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Leadership has always been a fascinating mystery for all. While some express it as an inherent quality or trait, others believe good leadership results from regular practice. No matter what people say or think, leadership can influence people’s minds, guide them toward a vision, and help them achieve their purpose or goal in life.

As we explore leadership in bits and pieces, there is no denying that multiple leadership theories, styles, and practices govern the present landscape. However, one leadership style has stood out due to its profound impact on individuals, organizations, and teams. We are talking about transformational leadership that has stood the test of changing times and business scenarios.

This leadership style goes beyond mere management, focusing on igniting positive changes within individuals and fostering a culture of excellence, innovation, and inspiration. It guides team members and colleagues in achieving greatness by encouraging them to stick with your mission and vision for the company.

The Evolution and Making of Transformational Leadership

Transformational leadership has its roots in the works of James MacGregor Burns, who introduced the concept in 1978 through his revolutionary Transformational Leadership Theory. This leadership style centers around leaders’ ability to inspire and motivate their followers, guiding them towards a collective vision. Bernard M. Bass further evolved the concept of transformational leadership in his book, Leadership and Performance Beyond Expectations in 1985.

The primary elements of the transformational leadership style include influence, inspirational encouragement, intellectual stimulation, and individualized consideration.

Charisma enables leaders to build strong connections and influence their teams. Inspirational motivation involves setting ambitious goals and creating a compelling vision that resonates with the team’s values. Intellectual stimulation encourages creative thinking and problem-solving among team members. Individualized consideration entails recognizing and addressing the unique needs of each team member.

Transformational VS. Transactional Leadership: A Correlation

Transformational and transactional leadership are often compared due to their contrasting approaches. Transactional leadership is based on a more traditional and transactional exchange, where rewards and punishments drive employee performance. In contrast, transformational leadership fosters intrinsic motivation by appealing to employees’ higher ideals and emotions.

Transformational leadership emphasizes elevating team members beyond their expectations, while transactional leaders prioritize maintaining a status quo through structured incentives. The former encourages proactive behavior and innovative thinking, while the latter ensures adherence to established procedures.

Impact of a Transformational Leader in an Organization

Research has consistently shown that transformational leadership remarkably impacts employee excellence, innovation, and inspiration. A study by Bass and Riggio found that transformational leadership positively influences job performance, creativity, and overall job satisfaction. Employees led by transformational leaders are more likely to take the initiative, exhibit higher levels of commitment, and engage in continuous learning.

Furthermore, a Gallup study revealed that teams led by transformational leaders experience lower turnover rates and increased employee engagement. This engagement results from the leader’s ability to tap into individual strengths and provide a sense of purpose. This empowerment boosts morale and fuels a culture of innovation, where employees feel comfortable sharing ideas and taking calculated risks. Some people who utilized transformational leadership styles to exceed the expectations of their team members, colleagues, or followers for a shared vision are Martin Luther King Jr., Thomas Edison, Steve Jobs, Mahatma Gandhi, and much more.

7 Qualities of a Great Transformational Leader

Becoming a transformational leader requires cultivating specific qualities that resonate with team members and facilitating improvement by pushing their expectations further for accomplishing a shared organizational vision. Some of these extraordinary leadership traits essential for making a great transformational leader are listed below.

1. Exemplary Visionary Thinking – Transformational leaders possess a clear and inspiring vision. A study in the Journal of Applied Psychology shows that leaders communicating a compelling vision increase team performance by 15%. Further, people love to follow a leader who can guide them with their extraordinary vision, thinking, or mindset.

2. Sound Emotional Intelligence – A study by the Center for Creative Leadership showed that leaders with high emotional intelligence are likely to foster trust and collaboration within their teams. Transformational leadership equips leaders to deal with unexpected situations at the workplace, understand the feelings and emotions of others, and build effective relationships to reduce team stress, conflicts, and burnout.

3. Encourages Active Listening – Research from Harvard Business Review indicates that active listening leads to better problem-solving and higher team morale. A transformational leader should be more receptive to the ideas, opinions, and thoughts of the people around to inculcate a culture of change, innovation, and collaboration.

4. Supportive and Empathetic Behavior – Empathetic leaders create a supportive environment. People with a transformational leadership style should be ready to hear their team members’ grievances and concerns to show compassion, sympathy, and empathy.

5. Promotes Continuous Learning – Leaders who prioritize learning inspire their teams to do the same. A report by the Brandon Hall Group revealed that organizations with strong learning cultures are 30-50% more likely to outperform their peers. A good leader should understand the gaps in the skills and abilities of their team members to encourage them for personal development and growth.

6. Optimizes Adaptability – In a rapidly changing world, adaptability is crucial. A survey conducted by Deloitte found that 90% of global professionals view adaptability as a critical skill for leadership success.

Transformational leadership teaches leaders to respond and adapt quickly based on unexpected situations at the workplace to implement desired organizational changes and finish work-related deadlines.

7. Bold and Courageous Decision-Making – Leaders who are daring enough to take risks and don’t shy away from experimenting are the ones who can achieve unprecedented corporate success. Transformational leaders believe in their vision and guide their team members or followers in accomplishing short-term and long-term business goals.


Leadership Development Company transcends conventional management, focusing on elevating individuals and driving organizational excellence, innovation, and inspiration. Its history, primary elements, and comparison with transactional leadership showcase its distinctive approach.

Also, the transformational leadership style is practical and necessary in today’s dynamic business environment. By embracing these qualities and understanding their profound impact, leaders can pave the way for a brighter future where excellence, innovation, and inspiration flourish.