A Transformational Leader Mindset, Toolbox to Build a Strong Strategy in SMEs

A Transformational Leader Mindset, Toolbox to Build a Strong Strategy in SMEs

By Mostafa Sayyadi, Management Consultant |Business & Technology journalist

The key to Transformational leadership is based upon satisfying basic needs and meeting higher desires through inspiring followers to provide newer solutions and create a better workplace. Transformational leaders actually employ charismatic behaviors and motivate subordinates to provide better outcomes, more profitability, and satisfying careers. These leaders focus on critical human assets such as commitment and thus help followers to effectively implement organizational changes with both efficiency and effectiveness. It is this leadership style that sheds light on the strategic role of follower attitudes and values to accomplish a higher degree of effectiveness and highlights the importance of employees in implementing changes at the organizational level. In today’s global business environments that involve a high level of uncertainty, SMEs will increasingly need more transformational leaders to be more innovative and creative. 

The organizational strategy includes four dimensions: analysis, pro-activeness, defensiveness, and futurity. The first aspect, “analysis,” focuses on identifying the best solutions for the organizational problem. Transformational leaders apply this strategy to create more innovative solutions for organizational problems. The second aspect “futurity” emphasizes the effectiveness of long-term decisions. Transformational leaders employ this kind of strategy to develop a vision of adopting more comprehensive information about the future. The third aspect, “defensiveness” can also be applied by transformational leaders by taking into account the objectives of the strategic implication that seeks to decrease organizational costs and redundancies. While transformational leaders focus on implementing changes, a defensive strategy can be used to modify the current processes to enhance organizational efficiencies. The fourth aspect, “futurity” incorporates a pro-active strategy that identifies the opportunities that are available but not always addressed in the business, the global environment, and the political regulation changes. This kind of strategy can be also enhanced by transformational leaders as they adopt a strategic posture that inspires employees to identify better opportunities in both the internal and external environment. 

Organizational strategy can be employed by transformational leaders to effectively manage organizational knowledge. For example, an analysis strategy could enhance the knowledge creation process by identifying new opportunities in order to provide better alternatives for managers to make a more effective decision. Analysis strategy is highly associated with an SME’s capacity to create new knowledge. In many ways, a proactive strategy could enhance knowledge transfer by developing interactions with both departmental units and the business environment. When adopting a more futurity type strategy, transformational leaders can enhance the knowledge utilization process, thereby developing guidelines for future pathways and determining future trends in the external environment, and allocating their resources accordingly. Transformational leaders can, therefore, exploit organizational knowledge through embracing the four strategic aspects of analysis, pro-activeness, defensiveness, and futurity.

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