Situational Leadership: How to Lead Every Employee Effectively

The leadership approach that works with your experienced operations manager will fail spectacularly with a new hire. The style that motivates your self-driven salesperson will frustrate your detail-oriented accountant. Situational leadership solves this by giving you a framework to adapt your style to each person and task.

What is Situational Leadership?

Situational leadership is a model developed by Paul Hersey and Ken Blanchard in the late 1960s. The core insight is simple but powerful: there is no single best way to lead.

Instead, effective leaders assess two things:

1. Competence: Does this person have the skills and knowledge for this specific task?
2. Commitment: Does this person have the motivation and confidence for this specific task?

Based on the combination, you choose one of four leadership styles.

The 4 Situational Leadership Styles

1. Directing (S1)

When to use: Low competence, high commitment (enthusiastic beginners)

New employees are often highly motivated but lack skills. They need clear direction: step-by-step instructions, close supervision, and specific deadlines.

Example: A new sales hire is eager to close deals but doesn't know your sales process. You provide scripts, shadow their calls, and give immediate feedback.

Communication style: Tell them what to do, how to do it, when to do it, and where to do it.

2. Coaching (S2)

When to use: Some competence, low commitment (disillusioned learners)

After initial enthusiasm fades and reality hits, employees often struggle with confidence. They have some skills but need encouragement and explanation of the "why" behind decisions.

Example: That same sales hire, three months in, is hitting rejection and losing confidence. You still provide direction but also explain your reasoning, encourage questions, and celebrate small wins.

Communication style: Explain decisions, solicit suggestions, and praise progress.

3. Supporting (S3)

When to use: High competence, variable commitment (capable but cautious)

The employee knows how to do the job but may lack confidence or motivation on specific tasks. They need less direction and more support — listening, encouraging, and facilitating their problem-solving.

Example: Your sales hire, now a solid performer, is asked to present at a conference for the first time. They have the knowledge but are nervous. You help them prepare, offer reassurance, but let them own the presentation.

Communication style: Listen, facilitate, encourage, and share responsibility for decision-making.

4. Delegating (S4)

When to use: High competence, high commitment (self-reliant achievers)

The employee is skilled and motivated. They need autonomy. Micromanaging them would be demotivating. Your job is to set direction, then get out of the way.

Example: Your senior salesperson runs their territory independently. You set annual goals, provide resources when requested, and meet quarterly to review. They handle everything else.

Communication style: Hand over responsibility for day-to-day decisions. Stay available but don't hover.

How to Assess Development Level

Before choosing a leadership style, assess where the employee is on the specific task:

Critical insight: Development level is TASK-SPECIFIC. Someone might be D4 on their core responsibilities but D1 on a new software system. Assess for each task, not overall.

Situational Leadership in Small Business

Small business owners often default to one style — usually directing (because it's fastest) or delegating (because they're too busy). This creates problems:

• Over-directing experienced employees frustrates and demotivates them
• Under-directing new employees sets them up for failure
• Delegating to someone who needs coaching leaves them floundering
• Coaching someone ready for delegation wastes everyone's time

Situational leadership gives you a framework to consciously choose the right approach.

Practical Application: A Week in Situational Leadership

Let's follow a small business owner applying situational leadership:

Monday: New admin assistant (D1 on filing system)
Style: Directing — "Here's exactly how we organize client files. Let me show you step by step."

Tuesday: Experienced technician taking on scheduling (D2 on new task)
Style: Coaching — "Here's how the scheduling software works, and here's why we prioritize this way. What questions do you have?"

Wednesday: Senior sales rep presenting new pricing (D3 on presentations)
Style: Supporting — "You know this pricing better than anyone. How can I help you prepare for the client meeting?"

Thursday: Operations manager handling quarterly planning (D4 on operations)
Style: Delegating — "The goals are X, Y, Z. You know how to hit them. Let me know if you need anything."

Common Mistakes to Avoid

• Assessing person, not task: A senior employee on a new task needs direction, not delegation
• Staying in one style: As employees develop, your style should evolve
• Moving too fast: Jumping from Directing to Delegating skips crucial development stages
• Regressing without cause: Going back to Directing without reason signals distrust
• Not communicating the shift: Explain why you're changing your approach

Situational Leadership + AI: A Modern Approach

Interestingly, AI employees (like CubiCrew) require situational leadership too:

• Initial setup: Direct the AI with specific instructions and examples
• Training phase: Coach by reviewing outputs and explaining preferences
• Refinement: Support by handling edge cases together
• Maturity: Delegate routine tasks entirely

The framework applies whether you're leading humans or AI systems.

Frequently Asked Questions