Applying Transformational Leadership as an Entrepreneur

Transformational leadership was first introduced in the late 1970s. Political scientist James McGregor Burns is credited with coining the term in 1978. Since then, transformational leadership (TL) has proven itself to be more than a theory. Many industry observers say it has transformed companies and even whole segments of the industry.

In a nutshell, transformational leadership is a style of leadership that focuses on inspiring employees to be and do their best. It seeks to do a job for more than a paycheck. That requires giving employees a reason to believe in the mission of the company.

More importantly, it seeks to help them come to the realization that their individual roles are important and valued. It binds the mission of the company to the personal goals of the individual.

Transformational leadership gives employees the idea that their own success is meaningful and that it is inextricably bound to the larger mission of the entire team/firm. This, in turn, engenders a feeling of belonging and of being part of a group. Everyone supports one another. The concept of “getting ahead to win” and “outperforming the other guy” for a promotion is de-emphasized.

The company leader must understand that his or her employees crave “meaningful work.” They also want to believe that they are part of something that is bigger than themselves — while they still retain their own sense of special individuality. In short, transformational leadership works toward a win-win situation that binds company success with the career advancement of individual employees.

James McGregor Burns outlined four core action elements of transformational leadership. They are:

Providing employees with intellectual stimulation

When thinking about transformational leadership, it is important to consider how they help provide employees with intellectual stimulation. Transformational leaders will prioritize providing stimulation for their employees, especially when it comes to building their professional development efforts. They will also actively encourage employees to bring new ideas on how to continue growing in their role.

Nurturing inspirational motivation

It can be hard to continue motivating employees throughout one’s workplace. Motivating employees is something that transformational leaders embrace in their own roles. They not only help nurture inspirational motivation, but they show others how to do it through their own actions. Transformational leaders will understand their own role in encouraging motivation and are always looking for new ways to help employees grow.

Creating idealized influence

For many young and upcoming professionals, having someone to look up to can be a huge help for their own professional development. Transformational leaders should understand their role as a mentor and lead by the example they want to set. Doing this can help other professionals grow in their own careers and gain confidence in what they do.

Giving individualized consideration

Working as a professional can be both exciting and challenging, especially when first starting out. This is what makes individualized consideration so important for transformational leaders. To help ensure that your employees feel seen and heard, make sure to keep communication open. This can help make employees feel more comfortable about approaching a leader with any questions or concerns.

While these guidelines provide a roadmap, it remains incumbent upon leaders to embody the qualities of an inspirational leader. One way to develop that is to study famous examples of great leaders, such as Nelson Mandela, Mary Barra of General Motors, or Steve Jobs, the creator of Apple. Easier said than done, yes, but far from impossible.

This article is a brief introduction to transformational leadership. Delving in deeper is the beginning of your own inspirational journey and a step toward greater success.