1. Leadership Fundamentals
Transactional and Transformational Leadership Principles

3. “There go the people. I must follow them, for I am their leader."
The Mistakes We Make
Conflating Leadership with Position
Ignoring the Importance of Position
Treating Leadership as In-organic
“There go the people. I must follow them, for I am their leader."
-French Radical (1830’s)
“Leadership can be developed. However, it cannot be ‘promoted.’” -Dan Chase (June 16th, 2015)
“To be a really effective leader you have to give a damn about something.”
-Dan Chase (I don’t know. Probably a few years ago. Let’s just say 2010 to be safe)

5. Two Types of “Leadership”
What I don’t like about this graph is that transactional leadership doesn’t usually produce “followers.” That comes from transformational leadership.

7. Transactional Leadership
Laissez-Faire
Management by Exception
Contingent Rewards
“The best transactions are constructive and evidence would suggest that these are usually reasonably effective in achieving desired levels of performance.”
- Bruce J. Avolio, 1999
“For the past decade, research has supported the idea that, on average, transformational leadership is far more effective than transactional leadership in generating the higher levels of extra effort, commitment, performance, and satisfaction of those led.”
Bruce J. Avolio, 1999
Transactional Leadership occurs when the leader rewards or disciplines the follower, depending on the adequacy of the follower’s behavior or performance. Laissez-Faire is worth less. MBE tends to be ineffective. However, in an environment where risk is high it can be absolutely necessary (e.g. military, law enforcement, etc). Active is when the leader purposefully monitors for deviations and mistakes and takes corrective action. Passive is when the leader just waits for them to come to his attention and then take corrective action. Contingent Rewards is what is sounds like.
Zappos

8. Transformational Leadership
Idealized Influence
Inspirational Motivation
Intellectual Stimulation
Individual Consideration
“Leadership is leaders inducing followers to act for certain goals that represent the values and the motivations—the wants and needs, the aspirations and expectations—of both leaders and followers. And the genius of leadership lies in the manner in which leaders see and act on their own and their followers’ values and motivations.” -James MacGregor Burns, 1978
“One recent study of R&D firms found teams whose project leaders scored high on transformational leadership produced better-quality products as judged 1 year later and were more profitable 5 years later. A review of 87 studies testing transformational leadership found it was related to the motivation and satisfaction of followers and the higher performance and perceived effectiveness of leaders.”
Judge and Robbins, 2014

9. Idealized Influence Role Model Values Trust Self-Sacrifice
“The best leader does not ask people to serve him but the common end. The best leader has not followers, but men and women working with him.”
-Mary Parker Follett
JAL CEO, Consider the needs of others above your own, sacrifice personal gain. Servant Leadership

10. Inspirational Motivation
Meaning
Vision
Optimism
“We choose to go to the moon. We choose to go to the moon in this decade and do the other things, not because they are easy, but because they are hard, because that goal will serve to organize and measure the best of our energies and skills, because that challenge is one that we are willing to accept, one we are unwilling to postpone, and one which we intend to win.”
-September 12, 1962
Vision should be within the scope of that for which you have control and is future oriented. Lincoln, Susan B. Anthony, MLK

11. Intellectual Stimulation
New Ways of Viewing Problems
Question Assumptions
Tolerate Mistakes
“Nothing is too good, too fixed too political, or too bureaucratic that it can’t be challenged, changed, retired, and/or abandoned.”
Bruce J. Avolio, 1999
Focus on the “what of problems” not the “who.”
“The work of leaders is change. Leadership is inextricably connected with the process of innovation.”
- Rosabeth Moss Kanter

12. Individual Consideration
Teach Efficacy
See the Whole Person
Recognition
“Further Analysis also indicated that these gains from non-financial incentives were sustained over time and, when compared to financial incentives, had an equally significant impact ”
- Luthans and Stajkovic, 2009
The leader remembers previous interactions, is aware of individual concerns. You can see how this would be specifically relevant for supervisors. Inspirational motivation might be more related to higher level executives. Trust Intentions
“If you report that your manager is a close friend, you are 2.5 times more likely to be satisfied with your job.”
- The Leadership Challenge

13. What Extremes to Avoid Transactional is “less than”
What you do isn’t “Big” Enough for Transformational Leadership
“Transformational leadership adds or augments transactional leadership in its effects on follower motivation, satisfaction, and performance. Transformational leadership does not replace transactional leadership.”
Bruce J. Avolio, 1999

14. Are Leaders Born or Made?
YES!
Life Biography
Wide Learning
Influence Without Authority
Extreme Challenges
Self-Efficacy
Enacted Mastery
Modeling
Verbal Arousal
“The Unexamined Life is not Worth Living
-Socrates

16. Leadership Fundamentals
Transactional and Transformational Leadership Principles