For a long time in the world of business, women were not taken seriously, considered too emotional for making important decisions or incapable of strategic thinking.
And even when the doors of corporations and business began to open, women, trying to establish themselves in the business world, started to copy male management strategies: rigidity, total control over subordinates, an “aggressive” method of negotiations. They turned themselves into “iron ladies”, breaking their natural power – power based on empathy and adaptability.
Dasha Ozden is a fintech entrepreneur, an investor, and a trader who specializes in digital assets, investments for private individuals and the development of financial independence since 2019. In this article she shares her knowledge on how to build a successful business, create an international team of true fans of their work using the principles of soft power.
What does the science of female leadership say?
Female entrepreneurs often use the transformational leadership style, focused on the motivation and development of the team, whereas male entrepreneurs are prone to directive and aggressive management. This is evidenced by a study published in the journal “Basic Facts of Business and Management” (Great Britain).
Moreover, organizations, which are led by leaders and focused on relationships and trust, demonstrate 21 % higher profitability and 17 % higher performance (Gallup study, 2023).
The numbers convincingly demonstrate to us: the empathic and adaptive approach to management works. But the question arises: how to implement “soft leadership” in practice? And is it always the only true business strategy?
New philosophy of team management
Any distortions in the actions of the leader inevitably lead to negative consequences. And excessive softness is as dangerous as excessive rigidity.
We will analyze the example of a situation that can occur in any organization. A very strong, important female employee for the company was in a crisis due to a divorce. Emotional experiences were reflected in the quality of work: errors, low productivity, difficulty with concentration.
Often such employees are made to face a tough reprimand or threaten dismissal. In conditions of adaptability and safety, the leader tried to find an approach, balancing between condescension and the necessary exactingness.
Step by step, the crisis passed, the employee returned to the old work routine, and the company retained a valuable worker and avoided hiring a new one.
Dasha Ozden thinks that this path is the one that women should build in business. In this path the main tools are strategy, mentoring, support and development of solid and soft skills among employees. The task is to see the strengths of their subordinates and help reveal them so that the team becomes a single strong “organism”, capable of solving complex problems.
How to develop soft power and effectively manage it
1. Develop empathy and the ability to listen. Every day, allocate at least 10 minutes for communication: with colleagues, partners, with subordinates. At the same time, listen, without being distracted by calls and without interrupting, be completely involved in the conversation. You can make brief notes to notice and take into account the needs, requests and problems of employees.
2. Feedback: support balance and demandingness. Try to discuss positive and negative working moments with the teams honestly, but without accusations. Focus on actions, decisions and results, but not personality.
3. Create an atmosphere of psychological safety in the company. How to do this:
- Discuss errors as experience for future tasks, but not as a reason for punishment.
- Encourage ideas and initiative, even if they require improvement.
- Show your own vulnerability, share your doubts and mistakes.
4. Develop adaptability as the basis for working with teams. Do not be afraid of changes; show that you always have a “plan B”, and be sure to support a constant dialogue with the team – sometimes joint discussions turn out to be the most valuable.
For many companies, a full-time psychologist will be a reasonable solution. Yes, it is necessary to allocate the budget for this, but investments are justified by the preservation of strong personnel and increasing the efficiency of the teams.
A full-time psychologist helps to find ways to motivate for the growth of each particular employee, as well as overcome complex periods – from family troubles to professional burnout.
Dasha Ozden has used these techniques and seen the effectiveness of all these methods in her own business.
Does the concept of soft power always work?
Despite the positive aspects, the concept of soft power is often idealized. In popular journalism, it is often represented as a universal way to solve all business problems.
Why is this a mistake? The fact is that in business there is no unified scheme that will definitely work, regardless of the entrepreneurship, the situation in the market, the mentality of employees, etc. Let’s figure out in what cases adaptability and empathic leadership will not be effective in pure form:
- Soft power does not always work in highly competitive and crisis conditions, when it is important to make decisions quickly and keep the situation under tight control.
- In some cultures, where strong, confident and conflict behavior is encouraged and considered a sign of resistance and strength, softness can be perceived as weakness and lead to a loss of authority.
- You cannot take only one leadership style as universal. A successful leader must be able to switch between different approaches.
Thus, softness is not always an advantage. Sometimes it can be perceived as indecision or lack of leadership qualities. In order to build the very “perfect balance” between demandingness and empathy, follow the these principles:
- Set and directly define clear boundaries and expectations. Remember: empathy does not mean the lack of requirements.
- Do not be afraid to make tough decisions and discuss uncomfortable things.
- Develop confidence through preparation for dialogue and a detailed analysis of the situation from different angles.
If you are a female entrepreneur who begins her way, concentrate on the development of your own leadership strategy, combining soft power with determination. Adaptability and empathy should be your tools, not an end in itself.