Leaders Changing Organizations

Transformational leadership is leadership that inspires organizational success by profoundly affecting followers’ beliefs in what an organization should be as well as their values, such as justice and integrity.39 This style of leadership creates a sense of duty within an organization, encourages new ways of handling problems, and promotes learning for all organization members.40 Transformational leadership is closely related to concepts such as charismatic leadership and inspirational leadership.

Bennett Cohen and Jerry Greenfield, cofounders of the iconic Ben & Jerry’s ice cream brand, are an example of transformational leaders. From the outset, profitability was only one of their goals. They were equally interested in creating an enterprise that operated in environmentally responsible ways and gave back to the communities in which it did business. According to Greenfield, “We measured our success not just by how much money we made, but by how much we contributed to the community.”41

Perhaps transformational leadership is receiving more attention nowadays because of the dramatic changes many organizations are going through and the critical importance of transformational leadership in successfully “transforming” or changing organizations. In fact, recent studies have found evidence linking certain traits—hope, optimism, and resiliency—to the success of transformational leaders.42

The Tasks of Transformational Leaders

Transformational leaders perform several important tasks. First, they raise followers’ awareness of organizational issues and their consequences. Organization members must understand an organization’s high-priority issues and what will happen if those issues are not successfully resolved. Second, transformational leaders create a vision of what the organization should be, build commitment to that vision throughout the organization, and facilitate organizational changes that support the vision. In sum, transformational leadership is consistent with the strategy developed through an organization’s strategic management process.43

Managers of the future will continue to face the challenge of significantly changing their organizations, primarily because of the accelerating trend toward positioning organizations to be more competitive in a global business environment. Therefore, transformational leadership will probably get increasing attention in the leadership literature. Although the practical appeal of and interest in this style of leadership are strong, more research is needed to develop insights into how managers can become successful transformational leaders.

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