These are perennial questions in the field of leadership development and the answers vary depending on who you talk to.

The concept of a leadership pipeline is that as we start supervising/managing we will be more transactional (performance management) and as we move up through the organisation we will become more transformational (visionary/inspiring).

In reality the modern manager must be adept at both transactional and transformational leadership and the the earlier s/he can do both the more successful they will be.

Transactional Leadership is classic management – organising people and resources towards agreed corporate goals. The four elements of transactional leadership are:

1. Goal Setting – creating specific, measurable, acheivable targets that focus effort in line with the corporate vision.
2. Monitoring Performance – making sure goals are achieved. Providing regular performance reviews either in a structured or fluid fashion.
3. Providing Feedback – letting people know how they are doing relevant to the target/benchmark. Good  feedback must be understood, believed and accepted.
4. Developing Careers – By demonstrating genuine interest in others needs, interests and desires. Being able to connect individual aspirations with the needs of the organisation.

Transformational Leadership style  is where the manager engages with others in such a way that the leader and followers raise one another to higher levels of motivation and purpose. The three elements of transformational leadership are:

1. Creating a Vision – motivating, inspiring and influencing others to see a new possibilities for themselves and the company. A clear vision creates passion, commitment and focus.
2. Stimulating the Environment – creating a positive and challenging work environment that causes people to think, re-examine their ideas and find creative alternatives. Such an environment breeds imagination and innovation.
3. Treating People as Individuals -making people feel valued and encouraging them to contribute. Recognising that people have unique talents, strengths and weakness and allowing for these differences without judgment.

Burns (1978) first introduced the concepts of transformational and transactional leadership in his treatment of political leadership – and I wonder what you think of the graphic I chose and the difference in style between former President George W. Bush and President Barack Obama?

At Self Leadership International we use the transactional/transformational leadership concept with it’s seven competencies as part of executive coaching and leadership development programmes. We are based in Singapore but work in Australia, Malaysia, India and the Middle East.

We have a public workshop - Critical Skills for Senior Managers in Singapore, October 2011.