Transformational leadership: 4 ways in which it impacts organizational growth


Over the years, the top transformational leaders across the globe have completely revolutionized industries, earning titles of trailblazers and pioneers. When thinking about famous transformational leaders like Steve Jobs, Ratan Tata, or even Elon Musk, the question isn’t about their persona but their legacy. It is their unique ability to see beyond what meets the eye, both in their work and workforce. For these individuals, being an empathetic leader is just one aspect of their arsenal, as is the case with all empowering leaders of their ilk.

Transformational leadership

While many may believe that famous transformational leaders in India were born to play the part, the truth is quite the opposite. Transformational leadership is a choice that modern leaders can make if they wish to embody the principles laid down by the greats before them. In fact, one of the top industry leaders harnessing the power of transformational leadership is Sanjiv Bajaj, Chairman and Managing Director of Bajaj Finserv.

“Finding the right people with a hunger for entrepreneurship and empowering them to think like owners. This has been a key differentiator in my journey, and we have tried to replicate this for our people. We think like owners, but we execute with the rigor of a multinational. Senior leaders that join us from other firms always point out this,” he says. The message here is that gains can be enjoyed by empowering and enabling talent – at the individual, company, and national levels.

Read more about these and how a transformational leader affects organizational success.

1. Defines clear organizational vision and encourages employees to action

For a transformational leader, being the only one driven to achieve success isn’t enough. A key part of their expertise is the ability to garner mass engagement; this is where their ability to inspire comes into play. Besides having a clear vision, these leaders are masters of communicating it effectively. They are authoritative, optimistic, committed, and motivational at every step. While many recognize it as inspirational motivation, there’s no doubting that this ability alone can instill a much-needed sense of purpose in the workforce.

2. Builds a work culture that fosters innovation and creativity

Famous transformational leaders are more often than not at the helm of organizations. These are also great innovators and have thrived in a culture that supports their needs. By definition, transformation leadership proactively seeks to deliver change while inspiring and encouraging others to do the same. Otherwise known as an idealized influence, transformation leaders inspire others to perform and emulate as well. Individuals seeing their leader push the envelope are bound to follow in their footsteps. Naturally, their idealized influence extends itself to the creative limbs of the workforce too! Armed with agile policies, these leaders understand that operating at the bleeding edge means offering the necessary freedom to innovate.

3. Strengthens work relationships to build harmony in the workplace

One thing that top transformational leaders have in common is that they value their team members and are often the top empathetic leaders. These leaders thrive through individualized consideration, a unique skill that ensures targeted support is offered to keep objectives aligned. These leaders go beyond recognizing needs and delivering on them; they also incentivize efficiently to ensure fulfillment. What may seem simple in concept profoundly impacts success as it near-guarantees harmony, efficiency, and dedication in the workplace.

4. Reduces employee turnover and creates lasting success

While it is true that these leaders emanate trust, loyalty, and transparency, it gives employees more reasons to stay. For most, this boils down to intellectual stimulation, and transformational leadership provides that in abundance. Their work culture is one of inclusion and autonomy. Employees feel valued because they are part of both decision-making and execution. This inherently boosts retention as employees see themselves as part of the bigger picture, if not directly contributing to it.

Considering the holistic influence of empowering leaders, there is no denying the real-world impact of this leadership style. Top transformation leaders have proven that this path is worth the while, especially now when entire industrial landscapes see the transformation every year. The secret here is to invest in the intangible to promote long-lasting success, and transformational leadership does this naturally through inspirational motivation, employee job satisfaction, and intellectual stimulation.


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