Changing for success as a leadership and business change through innovation and evolution of ability as a crumpled paper transforming into a boat then a swan and a flying bird as a metaphor.

The key principles of transformational leadership in the workplace

There are many different ways to lead in today’s modern work environment. One theory which has gained traction since its inception in the 1970s, first by sociologist James V. Downton, then built on by American leadership expert James MacGregor Burns and business researcher Bernard M. Bass is the transformational leadership theory.

In this blog, we’ll outline what the concept of transformational leadership means, the key characteristics that are displayed in these types of leaders, and how transformational leadership can positively impact organisational performance.

What does transformational leadership mean?

The transformational leadership style is a type of leadership model which encourages teams to achieve success together through a joint sense of purpose, raising their morale and confidence to work towards a common purpose.

Transformational leaders are role models who are highly respected by the teams they lead. When this leadership model is applied correctly, leaders are able to inspire positive change and transform struggling teams into productive and dynamic groups of individuals with high job satisfaction.

There are four ‘I’s’ that make up the components of transformational leadership. These are:

  • Intellectual stimulation: driving innovation and creativity with goals and challenges
  • Individualised consideration: providing mentorship and offering empathy and purpose by understanding individual strengths
  • Idealised influence: is an enthusiastic role model who embodies team and organisational values
  • Inspirational motivation: has a clear vision and is optimistic in promoting inclusion and productivity.

Key characteristics of transformational leadership

There are many characteristics that form how transformational leaders manage their teams. These leadership skills aren’t necessarily innate, and can be learnt and developed by leaders who choose to adopt this leadership model.

Open to new ideas

Transformational leaders are always open to new ideas from their teams. They are focused on innovation and how they can do things differently to constantly improve, and welcome open dialogue and innovative thinking from their teams.

Transformation and innovation always comes with risks. A good transformational leader is able to assess the weight of any risky decisions and either have the confidence to move forward and try a new idea or adapt and try a different approach if the risk is too great.

Inspires confidence

One of the main characteristics of a transformational leader is that they have the ability to inspire confidence in their team. They operate from a place of empathy and support, encouraging individuals to step out of their comfort zones and creating a positive business environment where employee well-being is prioritised.

These leaders are good communicators and work alongside their teams and their peers and management to shift people’s views on how things should work. They seek to understand people’s mindsets to be able to convince them ofnew ways of working, and have the confidence of the business behind them.

Promotes active listening

Transformational leaders develop their active listening skills and employ them when communicating with their team. By being present and making their employees feel heard and listened to, they create a culture where those employees feel able to share ideas and their thoughts without fear.

Meeting people with active listening and empathy means people feel seen, understood and respected, making them more likely to put forward suggestions and be an active participant. 

Accepts responsibility

Being a good role model is a key characteristic of transformational leaders, and good role models always accept responsibility for all outcomes of their team, whether they’re positive or negative.

By not pushing the blame onto their employees and taking the fall when an idea fails, transformational leaders take the responsibility for the impact of decisions they’ve green lit within the team.

Trusts team

Trusting team members enables individuals to develop their ideas and share them with others.By giving their teams autonomy, these effective leaders give employees the space and courage to feel like they have the trust of their manager to hit goals, enabling them to work at higher levels of productivity and feel confident in their decision-making and problem-solving abilities.

Encourages creativity

Innovation and creativity only happens when everyone in a team is encouraged to have new ideas. Rather than telling their teams what to do or just relying on a couple of people to have ideas, building creativity into a company culture gives everyone the opportunity to contribute.

Good teamwork happens when a team supports everyone involved, so transformational leaders set the expectation that every individual is able to think outside  the box to work towards shared goals together.

How does transformational leadership impact organisational performance?

There are many research studies which suggest that transformational leaders influence their subordinates by motivating them to achieve organisational goals. 

When done well, transformational leadership  positively impacts organisational citizenship behaviour and performance – when work duties are exceeded without any initiatives or reward system. This behaviour has a positive impact on the organisation as a whole, empowering individuals to exceed expectations. Studies have shown a link between transformational leadership and organisational citizenship behaviours such as virtue, assistance, sportsmanship, and altruism.

This kind of leadership style also has a positive effect on organisational culture, which impacts outcomes in employees such as commitment, performance, productivity, self-confidence and ethical behaviour. Transformational leaders are able to motivate people and inspire a shared vision for the future. 

Creating a company culture where the status quo is positive and supportive can lead to higher profitability for the business overall.

Develop your effective leadership skills 

Empowering teams to develop their competencies is an essential part of your professional development if you hope to progress into leadership roles.

Learn key skills in business management and leadership development with the University of York’s 100% online MSc in Innovation, Leadership and Management. Taught part-time, you will be able to fit your studies around your current role or commitments, developing your practice and progressing your career at the same time.