Moonshots Podcast: Learning Out Loud

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Most effective leadership styles for business success

At Moonshots we delve into the tools and frameworks of successful businesses, leaders and entrepreneurs. Today we want to explore  their leadership styles and the impact on the businesses they manage. At its core, leadership is about setting a direction for an organization and its people. We highlight some of the benefits of each style of leadership, including some examples of well-known people who we believe best embodies that style.  

Autocratic Leadership

These leaders rarely take advice from others, relying only on their own intuition and judgment while maintaining complete control over their organization. Autocratic leaders are more difficult to find in the world of business today, despite showing real success in the past. This style of leadership can be: 

  • extremely effective in situations where immediate action and quick decision-making is necessary. 

  • highly effective when they’re the most knowledgeable among the group and are able to figure out what’s best for the future of the organization. 

Steve Jobs was able to create the most recognized company of all time, Apple, by having a clear vision of what the company should be, as well as what the product should look and feel like. As he demonstrated time and again, he knew what customers wanted. His brilliant vision turned his followers and employees into believers. 

“Don't let the noise of others' opinions drown out your own inner voice.”

Steve Jobs, Apple co-found

Laissez-Faire Leadership

Laissez faire leaders intentionally remove themselves from the decision making process, placing complete trust in their employees. The leader remains in control of the direction of the organization, while letting the team beneath them choose how they want to get the job done. 

This leadership style requires people to motivate themselves and work completely autonomously, making it ideal for certain industries and not for others. In sectors with tight deadlines and little room for error or creativity, a more hands-on leader may be ideal.

Besides being one of the world’s richest people, Warren Buffett is known as being one of the savviest investors alive. His leadership style is very hands-off, as he delegates company activities and functions to trusted managers. The success of Buffett’s leadership style is owed partly to these highly competent and self-motivated staff members. Buffett is able to have complete trust that his people will make their own decisions, while he provides the guidance and resources.

“It's better to hang out with people better than you. Pick out associates whose behavior is better than yours and you'll drift in that direction.”

 Warren Buffet, Berkshire Hathaway Chairman, CEO

Transformational Leadership

Transformational leaders are among one of the most popular leadership styles today and have a clear set of values and a strong culture within their organizations, always leading by example. They motivate and inspire their followers not to work for their own rewards, but towards the success of the organization as a whole. 

They have the power to transform the future of an organization by encouraging innovation among their people. Traditional rules and regulations are thrown out the window in the name of growth, innovation and transformation.

In 1998, Reed Hastings began mailing DVDs with a business partner, and would eventually go on to develop the movie and TV streaming service we recognize today as Netflix. Aside from building a disruptive and transformational business model, Hastings exhibited a transformational leadership style in many ways. He brought his own version of human resources, eliminating formal reviews and bonuses, while encouraging employees to make their own decisions- as long as they “act in Netflix’s best interests”. Focusing on people has earned Netflix a strong work culture, as well as an 88% approval rating of Hastings, the CEO, according to Glassdoor. 

“Be big, fast and flexible”

Reed Hastings, Netflix CEO


Motivational Leadership

Motivational leaders are common in the worlds of sport and business. These leaders are able to motivate their people to achieve things they hadn’t thought possible. They use a variety of methods to motivate their people including positive reinforcement, humour, assisting in one-on-one situations and really getting to know what motivates each one of their people on a personal level. Above all else, these leaders believe in their people and want to see them succeed. 

Vince Lombardi is one of the most famous football coaches of all time. He coached during the 1950s-60s, when the league was not nearly as established as it is now.

He believed that winning was a habit that could be trained like any other skill, and he demonstrated it by winning 73% of the regular season games and 90% of the playoff games he coached. He had an authoritative personality who valued hard work and discipline. 

“Individual commitment to a group effort – that is what makes a team work, a company work, a society work, a civilization work.” 

 Vince Lombardi, NFL Coach

Transactional Leadership

A transactional leader relies on a system of rewards and punishments operating within their organization, and although they use a lengthy list of rules and regulations, they’re primarily concerned with results.

Often confused with transformation leaders, transactional leaders are more concerned with rewarding individual effort rather than that of the entire group.

These leaders don’t worry about motivating their people, but instead focus on the systems and structures in place that will reward them and guide the organization. These leaders are common in the military and large, international companies that require heavy oversight and order. 

Bill Gates built Microsoft into the behemoth it is today by keeping a tight grip on product strategy and production. A highly effective leader who knows his business in and out, he didn’t need anyone telling him how to run it. Gates has a reactionary style that can execute in the short term, and he wasn’t afraid of confrontation. He believed that people could be motivated continuously by rewards and punishments, famously stating : 

“I believe that if you show people the problems and if you show them the solutions they will be moved to act”.

Bill Gates, Microsoft founder


Charismatic Leadership

Charismatic leaders display ultimate confidence in themselves and exhibit glowing personalities that attract followers by the masses. They have a way of speaking to people that allows strangers to connect with them on an emotional level.

They’re determined to find solutions for their organizations, and use their optimistic attitude to inspire their followers. Unlike bureaucratic leaders, charismatic leaders generate power from their own personality, rather than their title or position. By simply being themselves, a truly charismatic leader will get results by motivating and inspiring those around them to fulfill the organizational vision.

Among many charismatic past presidents, Barack Obama is a standout leader. Born from mixed race parents, Obama would go on to be America’s first African American President.  A gifted public speaker, Obama told his inspirational life story on the campaign trail, encouraging a record amount of people to come out and vote for him. During his campaign through to this day, Obama dedicated himself to social justice and progress, representing the new face of change in the western world.

“Change is never easy, but always possible” 

Barack Obama, 44th American President