What is a Transacational Leader?

Okay, Hans Gruber may be the bad guy in the film Die Hard (which we all know is a Christmas movie, right?), but he’s the perfect example of this type of leadership. Other than being thwarted by the barefoot John McClane, Hans has a high level of organization, efficiency, and established protocols which helps lead his team into getting in, and taking over, the Nakatomi Plaza.

This style of leadership emphasizes structure and the establishment of roles and responsibilities. No one is left guessing at to what their tasks are.

It’s also a style that clarifies how their teams are either rewarded or punished according to their results. It’s also very directive - a “telling” type of style.

Transactional leadership is a structured, objective-driven approach that operates within a hierarchy and prioritizes achieving specific outcomes. It relies on established procedures and practices that don't demand much creativity or innovation. Transactional leaders aim to uphold the existing state rather than introduce changes.

Is it the best type of leadership?

Like all the styles of leadership, it just depends.

If you’re working in sales, it’s more common to have this style of leadership (at least historically) - if you make sales, you get the commisions (reward). If you don’t make the sales, you get nothing (penalized). Or if you work in a fast-food restaurant, consistency is key, so either you get the food right (according to standards) or you don’t.

It’s a style that is very common, especially for new and up-and-coming leaders, as that’s what they know and have experienced.

Pros

• Success is clearly defined

• Confusion and guesswork are eliminated

• Expectations and job roles are clear

• Identify problem areas or low-performing employees quickly

• Easier to make cost-effective decisions

• Individual employees are motivated to compete and succeed

• High-performing employees are consistently rewarded

• Performance standards are explicit and hence promotes accountability

• Creates a sense of fairness among staff, as no one is treated in any special way

This style of leadership has its time and place, but if you want to grow as a leader, you’ll want to expand on this way of leading teams (and yourself!)

Here are a few ways you can shift from Transacational to a more Transformational-style of leading:

• Be transparent with your communication and share both your successes and failures with your team.

• Promote an innovative culture in your workplace by actively seeking growth and adaptation in response to evolving times.

• See mistakes and failures as learning opportunities.

• Empower your employees by granting them the autonomy to work in their most effective way and have faith in their ability to accomplish tasks even without constant supervision.

• Continuously aim to become the optimal version of yourself. By doing so, you will motivate those you lead to pursue their own personal growth and improvement.

• ‍Make decisions based on your own code of ethics and values. Follow your moral compass.

• Offer ongoing, constructive feedback that assists every team member in enhancing their performance while avoiding the emphasis on their weaknesses.

• Lead with empathy and endeavor to see every situation from multiple perspectives

In other words, open yourself up to digging further down into your own growth so you can show others how it’s done. It all starts with YOU. Learn to show up beyond being judge, jury, and executioner, and see things as opportunities rather than binary (bad / good, punish / reward, etc.)

When you start to push yourself, and open up to invite team members to share their own expertise or enthusiasm, you will start to see and feel a shift in the environment.

And of course, if you need support, guidance, mentorship, or just a space to brainstorm to help build your leadership acumen, you can find out how to work with me by smashing the button below. I offer many ways to help you create the leadership you desire to make the impact you know you can make in your life.