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How Transformational Leadership Boosts Your Business

Updated: March 2, 2022

Everyone has room to improve, and even an already great leader can still be better. For example, a leader might have the right management tools to do their job effectively, but proper training can push them to become better mentors and motivators.

If you want to grow your business, your focus should not only be on improving what you offer to the public. It should also involve uplifting leadership. A company with great leaders will always perform better.


The Value of Transformational Leadership

Transformational leadership is a creative approach wherein leaders encourage, inspire, and motivate their employees toward positive change. In this process, a leader works with their team to identify how they can improve their current workflow or working conditions. They brainstorm and collaborate to come up with a guide and how they can apply it.

It becomes meaningful because of the power it gives to the employees and how they became part of the thinking process. This method enables all employees to become a role model for others. It serves as an opportunity for them to engage and inspire their peers.

Moreover, this activity allows the whole team to take greater responsibility for their work. With everyone’s input taken into consideration, employees can help their leader assign tasks based on their strengths and weaknesses. Everyone’s desire to be victorious intensifies during the process, and everyone becomes invested in aiming for success. The whole process increases the team’s performance and productivity.


The Basic Components of Transformational Leadership

Four elements comprise a session of transformational leadership. These are called the four I’s.


Idealised Influence

This concept focuses on the leader and their capability to inspire and be a role model for their team members. It includes being a good example who follows all of the ideals and rules set. Transformational leaders do not play it safe. They are risk-takers who encourage and welcome deviating ways of thinking. Transformational leaders are also consistent with what they do. They have strong ethics and sound principles.


Individualised Consideration

Communicating with the team is vital, but so is talking with each team member. Every team member has a role to play, and every one is essential to the business. That importance gets highlighted when the team leader pays attention to their people.

A transformational leader also serves as a mentor or coach for their team members, and they know that there is no one way to hone everyone’s skills and talents. Each team member needs a customised learning opportunity to address their needs and desires, and as a leader, they should be able to track each of their member’s progress.


Inspirational Motivation

Transformational leaders know how to inspire their team members by involving them in the work process and setting one clear objective for all. Through involvement, everyone feels they are part of the development, and this is already an excellent source of motivation. This results in a more collaborative working environment, which is one of the objectives of the whole journey.


Intellectual Stimulation

The same process of collaboration should also be observed when the team needs to resolve issues or problems. Everyone needs to be part of this part, too. Each can contribute an idea or offer strategies on how to solve an obstacle. When employees try to figure out solutions, leaders should show support and encouragement. They should establish that all ideas are welcome.

Some leaders also encourage discussions through challenging any raised assumptions. This process allows the team to look at a problem from different perspectives and find a new way to approach it.


The Role of a Transformational Leader

Besides the components above, there are certain things that a transformational leader should perform to get a positive result from the session. They should be able to:


  • Provide new challenges and opportunities to team members to also encourage them to grow and be their better selves.
  • Avoid being a control freak by giving the team members the freedom and flexibility to work on their own as they work towards the team’s goal.
  • Do all these without going overboard with the employee-leader boundaries.



Great leader knows that there is so much more to learn, and they have much to improve wherever they are in their career and professional development. They should be open to a creative process like transformational leadership, not just for them but for the whole team’s sake.


If you are interested in holding transformational leadership sessions for your company in Australia, we can help you. SKILLFIRE helps businesses uplift their leaders and build high-impact teams to improve overall performance.


Contact us today to learn more.