Over the past few weeks, Skystar Capital has explored various leadership styles based on Goleman’s (2000) concepts that can be applied in startups. In this final article of the three-part series, we delve into democratic and coaching leadership styles to build teams that are not only solid but also innovative and productive.
Through democratic and coaching leadership, leaders can propel startups to greater heights. Startups require innovative ideas that are not only solutions but also meet market needs (Daradkeh and Mansoor, 2023). Achieving this necessitates not just a competent team but also an effective leadership style that can navigate team processes.
Democratic Leadership: Achieving Innovation and Collaboration in Startups
What is Democratic Leadership?
Often referred to as participative leadership, this style focuses on involving team members in decision-making processes. Leaders who adopt this style prioritize the majority’s input during discussions and feedback sessions. This approach is especially valuable in startups that prioritize innovation and flexibility, fostering a work culture that is inclusive, collaborative, and responsible.
Gunawan et al. (2024) highlight that democratic leadership can enhance team members’ motivation and commitment, fostering innovation and creativity. In the dynamic startup world, continual innovation is necessary to compete with established companies. Sole reliance on a leader’s inspiration can lead to limited ideas for strategic execution. However, a democratic approach can yield diverse, unique, and out-of-the-box ideas from team members, accelerating startup growth.
Impact of Democratic Leadership on Young Workers in Startups
Startups, predominantly staffed by young workers, recognize that work culture significantly influences their career aspirations. Deloitte’s (2024) research reveals that a majority of Gen Z (86%) and millennials (89%) are career-oriented, meaning each task must be meaningful for their career advancement. Here, democratic leaders can contribute to skill development while acknowledging aspirations.
Despite its positive impacts, this leadership style has drawbacks. For instance, decision-making can be slow if leaders lack clear timelines. This can hinder quick decision-making crucial for urgent solutions. Additionally, potential conflicts can arise from numerous ideas and opinions if leaders are not adept at navigating these dynamics. Effective mediation skills are essential for leaders in such situations.
Rico Tedyono, Co-Founder & COO Komunal Indonesia and also a Doctoral candidate majoring in Human Development at Airlangga University, asserts that democratic leadership requires listening to all team members’ aspirations, regardless of their position. Through the Komunal Young Force program, Rico and his team receive innovative ideas from interns, who are mostly students from around the world.
Rico emphasizes the importance of timelines in democratic leadership, “Democratic leadership can be hampered if we don’t have a predefined timeline. So, timeline is everything and must be adhered to for prompt execution.”
“If too democratic and accommodative without execution, it will result in dormant ideas.”
Coaching Leadership: Unleashing Team Potential with Inspiration
Understanding Coaching Leadership
This leadership style focuses on individual development within the team. Leaders act as mentors and facilitators, enhancing team members’ skills and potential. They provide guidance, constructive feedback, and relevant support to help team members achieve optimal performance and career aspirations.
Coaching Leadership in Startups
Coaching leaders support individual development by identifying team members’ strengths (Mäkelä et al., 2023). For example, if a leader identifies a team member’s strength in relationship-building, they might assign tasks that maximize this potential, leading to empowerment. Often, sharpening specific competencies results in cross-divisional role changes (career switching). This aligns with the flexible and dynamic startup culture, allowing individuals to learn rapidly to meet immediate needs. This process requires team members’ consent and workload adjustments, with continuous guidance and constructive direction from leaders.
Further, Romão et al. (2022) found that coaching leaders enhance team motivation, commitment, and happiness by periodically identifying strengths and weaknesses. In the high-pressure and high-turnover startup environment, coaching leadership can be a significant asset.
As Rico notes, “I personally use coaching leadership every week. We always have coaching sessions for team members, guiding them to find their own solutions. This internal initiative drives voluntary and joyful execution.”
This approach has enabled Rico to identify potential leaders now occupying director positions at Komunal, “Coaching leadership shows that fast-tracking an individual’s growth within a year is possible if they receive coaching.”
“Coaching is not just about hearing; it’s about active listening. As a leader, you don’t have to speak all the time but actively listen.”
This concludes Komunal’s journey in applying various leadership styles within its organization for sustainable business operations. Ultimately, business success hinges on effectively managing employees to achieve optimal business goals. Results are a bonus from the adaptation processes founders undergo in navigating exponential situations.
Together with Skystar Capital, we aim to assist leaders in contributing as growth catalysts. Leveraging our extensive network across various sectors—including media, financial services, healthcare, hospitality, and education—we are ready to create positive impacts, empower startups, and facilitate their growth.
Ready to take your startup to the next level? Submit your proposal here or start a conversation with us at contact@skystarcapital.com!
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