Leading for Tomorrow: Transformational Leadership and Innovation–Two sides of the same coin

A quick search on a job portal using the term "innovation" returned over 10,000 hits. I was surprised and decided to repeat the search, but I got the same result. This suggests that “innovation” has become a buzzword widely used by organizations to capture attention. Perhaps more importantly, innovation is being recognized as a key driver of future growth and transformation in companies and organizations, and therefore, new strategies and competencies are needed. 

Looking at the labor market today, most would agree if I said I have a feeling that a lot is happening at the same time. We have just passed the Covid-19 pandemic, the world is uncertain, and AI and technology are challenging companies to innovate new products, business models, and management methods. If they don’t, they will risk being left behind or simply not exist in the next few years.

When I started my education and coaching company 8 years ago, using Skype to coach clients was seen as progressive. However, organizational structures and old habits, combined with a narrow-minded attitude to testing new techniques, required me to travel to Stockholm from Malmö with all the administration connected to it. Today, only 4 years later, online coaching on Zoom is standard, and no one would come up with the idea to question it. So, what happened, and what made the shift from onsite to online so quick and smooth? The  pandemic.

What does it take to change the old and bring the new in?

Resistance to change is common in companies, but you, as a leader, must learn to deal with it. Looking back on the coaching resistance to using video, the pandemic forced coaches and their organizations to use video. They basically had no choice; it was a question of surviving with your business or dying. An important aspect of adaptability is managing stress within an organization. A certain amount of pressure is necessary to drive transformation.

“You can’t change the business unless the people change”

Transformational leadership and innovation are connected; some say they are two sides of the same coin. Transformational leadership drives innovation by inspiring and motivating others and creating visions that constantly challenge the status quo (Instilling positive stress).

However, this is easier said than done, as corporate managers are expected to deliver quarterly reports and show consistent results. Creating an environment where it feels safe to express yourself, take a stand, and accept failure as a normal part of daily exploration—often referred to as psychological safety—is essential but not easy. Without time for exploration, innovation is unlikely to happen.

So, do teams have enough time to explore? 

Aa retired engineer who worked in the technical consultancy business in Stockholm for over 20 years told me that when he started his consultancy career, he had 1 day per week to explore, learn, and experiment.  His company valued innovation and recognized the importance of staying ahead. However, in the years leading up to his retirement, that precious self-directed learning time disappeared.  

If you aspire to be a transformational leader, it’s important to evaluate your organization’s flexibility and understand how the current KPIs impact your decision-making as a manager. 

Ask yourself: How do these metrics align with fostering innovation, empowering your team, and driving essential change? 

Examine whether your KPIs support or hinder your ability to inspire creativity and take calculated risks; by understanding these dynamics, you can better position yourself to lead transformation effectively.

Self-Evaluation: Is Your Environment Ready for Transformational Leadership?

Evaluate your current environment and leadership style by reflecting on the following statements. For each statement, rate the extent to which you agree on a scale from 1 to 5:

1 = Strongly Disagree

2 = Disagree

3 = Neutral

4 = Agree

5 = Strongly Agree

1. Risk-Taking and Failure: My team feels safe to take risks, and failure is viewed as a learning opportunity.

2. Open Sharing of Opinions: Team members feel comfortable openly sharing their opinions, even if they differ from the norm.

3. Welcoming New Ideas: Challenging perspectives and innovative ideas are welcomed and encouraged.

4. Proactive Behavior: Teams and individuals consistently take initiative and act proactively.

5. Transparent Communication: Communication is highly transparent across all levels of the organization.

6. Inclusive Decision-Making: I actively involve team members in decision-making processes that affect their work.

7. Managing Fear and Resistance: I am aware of how fear and resistance affect my team, and I have strategies in place to address them constructively.

Scoring and Reflection:

35-28: Your environment highly supports transformational leadership and innovation. Keep nurturing these qualities!

27-21: Your environment shows potential for transformational leadership but may need improvements in certain areas.

20-14: Your environment has room for growth to support transformational leadership and innovation fully. Consider focusing on areas with lower scores.

13 and below: Significant changes are needed to foster an environment that supports transformational leadership. Reflect on areas with the lowest scores and explore strategies for improvement.

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