8
min

Transformational leadership and its place in the modern business

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Publié le
15/11/2023

Transformational leadership is a management method that propels innovation.

Today, the business world is constantly changing with the constant development of technologies.

In this context where innovation is a crucial issue, transformational leadership motivates company employees to accept changes, but also to initiate them.

This type of leadership is based on the accountability, ownership and autonomy of workers.

We invite you to discover everything there is to know about the place of transformational leadership in our modern businesses.

What is transformational leadership?

Transformational leadership is a management style where managers and business leaders encourage employees to innovate and find solutions to the problems encountered.

This leadership style is a vector of growth and success for the company.

To put into practice a culture of innovation and autonomy in the company, they set an example and encourage employees to do the same.

Transformational leadership can be a natural extension of managerial leadership.

Who are transformational leaders?

Transformational leaders are inspiring and motivating people in business. They instill in employees the desire to innovate, to develop their skills and their autonomy.

Their relationships with employees are based on trust and communication.

By adopting this type of leadership, they encourage creativity and talent development.

As with any leadership, emotional and relational skills are at the center of transformational leadership.

Discover also the others types of leadership practiced in businesses.

Characteristics of the concept of transformational leadership

In the 1970s, James V. Downton laid out the prerequisites for transformational leadership.

As early as 1985, the researcher Bernard M. Bass deepened the concept and enriched it.

He finds solutions to measure success and concludes that this leadership model encourages managers to be authentic in order to inspire other employees.

There are some strong elements that characterize transformational leadership.

- First of all, the method does not change even if the context in which it is applied may on the contrary be fluid. As a result, this leadership can be applied in all sectors of activity.

- The manager or manager encourages the motivation and development of the skills and soft skills of the employees under his responsibility.

- It sets an example both for internal processes and for company values. It highlights an innovative corporate culture that works hand in hand.

- Transformational leaders emphasize the importance of authenticity, cooperation, and open communication.

Do you want to strengthen and improve your leadership? Find our expert advice for managers and directors.

Transformational versus transactional leadership, what you need to know

Transformational leadership is diametrically opposed to transactional leadership1

Transactional leadership, as its name implies, is based on employee motivation achieved through rewards and punishments. It involves supervision and control by managers in relation to employees.

Transactional leadership is also very focused on monitoring performance.

The aim of this leadership style is not innovation, but to maintain stability, identify mistakes and find sustainable and effective procedures.

The transformational leader, on the other hand, leads employees to broaden their horizons and place their interests at the collective level.

Who is transactional leadership suitable for?

Transactional leadership is useful for some companies or public administrations.

It is in part beneficial to structures that need to maintain order and performance, but also the quality of services and products by eliminating errors and creating consistent development procedures.

To cite just a few examples, this type of leadership is applied in defense structures (army, police, etc.), but also within a large number of public institutions or even in the field of banking.

Which businesses have a particular interest in adopting transformational leadership?

Today, it can be said that all businesses have a lot to gain by adopting transformational leadership.

But some areas simply cannot ignore this type of leadership, which ones?

First of all, we can cite the digital sector in a broad way, but also that of information technology or that of e-commerce.

What are the essential qualities of a transformational leader?

The qualities that are essential to a transformational leader are multiple. Here are a few of them.

  • It must have natural authority.
  • He has the ability to influence through his example.
  • She is a charismatic person.
  • The transformational leader is humble.
  • He is open minded and has empathy.
  • He is a creative and autonomous person.

These qualities, which are essential for applying transformational leadership, are also essential for any leader, manager and also for all types of leadership.

What are the benefits of transformational leadership?

Transformational leadership has numerous benefits for modern businesses.

  • It reinforces the commitment of employees in the company through more human team management. The relationship of trust established, the sincerity and transparency inherent in this leadership allow this.
  • It makes it possible to empower employees by modifying the hierarchical relationships between managers, managers and employees. This type of leadership promotes autonomy and encourages the development of skills.
  • Transformational leadership also makes it possible to give meaning to work and increase job satisfaction.
  • It is also a source of creativity and innovation by authorizing initiatives on the part of employees.
  • Enables team spirit to be strengthened by federating around collective goals.

Finally, it contributes to better collective and individual performance.

Professional coaching to develop transformational leadership

If you are considering implementing transformational leadership or want to improve it, professional coaching is ideal.

Our certified coaches are available to support you in this process.

Our coaching for directors and managers can help you develop your transformational leadership skills. Discover all our supports.

Are you curious to know how transformational leadership can integrate and benefit your modern business?

In just 5 minutes, our VISCONTI PulsePro platform offers you the possibility of measuring the pulse of your business.

Take advantage of this opportunity to obtain tailor-made action plans that align with the key criteria of the best leaders.

Find out where you stand now with VISCONTI PulsePro.

Notes

[1] SAINT-MICHEL Sarah, WIELHORSKI Nouchka, “Leadership style, LMX and employee organizational commitment: does the gender of the leader have an impact? ”, @GRH, 2011/1 (no. 1), p. 13-38. DOI: 10.3917/grh.111.0013. URL: https://www.cairn.info/revue-agrh1-2011-1-page-13.htm

Table of contents

8
min
Leadership

Transformational leadership and its place in the modern business

Publié le
15/4/2025

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