The phrase ‘transformational leadership’ was originally coined by James MacGregor Burns back in 1978 as a way to differentiate leadership styles. According to Burns, transformational leadership focuses on people’s ethics and beliefs, while transactional leadership is driven by self-interest and exchange.
Since then, the transformational leadership movement has significantly grown in importance in modern organisations. Leaders who are transparent about their vision and expectations, embrace failure and create open channels of communication, foster a healthy workplace environment where creativity can thrive.
So, what exactly is transformational leadership and why is it valued so much by employers and employees alike? Let’s get into it.
Key Characteristics of Transformational Leadership
Transformational leadership can be broken down into four key components.
Idealised Influence
Transformational leaders ooze charisma and act as role models for their followers. They work hard to earn their team’s genuine trust and respect, presenting big ideas to motivate and inspire those around them.
Inspirational Motivation
These leaders articulate big, inspiring ideas to their teams in a way that boosts enthusiasm and collaboration in those working towards shared goals. They hold their team to a high standard but provide the necessary support and direction to ensure they’re in the best possible position to soar to those heights.
Intellectual Stimulation
Creating an environment where ideas and creativity can thrive is a huge indicator of success for a transformational leader. They encourage team members to present new and exciting projects that may be outside the normal realm and don’t shy away from failure. In their eyes, the best performance happens when their team steps outside their comfort zone.
Individualised Consideration
Emotional intelligence is a core skill held by any transformational leader. They’re empathetic leaders who understand a team member’s need to be heard to succeed. They can adapt communication styles depending on the situation and people involved, understanding that different personality types often require a different leadership approach.
Transformational Leadership vs. Transactional Leadership
Transactional leaders employ a different strategy when it comes to leading a team. They have a greater focus on structure compared to a transformational leader who values inspiration and freedom.
Often compared to a more militant approach to leadership, they expect commitment and organisation from their teams to follow certain rules and regulations put in place. They thrive on results and conform to existing organisational structures to ensure these are met. While a transformational leader may prioritise open group discussion and idea sharing, transactional leaders often favour more traditional methods such as individual one-to-one progress meetings.
Many leaders will display both transformational and transactional traits, and knowing when to utilise one or the other more is a sign of a great leader. For example, working to a strict deadline consisting of objective tasks will require a transactional approach to ensure everybody is working as expected. A long-term project still in the early stages would likely benefit from a transformational approach to foster a productive space for idea development. The same leader can step up in both of these situations to ensure effectiveness across the organisation.
Benefits of Transformational Leadership
Embracing a transformational leadership approach comes with a huge range of benefits. By creating a space where people can be creative, present their best ideas and truly feel heard, transformational leaders are often rewarded with a more loyal employee base. This team security boosts overall engagement, morale and motivation.
A good transformational leader also has a noticeable impact on organisational change and innovation. By embracing company values and getting excited about them, those around them feel inspired to do whatever is necessary to achieve those shared goals. This approach not only encourages project success but also benefits the overall business growth and development of individual employees.
How to Implement Transformational Leadership in Your Workplace
Many leaders aspire to be transformational within their organisation. Despite some common personality traits lending themselves to this, you don’t just become an inspiration overnight. There are, however, some strategies you can implement to help you on your way to becoming an approachable and desirable mentor for your team.
Developing emotional intelligence and empathy
Learning to listen and accept without judgement is crucial for building trust with those who look up to you. Practise pausing and thinking before making a quick decision or reply. Before entering difficult conversations, take some time to consider the different scenarios that could arise. This will help you to respond rather than react in the moment.
Encouraging creativity and intellectual stimulation
Fostering a sense of community is an essential basis for employee empowerment. When team members feel encouraged to share ideas without fear of failure, they become more engaged and innovative. Consider organising team-building activities or initiatives to allow employees to get to know each other on a deeper level before diving into brainstorming sessions, for example.
In the modern workplace, leaders have the added pressure of ensuring both remote and in-person employees have the space and tools to communicate clearly and respectfully with each other. Utilising programs such as Microsoft Teams can help simulate an in-person meeting.
Navigating the harder days
Transformational leaders are allowed to have down days too. You’re only human after all. What’s important is knowing how to influence and motivate a team even when you don’t feel motivated yourself. Sticking to a routine whilst at work and implementing delegation techniques can help you get through these tougher days.
Control what you’re able to control and allow yourself to take regular breaks—they’ll actually boost your productivity.
Identifying and supporting new leaders
As a leader, being able to identify other emerging leaders in your organisation is a great quality for ensuring the business thrives for years to come. This commitment to developing others adds depth to your leadership portfolio and fosters a culture of growth and continuity.
Transformational Leadership in Practice
Many big names in the tech space are embracing a transformational style of leadership.
Microsoft’s Satya Nadella is a great example of this. He completely revolutionised the culture within the tech company when he joined in 2014. He made bold decisions about the future and values of the company, advocating for open-source collaboration, emphasising the importance of soft skills and stopping infighting among team members.
Nadella himself spoke about his leadership methods, stating: “What I realise more than ever now is that my job is the curation of our culture. If you don’t focus on creating a culture that allows people to do their best work, then you’ve created nothing.”
The Future of Transformational Leadership
Whether you’ve been a leader for 20 years, or just became a manager for the first time, there’s always space for new and evolving skills. Adopting the traits of a transformational leader will help you foster a creative environment, boost team morale and see greater long-term business success.
As your trusted leader in workspace solutions, Priority Management is here to help you work smarter. Our leadership training courses offer an opportunity to build confidence in your team and further develop productivity, emotional intelligence, and critical thinking skills. No matter what stage of your transformational leadership journey you’re at, get in touch with our team today.