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Transformational Leadership

Transformational leadership is about inspiring significant organizational change by aligning the team with a shared vision. This leadership style involves four key actions: embodying the vision and values, inspiring the team with a compelling future vision, encouraging innovative thinking, and paying attention to individual team members’ growth and needs.

The effectiveness of transformational leadership lies in its ability to increase job satisfaction, instill a sense of purpose, create a strong leader-follower bond, focus on long-term development, and build a unified commitment to a shared vision, all of which lead to improved organizational performance.

Charismatic Leadership

Charismatic leadership is a style that motivates others through the leader’s personality, persuasive skills, and communication abilities. It is similar to transformational leadership in its goal to generate enthusiasm for a vision or goal. Charismatic leaders are distinguished by their compelling articulation of a vision, which reflects their strong convictions and self-confidence, as well as their faith in their team’s capabilities. This can lead to taking greater risks.

Charismatic leadership is linked to better organizational performance because followers often feel more confident and find more meaning in their work. They are also motivated by their association with the leader. However, this leadership style can have drawbacks. Charismatic leaders may become authoritarian or self-centered due to their focus on their own personality and power needs. This can lead to exaggerated self-perceptions and decision-making that involves undue risks.

Source: The Wake Up Call research commissioned by The Concord Leadership Group written by Adrian Sargeant, PhD and Harriet Day (2018).