Types of Leadership in Business - Which Are You?
When we talk about success in life or work, one thing always stands out—leadership. But here's the deal: there's no one-size-fits-all approach to being a great leader. That’s why understanding the types of leadership can help you figure out how to lead effectively or what kind of leader works best for you.
If you’re curious about the various types of leadership, buckle up. We'll break it down in simple terms, with real-life examples, so you don’t get bored halfway through (we know how it is!).
What Are the Different Types of Leadership?
You might think there’s just one way to lead a team, but there are actually many types of leadership styles, each with its own vibe. Some are strict, some are laid-back, and others are all about teamwork. Let’s dive into the top ten types of leadership you should know:
1. Transformational Leadership: The Motivator
Being a transformational leader allows me to help others unlock their potential
Ever had a boss who made you feel like you could conquer the world? That’s a transformational leader. They inspire people to go above and beyond. Think of them as the motivational speakers of the business world. They love to shake things up and push their team to reach new heights. In the types of leadership in business, this is one of the most energizing.
Bronwen Sciortino, CEO & Founder of sheIQ Life, belives the possibilities of this kind of leadership allow her to help more people:
"I love being a transformational leader because it allows me to help others unlock their potential in ways they never imagined. For me, it’s not just about guiding people but asking the right questions that spark a new way of thinking.
I get immense joy from watching others realize they can take a different path, see new opportunities, and grow into their best selves. When people thrive, the whole world benefits, and playing a part in that transformation is incredibly fulfilling."
2. Transactional Leadership: The Taskmaster
This leader is all about rewards and rules:
You do the job, you get a reward.
You don’t? Well, there’s a consequence for that.
It’s simple and straightforward, like an old-school teacher handing out gold stars for completed homework.
It works well in structured environments but can feel a bit rigid for more creative workplaces.
3. Servant Leadership: The Helper
I aim to be a Servant Leader because I genuinely want my team to learn, grow, and be truly fulfilled by their work
As a Servant Leader, the leader puts the team first. Their goal is to support, grow, and develop everyone they manage. They’re not about bossing people around—they’re about being the boss that helps you become better at your job. In terms of various types of leadership, this one is often seen in people who are genuinely passionate about mentoring others.
Hurley Fox, Founder of Fox & Partners, aims for a Servant Leadership style when running his business:
"I aim to be a Servant Leader because I genuinely want my team to learn, grow, and be truly fulfilled by their work.
Maybe it's my background in education that instilled this attitude in me, but I find a lot of satisfaction in seeing my team not only engaged, challenged, and succeeding but also actually happy to come to work each day."
Michelle Schafer, Owner and Career/Leadership Coach at Michelle Schafer Coaching, uses Servant Leadership with a twist:
"As a leadership coach, others often see me as a servant leader, being fully present and dialled into my client's struggles while helping them to find a new path forward.
The twist?
As much as I will focus on helping others, I will also ensure my own needs are met (like taking time each morning to exercise and meditate). Service to others first starts with service to self."
4. Autocratic Leadership: The Decider
This leader makes decisions without asking for input. They’re confident (or maybe a little controlling). While this style can get things done quickly, it can also make the team feel disconnected. If you need fast results and don’t have time for group discussions, this might be the way to go—but it’s not for everyone.
5. Democratic Leadership: The Collaborator
When you collaborate, not only do you get better thought-through ideas and solutions, but your team feels valued
In contrast to the autocratic style, democratic leaders love getting input from their team. Everyone has a say in decisions, and the leader listens to all voices. It’s like being part of a big team where your opinion truly matters. This style boosts morale and creativity, making it one of the types of leadership in business that works well for creative and innovative industries.
Paige Arnof-Fenn, Founder & CEO of marketing consultants Mavens & Moguls, believes this leadership style enables her to forge better relationships:
"I'm a Democratic Leader with a cohesive and inclusive culture to create an environment that fosters a sense of belonging which builds trusted relationships to drive the business."
In the world of trading, Lewis Crompton, CEO of STARTrading makes a point of focusing on being a Collaborator:
"I fully focus my leadership style on being a collaborator. When you collaborate, not only do you get better thought-through ideas and solutions, but your team feels valued, like they belong, and you give them a sense of ownership of their work and the business. This is vital for staff retention and wellness."
6. Laissez-faire Leadership: The Laid-back Leader
By giving my team the freedom to take ownership, we create an environment where everyone’s strengths come through naturally
The hands-off leader, or laissez-faire style, trusts the team to do their thing with little interference. This works best with teams that are self-motivated and skilled. But if the team lacks direction, this type of leadership can lead to chaos. It's popular in more creative fields, where the last thing you want is someone micromanaging your every move.
Eugene Katchalov, Entrepreneur and globally-recognized poker champion, thinks the Laissez-faire style sets him up for success:
"The laissez-faire leadership style allows me to lead with transparency and trust. I value honest relationships and believe in surrounding myself with talented people who don’t need constant direction.
By giving my team the freedom to take ownership, we create an environment where everyone’s strengths come through naturally, driving both personal growth and collective success."
7. Bureaucratic Leadership: The Rule Follower
This leadership style is all about sticking to the rules and maintaining strict procedures. Bureaucratic leaders prioritize consistency, order, and adherence to policies, making them perfect for highly regulated industries like healthcare, government, or finance. While this style ensures compliance and stability, it can also stifle creativity and slow down decision-making, which might frustrate more innovative teams.
Hakam Ghabra, Clinic Director at Harley Street Eye Centre, feels that a beaurocratic leadership style works best for him, his team, and his patients:
"I have found that the foundation of a structured and systemized approach has made performing most tasks second nature.
This has allowed the team more time to be present and creative in what matters the most, patient care that goes beyond treatment, transforming it into an experience."
8. Charismatic Leadership: The Charmer
Charismatic leaders have a natural ability to inspire and energize their teams through their personality and persuasive communication. Their charm and vision attract loyal followers, much like how some iconic figures in business or politics gather dedicated supporters. The downside? This style often hinges on the leader’s presence, so if they leave, the momentum might fade. While powerful, charismatic leadership can sometimes lead to over-reliance on the leader themselves rather than the team's collective strength.
9. Situational Leadership: The Chameleon
Compared to other styles, this one is more transparent
Flexibility is the hallmark of situational leadership. Leaders who use this style adapt their approach based on the needs of the team and the specifics of the task. For instance, they might take a more directive role with less experienced team members and then step back to allow autonomy for skilled professionals. This style is incredibly effective when managing diverse teams or in rapidly changing environments. The key is knowing when to shift gears and apply different leadership techniques.
Sasha Laghonh, Founder of Sasha Talks, thinks her Situational leadership style gives her more flexibility:
"Situational leadership best describes my role when working in partnership with commercial clients facing time-sensitive needs. This involves working with distinct personalities alongside flexible logistics.
When partnering with people of varying abilities, it's important to align and communicate expectations that are relatable to yield quality deliverables from all members. Compared to other styles, this one is more transparent due to the situational circumstance that brings them together to achieve a goal."
Similarly, Kate Davis, Executive Leadership Coach and Culture Change Specialist at Kate Davis & Associates feels her style is more chameleon-like and adaptive:
"I find myself naturally blending elements of several leadership styles, depending on the situation and the people I’m working with.
I’d like to think I was the Chameleon – being able to be the leader that people need when they need it, creating an environment where team members feel valued and energized, leading to high engagement and performance."
10. Pacesetting Leadership: The Perfectionist
Pacesetting leaders set high standards and expect everyone to keep up. They lead by example, showing their team what high performance looks like. While this approach can drive fast results and push teams to excel, it can also lead to stress and burnout if employees struggle to keep up with the pace or feel like they can't meet the leader's expectations. It's best used sparingly and in environments where the team is highly skilled and motivated.
Why Do These Leadership Types Matter?
You might be wondering, “Why should I care about the various types of leadership?” Simple: because whether you’re leading a project, managing a team, or just navigating life, understanding leadership styles helps you:
Find your own leadership approach
Know what to expect from a boss or leader
Improve team communication and results
For example, if you're the type who loves structure and rewards, transactional leadership might feel right at home. But if you're more of a dreamer and love motivating others, transformational leadership could be your natural fit.
Choosing the Right Leadership Style in Business
In the workplace, knowing the types of leadership in business can give you a huge advantage. Why? Because different teams and industries need different leadership styles. A tech startup might thrive with a democratic leader who listens to new ideas, while a fast-paced sales team might do better with a transactional leader who drives performance with incentives.
If you’re managing a team or thinking about stepping into a leadership role, ask yourself:
Do I need to be hands-on or hands-off?
Do I want to inspire or manage through systems?
Will my team respond better to motivation or structure?
Understanding the types of leadership not only helps you figure out your style but also allows you to adapt to different situations. And that’s the key to long-term success in both business and life.
Wrapping It Up
Whether you're climbing the corporate ladder, running your own show, or just trying to get through life, understanding the various types of leadership can give you a massive edge. Each type has its pros and cons, and the best leaders quickly learn and know how to switch gears depending on the situation.
So, next time you're in a meeting or working with a team, take a minute to think: What type of leadership am I seeing here? And what type of leader do I want to be?
