Third In a Series Of CEO Leadership Issues That Apply to All Stages of Growth 

Originally published on March 22, 2018.

Do You Know the Importance of Leadership Styles For Your Stage of Entrepreneurial Growth and When To Apply Them?

James Fischer, the author of Navigating the Growth Curve, discovered the primary issues that CEOs must address in each of the 7 stages of growth on the journey from 1 to 500 employees. Unless the CEO and his team address them at the right time, the enterprise can derail or stagnate.

In this series you will learn:
The Leadership Style and Competencies the CEO and his team must develop and adapt as they navigate the 7 Stages of Growth. The following chart illustrates the number of employees that determine each stage and the stage name along with the chaos zones (Wind Tunnels and Flood Zones) associated with the transition between states.

The Importance of Leadership Styles

According to Daniel Goleman, author of Primal Leadership, “Understanding the dynamics of how leadership styles increase a leader’s ability to engage employees isn’t an option today; it’s an essential part of running a successful company”. Goleman identified six leadership styles. We begin with the first three:

  1. Visionary Leadership Style

Visionary leaders frame the collective task in terms of a grander vision
•Drives the emotional climate of an organization upward
•Provides direction but allows people the freedom to decide how it will get there
•Engages people by giving them the bigger picture, core values, vision, mission•Helps people see how their work fits into the grander scheme

  1. Coaching Leadership Style

Coaching leaders communicate a belief in people’s potentials and an expectation that they can do their best
•The least used and the most effective of all styles
•Helps people identify their unique strengths and realize their weaknesses
•Encourage the development of long-term goals and aspirations
•Good at delegating, giving employees stretch goals, not just tasks
•Will not be as effective working with people who are not motivated

3. Affiliative Leadership Style

Affiliative leaders build loyalty and performance by recognizing employees as people, putting less emphasis on accomplishing tasks and goals.
•Represents collaborative competence in action
•Promotes harmony and friendly interactions
•Focus on the emotional needs of an employee
•Should not be used alone as it tends to focus on praise, hard to address poor performance
•Most effective when used in conjunction with the Visionary Style

The next three will be presented in the next issue.

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