What is transformational leadership?

Transformational leadership
 
If you’ve ever had a manager who inspired you to push past your limits, encouraged you to think differently, and made you feel valued, you’ve likely experienced transformational leadership in action. This leadership style is not just about getting results – it’s about motivating people to achieve extraordinary outcomes while supporting their personal growth and well-being.
 
For employees and job seekers in New Zealand, understanding the transformational leadership style can help you recognise great leaders, improve your own leadership skills, and choose workplaces where you’ll thrive.
 

Defining transformational leadership style

So, what is transformational leadership? In simple terms, it’s a leadership approach where a leader encourages followers to go beyond the status quo by inspiring innovation, fostering trust, and creating a clear and compelling vision for the future.
 
Bass’s transformational leadership theory identifies four key elements:
 
  • Idealised influence: Leaders act as role models, setting high ethical standards.
     
  • Inspirational motivation: Leaders inspire followers through passion and optimism.
     
  • Intellectual stimulation: Leaders encourage critical thinking and challenge assumptions.
     
  • Individualised consideration: Leaders recognise each person’s needs and aspirations, offering tailored support.

Characteristics of transformational leaders

While every leader is different, key traits of a transformational leader often include:
 
  • Strong communication skills: They can articulate a clear vision that connects with their team.
     
  • Emotional intelligence: They listen actively, show empathy and adapt their approach accordingly.
     
  • Inspirational leadership: They energise others with optimism and commitment.
     
  • Adaptability: They embrace change instead of clinging to the status quo.
     
  • Focus on personal growth: They provide opportunities for learning and development.
     
  • Integrity and trustworthiness: They lead by example and uphold strong values.

Transactional leadership vs transformational leadership

Understanding transactional vs transformational leadership helps you see why these approaches feel so different in practice.
 

Transformational leaders focus

Motivation: Inspire followers through vision, trust, and personal growth
 
Change: Challenge the status quo and encourage innovation
 
Development: Foster personal development and positive growth
 
Approach: Long-term impact and organisational effectiveness
 

Transactional leaders focus

Motivation: Reward or discipline based on performance
 
Change: Maintain established processes
 
Development: Ensure compliance and task completion
 
Approach: Short-term results and efficiency
 
While both styles have value, relying solely on a transactional leadership approach can limit innovation. The best leaders adapt their style depending on the situation.
 

How to develop transformational leadership skills

If you want to grow into a transformational leader, it’s not just about knowing the theory – it’s about building daily habits that inspire and motivate those around you. Here’s how to start:
 
For yourself:
 
  • Invest in leadership training: Attend courses, workshops, or coaching sessions to expand your skills and stay ahead of emerging leadership trends.
     
  • Seek honest feedback: Regularly ask trusted peers, mentors, and team members for constructive insights on your leadership style.
     
  • Practise self-reflection: Review decisions and interactions to identify areas for growth.
     
  • Manage your energy: Prevent burnout by setting boundaries, delegating where possible, and maintaining a healthy work-life balance.
     
  • Strengthen organisational skills: Use planning tools, scheduling systems, and priority-setting techniques to keep daily operations running smoothly.
     
  • Balance big-picture thinking with practical action: Dedicate time for strategic planning while ensuring essential tasks and deadlines are consistently met.
     
  • Stay adaptable: Embrace change by learning from new situations, industries, and perspectives to keep your leadership relevant.
For your team:
 
  • Develop a compelling vision: Communicate your leader’s vision clearly and consistently so your team understands the bigger picture and their role in it.
     
  • Encourage critical thinking: Create space for team members to question existing processes and suggest better ways of doing things.
     
  • Focus on personal development: Offer mentoring, coaching, and training opportunities to help employees reach their full potential.
     
  • Recognise achievements: Celebrate wins, big and small, to keep motivation high.
     
  • Be approachable: Maintain open communication so employees can share ideas or concerns without hesitation.

Career benefits for transformational leaders

Leading with vision and inspiration doesn’t just elevate teams, it can accelerate a leader’s own success. From expanding influence to unlocking new opportunities, transformational leadership offers many career advantages.
 
  • Career advancement: Proven ability to motivate teams and deliver results often leads to promotions and leadership offers.
     
  • Broader influence: Inspiring others and shaping organisational culture increases a leader’s impact beyond their immediate team.
     
  • Enhanced leadership skills: Regularly practising vision-setting, communication, and emotional intelligence strengthens core leadership abilities.
     
  • Greater job satisfaction: Seeing employees grow and succeed can be highly rewarding.
     
  • Resilience in changing environments: Adaptability and focus on innovation help leaders remain relevant and effective.
     
  • Stronger professional reputation: Building trust and respect often attracts valuable connections and collaborations.
If you’re ready to take the next step in your leadership journey or find a workplace led by inspiring leaders, Hays can help. Explore our latest job opportunities or speak to our recruitment experts today.
 

FAQs

What are examples of transformational leadership in action?

Transformational leadership can be found in many industries and contexts. Examples include:
 
  • A charismatic leader in a healthcare position who motivates followers to improve patient care through innovative solutions.
  • A technology manager using intellectual stimulation to encourage their team to develop new ideas for product features.
  • A retail team leader who inspires employees by sharing a clear vision for customer service excellence and recognising achievements that support this goal.
  • A senior executive engaging in transformational leadership training to build skills in motivating employees and improving relationships.
These leaders inspire others not just to meet expectations but to exceed them, often transforming workplace culture in the process.
 

What is the impact of inspirational leadership on teams?

The effects of transformational leadership on employees often include:
 
  • Higher motivation: Employees feel inspired to work towards shared goals.
     
  • Increased job satisfaction: A sense of purpose and recognition boosts morale.
     
  • Greater engagement: People are more involved and committed to their work.
     
  • Enhanced skills: Support and encouragement help employees develop professionally.
     
  • Stronger loyalty: Trust in leadership fosters long-term commitment.
     
  • More initiative: Employees are more willing to share ideas and take ownership of tasks.
     
  • Improved well-being: Positive workplace culture reduces stress and burnout.

Who is a famous example of a transformational leader?

  • Sheryl Sandberg – Former COO of Meta (Facebook), known for empowering women in leadership and advocating for workplace equality.
     
  • Barack Obama – Former US President who inspired followers with a message of hope, unity, and change, while modelling integrity and inclusive leadership.
     
  • Oprah Winfrey – Media leader who inspired millions through authenticity, empowerment, and storytelling.
     
  • Richard Branson – Founder of Virgin Group, known for empowering employees, encouraging risk-taking, and maintaining a strong sense of purpose.