In a truly transformational leadership style, Mary Parker Follett once said, “The most successful leader of all is the one who sees another picture not yet actualized. [They] see the things which are not yet there… Above all, [they] should make [their] co-workers see that it is not [their] purpose which is to be achieved, but a common purpose, born of the desires and the activities of the group.”

In this article, we’ll discuss what transformational leadership is, how it works, and its benefits.

What Is Transformational Leadership? 

While transactional leadership uses a reward-based motivation system to get team members to meet their goals, the concept of transformational leadership is centered around a belief that team members can reach their full potential by being trusted and free to learn and grow on their own. 

Some of the most popular examples of transformational leaders are:

• Oprah Winfrey
• Condoleezza Rice
• Jeff Bezos
• Bill Gates
• Henry Ford 
• Steve Jobs
• Reed Hastings 

Components Of Transformational Leadership 

The components of transformational leadership are divided into four categories called the Four I’s: Intellectual stimulation, individualized consideration, inspirational motivation, and idealized influence. 

Intellectual stimulation

Intellectual stimulation requites a leader to foster a work environment that prioritizes creativity and innovation. This could include activities that open up opportunities for growth and new ideas. It may also mean stepping aside to allow your team members to learn in their own way. 

Individualized consideration

Another important approach to this effective leadership style is individualized consideration. This concept refers to leaders being genuinely concerned and receptive to their team member’s needs and feelings. Some examples would include one-on-one mentoring and personalized interactions with each staff member. 

Inspirational motivation

Do you exude confidence and purpose when you lead? If so, you already have the key ingredients to inspirationally motivate your team as a transformational leader.

A 2020 study said reported that inspirational “motivation is highly influenced by… transformational leadership, as the transformational leader guides and supports effectively, self-motivation to be an effective and beneficial part of an organization increases as well.”

Idealized influence

To be an idealized influence in transformation leadership, the leader must be the role model worth following. This means you’re the ideal representation of what your team members hope to be or can learn from to succeed in their positions. This often also means you’re well-respected, trusted, and held to a high standard. 

Traits Successful Transformational Leaders Have In Common 

Good transformational leaders practice self-awareness

Self-awareness is important to this type of leadership because you can’t develop influential skills such as empathy, teamwork, and self-control if you aren’t aware of yourself. You must understand your own thoughts, behaviors, and emotions to exude the leadership role of what other associates should look up to. Otherwise, you may risk saying one thing while doing another without thinking about it. 

They remain open-minded

Transformational leaders inspire their team to hone their skills and act on their creativity. To do this effectively, you must remain open-minded to every individual’s creative process and in tune with their specific needs. For instance, one person may come up with the best ideas via group brainstorming sessions, while another may prefer to make a list before collaborating with co-workers. Consider both as you look to engage and empower your team members.

They are adaptable and innovative

Transformational leaders must be quick to adapt to new situations and have a knack for innovation. The work environment is always evolving with new ideas, strategies, and approaches. This type of leader encourages employees to be open to these new innovative concepts and is flexible enough to learn them as well. 

They make proactive decisions and bold choices

These leaders are also proactive and bold when making decisions. This goes hand in hand with being innovative, since the concept is to think outside the box and disrupt existing norms. Backed by knowledge and confidence, a transformational leader can inspire everyone toward a common vision with their charisma and conviction. 

They lead with humility

Another common trait is leading with humility. Being humble allows these leaders to listen and learn from team members to enable them to grow as a professional. The key here is to accept that you don’t always have the right answer, but others may. 

How to Become a Transformational Leader? 

Create an inspiring vision of the future

Start by taking a step back to consider what inspirational vision you have in mind for the future of your company or team. Go a step further and make it a unifying force among the whole team, with achievable actions by each individual contributor. Then, you’ll want to take that vision and prepare yourself to communicate it clearly with your team. 

Motivate people to buy into and deliver the vision

To motivate people to buy into and deliver your vision, you must communicate it well enough that other team members internalize your vision and accept it as their own. This will equip them with a sense of purpose and influence them to view the goal as something they want to achieve on their own accord. It includes setting high expectations and standards for how you would like them to reach your vision or goals. 

Manage the delivery of the vision

Using a combination of management skills, you’ll need to communicate each member’s roles and responsibilities clearly. A clear and well-calculated plan of action will inspire your team to support your vision and do their part. Consider personalizing these commitments to each person and mentoring those who need your help in the process.

Build ever-stronger, trust-based relationships with your people

Another important step is establishing a strong and trusting relationship with your people. This step will take you back to the Four I’s (intellectual stimulation, individualized consideration, inspirational motivation, and idealized influence). This means you’re staying in tune with emotions and needs, fostering a positive and creative work environment, leading by example, and commanding with confidence. 

Know your values

Knowing your values will allow you to lead with more purpose. This will inspire your team to follow suit, motivated by your confidence and consistency.  It will also help you build relationships with others who share similar values.

Athena member Meg Crofton shares an exercise to define your guiding principles. When she was evaluating if it was time to join a board, and specifically, which board would be the right fit, it all started with defining her “why”.  

She shares using a list of criteria, “I began my board search with a basic list of criteria that has developed over the years. Today I have 14 characteristics I use to evaluate whether I think a board may be the right fit.”

The important thing is that you take the time to think about what you value and what is important to you. Once you have a clear understanding of your values, you can begin to look for boards or companies that align with them. 

Pros And Cons Of Transformational Leadership

Pros

• United in a common cause
• Reduces turnover costs
• Creates and manages change
• Keeps the company open and ethical
• Promotes morale through better communication
• Gives employees a lot of freedom

Cons

• It may be too big-picture
• Can lead to employee burnout
• Can be risky and disruptive
• Requires a continuous feedback loop
• Leaders lose power if people disagree with them

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