
Transformational vs. Transactional Leadership
Shifting your leadership mindset
By: Ayla Vejdani MA, ACC and Yashar Khosroshahi ND (inactive), ACC
Nothing shifts unless you shift.
– MINDSHIFT LEADERSHIP
Leaders come to us every day with a vision of a dynamic team that communicates effectively, creates authentically, and impacts the world with integrity.
We love it. We are here for it. That’s why we do what we do. But the first thing we say is: the shift starts with you.
The shift starts with reframing your leadership mindset from a transactional model to a transformational one.
What does this mean?
It is wonderful when the people believe in their leader:
but it is more wonderful when the leader believes in the people.
– Author Unknown
Most of our leadership roles and workplaces function on a transactional model. Which means: I do this, so I get this. The focus is on give and take. Implicitly or explicitly, these relationships are based on a sense of duty to the leader in exchange for some kind of reward (monetary gain, praise, promotion, etc.). This set up means team members are preoccupied by the fear of looking bad and losing status, and so they make choices to avoid negative outcomes. Their motivation to do well is tied to how the leader will respond. The focus is on action and reaction, instead of the bigger picture and greater impact.
Transformational leadership shifts the focus to inclusion and capacity building. Team members are partners. Leaders work in tandem with teams to co-create the intended impact. Solutions are guided through inspiration, curiosity, and purpose. This theory understands that if you want sustainable change and positive outcomes you have to integrate a new mindset. It is understood that investing in your employees’ personal growth means that they invest in your bottom line. By reawakening their passion and purpose, you optimize their fulfilment and impact. How employees feel about their workplace will affect how they perform at their job. Increased engagement leads to better innovation, and a purpose-driven workspace cultivates better mental and physical health. Leaders are the catalyst for this transformation.
Transformational Leadership Theory
Transformational Leadership is a theory of leadership that integrates four key elements.
- The leader is seen as and acts like a role model. The leader’s top priority is to walk their talk. No one wants a hypocrite at the helm.
- The leader cultivates their ability to inspire confidence, motivation, and a sense of purpose within the team. It is imperative for the leader to create meaning in both the work that is being completed and in the relationship of the people doing the work.
- The leader values creativity and autonomy, and involves the team in the decision-making process. A safer space is created to respectively share diverse ideas, which in turn cultivates an environment for deeper thinking and innovation.
- The leader recognizes what motivates each individual. The leader takes the time to understand each team member to be able to individualize her style of communication to match the desired outcome for each member. This unique touch has the ability to strengthen, unify and evolve the team.
For companies that are serious about impact and evolution, these are non-negotiables. And these are the leaders we work with.
Why leadership?
Leadership is a mindset, not a job title. Leadership is about self-awareness, vulnerability, trust, and then influence. The research demonstrates that poor management is the top destroyer of growth, employee satisfaction, and mental health. Leaders have the power to shift how we work and impact the world.
Our programs are founded on the pillars of self-awareness and personal accountability. Our tools focus on integration. That means results that evolve with you. Our job is to empower Your Best Leader so you can be the leader you are meant to be, and help your team thrive.
Let’s lead together!
The shift starts with you.
Are you ready?