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Transformative Leadership

Transformational Leadership
Prepared by: Ibrahim Rahal

Competitive forces are tougher than ever before in today's climate, and firms must depend on an innovative business model and discover strategies to not only gain sustainable competitive advantages but also to lessen the stress and pressure experienced by their staff.
Covid-19, political unrest, recessions, it's almost impossible to escape from the never-ending uncertainties we are living in. Despite this, people turn to their leaders for direction and assurance in challenging moments more than ever before. Though it is not easy for leaders to keep their effectiveness, lead companies to success, and encourage employees in an environment based on trust and respect.
There are distinctive styles of leadership, but we will focus in this paper on ‘Transformational Leadership and how it relates to Strategic Management and its value in sustainable competitive advantages.
Transformational Leadership: Theoretical Approach
The theory of ‘Transforming Leadership’ was first introduced by James McGregor Burns in 1978. Transformational leadership can motivate followers to make positive changes. This type of leader is usually full of confidence, energy, enthusiasm, and ambition. They are concerned about more than just selves and processes, but it also encompasses “the welfare of every single individual in the group to generate better performance”[ CITATION Raw15 \l 1033 ] by inspiring employees in ways other than exchanges and rewards.
This concept is then developed by Bernard M. Bass by introducing ways of measuring and rating the achievement of transformative leaders, as well as the fundamental principle of leaders showing genuine and focused energy to inspire other team members to emulate them. Those leaders encourage followers through their inspirational motivation, support, trust, and charisma. Bass, then, “suggested that leadership can simultaneously display both transformational and transactional leadership”[ CITATION Lan17 \l 1033 ], introducing four components of Transformational Leadership as follow:

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