him to come up with creative solutions, which continues to make Apple successful.
Opportunities and challenges
The benefits include increasing employee satisfaction, promoting team spirit and developing employees’ skills. However, this form of leadership can be challenging in times of crisis and the multitude of opinions can slow down decision-making processes. Sometimes employees lack the experience to make the right decisions.
Democratic leadership is widespread in leading companies such as Coca-Cola, Apple and Google. It respects the opinions of employees and involves them in decisions, which shows that leadership can also work from the bottom up.
With the knowledge that you are a role model and are being watched, you have a great opportunity to shape the culture.
Thomas Kleindessner (CEO & Co-Founder of Leaders21)
Not a one-fits-all solution
Our five examples show how diverse and effective leadership styles can be. Each style has its strengths and is suitable for different contexts and situations.
The key is to choose the style that best suits the specific needs of your team or organization. There is no such thing as a one-fits-all solution.
To do this, you need to develop a deep understanding of the needs of your team or organization. This is the only way you can use the respective leadership style effectively to achieve your common goals.
