Transformational Leadership
A third approach to enhancing the need for change is through transformational leadership. Leadership in general and transformational leadership, in particular, continue to command attention in the change literature—not surprising, given its stature in Western culture and mythology. From George Washington to Adolf Hitler, from Nelson Mandela to Saddam Hussein, we elevate heroes and condemn villains.
The same is true for the corporate world. Steve Jobs’s resuscitation of Apple, Anne Mulcahy’s transformation of Xerox, Thomas Tighe’s work at Direct Relief International, Oprah Winfrey’s growth of a media empire, Richard Branson’s entrepreneurial initiatives at Virgin, and Elon Musk’s development of PayPal, SpaceX, and the Tesla automobile are examples of the work of successful transformational leaders. The appeal of charismatic and transformational individuals is powerful. In addition to effectively framing the change vision as noted above, they have the capacity to create strong, positive personal connectedness and a willingness to change in followers that often overrides the followers’ personal concerns. However, corporate scandals (e.g., Bernie Ebbers of WorldCom, Bernie Madoff of Madoff Investment Securities, Angelo Mozilo of Countrywide Financial, and John Stumpf of Wells Fargo) remind people of the risks of idolizing transformational exemplars. Even GE’s Jack Welch’s image took a beating with published reports of his divorce battles and the size and nature of his retirement package.58 Caution is needed if you are relying on charisma to induce followers to change an organization. Charismatic appeals can prove powerful and helpful, but there are good reasons for people to be suspicious of charismatic appeals because history demonstrates that personal magnetism is not always directed toward desirable outcomes.
It is important to note that many leaders are very effective change agents without being particularly charismatic. Some of those who have proven to be most influential in nurturing long-term organizational success have been much quieter in their approach.59 Such a list would include Meg Whitman, CEO of HP; Satya Nadella, CEO of Microsoft; Warren Buffett of Berkshire Hathaway; Michael Latimer, president and CEO of OMERS, a large Canadian pension fund; Ursula Burns, CEO of Xerox; and Ellen Kullman, CEO of DuPont.