Transformational Leadership Style

By Your Query Staff

Published on December 18, 2021

Do you think that there is a correlation between transformational leadership style and the success of a business? Of course, a deep bonding exists here. In a nutshell, transformational leadership styles seek to achieve significant change by building deep and long-lasting relationships with employees. It is not a new idea. Actually, it has gained popularity in recent years because of the emergence of many different coaching models.

The result is a blend of traditional management styles. In fact, it is an approach that truly values the potential of people, not just as workers, but as individuals. Here, we have initiated this article to broaden our perspectives. Through this article, we will present every aspect of this leadership style along with its characteristics and benefits. So, let's start walking towards the next phases.

What Is Transformational Leadership?

Transformational leadership is a form of leadership that emphasizes deep personal and professional transformation as the central goal. Actually, it is s a new way of leading people that asks them to engage their heart, mind, and soul. Transformational leaders are different from traditional leaders because they set transformational goals for themselves and their teams.

You know what; transformational leadership is heavily influenced by positive psychology. It involves cultivating a vision of success for others to reach as well as adopting the mindset of an explorer. Besides, this type of leadership enables leaders to harness the skills and strengths of their employees. In this way, the leaders lead them towards creating change, building capacity, and making a difference.

On the other hand, it is the leader’s ability to inspire people and take them to the next level. Here, a leader inspires others in such a way that their work is done well. Besides, they can achieve things they never thought possible. In fact, the leaders create lasting change in their organizations. It is built on the belief that leadership can lead us beyond our current paradigms.


Transformational Leadership Style

Transformational Leadership Characteristics

Transformational leadership is the act of changing the way an organization operates. It is based on a set of principles and behaviors that are proven to lead to better business results. Besides, it enhances your team’s performance. This leadership style has gained proven facts that increase productivity, employee engagement, sales growth, and company revenue.
Therefore, it is quite exigent knowing the real characteristics of this leadership formation. In this case, we have instigated this part. After that, you will have a clear thought regarding the traits of it. In the following lines, we will describe the potential characteristics of transformational leadership. Let's have a look at this phase.


•    Introducing Self-Management:

It is one of the most essential characteristics of transformational leadership. Actually, it describes a person who can make better decisions, operate with higher levels of resilience and self-awareness. In addition, self-management behaves in a way that inspires others to follow.

You know what; it is such a leadership style that takes advantage of the differences among people and their abilities. After that, it creates a cohesive and successful organization. A transformational leader has a deep understanding of how to harness individual talents. Besides, this leader builds an unwavering belief in the team's ability to achieve common goals.


•    Making Difficult Decisions:

Difficult decisions are challenging to make. They can have a huge impact on the organizations we work for and the products we develop. In fact, organizations with leaders who can make difficult decisions well outperform their counterparts. But, making difficult decisions is not just about evaluating the options available.

It also involves assessing and managing uncertainty. When you’re in a leadership role, you need to make the right decisions for your company. In transformational leadership, you will find the presence of this trait frequently.


•    Taking the Right Risk:

Now, another crucial trait has come to discuss. In fact, taking the right risk is the most influential characteristic of a transformational leader. He is the one who instills trust and breaks down barriers. Besides, he also understands that risk-taking is an essential part of their role. The ability to take risks is one of the core characteristics of a transformational leader.

However, today's businesses are characterized by an ever-increasing level of uncertainty. The forces of disruption, regulation, and technology have all but rendered long-established business models obsolete. Yet, we find that most leaders still tend to be risk-averse in the absence of good evidence.


•    Keeping Egos in Check:

Egos can be a tough nut to crack. You should store and practice leadership skills to manage egos in your workplace. You know what; the ability to control one’s own ego is crucial for effective leadership. While all leaders should be self-aware, in reality, there are few who truly can manage their egos.
As a leader, it is important to have the right people on your team. The right talent makes you stand out in the crowd and attract more business than your competitors. Leadership is about taking the ideas of others and using them to improve how you do things. However, keeping egos in check is crucial in this case.


•    Sharing Organizational Cognizance

Cognizance is the key factor to improving performance and achieving business goals. Leaders are great at helping their people to tap into the collective consciousness. They know that the purpose of consciousness is to create a sense of shared purpose. After that, it leads to greater commitment, loyalty, and enthusiasm for their mission and vision.

With the advent of technology, it has become vital for organizations to build a culture that fosters sharing and collaboration. Businesses are growing their collective consciousness through such means as social media platforms and employee training programs.


•    Acquiring Proactive Approach:


A proactive approach is one of the basic transformational leadership characteristics. In fact, this thing is a vital part of the change leadership framework. You know what; proactive approach helps to develop a collaborative leadership style that enables change and innovation. So, transformational leaders have to be proactive.

You know what; it is not a reactive approach of governance and it is not a submissive approach either. Actually, the proactive approach involves a decision to improve the process. In an organization, it operates actively rather than just reacting to problems and seeking to contain them.


Transformational Leadership Advantages and Disadvantages

Most importantly, every leadership style has some benefits and disadvantages as well. If you are a CEO or a coach, you must put yourself in someone else's shoes. In this way, you can understand their struggles, and empathize with their needs. You know what; transformational leadership is one of the most sought-after leadership qualities today. Therefore, knowing every aspect of it is essential.

Moreover, the transformational leadership style is a crucial part of business management that needs to be taken seriously. If a leader does not understand it properly, then it could end up taking the company down the wrong path. Here, this phase will take a look at the advantages and disadvantages of this leadership approach. Let’s explore those things in the next lines.


•    Low Turnover Cost:

It is not easy to become a leader, but it is the only way to drive long-term and sustainable results. But how do you measure leadership effectiveness? A great manager and leader must be able to get the best out of his or her team. In a nutshell, the low turnover cost is the key element of transformational leadership.

When the employee is loyal to the company and remains in it for a long time, it can help you save significant money. It happens in terms of recruitment costs and training. That is why; low turnover cost is a really big advantage of this leadership model.

•    Deep Engagement:

Transformational leadership engages the full person, seeking to create and inspire employees through the power of a compelling vision. You know what; full engagement of the employees is really significant in today’s fast-paced, global business operation. A transformative leader acts as a catalyst to influence and empower people in ways that are important to them.
In other words, they can transform how people think, feel, and act. In turn, they change their own organization, positively impacting it for years to come. Moreover, it can help employees gain new skills and fulfill their potential by creating a sound working zone.

•    Adaptability with Changes:

In the business world, change is inevitable. It can come in the form of new laws, regulations, and government mandates. Conversely, it can also come from individual employees However, what is changing for us and our industry is the need for leadership that creates change. Here, the leader must be adaptable to those changes.

You know what; the transformational leaders are innovative, charismatic, and passionate about their work. Besides, they can see a need for change in the organization and take charge of it. In this way, they become change agents and drive transformational change in their organizations.

•    Excellent Communication:

Communication is the key advantage of transformational leadership. Leaders need to communicate their ideas clearly and effectively to build a company or a product. They also need to be able to communicate effectively with their team members and business partners.

Transformational leaders are capable of setting the right direction for their teams and helping them to achieve their goals. In this case, they must be able to understand their team members’ strengths, weaknesses. Therefore, transformational leaders build strong communication systems within the company.


•    Influence Can Bounce Back:

Influence is an important trait in leaders. However, influence can backfire if it causes destructive behavior and brings out the worst in people. Most of us can agree that successful leadership requires a balance between being decisive and flexible. But according to our research, this balance may be tougher than we thought.

In fact, research shows that leaders who have high influence often come up with flawed strategies. Besides, they may act too impulsively, and don’t make enough use of their judgment.

•    Overlooking Reality:

Transformational leaders play a vital role in businesses and organizations. They are the ones who are able to take a risk, make changes, and ensure that their organizations succeed. However, sometimes leaders may be blinded by their own belief systems or miscalculate when assessing the impact of their decisions.

You know what; may leaders overlook the reality at some point. As a result, they miss out on important opportunities or fail to anticipate events that could cost them profits.

•    Not Always Workable:

Transformational leadership may be effective in the short term, but it is more likely to create negative consequences. In other words, people do not always agree with how transformational leaders want them to act or behave.
Moreover, this leadership style is not applicable to every kind of business organization. That is why; you should learn about transformative leadership models accurately. After that, you can implement this style in your business.

Transformational Leadership Examples

With a real-world scenario, you can boost your concept of transformational leadership.  This leadership looks at how to make an organization change its culture, and structure to be more effective. In this phase, you may take a look at some examples to understand transformational leadership more deeply and accurately.

Firstly, we can John D Rockefeller, the founder and CEO of Standard Oil. You know what; Standard Oil was the most powerful business of its time. As a CEO, Rockefeller implemented transformational leadership in this company. After that, he became America’s first billionaire and one of the world’s richest men at that time, not to mention his role in shaping America’s economy.

As a next name, we must present Reed Hastings, CEO of Netflix.  By implementing this leadership style, he has brought huge success to this company. You know what; Netflix has changed the way people consume video entertainment. Besides, it is changing the world of content consumption.


Hopefully, you have grasped the transformational leadership style completely. In fact, it is a philosophy that focuses on the individual and their contribution to the team. Likewise, this leadership style is all about getting everyone involved, embracing diversity, and building a collaborative culture.
Moreover, the transformational leader has a clear vision. Most importantly, they are aware of where they want to go and how they will get there. That is why; they can inspire their team with positive energy. Besides, these leaders can use emotional intelligence to get people excited about the goal.