Entrepreneurial Leadership Styles

Are You A Business Owner?

Good for you! Welcome to the entrepreneurs club.

How did you attain your membership status? Perhaps you took the leap of faith and decided to forge ahead and start your own company with your own idea. Maybe you bought an existing business. Or you may have taken over or moved to ownership status in your established family business.

No matter HOW you became an entrepreneur, you now define yourself as one. KUDOS to you as it certainly is not an easy path, no matter how you got there!! 

Regardless of how you gained your entrepreneur membership card, whether you run a solo or joint venture, the reality is that most of us want to find ourselves running a company that actually pays the bills. If the goal is to grow that business, generally you will have to rely on a team of people to help you. If you want to elevate a company from kitchen table to boardroom status you need much more than just ideas, you need skills, and arguably the most important is the ability to lead others effectively.  

The first thing to consider is your leadership experience type. 

1. Established leader type- An established leader moved from a leadership/managerial role as an employee in a company to an owner in a company. This would probably be the easiest transition as you have already taken on leadership duties and learnt how to manage staff ‘on the job’. One would assume you know how to motivate and effectively manage a team.
2. Junior Leader type -You have experienced situational leadership in roles as an employee/family member. There are quite a few examples of this type. You may have been seen as a leader within a company due to your position, seniority or surname, but you don’t have a defined managerial role. In this case you may take on some managerial duties as a part of your job description, but it’s not the focus of your role. Another option is that you are temporarily covering a managerial position, or perhaps you are a new manager who is learning the nuances of leadership. You could also be in a small company ( under 10) where you are seen as a senior staff member, but you don’t actually have anyone ‘under you ‘ to manage directly.  
3. Natural Leader type- You were captain of the volleyball team at high school, people say you have leadership qualities, but you just haven't been in an actual role that involves managing others regularly on a day to day basis.
4. Never a Leader type- You’ve never been a 'leader' of people before, either because the roles you had didn't demand it, you didn't pursue it OR you just weren't willing or offered the opportunity to 'go there' as a paid employee. Another option is that you have avoided leadership roles, you didn’t want the responsibility and accountability or you simply lacked confidence or desire to lead. 

Wherever you land on the ‘leadership type scale’ and I, just for the record, was #2 when I started my company, you need to ensure that you bring your BEST leadership skills to your business asap, or it will cost you lost time, wasted money and personal stress! 

So What Does Effective Leadership Look Like? 

The generally accepted view of leadership is that organizations no matter how small are divided between leaders and followers. 

The hierarchical leadership visual above is the way many people think leadership works. Leader at the top, then a cascade of leadership in tiers beneath. It almost looks almost like a champagne tower. 

Responsibility in leadership is universally recognized as a requirement for long-term business success, but as you grow it can, and I believe it should, be shared. Accountability in leadership is something that we will talk about at length later, as it becomes more complicated the bigger your organization gets.  

I have worked in businesses of all sizes, from multinational organizations with 1000’s of employees, to my own business, just me at my kitchen counter. Running a small business generally means leaders can react faster and be more nimble. This can be a wonderful benefit, but the obvious drawback is if decisions are made too quickly and without enough thought and experience to back them up, issues arise and mistakes are made. Larger organizations have defined processes and a layer of HR that protect leaders from making silly mistakes, but change rarely happens fast in a bigger corporation or organization.  

LEADERSHIP STYLES IN SMALL BUSINESS

Firstly ask yourself, what kind of leader do you want to be? 

I have outlined styles that I have encountered on my life journey as an employee and a business owner, and in all honesty, I openly admit the I have been each of these types myself at times in my personal entrepreneurial journey.

1. The BOSS Leadership style

Boss leaders are structured, they build on a foundation of order, accountability, and efficiency. This kind of structure seems from the outside rigid, but it definitely has shown to bring results in both small and big business for as long as we can all remember! The military and government are structured on this model, and it works very well in that kind of environment.

This is what I thought a company leadership chart was supposed to look like when I started my own business in 2011. 

The history of this style goes back to when limited access to money, education and technology kept the average person from advancing beyond working-class jobs. These jobs often involved physical labour in the fields and factories. Historically the boss would be a well-educated man, as would most of the managers under him.  This ‘masculine' setup does have drawbacks - it can stifle creativity in a company, and the rigid structure of top-down leadership means career advancement may seem to be difficult or unattainable. Companies that run in this manner can lose talented people who feel stifled or disenchanted. I think we all agree that it probably isn't the best style for most small businesses.  

The function of leadership in this older patriarchal model was control and management, however, it does allow for some flexibility, unlike the next leadership style under my microscope. 

2. Autocratic Leadership style 

Also known as authoritarian leadership, this is a leadership style characterized by individual control over all decisions and little input from group members. Autocratic leaders typically make choices based on their ideas and judgments and rarely accept advice from followers. They passionately believe they always have the best ideas, even if others don’t agree with them.  

To understand autocratic leadership let's look back at its history. it’s beneficial to examine the origins of the word autocracy. The word has Greek roots, and the word signifies independent and self-sustaining power. The word ‘auto' means self and ‘cratic' means rule. To lead autocratically, the Greeks thought a person must lead with self-confidence. 

Autocratic leadership in business involves absolute, authoritarian control over their team. One common area in which to find autocratic leadership examples is within sports. A team's coach, manager or owner can exhibit autocratic leadership traits. This can create a strict, success-focused team culture. While autocratic leadership has historically meant concentrating the power in the control of one person, to be successful in the long term, autocracy requires a surrounding power structure that holds the leader(s) somewhat accountable - this can be a strong supportive management team, board or paid consultants that the autocratic leader will at least listen to, if not always figure into their final decision. Think of the Trump administration, which I believe shows autocracy in action! Without this safety net of semi -accountability, autocratic leaders can drift into the realms of totalitarian leadership - which we all know never works in a free economy for long! 

Business leaders who rely on this approach too heavily are often seen as bossy or dictator-like, this leadership style may leave team members feeling like they aren't part of a team and that they aren’t trusted with decisions or important tasks. This is costly, and if not managed will affect the growth and long-term success of a company. People will leave if they are not heard and their talents not valued.

The opposite of autocratic leadership is accountable leadership. 

3. ACCOUNTABLE Leadership style. 

"The function of leadership I aspire to is something quite different, I have learned to embrace accountability.”  - Sara Wheelwright

Instead of managing order and rank, or micromanaging and enforcing my every whim or desire on my team, I am working to create an opportunity to inspire and encourage leadership in every role in my business. In an effort to do that, I have learned to focus on accountability as a leader and to aim for transparency as a business. 

In the image to the right, the leader is in the centre, NOT at the top. This visual clearly infers fluidity, not rigidity. As a leader, I am absolutely fine with moving aside and allowing others to take my place at the centre when it is apparent they know more than me on a subject. If they can add more to the project than I can I am happy and grateful that they can take the lead. I remain involved and am there to offer my input, but I don’t have to be seen as ‘the expert’. However, I always place myself back in the centre when it comes to accepting accountability. 

I believe Ego is the enemy when it comes to successful leadership and entrepreneurship.

The Buck Stops Where??

Did you know that President Harry S. Truman had a sign on his desk that read: “The Buck Stops Here.” 

Displaying the sign was a very public commitment that clearly demonstrated that as the President and a leader, he accepted accountability for ALL of the decisions and outcomes of his administration and his team. 

Without actual accountability in leadership, I believe that even the most extrovert, talented, hard-working, passionate leaders will eventually (or quickly) fail. They will fail to meet company goals, they will fail to effectively engage their team, they will fail to hire and retain good talent, they will fail to communicate clearly, they will fail to measure performance, and eventually, if unchecked, they will fail the business overall. 

Essentially, my experience has shown time and time again that effective leadership requires regular and real accountability. Accountability can be tough, as you may have to listen to the feedback you’d rather not hear from employees, partners and clients. However, I believe accountability is vital as a leader, as it will help you improve, especially if you are a small business owner. 

When you accept personal accountability as an entrepreneur you sign up to owning your company's failures along with its successes. If you own a small business your behaviour and your actions matter to the success of your team and your company. Accountable leaders do not blame others when things go wrong. Rather, they work with their team to fix issues as they arise and, most importantly they LEARN lessons. Accountable leadership means understanding that repeatedly making the same mistakes in business is the quickest way to demoralize talented team members.

Talented uninspired employees leave. Untalented employees may stay and take a paycheque because it’s easy to do that in a company whose culture lacks accountability.  Those that stay rarely care about the success of the company they work for, they just show up. 

Accountable leadership means stepping up, answering and asking questions. Leaders that are accountable strive to build teams that are accountable. In return they are rewarded, as the culture of a company thrives due to a feeling of ownership and that responsibility is infectious.

I can only speak for myself, but I found taking responsibility as a business owner and a leader was frightening at first. It’s way easier to ignore, deflect and re-accuse, but until you take responsibility you are nothing more than a figurehead. A figurehead can quickly become a deflecting martyr, and that is the opposite of a leader.

So How Do You Become A More Accountable Leader? 

You can start with modelling the desired behaviour traits you value. 

1. Accountability begins with being real. You have to set aside your personal pride, admit if you messed up and you can’t lie to yourself. Real leaders are seen as accountable because they are open to reviewing their own roles in a situation and they seek out solutions to resolve issues, conflict, and challenges in an authentic and genuine manner.
2. Accountable leaders aren’t afraid of apologizing when something they have done goes wrong. They understand that saying the word sorry is vital to moving forward with a fix. Once you have apologized you can focus on achieving the end goal, rather than on the issue or mistake that happened. 
3. Accountable leaders seek advice from others – they understand that making decisions in a vacuum is rarely the right way to go. If mistakes are made and/or outcomes aren't as good as expected they stop and consult with staff, partners, clients and friends. They put in the work required to find out how they could have done better. Accountable leaders don’t keep on making the same mistakes and expecting different results. They are open to change and actively look for input to improve their ways of handling situations, making decisions, and developing in-house talent.
4. Accountable leaders do not over commit and under deliver. They know when to say no for themselves and on behalf of their team. Before agreeing to new clients, new tasks, new deliverables, new to-do’s, or new projects... they review their team's schedules first. It can be tough, but regardless of their ‘desire ‘ to say yes to something they really want to do, or that may bring great financial rewards, they will only do so if they can ensure the best possible outcome for all involved.

This can be a learned leadership trait as a company grows - but certainly in my business, a marketing agency, I must consider whether myself and my team have the physical time required to complete the work on time and at the the quality level we expect , BEFORE I commit. 

So which leadership style are you?

I’d love to hear which leaders inspire you and why. Please comment below with your thoughts.