Watkins introduces the concept of aligning leadership strategies with distinct business situations, introducing the STARS model. This chapter guides new leaders in their transitional phases, offering a framework for understanding and adapting to diverse organizational scenarios. Watkins refers to the case of Karl Lewin, who had previously led a successful turnaround in Europe but faced a different situation in North America.

STARS stands for Start-up, Turnaround, Accelerated Growth, Realignment, and Sustaining Success, representing the five common scenarios that leaders may encounter when taking on new roles within organizations. Watkins presents a diagram, referred to as “table 3-1” (57), to visually represent the STARS model and its components.

Watkins emphasizes that understanding the specific situation you are facing is crucial for effective leadership. He highlights two fundamental questions that leaders should address: What kind of change is required in this situation, and what kind of change leader am I? These questions guide leaders in adjusting their strategies and leadership styles to the unique challenges, opportunities, and resources of their roles.

The STARS model helps leaders categorize their situations and align their efforts accordingly. Start-ups involve building new ventures, while turnarounds require swift action to rescue failing units. Accelerated growth necessitates scaling up an already successful organization; Watkins asserts that leaders in such situations must build the necessary structures, processes, and systems to support and sustain this growth.