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Most of us are quick to call out the behaviours of leaders we don’t rate, but what are the distinctive qualities and attributes of a successful leader? And how can North West SME business leaders bring these to life to boost your team and organisation’s chances of future growth and success?
In this article we compare traditional definitions of leadership with the traits of a modern leader, bringing the characteristics to life through practical examples. We share the business benefits of good leadership and ask what happens when a leader fails to adapt.
Always know that the P3 People Management HR experts are here to answer your leadership development questions arising from this article. Let’s talk!
Traditional styles of leadership
Over the years, approaches to business leadership have been classified into the following seven styles:
Transformational: Leaders create a vision to inspire change and motivate their team to buy into it to achieve the organisation’s strategy.
Situational: Adapting your leadership approach based on the situation or challenge you and your team face.
Coaching: Pro-active, hands-on support for your team’s learning and growth where you encourage employees to seek out development opportunities.
Hands-off: A more relaxed style of leadership where you delegate tasks to your team and empower the leaders within your team to step up.
Transactional: A results-driven, performance-focused style of leadership aimed at getting the job done.
Bureaucratic: A hierarchical style where decision making follows a clear chain of command. Though often frowned upon, some work environments still benefit from this style of leadership, e.g. where safety or security is paramount.
Democratic: A supportive, listening style of leadership that fosters collaboration, innovation and creativity within a team.
Do you recognise any of your own leadership preferences in this list?
In reality, no leader fits perfectly in one of these boxes. Most good leaders adopt elements of these styles to develop their own personal style. Modern leaders recognise how and when to apply the styles to different situations and the needs of generations in the workplace. Managers and leaders who are able to adapt their approach in this way are the most effective and influential leaders.
The workplace benefits of competent leadership
Over the past five years, managers have had to find new ways to foster team spirit and maintain motivation in remote and hybrid teams. Adaptability and flexibility played a huge part in this process as leaders had to listen, show empathy and encourage collaboration from a distance. As a result, adaptability has emerged as one of the top five leadership trends of 2025 in a study by Korn Ferry. With the AI revolution continuing apace, managers will rely heavily on these skills in future years.
Teams that perceive their leader to be competent and effective are more likely to feel engaged at work. According to Gallup research, management and leadership performance accounts for a massive 70% of team engagement. This means it is vital to equip your leaders for success.
Effective leaders encourage their teams to exhibit similar qualities, enabling colleagues to cope with, and respond to, future change and building resilience in the face of adversity.
The benefits of good leadership are clear and abundant:
Improved communication, connection and relationships between colleagues, teams and leaders
Clarity around goals, expectations and how individuals contribute
Increased employee satisfaction, talent retention and attraction
Openness, honesty and transparency create resilience and understanding
When colleagues know leaders are truly listening to them it builds trust and respect
Colleagues have the freedom to express themselves and contribute ideas
Flexible leadership leads to improved collaboration, creativity and innovation
Increased focus, outputs, productivity and results
Wellbeing benefits of improved sleep quality, lower stress levels, and a feeling of being cared for and valued
Teams are more resilient, able to adapt and respond to complex, changing situations
Managers can motivate their teams more quickly during unexpected and challenging times.
3 pillars build trust in leadership
Think of a leader you respect and admire. Perhaps someone from the world of business, sport or politics comes to mind. What is it about that leader that makes them so memorable? Maybe you instantly think of their strong decision-making, ease of communication and empathy towards others. Or do you think of their impact and legacy? In truth, good leadership is a mixture of all these things and more.
The one true foundation of good leadership is trust. Without trust leaders cannot lead because people will not follow. The Institute of Leadership’s Trust Index reveals declining trust in line managers, especially in larger organisations. In 2023, the trust rating was 67%, down from 71% in 2018. So, what can organisations with 250+ employees do to improve trust in leadership?
Three elements combine to create a culture of trust:
Transparency: How much do you share with your team? A lack of trust is often the result of information not being shared with a team. When information is withheld, be it financial results, business performance details or salary bands, employees feel uncertain, uneasy or even sceptical. Trust develops when teams are aware of the full picture and feel valued.
Consistency: As a leader, it’s your responsibility to provide certainty and stability for your team. One of the ways you can do this is to show consistency, e.g. putting regular (immovable) team meetings in the diary to share business updates and ask for feedback.
Vulnerability: Leaders don’t have to be perfect or always have the answers. If you make a mistake or you’re struggling with a dilemma, don’t be afraid to be vulnerable. Show you are human and share it to build rapport and trust within your team.
The characteristics of a modern leader
While trust is arguably at the heart of good leadership, there are several characteristics that make a strong leader. Let’s take a look at the common traits of good leadership. How many do you recognise in yourself or in the leader you were thinking about earlier?
Strategic thinking
A good leader is able to interpret complex, high-level information, determine priorities, and develop plans and strategies to achieve them. Being a strategic thinker means you’re aware of the bigger picture and the role your team must play to achieve it. Where some people run away from challenges, strong leaders have strong analytical skills, focusing on how to resolve issues and coming up with creative solutions. When decisions have to be made, a strategic thinker acts swiftly and decisively.
Effective communication
90% of problems can be solved with clear communications and good leaders are skilled communicators. They communicate goals, expectations, and feedback clearly and concisely to their team. They can simplify and break strategy down into bite-sized chunks, to help people understand what it means to them. Listening to others is another valuable communication skill. They’re always open to feedback and listen their team’s concerns and challenges, responding and taking appropriate action.
Emotional intelligence
Good leaders understand their own emotions and how to manage and regulate them. They also recognise and influence the emotions of colleagues. Emotionally intelligent leaders have strong active listening skills. They take time to listen with the intention to learn and understand. They demonstrate care, empathy, understanding and compassion for others, which makes them more open and approachable when employees need to raise problems and issues.
Self-awareness and being able to handle your emotions, particularly when you might disagree with what’s being communicated, is a specific leadership trait. Strong emotional intelligence helps leaders to build positive working relationships and foster a thriving, inclusive work environment.
The ability to recognise your own feelings and manage them, especially when tackling difficult or emotive subjects, is an important people management skill. Developing emotional intelligence helps you see the whole picture and become a more intuitive leader.
Deliver results
Good leaders are results driven and focused on achieving goals and targets. Delivering results complements their strategic focus and ability to identify and implement strategies that drive performance and success. When things don’t go to plan and problems arise, a good leader acts decisively. They are courageous, unafraid to change their plans and follow a different path if things aren’t working out.
Self-awareness
Closely linked to emotional intelligence, good leaders understand themselves and how others see them. In tune with their own body, they recognise sensations and emotions linked to stress, tiredness and anxiety, acknowledging and dealing with them, rather than bringing them to work. Aware of their surroundings, they notice when the atmosphere turns, intuitively asking questions and listening to opinions to understand problems and find solutions before issues have chance to escalate.
Develop a positive and inclusive work culture
When people from all cultures, backgrounds, genders, identities and religions feel respected and encouraged to work together, everyone can thrive and achieve their goals. Good leaders understand the importance of inclusivity, equal opportunities and engagement in creating a healthy, diverse culture where employees are free to bring their whole self to work.
Focused on employee wellbeing
A positive workplace culture is a healthy workplace culture. Good leaders recognise the importance of personal wellbeing and prioritise it within their team. Focusing on physical and mental health and wellbeing makes for happier, healthier colleagues who are better equipped to perform and deliver for the business.
Adaptability
Good leaders allow circumstances to inform the way they manage their team, flexing and responding to changing needs to get the best from them. They listen, observe and adapt their leadership approach to help them overcome challenges and accomplish meaningful change. Examples include managing generational expectations, personal preferences, approaches to flexible working, managing organisational change and culture shift.
Adaptive leadership is known to drive collaboration, creativity and innovation. It creates an open, listening team culture in which it is safe to share new ideas, listen to different voices, challenge others’ opinions and have balanced discussions.
What happens when leaders fail to adapt their approach?
If you find it difficult to put a label on your style of leadership, it’s not uncommon. Some leaders have a defined approach they know suits their personality, strengths and ways of working. In reality, most good leaders exhibit all the above characteristics and perform more strongly in some areas, but know how to achieve a balanced approach.
Problems arise when leaders steadfastly refuse or fail to adapt their approach to leading their team. Consistency is important. Your team need to know what to expect from you each day, but failing to recognise individual needs or adapt your leadership approach to the situation can impact your team’s morale, motivation, productivity and engagement. A leader’s failure to listen to and observe their people can damage the whole organisation.
Good leadership creates a culture of respect
Good leaders know there is no one-size-fits-all style of leadership. They flex and evolve their style and approach, choosing the right tools to lead and manage the circumstances and people they are dealing with.
The most successful, impactful and memorable leaders possess self-awareness, emotional intelligence and know how to deliver results through effective communication of business strategy. The very best leaders do this with consideration for employee wellbeing and creating a positive, inclusive workplace culture.
Good leadership builds a workplace culture of trust and respect. When managers live the company values and demonstrate the behaviours they want to see, they influence and encourage others to follow. An open, trusting and respectful culture creates diversity of thought, increased ideas and improved creativity.
Do one thing…
Looking longer term, flexing your leadership style can boost employee retention and team engagement - keeping top talent within the organisation. If you do one thing after reading this article, take time to listen and get to know your team. Involve your employees in the conversation. Ask about their individual preferences and take time to understand their personal challenges before settling on the right leadership approach.
Leadership training for high-performing managers
To attract talented employees and create a successful, high-perfomance culture, Manchester, Altrincham and Cheshire businesses must equip current and future managers with the skills and knowledge they need to lead teams effectively.
Current and aspiring managers need to:
Have the tools and confidence to lead successful teams
Understand how to create a positive, supportive work environment
Be able to make a positive impact on their team and organisation
Be better equipped to deliver results in line with expectations.
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