The Path to a Modern Operating Model: Navigating Transformational Leadership in Uncertain Times
As we enter the homestretch of 2024, I’m seeing a lot of fear and uncertainty driven by an unpredictable economy and election season. Are you feeling this too? I don’t think it’s all that uncommon for this time of year, but 2024 has ushered in some “anti-pattern” behaviors in many organizations. Specifically, I see leaders reverting to command-and-control leadership styles, abandoning the transformational leadership principles critical for any modern operating model to thrive.
I know there’s a strong instinct to tighten the grip on control during uncertain times. Not only are we faced with the realities of EOY activities right now, but 2024 was a wild year full of layoffs, economic volatility, and an election season riddled with surprises, and we’re not even done yet.
When fear and uncertainty creep in, there’s a natural tendency to default to what feels comfortable and familiar. For example, the old command-and-control leadership style, which leans heavily on a clear hierarchy, sense of order, and top-down communication. And it doesn’t produce high-performing, empowered teams that are the markers of a modern operating model.
In today’s article, I’ll explain the importance of transformational leadership, why it was so darn easy to slip back into the command-and-control mindset in 2024, and the rewards of honing transformational leadership characteristics within product-led businesses.
The Legacy of Command and Control: A Double-Edged Sword
The command and control leadership style was born of mid-century military structures in post-war times when stability and predictability were essential. Leaders directed the when, where, and how of work, followed a clear hierarchy sense of order, and focused on outputs rather than outcomes. As the world shifted from global war into new markets and industrial complexes seemingly overnight, this style transformed entire countries, industries, cities, and economies. Scale was the name of the game, and it required order and rigidity to keep things running.
While command-and-control may have served us well in the past, it’s not particularly nimble. When the market shifts or customers demand change, a rigid leadership structure can be slow to respond, leaving an organization vulnerable to more adaptable competitors. It also fails to leverage the unique perspectives of your customer or talent pool segments, further diminishing the ability to innovate and grow.
We’re living in a radically different time. The past year has been characterized by disruption, emerging tech, and volatile markets. To keep up, product-led organizations need radically different ways of working that prioritize agility, innovation, and empowerment.
Transformational Leadership: A Modern Necessity
Enter transformational leadership. Under this model, every person—from the top to the bottom of the organization—can demonstrate leadership qualities. Teams have access to tools, systems, and structures that enable insights to bubble up from anywhere in the organization, and people have the safety to voice their opinions and call data-backed audibles.
Unlike command and control, transformational leadership allows individuals and teams to act autonomously, make decisions, and contribute meaningfully to the organization’s success. When this happens, employees at all levels of an organization feel inspired and empowered to take ownership of their work because they understand how it relates to the big picture. This approach leads to better outcomes and fosters a sense of purpose and engagement among employees, and that’s exactly what a modern operating model requires.
2024’s Challenge: The Gravitational Pull of the Old Ways
We can like a concept in theory, but putting it into practice is another story. In 2024, uncertainty around the economy, the election year, and the impact of AI created a lot of hesitation for tech-enabled firms. As a result, I saw less experimentation, less willingness to take risks, and confusion over where to invest resources.
I also saw many organizations fall prey to the gravitational pull of old ways of working. When fear and uncertainty creep in, there’s a natural tendency to default to what feels comfortable and familiar. When you’re tired of constantly dealing with emerging external triggers, command-and-control can feel like a trusty old tool to fall back on.
Listen, I know it takes energy and determination to resist this impulse. Transformational leadership requires faith, trust, and vulnerability—qualities that can be difficult to muster when facing uncertainty. But as leaders, it’s our job to be aware of this pull and actively work to resist it, especially when the pressure is on.
The Reward: Building Resilient and Empowered Organizations
Organizations that demonstrate transformational leadership characteristics at every level are more resilient, adaptable, and innovative. They’re better equipped to respond to changing market demands and customer needs because their people are empowered to act autonomously and make decisions that align with the organization’s vision and goals.
When leaders trust their people, the results can be extraordinary. I recently chatted with a client about Tuckpoint’s work applying these transformational leadership approaches within the org. She was gobsmacked at what she observed in her team: she said she had never seen them so happy, collaborative, and productive (and we’re talking about people who have been with the company for 15+ years!). This is the power of transformational leadership in action.
The Time to Double Down is Now
In uncertain times, the instinct to tighten the grip on control is strong, but it’s precisely during these times that the rewards of transformational leadership can be the greatest. By building a transformational leadership culture across your organization, you can create a more engaged, empowered, and resilient workforce ready to face any bump in the road, even the ones presented in 2024.
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