What is transformational leadership?
Transformational leadership is a management philosophy that encourages and inspires employees to innovate and develop new ways to grow and improve the path to a company’s future success. Using this method, executives give trusted employees the independence to make decisions and support new problem-solving approaches.
Transformational leaders are passionate about their work and the company’s mission, while also helping all employees succeed. Another key trait is their ability to identify business processes that no longer work and focus on streamlining or changing them as needed.
While transformational leaders are often admired, they don’t seek out praise or adulation because their focus is on doing what’s best for their organization. Risk taking is calculated — based on gathering intelligence from team members, the leader’s own instincts and experience. Decisions are made with an eye toward the organization’s values, vision and objectives.
Why is transformational leadership important?
There are many kinds of leadership styles. While some may benefit the individual leader or offer short-term results, transformational leadership inspires actions and habits designed to help an organization over long time periods. This approach has gained popularity because it can be the proverbial win-win, helping both the leader and organization succeed.
For example, rather than focus on tactics or short-term issues, a transformational leader gives priority to understanding what motivates individual employees and helps them focus on the company’s long-term vision.
These leaders also aren’t afraid to be challenged or consider constructive criticism. As a result, employees are empowered to share their ideas and offer constructive criticism of new directives. Leaders will also take risks and encourage suggestions from others so everyone has input into the team’s accomplishments. Rather than a rigid leadership approach, transformational leaders practice team building and encourage coaching. Building confidence in employees’ ability to succeed and learn from failures better prepares organizations for sudden changes, such as a reorganization or downsizing.
Transactional vs. transformational leadership
Different managers may deploy different management styles depending on the situation and the needs of the organization. There are times when a more transactional approach is needed to make sure important short-term goals are met and operations are running smoothly. However, the transformational approach encourages business innovation, new ideas and longer-term objectives.
