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Transformational Leadership

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‘Real change leaders are seldom found in executive suites. Though top level involvement is essential to organisational change, the real change leaders who affect how the majority of people perform come from the ranks of middle and frontline managers.' Warren Bennis

What is transformational leadership?

Transformational leadership and effectiveness schools say these leaders ‘broaden and elevate the interests of their employees, when they generate awareness and acceptance of the purposes and mission of the group and when they stir their employees to look beyond their own self-interest for the good of the group' (Bernard Bass, 1990).

Transformational leaders are active in making things happen - not by being busier, spending more money or employing more staff - but by reinventing themselves and the way they view the business.

Theory suggests these leaders have deep self-understanding to counteract outdated ways of thinking. Inappropriate controls, finance systems and excessive bureaucracy often stifle transformational leadership, while redundant management techniques compound business complexity.

In the past, visionary leaders attempted to change their organisation while ignoring their own behaviour - viewing transformation as external to themselves. Transformational leaders, on the other hand, know this uninvolved approach fails. Rather than just directing, they become involved - providing energy and help as they work with others to deliver the change.

Some transformational leadership success stories show these leaders seeking partnership and collaboration - with suppliers, customers and even competitors. They know that working across boundaries to mutual benefit creates new ways to generate sustainable growth and delivers profitable innovation.

Developing transformational leadership skills

According to Katzenbach, leaders can improve their transformational skills by developing four key areas:

  • become a linchpin linkage - forge solid connections between market realities, top leadership aspirations and staff capabilities
  • achieve 360 degree impact - influence people all around to change, whether bosses, team members or peers
  • build an expandable toolkit - develop diverse approaches that are constantly revised and improved
    use more than one leadership style - flex to suit the situation.

He proposes six transformational leadership capabilities and outlines what these leaders want from their senior executives.

Having transformational leaders only at the top is insufficient because whatever these leaders might do, they need other leaders to carry the effort through. Without this distribution, transformation results wither. In working with transformational leaders, people gain confidence and empowerment, which in turn raises aspirations to reinforce the motivational cycle.

Organisations are too complex to engineer transformation through single-point leaders and efforts through high-level leaders alone create only temporary change. Transformational leaders need to mobilise across the organisation to guide local efforts and increase performance.

Training and development for transformational leaders - whether programmes, short courses or seminars - needs to take place across the organisation and not be reserved simply for the most senior executives.

Transformational leadership success story

The USA's Aircraft Shopper Online (ASO), is the leading online listing of pre-owned aircraft for sale.

By 1995, technologists Tony Friend and Richard Cunningham, knew the web would bring fundamental change to traditional commerce. They created an online marketplace selling the most outrageous, high value, and extremely mobile assets - airplanes. The web was perfect in powering commercial transactions within the highly fragmented aircraft market, relying at that time on print media as its primary marketing vehicle.

Friend and Cunningham's vision helped them create deep and profitable relationships with aircraft dealers and brokers globally. ASO became the most comprehensive and up-to-date aircraft listing source, with more than half North America's aircraft dealers and brokers using ASO as a channel to publicise their inventory.

After several successful years, ASO began facing increased competition, complexities, and demand for technological innovations. Beginning to lose focus, the business lacked unification around a driving, centralised vision. Caught up in rapidly changing market demands, ASO's culture suffered and its equity value slumped.

Realising his business needed a dramatic shift, Friend asked Shirlaws to help him refocus and realign his organisation. Shirlaws coached ASO leaders to create functional alignment, improve communication and empower staff. With coaching the management team moved into more strategic activities and developed a new growth vision.

Friend's transformational leadership has resulted in ASO's advanced growth and complete energy turnaround. Through genuine revitalisation, ASO has re-established itself as a true industry leader.

Transformational leaders change themselves as well as their organisations. Being actively involved in the change, they guide and support people as well as give direction.

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