How Leadership Styles Influence Organisational Success

Leadership is the backbone of any thriving organisation. It sets the tone for how teams operate, defines the company culture, and drives the strategic direction of the business. Choosing the right leadership style, however, can mean the difference between a high performing team and disengaged employees struggling to meet goals.

We explore how leadership styles shape organisational success. We’ll unpack research on their impact on company culture, employee engagement, and overall productivity. You’ll also discover practical tips for leveraging the right approach to guide your team.

The Role of Leadership in Organisational Success

The executive leadership team  doesn’t just inspire—it also determines whether organisations adapt, innovate, and excel in competitive markets. Recent studies underline its impact on everything from employee satisfaction to financial performance. A Gallup poll highlighted that up to 70% of the variance in employee engagement can be attributed to the quality of their leader.

Leadership Styles and Their Impact on Organisational Success

Your leadership style isn’t just a personal preference—it shapes the foundation of your organisation’s culture, employee engagement, and productivity. Here’s how:

1. Organisational Culture

Leadership styles have a profound influence on organisational culture. Leaders who adopt a transformational leadership style—where they inspire growth and innovation—tend to foster open, adaptable, and forward-thinking environments.

On the other hand, autocratic leadership, though effective for situations requiring quick decision-making, can lead to rigid, hierarchical cultures where adaptability suffers.

2. Employee Engagement

Employee engagement is the heartbeat of organisational health. Leaders who actively involve their team in decision-making, like those practising democratic leadership, often achieve higher engagement levels. Employees feel valued, and their motivation to contribute to organisational goals increases.

For example, a study published in the Harvard Business Review revealed that companies with democratic leadership styles reported up to 25% higher employee loyalty and retention. Compare this with laissez-faire leadership, where minimal oversight can lead to disengagement or confusion if expectations aren’t clear.

3. Team Productivity

High performing teams rely heavily on effective leadership. Research by Zenger Folkman found that teams led by strong leaders outperform their peers by over 25%.

Directive leadership—where leaders provide clear guidance and set performance expectations—has its place in high-stakes deadlines or projects. On the other hand, highly autonomous teams excel when guided by coaching leadership styles that focus on skill development.

Each leadership style has its strengths, but the key lies in understanding what style suits your team and organisational objectives best.

How to Identify and Apply an Effective Leadership Style

Every organisation is unique, and so is every leader. Building a high performing team requires understanding and implementing the leadership style that aligns with your organisational goals and team dynamics. Here are actionable steps to guide your journey:

1. Reflect on Your Strengths and Values

To foster a high performance team, start by understanding your own leadership strengths and values. Are you a visionary leader who excels at inspiring others, or do you prefer to empower your team to make decisions? Ensure your personal values align with your role as a leader.

2. Understand Your Team’s Needs

Knowing your team’s needs is crucial for high performance. Evaluate their experience levels, work preferences, and challenges. For instance, junior team members might need more guidance, whereas seasoned professionals may excel with greater autonomy.

3. Adaptability is Key

Executive leadership demands flexibility. Be prepared to adapt your style—for example, use a coaching approach during development phases and a more directive style when meeting deadlines.

4. Enhance Communication

Clear communication is vital for any leadership style, especially in high performance team training. Regular check-ins, open forums, or digital tools help maintain alignment and transparency.

5. Cultivate Emotional Intelligence

Effective leadership in high performance teams relies on empathy and emotional intelligence. Strengthen team relationships, foster trust, and encourage meaningful collaboration.

6. Seek Feedback

Great leaders in executive positions seek constructive feedback on their management style. Continuous feedback from peers and team members can highlight strengths and areas for improvement, promoting ongoing growth. Integrating these steps into your leadership approach will help you build and sustain a high performing team, driving success at every level.

Why Leadership Will Define the Future of Work

The role of leadership continues to evolve. With hybrid work environments, increasingly diverse teams, and fast-paced innovation, the challenges of leading teams are becoming more complex. However, the right leadership style can act as a guiding force, ensuring stability, growth, and agility for organisations of all sizes.

Leaders who invest in developing their style will cultivate high performing teams, foster employee engagement, and consistently deliver on organisational goals. Leadership isn’t static—it’s a skill that grows with experience, feedback, and a willingness to adapt.

If you are navigating the challenges of leadership or wish to refine your approach, there’s always support to help you thrive. Remember, behind every great team is a leader driving success.