One question which is always hotly debated in Organisational Psychology is whether there is a ‘right’ way to lead. Leaders are vital to any business as they play a pivotal role of motivating their team to increase their productivity, which in turn results in business growth and success.
Past research has described many different types of leaderships, from autocratic to laissez-faire, but two Leadership styles which are most distinct are Transactional and Transformational leadership. Transactional leaders tend to believe that the promise of reward or threatening of punishment will drive employees to reach their maximum potential. On the other hand Transformational Leaders see themselves as social engineers and seek to make improvements to individuals and within team and workplace systems. Both have advantages and disadvantages depending on the context and intensity, and research agrees that a good mix of both styles can be beneficial to business growth.
There is however a new emerging leadership, a new kid on the block: Enterprise Leaders.
Enterprise Leadership has been seen as a new way of leading in the past few years and has grown out from the hugely dynamic, technology-led and fast paced society we now live in. Enterprise Leaders will have been able to shift their mindset, activities and behaviours from past leadership styles to create a way of leading which incorporates expertise across the entire business. These leaders draw value from each business unit and allow integration of collective knowledge across teams to leverage the most talented skills of others.
Enterprise Leaders will be more innovative, more engaged and more adaptable than their former leaders.
Studies have demonstrated support for Enterprise Leaders. A recent study has found that 80% of leaders now have increasingly more diverse responsibilities than ever before. This is reflected in the need for leaders to adopt an enterprise approach whereby they prioritise cross-functional coordination and ensure team strategies are connected and resources aligned. Some have said that those Enterprise Leaders who operate across the whole business, are not only able to improve their own business unit but their surrounding business units too and revenue as a business has seen to increase around 12%.
There is still much to learn about Enterprise Leadership and Enterprise Leaders and many more studies should be done within various size business to discover the effect the business side could have on whether Enterprise leadership is more or less effective.