Leadership: Transformational Leadership
Leadership is essential to create a healthy company and work environment. There are many types of leadership. One type of leadership is Transformational Leadership that is characterized by the presence of a leader capable of transforming the environment and changing the reality of wherever it goes. He is capable to solve problems from the simplest to the most complex, as well as being a visionary, a strategist, and committed to the development of his/her people and his/her company. Regardless of the field of activity, transformational leadership can modify behaviors and train better professionals, all through his/her examples and attitudes. The transformational leader is a manager who serves a positive frame of reference, whose approach to people, solving gaps, and achieving results is a source and inspiration for all. With the speed of change and the high competitiveness of the market, organizations need to be prepared to deal with transition times by adapting quickly to them. In this way, the profile of the transformational leader perfectly matches this scenario, filled with changing and frequent demand. Organizations need leaders that are truly capable to implement all necessary modifications, which leads to increase motivation, engagement, and performance. The ability to adapt is one of the qualities that highlight the transformational leader in moments of crisis. The ability to find innovative and differentiated solutions to problems makes him/her essential for the company and gain confidence. The transformational leader has charisma, inspires confidence, motivation, and a sense of purpose in his/her followers, encourages autonomy and creativity in his/her followers, encourages employees to grow, to develop, and to have success, requires optimism, enthusiasm, and positivism, has excellent communication skills, fosters an ethical work environment with standards, priorities, and strong values, and so on.
One transformational leader is Warren Buffett. He is one the most admired and prolific leaders, investors, and managers in corporate America, probably the best investor of modern area. He is the CEO of Berkshire Hathaway (NYSE:BRK-A) (NYSE:BRK-B), and he is the third richest person in the world. His net worth is $84 billion. He started selling newspaper at the age 11, and he is now 87 with no intention to retired. “Buffett follows the Benjamin Graham school of value investing. Value investors look for securities with prices that are unjustifiably low based on their intrinsic worth. Like bargain hunters, the value investors searches for stocks that he or she believes are undervalued by the market, stocks that are valuable but not recognized by majority of other buyers.” (Investopia Staff 1) Warren Buffett choose stocks looking for the potential of the company and how this company can make money. He chooses companies that can generate earnings. Warren Buffett maintains this idea to his life, he has lived in the same house for almost his adult life and his house is not huge, he doesn’t have many cars or use a limousine to go to his company.
Warren Buffett always said that if he wasn’t an investor, he wants to be a teacher. He writes and speaks about his business and shares general wisdom about investing in a way where anyone can understand. Warren Buffett has ten principles of leadership: love what you do, learn how to communicate effectively, choose your business associates wisely, don’t micro manage, plan your future, transparency is highly appreciate, patience is virtue, manage your time wisely, be prepared to take risks and learn from mistakes, and treat everyone equally. (Locke) Warren Buffett is an optimistic, he explains what he is doing in a way where anyone can understand it, and he admits mistakes, believes that he can learn from his mistakes, and he will make the money back next time. He believes that no matter how long you have been investing if you are not seeing positive results, it could be that you are not using the right techniques. Warren Buffett believes they get better results from trusting their workers and giving them more autonomy.
In 2008, millions of investors packed their bags and fled from the hurricane of the financial market crisis to protect their investments, and Warren Buffett coolly threw a lifeline to a few companies even though their stock prices were dwindling. At the time, the market collapsed amid intense pessimism, and Warren Buffett searched for good opportunities. Warren Buffett witnessed the extraordinary returns of his investments, in 2013 was already $10 billion and the value continues grow. He made $10 billion during the financial crisis! “Be fearful when others are greedy, and be greedy when others are scared” is a famous phrase of Warren Buffett.
In conclusion, if we want to be a good leader and achieve success, we need to respect the principles, learn with other leaders, and find the best way to make us unique.
Investopia Staff. “Warren Buffett: How He Does It.” Investopia, 2 April 2018, https://www.investopedia.com/articles/01/071801.asp
Radcliffe, Brent. “How does Warren Buffett choose his stocks.” Investopedia, 14 January 2018, https://www.investopedia.com/ask/answers/081114/how-does-warren-buffett-choose-what-companies-buy.asp
Locke, Robert. “10 Leadership Lessons That Warren Buffett Taught Us.” Lifehack, https://www.lifehack.org/articles/productivity/10-leadership-lessons-that-warren-buffett-taught.html
Lobello, Carmel. “How Warren Buffett made $10 billion during the financial crisis.” The Week, 7 October 2013,
Walker, John. ; Miller, Jack., Supervision in the Hospitality Industry, 8th edition, Hoboken, New Jersey. Wiley, 2017.