How it works
Every leader is an individual with
his or her own approach. However,
over the years, management gurus
have identified key leadership
styles that can be used to achieve
different results, depending on the
environment. Many frameworks are
based on the ideas of psychologist
Kurt Lewin, who developed his
theories in the 1930s with three
major styles: autocratic, democratic,
and laissez-faire (non-interference).
In 2007, for example, business
authors Eric Flamholtz and Yvonne
Randle developed a leadership
matrix based on Lewin’s theories,
which shows the best style to use
in any given situation, ranging from
autocratic (one all-powerful leader)
to consensus (decisions reached
by general agreement. Truly
inspirational leaders encourage
people to believe in themselves so
that they achieve results beyond
even their own expectations.
Leadership strategy
and styles
Top-down leadership, in which managers give orders, is not always
the best way to get results. A number of different leadership styles
have been identified by business experts.
TRANSFORMATIONAL LEADERSHIP
While different styles can suit different situations, transformational leadership,
in which leaders and their followers raise one another to higher levels of integrity
and motivation, was identified by guru James MacGregor Burns as the most
effective. This has been developed by others, including
industrial psychologist Bernard Bass, who listed
the qualities of a transformational leader.
Is a model of
integrity and
fairness
Sets clear
goals
Has high
expectations
Encourages
others
Provides
support and
recognition
Stirs the
emotions of
people
Gets people to
look beyond
their self-interest
Inspires people
to reach for the
improbable
“Outstanding
leaders go out
of their way to
boost the self-
esteem of their
personnel.”
Sam Walton
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88 89
HOW COMPANIES WORK
Human resources
When to use which leadership style
Affiliative
Coaching
Commanding/
coercive
Democratic
Pacesetting
Visionary/
authoritative
Style When to use Drawbacks
“People come before task.”
Focuses on creating emotional
bonds within a team and a
sense of belonging within
an organization.
Use in times of stress, when
teammates need to recover
from trauma, or when the
team needs to rebuild trust.
Praise and nurturing
can foster mediocre
performance and lack
of direction.
“Try this.”
Helps people find their
strengths and weaknesses,
linking these to career
aspirations and action.
Use to help teammates
build lasting personal
strengths that make them
more successful.
Coaching is ineffective
when teammates are
defiant and/or unwilling
to change or learn, or if a
leader lacks ability.
“Do what I tell you.”
Demands immediate
compliance, without
discussion or negotiation.
Only use in times of
crisis or to control a
problem employee
when all else fails.
Insistence should only be
used when essential; it
can alienate people, stifle
inventiveness, and create
a tense atmosphere.
“What do you think?”
Goal is to build consensus
through participation.
Use when it is necessary for
the team to buy into or have
ownership of, a decision,
plan, or goal.
This is not for use in crisis
or when teammates are
not well enough informed
to be able to offer suitable
guidance to the leader.
“Do as I do, now.”
Expects and models
excellence, creating
challenging and exciting
goals for the team.
Only use when the team
is already motivated and
competent, and when fast
results are necessary.
Style can overwhelm
some team members and
adversely affect employee
commitment; it may stifle
creativity and innovation.
“Come with me.”
Mobilizes the team toward
a common vision and goal,
leaving the means up to the
individual.
Use when the team needs
a new vision because
circumstances have
changed, or when explicit
guidance is not required.
This is not effective
when a leader is working
with a team of experts or
better-informed group.
A three-year study of 3,000 managers led psychologist
Daniel Goleman to uncover six distinctive styles of
leadership. Each style has a significant impact on how
people feel about their work. The most effective leaders
master a number of styles and use them appropriately
according to the situation.
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88 89
HOW COMPANIES WORK
Human resources
When to use which leadership style
Affiliative
Coaching
Commanding/
coercive
Democratic
Pacesetting
Visionary/
authoritative
Style When to use Drawbacks
“People come before task.”
Focuses on creating emotional
bonds within a team and a
sense of belonging within
an organization.
Use in times of stress, when
teammates need to recover
from trauma, or when the
team needs to rebuild trust.
Praise and nurturing
can foster mediocre
performance and lack
of direction.
“Try this.”
Helps people find their
strengths and weaknesses,
linking these to career
aspirations and action.
Use to help teammates
build lasting personal
strengths that make them
more successful.
Coaching is ineffective
when teammates are
defiant and/or unwilling
to change or learn, or if a
leader lacks ability.
“Do what I tell you.”
Demands immediate
compliance, without
discussion or negotiation.
Only use in times of
crisis or to control a
problem employee
when all else fails.
Insistence should only be
used when essential; it
can alienate people, stifle
inventiveness, and create
a tense atmosphere.
“What do you think?”
Goal is to build consensus
through participation.
Use when it is necessary for
the team to buy into or have
ownership of, a decision,
plan, or goal.
This is not for use in crisis
or when teammates are
not well enough informed
to be able to offer suitable
guidance to the leader.
“Do as I do, now.”
Expects and models
excellence, creating
challenging and exciting
goals for the team.
Only use when the team
is already motivated and
competent, and when fast
results are necessary.
Style can overwhelm
some team members and
adversely affect employee
commitment; it may stifle
creativity and innovation.
“Come with me.”
Mobilizes the team toward
a common vision and goal,
leaving the means up to the
individual.
Use when the team needs
a new vision because
circumstances have
changed, or when explicit
guidance is not required.
This is not effective
when a leader is working
with a team of experts or
better-informed group.
A three-year study of 3,000 managers led psychologist
Daniel Goleman to uncover six distinctive styles of
leadership. Each style has a significant impact on how
people feel about their work. The most effective leaders
master a number of styles and use them appropriately
according to the situation.
US_088-089_Leadership_Strategy_and_Styles_Steve.indd 89 21/11/2014 16:22
Just as generals have to get the best from their troops, so business
leaders must make the most of their teams. The key is ensuring
that individuals work together to achieve a common goal.
Leadership for
team building
How it works
From statesmen such as former British prime minster
Winston Churchill to former General Electric
CEO Jack
Welch, great leaders know
that to achieve a long-term
goal, they must not only use their own capabilities but
also maximize the combined strength of other people.
They have a passion that sweeps people along with
them; they learn from mistakes and are prepared to
alter their course to meet changing circumstances.
Much academic work has been done to study the
traits and strategies of such leaders.
How leaders inspire
their teams
Academic Carl Larson and organizational
effectiveness expert Frank LaFasto
conducted a three-year study of more
than 75 diverse teams. They identified
six characteristics of leadership that steer
a team toward optimum results.
Focusing on goal
Defines goal in clear and
inspirational way
Helps each team member see
how they contribute to goal
Does not play politics
Encouraging
collaboration
Allows open discussions
Demands and rewards
collaboration
Involves and engages people
Building confidence
Accentuates the positive
Shows trust by assigning
responsibility
Says “thank you”
“Leadership is
the art of getting
someone else to
do something you
want done because
he wants to do it.”
Dwight D. Eisenhower
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90 91
how companies work
Human resources
BUILDING AN EFFECTIVE TEAM
In their book The Wisdom of Teams (1993),
Jon Katzenbach and Douglas Smith make
a distinction between teams and ordinary
groups of people who work together.
They define a team as “a small number
of people with complementary skills who
are committed to a common purpose, set
of performance goals, and approach for
which they hold themselves mutually
accountable.” They found that leaders who
manage to build successful teams tend to:
Select members for skill and potential,
not personality.
Focus on a few immediate tasks and goals
at the beginning, to help the team to bond.
Set boundaries and behavioral norms.
Stimulate the team regularly with
new information, encouraging open
discussions and active problem-solving.
Ensure that the team spends lots of time
together, both in and outside of work.
“Don’t
find fault
– find a
remedy”
Henry Ford,
American industrialist
Providing
know-how
Knows own area
Gets expert help for
other areas
Shares context with team
Setting priorities
Demonstrates focus; avoids ambiguity
Is clear about what must and must
not happen
Is prepared to change course if
priorities switch
Managing performance
Sets clear objectives
Gives constructive feedback; confronts
and resolves performance issues
Aligns incentives with
team goals
1
2
3
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90 91
how companies work
Human resources
BUILDING AN EFFECTIVE TEAM
In their book The Wisdom of Teams (1993),
Jon Katzenbach and Douglas Smith make
a distinction between teams and ordinary
groups of people who work together.
They define a team as “a small number
of people with complementary skills who
are committed to a common purpose, set
of performance goals, and approach for
which they hold themselves mutually
accountable.” They found that leaders who
manage to build successful teams tend to:
Select members for skill and potential,
not personality.
Focus on a few immediate tasks and goals
at the beginning, to help the team to bond.
Set boundaries and behavioral norms.
Stimulate the team regularly with
new information, encouraging open
discussions and active problem-solving.
Ensure that the team spends lots of time
together, both in and outside of work.
“Don’t
find fault
– find a
remedy”
Henry Ford,
American industrialist
Providing
know-how
Knows own area
Gets expert help for
other areas
Shares context with team
Setting priorities
Demonstrates focus; avoids ambiguity
Is clear about what must and must
not happen
Is prepared to change course if
priorities switch
Managing performance
Sets clear objectives
Gives constructive feedback; confronts
and resolves performance issues
Aligns incentives with
team goals
1
2
3
US_090-091_Leadership_for_team_building.indd 91 21/11/2014 16:22
EmployEE forums
How it works
Employee relations and communications are, either
managed by human resources (HR) or as a function in
their own right, are increasingly sophisticated. Rather
than just relying on face-to-face talks and word of
mouth, successful firms use added communication
tools to help people understand the business goals and
the individual’s contribution to results. In particular,
Employee relations
and communications
Thriving organizations recognize the importance of harnessing people’s
ideas and energy to provide a competitive edge, while managers are
eager to gain, retain, and build employee commitment and engagement.
In many countries, employee communications used
to focus on structured industrial relations, managed
by HR. Employee relations are now based more on
trust and building strong relationships. Many firms
create formal works councils or employee forums.
At their best, employee forums:
Allow representatives from across the
business to share and generate ideas
for improving performance.
Encourage discussions on vision, changes,
and plans for business.
Recognize the value of employees.
Communication in practice
In this example, a company is establishing weekly
employee forums to facilitate communication and
build trust throughout the business. To strengthen
employee awarenees, engagement, and commitment
to the idea, various media are used, from email to
webinars and discussion. Managers focus ever more
on collaboration rather than just imparting information.
leaders no longer send only one-way messages but
harness a variety of interactive media, such as video-
and tele-conferencing. Individuals and teams can use
customized business social media, such as Yammer,
to share ideas and knowledge, but may still choose to
meet in formal settings such as councils and forums.
Awareness and
understanding
Engagement and
involvement
Commitment
@
ContaCt
An email is sent to
all employees with a
short video informing
them an employee
forum is to be set up.
Degree of Commitment
time
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92 93
how companies work
Human resources
$316
mil lion
the amount paid
in staff bonuses by
John Lewis in 2013
The UK-based John Lewis chain of
department stores is famous for its
unique employee-owned structure,
in which every worker is a partner
in the business. It has a number of
employee communication policies:
Gazette Employees can send
letters directly to management
through the weekly gazette.
Managers publish their responses
in the gazette for all to read.
Partnership council Made up
of 80 elected partners from across
the business, the council meets four
times a year. The chairman and
directors report to the council,
which can remove the chairman.
Branch forums Elected by
employees at each branch, these
forums work with management to
influence the running of their store
and select local charities to support.
Case study
John Lewis
CREATE
AWARENESS
The purpose of
employee forums
is explained at a
company-wide
video conference.
AID UNDERSTANDING
Resources placed on
the company intranet
detail how employee
forums will work.
STIMULATE POSITIVE
PERCEPTION
An inspirational seminar
illustrates the benefits
of the new forums.
ADOPT AND SHARE
Employees attend forums
and then share their opinions
on Twitter and Yammer so
they feel involved and
collaborate with managers.
ESTABLISH PRACTICE
A company-wide
awayday illustrates
to employees
how the forums
have changed
working practices.
REINFORCE AND
INTERNALIZE
Regular face-to-
face updates show
employees how
forums have
made a difference.
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