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What is Effective Leadership?

Updated: Sep 16, 2018

There are a myriad of definitions that exist to define what leadership actually means in the world of business today. This is because business owners, managers and experts all have their own ways to define what leadership means to them.

Ultimately, all styles of leadership have to be effective, whether it is in the world of business (as this guide is focused on) or other areas such as politics, or everyday life.

If leadership in the business context is the ability that a company’s Management has to make concrete decisions and inspire others to perform at their most productive; effective leadership is the ability to set and achieve challenging business goals, take decisive actions when faced with challenging business scenarios, outperform the company’s competition, take calculated risks and continue moving forward even in light of failure.

Types of Leadership Styles

According to Leadership Expert, there are four primary styles of leadership and each different style has a time and a place when it is most effective. A leader should demonstrate elements of each leadership style in order to be the most effective version of themselves.

The Charismatic Leader

  • Infectious energy with a passionate personality

  • Drives other people to please them, or to be drawn to them

  • Highly effective at kick-starting their team into action and solving problem.

  1. The Democratic Leader

  • Makes all team members feel valuable

  • Acknowledges individual input as part of the wider team

  • Creates a dedicated workforce by giving them ownership of the company’s business goals

  1. The Commanding Leader

  • Forceful personalities that are unapologetic in their approach which can cause conflict with the wider team

  • Demands strict adherence to rules and standards from their team

  • Absolutely vital in times of a business crisis

  1. The “Laissez Faire” Leader

  • Take a ‘hands-off’ approach to leadership

  • Gives little guidance to teams, allowing them to make most of the decisions

  • Successful in mature teams, but can be very unhelpful if a team needs a clear direction

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