Leader's cave

30/08/2021

In Poland, as well as in the world, we are facing a watershed moment - a switch from transactional to transformational leadership. Not true? Harsh truth. For several years I have been working in almost every industry and I can see it at every training or workshop. Every organization declares that it is heading towards transformational leadership. In fact, however, we are still half-stuck on the transactional level and do not know how to leave it. This is not a judgment, but a fact.

We have a long way to go, because putting the old tools of success and profit aside is difficult. We are fearful that we will not deliver as in the past, or that we will lose our market position. The new ways of managing and leading have not been tested by everyone yet, seem to be too "soft" to some, and many don't openly admit that they think it is a passing fad.

So what does the cave of a leader who grew up in a hierarchical organization look like? A leader who isn't used to sharing leadership and decision making? It is a cave that is not easy to leave.

-    We are convinced that the rule of a hard hand and Machiavelli's ways of leading are right. Throughout the 1990s, and even at the beginning of the 21st century, there was no other culture of leadership in organizations than hierarchy, and it brought business results - everyone knew who was in charge and who made decisions. The current CEOs are now 50+, and some 40+, so the former grew up in this model, and the latter remember it perfectly well.

- The way to implement the strategy was to delegate tasks, evaluate, reward, sometimes punish. Employees were to be submissive and complying, and the reward was a bonus or promotion. Feedback was there to change someone or their behavior.

- The source of authority was often one's position and title.

Can it not stay that way? Organizations that will remain in transactional leadership, or will strengthen hierarchy, will become less competitive in the market and less effective in the present world. Why?

-  The world is changing too fast and the processes, including the decision-making processes in the hierarchy, are too long to keep up with that change.

- For the first time, we have four generations within organizations, and they are very different. The younger generations do not want to be treated transactionally - they need attention, development, dialogue and inclusiveness.

- Globally, we have reached the end of the road in many areas. Since leaders are not able to obtain the necessary knowledge themselves, we need more conscious leaders who are able to use the knowledge and experience of others. In organizations, no Board of Directors is able to find answers to all questions, because its resources are limited.

So there is no other way than to move from transactional to transformational leadership. How to get out of the cave will be the subject of the next text. I also invite you to my workshops, Conscious Leadership, Transformational Leadership - from Ego do Eco, where we deal with the transformation of individual and collective leadership.