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What Is Transformational Leadership?

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Transformational leadership helps navigate challenging periods by inspiring, motivating and aligning employees. Learn more about this critical leadership style.

The unprecedented waves of change caused by everything from the global pandemic to fragile economic conditions to groundbreaking new technology have left organizations and employees depleted. At the same time, the evolving generational composition of the workforce is also influencing working practices and culture.

In periods of profound change, leadership is needed to help employees navigate challenges, seize opportunities and provide a sense of direction. And leadership styles that help inspire, motivate and provide purpose for employees are particularly powerful during these times of uncertainty and flux.  

Table of Contents

What Is Transformational Leadership?

Transformational leadership is a leadership style which focuses on inspiring and motivating employees through clear, authentic and at times a personal vision and sense of mission, all while setting an appropriate example by demonstrating the right behaviors.  

This style of leadership can in turn lead to:

  • Elevated performance among employees that exceeds expectations.
  • Effective support through organizational change.
  • Improved employee engagement.
  • A healthy organizational culture. 

Transformational leadership also helps create the right conditions to facilitate collaboration in order to make transformation a success.

The concept of transformational leadership is not new. The term was first used by sociologist James V. Downton, and then expanded upon by historian and political scientist James MacGregor Burns. Burns wrote about transformational leadership — and its counterpart, transactional leadership — in the late seventies. 

And of course, we have been following charismatic and inspirational leaders who carry out this style of leadership well before Downton and Burns weighed in. 

Related Article: 13 Common Leadership Styles — And How to Decide Which to Use

How Important Is Transformational Leadership in Today's Workplace?

Despite the concept being around for decades, one could say transformational leadership is particularly relevant to today’s workplace. 

Christine Payne, senior principal at United Minds, said transformational leadership is critical in the current workplace, where leaders are juggling many changes in an environment different from where they first learned their own workplace behaviors.  

“For example,” explained Payne, “the ongoing challenge of hybrid working and the pressure to make decisions on the return-to-office debate; or the rapidly evolving influence of AI, or pressures on sustainability. “

Topics like these, she continued, are both business critical and intensely personal — and most aren’t topics leaders have had to deal with before. “So, where problems are increasingly complicated and multifaceted, they require a personal approach to their resolution in order to resonate with employees on both practical and emotional levels.”

Jenni Field, internal communications and leadership consultant and author of “Nobody Believes You: Becoming a Leader People Will Follow,” agreed with Payne about the relevancy of the transformational leadership style for today, regarding it as fundamental to modern leadership.

“Leadership is a responsibility, so I believe that leading with the focus on followership and outcomes is important,” said Field. “Leadership is when you influence others to the point where they follow you. To lead is to bring people together to accomplish a shared objective.”

How you do that, she added, is important, because you want people to believe you and follow you. And to foster innovation, you need to demonstrate your vision through good communication, inspiring others and showing your passion. 

What Are the Characteristics of Transformational Leadership?

There are a number of characteristics associated with transformational leadership, including:

  • Ability to articulate a shared vision and related goals
  • A strong moral compass
  • Acting as a role model
  • Setting an example and exhibiting the right behaviors
  • Being a charismatic, authentic and credible communicator
  • Listening to and supporting employees
  • Trusting employees and carrying out effective delegation
  • Challenging employees to develop a growth mindset
  • Leading with humility and showing empathy
  • Being consistent with all the above

Payne said she regards some of these qualities as being part of “human leadership,” which is directly linked to the ability for a leader to inspire those around them.

Ultimately, Payne explained, transformational leaders drive achievements beyond expectations through a combination of inspiration and intrinsic motivation. “Leaders who achieve those kinds of impactful outcomes need to have — or to develop — qualities that combine strategic performance with compassion, empathy, kindness — in other words, human leadership.” 

Field also emphasized the importance of “human” qualities inherent in transformational leadership, particularly around being supportive.

“Being supportive includes the ability to be inclusive, create a psychologically safe space and lead with humility, all of which are needed in the workplace today. This has strong links to organizational values and behaviors and the leader has to embody those if they want to lead by example and bring the culture to life.”

Field added that she believes letting these more personal and human qualities “shine through” helps to establish the credibility that is critical for transformational leadership.

“Empathy courses through their interactions, allowing them to understand the needs and feelings of their team members. They offer unwavering support in times of both triumph and difficulty. Their integrity is unassailable, guiding their decisions with an unwavering commitment to ethical principles.

Learning Opportunities

“Trustworthy beyond measure, they honor their promises and inspire others to entrust them with their aspirations. 

Related Article: What Is Participative Leadership?

The Pros of Transformational Leadership

Various leadership styles tend to have both positives and negatives, but there seem to be fewer downsides associated with transformational leadership.

Create the Environment Where Innovation Thrives

The combination of credibility, humility and authenticity transformational leaders display builds trust with employees. This in turn creates an atmosphere where people are willing to share new ideas, experiment and collaborate. "Their visionary perspective extends beyond the horizon, leading the way with innovative ideas that set new standards,” said Field.

Align and Inspire Employees Around a Common Vision

At a time when Gallup reports less than half of employees know what is expected of them, creating alignment and enthusiasm around an organization's goals is critical. Payne argues this is where transformational leaders excel: “I see transformational leadership being about inspiring teams and organizations around a shared vision: inspiring followership, driving intrinsic motivation and innovative thinking, devolving accountability."

Ability to Lead Through Challenging Periods

It would be safe to call the last four years challenging, and given the promise of more disruptive change ahead, those challenges show no signs of abating. Transformational leaders' ability to lead during these times derives from their balance of characteristics above, making them a strong fit to help organizations navigate difficult times. 

“A credible leader encompasses a remarkable blend of qualities that naturally attract admiration and respect,” Field explained. “Their capabilities shine through in their adept handling of challenges and their knack for delivering consistent results."

The Cons of Transformational Leadership

While experts cite few downsides to the results of transformational leadership, it might not be the preferred style for everyone, or the most suitable for all CEOs based on their personal attributes.

Can Be a Steep Learning Curve

For leaders whose natural inclination is to manage through command and control, learning to lead in this style will take considerable effort.

"There aren't downsides to transformational leadership in terms of business impact and benefit, but there are considerations. Taking this approach to leadership requires a commitment and it can be a change for those who have perhaps achieved success using more traditional leadership styles. It's not a quick fix, but the benefits are long-term,” Payne said.

Doesn't Always Fit the Circumstances

Field also believes that while there are few downsides to transformational leadership, it also needs to be delivered in the right way. 

“I think there is always a need to understand your team and those you lead. Everyone needs different levels of support, for example, so we have to make sure it’s appropriate.” 

Advice for Those Adopting Transformational Leadership

Moving to a style of transformational leadership isn’t something that necessarily happens overnight. A critical first step for this is a period of self-reflection to determine if you are up for the challenge. 

“You have to know if you want to lead,” said Field. “Leadership comes with responsibility, and not everyone wants that. You have to know where you are today in terms of your leadership journey and that means you need to explore your mindset and be open to the reality of your impact on others. Make small steps and give yourself space to test and learn.”

Payne agreed that self-reflection is critical, not only for a leader to understand how they lead, but also to define their own purpose and vision which is fundamental to a transformational leadership style.

“Good leadership starts with self. Only when leaders truly understand how to get the most out of themselves are they in a position to lead others and get the most out of their teams and wider organization. And to understand themselves, leaders must first get absolutely clear on their own purpose, vision and values. Through self-awareness and reflection, leaders can understand the psychology of their own habits and behaviors.”

Having this awareness, Payne continued, puts leaders into a position to influence others.

“Once leaders understand why they behave in a certain way and the impact that has on those around them, then they can set new intentions and determine the actions that will shift the mindset, behaviors and therefore results from others,” she said. “With a much more conscious and intentional approach, these leaders will show up in their organizations more authentically and naturally bring others with them.”

Field also alluded to a number of practical steps that transformational leaders can take, especially to increase their credibility. 

“There are lots of skills and strategies leaders can adopt to foster better credibility — things like listening actively, doing what you say you will do and sharing more about yourself to build connection with those you lead.” 

Related Article: What Is Servant Leadership? Inside the Leadership Style That Puts People First

Is Transformational Leadership Right for You?

Transformational leadership is a well-established style that is particularly pertinent to today’s workplace, but it takes time to foster and might not be for everybody. It may also require significant personal change and can be something of the proverbial “journey.” However, leaders who are able to harness a more transformational style will not only experience significance for their organization and employees, but also for themselves. 

About the Author
Steve Bynghall

Steve Bynghall is a freelance consultant and writer based in the UK. He focuses on intranets, collaboration, social business, KM and the digital workplace. Connect with Steve Bynghall:

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