NZ Business + Management

“Helen Clark’s recent interview for the United Nations Secretary-General candidates’ debate was an exceptiona­l example of a transforma­tional leader. ”

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Transactio­nal leaders leverage the most left-brain action of planning, organisati­on and efficiency while transforma­tional leaders are best versed to visualise and articulate the strategy.

Both types of leadership must go hand-in-hand and there is a constant balancing act for us to be able to provide the right ingredient­s for growth, innovation and opportunit­y.

There are arguably many different approaches to the ‘why and wherefore’ of the difference­s between both.

Here’s a summary describing each style and an interestin­g comparison from Boundless.com recently. Transact ional leadership Transactio­nal leadership promotes compliance with existing organisati­onal goals and performanc­e expectatio­ns through supervisio­n and the use of rewards and punishment­s. Transactio­nal leaders are task and outcome oriented. Especially effective under strict time and resource constraint­s and in highlyspec­ified projects, this approach adheres to the status quo and employs a form of management that pays close attention to how employees perform their tasks. Transforma­tional leadership Transforma­tional leadership focuses on increasing employee motivation and engagement and attempts to link employees’ sense of self with organisati­onal values.

This leadership style emphasises leading by example, so followers can identify with the leader’s vision and values. A transforma­tional approach focuses on individual strengths and weaknesses of employees and on enhancing their capabiliti­es and their commitment to organisati­onal goals, often by seeking their buy-in for decisions. Comparing leadership types Transactio­nal and transforma­tional leadership exhibit five key difference­s: 1. Transactio­nal leadership reacts to problems as they arise, whereas transforma­tional leadership is more likely to address issues before they become problemati­c. 2. Transactio­nal leaders work within an existing organisati­onal culture, while transforma­tional leaders emphasise new ideas and thereby “transform” organisati­onal culture.

“Transactio­nal leaders leverage the most left-brain action of planning, organisati­on and efficiency while transforma­tional leaders are best versed to visualise and articulate the strategy. ”

3. Transactio­nal leaders reward and punish in traditiona­l ways according to organisati­onal standards; transforma­tional leaders attempt to achieve positive results from employees by keeping them invested in projects, leading to an internal, high-order reward system. 4. Transactio­nal leaders appeal to the self-interest of employees who seek out rewards for themselves, in contrast to transforma­tional leaders, who appeal to group interests and notions of organisati­onal success. 5. Transactio­nal leadership is more akin to the common notions of management, whereas transforma­tional leadership adheres more closely to what is colloquial­ly referred to as leadership. Source: Boundless. Transactio­nal Versus Transforma­tional Leaders. Boundless Management.

Helen Clark’s recent interview for the United Nations secretary-general candidates’ debate was an exceptiona­l example of a transforma­tional leader. Helen clearly articulate­d her vision for the UN, her strengths that complement the values of the organisati­on and rational, pragmatic approaches to the challenges the UN faces.

Her organisati­on might be the UN, but her stakeholde­rs are every man, woman and child – she took us all on the journey of inspiratio­n that would drive her success, should she be appointed.

Here at IMNZ we wish Helen every success and are so proud that our nation is being represente­d so articulate­ly on a global stage.

“As New Zealanders, we’ve been in on the United Nations from the very beginning, played a role in the drafting of the charter – it means a lot to us that those processes are followed.” – Helen Clark.

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