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• In transformational Leadership, leaders with the help of team members, identify the needed
change, generate a vision via inspiration to guide the change, and execute the change in
unison with the team members.
 When employees are motivated to perform well by the leader’s behavior, it is
called transformational leadership.
 The attitude of the team members and the company as a whole is influenced
positively.
 Transformational leaders are flexible to changes in various circumstances, share a
combined awareness, are inspirational leaders to the team and are able to self-regulate.

• These leaders help followers’ individual needs by empowering them and aligning the
objectives and goals of the individual followers, the leader, the group and the larger
organization. (Bass and Riggio, 2006)

TRANSFORMATIONAL LEADERS TRANSFORM FOLLOWERS INTO LEADERS THEMSELVES

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Individualized Consideration
Individualized Consideration is the extent to which a leader attends to each follower’s needs
and is a mentor, coach or guide to the follower. This leader listens to the concerns and needs of
each follower and provides support and is empathic of each person’ situation and background.
When a leader shows individualized consideration they are also aware of the unique talents that
each follower brings to the workplace and support them in developing and demonstrating these
key skills and behaviors. This leads the follower to aspire to develop further and they show
intrinsic motivation when performing their work.
Inspirational Motivation
Inspirational Motivation is the degree to which a leader articulates an appealing vision that
inspires and motivates others to perform beyond expectations. Leaders who use inspirational
motivation have high standards and expectation for their followers.
They are optimistic about follower ability to meet goals and they always provide meaning to
their followers through showing the importance of all duties and responsibilities. In fact, they
are able to motivate their followers to have a strong sense of purpose so they provide purpose
and meaning to drive their group forward. This encourages followers to invest more effort in
their tasks and to be optimistic about the future and to invest in their own abilities.
Team spirit is usually enhanced by this type of leadership. Here is an example of speech that
was used in a research study by Howell and Frost and exemplifies transformational
leadership (Howell & Frost, 1989, p250):
The result of this project could go a long way towards changing the way business schools train
their students. We hope this project will have a direct effect on how managers are trained in the
future. What you are doing today is going to have an impact on your own future. As you go
through the exercise, I really want you to be as creative and imagine as you can ….Don’t be
afraid to take risks. Trust your instincts.
Idealized Influence
Transformational leaders who show Idealized Influence are role models for their followers
because they engage in high standards of ethical behavior. Followers identify with these leaders,
and want to emulate them.
These leaders usually have very high standards of moral and ethical conduct and can be
considered to doing the right thing. They are deeply respected by followers, who usually place a
great deal of trust in them. They provide followers with a sense of vision and mission.
Intellectual Stimulation
Intellectual Stimulation is the extent to which transformational leaders challenge assumptions,
take risks and solicit followers’ ideas. They recognize followers through stimulation, creativity
and innovation.
The leader support and collaborates with the followers as they try new approaches and develop
innovative ways of dealing with organizational issues.
The leader encourages followers to think things out on their own and encourages followers to
think independently so that followers become autonomous.
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• Leadership competencies are leadership skills and behaviors that contribute to superior
performance. By using a competency-based approach to leadership, organizations can better
identify and develop their next generation of leaders.2 Essential leadership competencies and
global competencies have been defined by researchers. However, future business trends and
strategy should drive the development of new leadership competencies. While some
leadership competencies are essential to all firms, an organization should also define what
leadership attributes are distinctive to the particular organization to create competitive
advantage.

Essential Leadership Competencies

A focus on leadership competencies and skill development promotes better
leadership.3 However, skills needed for a particular position may change depending on the
specific leadership level in the organization. By using a competency approach, organizations can
determine what positions at which levels require specific competencies.4 Researchers at the
Center for Creative Leadership have identified some essential leadership competencies that are
consistent among organizations. They divide the overall structure into competencies for leading
the organization, leading the self and leading others in the organization (see Figure 1).

When selecting and developing leaders, HR professionals should consider the competencies
that the individual possesses and compare those to the ones that need further development for
success in a leadership role. By looking at his/her current competencies and comparing those to
the skills necessary to fill a leadership position, organizations can make better informed
decisions in hiring, developing and promoting leaders.5
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Transformational leaders are:

Inspired by potential. The difference between those who manage and those who inspire is
the ability to show employees their true potential and support them in achieving it.
Leaders who promote confidence and optimism to encourage employees to go beyond
expectations and work together to achieve organizational goals.

Energized by challenges. Leaders who encourage new perspectives and foster an

organizational culture where intellectual curiosity, openness, and creativity are encouraged
and rewarded are better equipped to embrace change, seize opportunity, and find creative
solutions that elevate the organization above the competition.
Driven by values. Leaders who act with integrity and put the best interests of the
organization and the wider community ahead of short-term gains create sustainable success,
elicit loyalty from employees, and build trust with the wider world. By modeling honesty,
transparency, and humility, they raise the integrity of the entire organization.

Focused on people. When leaders are able to make personal and emotional connections
with others— whether with employees, stakeholders, or the general public—they
contribute to the strength and resilience of the organization and the broader community in
which it operates. They create a healthy, diverse organizational culture in which different
perspectives and experiences thrive, and foster increased commitment from employees.
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1. Creative
• They are always looking for new ideas and ways to do things
• They challenge business as usual
2. Interactive
• Communicate a lot with followers
• Engage with other people
• Through this communication they become more aware of their followers needs and
motivations
• A saying goes “Only when a leader is involved with followers can he/she find ways to do
better.
• Great example is Barack Obama – 44 th Pres of US

3. Visionary
• With a sense of purpose
• Creates a standard of excellence that inspires others
• Dr. Martin Luther King Jr. – known for his Civil rights movement in the 1950s and 1960s
August 28, 1963 : “I have a dream that one day this nation will rise up and live out the true meaning
of its creed: “We hold these truths to be self-evident that all men are created equal.”
“I have a dream that my four little children will one day live in a nation where they will not be judged
by the color of their skin but by the content of their character.”
4. Empowering
Delegate, encourage and trust others to take action
5. Passionate
True believers in their cause
Mother Theresa
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Level 1: Position
Position is the very first level of the 5 Levels of Leadership, and it represents the beginning of
everyone’s leadership journey. Leadership at this level is granted because you receive a job title,
but you haven’t yet built the influence to command respect from colleagues, either inside of or
outside of your team.
While you have authority over your team, at level 1 you don’t wield any real influence over
them so its hard to get the most out of them. Your team does what you tell them because they
have to.
At level 1, you might be the boss, but you aren’t yet a leader. As such, it’s important not to see
being given a management job title as your goal. Instead, try to see it as your starting point.
Upsides of Level 1
Some of the upsides of becoming a level 1 leader include:
You’ve been given a leadership position because you deserve it, and this is something to
celebrate.
It allows you to think about what kind of leader you want to be, e.g. What’s your style? What
are your values? You’re at the beginning of your leadership journey, so now is an excellent point
to think about these things.
Downsides of Level 1
Positional leaders don’t get the best out of their team; they probably get the minimum.
Positional leadership can be misleading, i.e. just because you have a particular job title does not
make you a leader.
Position leaders can focus on politics and getting the next job title.
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How to Make the Most of Your Position

Don’t push people, help them and take an interest in them.
Don’t expect your people to come to you, you must initiate things to earn their respect.
Laws of Leadership at the Position Level
Lid: to unlock your effectiveness, you must commit to developing yourself as a leader.
Process: Recognise that developing yourself as a leader is a lifelong process.
Navigation: Recognise your limits. You might be able to steer the boat, but you’re not yet ready
to chart the course.
Beliefs to Get to the Next Level
Before you can get to the next level, you must upgrade your beliefs:
Your job title isn’t that important. It’s the work you do and how you help others.
Your position is a tool you can use to help others, but people are your most valuable asset.
A good leader doesn’t need to have the answer, they can work with others to find the answer.
Good leaders include others.
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Level 2: Permission
On this level of the 5 Levels of Leadership, your team follows you because they want to. You
listen to your people and they, in return, listen to you.
Leaders on this level make people know that they matter. They make each member of their
team feel important.
On this level, people want to work for you because they feel liked, valued, included, and trusted.
Because of your strong relationships, people permit you to lead them.
As your relationships grow, so does trust, and the workplace becomes a more positive place.
Lasting relationships create the foundation of Level 3.
In a nutshell, this level is all about relationships.
Upsides of Level 2
Some of the upsides of becoming a level 2 leader include:
Work is more enjoyable when you get on with your team, and they get on with you.
Spending time amongst people you like boosts everyone’s energy.
Good relationships are formed when people value and respect each other.
Two-way communication occurs at this level. You listen to your people, and they listen to you.
This leads to better decision making.
Downsides of Level 2
Being so focused on relationships can make you seem weak as a leader.
It can be frustrating to work in this way if your ambitious and just want to get things done.
To be effective, you need to be open.
You can leave yourself open to being taken advantage of.
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How to Gain People’s Permission

You must get to truly know yourself before you can openly get to know others.
Develop a leadership style that is focused on people, rather than tasks.
Treat others as you yourself want to be treated.
Praise, along with words of encouragement are important. Be your team’s chief encourager.
It is important to balance care for team members with candor.
Laws of Leadership at the Permission Level
Influence: The true measure of your leadership is your influence.
Addition: Add value by helping and serving others. Focus on people, not systems.
Solid ground: Be trustworthy.
Magnetism: Be the type of person you want to attract.
Connection: Work on relating to people.
Buy-in: Work to get people to buy-into (trust) you.

Beliefs to Get to the Next Level

Recognize that there is more to leadership than just influence; you have to take people
somewhere.
As well as growing closer, you must grow together.
Sometimes it’s worth risking a relationship to achieve a vision as a team.
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Level 3: Production
This level of the 5 Levels of Leadership is about delivering results. This level separates true
leaders from leaders who simply hold a position.
There is more to being a leader than getting on with people. Great leaders get results. When
followers see you achieving great results, it gives them a reason to follow you. When you deliver
exceptional results, your leadership intensifies.
It’s on level 3 that influencing others can become fun. This is the first level where a leader can
become a change agent: tackle thorny issues, big projects, and take their followers to the next
level.
A history of achieving results combined with excellent relationships enables you to move your
team towards the organization’s vision.
Upsides of Level 3
Some of the upsides of becoming a level 3 leader include:
Your credibility increase when you deliver results.
Your results set a standard for your followers, further increasing results.
Delivering results builds momentum.
People see your results and want to be part of your team.
Downsides of Level 3
You can fall into the trap of thinking your a better leader than you are. You need to achieve
results for your team as well as for yourself.
There is a weight of responsibility associated with having to continually achieve results.
Even though you are focused on results, you must not lose sight of your people. Level 2 is still
important.
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How to Make the Most of Production in Leadership

Figure out where your strengths lie and focus on these areas.
Communicate a clear vision. This will help with team productivity.
Encourage your people to work together. This is the foundation of building a team.
Focus on areas with the highest return, and never lose sight of the fact that results are your
goal.
Laws of Leadership at the Production Level
Respect: People will naturally want to follow leaders they see as stronger than themselves.
Magnetism: Who you are is who you attract.
Picture: People’s behavior mirrors what they see each day.
Victory: Find a way for your team to win.
Big Mo: Momentum is your new best friend.
Priorities: Focus on results and not activities.
Sacrifice: Let go of nonessentials.
Buy-in: People will buy-in to you as a leader before they buy into your vision.

Beliefs to Get to the Next Level

Production isn’t enough. Think about how you can help people get to the next level in their lives
and careers.
Value, challenge and develop your followers.
Growing leaders is the quickest way to achieve a vision.
Developing your people gives you great fulfillment.
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Level 4: People Development

At this level of the 5 Levels of Leadership, leaders change from focusing on delivering results to
developing people. Leaders at this level reproduce themselves.
Leaders at this level reproduce and grow their influence as they transform followers into leaders
in their own right. As the unique strengths of each new leader are unleashed, the entire
organization rises to a higher level.
This level is all about reproduction.
Upsides of Level 4
Some of the upsides of becoming a level 4 leader include:
At level 3, you focus on results, but at level 4, you deliver even better results by focusing on your
people and empowering them to achieve.
Only by growing people can success be sustained.
If you grow others, it gives you the space to work on bigger things.
It is hugely rewarding to see others develop.
Downsides of Level 4
If you are insecure, you can feel threatened by the prospect of developing others.
You must be willing to focus on the long-term. If you stay focused on the short-term, it can be
hard to see the justification for developing your people.
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How to Develop People

Recruit only the best people you can.
Place people into the right positions.
Model to others the leadership behavior you expect from them.
Coach others to live well and perform well.
Empower others so they can succeed.
Laws of Leadership at the People Development Level
Process: Leadership is a process; it doesn’t happen overnight.
Addition: You add value when you serve others.
Inner circle: Those in your inner circle determine your potential.
Empowerment: Only a secure leader is willing to give power to others.
Explosive growth: Developing new leaders is the only way to explosively grow the organization
in a way you could never achieve on your own.
Buy-in: People will buy-in to you as a leader before they buy into your vision.
Beliefs to Get to the Next Level
Your biggest goal as a leader is to create more leaders.
Believe in developing a leadership culture: teach, practice, coach, and reward leadership.
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Level 5: Pinnacle
The highest level of the 5 Levels of Leadership is level 5. Maxwell argues that not many people
make it to this level and those that do are naturally gifted.
Level 5 leaders develop their followers into level 4 leaders.
Developing leaders who can lead and not just follow is hard. It takes great skill, judgment, and
commitment. But if you succeed, you will create a level 5 organization: an organization that is
functioning at an extraordinarily high level.
Upsides of Level 5
Some of the upsides of becoming a level 5 leader include:
It provides your leadership with reach. People will seek you out for advice.
It creates a level 5 organization.
You will create a legacy within the organization
Downsides of Level 5
You can forget that there is always more to learn and more room to grow.
You can start to believe your own press.
You have to work hard to maintain focus on the vision.
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How to Use the Pinnacle as a Platform to do Something Greater than Yourself

Remain humble and open to learning.
Create an inner circle to help keep you grounded.
Create room at the top.
Focus on what only you can do (your core strength).
Plan your succession and your legacy.
Laws of Leadership at the Position Level
Respect: People naturally gravitate toward leaders who are stronger than themselves.
Intuition: You will be able to see what courses of action lead to what outcomes.
Timing: You will have learned how to take the right action at the right time.
Legacy: You legacy will be measured by your successors.
Explosive growth: Developing new leaders is the only way to explosively grow the organization
in a way you could never achieve on your own.

5 Levels of Leadership Summary

Sometimes leadership books can read like a giant recipe, listing a multitude of things that you
need to do and believe to consider yourself a great leader.
One of the things I really liked about this book is that it doesn’t do that. It helps you to figure
out where you are right now as a leader and then gives you some advice to help you get to the
next level, no matter what level you’re on right now.
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• Build on the previous level – When you move up a level, you must build on the previous
level meaning you don’t leave a level behind.
• Leadership is dynamic – you can work a different leadership level from one team member
to the next.
• The higher you go, the easier it becomes to lead.- the more respect others have to you
• There are no shortcuts.- No shortcuts to get to the next level, each level requires more
effort and time from you.
• Moving up takes time, but moving down can happen quickly.-
• The higher you go, the greater the returns. Or the bigger the scope of your leadership
• Moving to the next level always requires growth. – be it personal or professional
• Not getting to the next level limits you & your team – not getting to the next level not only
limits you but also limits your team members
• You rarely stay at the same level when you change position/organization.
• You cannot climb the levels alone. – you need help.