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Why Transformational Leadership Is Good for Business

Updated: February 22, 2022

Every business needs a good leader who will lead it to success. No matter how impressive your products or services are or how talented the employees are, an organisation will get lost in the sea of countless companies trying to make it big.



The current business landscape is full of fierce competition—without direction, a business won’t stand out and become a notable presence in the industry! When it comes to formulating and communicating new strategic directions for an organisation, you need a leader to guide you.

As a vital management function, leadership is key to helping direct your business’s resources to improve efficiency and achieve your goals. An effective leader can provide clarity of purpose, motivate employees, and direct a company to turn its vision into reality.


What Kind of Leader Do You Need?

Just because you have someone at the top of your organisational chart doesn’t mean that you have a leader to guide you to success. Remember that not all leaders can lead a company—some individuals who hold a position of leadership end up causing the demise of their organization instead of the other way around!

Besides a well-thought-out marketing plan, quality goods, and services, or workforce skills, and effective leadership strategy can help grow a business exponentially. When applied to the correct situation, a leadership methodology can make a significant positive difference.

Among the various types of leadership, one stands out from the others, showing potential to spark a remarkable transformation in a larger context.


Transformational Leadership: The Gamechanger

Transformational leadership is a unique type of leadership involving leaders creating change and influencing their followers’ behaviour through inspiration.

This approach to leadership relies on encouraging and motivating followers to help mould a prosperous future for an organisation. Essentially, transformational leadership is used to inspire the members of an organisation to function as a single unit with one common goal and to look ahead with a focus on the greater good.

Introduced by James V Downton and further developed by James MacGregor Burns, this concept is now being applied across various industries such as education, finance, entertainment, technology, and politics. Since it was developed, transformational leadership has proven to grow a business and achieve one’s objectives and key results.


Who Are Transformational Leaders?

Unlike transactional leaders who provide rewards and punishments to gain compliance, transformational leaders inspire and influence their teams. A transformational leader is charismatic and can make the members of an organisation feel passionate about its success.

Instead of solely focusing on motivating the staff, inspirational managers look at the big picture. A transformational leader has a vision for the company’s future and will share them with the rest of the organisation to turn them into reality.



Rewards and punishments can only be effective for so long. If you want to inspire your employees and share the same motivation and passion for the company, you must invest in a transformational leadership style! With the right kind of leadership strategy, your organisation is sure to grow and succeed.

Do you want to ,grow your business through effective leadership but don’t know where to start? Then, our training, workshops, and in-house sessions at SKILLFIRE may be just what you need to get on the right track! We will help your business uplift your leadership capability and align your people on what’s most important.

Connect with us today to learn more!