What is the difference between transactional and transformational leadership?

In any organization, there are two types of leaders: transactional and transformational. Transactional leaders focus on the now, on getting the job done according to the established rules and procedures. Transformational leaders, on the other hand, focus on the future and on making changes that will have a positive impact on the organization as a whole. But which type of leader is more effective? Let's take a closer look.

The answer may surprise you. According to research, both types of leaders can be effective, depending on the situation. For example, in a rapidly changing environment, transformational leader is more likely to be successful because they are able to see beyond the here and now and make decisions that will benefit the organization in the long run. In a stable environment, however, transactional leader is more likely to be successful because they are focused on maintaining the status quo.

It's also important to note that both types of leaders need to have an outward mindset. This means that they need to be focused on what's happening outside of their own organization and how it will impact their decisions. With an outward mindset, transactional leaders will be able to adapt their strategies as needed, and transformational leaders will be able to identify opportunities for change. Organizations with leaders who have an outward mindset are more successful overall than those who don't.

So, what does all this mean for you? If you're a leader, it's important to understand both types of leadership and how to apply them in different situations. It's also important to have an outward mindset so that you can see beyond your own organization and make decisions that will benefit everyone involved. With these skills, you'll be well on your way to leading your organization to success.