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Last Updated on September 6, 2018

5 Types of Leadership that Help You Build a High Performance Team

5 Types of Leadership that Help You Build a High Performance Team

It takes great leadership skills to build great teams.

The best leaders have distinctive leadership styles and are not afraid to make the difficult decisions. They course-correct when mistakes happen, manage the egos of team members and set performance standards that are constantly being met and improved upon.

Whether you want to build a high performance team in the workplace, local community or competitive sports, you need to understand the strengths and weaknesses of the people in your team and what gets them going.

Beyond that, you need to understand the different types of leadership that there is to build effective teams.

Leaders like Mahatma Gandhi, Steve Jobs, Martin Luther King and Winston Churchill represent some of the different leadership styles that are worth their weight in gold.

While it may seem like there are as many leadership styles as there are leaders, psychologists and business experts have identified the main types of leadership styles that are most effective.

Here are five of the top leadership styles you can use to build an awesome team, depending on the situation that you’re in.

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1. Transformational Leadership

Transformational leadership is a style of leadership that focuses on transforming individuals. This style is about taking people through a journey of initiatives that lead to positive changes in the way they do things.

You identify a needed change that adds new value, create a vision to guide individuals to meet the change and inspire and motivate them to carry out the change and be the best they can be as themselves, as well as a team.

This leadership style is one of the best to use in business situations. It encourages engagement from everyone in a team and leads to high productivity.

The downside of the style is that the aspect of transformational change sometimes results in work being done, but not quite reliably.

When work is not done reliably, other leadership styles should be incorporated to address the shortcoming and ensure routine work is done reliably.

2. Democratic Leadership

Democratic leadership, also known as participative leadership, is a style of leadership that is very open and collegial in the way it builds and manages a group of people.

Members of the group take a more proactive and participative role in the decision making process, but the final decision is made by the democratic leader.

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Everyone is given a seat at the table and ideas are shared and discussed freely among team members. Creativity is encouraged and valued, as is engagement in projects.

The benefits of this leadership style is that team members feel more in control of their destiny and, therefore, tend to be more motivated to work hard.

Team members also enjoy greater levels of job satisfaction because they are involved in decision-making processes throughout.

The style is usually a good fit when you want to build skilled teams, especially in the service industry where new ideas allow for more flexibility to ever changing customer demands.

The downside of democratic leadership is that participation takes time. It can slow decision-making and be a hindrance in situations where speed or efficiency is essential.

3. Servant Leadership

Servant leadership, a term coined by Robert Greenleaf in the 1970s, describes a style where a leader’s primary role is to serve a group of people, such as employees.

The leader leads by example with generosity. He or she has high integrity and is focused on meeting the needs of the team.

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Unlike most other leaders, the “servant leader” prefers to stay out of the limelight and lets the team take all the credit for their hard work.

Servant leadership helps create a positive corporate culture and can lead to high moral among team members. It is often the best approach to leadership in situations where leaders are elected to serve a committee, organization or community, such as in politics.

The downside to servant leadership is that it demands high levels of integrity and takes time to apply correctly. You can easily find yourself falling behind other leaders who use other leadership styles.

4. People-Oriented Leadership

People-oriented leadership is a style that takes into account people’s strengths and talents. Leaders using this style place people in positions that take advantage of their talents and positive characteristics.

The leader is focused on organizing, supporting and developing individual team members, as well as improving the welfare of the whole team.

People-oriented leaders treat members of their team equally, are friendly and approachable and readily available to anyone who needs help or advice.

This participatory leadership style builds popular, fun teams that everyone wants to be part of. Team members are often more productive and willing to take risks because they know the leader will provide support if they need it.

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The downside to this style of leadership is that it can be too focused on individuals that important tasks or project directives are overlooked and suffer.

5. Task-Oriented Leadership

Task-oriented leadership is the opposite of people oriented leadership. Task-oriented leaders focus only on getting the job done.

They define the work that needs to be done, plan and organize how the work will be done, create and assign roles to do the work, put structures in place to manage performance and monitor the progress and standard of work.

The benefit of this leadership approach is that it builds a team that delivers results within set deadline. The style is especially useful for team members who are unable to manage their time well, either due to personal or work distractions or their own limited capacity to work without direct supervision.

The downside to the approach is that leaders tend to be autocratic and not concerned about their team’s well-being. The team can suffer problems like low motivation and employee retention.

So, which leadership style or combination of styles work best for you?

Take a look at this guide and find out which actually works best for you to become a charismatic leader:

How to Be an Effective Leader (A Step-By-Step Guide to Upgrade Your Leadership Skills)

Featured photo credit: Unsplash via unsplash.com

More by this author

David K. William

David is a publisher and entrepreneur who tries to help professionals grow their business and careers, and gives advice for entrepreneurs.

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Published on March 20, 2019

How to Write a Powerful Mission Statement for Your Business

How to Write a Powerful Mission Statement for Your Business

Have you ever felt lost in the minutia of your job?

As a business owner, I can relate to getting bogged down in the day to day operations of my business. Things like inventory, payroll, scheduling, purchasing and employee management take up the bulk of my day.

While these things are important and need to get done, focusing too much on the details can make you lose sight of the big picture. This is why having a good mission statement comes in handy.

What is a Mission Statement?

Put simply, a mission statement is an internal document that provides a clear purpose for the organization. It provides a common reference point for everyone in the organization to start from.

In other words, after reading your company’s mission statement, managers and employees should be able to answer the question “What are company’s main objectives?” For example, Southwest Airlines mission statement reads:[1]

“Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit. We are committed to provide our Employees a stable work environment with equal opportunity for learning and personal growth.”

In this single statement, Southwest conveys the company’s goals of providing the highest level of customer service as well as providing a good working environment for their employees.

Mission Statement VS. Vision Statement

While the mission and vision statements are related, there are subtle but distinct differences the you should be aware of.

First of all, a mission statement is designed primarily as an internal company document. It provides clarity and direction for managers and employees.

While there’s nothing wrong with sharing your company’s mission statement with the outside world, its intended audience is within the company.

While a mission statement provides a general framework for the organization, the vision statement is usually a more inspirational statement designed to motivate employees and inspire customers. Going back to Southwest Airlines, their vision statement reads:[2]

“To become the world’s most loved, most flown, and most profitable airline.”

This statement inspires good feeling from the customer while motivating the employees to achieve that vision.

What Does a Good Mission Statement Look Like?

When coming up with a mission statement, it’s important to take your time and do it right. Too often, people (especially entrepreneurs) just write down the first thing that comes to mind and they end up with worthless or (worse yet) a generic mission statement that is utterly useless.

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Remember, a mission statement should provide a common framework for everyone in your organization.

When writing a mission statement, you should always try to incorporate the following;

  • What we do?
  • How we do it?
  • Whom do we do it for?
  • What value are we bringing?

Now, you can see how tempting it is to just come up with something generic that ticks off those four boxes. Something like “We provide the best widgets available online for the consumer.”

After all, that did check off all the boxes:

What we do? Provide widgets.

How we do it? Online.

Who do we do it for? The consumer.

What value we bring? The best widgets.

The problem with this mission statement is that it could apply to any number of companies producing the same widget. There is nothing to distinguish your company or its widgets from any of your competitors widgets.

Compare that mission statement to this one:

“We provide the highest quality widgets directly to the consumer at an affordable price backed up with a 100% satisfaction guarantee. If our clients aren’t 100% satisfied, we’ll make it right.”

What’s the difference?

Both mission statements answer all the same questions of what, how, whom and value. But in the second statement, they are differentiating their company from all other competitors by answering the question “what makes us unique”.

Another way to read that is, “Why you should buy from us.” In this example, it’s because our widgets are of the highest quality and we stand behind them 100%.

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You might have noticed the statement didn’t say that we sell widgets at the lowest possible price. That’s because we are emphasizing quality and satisfaction over price.

A different company’s mission statement may emphasize selling widgets at the lowest possible price with little to no mention of a guarantee.

Hallmarks of a Good Mission Statement

1. Keep It Brief

Your mission statement should be no longer than three sentences. This is not your company’s magnum opus.

You should be able to distill the what, how, who and why questions into a succinct message.

2. Have a Purpose

A company’s missions statement should include the reason it even exists.

Make clear exactly what the company does with statements like “We strive to provide our customers with …….”

3. Include a “How”

Take this as an opportunity to differentiate your company from its competitors.

How do you provide a product or service that’s different or better than how your competitor provides it?

4. Talk About the Value You Bring to the Table

This is where you can really set yourself apart from the competition. This is the “why” customers should buy from you.

Do you offer the lowest prices? Fastest delivery? Exceptional customer service? Whatever it is that sets you apart and gives your particular products, services or company an advantage talk about it in the mission statement.

5. Make Sure It’s Plausible

It’s okay to shoot for the stars just to settle for the moon, but not in a mission statement.

Being overly ambitious will only set you and your employees up for failure, hurt morale and make you lose credibility. You will also scare away potential investors if they think that you are not being realistic in your mission statement.

6. Make It Unique and Distinctive

Imagine if someone who knew nothing about your business walked in and saw how it was operating, then they read your mission statement. Would they be able to recognize that mission statement was attached to that business? If not re-work it.

7. Think Long Term

A mission statement should be narrow enough so that it provides a common framework for the existing business, but open enough to allow for longer term goals. It should be able to grow as the business grows.

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8. Get Feedback

This is very important, especially from managers and employees.

Getting their input can clarify how they currently see the company and their role within the organization. It’s also a good way to get people “on-board,” as studies show that people are more likely to go along with an idea if they feel included in the decision making process beforehand.

9. Review Often and Revise as Necessary

You should review the missions statement often for two reasons.

First, as a reminder of what the essence of the company is. It’s easy to forget when you are in the day to day grind of the business.

And two, to make sure that the mission statement is still relevant. Things change, and not everything can be anticipated at the time a mission statement was written.

For example, if a mission statement was written before the advent of the internet, a company that use to sell things door to door now probably has a website that people order from. You should always update the mission statement to reflect these changes.

The Value of Mission Statements: Why Go Through All of These in the First Place?

It may seem like a lot of work just for a few sentences that describe a company, but the value of a well written mission statement should not be discounted.

First of all, if you are an entrepreneur, crystallizing the what, how, whom and value questions will keep you focused on the core business and its values.

If you are a manager or other employee, knowing the company’s basic tenants will help inform your interactions with both customers and colleagues alike.

Strategic Planning

A relevant mission statement acts as a framework for strategic planning. It provides guidance and parameters for making strategic decisions for the future of the company.

Measuring Performance

By having the company’s mission in a concrete form, it also allows for an objective measurement of how well the organization is meeting its stated goals at any one time.

Management can identify strengths and weaknesses in the organization based on the criteria set forth in the mission statement and make decisions accordingly.

Solidifying the Company’s Goals and Values for Employees

Part of a well run organization is nurturing happy and productive employees.

As humans, we all have an innate need for both purpose and to be part of something larger than ourselves. Providing employees with a clearly defined mission statement helps to define their role in the larger organization. Thus, fulfilling both of these needs.

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Now I’m not saying that a mission statement can overcome low pay and poor working conditions, but with everything else being equal, it can contribute to a happier and more productive workforce.

To Hold Management Accountable

By creating a mission statement, a company is publicly stating its highest values and goals for the world to see. By doing so, you are inviting both the public and your employees to to scrutinize how well the company lives up to its ideals.

So if you state that you only provide the highest quality products, and then offer something less, it’s fair for both the public and the employees to question, and even call for a change in management.

If management doesn’t take the mission statement seriously, no one else will either; and the legitimate authority that management rely’s on will be diminished.

To Serve as an Example

This is the opposite side of the coin from the previous statement. If the highest levels of management are seen taking the mission statement seriously and actively managing within the framework of the statement, that attitude filters down throughout the organization.

After all, a good employee knows what’s important to their boss and will take the steps necessary to curry favor with them.

Finally, use the company’s mission statement as a way to define roles within the company. You can do this by giving each division in the company a copy of the mission statement and challenge the head of each division to create a mission statement for their respective departments.

Their individual mission statements should focus on how each department fits in and ultimately contributes to the success of the company’s overall mission statement. This serves as both a clarifying and a team building exercise for all parts of the organization.

Final Thoughts

Developing a mission statement is too often just an after-thought, especially for entrepreneurs. We tend to prioritize things that we perceive will give us the biggest “bang for our buck.”

Somehow, taking the time and effort to sit down and think seriously about the what, whom, how and value of our business seems like a waste of time. After all, we got in the business to make money and become successful, isn’t that all we need to know?

That mindset will probably get you started okay, but if you find yourself having any success at all, you’ll find that there really is such a thing as growing pains.

By putting in the time and effort to create a mission statement, you are laying the groundwork that will give you a path to follow in your growth. And isn’t building long term success what we are really after?

More Resources About Achieving Business Success

Featured photo credit: Fab Lentz via unsplash.com

Reference

[1] Southwest Airlines: About Page
[2] Fit Small Business: 10 Vision Statement Examples To Spark Your Imagination

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