In the world of Organisational Psychology, the question of whether there is a ‘right’ way to lead is a topic of much debate. It is widely accepted that leaders are a crucial component of any business, as they motivate their teams to increase productivity and ultimately achieve business growth and success. Over the years, various types of leadership styles have been identified, ranging from autocratic to laissez-faire. However, two leadership styles that stand out are Transactional and Transformational leadership.
Transactional leaders believe that the promise of rewards or the threat of punishment will drive employees to reach their maximum potential. Conversely, Transformational leaders see themselves as social engineers who aim to bring about improvements to individuals and team and workplace systems. While both styles have their advantages and disadvantages, research indicates that a good mix of both can be beneficial for business growth.
In recent years, a new style of leadership has emerged – Enterprise Leadership. This leadership style has grown out of the fast-paced, technology-led society we now live in. Enterprise Leaders have been able to shift their mindset, activities and behaviours from past leadership styles to create a new way of leading that incorporates expertise across the entire business. These leaders draw value from each business unit and allow the integration of collective knowledge across teams to leverage the most talented skills of others.
Enterprise Leaders are more innovative, engaged and adaptable than their predecessors. Studies have demonstrated support for Enterprise Leaders, with a recent study finding that 80% of leaders now have increasingly more diverse responsibilities than ever before. This has led to 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 Enterprise Leaders who operate across the whole business can improve not only their own business unit, but also the surrounding business units, resulting in an increase in revenue of around 12%.
While there is still much to learn about Enterprise Leadership and Enterprise Leaders, it is clear that this new style of leadership is gaining traction in the business world. However, more studies need to be done to discover the effects of Enterprise leadership on different sized businesses and the effectiveness of this style of leadership in various contexts.
One of the main benefits of Enterprise Leadership is its ability to foster collaboration and create a shared vision across the entire business. This can lead to greater innovation, increased efficiency and a more engaged workforce. Enterprise Leaders are also adept at managing change and are more likely to take calculated risks to achieve business growth.
To become an effective Enterprise Leader, it is essential to have a deep understanding of the business as a whole and to be able to identify areas where improvements can be made. Leaders must also be skilled at communication and able to build strong relationships with team members and stakeholders across the business. They must be willing to take calculated risks, be adaptable to change, and be able to leverage the strengths of others to achieve business goals.
In conclusion, while there is no ‘right’ way to lead, Enterprise Leadership is a new style of leadership that is gaining popularity in today’s fast-paced business world. Enterprise Leaders draw value from each business unit and are able to create a shared vision across the entire organisation. They are innovative, adaptable and skilled at managing change, which can result in increased revenue and business growth. To become an effective Enterprise Leader, it is essential to have a deep understanding of the business as a whole and to be able to identify areas for improvement, while also being skilled at communication and relationship building.