Harvard Business Review analyzed companies on the S&P and Fortune Global 500 list to discover the best examples of transformative leadership. These companies were looking for “new products, services and business models; Repositioning of the core business; and financial performance. What can you do to become a more transformative leader? Leadership experts emphasize that a strong and positive vision of the future plays a crucial role. Not only is it important to believe in this vision yourself, but you also need to inspire others to join your vision. Transformational leaders also encourage actions that help the team and the company achieve organizational goals and their vision for success by motivating employees through their own interest. This is developed by involving employees in the decision-making process, resulting in greater agreement on agreed objectives. For example, a manager and employee may agree that the response time to customer service requests should be 10% shorter to ensure greater customer satisfaction. But instead of simply following a management decree, the employee understands that achieving this goal is a sign of accomplishment for him and better for the company. While the concept of transformative leadership can be applied to any industry – including healthcare, education, and government agencies – it is becoming increasingly important in IT as companies embrace digital transformation.
Adapting to rapidly changing technologies requires innovation and strong leadership to stay ahead of the curve and stay competitive. Studies have shown that while transformative leadership styles are associated with positive outcomes, laissez-faire leadership is associated with negative outcomes, particularly in terms of follower satisfaction with leaders and leadership effectiveness.  Other studies comparing the leadership styles of men and women have also shown that women leaders tend to be more transformative in their leadership styles, while laissez-faire leadership is more common among male leaders.  Inspirational motivation describes leaders who are motivating and willing to commit to a vision. They encourage team members to commit to this vision by increasing team spirit, fostering community and a sense of purpose. The characteristics of the followers, combined with their perception of the leader and their own situation, seemed to moderate the link between transformative leadership and subordinates` willingness to take responsibility and be good organizational citizens. For example, if subordinates in a task force perceive their leader as a prototype for them, transformative leadership would have less impact on their willingness to engage in organizational citizen behavior. When subordinates are goal-oriented and have a traditional view of organizational hierarchy, they tend to be less affected by transformational leadership. Motivated employees need fewer transformative leaders to inspire them to act, while “traditionalists” tend to see positive organizational citizenship as something expected given their role as followers – not something they need to be “inspired” to do. Transformational leadership is a leadership style that can inspire positive change in those who follow. Transformational leaders are typically energetic, enthusiastic, and passionate. These leaders are not only concerned and involved in the process, but also focus on the success of each member of the group.
The researchers found that this leadership style can have a positive effect on the group. Some of these effects include: In terms of transformational leadership, the first 5 components – idealized attributes, idealized behaviors, inspirational motivation, intellectual stimulation, and individualized consideration – are considered transformative leadership behaviors. It means recognizing and appreciating each member`s motivations, wants, and needs. When leaders recognize the motivation behind the individual`s motivation, they offer tailored training opportunities. One way to measure transformational leadership is to use the Multifactor Leadership Questionnaire (MLQ), a survey that uses examples to identify various leadership characteristics and provides a foundation for leadership training. Initial development was limited because knowledge in this area was primitive and it was therefore difficult to find good examples of the questionnaire elements. The further development of the MLQ led to the current version of the survey, the MLQ5X. Here are three keys for leaders to measure employee engagement. There are many types of leadership styles. While some benefit the individual leader or deliver short-term results, transformative leadership inspires actions and habits designed to help an organization over long periods of time. This approach has gained popularity because it can be the proverbial win-win situation that helps both the leader and the organization succeed. Bass also suggested that there are four different components to transformative leadership.
In 2021, 50 percent of digital leaders said they anticipated major or radical changes in products and services, 47 percent planned to unlock new value through digital media, 43 percent were tasked with supporting innovation, and 48 percent had expectations for business transformation and digitization, according to data from the Harvey Nash Group. The two main characteristics of extroverts are belonging and agency, which relate respectively to the social and leadership aspects of their personality. Extroversion is generally considered an inspirational trait generally demonstrated in transformative leadership. Nike is one of the most famous shoe companies of the 20th century. With its slogan “Just Do It”, it is one of the most obvious examples of transformative leadership and motivation. This style is best suited to departments or organizations that need routine and structure – areas where companies want to reduce chaos or inefficiency. But this does not allow for innovation or future planning in the same way as transformative leadership. Bernard M. Bass (1985) developed the work of Burns (1978) by explaining the psychological mechanisms underlying transformational and transactional leadership. Bass introduced the term “transformer” instead of “transform.” Bass added to the original concepts of Burns (1978) to explain how transformative leadership can be measured and how it affects follower motivation and performance. The extent to which a leader is transformative is first measured in terms of influence over followers.
Followers of such a leader feel trust, admiration, loyalty and respect for the leader and are willing to work harder than expected because of the qualities of the transformative leader. These results occur because the transformative leader offers his followers something more than simply working for his own profit. They offer followers an inspiring mission and vision and give them an identity.  The leader transforms and motivates followers through their idealized influence, intellectual stimulation, and individual consideration. In addition, this leader encourages his followers to find new and unique ways to challenge the status quo and change the environment for success. Finally, unlike Burns, Bass suggested that leadership can demonstrate transformational and transactional leadership at the same time. Each of these four components is valuable to leadership and helps turn its followers into better, more productive people. When combined, these factors help transformative leaders radically change the course of their followers. Transformational leadership aims to motivate employees to create change, innovate and shape the future of organizational structure. They know that a charismatic leader is about connecting with employees and helping them feel motivated to succeed. Transformational leaders don`t micromanage – rather, they foster a culture of independence and personal responsibility on the part of employees. This transformative organizational environment allows employees to transform the culture and organization into something innovative and constantly growing.
Transformational leaders are encouraged to demonstrate their own creativity and innovation, become a role model for employees, and then inspire employees to follow in their footsteps. One of the best applications of this leadership style is in an organization that is outdated and requires serious retooling. It`s also a perfect choice for a small business that has big dreams and wants to change and adapt to get there. In both examples, the board can appoint a transformative leader who will change the structure of the organization and also motivate current employees to buy in the new direction. Charisma is one of the essential elements of this quality. Charisma is important because it is how leaders can rally their followers around a common vision. Charisma is expressed primarily in their ability to actively listen to each team member and focus on the present moment. Groups led by these types of leaders tend to be both thriving and loyal. They give a lot to the team and care a lot about the group`s ability to achieve their goals. Turnover tends to be relatively low, as transformative leaders can inspire a lot of engagement among their subscribers.
Transformational leadership is a theory of leadership in which a leader works with teams or followers beyond their immediate personal interest to identify necessary changes and create a vision to guide change through influence, inspiration, and implementation of change with engaged members of a group; This change in self-interest increases the follower`s level of maturity and ideals, as well as his concern for performance.    It is an integral part of the comprehensive leadership model.