Why Is It Important to Understand Your Leadership Style?

Leading a company is not just about whether you can keep your teams on a strategic course, manage performance, work to budget forecasts and ensure resources are deployed where they need to be on any given day… it must be so much more than that. How do you show up, empower, create trust, communicate clearly, manage change and lead ethically? 

If, as a leader, you don't understand yourself on a deeper level, you can’t grow and develop. And if you can’t find the capacity to thrive and flourish yourself, how can you effectively help and support your teams?  That’s why it’s important to understand your leadership style.

However, in my coaching practice, when I ask my clients, many don’t know what “leadership style” is, never mind what theirs might be. This is not uncommon, over 50% of leaders can’t recognise ‘their own needs and drivers, let alone have the ability to recognise other people’s.’

As a rough guide, leadership style is the way you approach managing your team, encompassing how you act, the types of decisions you make, your methods, and experiences based on your unique journey. These metrics combined give you your leadership type.

Leadership style is the way you approach managing your team, encompassing how you act, the types of decisions you make, your methods, and experiences based on your unique journey.

How Many Different Leadership Styles Are There?

The intrigue around leadership styles didn’t just happen overnight; the study of leadership as a discipline and traits began in the early 20th century when theories began to emerge.

Often credited as being the founder of leadership styles is Kurt Lewin, a German-American psychologist who coined the terms autocratic leadership, democratic leadership, and laissez-faire leadership.

However, it wasn’t until the 1980s that these theories became mainstream,  and we’ve come up with a lot more leadership styles since then.

Depending on who you ask, there are now between six and 21 different leadership styles! Autocratic, democratic, transformational, transactional, Laissez Faire, servant, situational, charismatic, authentic, visionary, coaching, bureaucratic, pacesetting… the list goes on.

And of course, in truth, many of us are all of these types of leaders at some time, depending on the task, the team, and the deadline! 

However, finding your unique style, motivation, and understanding the strengths and opportunities, whilst also considering how to lead “opposite types”, is helpful for your own development, and this is where coaching will really support you. 

Some leadership styles are more common while others are more niche. However, let’s explore the top three leadership styles that emerged from the six most common based on a global study involving 1,164 professionals from 48 countries.

1. Democratic (46.9%)

We should not be surprised at this result, as this leadership style often makes the top three of ‘the most common leadership styles’ lists.

Democratic leaders, also known as participative leaders, hold their employees' and teams’ input in high value and readily welcome their participation. They want their team to contribute to group and one-to-one discussions, so they have the opportunity to weigh in on decisions.

In Short: They want high engagement, collaboration, and excellent communication.

What Works: One of the key benefits of the democratic leadership style is that they have a positive impact on company culture and working environments, thanks to its ethos of open communication and dedication to team satisfaction.

Room for Development: However, all leadership styles have consequences, and this style of leadership doesn’t work well with time constraints and environments where there’s no room for error. This is because asking for everyone’s opinions isn’t always the most cost and time-effective option.

2. Affiliative (20.6%)

This next leadership style shares some affinities with the democratic leaders; they’re both all about people.

The affiliative leadership style wholly focuses on people and relationships within the workplace. This people-first approach ensures harmony and peace to create the best possible working environment. They form and facilitate strong team bonds and emotional connections while quickly and swiftly resolving team conflicts.

In Short: They’re empathetic problem solvers who want to create good working relationships.

What Works: One of the key benefits of affiliative leaders is that they prioritise low stress and high autonomy, making them great pacesetters as they take into consideration their teams’ emotional wellbeing, which often creates a close-knit team.

Room for Development: Despite this, there is a risk of underperformance due to the focus on peace and harmony, and affiliative leaders typically try and avoid difficult situations which will upset someone. Therefore, disciplinary actions can be hard for this leader to enforce.

The key benefit of affiliative leaders is that they prioritise low stress and high autonomy, making them great pacesetters as they take into consideration their teams’ emotional wellbeing.

3. Charismatic (18.8%)

Just as the name suggests, this leadership style runs their employees and teams through their charming personality.

But that’s not the only thing that makes up this type of leader. Charismatic leaders have strong communication skills and are incredibly persuasive, and they use this to their advantage to get the most out of their team. They are often seen as inspiring and a role model to look up to, as they evoke powerful emotions from others.

In Short: Charismatic leaders are good at stimulating motivation and inspiration, empowering people to do their best.

What Works: One advantage of the charismatic leadership style is that they are forward-thinking and often open to taking risks. These leaders are great at seeing the bigger picture, meaning they can explore new approaches and opportunities with confidence.

Room for Development: However, some charismatic leaders seem bigger than the company brand and can make succession planning very hard. They can get lost in their own words and ego, believing in themselves and their team so strongly that they overlook errors and mistakes.

The other leadership styles that ranked in the list were pacesetting (7.7%), laissez-faire (3.1%), and authoritarian (2.8%). So, you might be one of these six most common leadership styles, or you might be another. But I guess you’re now asking yourself the question: ‘What’s the best leadership style for me?’

Is There A “Best” Leadership Style?

It’s easy to think that this question has a simple yes or no answer, but it isn't!

Although some leadership styles are more commonly used than others, that doesn’t mean they are definitively the “best” type of leadership. It all depends on the environment, the leader’s strengths and weaknesses, and the team.

As we’ve already seen, leadership styles are based on the person’s characteristics as well as their personal experiences. Therefore, there isn’t often one leadership style that will work best for everyone and in any situation. And where does your authenticity, learned experience, and unique skills sit in here?

Democratic leaders work well in creative environments but may falter in crisis management. Affiliative leadership works best in rebuilding trust and morale but struggles in low-performing or high-pressure environments where tough decisions and accountability are needed. Charismatic leaders shine in visionary roles but might struggle with detail-oriented execution.

So, is there a best leadership style? No, it's much more nuanced and complex than that. But is there the right blend that you can find for you? Absolutely yes!

This is where coaching really helps your leadership development. Who are you? Who does your role need you to be? What is the context of culture and expectations of your leadership?

By working through tried and tested techniques, coaching can help you to navigate your leadership development in new ways and to feel confident and comfortable with your own unique approach to leadership.

Once you understand your leadership style, both the positive and the developmental sides, you can face any challenge, industry, or team head-on. And once you figure out how you best operate, that becomes your best leadership style, and you’ll then know how to get the most out of the business and your team.

Once you understand your leadership style, both the positive and the developmental sides, you can face any challenge, industry, or team head-on.

How to Find Out Your Leadership Style with Me

Ready to find out what kind of leader you are?

Whether you’re unsure of your leadership style or looking to deepen your impact, I offer one-to-one leadership coaching tailored to your unique leadership journey.

As a qualified Executive Coach with over 30 years of experience as a CEO and business leader, I’ll work with you to identify your leadership style and drivers, strengthen your communication and confidence, and tackle challenges with resilience and self-awareness.

Together, we’ll unlock your leadership potential and build a road map for sustained professional growth.

Book a free consultation today to get started. Let’s discover how leadership coaching can transform your impact.