We all know that in recent years, the business landscape has been profoundly transformed by the addition of new digital technologies. From the influence of automation and artificial intelligence in our processes and procedures, to the devices and apps that make remote work easier than ever before, digital technology has helped to reshape the working world as we know it.
This transformative time for business is often referred to as the digital era, which is essentially characterised by technology and digital tools and the way they shape how businesses operate, interact with customers, and drive innovation.
This transformation can touch virtually every aspect of a business, from business models and employee engagement, to customer experiences and market trends. And for leaders, this shift has meant a re-evaluation of traditional leadership paradigms, and an adaptation of leadership styles, in order to remain effective and relevant in such a rapidly evolving environment.
Leadership styles: an explainer
Leadership styles are the various approaches that leaders use to guide, motivate, and manage their team members.
Each style has unique characteristics, and can impact the work environment and employee performance in different ways.
Common leadership styles include:
- Autocratic leadership. This style is characterised by individual control over all decisions, with little input from team members. It is often considered directive and controlling, and can also be referred to as authoritarian leadership.
- Democratic leadership. In contrast to autocratic leadership, democratic leaders promote the sharing of ideas and discussions, fostering a culture of innovation and decisions that are made more collaboratively.
- Transformational leadership. Transformational leaders actively inspire people to work cohesively and collectively together towards a common vision, which often leads their teams to achievements beyond the usual limits.
- Transactional leadership. This style is based on routine and performance, where leaders promote compliance by rewarding successful outcomes and disciplining poor performance.
- Laissez-faire leadership. This is a more hands-off approach to leadership, where the responsibility is given to the team members and there’s minimal management interference.
- Servant leadership. Servant leaders prioritise the needs of their teams. Their focus is on supporting their people first and foremost, rather than prioritising their own goals or their organisation’s goals.
- Adaptive leadership. Adaptive leaders are noted for responding quickly to changes. These leaders are especially effective in times of uncertainty because they’re focused on flexibility and problem-solving, and will use data to adjust course as needed.
- Situational leadership. Situational leaders will adjust their leadership style based on the situation they’re in, which means they’ll move between directive and supportive behaviours according to the needs of their team members or their circumstances.
Why leadership styles need to adapt in the digital era
With digital transformation reshaping the business environment as we know it, it’s only fitting that business leaders adapt as well.
Traditional leadership methods, especially those that restrict people’s autonomy, may not always suit today’s digital challenges and opportunities. Instead, the need for quick decision-making, enthusiasm for technological advancements, and confidence in managing remote teams means that leaders need a more adaptive, agile, and digitally literate leadership approach.
The leadership styles most suited to the digital era
Across the digital landscape, we’re seeing that certain leadership styles have become more relevant or more effective.
For example, transformational leadership – which emphasises innovation – is a powerful tool for driving digital initiatives, while adaptive leadership is useful for managing the fast pace – and uncertainties – that come with new digital tools and new technologies. Meanwhile, democratic leadership is valuable because it can help promote a culture of continuous learning as well as diverse perspectives, and these are strong allies for digital transformation.
The most valuable characteristics and traits of digital leaders
There’s no one-size-fits-all idea of a digital leader, but the majority of them will have a strong foundation in:
- Digital literacy. Understanding digital tools and data analytics – and knowing how to leverage them to enhance business processes and performance – is essential in digital leaders.
- Emotional intelligence. A good degree of EQ, or emotional intelligence, is particularly useful for effectively managing and motivating team members in remote work environments.
- Agility and adaptability. Digital leaders can pivot quickly in response to technology shifts and trends.
- Data-driven decision making. The best digital leaders know how to harness all of the data that comes with digital tools – and most importantly, use insights from this data to inform leadership strategies, projects, and other improvements.
- Effective communication. It goes without saying, but effective leadership – in the digital world and outside of it – will always require good communication. In the digital era, effective communication can bring clarity and ensure engagement across digital platforms, and can help teams stay connected regardless of location.
How digital transformation is changing leadership
Business leaders need to know that digital transformation isn’t just a case of purchasing new software or digital devices – it’s about changing how organisations operate, often at every level within the business.
Because of this, digital transformation needs leaders who can develop a digital-first mindset, one where teams and stakeholders are engaged digitally as standard, and leaders know what tools they need to effectively develop their teams – and themselves.
How leaders can effectively manage remote teams
Managing a team remotely brings a number of benefits but it also has some unique challenges, and these require some specific leadership skills and tools:
- Empowerment. Digital leaders need to trust and empower their remote team members by providing them with the tools and the autonomy to succeed. It sounds easy, but for many leaders – especially those who favour more traditional leadership styles – it can be challenging to give up control.
- Regular catch-ups and conversations. Implementing regular check-ins and making good use of digital communication tools will help create a sense of presence and cohesion even when teams are scattered around the world.
- Performance management. Adapting digital project management and performance tracking tools can help keep team members aligned and accountable for their work.
How leaders can develop their skills while working remotely
Digital leaders will be the first to tell you that keeping up-to-date on the latest thoughts, trends, and tools in technology is imperative. Fortunately, leadership development is made all the easier in the digital age.
Leaders can build a professional network and expand their connections through social media platforms like LinkedIn to gain valuable insights and foster relationships with other leaders. There are also an ever-expanding number of online courses, webinars, and other digital resources available on the topics of digital leadership styles and management practices.
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