Home | Client Comments | Programs | Presentations | Library | Contact Us
  
  Business Development Resource Library

Complete Business Wisdom
Library

Transformational Leadership
Part 1: Fundamental Types of Leadership

(adapted from the work of Tom Wentz, author of Transformational Change)

Organizations of the future will be created and built based on "mass customization" (geared towards the shifting and unique needs of the marketplace) rather than "mass production" (utilizing economies of scale). This will require greater amounts of customer, vendor and employee collaboration, rather than marketplace competition and territoriality.

The type of leadership that will be required to build organizations and industries based on collaboration is "Transformational Leadership" rather than other traditional types of leadership. This is because Transformational Leaders are good at seeing the future and then creating an organization that will "boldly go where no organization has gone before."

In reading on, consider:

  1. what type of leadership you provide to your organization?
  2. which type is currently present as well as critically needed in your organization if it is to succeed?

The three, traditional forms of leadership are:

  1. Crisis Leader,
  2. Evolutionary Leader,
  3. Background Leader.

The forth, new form of leadership is

  • Transformational Leadership.

All these types of leadership have their advantages and disadvantages, and every organization requires all forms in order to accomplish its work and succeed. Yet only Transformational Leadership can recreate or reinvent a company's way of doing business, which has become paramount for surviving and thriving in today's shifting and tougher economic climate.


A. Crisis Leaders are:

  • good at reacting to current circumstances, and driven by necessity,
  • heroic and charismatic (a lot of statues get built in their image),
  • in need of being in control of their environment (people, places and things),
  • great at fixing/solving problems and getting things done/finished/complete,
  • in need of a burning platform (e.g., crisis), and might create crises so they can jump in as the hero to resolve them,
  • like to be in the organization's foreground or limelight.

B. Evolutionary Leaders are:

  • good planners and improvers of efficiency,
  • heroic managers, with an eye to keeping everything under control,
  • always working to make things better, faster, stronger, cheaper, etc. (i.e. are incrementalists),
  • guided and driven by strategy (but are usually not creators of it),
  • always working to build organizational and people competencies.

C. Background Leaders are:

  • generally hands-off, laisse-faire, or laid back in their approach,
  • give room for followers to develop, grow and pursue in their own direction, (yet require well-capable and mature followers in order to make things work)
  • at their best, they exert control by possessing sound political skills; working situations indirectly, from the background,

D. Transformational Leaders are:

  • constantly looking into the future for new possibilities,
  • changers of context (change people's frame if reference or thinking so that they see new opportunities that were not noticed before),
  • stand-up for, speak to, and hold the organization accountable to its vision and mission,
  • creators of new organizational capabilities (not just competencies),
  • always wanting the organization to be different, unique, and exceptional,
  • working to build organizations that are more self-managing (all they need to do is to point the organization in the right direction and they go by themselves),
  • not so much foreground heroes, but also work quietly and humbly in the background to put the right people, purpose, and processes in place in the organization,
  • inspire others to reach their potential in the context of the work that needs to be done to achieve the organization’s vision and mission.

Therefore:

  • What type of leader are you?
  • What leadership does your organization currently have?
  • What kind of leadership does your organization require to become what it wants or needs to become?


Transformational Leadership
Part 2: A Model for Transformational Leadership

Transformational Leaders work the following model and process in portraying their leadership:

* Organization Vision addresses the "raison d’être" of the organization. (Also see Business Wisdom’s model on "Hierarchy of Organization Vision and Action" to better understand the "why," "what" and "how" of organizations.)


The five fundamental components to leadership, shown above, can be related to the five basic elements of the universe, i.e. ether, earth, fire, water and air.
  • Ether or Space (generating Vision — which coming from the sky): Out of the ether comes a vision of possibilities. Healthy visions: a) stretch the possible, b) are grounded in reality, c) require courage and d) are based in sound values and ethics. Having a compelling vision is the greatest gift we can both give to ourselves and bring to our world. Vision includes the elements of Identity (who we are), Values (what’s important to us, and Purpose (why are we here) and, from that, projects the world we want to create and live into over the next 3-5 years.
  • Water (negotiating the complex organizational passage ways in order to create Alignment): We need to find ways to meander through and deal with the complexity of the world in order to get people aligned in the accomplishment of productive work. Being water also helps us to adjust/adapt to changing circumstances and be able to learn from the ebbs and flows of organizational politics. Alignment considers issues like:
    a) Are the priorities of the company aligned with those of the customers, suppliers and your team?
    b) Are personal, interpersonal and organizational objectives in sync?
    c) Is there alignment among the organization’s Vision, Mission, Goals and Strategies?
    d) Are organization structures, policies, processes and systems set up to facilitate organization alignment / coordination?
  • Fire (Influencing others and spreading the word): We need to be able to get others working together and building combined momentum in the process of realizing a common vision. We need to learn to inspire others in the service of the higher organization purpose, values and identity. Influence entails generating focused energy and action, understanding what’s most important to others, and being skilled at moving others so as to get them aligned and working in sync.
  • Air or Wind (Bringing Out the Best in Others): Developing disciples through our words and deeds is also crucial; for we cannot lead without followers, and those followers must learn to become leaders in their own right. Sound leadership needs to beget sound leadership — so we need to get others to rise and step up to what’s possible through the "air" of our words and breadth. "Air," properly directed, also fuels "fire," spreading our influence in the right direction through others. Aspects of bringing out the best in others are: fostering a learning environment, providing coaching and mentoring, and supporting other’s personal vision.
  • Earth (Being Bur Best and standing our ground): Knowing who we are and what we stand for gives us and anchor in the face of adversity and the forces of our world and marketplace. Working on ourselves, to become our best - principled and focused - helps us to be grounded and act from a secure and sustaining place. We also need to become an example of the change we seek in others, because people respond not both to our words and our deeds. Being our best entails: being an example for others to follow, clarity and pursuit of one’s personal vision, holding our ground in what we truly believe, and practicing all the qualities of a good leader.

All of us need to be able to work on all these five elements if we are to become complete leaders within the complex organization and world we live in.


Therefore:
  1. What results/outcomes do you want to produce this year as a leader in your organization?
  2. How would you know you are getting those results/outcomes? (What do you need to see happen?)
  3. Which of the elements in the above model, or aspects of each, are strong in you?
  4. Which elements in the above model need to be further developed in you?
  5. What kind of commitment would it take for you to become a more complete leader? 


Harvy Simkovits, CMC, President of Business Wisdom, works with owner managed companies to help them grow, prosper and continue on by offering innovative approaches to business development, company management, organization leadership and learning, and management education. He can be reached at 781-862-3983 or .

Business Wisdom
4 Angier Road, Lexington, MA 02420 – (781) 862-3983 – www.Business-Wisdom.com