1. Transformational Leadership – Team Yellow
May 16th, 2012

2. AGENDA A B C D E F G Transformational Leadership Theory
History: origin of the concept of Transformational Leadership in the early 80s
Core Elements: The “4I”: Idealized influence, Inspirational Motivation, Intellectual Simulation Individual Consideration
Why transformational leadership – how applicable is it today?
Value and benefits of following this approach at GL
Challenges of following this approach at GL
Real situation & day 2 day business
Case Study
Questions & Answers A B C D E F G
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3. A
History: origin of the concept of Transformational Leadership in the early 80s
James MacGregor Burns (1978):
establishes two concepts: “transforming” and “transactional” leadership
redesigns perceptions and values of employees
based on leader’s personality, traits and ability to make a change through example by articulation of an energizing vision and challenging goals
transforming leaders work towards the benefit of the team
Bernard M. Bass (1985):
extends the work of Burns with analysis of psychological aspects
introduces term “transformational” instead of “transforming”
explains how transformational leadership can be measured
measurement criteria: influence on the followers like trust, admiration, loyalty and respect for the leader as well as intellectual stimulation and individual consideration
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4. B
The “4I”: Idealized influence, Inspirational Motivation, Intellectual Simulation Individual Consideration
Transformational leadership is based on transactional leadership (exchange of staff's output and reaction of the leader). Transformational leadership goes one step beyond and includes four core elements in addition: 1
Idealized Influence
The leader provides a role model for his behavior. He gains respect and trust. (In simple terms: He is heard, his attitudes are generally considered to be worthwile, useful, interesting, important etc.) 2
Inspirational Motivation
The Leader is able to transport his visions, their meaning and purpose to his followers.
Good communication skills support leader's ideas that followers are willing to invest more of their abilities and efforts. He brings higher levels of personal commitment amongst followers to organizational objectives.
Intellectual Simulation
The leader supports his followers in their own creativity, he listen to their ideas, their critisism, their suggestions how to improve their tasks 3 4
Individual Consideration
The leader acts as coach and mentor. He reacts on individual needs of his followers; their strength and abillitis are developed further
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5. Why transformational leadership – how applicable is it today?
Company’s environment is increasingly dominated by
fast changes, reduced product life cycles and uncertainty
increasing competition
war for talents and higher employee expectations
Environment
Vision
Changing environment requires frequent / continuous transformation of company
Clear vision providing a coherent and clear framework for transformation and entrepreneurial behaviour of individuals – which is activated by transformational leadership
Transformational leadership enables the company to respond to today‘s challenges
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Source: Internet research, BCG report on „Leading Transformation“ (October 2011)

6. What might be the value and benefits of following this approach at GL?
Company:
Entrepre- neurial thinking
Improved results by improved prioritization
Increased adaptability to changes of the environment (market, customer, …)
Improved processes
Stronger ownership and responsibility
Best possible output (effectiveness)
Client orientation
Change processes can be implemented easily (and will be initiated by staff members)
Individual:
response on
personal needs
Happiness of staff is increased (improved results of Great Place to work study)
Motivation by welfare (not only monetary)
Long term profitibiability
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7. What might be the challenges of following this approach at GL?
Lack of trust,
bad experiences
Unsuccessful transformational projects in the path
General pessimism / negative thinking
Lack of authenticity
Close relationship to staff members handicap succession - > Number of TFL at GL
Lack of visions (change agenda),
resistance to change
Lack of breakdown of targets - visions must be understandable and applicable; you must get a chance to implement it
Is there a general agreement on the vision/targets ?
GL organization organized around instructions, bureaucracy and routines – less around leadership and change. Leaders need to be considered as such by staff members
Lack of focus on (overall) results
Thinking in details, less abilities to abstract / think in the “big picture”
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8. F
Can you identify a real situation where you could use it in your respective leadership roles?
Change of organisational structure – new teams, new leaders (Antje)
Explaining of benefits
Developing of „own“ theory, communication
Master Data Management (Carsten)
Shifting from administrative/concept oriented working to vision/objective/entrepreneurial way of working… long way to go
And many more …
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9. G
Questions to be answered regarding the case study Transformational Leadership
Questions
Answers
What is it about Rachel's leadership style that clearly suggests that she is engaged in transformational leadership?
In what ways has the growth of ICCR had an impact on Rachel's leadership?
Given the problems Rachel is confronting as a result of the growth of the company, what could she do to re-establish herself as a transformational leader at ICCR?
Vision/objective driven,
Give people freedom as well as encourage/enable them
Act as a role model
Due to growth she has lost the direct connection to “the people”
She needs to shift here way of “leading” from “leading people” to “shape leaders”, who lead the people
Identify new channels to communicate here style (role model)
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