Transformational Leadership
The leadership frameworks discussed so far are all useful in different situations, however, in business, "transformational leadership " is often the most effective style to use. (This was first published in 1978, and was then further developed in 1985.)
Transformational leaders have integrity and high emotional intelligence . They motivate people with a shared vision of the future, and they communicate well. They're also typically self-aware , authentic , empathetic , and humble .
Transformational leaders inspire their team members because they expect the best from everyone, and they hold themselves accountable for their actions. They set clear goals, and they have good conflict-resolution skills . This leads to high productivity and engagement.
However, leadership is not a "one size fits all" thing; often, you must adapt your approach to fit the situation. This is why it's useful to develop a thorough understanding of other leadership frameworks and styles; after all, the more approaches you're familiar with, the more flexible you can be.
Charismatic Leadership
Charismatic leadership resembles transformational leadership: both types of leaders inspire and motivate their team members.
The difference lies in their intent. Transformational leaders want to transform their teams and organizations, while leaders who rely on charisma often focus on themselves and their own ambitions, and they may not want to change anything.
Charismatic leaders might believe that they can do no wrong, even when others warn them about the path that they're on. This feeling of invincibility can severely damage a team or an organization, as was shown in the 2008 financial crisis.