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7 Ways Transformational Leadership Leads to Overall Business Success

Updated: February 26, 2022

Leadership is paramount in any organisation. After all, these are the individuals responsible for steering a business or company in the right direction. Since every business and those that make up an organisation are different, it’s no surprise that a different leadership style may be required for each one.

A type we believe to be effective in many businesses is transformational leadership— one that inspires employees to step forward and have a hand in shaping the future of their organisation.

Transformational leadership is particularly effective in this day and age when many of those making up the workforce are looking for jobs that will give them a feeling of fulfillment.

Here are seven ways that transformational leadership leads to overall business success:


1. It Promotes a Flexible Leadership Approach

One good thing about this leadership approach is that it is highly flexible. When it comes to leadership style, there isn’t one hard and fast rule being applied to all team members. Transformational leadership is a relationship-based style of administration. Therefore, the leader’s directives depend on the abilities and readiness of his subordinates.

As the old saying goes, different strokes for different folks.


2. It Can Be Adapted to Any Situation

When it comes to situational leadership, adaptability is encouraged to fit different circumstances in the workplace. Leaders can easily adapt when confronted with different situations. They can come up with practical solutions to address any problems using transformational leadership. They do the best they can do, regardless of the condition.


3. It Encourages Successful Team Collaboration

Situational leadership paves the way for successful team collaboration. Relationship-oriented leaders are able to encourage each and every member of their team to participate and have a hand in decisions, which will guarantee successful organisational undertakings. As always, teamwork is key. An effective leader can gather team members and get them to contribute, however, they can.


4. It Maximizes Work Productivity

Transformational leadership is a viable solution for work productivity. As a leader knows how to deal with each and every team member, he also has a deeper understanding of their strengths and weaknesses. He is able to address team members’ areas of opportunities, encourage them to work on weaknesses, and improve their productivity and effectiveness.


5. It Provides Direction and Guidance

As part of work productivity, transformational leadership ensures proper guidance and sets team members on the right path. This means that a leader not only knows how to set the company’s goals and expectations but also ensures that they are equipped with what they need to achieve them.


6. It Drives Employee Motivation

A transformational leader is someone good at motivating his employees, boosting their morale, and inspiring them to give their best at work. Employee motivation entails trusting their skills, knowledge, and abilities; giving them key roles and responsibilities; as well as empowering them at work.


7. It Helps Team Members Mature and Grow

A transformational leader assesses the maturity levels of his employees. Such a manager is directive and supportive when he assigns and delegates tasks. His approach depends on the maturity of his people. He can deal with people psychologically, emotionally, and mentally.



In business, nothing is ever for certain. That’s why transformational leadership can be such a game-changer. The ability to deal with ambiguity, complexity, uncertainty, and volatility is one of the most valuable aspects of this leadership style.

If you’re looking to help your leaders take your organisation to another level, SKILLFIRE can help!

Our transformational leadership program and executive governance model will aid your team to reach goals they never could before.