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5 Steps to Understanding Your Leadership Style

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Most people in charge don't actually know how they lead. They just do it. Most leaders think they're doing just fine—until the results prove otherwise.

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According to one recent analysis, bad managers in U.S. companies cost businesses up to US $360 billion per year due to turnover, lost productivity and lower engagement.

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The truth is, many people in charge have no clear understanding of how they actually lead. They operate on instinct, not insight. And that comes with a price. By contrast, poor leadership often leads to high turnover. Turnover is costly: replacing employees (hiring, training, loss of institutional knowledge) is a major drain on resources.

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But here's the thing: if you don't understand your leadership style, you can't improve it. You can't adapt when things change. And you definitely can't connect with your team the way you need to.

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Leadership isn't some mysterious gift you're born with. It's a skill you can learn and shape. First, you need to figure out what kind of leader you actually are.

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What Leadership Actually Means

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Leadership is about influence, not authority.

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You don't need a fancy title to be a leader. Leadership happens when people follow you because they want to, not because they have to. It's about guiding others toward a goal and helping them grow along the way.

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A boss tells people what to do. A leader shows them why it matters.

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According to research from Harvard's Professional Development programs, effective leaders create environments where people feel motivated and valued. They don't just manage tasks—they develop people.

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That's a big difference.

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There are nearly as many types of leadership styles as there are individual leaders. Leadership styles refer to the way in which managers, executives, and other professional leaders choose to conduct business.

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The Main Leadership Styles You Should Know

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There's no single "right" way to lead. Different situations call for different approaches.

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Here are the core styles most leaders fall into:

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• Autocratic: You make decisions alone. Fast and clear, but doesn't invite input.
• Democratic: You ask for team opinions before deciding. People feel heard, but it takes more time.
• Pacesetter: You inspire change and push people to grow leading by example. Great for innovation, but can burn people out.
• Coaching: You reward results and invite feedback. Clear structure, and enjoy establishing mentoring relationships.
• Servant: You put your team's needs first. Builds loyalty, but you might neglect your own priorities.
• Laissez-faire: Laissez-faire translates to “let it happen”. You give total freedom. Works with skilled teams, but can create chaos with inexperienced ones.

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Most leaders mix a few of these depending on the situation. The key is knowing which one you lean toward naturally.

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And today's work environment makes this even more important. With remote teams and AI tools changing how we work, leaders need to communicate differently than they did even a few years ago. Your leadership style needs to work across screens, time zones, and digital platforms.

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Step 1: Look at How You Make Decisions

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Pay attention to what you do when a problem comes up.

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Do you decide quickly on your own? Do you ask your team first? Do you avoid deciding at all?

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Your decision-making pattern reveals a lot about your leadership style.

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If you always gather input before choosing, you're probably democratic. If you make the call and explain it later, you lean autocratic. If you let your team figure it out themselves, you're closer to laissez-faire.

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None of these are wrong. But you need to know which one you default to.

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Try this: think about the last three big decisions you made at work. Who was involved? How long did it take? How did you feel about the process?

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Write it down. Look for patterns.

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Step 2: Ask Your Team for Honest Feedback

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This is uncomfortable. Do it anyway.

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You can't see yourself clearly. Your team can.

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Ask three to five people you work with closely: "How would you describe my leadership style?" Let them be honest. Don't defend yourself or explain. Just listen.

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You might hear things you don't like. That's the point.

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Studies on leadership development show that self-awareness is the foundation of growth. Leaders who actively seek feedback improve faster than those who don't. If multiple people say similar things, pay attention. That's your actual style, not the one you think you have.

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A recent study with project professionals from different fields found that leadership style directly affects project efficiency — clear communication, constructive feedback, role definition, and encouragement of team initiative were strongly correlated with better outcomes; poor or absent leadership styles tended to compromise efficiency, motivation, and collaboration.

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Some specific questions to ask:

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• Do I give you enough freedom to work?
• Do you feel like I listen when you have ideas?
• Am I clear about what I expect?
• What's one thing I could do differently?

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Their answers will show you where you stand.

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Step 3: Test Your Style in Different Situations

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Your leadership style shouldn't be the same in every situation.

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A crisis needs fast decisions. A creative project needs space. A new team member needs more guidance than someone experienced. 

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How you communicate shapes everything. Storytelling is one of the most powerful tools leaders have for connecting with their teams and making messages stick.

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Good leaders adapt. Spend the next few weeks trying different approaches on purpose. If you usually decide alone, ask for input. If you always seek consensus, make a quick call yourself. See what happens.

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Does your team respond better? Worse? Do you feel more effective or less?

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According to insights from Medium's leadership experts, flexibility is what separates good leaders from great ones. The best leaders can shift their approach based on what the moment needs. Track your experiments. Write down what worked and what didn't. You'll start to see which situations match your natural strengths and where you need to stretch.

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Step 4: Identify Your Leadership Qualities

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Your style comes from your strengths and values.

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What do you actually care about? What are you good at?

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Some leaders are great at strategy but struggle with emotions. Others connect deeply with people but avoid hard conversations. Some see opportunities everywhere. Others keep things stable and organized.

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Make a list of your top five strengths. Then list your top five values.

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Your leadership style should align with both.

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If you value honesty and you're good at communication, you might naturally lead through transparency. If you value results and you're good at planning, you probably lean toward transactional leadership.

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When your style matches who you are, it feels natural. When it doesn't, you'll burn out trying to be someone you're not.

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Key qualities to consider:

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• Authentic Communication: Do you explain things clearly? 
• Empathy: Do you understand what others feel?
• Decisiveness: Can you make tough calls?
• Vision: Do you see where things should go?
• Accountability: Do you own your mistakes?

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Be honest about where you're strong and where you're not.

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Step 5: Keep Learning and Adjusting

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Understanding your leadership style isn't a one-time thing.

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You'll change as you grow. Your team will change. The work will change.

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Your leadership needs to evolve with it.

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Set aside time every few months to check in with yourself. Review the feedback you've gotten. Look at what's working and what isn't.

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Read about leadership. Watch how other leaders handle situations. There are thousands of resources out there—books, podcasts, YouTube channels dedicated to leadership development.

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YouTube is actually one of the best places to learn. You can watch real leaders in action, see how they communicate, and learn from their mistakes. Channels like TEDx Talks offer practical insights you can use right away.

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The point isn't to copy someone else. It's to expand your toolbox so you can lead in more ways.

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Great leaders never stop learning.

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The Difference Between Leading and Just Being in Charge

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Here's what most people get wrong: they think leadership is about being in control. It's not.

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Leadership is about serving a purpose bigger than yourself. It's about making your team better. It's about creating something that lasts beyond your own involvement.

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A boss manages work. A leader develops people.

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A boss tells you what to do. A leader shows you why it matters.

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A boss uses authority. A leader earns trust.

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You can be in charge without being a leader. And you can lead without any formal authority at all.

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The question is: which one are you?

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Final Thoughts

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The world moves fast. Teams are more diverse. Work is more complex.

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Old-school "command and control" leadership doesn't work anymore. People want leaders who listen, who adapt, who care about more than just the bottom line.

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Understanding your leadership style isn't about putting yourself in a box. It's about knowing your starting point so you can grow from there.

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You can't improve what you don't understand.

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Start with these five steps. Be honest with yourself. Ask hard questions. Pay attention to what actually happens, not what you wish would happen.

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Your team is watching. They're waiting to see what kind of leader you'll become.

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