Transformational vs Transactional Leadership

Leadership takes many forms. No two leaders look exactly alike, and yet, radically different styles can produce impressive results.

While a wide variety of qualities set modern leaders apart, most ultimately fall under one of two main categories: transactional and transformational. Identified in James MacGregor Burns’s book entitled Leadership, these influential styles were initially regarded as mutually exclusive.

A transactional leader is someone who follows a routine or set of rules. They focus more on sticking to the procedure to achieve results, rather than trying new ideas or innovating. The term “transactional” comes from the fact that these types of leaders are looking to motivate by exchanging performance for rewards or discipline. A transactional leader will set a list of criteria for their employees or team members to meet, then judge them based on how well they meet those criteria.

Transformational leaders are more focused on the future and embrace creativity. A transformational leader will encourage their subordinates to innovate and try new things, with the ultimate goal of creating future success for the organization. With this style of leadership, you are less focused on the day-to-day operations and short-term goals, but rather on long-term success.

Whereas a transactional leader may micro-manage the work of an employee, transformational leaders will give them more room to operate. This allows employees to take on larger responsibilities and use more of their creativity. In turn, the employee feels like they have a larger stake within the organization.

A transformational leader wants each team member to be their best so that they can ultimately help the organization improve. They do this by motivating the team member not through money or punishments, but by getting them to see themselves as a part of something bigger.

It’s tempting to debate which style of leadership is better, but that misses the point. Both styles are valid, and what matters is context. Different management styles are suited to different situations. Some organizations need rigidity and a clear chain of command. Others work best in a fluid environment where leadership sets an example and establishes goals. Leadership styles that work for Google won’t work for the military — and vice versa.

In fact, both types of leadership styles might be needed in the same organization to counterbalance each other and help achieve growth and development goals. Transactional leaders make sure the team is running smoothly and producing results today, while transformational leaders spur innovation and look toward tomorrow. In either case education and training can be an effective tool in advancing one’s abilities as a leader.

What leadership style does your company need?

6 Steps for Benchmarking Best Practices

In Lean improvement, benchmarking is the regular, systematic measuring of an organization’s own products, services or processes against those of the recognized best practitioners in the world. The information collected about a company’s own processes analyzed in relationship to the best-in-class practices provides insight into the actions the company can take to improve its performance. Indeed, benchmarking analysis can even provide metrics by which an organization can measure its success in adding value to its business and work processes.

The key steps involved with benchmarking include:

Measure current practices: Teams determine an area where the company is underperforming. They then measure key performance indicators to see where they currently stand.

Research best practices: After measuring their own performance, businesses then measure those same key metrics in whatever operation or process they want to improve. Understand how your process work and how other group’s processes work.

Analyze best practices: Teams analyze how companies achieve a high standard in the key metrics. This often requires touring the world-class organization’s operations or meeting with people from the organization. Collection information and data to evaluate and compare.

Compare performance: Teams then compare their operations with those of the world-class organization, finding areas where they can make improvements. These changes will help them achieve a higher standard in the key performance metrics.

Model best practices: Teams make significant changes to improve current practices from what they learned. The project team’s next step is to set goals for the improvement of the company’s existing process. These goals can, and probably should, be stretch goals that will result in a process even better than the other organization’s best-in-class process.

Repeat

While benchmarking is not a perfect process if done properly and consistently it can be the start of improving your business and creating a more optimal learning environment.

One of the biggest advantages of benchmarking is the extent of improvements the organization makes by learning from the processes of others. A better and proven process can be adapted, with suitable modifications for company requirements, with less time invested for inventing new methodologies. Benchmarking also uncovers new ways of improving a company’s own processes by motivating actions learned from studying and experiencing those organizations with best-in-class processes.

Lean Quote: Eight Leadership Functions to Improve Ability

On Fridays I will post a Lean related Quote. Throughout our lifetimes many people touch our lives and leave us with words of wisdom. These can both be a source of new learning and also a point to pause and reflect upon lessons we have learned. Within Lean active learning is an important aspect on this journey because without learning we can not improve.

"Leadership is essentially another-centered activity not self-centered one."   —  John Adair

John Adair (b.1934) is one of Britain's foremost authorities on leadership in organizations. Adair identifies eight leadership functions all leaders need to be able to perform, each of these must be constantly refined and developed:

1. Defining the task – this should be done using SMART goals (Specific, Measurable, Achievable, Realistic, Time-bound)

2. Planning – leaders should be open-minded, positive and creatively searching for alternatives

3. Briefing – team briefings by the leader are a basic and essential function to foster teamwork and motivate individuals

4. Controlling – leaders need self-control, good control systems in place and effective delegation and monitoring skills

5. Evaluating – leaders must constantly assess the consequences of actions taken, evaluate performance and appraise and train individuals

6. Motivating – Adair identifies 8 basic rules for motivating people that include setting realistic but challenging targets, creating a motivating environment and treating each person as an individual

7. Organizing – good leaders must be able to organize themselves, their team and their company

8. Setting an example – the best leaders naturally set a good example for their teams, if this is forced, leaders will become complacent.

Adair considers that these leadership functions need to be developed and honed to constantly improve the leader's ability.

A Model for Team Leadership and Management

There are countless resources and models of leadership theory and whilst you need to find your own path in the world, it is helpful to stand on the shoulders of others rather than relearning centuries of leadership lessons.

Action Centered Leadership is a model developed by John Adair in the 1960’s. The model is a simple template which can be used to guide us in the management and leadership of any team. It is easy to remember and apply, and to adapt for your own situation.

Adair’s theory claims that leaders are responsible for three functions that are represented by three overlapping circles:

1. Achieve the task

2. Build and maintain the team

3. Develop the individual

The three circles typify the core areas of concern for the leader which are: achieving the common task; developing and meeting the needs of individual team members; and building and maintaining the team. If all three elements are satisfied, then the team becomes effective, achieving the required results.

Each element of the model is of equal importance and success comes when the right balance is achieved between all three. An effective leader will vary the degree of emphasis upon the three components in order to respond to any situation, but still be mindful of the fact that each element has an influence upon the other two.

The leader is the person who establishes responsibilities, including objectives and measures. This means that, according to Action Centered Leadership, the leader sets the norms and standards and checks and reports on the achievements and progress of the general goal of the team and the individual employee.

With regard to the individual employee, the leader has the responsibility to discuss and evaluate the personal skills and results. In conversations with employees, he’s responsible for asking about the personal needs and to facilitate further development of the employee.

One of the key strengths of the Action Centered Leadership model is that it is simple and therefore easy to remember. The model proposes that to be a good manager or leader you must have command of, and make use of, all three aspects of the model. Obviously as the model is so simple you will need to adapt it as necessary to you own situation – perhaps putting more effort and time into team management than the management of individuals, for example.

An important point about the model is that it anyone can use it regardless of the position within an organization. So do you think this is a model you can use for team leadership and management.

5 Ways to Show Worker Appreciation on Labor Day and Beyond

Happy Labor Day to all my American readers! The purpose of the holiday is to celebrate the social and economic achievements of America’s workers. Labor Day celebrates us all — our achievements and contributions to the strength, prosperity, and safety of our nation.

Labor Day usually means a day off to relax, have a barbecue, or go to a parade. But it’s also fitting to celebrate in the office. Labor Day is an opportunity for reflection on the workplace and the company’s culture. It’s also a great time to recognize your employees for their dedication.

According to a survey by BambooHR, 94 percent of satisfied employees share one thing: They're recognized at work. Organizations that make an effort to support their people and boost morale see results, as happy employees are better problem-solvers and are 12 percent more productive overall.

Here are five ways to show your appreciation this Labor Day and throughout the year.

Host Employee Appreciation Lunches

Everyone loves a free lunch, especially when it's in their honor. Organize a casual meal catered by a popular local restaurant to show employees that management acknowledges their work and contributions to the company.

Coming together in a relaxed setting gives management the chance to chat with employees one on one and get to know them better. Consider inviting a key member of the community who benefits from their work, perhaps a local politician or business owner. Receiving an in-person thank you from a key stakeholder shows employees just how much the work they do matters.

Offer Professional Development

Another way to show employees they're appreciated is to invest in their careers. Plan a training session for employees where they can learn a new skill or refine one they already have. Additionally, think about sponsoring them in a continuing education class or send them to a local conference.

Highlight Employee Achievements

Try recognizing individuals for specific accomplishments rather than congratulating a group of workers altogether. Bringing separate attention to a standout member has been shown to improve performance — for them, the workers around them and the team as a whole.

Consider regularly naming a few employees who have done an exceptional job. Call out employees in an email or newsletter, on the company's website or during an in-person meeting. You could also take time during your employee appreciation lunch to recognize individual contributions.

Lend an Ear

There is always room for improvement in every workplace. Taking the time to listen to your employees' needs is a great place to start. You can either host an open forum to solicit feedback or allow your employees to submit anonymous comments.

Soliciting feedback on your company's culture can help foster a more open environment where communication flows freely. When the needs of your employees are heard and efforts to address them are made, everyone benefits from a more positive and productive workplace.

Be Flexible

You can acknowledge employees’ busy lives and support their work-life balance by being flexible with their hours over the Labor Day weekend. Employees will appreciate the gesture and come back ready to work after the holiday.

As millions of Americans are quitting their jobs and rethinking what they want when it comes to work and work-life balance. Companies are responding, meeting their employees’ needs in areas like remote work, flexible hours, four-day workweeks, compensation and more.

To keep your employees truly happy and engaged, though, recognition can't come just once a year. So consider using this Labor Day as an opportunity to plan and schedule ways to shine the spotlight on your employees on a regular basis. Doing so will go a long way toward building trust and respect with your employees, increasing the satisfaction and sense of empowerment they get from their membership.

Lean Quote: Help People See the Bigger Purpose for Endless Happiness

On Fridays I will post a Lean related Quote. Throughout our lifetimes many people touch our lives and leave us with words of wisdom. These can both be a source of new learning and also a point to pause and reflect upon lessons we have learned. Within Lean active learning is an important aspect on this journey because without learning we can not improve.

"When we work for a bigger purpose, we find an endless supply of happiness at work."   —  Jon Gordon, author and motivational speaker

Great leaders regularly bring people closer to their purpose and the purpose of their work. If the vision for the organization is not inspiring—or is only to make a profit—it is pretty challenging to inspire others and get them to rally around it.

Employee engagement research states that for people to feel a connection with their work, they need to be able to envision themselves achieving purpose at work. An astute leader nurtures alignment among their workforce by linking the key performance indicators of each role in the organization to the overall key performance indicators and objectives of the business.  When people are able to “connect the dots” from what they do each day to how it impacts the customer—and maybe even the world at large—they are much more engaged and concerned for what they do and how well they deliver it.

Here are some ways to help people see the big part they play:

• Always connect the mission with the numbers. Balance communication about profits or margin with stories about the real difference you’re making with customers.
• Company culture is about regularly talking about the mission of the organization and connect people’s jobs to the mission.
• Have each person write their own job purpose, not just from a function perspective, but from their relationship with the client/customer. Write out your own as a leader too!
• Keep supporting people to see the line of sight between their job and what really matters. Keep connecting the dots. How does what they do really matter.
• Make sure every meeting highlights some way your people have really made a difference in the lives of real people–EVERY MEETING

Lean Roundup #159 – August 2022

A selection of highlighted blog posts from Lean bloggers from the month of August 2022.  You can also view the previous monthly Lean Roundups here.  

 

Root Cause to Solution Identification Simplified – John Knotts shares simple concepts, called Divergent to Convergent Thinking, Silent Brainstorming, Affinity Diagraming, and Tree Diagraming you can quickly use to determine the root causes of a problem and identify potential solutions.

 

Kaizen Kaizen Kaizen – Bob Emiliani says for Lean management to finally fulfill its mission to displace classical management Lean practitioners must return to Toyota-style kaizen.

 

What is Courage & How does it relate to True North? – Pascal Dennis explains achieving True North requires all the cardinal virtues and none more than courage.

 

Everyday Collaboration – Bruce Hamilton explains the greater amplification to our continuous improvement efforts lies in our ability to work together in the moment to solve many small problems. 

 

What is One-Piece Flow? – Christoph Roser explains the often misunderstood concept of one-piece flow.

 

Maybe “Just in Time” (JIT) Should Be Called “Short Lead Time” (SLT) Supply Chains – Mark Graban discusses the confusion with the term JIT and why it should really be called something else.

 

Achieve Alignment with Hoshin Kanri - Matt Banna describes how your organization can take strategic planning to the next level with Hoshin Kanri.

 

How to Test Your A3 Thinking – Tracey Richardson shares an approach that could help you test the logic of your A3 thinking.

 

Ask Art: Is Lean a Good Cost-Reduction Program? – Art Byrne explains why lean thinking and practice is a business strategy, not merely a cost-cutting strategy.

 

Tell me about your metrics and I’ll tell you who you are - Flávio Battaglia says management by indicators can be a trap leading us to make decisions that are inconsistent with the real needs of a company and balance between facts and data is key.

 

Lean through four generations – Jim Womack says every lean generation has faced challenges, and it’s critical we understand the context around us if we are to continue to grow our Community.