In today's rapidly evolving business landscape, characterized by volatility, uncertainty, complexity, and ambiguity (VUCA), organizations face unprecedented challenges. Year over year it became harder for organizations to grow given the changing business environment which frames managing these not ordinary changes with innovative solutions as a matter of survival for all organizations.  

Navigating this environment requires a new leadership style that not only adapts to change but also drives innovation and growth through hard times. Any ship once sailed needs a captain, yet once the storm begins it needs an exceptional captain to lead the ship in this rough ocean. So in my opinion this is the time of Transformational leadership which emerged as a critical approach, empowering organizations to thrive amid uncertainty.

What's Transformation:

According to Cambridge Dictionary, Transformation is “A complete change in the appearance or character of something or someone, especially so that person or thing is improved”. Transformation usually refers to an organization achieving a sustainable quantum-leap improvement in performance while transforming the mindsets of employees and thus the culture of the organization.

The Importance of Transformational Leadership in a VUCA World

Transformational leadership is essential in a VUCA world because it fosters adaptability and resilience. This leadership style focuses on inspiring and motivating employees to exceed their potential, encouraging innovation and creativity. Transformational leaders create a vision for the future and rally their teams around it, fostering a culture of trust and collaboration. This is crucial in a world where change is the only constant, and the ability to pivot quickly can be the difference between success and failure. The pace of technological advancements, global competition, and shifting consumer expectations, demand that organizations continuously evolve. Transformation is no longer optional. Companies that embrace transformational leadership are better equipped to:

• Drive Innovation: By encouraging a culture of continuous improvement and experimentation, transformational leaders help organizations stay ahead of the curve.
• Enhance Agility: These leaders enable organizations to respond swiftly to market changes and emerging trends.
• Build Resilience: Through fostering a strong organizational culture and employee engagement, transformational leaders help build resilience against external shocks.

Competencies of a Transformational Leader

Transformational leaders possess a unique set of competencies that enable them to inspire and drive change effectively. So now successful leader definition is changing. It's not only about being the leader who is an expert in his/her field or a super achiever who achieves his targets, it's about inspiring people to move into change and achieve certain vision despite all challenges. So it's become vital to HR professionals and especially talent acquisition to understand and know the main competencies of a transformational leader to use through the hiring process. In her research Gallup after studying more than 550 job roles found the below 7 expectations from any transformational leader: 

• Build relationships: Establish connections with others to build trust, share ideas and accomplish work.
• Develop people: Help others become more effective through strengths development, clear expectations, encouragement and coaching.
• Lead change: Recognize that change is essential, set goals for change and lead purposeful efforts to adapt work that aligns with the stated vision.
• Inspire others: Encourage others through positivity, vision, confidence, challenge and recognition.
• Think critically: Seek information, critically evaluate the information, apply the knowledge gained and solve problems.
• Communicate clearly: Listen, share information concisely and with purpose, and be open to hearing opinions.
• Create accountability: Identify the consequences of actions and hold yourself and others responsible for performance

All these competencies are measurable and recommended to be measured for 

• New hires: during the selection process
• Current leaders: to identify the gap -if any- and start building the development plan for them

The Scarcity of Transformational Leaders and Building Them from Within

To my knowledge, McKinsey&Co. was the first company to use the “War of Talent” terminology to describe the situation of talents and how organizations are fighting to get the best to use in the markets. This war will be more ferocious when you start searching for a transformational leader and despite the clear benefits of transformational, there is a scarcity of leaders who possess these qualities (competencies). So Building Transformational Leaders from Within would be your best solution to secure at least a portion of the needed pipeline of such quality leaders.

Organizations can cultivate transformational leaders by:

• Investing in Leadership Development: Offering training programs that focus on developing the key competencies of transformational leaders.
• Mentoring and Coaching: Pairing emerging leaders with experienced mentors to provide guidance and support.
• Fostering a Growth Mindset: Encouraging a culture where learning and development are prioritized, and failure is seen as an opportunity for growth.
• Providing Opportunities for Innovation: Creating psychologically safe environments where employees feel empowered to take initiative and innovate.

It's not only about being the leader who is an expert in his/her field or a super achiever who achieves his targets, it's about inspiring people to move into change and achieve certain vision despite all challenges.

Whisper in Leader's ears

In conclusion, the only path for an organization to survive these changing times is you, people. People who are accountable, engaged, innovative, solve problems and are agile. And the only way to attract, develop and retain those employees who have these traits is to provide them with transformational leadership. This type of leader focuses on vision, adaptability, and mastering change management and drives innovation and resilience.

While there is a scarcity of such leaders, the focus should be on building them from within through targeted development programs and a supportive culture. Embracing transformational leadership not only helps organizations navigate current challenges but also positions them for long-term success in an ever-changing landscape.