Leadership styles and climate


Edwina Melville-Gray

    Leadership styles and climate is the closest you can get to a profit and loss statement for how well a leader is managing their people     
Edwina Melville-Gray
Global Category Manager, Talent
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Our research shows that leadership styles impact climate by up to 70 percent and climate can account for 30 percent of the variance of bottom line performance. So, improving your leader’s effectiveness is likely to have a tangible impact on business performance.

  • A study of 33 MDs in a global technology firm found that those who created high performing climates outperformed their peers by $711 million in profit 
  • Leaders in a financial services call centre who created positive climates delivered:
    • 26% more sales than target compared to 4% delivered by their peers
    • One quarter lower absence rates
    • One third lower staff turnover
  • In a large UK retailer leaders creating the best climates delivered:
    • 17% lower staff turnover
    • 40% lower absenteeism
    • 12% higher sales growth
    • 10% more operating savings
    • 35% lower stock loss
  • In a study of ward managers in the NHS wards led by high performing leaders with good climates had:
    • 40% less drug errors
    • 36% lower staff turnover
    • 57% reduction in absenteeism

Leaders who have mastered four or more leadership styles— especially the authoritative, democratic, affiliative and coaching styles—have the best climate and business performance.