Adaptive leadership isn’t just a buzzword—it’s a necessity for Australia’s finance sector, especially as workplace dynamics evolve in 2025. Enter the Hersey-Blanchard Model, a practical framework that helps leaders tailor their approach to the readiness and development level of their teams. With the rise of hybrid work, tighter regulatory environments, and a new generation of finance professionals, understanding this model can be a game-changer for managers and teams alike.
What Is the Hersey-Blanchard Model?
Developed by Paul Hersey and Ken Blanchard, the Hersey-Blanchard Situational Leadership Model centres on the idea that no single leadership style is universally effective. Instead, leaders must adapt their style based on the maturity—meaning competence and motivation—of the individuals or groups they lead. The model identifies four key leadership styles:
- Telling (Directing): High task focus, low relationship focus. Leaders give clear instructions and closely supervise tasks. Useful for new or inexperienced team members.
- Selling (Coaching): High task and high relationship focus. Leaders explain decisions and provide support, ideal for teams developing confidence and skills.
- Participating (Supporting): Low task, high relationship focus. Leaders share decision-making and encourage input, perfect for experienced teams needing motivation.
- Delegating: Low task and relationship focus. Leaders hand over responsibility, best suited to high-performing, autonomous teams.
This flexibility is crucial for finance leaders, who often manage teams at varying skill levels—from recent grads starting out in accounting to seasoned analysts handling complex compliance tasks.
Why the Model Matters in Australian Finance Today
The Australian finance sector is in flux. As of 2025, the industry is grappling with:
- Workforce diversity: Teams are now a mix of digital natives and experienced professionals nearing retirement, each with different needs and expectations.
- Remote and hybrid work: Leadership now happens across screens and time zones, requiring a more nuanced approach to communication and motivation.
- Regulatory pressures: With APRA and ASIC introducing more stringent compliance requirements, leaders must guide teams through complex changes quickly and effectively.
The Hersey-Blanchard Model helps leaders navigate these challenges by providing a roadmap for adjusting their approach. For example, a finance manager rolling out new anti-money laundering (AML) protocols might use a ‘Telling’ style with junior staff unfamiliar with the regulations, then shift to ‘Participating’ with senior analysts who can offer valuable insights on implementation.
Real-World Applications: Case Studies and Best Practices
Consider a Sydney-based fintech scaling up in 2025. The CFO is tasked with integrating new ESG (environmental, social, and governance) reporting standards. Here’s how the Hersey-Blanchard Model can guide leadership:
- New Hires: For graduates joining the compliance team, a ‘Telling’ style ensures they understand the basics of ESG reporting.
- Mid-Level Analysts: These team members benefit from ‘Selling’—the CFO explains not just the ‘what’, but the ‘why’ behind the new standards, boosting buy-in and skill development.
- Senior Advisors: With the most experienced staff, the CFO can ‘Delegate’ tasks, trusting them to oversee audits and mentor others.
This adaptability pays dividends—teams move through change faster, employee engagement rises, and compliance risks drop. In fact, recent research from the Australian Institute of Company Directors (AICD) notes that adaptive leadership correlates strongly with organisational resilience and regulatory compliance in 2025.
Making the Model Work for You
Implementing the Hersey-Blanchard Model is about more than just reading a leadership textbook. Australian finance leaders can take these actionable steps:
- Assess readiness regularly: Use performance reviews and regular check-ins to gauge team members’ competence and motivation.
- Communicate clearly: Adjust your communication style to match each team member’s needs—more direction for beginners, more autonomy for experts.
- Invest in training: Support staff development with targeted training, mentoring, and cross-skilling programs, especially as regulatory demands evolve in 2025.
- Lead by example: Model adaptability and openness to feedback, encouraging your team to embrace change.
With the finance sector’s ongoing transformation, the ability to shift gears as a leader isn’t just nice to have—it’s essential for staying competitive and compliant in Australia’s fast-moving market.
