Companies rely on transformational leadership to bring about change in the organization.  The common notes among transformational leaders are high energy, passion and enthusiasm.  

Mostly, you will find transformational leaders taking charge of setting new business strategies or goals. Like democratic leaders, they also attract loyal followers.  

Importance of transformational leadership in inspiring positive changes 

 The transformational leadership style is best suited to introducing new changes in the organization. They can manage changes better than other leaders.  

For example, let’s discuss how Jeff Bezos succeeded as a transformative leader. He had a prolific vision of serving customers what they wanted the most. He also excelled in strategy making.  

In the same vein, he split the workforce into small groups. Moreover, he wanted the teams to compete in a friendly manner to achieve the goals he set.  

That’s the foundation of the transformational leadership style. A transformational leader can make people believe in his notion and ways of working.  

Jeff Bezos succeeded in doing just that.  

Key Components of Transformational Leadership 

The transformational leadership style is marked by relentless strategic efforts to achieve success, based on a viewpoint.  

Energetic, enthusiastic, and passionate leaders 

What is transformational leadership?  

It is a composite epiphany of energy, enthusiasm and passion, pulped into an effective business strategy.  

That’s why transformative leaders are the most visionary of all.  

Focus on helping every member of the group succeed 

Transformational leaders are not only strategy setters. They also intend to help their associates work out an action plan out of their strategy.  

In other words, transformation leadership is ideal for change management. You may use this leadership strategy to realize your unique vision, as well.  

For example, Satya Nadella was an emphatic transformational leader. He set forth visionary business strategies amidst stiff competition. At the same time, he fostered his growth mindset in his team.  

He even encouraged each one in the team to take risks and improve their abilities.  

Involvement in the process and group members’ success 

There are more chances for a gullible employee to improve, under a transformational leader, than anyone.  They provide constant support and guidance. Meanwhile, they ensure that the employees perform well and improve their abilities.  

Traits of Successful Transformational Leaders 

Success stories of transformational Leaders make us curious to know the skills and abilities they have. In this section, the main qualities of successful transformational leaders are discussed.  

1. Practice self-awareness 

Reflection is the prime characteristic of a transformational leader. It helps them understand who they are.  

Experts say that leaders must be sure about their strategies. They must realize how they can contribute to the company in depth.  

That’s how they can blend their personal visions with a growth strategy that suits the company.  

 Personal growth, reflection, and goal setting 

All successful leaders of the transformational leadership style follow a clinical plan for personal growth.  

They always challenge their abilities to go that extra mile to help the company.  

Meanwhile, their reflection is also instrumental in understanding the best possible strategies for their company.  

The key to growth and reflection is advanced goal setting.  

Let’s take the example of Henry Ford. His vision was leveraging the potential of frontline workforce. He intended to boost their motivation with a much higher salary than industrial average. 

In 1914, he offered $5 daily salary to production workers. As a result, the efficiency level of Ford production lines grew leaps and bounds.  

Continuous learning and improvement 

To work in accordance with their shared vision, employees need new skills and competencies. So, transformational leaders inspire the whole team to learn new skills. They also align their growth with objective aims.  

2. Remain open-minded 

The transformational leadership style cannot work out if leaders are narrow minded. To avoid that, successful transformational leaders- 

•   Gather feedback and ideas from various sources 

•   Avoid jumping to conclusions 

3. Be adaptable and innovative 

The business dynamics are changing in most industrial sectors. But only skilled transformational leaders can find growth opportunity in every change.  

Understand changing business dynamics 

What is a transformational leader?  

They are keen opportunity seekers, who can detect customer pain points, before others.  

That’s why they can generate leads out of unique business dynamics.  

Find innovative ways to stay ahead of the curve 

Transformational leaders give a competitive edge to their organizations.  

They stay updated about what’s going on in the industry. Let’s take the example of Anjali Sud’s Vimeo.  

She wasn’t afraid to take on content giant YouTube. She only had to add some customizing features that rivals couldn’t fathom then.  

In a jiffy, Vimeo became one of the most streamed platforms.  

4. Be proactive 

Transformational leadership styles are not complete without proactive initiatives. In the face of odds, they can- 

•   Make bold decisions and set the tone for others 

•   Drive change rather than waiting for it 

5. Lead with humility 

The transformational leadership style is marked by admittance, too. They are quick to detect their learning gaps. They will keep their ego in check. They won’t hesitate to take opinions from experienced team members, too.  

Moreover, transformational leaders always keep their fellows’ interests ahead of them. That’s why they have their unfaltering trust.   

Effects of Transformational Leadership 

Most transformational leaders achieved remarkable feats in their career lifetime. Let’s discuss how they helped their companies to grow, in depth.   

Inspiring extraordinary results and leadership qualities in group members 

The transformative leadership style has the potential to streamline employees’ efforts. They lay a foundation to sync people’s efforts into a culminated output.  

By doing so, they also inspire extraordinary results for their organizations.  

A company led by the transformative leadership style, expects-  

• Better performance and job satisfaction and  

• Higher levels of well-being and sense of empowerment among employees 

How to Become a More Transformational Leader 

Continuous self-development is the key to becoming a better Transformational Leader. You can’t cut a slack there. There are, however, some essential steps to follow-  

• Develop communication skills, resolve conflicts, and recognize employee needs 

• Create a positive future vision and inspire others to buy into it 

• Be genuine, passionate, supportive, and trustworthy 

Transformational Leadership vs. Transactional Leadership 

Many modern business leaders combine unique leadership styles for better growth of their companies. That’s often the case with transformational and transactional leadership styles.  

Contrasting transactional leadership with transformational leadership 

These are two broadly different leadership approaches. While the styles don’t sync, leaders frequently try and do so.  

Transactional leadership is more popular in a bureaucratic or top-down workplace setting. 

Under transactional leaders, employees meet their goals in exchange for accomplishing new feats or getting rewarded.  

Transformational leaders have a different ideology. But they often walk in the shoes of transactional leaders also.  

It helps them to maneuver the workforce to streamline their performance. And it’s an important step to realize the leaders’ vision.  

Transactional approach focuses on rewards and punishments for motivation 

At the end of the day, transactional leadership is categorically much apart.  

Transactional leaders believe that external factors like rewards and punishments can regulate employee performance only.  

People like Bill Gates used both these leadership styles in tandem.  

He closely monitored the growth and scalability of employees to ensure that his vision for Microsoft was nurtured properly. He used the system of rewards and penalties to motivate employees.  

At the same time, he had abundant qualities of transformational leaders as well. He had a notable vision. He always strived to sync employees with his vision.  

Besides, he empathized with his employees too.  

Transformational approach emphasizes communication, inspiration, and positive reinforcement 

Typical transformational leaders have some characteristic qualities. They keep in touch with their employees. They also inspire their team to achieve greater goals.  

Wrapping up………… 

Transformational leadership style can be most effective, depending on the context. Certainly, it won’t work under all circumstances. But it is one of the most elevated leadership styles. Alongside their shared vision, transformational leaders also have a collaborative attitude.  

They can be the backbone to stage a change project or guide the company with a new vision.