Which Leadership Style is Best for Building a Strong Company Culture?

Leadership is the cornerstone of a thriving company culture. When you have the right leaders in place, they embody the core values and inspire their teams to do the same, and they cultivate an environment where people feel valued and recognized.

So, step number one is to make sure you have the right leaders in place. But what does that really mean? Is there a certain style a leader must have in order to build a thriving culture?

On the contrary, there are many different effective leadership styles, and the best leaders use all of them, adjusting and shifting their style to meet the needs of any given moment.

We often work with managers to master Daniel Goleman’s Six Leadership Styles – Coercive, Authoritative, Affiliative, Democratic, Pacesetting, and Coaching.

Each has its own merits and can be instrumental in shaping a company’s culture when used effectively. The key to successful leadership is not choosing one style over the other but rather understanding the unique needs of each person and each situation and using the right leadership style at the right time.

The Six Leadership Styles

1. Coercive Leadership: This “Do what I tell you” approach is most effective in times of crisis when immediate compliance is necessary. However, overuse can stifle innovation and make employees feel undervalued.

2. Authoritative Leadership: The “Come with me” style mobilizes people towards a vision. It’s great for providing clear direction and motivating change, but it requires a leader who can articulate a compelling vision.

3. Affiliative Leadership: The “People come first” style creates harmony and builds emotional bonds. It’s particularly useful for building team cohesion or improving communication.

4. Democratic Leadership: This style values the team’s input and commitment to group consensus. It can lead to high flexibility and responsibility but may result in slow decision-making.

5. Pacesetting Leadership: The “Do as I do, now” approach sets high standards for performance. It’s effective for achieving quick results from a highly competent team but can overwhelm team members and squelch creativity.

6. Coaching Leadership: This style focuses on personal development. It’s excellent for helping an employee improve performance or develop long-term strengths, but it requires time and patience.

The Art of Flexibility

The art of leadership is knowing when to apply the right style. A leader who can seamlessly switch between these styles, depending on the situation, is more likely to foster a strong, adaptive, and resilient company culture.

For instance, during a turnaround or in the face of market disruption, an Authoritative or Coercive style may be necessary to set a new direction or enforce critical changes. On the other hand, when aiming to build consensus on a new project, a Democratic approach might be more appropriate.

Conclusion

There is no one-size-fits-all answer to which leadership style is best. The most effective leaders are those who can assess the needs of their company and team, understand the nuances of each situation, and apply the appropriate style.

By mastering all six leadership styles, leaders can ensure they have the tools necessary to  create a thriving company culture, one that is robust, dynamic, and aligned with their strategic vision.