Leadership Mistakes: How to Turn Them Around

In recent blogs, we explored effective leadership approaches that help small business owners succeed. But many leaders still struggle to manage employees well. In fact, a study by Cake.com found that only 29% of employees trust their leaders, and just 20% believe they’re managed in a way that helps them work productively.

If you feel frustrated in your role as a leader, it may help to recognize which management styles are ineffective—and more importantly, how to correct them. Let’s look at four of the most common ineffective leadership styles and practical ways to overcome them.

Micromanagement

Micromanagers closely monitor every action their employees take. They resist delegating, and when they do, they often interfere with the work and demand constant updates. This creates an atmosphere where employees feel distrusted, fearful of mistakes, and discouraged from being creative. The result? Low morale, reduced productivity, and high turnover.

How to overcome micromanagement:

  • Acknowledge the behavior and identify the root cause. Is it fear of failure? Perfectionism? Lack of trust?
  • Start small by delegating low-risk tasks. Give clear expectations but avoid dictating every step.
  • Focus on goals and outcomes, not micromanaging the process.
  • Celebrate employee creativity and innovation.
  • Schedule regular check-ins rather than constant oversight.
  • Ask employees for feedback on how empowered they feel.
  • Invest in leadership development training—for yourself and your team.

Authoritarian Leadership

Authoritarian leaders make decisions alone, without input from their employees. While this style may feel efficient, it creates a fear-based culture, stifles creativity, and leaves employees disengaged.

How to shift away from authoritarian leadership:

  • Reflect on why you lead this way—often it’s driven by fear of failure or a need for control.
  • Invite feedback and listen to your employees’ concerns.
  • Delegate tasks and focus on results rather than process.
  • Adopt a coaching mindset: guide and encourage rather than command.
  • Encourage collaboration and shared decision-making.
  • Celebrate progress when you successfully empower employees.

Passive (Hands-Off) Leadership

At the opposite end of the spectrum, passive leaders avoid leading altogether. They focus only on their own tasks, leaving employees without direction or support. Conflicts go unresolved, decisions are delayed, and performance suffers.

How to become more engaged as a leader:

  • Acknowledge the avoidance. Remind yourself that you were chosen to lead because you are capable.
  • Ask your employees what they need from you and really listen.
  • Work with your team to set goals, priorities, and clear expectations.
  • Interact regularly and provide feedback—both praise and constructive guidance.
  • Gather information before making decisions rather than avoiding them.
  • Empower your team to make decisions and develop their skills.

Indecisive Leadership

Indecisive leaders procrastinate on decisions out of fear of mistakes. This creates confusion, frustrates employees, and causes missed opportunities for growth. Over time, employees lose confidence in their leader.

How to overcome indecisiveness:

  • Revisit why you started your business and define three priorities to guide your decisions.
  • Create a decision-making process (such as pros/cons lists or SWOT analysis).
  • Set deadlines to avoid procrastination.
  • Delegate decision-making where appropriate to reduce your burden.
  • Build confidence by making smaller, low-risk decisions first.
  • Accept that mistakes are part of leadership—learn from them and move forward.

Final Thoughts

As you can see, many of the corrective steps apply to more than one ineffective leadership style. Each plan of corrective action involves building relationships and trust with your employees. Whether you are a small business owner or a team leader within a company, your employees are your greatest assets. Treat your employees with respect and build their confidence so that they will partner with you to accomplish the goals of your company.

This blog concludes our leadership series, where we’ve explored both effective and ineffective leadership styles. Over the past several weeks, we’ve looked at transformational, servant, and coaching leadership—styles that inspire, guide, and empower employees. We’ve also examined the challenges of leading different generations in the workplace. Now, by addressing ineffective patterns such as micromanagement, authoritarianism, passivity, and indecision, you have a full picture of what to avoid and what to strive toward. Strong leadership is not about perfection—it’s about growth, self-awareness, and a commitment to creating a culture where both you and your employees can thrive.

Serve First:  The Leadership Style That Boosts Profits

In the last few blogs, we’ve explored six effective leadership styles: servant, transformational, results-driven, hands-on, adaptive, and coaching.

While no single style works best for every employee, servant leadership consistently ranked highest across most generations of workers. Beyond boosting morale and engagement, servant leadership can also improve the bottom line. A 2023 study found that business owners who shifted to a servant leadership approach saw an increase in profits.

What Makes a Servant Leader?

Servant leaders stand out by:

  • Allowing employees to share their feelings and suggestions
  • Listening to feedback from employees, customers, and stakeholders
  • Admitting mistakes and acknowledging they don’t have all the answers
  • Recognizing the contributions of others
  • Leading with authenticity
  • Committing to personal growth and improvement
  • Building a culture of trust and safety

Jesus modeled this style of leadership, reminding His disciples:

Whoever wants to become great among you must be your servant, and whoever wants to be first must be slave of all. For even the Son of Man did not come to be served, but to serve.”               — Mark 10:43–45

How Servant Leadership Benefits Businesses

Servant leadership doesn’t just feel good—it produces tangible results that can strengthen and grow a business:

1. Greater Employee Engagement

  • Employees feel valued, connected, and empowered in their roles
  • Engaged employees are more likely to stay, reducing costly turnover
  • Lower turnover = reduced hiring/training expenses = higher profits

2. Stronger Customer Relationships

  • Servant leaders prioritize customer needs and resolve issues quickly
  • Genuine care builds loyalty and trust
  • Better service and stronger relationships = repeat customers = higher revenues

3. More Innovation and Adaptability

  • Employees feel safe suggesting improvements and new ideas
  • A culture of trust encourages flexibility and openness to change
  • Increased efficiency and adaptability = happier customers = higher profits

4. Ethical Business Practices

  • Servant leaders model integrity in all dealings
  • Customers, employees, and partners are more likely to trust the business
  • Strong partnerships and customer loyalty = sustainable growth

5. Inspires Employees with a Sense of Purpose

  • Employees who believe in the mission bring passion and energy to their work
  • Purpose-driven employees are more productive and efficient
  • Greater productivity = lower costs = stronger profitability

Final Thoughts

Practicing servant leadership fosters a culture of trust, respect, and collaboration. These qualities not only make the workplace more positive but also contribute to long-term profitability.

The apostle Paul captured this spirit well:

Do nothing out of selfish ambition or vain conceit. Rather, in humility value others above yourselves, not looking to your own interests but each of you to the interests of the others.” — Philippians 2:3–4 (NIV)

When business owners choose to serve first, both people and profits thrive.

Effective Leadership Styles: Which One Fits You Best?

As a business owner, your leadership style sets the tone for your company culture, employee morale, and ultimately your success. Some leaders lean toward an authoritarian approach—my way or the highway—while others avoid leading altogether, trying instead to be everyone’s friend. Neither of these extremes typically result in strong or sustainable leadership.

In this blog, we’ll take a look at six effective leadership styles that can help you build a healthier business and a stronger team.

Servant Leaders: Leading with Empathy

Servant leaders put the needs of others ahead of their own. A defining trait of this leadership style is the intentional consideration of how business decisions affect employees. Policies are designed to improve—not complicate—the lives of those who work for them.

A small business owner who embraces servant leadership strives to grow both the company and the people within it. He works to balance the needs of the business with the family lives of his employees, cultivating loyalty and a strong team culture.

Servant leaders are characterized by:

  • Empathy and understanding
  • Selflessness in decision-making
  • A focus on empowering employees

Transformational Leaders: Inspiring Growth and Innovation

A transformational leader seeks to improve and evolve the business. This often includes changing the workplace culture, streamlining processes, or introducing innovation. These leaders share their vision with their team and motivate them to work toward it.

A small business owner with a transformational mindset listens to employees and values their input. He encourages adaptability and embraces change as a path to improvement.

Transformational leaders are characterized by:

  • A compelling vision for the future
  • Motivation and inspiration
  • A willingness to lead through change

Hands-On Leaders: Leading by Example

Hands-on leaders work closely with their employees and understand the day-to-day operations of the business. This leadership style is especially common (and often necessary) in the early stages of a company.

A hands-on owner models a strong work ethic and sets the standard for professionalism, service, and dedication.

Hands-on leaders are characterized by:

  • Deep operational knowledge
  • High involvement in daily tasks
  • Strong modeling of company values

Results-Oriented Leaders: Focused on the Bottom Line

Results-oriented leaders are driven by clear goals—such as hitting sales targets or maintaining profit margins. These leaders value data, use measurable benchmarks to evaluate performance, and hold employees accountable.

They are highly effective at creating systems that lead to tangible success. Everyone on the team knows what is expected and how they contribute to the bigger picture.

Results-oriented leaders are characterized by:

  • Clear performance goals and expectations
  • Regular feedback and evaluation
  • Recognition of high achievers

Adaptive Leaders: Thriving Through Change

Adaptive leaders are flexible and responsive to shifting business environments. They stay informed about industry trends, pivot when needed, and encourage feedback from employees.

An adaptive leader views change not as a disruption but as an opportunity for innovation. He learns from failures and stays focused on long-term goals.

Adaptive leaders are characterized by:

  • Responsiveness to change and feedback
  • Strategic decision-making
  • A willingness to evolve with the market

Coaching Leaders: Mentoring for Growth

A coaching leader sees employees not just as workers but as people with potential. This leadership style focuses on developing individual strengths and long-term growth.

A business owner who leads this way invests time in understanding his team. He provides thoughtful feedback, encourages problem-solving, and builds strong relationships based on trust.

Coaching leaders are characterized by:

  • Prioritizing employee development
  • Constructive, two-way feedback
  • Trust-building and mentoring

Which Style Fits You?

Each of these leadership styles can be effective—but not every style will feel natural to every business owner. If you’re naturally task-oriented, you may gravitate toward being a results-oriented leader. If you’re more people-focused, servant, coaching, transformational, or hands-on leadership may feel more authentic. Adaptive leaders often strike a balance between both.

Want help identifying your natural leadership strengths? Try one of these free personality assessments:

Each test takes about ten minutes and can provide valuable insight to help you lead more confidently and effectively.

Coming up next: In my next blog, we’ll discuss how different generations of employees respond to different leadership styles—and how you can adjust your approach to lead them well.