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The Effect Of Leadership Style On Employee Performance And Why Adaptive Leaders Get Results

Jul 03, 2025
My Daily Leadership Blog Image Showing The Shadows of Different People to Represent the Different Types of Leadership Style and How This Impacts Employee Performance

  Many leaders underestimate the profound effect of leadership style on employee performance, much to their and their company’s detriment.

And no, by leadership style, we aren’t talking about the results of a personality quiz or whether you wear sneakers or brogues in the office. We’re talking about how you lead when it matters, from decision-making to guiding your team, and responding under pressure.

This article will examine the effect of leadership styles on employee performance in detail, exploring the practice of adaptive leadership, applying it to your work, and how you can use this style to get more from your team.

Now, get your goggles because we’re diving in at the deep end.

Sticking With One Leadership Style Will Hold You Back

Imagine you’ve got two teams under your command. Both are talented and working towards the same goal. Sounds like the dream, right?

Well, not quite.

The first team, let’s call it Team A, is led by a micromanager who dismisses other people’s input without giving it a second thought. They strive to achieve outcomes but use pressure and fear as mechanisms to get there.

Team B is led by someone who creates space for feedback and encourages alignment around a shared vision. They also adapt their support based on each team member’s strengths and weaknesses.

Both teams have the same resources and capabilities, but the outcomes are very, very different. Why? Because the effects of leadership style ripple through every conversation, deadline, and decision, with one approach supporting performance while the other suppresses it.

It might seem obvious, but in our experience (and in countless amounts of research), leaders who empower their teams see stronger problem solving, better staff retention, and improved well-being. On the flipside, leaders who cling to control are the polar opposite, and their team is a deadly combination of stress, stagnation, and burnout.

The bottom line? If you want to improve performance across the board, start by improving your leadership style and becoming more adaptive.

The Practice of Adaptive Leadership in Action

We’ve covered different leadership styles in the past, from transformative leadership and transformational leadership to  , and more. However, the most effective style of leadership isn’t a single style. It’s the ability to adapt, which is where adaptive leadership comes into the equation.

What is adaptive leadership, we hear you ask? Good question.

Adaptive leadership is the practice of moving between leadership styles based on context, timing, and the needs and abilities of your team. It’s not reactive, it’s intentional, which is something we advocate a lot at MDL.

An example could be being direct in one conversation and curious in another, or exuding quiet confidence in a tense situation vs giving your team space to figure things out. There are plenty of instances to choose from, and while it takes some effort to master, adaptive leadership can boost performance, engagement, and growth within your business.

We know, this all sounds great, but how do you start applying adaptive leadership in the real world?

Applying Adaptive Leadership as a Leader

Let’s look at three moments that every leader will likely experience and demonstrate where applying adaptive leadership can make a real difference.

1.      During change or uncertainty

A rigid leadership style creates resistance in the ranks, but an adaptive leadership style slows things down, explains the “why”, and invites other people into figuring out a solution.

The result is more buy-in from your employees rather than compliance, and a cohesive team working towards the same goals.

2.      When performance dips

Adaptive leaders look beneath the surface of performance issues at work, while rigid leaders default to pressure or punishment.

In practice, this means asking yourself questions like, is there a skill gap at play, or a motivation issue, or is there a mismatch of values? Then, it’s about adjusting your support based on what you uncover.

3.      In high-stakes projects

When stakes are high, no single playbook works for every scenario.

Being adaptive can mean getting your navigator hat on and creating a shared vision, involving the right voices to create a consensus, or mentoring the team to meet the moment head-on.

Or all of the above.

A Simple Tool to Unlock Adaptive Leadership

Leadership journaling is a fantastic and effective way to reflect intentionally about the effects of your leadership style. You might be surprised by what you find and uncover many ways to improve and get more out of your people.

Insights you might glean from leadership journaling include:

  • What’s your default leadership style under pressure?
  • When have you adapted well and when haven’t you?
  • What impact do you think that had on your team’s performance?
  • What conversations or situations are coming up this week, and which style might serve best?

Take ten minutes out of your week to write these kinds of thoughts down, and don’t be scared of getting specific. Doing so is a great way to prepare yourself to lead with more purpose and develop as a person and as a leader.

And if you’re struggling for inspiration with your journaling, check out our complimentary download of leadership prompts to get started.

Final Thoughts: The Effect Of Leadership Style is Too Important to Ignore

The effects of leadership styles are often ignored by those at the top or treated as something innate, unchangeable, or irrelevant to business outcomes. This couldn’t be further from the truth, and applying adaptive leadership helps you get better results and create an environment where other people do their best work.

It also enables you to shift the emphasis from pressure and control to purpose, and from performance management to performance enablement.

Ready to Discover Your Leadership Style?

If you’re wondering which leadership styles show up most in your day-to-day, our leadership assessment could be the answer. Giving you clear, data-driven insights into your dominant and underused leadership styles, you’ll also discover where you may need to adapt to unlock performance in your team. 

 

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