Transactional leadership styles in the global economy
A survey of 1,000 global businesses by McKinsey & Co. has found that transactional leaders (TBLS) are the most influential decision makers in business and society.
The survey also found that these leaders are also the most likely to make a profit.
The results, published in the March issue of the Financial Times, are based on data from more than 3,000 business and public companies in the US and other countries.
The data was analysed by McKinsells, the consulting firm that runs the survey.
The key findings are that the top three most important decisions makers in a business are the CEO and the board of directors.
“If you have a CEO who is in charge of a billion-dollar company, you have to be very careful about how you operate,” said McKinsey’s Robert Schulz.
But it also matters for the way that it operates.” “
The board of the company is the second-most important decision-maker in terms of the value that it brings to the organisation.
But it also matters for the way that it operates.”
The study found that in the first five years after the founding of a business, TBLS make an average of $1.8 million a year, with the average salary of the CEO at $1,400,000.
The average value of a TBLS’ contribution is about $15m a year.
The top three TBLS also have a strong track record of being responsible for key decisions in their companies.
“These are people who are very good at thinking about how to make decisions,” said Schulz, who added that he was surprised by the importance of leadership skills.
“I thought that the idea of a leader who is good at decision-making is something that should be a prerequisite for being a leader in a big company.”
TBLS have been at the centre of controversy in recent years.
A number of scandals, including the scandal over the use of private email servers by former secretary of state Hillary Clinton, have exposed the flaws in TBLS’s ability to communicate effectively with colleagues.
McKinsey has said that many TBLS are also overpaid and overqualified for their roles.
The McKinsey study also found TBLS, with their high turnover rates, have not been able to reduce costs by implementing efficiency improvements, such as reducing waste.
“TBLS tend to be highly motivated and they are very creative,” said one respondent.
“They make a lot out of the process they get through.”
The McKinsell study was commissioned by the US Chamber of Commerce, the American Automobile Association, the International Chamber of Manufacturers and the International Association of Machinists and Aerospace Workers.
“It is very clear that business leaders need to be more proactive in how they manage the challenges of modern technology,” said David Zinsman, McKinsey director of research and chief research officer.
“Business leaders need better communication skills, and they need to make more strategic decisions.”
A McKinsey spokesperson said: “Our data suggests that business leadership styles are very important in achieving effective leadership.
Follow Victoria on Twitter: @VictoriaTallie”
Our survey suggests that a strong sense of vision, a high sense of responsibility, and a strong desire to lead are all important in determining the best course of action for a business.”
Follow Victoria on Twitter: @VictoriaTallie