Leading in a transformational way
The power of leadership that inspires
We often use the term transformational leadership to describe the traits of truly outstanding leaders - those who don’t just manage people but inspire them to grow, engage, and achieve beyond expectations.
In 1985, Warren Bennis and Burt Nanus identified five key behavioral characteristics shared by such leaders. These remain as relevant today as ever, especially in a world of constant change and distributed work.
The five foundations of transformational leadership
- Management of attention - Focusing people’s energy on what matters most. Outstanding leaders use imaginative and bold ways to attract others to their vision.
- Management of communication - Speaking clearly and unambiguously to everyone, regardless of position.
- Management of trust - Acting consistently so people can anticipate how their leader will behave and rely on them.
- Management of respect - Valuing each person and their contribution, showing genuine care for people, not just performance.
- Management of risk - Making informed, courageous decisions, learning from mistakes, and persisting toward success.
Why it matters
Research shows a strong link between transformational leadership and employee engagement. A systematic review by Bailey, which analyzed 155 studies, confirmed that leadership quality is one of the strongest predictors of engagement.
When managers lead in a transformational way, they don’t just assign tasks - they inspire their teams around a shared vision. Supervisor support consistently ranks among the top drivers of engagement, proving that leadership behavior directly influences motivation, retention, and performance.
However, this leadership style cannot be forced. Managers must feel supported and empowered themselves to lead authentically and sustainably.
Transformational leadership in distributed teams
In today’s global and hybrid work environment, transformational leadership is especially effective because it fosters connection and trust even when people rarely meet face to face.
This naturally leads to the concept of distributed leadership - an approach that treats anyone contributing to collective goals as a potential leader, not just those with formal authority.
In such environments, leadership becomes fluid and shared: people move dynamically between being a leader on one project and a team member on another.
It requires flexibility, humility, and strong communication. But when done right, it builds empowerment, collaboration, and high ownership across teams.
How to lead in a transformational way
To lead in a transformational way is to inspire people toward a vision and create a sense of shared purpose. Here are four core practices that help translate this philosophy into daily leadership behavior:
- Create an inspiring vision of the future. Paint a clear and compelling picture of where the team is heading and why it matters.
- Motivate people to buy in and deliver. Link their individual goals to the bigger purpose, showing how their work contributes to success.
- Manage delivery of the vision. Support people through clarity, feedback, and trust, ensuring progress stays aligned with goals.
- Build strong, trust-based relationships. Be transparent, reliable, and authentic. The more your team trusts you, the more they’ll follow your lead.
Finally, great leaders are self-aware. Reflect regularly on which of these behaviors you already demonstrate and where you can grow. Leadership development is a journey - not a fixed skillset.
Main takeaways
- Transformational leadership focuses on inspiring and empowering people, not just managing tasks.
- The five key behaviors - attention, communication, trust, respect, and risk management - define how outstanding leaders act.
- Research confirms: supportive, transformational leaders drive higher engagement and retention.
- This approach is especially effective in distributed or global teams, where connection must be intentional.
- Leadership growth starts with self-awareness and continuous reflection on your behaviors.
Further Reading: What is employee engagement