Situational Leadership - Startup Super School

What Is Situational Leadership?

Situational Leadership is a leadership model developed by management theorists Paul Hersey and Ken Blanchard in 1969. It challenges the idea that there’s one correct way to lead people - instead, it argues that effective leaders adapt their style based on each employee’s development level in relation to a specific task.

The key insight: what works for a motivated beginner is different from what works for a disengaged expert, and different again from what works for a skilled but anxious team member.

The Two Dimensions

Situational Leadership evaluates each employee on two axes for a specific task:

Competence: the skill, knowledge, and ability to perform the task Commitment: the motivation, confidence, and willingness to perform the task

These combine into four Development Levels (D1–D4):

Level	Competence	Commitment	Typical profile
D1	Low	High	New hire, enthusiastic, no experience
D2	Some	Low	Learning fast but losing confidence
D3	High	Variable	Expert who’s lost motivation or doubts themselves
D4	High	High	Fully capable and engaged

The Four Leadership Styles

Hersey and Blanchard mapped four leadership styles (S1–S4) that correspond to each development level:

S1 - Directing (High Task, Low Relationship)

For D1 employees: Tell them exactly what to do and how to do it. They’re eager but don’t yet have the skills to work independently. Clear instructions, frequent check-ins, and specific guidance are what they need. This isn’t micromanagement - it’s appropriate structure for someone new to a task.

S2 - Coaching (High Task, High Relationship)

For D2 employees: Continue providing clear direction, but pair it with encouragement and two-way conversation. The employee is developing competence but struggling with confidence. Explain the why behind decisions, ask for their input, and invest in the relationship alongside the instruction.

S3 - Supporting (Low Task, High Relationship)

For D3 employees: Step back from directing and focus on encouraging and enabling. This employee has the skills but needs confidence and ownership. Your job is to listen, collaborate, and affirm - not instruct. Micromanaging a D3 employee is demoralizing and often leads to attrition.

S4 - Delegating (Low Task, Low Relationship)

For D4 employees: Set the outcome and get out of the way. These are your most capable and motivated people. They don’t need hand-holding or frequent check-ins - they need clear goals, the right resources, and autonomy. Over-managing a D4 is the fastest way to lose them.

Why Style Mismatches Are Costly

Mismatch	What happens
Directing a D4	Employee feels micromanaged, engagement drops
Delegating a D1	Employee feels abandoned, makes mistakes, loses confidence
Supporting a D1	Employee feels good but doesn’t improve
Coaching a D4	Wastes both parties’ time, breeds resentment

Applying This at a Startup

Situational Leadership is especially valuable at early-stage companies because:

Teams are small and heterogeneous - everyone needs a different style
Roles evolve quickly - someone can go from D1 to D4 within months
Founders often manage out of their natural style rather than the employee’s needs

The practical discipline: before every 1:1 or project check-in, ask yourself - where is this person on this specific task? Then choose your style accordingly.

Key Takeaway

There is no universally correct leadership style. The best founders and managers read the room continuously - diagnosing where each person is on each task and flexing their approach accordingly. Situational Leadership gives you a practical vocabulary and framework to do this deliberately, rather than by instinct or default.

Frequently Asked Questions

What is Situational Leadership?

Situational Leadership is a management model developed by Paul Hersey and Ken Blanchard that argues there is no single best leadership style. Instead, effective leaders adapt their style based on each employee's level of competence (their skill and knowledge) and commitment (their motivation and confidence) in relation to a specific task. The right style for a new hire struggling with confidence is different from the right style for a seasoned expert who's fully autonomous.

What are the four Situational Leadership styles?

The four styles are: S1 Directing (high directive, low supportive) - for low-competence, high-commitment employees who are new and eager; S2 Coaching (high directive, high supportive) - for some competence but low commitment, needing guidance and encouragement; S3 Supporting (low directive, high supportive) - for high competence but low confidence, needing encouragement not instruction; S4 Delegating (low directive, low supportive) - for high competence and high commitment, who work best with full autonomy.

Why do startup founders need Situational Leadership?

Startup founders often manage people across wildly different experience levels simultaneously - a junior engineer fresh from university, a senior sales hire with 10 years of experience, and a mid-level designer still learning the product. Applying the same management style to all three is a mistake. Situational Leadership gives founders a practical framework to flex their style based on who they're managing, rather than defaulting to their natural style with everyone.

How do you diagnose which style to use?

Start by assessing the employee on the specific task, not in general. A senior engineer who is highly capable at backend systems may be a beginner at stakeholder communication - requiring a different style for each context. Ask yourself: Does this person know how to do this specific thing? And do they want to do it - are they motivated and confident? High skill + high motivation = delegate. Low skill + high motivation = direct. Match the style to the task, not the person's overall seniority.