What Transformational Leadership Really Means Today

three women in conference room meeting with charts displayed in the background
Organizations that want to succeed need visionaries who not only tell their team what to do but also inspire team members and bring out their very best. Businesses look for leaders who can guide others to achieve collective goals, and the most effective types are transformational leaders.

This article explores what transformational leadership style is, why it’s important in the modern workplace, and what steps you can take to develop these skills.

Defining Transformational Leadership

There are several different types of leadership. Transformational leadership is recognized for its ability to produce a diverse range of positive outcomes by focusing on the larger vision, inspiring others, and fostering personal growth. Not only does it enable organizations to achieve their objectives, but it also encourages individuals to reach their full potential.

Transformational leaders convert unproductive teams, composed of individuals, into cohesive units that deliver results. Those working under a transformational leader will feel motivated to complete their tasks, experience increased job satisfaction, reduced stress, and often perform at higher-than-expected levels.

This type of leadership isn’t just about controlling a workforce to get results, but instead empowering them to take ownership of their tasks and grow into future leaders themselves.

Key Principles of Transformational Leaders

Transformational leaders can motivate large groups to overcome challenges and achieve success that isn’t possible alone. Some of the most famous examples of transformational leaders include Martin Luther King, Jr., Abraham Lincoln, and Mahatma Gandhi. No matter if you’re a Doctor of Education or working at a retail store, you can be a transformational leader.

However, it takes more than just charisma to be a transformational leader. Individuals striving to master this type of leadership must focus on these four key principles.

  1. Idealized influence: When someone steps into a leadership position, others look to them to set an example. Transformational leaders must be positive role models in all aspects of their work, from putting in extra effort to fostering a supportive company culture to making good decisions.  Keeping this behavior consistent is essential for these leaders to gain trust and respect.
  2. Inspirational motivation: Getting employees excited about doing their job is a challenge that transformational leaders gladly take on. Transformational leaders find ways to motivate teams to buy in and work together to achieve their goals. These leaders achieve this by giving individuals a sense of purpose, rather than instilling a sense of threat.
  3. Individual consideration: The ability to direct a team is essential for transformational leaders, but they also must relate to people on a personal level. When each person feels a sense of ownership and satisfaction in their work, the whole organization is more efficient. For this to happen, transactional leaders need to identify the personalities of their staff members and use different mentorship styles accordingly.
  4. Intellectual stimulation: One aspect of being a successful leader is finding the best way to accomplish tasks, especially when they are new or challenging. Transformational leaders take pride in their critical thinking and innovation when it comes to solving complex issues. This mindset encourages others to push themselves and take bold, creative approaches.

Transformational vs. Transactional Leadership

If you want to develop into a transformational leader, it’s important to understand what transactional leadership is. In many ways, transactional leadership is the opposite of transformational leadership. Transactional leadership emphasizes rewards and punishments as forms of motivation.

Here’s how the two differ:

  • Focus: A transformational approach works by inspiring individuals to take ownership of their duties and continue to grow. Transactional leadership focuses on directing team members to achieve short-term goals and maintain stability.
  • Motivation: Transformational leaders help others see the big picture and how they fit into it. Transactional leaders communicate by presenting the rewards and penalties for staff performance.
  • Outcomes: Transformational leaders build up employees to creatively engage in their work and have long-term success. Transactional leaders want compliant employees who produce efficient results.

Neither leadership type is better than the other. Each type can be effective in different situations and for various individuals.

For example, transformational leaders can be very effective in a startup, where operations change quickly and unpredictable problems arise. Conversely, employees who must do routine tasks within strict deadlines may benefit from a transactional approach.

Alt text: A man and woman dressed in professional attire high-five and smile over a desk cluttered with a computer and papers.

Benefits of Transformational Leadership in the Workplace

Leading by example and promoting integrity and purpose sets a clear tone in the workplace for other team members. A staff that takes ownership of their work and collaborates efficiently builds a positive organizational culture.

Positive company culture can increase job satisfaction and reduce turnover rates. Employees who love their job and take pride in their work are more likely to speak highly of their organization, which in turn attracts top talent.

Transformational leadership is also an effective way to keep the staff engaged and motivated. When individuals feel valued and their work is appreciated, they’re more likely to put in more effort.

While financial incentives can motivate employees, some individuals may be more inclined to merely meet the requirements for extra money and subsequently reduce their efforts. Intrinsically motivated employees continue working hard over the long term.

This approach to leadership also fosters creativity and innovation, which are integral aspects of problem-solving and remaining competitive. It also positively affects employee well-being, as they are encouraged to push themselves to adapt and experiment rather than perform monotonous, repetitive tasks.

How To Develop Transformational Leadership Skills

The idea that leaders are born is a myth. Like public speaking, negotiation, and time management, leadership is a skill. The more time and effort you dedicate to honing that skill, the better you’ll get at it.

Becoming a better leader requires maintaining consistent habits and mindsets. The best way to start this process is to learn from those who have leadership experience. Attending workshops, seminars, and training programs can help you develop the skills needed to practice leadership as advocacy. Look for mentors who can guide you and offer practical insights from their real-world experience.

Take the lessons you’ve learned and then get some experience of your own. If you’re not in a leadership position at your job, consider volunteering to take on additional responsibilities. Have a conversation with your boss and explain that you’re motivated to improve your nonprofit leadership skills and would appreciate any chances to do so.

Delving into resources like books, podcasts, and videos designed to teach leadership can supplement your experience, and many are easily accessible for free online. However, investing time and money in taking classes and joining leadership programs can significantly accelerate your progress.

City University of Seattle is a school of education and leadership with options to take courses in person or online. The CityU community offers numerous opportunities to develop lifelong skills and enhance your career earning potential.

Your Next Step Toward Leadership Growth

Becoming a transformational leader enables you to effectively inspire and guide teams in meeting business objectives. This can lead to a sense of satisfaction and open up your career to a wealth of possibilities. However, it takes time to develop into an effective transformational leader and begins with having the right foundation.

At CityU, we combine academic opportunity with leadership programs that bring out the best in our students. Find your CityU program today and learn the skills you need to succeed in the workforce and lead others.


Peter Burns
Peter Burns
Peter Burns has a master’s degree from the University of Southern California, and his work has appeared in multiple publications, including Money, The Miami Herald, The Sacramento Bee, The Kansas City Star, Alibaba, and others.

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