Which Type of Change Leader Are You?

When you think about your leadership style, do you see yourself as someone who focuses on the day-to-day tasks and results, or are you driven by a broader vision that inspires others to achieve more?

Leadership styles can vary widely, and each has its own strengths and applications.

We look at two contrasting styles here; transactional and transformational leadership. Understanding where you fall between these two extremes can provide valuable insights into how you lead change, and how you can grow as a leader.

What Is Transactional Leadership?

Let’s start with transactional leadership. Picture a manager named John. John is highly organised, detail-oriented, and thrives on structure. He holds a meeting where he sets clear expectations for his team: each team member must hit certain targets, and those who do are rewarded. Those who don’t? Well, they might find themselves having a difficult conversations.

John’s approach is classic transactional leadership. He focuses on results, ensuring his team knows exactly what’s expected of them. By providing clear goals and a system of rewards and penalties, John keeps his team motivated—at least in the short term. His leadership style is effective in maintaining order and driving performance, especially when the goals are straightforward and the path to achieving them is clear.

But there’s a downside to this approach. John’s team members may feel more like cogs in a machine than valued contributors. They might hit their targets, but they’re not necessarily inspired to go beyond the minimum. They do their jobs well, but the motivation doesn’t come from a deeper sense of purpose or passion.

Questions to Consider:

• Do you prefer to manage by objectives, with a strong emphasis on performance and outcomes?
• Are you more comfortable working within existing systems and processes rather than challenging them?
• Do you often rely on rewards and consequences to motivate your team?

What Is Transformational Leadership?

Now, let’s talk about transformational leadership. Picture a leader named Emily. Emily works in a company that’s trying to reinvent itself by developing a groundbreaking new service. Unlike John, Emily doesn’t spend much time setting specific targets or micromanaging her team. Instead, she gathers them around and paints a vivid picture of the future—what this new product could mean for the industry, how it could change lives, and why their work matters so much.

Emily encourages her team to think outside the box, to challenge assumptions, and to come up with innovative solutions. She doesn’t just tell them what to do; she inspires them to take ownership of the project, to feel a sense of pride in their work. Under her leadership, team members aren’t just doing their jobs—they’re driven by a shared vision, pushing boundaries and working together to achieve something truly remarkable.

This is transformational leadership in action. Emily isn’t just focused on the here and now; she’s looking at the bigger picture. She’s not just managing tasks; she’s inspiring her team to achieve more than they ever thought possible. And in the process, she’s creating an environment where people feel valued, motivated, and engaged.

Questions to Consider:

• Do you focus on the long-term vision and encourage your team to think beyond their current roles?
• Are you passionate about fostering a culture of innovation and continuous improvement?
• Do you actively seek to inspire and motivate your team, rather than simply managing them?

Recognising the Spectrum of Leadership Styles

It’s important to acknowledge that leadership isn’t confined to just transactional and transformational styles. There’s a wide spectrum of leadership approaches, each with its own strengths and applications. Some leaders might lean more towards a servant leadership style, prioritising the needs of their team members, while others might adopt a more authoritarian approach, focusing on control and direction.

However, transactional and transformational leadership represent two extremes on a spectrum, offering a useful framework for understanding how different approaches can impact team dynamics and organisational outcomes. Most leaders will find themselves somewhere in between these two styles, blending elements of both to suit the needs of their team and the challenges they face.

Flexing your style

The truth is, the most effective leaders often blend both styles, adapting their approach based on the situation and the team’s needs. Take Sarah, for instance, a project manager who has led her team through BAU operations and major transformations. When the company needed to streamline its processes, Sarah used a transactional approach, setting clear objectives and holding her team accountable for meeting them. But when it was time to launch a new product, she shifted gears, tapping into her team’s creativity and inspiring them with a vision of what they could achieve together.

Sarah’s ability to switch between these styles allowed her to lead her team effectively, no matter the challenge. She recognised that while transactional leadership provides the necessary structure for day-to-day operations, transformational leadership is essential for driving innovation and sustaining change.

Practical Steps to Enhance Your Leadership:

1. Develop Self-Awareness: Reflect on your leadership style and how it aligns with the needs of your team and organisation. Are you providing the right balance of guidance and inspiration?
2. Adapt to the Situation: Recognise when to apply a transactional approach and when to shift towards transformational leadership. Flexibility is key to effective leadership.
3. Focus on Communication: Whether transactional or transformational, clear communication is essential. Ensure that your team understands not just what they need to do, but why it’s important.
4. Embrace Continuous Learning: Leadership is a journey, not a destination. Continuously seek opportunities to develop your skills, whether through mentorship, feedback, or professional development.
5. Inspire and Motivate: Even if you lean towards a transactional style, look for ways to incorporate transformational elements into your leadership. Small changes in how you engage with your team can have a big impact on their motivation and performance.

Which Type of Change Leader Are You?

So, are you a transactional or transformational leader? The answer might not be clear-cut. It’s likely that you embody elements of both, and the most effective leaders are those who can balance these styles to meet the needs of their team and organisation.

Transactional leadership ensures that the day-to-day tasks are completed efficiently, providing the structure necessary for stability. Transformational leadership, however, drives change, fosters innovation, and inspires your team to reach new heights. By understanding where you stand and how you can incorporate the best of both worlds, you can become a more adaptable and effective leader, capable of guiding your team through both challenges and opportunities.

Reflect on your leadership style, embrace the strengths of both transactional and transformational approaches, and continue to grow as a leader who manages, inspires and transforms.