2022-07-28

How does one develop informal leadership?

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How does one develop informal leadership?

Latest updated: 19 January 2023

The fact that formal leadership plays a crucial role in all organizations is no surprise, but what many do not consider is that there are also informal leaders - that is, people who do not have any manager title, but who still have a lot of influence over their colleagues. How does informal leadership work, what advantages and risks does it bring to the organization, and how can an informal leader develop in their role?

 

Informal leaders are present in any context where two or more people gather. They are typically people who are good at taking initiative and communicating well, and therefore have a great influence over their environment.

In organizations, there are formal leaders, managers, at different levels - but it would be naive to think that informal leaders do not affect the operations. Sometimes they may even have more influence than the manager themselves. The question then is how the organization should relate to informal leadership? Should they develop and support it, and if so, how?

Formal leadership can be very beneficial for the operation, if it is adopted in the right way. At the same time, it must be handled with a certain caution, for reasons that will be discussed later. But let's first take a closer look at the characteristics that distinguish an informal leader.

Informal leaders can contribute

Informal leaders are characterized by the fact that they greatly influence other people's behavior and attitudes towards, for example, a task or a social situation. People around the informal leader look and listen to them, and do what they do. If it's a bad informal leader, the environment is negatively affected, which can poison the atmosphere at work. On the other hand, if it's a good informal leader, the person can function as a complement to formal leadership and may be promoted to a formal leadership position in the future.

Good informal leaders are also characterized by knowing the organization very well and sharing its values and vision. Additionally, the informal leader enjoys respect and trust from other employees, often because they are perceived as authentic, loyal, hardworking and driven by an inner motivation. Therefore, informal leaders can contribute positively by guiding their colleagues towards a common goal.

As we've already mentioned, there are several ways to relate to informal leadership, depending on what the organization wants to achieve. The online newspaper Medium mentions three common situations. The first is that you already have an informal leader that you want to help develop and become more successful in that role. The second is that you have an informal leader that you want to promote to a formal leadership role. The third possible situation is that you have a regular employee who is not yet an informal leader, but whom you want to develop into one. (Medium advises against the latter, and argues that such attempts usually fail.)

Risk and Pitfalls

Regardless of the purpose, one should be aware that there are many pitfalls to avoid when dealing with informal leadership. One must ensure that the informal leader truly has a positive influence on the work itself, beyond being a popular person. One must also make sure that the informal leader is also capable of sharing their leadership and influence, so that they do not just "hold forth" without leaving room for others. Being "dominant" does not necessarily mean that the person is a leader. Good leaders take initiative to involve other people and bring out the best in them.

If you want to promote an informal leader to a formal leadership role, you must also ensure that the person in question really wants it, and that it is the right step to take. Not all informal leaders are suitable as managers, on the contrary, there is a risk that the formal manager role causes them to lose their positive influence or passion. Sometimes an employee can function as an informal leader just because they are not a manager, and then it is not certain that a promotion is the best way to take advantage of the person's influence.

Another risk when wanting to invest in an employee's informal leadership is that it becomes too heavy and stressful for the employee themselves. Research by Harvard Business Review has shown that informal leadership can lead to decreased job satisfaction and lower energy levels for the employee. The solution, according to the same study, is that the formal manager must give the informal leader the right form of support and assistance - then one can develop the informal leadership without the employee's energy level dropping. As a complement to the manager's support, one can also seek help from a mentor or coach, who can provide both good advice and psychological relief.

Developing Informal Leadership

What qualities should be developed for an employee to become a better informal leader? Or, what qualities can you as an individual develop if you want to become an informal leader, possibly on the way to a formal management role?

First, it is important to remember that not everyone is meant to be a leader, so it is not a good idea to force it on someone who does not have those drives. It can lead to stress and feelings of inadequacy. To develop informal leadership, one must at least have a seed of it within themselves, in their personality, and most importantly, they must have an inner motivation to lead others.

If that drive is present, one can gradually start developing informal leadership. If done individually, on one's own initiative, it may be a good idea to identify some strengths in oneself that one wants to further develop and bring out more in their daily work. One can also talk to their manager and ask for advice, or perhaps have the opportunity to take a course or seek help from a coach or mentor.

What qualities should be developed? Here are some factors that play a big role in informal leadership:

Credibility and authenticity.

Du måste ha ett gott rykte i organisationen. Du måste uppfattas som lojal, hårt arbetande, värderingsdriven person som inger förtroende och som drivs av en inre motivation.

Kännedom om organisationen.

You must have a good reputation in the organization. You must be perceived as a loyal, hardworking, value-driven person who inspires trust and is driven by an inner motivation.

Knowledge of the organization.

An informal leader should know many people at all levels within the business (everyone, if it's a small business), and have a good understanding not only of formal rules, but also of the informal and human factors that in practice influence the organization.

Communication.

An informal leader must be good at communicating - and it's not primarily about being able to talk a lot, but rather about being a good listener, positively influencing others, and being able to give and receive feedback in the right way.

Initiative.

The ability to take initiative is one of the most central qualities of a leader, and it's a skill that you can train yourself on often and a lot. Take initiative, but without running over other people. The initiative could instead be to highlight and realize their ideas, and give them credit for it.

Humility and strong values.

Informal leadership must not be driven by selfishness and ambition for power. Good leaders are humble and value-driven, and genuinely interested in the purpose and vision of the business.

Develop and learn new things.

A good informal leader realizes that they always need to learn new things and develop, both in their professional role in general and in their role as an informal leader.

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