Transactional Leadership Benefits

Transformational leadership focuses on developing the whole person, while transactional leadership focuses more on helping someone do their job better.
 
Transformational leadership is sexy. It seems like the “right” type of leadership for many of us; leaders should care about the person holistically and not merely as some asset or product. I know I aspire to lead that way. But what if a more transactional leadership is necessary for the job? What if it’s genuine to be transactional and transformational leadership becomes phony based on the environment? Is it possible transactional leadership can be more effective for certain jobs? Let’s unpack the benefits of transactional leadership...
 

• Great leadership requires great consistency, and transactional leadership is easier to be consistent with. It lowers the need to tap into emotion and simply focuses on making the best decisions for the task at hand.

• When working in routine-based environments, it may be helpful to have a transactional leader. Think of jobs that require monotony and the need to execute the same way day-in-day-out.

• In times of crisis, having someone who focuses on the transaction needed is often helpful. There is a time to grow and a time to execute. Not all environments are the same, and crisis often requires decisions that are in the best interest of the organization instead of the individual.

• Efficiency is a tricky word. On one hand, capitalistic markets depend on it; on the other hand, it can be exclusive and lack the long-term vision needed to win in the long run. However, there are times when we need to be efficient for survival. In those times, a transactional approach may be preferable.

• Even if we consider ourselves to be a transformational leader, there will undoubtedly be times when we need to sprint and go fast. In those times, it can be helpful to have clear short-term expectations and goals that we are held accountable for. 

While we are thinking of the benefits of transactional leadership, it’s important to point out the power of “and” when it comes to leadership. There will be times when we need to be transactional and other times when we need to be transformational. Let’s not forget to lean into transactional leadership when our role calls us for it.