The pandemic has brought change to nearly every facet of our lives and a shift in expectations of the companies we work with. This pivotal moment presents a challenge for companies: how to lead through this transformative time and succeed long-term. Many experts believe this requires reexamining their leadership development strategy and focusing on a transformational versus transactional leadership approach.

The term ‘transformational leadership’ has surfaced considerably in recent years, and for good reason. Study after study has shown how this leadership style promotes innovation, instills a growth mindset, increases productivity and performance, and engages employees with purpose, increasing their well-being and satisfaction.

There are four different components of transformational leadership.

• Idealized Influence: Serving as a role model to their team. When people trust and respect their leader they will often emulate his or her ideals.
• Inspirational Motivation: Clearly articulating the vision in a manner that helps people form determination and passion towards the established goals.
• Individualized Consideration: Providing support through clear and open communication. Making everyone feel comfortable to share ideas and feedback and offering recognition directly to every individual.
• Intellectual Stimulation: Promoting creativity by encouraging their team to explore new habits, processes, and perspectives. This often creates great opportunities for individuals to learn and develop.

Transformational leadership occurs when leaders broaden and elevate the interests of their employees, when they generate awareness and acceptance of the purposes and mission of the group, and when they stir their employees to look beyond their own self-interest for the good of the group. (Bass, 1990)

Focusing On The Human Factor

Transformational leaders are able to transform the people around them to respond to any uncertainty with innovation and courage. They create a vision and guide the change through inspiration and motivation, activating self-efficacy to achieve high levels of productivity. Psychologist and leadership expert, Ronald E. Riggio, explains, “Research evidence clearly shows that groups led by transformational leaders have higher levels of performance and satisfaction than groups led by other types of leaders.”

These leaders are typically passionate, engaging, trustworthy, authentic and supportive. They lead by example, inspiring commitment and loyalty. As a result, they are more likely to build positive rapport and a sense of trust with their teams.

They are not only concerned with the process but also with helping develop each individual. Rather than micromanaging, they trust and empower their teams with independence and room to develop and grow both personally and professionally.

There have even been studies[1] linking this style of leadership with higher levels of well-being in employees. Transformational leaders typically demonstrate more empathy, flexibility in meeting individual employee needs and time coaching and developing them. An essential part of this development is helping employees align their goals and values with organizational goals, bringing more meaning and purpose to their individual roles. When people feel acknowledged, valued and purposeful, they gain the motivation to get things done with more resiliency and overall satisfaction.

Walking The Talk

While transformational leaders often talk about empowering their people and encourage them to embrace an entrepreneurial spirit, many—particularly those in large, bureaucratic organizations—actually struggle to let go of control, limiting their people’s potential to tackle problems and improve performance.

This Harvard Business Review article offers these ways to empower people using transparency, clarity and accountability:

• Describe a clear purpose so employees know what they’re aiming for.
• Set out expectations for performance, behaviors, and self-care.
• Make performance data transparent to everyone.
• Give people the tools they need to do their work.
• Invest in their development and upskilling — in particular, decision making, new technologies, and creativity.
• Give them genuine autonomy to make decisions.
• Listen to — and act on — their suggestions.

It is important to note that not every space is right for transformational leadership. There are some things that require more procedures, structure, and consistency. However, when used appropriately, transformational leaders can foster an ethical work environment, putting an emphasis on authenticity and cooperation. The result is an empowered and engaged workforce as well as healthier and happier employees.

[1] McCombs, Kate & Williams, Ethlyn. (2021). The resilient effects of transformational leadership on well-being: examining the moderating effects of anxiety during the COVID-19 crisis. Leadership & Organization Development Journal. ahead-of-print. 10.1108/LODJ-02-2021-0092.