What is transformational leadership (and how to practice it)?

Clinically reviewed by Dr. Chris Mosunic, PhD, RD, MBA

Transformational leadership can improve workplace wellness — but how? Explore the benefits of transformational leadership and learn how to implement it yourself.

In today’s professional climate, most employees want more than just to make a living wage. They want to feel valued, motivated, and connected to their work and have real purpose in their day-to-day. 

If you’re a manager for a company and your job feels like nothing more than dishing out mindless tasks for team members to carry out, you may be in search of something more meaningful yourself. You may be feeling that there is untapped potential in your team and also in your leadership style, which is where transformational leadership can make a real difference. 

With transformational leadership, you can inspire your team, drive growth, and bring out the best in everyone — including yourself.

Find out how to become a transformational leader so you can build a stronger vision, empower your team to pursue it together, and achieve goals as a unit that might have once felt out of reach.

 

What is transformational leadership?

Many workplaces take a transactional approach, where the focus is on following orders, getting quick results, and offering rewards or corrections. 

But transformational leadership is different. It takes a long-term view that aims to create a positive environment, where employees feel genuinely invested in what they do. Leaders who use this approach connect with their team members, encourage creativity, and support personal growth to build an atmosphere of trust and enthusiasm.

Inspiring and motivating their teams is done by connecting with team members on a personal level, understanding their strengths and needs, and encouraging them to reach their potential. There’s no micromanaging, but instead there’s shared vision, increased motivation, and high employee engagement.

 

Key components of transformational leadership

Transformational leadership encourages people to go above and beyond by appealing to their passion and purpose. This type of leadership has four main ingredients:

Idealized influence: Transformational leaders lead by example, showing confidence, fairness, and a strong sense of ethics. They inspire trust in their team by becoming role models who stay consistent with their values and make decisions that benefit the whole team or organization.

Inspirational motivation: Clear, uplifting goals and a shared sense of purpose is what transformational leaders give their team to strive for. Their optimism and enthusiasm inspires people to reach higher by setting meaningful goals that align with the team’s values.

Intellectual stimulation: Transformational leaders encourage their team members to think critically and approach problems from different angles. They’re open to new ideas and aren’t afraid to make changes when needed — which might mean challenging the status quo and being innovative.

Individualized consideration: Leaders take time to get to know their team members, and understand that every person is different. They provide tailored support, offer mentorship, and show genuine care for each person’s growth.

 

5 benefits of transformational leadership

When leaders inspire and motivate their team, employees feel more engaged, creative, and committed to their work. This approach doesn’t just boost individual performance — it can positively impact the whole organization. Here are some of the benefits of this kind of leadership.

  1. Boosts employee engagement: Inspiring teams means employees feel more motivated in their work. This typically makes them more productive and satisfied with their jobs.

  2. Stimulates innovation: Encouraging problem-solving creates a culture where employees feel safe to share new ideas, which can lead to creative solutions and better results.

  3. Builds trust and loyalty: Acting as role models and showing genuine care means employees trust their leaders, so they’re more likely to stay committed to the organization and give their best effort.

  4. Improves team collaboration: Shared vision and open communication encourages teams to work together better and feel like they’re part of a community. 

  5. Supports personal and professional growth: Investing in team members’ development by offering opportunities for learning and growth benefits employees’ careers and provides the organization with a more skilled and capable team. Plus, it helps your employees hate their job less!

 

What are the traits of transformational leaders?

If you find yourself wondering how you can become more of a transformational leader, familiarize yourself with the following characteristics:

Visionary thinking: Transformational leaders think about the future and develop a vision that benefits everyone. They set goals that are both meaningful and attainable, guiding their teams with a clear direction.

Strong communication skills: Transformational leaders communicate their vision clearly and motivate their teams. They listen actively, give constructive feedback, and maintain open lines of communication.

Empathy and emotional intelligence: They understand their team members’ needs and concerns, connect with people on a personal level, and adapt their approach as needed.

Adaptability and resilience: Transformational leaders stay flexible and resilient in the face of challenges. They adjust to change, remain positive, and show their teams how to handle uncertainty with confidence.

Confidence and optimism: They radiate positivity and confidence because they believe in their vision and inspire others to do the same.

 

How to implement transformational leadership in your organization: 6 steps

Adopting a transformational leadership approach can make a real difference in your workplace and within your team. By focusing on the people you lead, and not just the results of your team, you’ll create a more open, honest, and healthy workplace for all. Here are a few places to start.

1. Develop a clear vision

Define a vision that aligns with your organization’s mission and values but also inspires your team to aim higher. This can give people a sense of direction and purpose, making them feel like they’re working toward something bigger than just completing their daily tasks. Think about what you want your team to achieve in the long run, and share it in a way that’s engaging and easy to understand. 

Make sure everyone knows how their roles contribute to the bigger picture. When everyone can see how their work fits into the overall goals, they’re more likely to feel motivated and connected to the mission.

💙 Take a few moments to better Understand Power and Purpose in this meditation from the Mindful Leadership Wisdom Series with Professor Megan Reitz.

2. Communicate openly and often

Set up regular opportunities to check in with your team, like one-on-one meetings, team huddles, or feedback sessions, where you encourage employees to share their thoughts, ideas, and concerns. Genuinely listen, so people feel safe and supported (here are eight tips to help). 

Remember that communication goes both ways, too. Share updates on the organization’s progress, celebrate wins, and talk about any challenges. Let your team in on the big picture to show you trust them and value their role in the organization. Plus, this may help employees stay engaged and feel like they’re part of the process.

💙 Improve your communication skills by practicing mindful listening during the short Listen Up meditation led by Chibs Okereke.

3. Encourage creativity and innovation

Value fresh ideas and encourage team members to think creatively. Allow employees to experiment with new approaches, propose changes, and suggest solutions. Let them know it’s okay to take risks and make mistakes — as long as they’re learning and growing along the way.

To do this, organize brainstorming sessions, workshops, or informal team gatherings where people can discuss their ideas freely. When employees feel empowered to think outside the box, they’re more likely to come up with solutions that can improve the team’s overall success. 

💙  Explore the importance of Cultivating a Learning Mindset in yourself and your team during this session from the Mindful Leadership Meditations series.

 

4. Show genuine interest in employee growth

Take time to understand each person’s strengths, goals, and challenges. Follow through by offering training sessions, workshops, and regular check-ins focused on their development. This genuine interest will boost morale and help employees feel more connected to the organization. 

Consider setting up mentorship programs or providing opportunities for job shadowing, which can be a great way for employees to learn new skills or take on new responsibilities. When employees feel their leader believes in them, they’re more likely to be motivated to reach their full potential.

5. Set the standard through leading by example

Your actions as a leader set the tone for your team, so model the behavior you want to see. Stay true to the values you promote, whether it’s by being ethical, working hard, or supporting others. Demonstrate empathy, show patience during challenges, and remain committed to the team’s vision. When employees see you handling situations with integrity and optimism, they’re more likely to follow your lead.

Leading by example also means owning up to mistakes and learning from them, so be open about your own growth and challenges. When you show that you’re human too—and continuously improving—your honesty can encourage your team to work on their own development without fear of judgment.

6. Prioritize and cultivate a positive work culture

A positive work culture is one where people feel valued, respected, and motivated, so create an environment that’s supportive and encouraging. (Learn more about the 8 pillars of workplace wellbeing.) Celebrate the team’s accomplishments and individual achievements, both big and small, to show appreciation for their hard work. 

Encourage teamwork by organizing team-building activities or collaborative projects, which can help strengthen relationships and create a sense of community. When people feel like they’re part of a supportive network, they’re more likely to feel connected to the business and work together well, so your organization can thrive.

 

Transformational leadership FAQs

How does transformational leadership compare to other leadership styles?

Transformational leadership emphasizes inspiration, connection, and personal growth to cultivate a shared vision and an environment of trust and innovation. They support professional growth with their employees and set a positive example. Here are 22 ways employees can strive for better professional development. They encourage creativity, ownership, and long-term development in their team, which helps build motivation and engagement. This can lead to stronger loyalty, satisfaction, and better results.

This contrasts with transactional leadership, which focuses on task management, performance rewards, and discipline. There’s often a structured framework to reward or penalize employees based on results. It’s a functional approach that may not get the very best from employees. 

What are the biggest challenges in adopting a transformational leadership style?

Adopting a transformational leadership style in traditionally hierarchical or transactional workplaces can present challenges, but it’s possible. Be adaptable, resilient, and supportive to help your teams adjust to a more open and collaborative culture in the face of these hurdles.

  • Building strong relationships with team members needs an investment in time and effort, which can be difficult in fast-paced environments. 

  • Encouraging open communication and creativity may be hard if employees are used to traditional methods and need reassurance to take risks. Here are 13 ways to have better communication in the workplace.

  • Trust-building can take time as everyone adapts to the new way of doing things and learns from their mistakes. 

  • Navigating change and staying flexible can be tough if employees seem resistant or feel overwhelmed.  

How can organizations assess the impact of transformational leadership?

Organizations can assess the impact of transformational leadership by examining employee engagement, productivity, and morale. 

  • Get employee feedback through satisfaction surveys or regular check-ins. These can offer insights into how well transformational leadership resonates. Higher engagement and job satisfaction scores often indicate that employees feel supported and motivated. 

  • Monitor performance and innovation metrics, such as team collaboration and creative problem-solving, to see the positive influence of transformational leadership. 

  • Track staff turnover rates and retention to help you see whether transformational leadership is helping to build a more loyal and committed workforce that prioritizes performance but also work-life balance

What are some examples of successful transformational leaders in history?

Nelson Mandela and Martin Luther King Jr. are iconic transformational leaders known for their ability to inspire and drive positive change. They both encouraged collective action toward common goals, demonstrating the lasting impact of transformational leadership.

Mandela led South Africa's peaceful transition from apartheid to democracy, promoting reconciliation and unity with empathy and resilience. 

King championed justice and equality through nonviolent resistance during the U.S. Civil Rights Movement, inspiring millions with his "I Have a Dream" speech. 

How does transformational leadership support employee engagement?

Transformational leadership enhances employee engagement by creating a workplace where every team member feels valued, motivated, and connected to a larger purpose. 

Leaders who genuinely care about their employees' growth and wellbeing inspire a sense of purpose, encouraging employees to exceed expectations. They promote open communication and creativity, building a positive work culture where employees feel comfortable sharing both their ideas and their concerns. This supportive environment can lead to increased engagement and satisfaction among employees, and stronger company success.


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