Episode 964: Transformation versus Transaction

[00:00:00] Scott Maderer: Thanks for joining me on episode 964 of the inspired stewardship podcast.

[00:00:07] Joel Hawbaker: I'm Joel Hawbaker, teacher speaker, and author of inverted leadership. I challenge you to invest in yourself, invest in others, develop your influence and impact the world by using your time, your talent and your treasures to live out your.

[00:00:22] Having the ability to lead through confident humility is key. And one way to be inspired to do that is to listen to this, the inspired stewardship podcast with my friend Scott Mader,

[00:00:32] Scott Maderer: but the impact of transactional leadership tends to be much more maintaining the satisfied. So if everything is perfect and transactional leadership works, but when things are not perfect, then is when you need true transformation. Welcome. And thank you for joining us on the inspired stewardship. If you truly [00:01:00] desire to become the person who God wants you to be, then you must learn to use your time, your talent and your treasures for your true calling and the inspired stewardship podcast.

[00:01:10] We'll learn to invest in yourself, invest in others and develop your influence so that you can impact the

[00:01:18] Joel Hawbaker: world.

[00:01:19] Scott Maderer: And today's episode about investing in others through stewarding your talent. I talk with you about the difference between a transformational leader and a transactional leader. I talk about why transformational leadership is harder, but makes more lasting change. And I also share how each has the ability to get results, but the long-term impact is different.

[00:01:40] You've heard me talk about developing your talent and what are the best ways to do that is through books. But if you're like most people today, it's hard to find the time to read. And that's why today's podcast is brought to you by audible. Go to inspired stewardship.com/audible to sign up [00:02:00] and you can get a 30 day free trial.

[00:02:02] There's over 180,000 titles to choose from. And you can pick one and listen your way to developing your talents via. That's inspired stewardship.com/audible to get your free trial and listen to great books the same way you're listening to this podcast. On Monday's episode, Roy talked a little bit about transactional and transitional leader.

[00:02:30] And the truth is both of those are leadership types and they both have good and bad things about them. One is not always better or worse than the other, but let's talk a little bit more about what they are. Transactional leadership style is what I would often call a manager, which is not a bad thing.

[00:02:53] They, this is a philosophy that involves reinforcement and exchanges that manage the [00:03:00] employees towards specific goals, and then offers them a reward for achieving. That's the transaction in transactional leadership and effective transactional leaders recognize and reward a follows followers, accomplishments in a timely.

[00:03:18] Transactional leadership is practical in nature because it's very focused on meeting specific targets and objectives. Oftentimes transactional leaderships are found in management kinds of positions or in positions in companies where there's a focus on producing a certain amount or having a quick.

[00:03:40] Per shift or this sort of thing. And it has a tendency to enforce and maintain the status quo because you use actions and processes that have proven to be successful. And then you continue to use those. You don't have a tendency to innovate and it tends to [00:04:00] work best if employees are self-motivated and don't need to have inspiration or motivation to move forward.

[00:04:08] Transformational leadership on the other hand. Around are structured around intellectual stimulation, individual consideration, inspirational motivation, and idealized influence what people will often call the four eyes. This is the idea that a transformational leader focuses on nurturing and positively motivating their employees.

[00:04:33] They don't micromanage instead of. Foster and create an independent workplace. One that promotes creativity, desires, innovative thinking, and empowers employees to make their own decisions. It gives them some level of autonomy. Transformational leaders emphasize personal and professional growth and encourage all employees to think creatively in developing solutions to longstanding challenges.

[00:04:58] Then this [00:05:00] works well. In organizations where the goals include developing the talent of employees, not just focusing on production quotas or sales goals, transformational leadership can also be the preferred approach in an environment where there's newness or there's a need for innovation or creativity.

[00:05:22] And there may still be, and there are still financial resources, deadlines, certain quotas, other things, but those rules are allowed to be innovated on there's change is encouraged. And again, like I said, at the beginning, it's not really that one of these is better and the other is worse. They're both have values.

[00:05:46] Transactional leaders are very good at employee supervision. They're very good at keeping the trains running on time, but transformational leaders are often better in times of [00:06:00] change. And when we need to develop and grow employees, They're better at strategy and the other is better at tactics and both are needed.

[00:06:11] But when you think about making lasting change, especially when things are struggling, when times are bad, when there's a difficult challenge to get through, you need transformational leadership. You need to move away from some of the transactional leadership and begin to introduce transfer migrational leaders.

[00:06:34] Instead that encouragement, that motivation, that vision drives the company forward through change. So they compliment each other. You need both, but transformational leadership is often needed in times of challenge because it creates lasting change because of that innovation factor, because of that development factor, because of the [00:07:00] fact that it continues to grow.

[00:07:03] Each other, but the impact of transactional leadership tends to be much more maintaining the status quo. So if everything is perfect, then transactional leadership works. But when things are not perfect, then is when you need true transformation. Thanks for listening.

[00:07:27] Thanks so much for listening to the inspired stewardship podcast as a subscriber and listener, we challenge you to not just sit back and passively listen, but act on what you've heard and find a way to live your call. If you liked this episode on the stewardship of talent, you can go over to inspired stewardship.com/talent and sign up for our five week series on the stewardship of talent.

[00:07:58] Or if you're in the us, you [00:08:00] can text 4, 4, 2, 2, 2 talent tips. That's talent tips to 4 4 2, 2, 2, and get those tips until next time. Invest your time. Your talent and your treasures develop your influence and impact the world.