It is a bit like if you were in a boat and have set your course, but the boat springs a leak and you spend your whole time bailing water and have no time to steer.

William Bridges created a model of change and transition that is highly relevant in today’s financial readjustment. When the collapse of Lehman Brothers started the domino effect of the global crisis, many of us would have experienced first shock, then denial, anger and fear. If you lost money or a job you might then experience grief, frustration, confusion, stress and loss of control.

As an executive coach and leadership consultant I have often witnessed this spiraling down into paralysis that Bridges calls the ‘neutral zone’. Symptoms of the neutral zone include ambiguity, anxiety and the absence of motivation. The cure for this paralysis is a new vision of what is possible.

Einstein said that, “A problem cannot be solved with the same level of thinking that created the problem.” When in the neutral zone, we are in a dark place and our ability to think optimistically and see possibilities is severely limited. What is required is a little magic, the magic of imagination. All of human achievement started with imagination, from running a mile in under 4 minutes, to imagining what it would be like on the top of Mount Everest to imagining walking on the surface of the moon.

A vision will inspire, motivate and engender creativity and it starts with using imagination to travel to the future when things will be better. The Executive who asks him/herself, “What is possible?” “What will we be doing when things are better?” To do achieve this we must take time to stop bailing the water in the boat and look to the shore. Most executives find this extremely difficult as they leave themselves little or no time to stop, step back and think strategically.

With a new vision of where you are going, you and your people will become more optimistic, think creatively and start planning actions that will move you towards success.

It was no surprise that Barack Obama beat John McCain; Dr Martin Seligman in his book ‘Learned Optimism’ talks about his analysis of US elections based on the number of positive or optimistic comments made by the candidates. Obama clearly offered a more optimistic view of the future and thus captured the popular vote.

Obama is being called a transformational leader because he:

1. Created a vision that inspired the American voters (and the world) to believe that there were new possibilities.

2. Stimulates people to think, to re-examine their ideas and find creative alternatives. Such an environment breeds imagination and innovation.

3. Treats people as individuals making people feel valued and encouraging them to contribute. He recognizes that people have unique talents, strengths and weakness and allowing for these differences without judgment.

The transformational leader must have what I like to call ‘realistic optimism’ which is a practical and pragmatic approach that is ideally suited to the current climate. Realistic optimism is the mindset that we can make the best of any circumstance; it is the acceptance that bad things do happen but with a healthy self-esteem and the confidence in our abilities we can overcome adversity, learn from the situation and be even better for the experience.

Optimism without right actions and following sound principles will not be enough. Lehman Brothers failed because of over-optimism and the senior management not being in alignment with their own company’s vision and values.

In the current climate it is tempting to focus on immediate need and make tactical rather than strategic decisions; I urge you to step back for a moment, get in touch with your personal or company vision and ask yourself, “Is this decision the right one for the long term?”

Andrew Bryant is the Director of Self Leadership International and is based in Singapore but travels extensively as an executive coach and leadership consultant.

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.