Sector and AuSAE News

  • 16 Apr 2015 10:21 AM | Louise Stokes

    Researcher: Dr Samuel Wilson and Professor John Fien


    The Swinburne Leadership Survey is the flagship research program of the Swinburne Leadership Institute that examines Australian’s beliefs about the nation’s leaders and citizens. Conducted in late 2014, the Swinburne Leadership Survey is a benchmark study and underpins our goal of contributing to the renewal of Leadership for the Greater Good in Australia.


    The aim of the Swinburne Leadership Survey is to benchmark public opinion about:

    • The trustworthiness and competence of leaders across different social and economic sectors
    • The responsibilities of leaders in contributing to the Greater Good
    • How well national political leaders are delivering on these responsibilities
    • How Australians would like our leaders to address our major challenges
    • The roles ordinary citizens can play as change agents or local leaders of change for the Greater Good

    The Survey provides Australians with a rigorous snapshot of leadership in Australia and, over time, a powerful tool to measure the direction in which Leadership for the Greater Good in Australia is heading.


    The inaugural Swinburne Leadership Survey and Index of Leadership for the Greater Good will be released in April 2015. The 2014-15 Swinburne Leadership Survey is a benchmarking study. The Swinburne Leadership Institute will conduct the survey annually in order to trace changes in Australian perceptions of leadership across different social sectors and to explore the factors that influence these perceptions.




    The survey found that political leaders ranked below all other categories of leaders – business, union, religious, and community leaders - in terms of perceived trust and competence. Community leaders were far more highly thought of than the others on these two counts.


    Community leaders were also seen as the most concerned about the wider needs of society and to take a long term perspective on problems. Conversely, political leaders were seen as more motivated by their own and vested interests than the greater good. They were also criticized for not balancing short term and future perspectives. Only trade union leaders scored worse on these criteria.


    On a positive side, the survey tells us what Australians are looking for: We want leaders whose actions show us:

    • That they are making decisions that are in the interests of all Australians and not letting the unintended consequences of any policy decision to unfairly impact on any one social group
    • That they care for the long-term future of the country, including the needs of future generations of Australians, not just their chances of re-election; and at the same time
    • That they are maintaining the infrastructure and environmental and governmental systems—the ‘commons’—upon which all economic and social development depends


    Download the full report here.


    Please contact Swinburne Leadership  on +61 3 9214 5717  or leadershipinstitute@swin.edu.au  if your organisation would like to participate in the tailored briefings program or would like to partner with the Institute in helping shape and develop the on-line platform or the design and implementation of the 2015 Swinburne Leadership Survey.

  • 14 Apr 2015 12:24 PM | Louise Stokes

    History shows that damage caused by a corporate crisis is usually determined more by the quality of the response than by the severity of the crisis itself.


    Original article can be found here. Written by Jeffry Powell, Charlie Horrell, Al Percival and Eslinda Hamzah


    Poorly handled crises – product recalls, customer service missteps, labor strikes, environmental disasters, hostile takeover bids or regulatory probes – can ultimately ruin an organization’s reputation. In contrast, adversities met with a strong and swift response can actually become opportunities to demonstrate decisive leadership and a commitment to values.

    While the spotlight usually falls on the CEO when a crisis occurs, successful handling of a crisis is usually the result of well-orchestrated teamwork between the CEO, board of directors and corporate secretary. The board must provide its advice and experience to management. It must also safeguard the interests of shareholders – or for non-commercial boards, their donors, taxpayers, members, citizens, students and patients. This role is more than symbolic. Investors and other observers will be dissecting the board’s every action. And it falls to the corporate secretary to ensure that processes are followed, proper documentation is kept and information flows smoothly between all parties.

    But fulfilling these responsibilities demands planning in advance. Especially in a time when stakeholders are empowered by social media, the CEO and board can be quickly overwhelmed unless the right infrastructure is already in place. Broadly speaking, preparedness requires two things: establishing a crisis management plan and a communications infrastructure prior to the trigger event.


    Crisis Management Plans
    A crisis management plan should draw on the expertise of the company’s management, PR and legal teams. It must outline specific responsibilities of the CEO and board during a crisis. The corporate secretary then needs to support the chairman or lead director in ensuring that the plan is followed and in anticipating information and other resources the board will need to confront the crisis.


    Crisis Collaboration Platforms

    A communications and collaboration platform must allow the CEO and board to exchange information, deliberate and make decisions rapidly and securely. While the c-suite may be headquartered in a single location, directors will likely be geographically dispersed, particularly as more companies look to internationalize their boards. The volume of information to be shared between parties is often substantial and frequently revised.

    Most companies have business continuity and disaster recovery plans to manage risks of wide scale disasters such as terrorist attacks or natural catastrophes. But these measures frequently exclude board communication from their scope, lacking provisions for the CEO to keep the board appraised and engaged if an organization’s IT systems go down. A board portal hosted independently of a company’s network provides an efficient and resilient means of communication.


    The Role of Board Portals During a Crisis
    In a world where overnight delivery isn’t fast enough, email isn’t secure enough and sharing PDF files isn’t easy enough, a board portal provides a compelling solution that is:

    • Secure and mobile: With a board portal, information is encrypted and stored on a highly secure external server. Authorized users access the material securely through a tablet app or Internet browser on a device of their choosing.
    • On the same page: The use of a centralized hub for data ensures the latest information is made available instantaneously, eliminating challenges in distribution and version control, and accommodating last minute updates.
    • Decisive: Some portals enable electronic signatures for written consents. Easy voting features let members quickly respond to resolutions and approvals, track how others have responded and see how close they are to consensus.
    • Prepared: The portal can already be loaded with crisis management plans, previous board and committee minutes, and governing documents such as bylaws and committee charters.
    • Informed: A board portal can also provide a central location for summaries and links to news reports, blog posts, Twitter feeds and investor commentary.
    Even the most well run companies should count on being tested by unforeseen disruptions. CEOs, boards and corporate secretaries can minimize the damage – and possibly even turn a crisis into an opportunity to shine – with thorough preparation that includes the establishment of a reliable communications infrastructure.


    AuSAE Annual Partner, Diligent Boardbooks® brings security, simplicity and service to board communications.


    Diligent Boardbooks® is the world’s most widely used board portal because it was created with one purpose in mind: to provide secure and intuitive access to the information that underpins the best-performing boards. So intuitive that it’s as easy as reading a book, the portal gives instant access to updated and archived meeting materials and related resources, combined with the ability to share notes, vote and access the same secure app online or offline. Robust security and privacy are found at all levels of the product — from the data hosting infrastructure, to encryption of content in transit and on the device, to security processes. 


    Each client gets a dedicated account management team and unlimited consultation, training and 24/7/365 live phone support from Diligent employees. Diligent has served boards since 2001 and has a proven track record as a public company.


    Contact Diligent here.

  • 10 Apr 2015 5:00 PM | Louise Stokes

    A new report from the not-for-profit body Community Council of Australia says charities now have less money for discretionary spending, and aren't being given enough money by governments. It's a problem facing dozens of not-for-profit groups around the country.


    An extensive new report - "Owning Our Future:  Better Using Our Assets" - released by Community Council for Australia says Australia's not-for-profit sector and charities have never felt poorer.


    Many of Australia's top leaders in the world of not-for-profit and charities gathered on Wednesday 8th April in Canberra to find new ways of charities and not-for-profits creating a better future for the massive sector.


    Community Council for Australia emphasises:

    • Australia's massive not-for-profit sector is critical to the nation's future.
    • The sector has very real concerns about the kind of Australia we are building.
    • Strengthening the role of not-for-profits will build flourishing communities.
    • Governments have a role to play but are not the only solution.

    David Crosbie - CEO of Community Council for Australia - said, "Late last year in one major survey, over half the respondents expected sector performance to deteriorate in the next 12 months, pointing to negative impacts from Federal Government funding, Federal Government regulations and State Government policy/regulation.  The Pro Bono "State Of The Not For Profit Sector Survey" (released September 2014) found more than half of the 1,200 respondents expected sector performance to deteriorate over the next 12 months."


    "The last PwC - CSI Community Index released late last year clearly said confidence across the sector is negative with charities concerned about being able to deliver services to meet the increasing level of need."


    Campaigner and Chair of the Community Council for Australia (CCA) Reverend Tim Costello (CEO of World Vision) warns there is virtually no collective forward planning in the sector.  He says "It is critical we start to decide on what kind of communities we actually want to live in and be part of. What people forget is that not-for-profits have become a massive employer in Australia, employing over 1 million Australian employees.  This is about finding ways of making the best contributions for Australia in 2020.  Many of the biggest leaders in charities and not-for-profits will be part of our meeting."


    A large list of top not-for-profits are involved with the high powered forum.  This includes World Vision, RSPCA, Lifeline, SANE, The Smith Family, beyondblue, Mission Australia, Save the Children, Relationships Australia, St. John Ambulance Australia, Foundation for Alcohol Research and Education, Pro Bono Australia, Community Sector Banking, Volunteering Australia and many more.


    The report found that charities have been enjoying major growth with 175-billion dollars in assets, and turnover of more than 107-billion dollars. But the Chief Executive of World Vision, Tim Costello says most of the growth in the sector came before the Global Financial Crisis, when Australians were optimistic and charitable. He says it's been an uphill battle since, added to by the increasing demands on not-for-profit groups.


    "Not for profits are dealing with the epidemics of depression, dealing with ice, dealing with mental health and other issues which are of absolute importance as to whether Australia not just has a safety net but flourishes in the future. And the cuts in government funding, the uncertainty about having funding for only 3 months or 12 months sees them unable to really deliver the services."


    One of the report's recommendations is that not-for-profits should look for different revenue sources besides governments. Lifeline Chief Executive Jane Hayden says it's about making operations far more efficient and will will require a new way of thinking and doing business. "Many things we are doing now are services that were provided previously by a government and if we are going to the community... well what are the things that we can do to collaborate, to share our assets and to work out funding models that are going to allow the sector to plan for the long term."


    Tim Costello from World Vision agrees, but adds that the not-for-profit sector needs remain engaged with governments, to be involved in policy formulation. "Where it is appropriate, and there is reduplication, we can look at mergers and acquisitions between smaller not-for-profits. But we also know we need to be at the policy table. Business and unions are always invited but the charitable sector, which employs a million people and five million volunteers is always overlooked and yet when it is at the coalface and it has policy ideas about a richer, better Australia, we need to be there invited and at the table."


    Lifeline's Chief Executive Jane Hayden is also hopeful about the possible outcomes of talks with the government. "We are talking about how we can work collaboratively together and with government to try and map out a future plan for the not-for-profit sector for Australia."


    More on CCA's Owning Our Future - Better Using Our Assets Report is available here

  • 10 Apr 2015 4:25 PM | Louise Stokes


    Planning a successful business event, conference or meeting is a big job, taking months or years to prepare. New Zealand Business Events managers know all about how to plan a successful event. If you're doing all of the event planning yourself, we can do the hard work for you.



    Hear what organisers have to say about business events they have organised and find case studies for business events hosted in New Zealand.




    To see other conference case studies please click here


    To enquire about having your business event in New Zealand please contact Helen Bambry, Business Events Manager Australia, Tourism New Zealand.

  • 10 Apr 2015 4:14 PM | Louise Stokes

    One of the most exciting things about technology is its power to divide opinion. Whether it’s the sustainability of wearables or the iPhone versus the Galaxy, everyone has a view. And as technology evolves and beds into people’s lives, so people’s views evolve.


    For some people, mobile technology is changing the way they live their lives for the better, liberating them at work and at home. For others, it’s the complete opposite – they feel like they can’t escape their mobile and that technology is in charge. 


    Whichever side of the debate you sit on, one thing is clear – mobile technology is completely changing how small and medium-sized businesses operate. Today an estimated 4.5 billion of us worldwide are using a mobile phone, of which about 2 billion are smartphones.


    At Sage, we believe that mobility is a disruptive force for good. It helps balance your life, it connects you with customers and it can put you in control of your business.


    According to our latest Sage Business Index, SMEs embracing mobile working tend to come from emerging economies, such as Brazil, South Africa and Malaysia. Cheap smartphones – some less than $50 – are flooding emerging markets, leapfrogging cost and infrastructure barriers to connect a new generation of consumers and businesses to the Internet. 


    However, SME leaders in established economies such as France, Germany and the UK fear that the lines between their business and personal lives are becoming blurred. In Australia we sit pretty much in the middle, with 47% thinking that mobile business has had a positive effect on their work/life balance while 21% believe it has had a negative effect.


    By failing to take advantage of new ways of working, businesses in the developed world risk missing a huge opportunity.


    We believe that mobile technology should enable your business, not disable your life. Business owners have to make sure they are the boss, and not be commandeered by the demands of their smartphone or tablet. Just because it’s possible to work from anywhere, doesn't mean that you have to. Mobile provides the flexibility to spend more time with your family, doing the things you want to do, and helping to balance your life - including switching off emails at the dinner table.


    The truth is that if you get the balance right, the rewards are great.


    Mobile technology is helping business leaders to run smoother operations, drive innovation and access new markets. New productivity apps, for instance, are transforming how businesses do what they do, and the speed with which they do it. The rise of ecommerce is being accelerated by people shopping on the move. This change has been fuelled by mobility and represents a huge opportunity for small businesses to sell to customers wherever they are.


    Mobile has come of age. It’s not an emerging trend, it’s a live reality. Entrepreneurs that have embraced this change are enjoying the rewards, at work and at home, and they’ve got happier customers and stronger businesses as a result.


    Those that haven’t, now risk being left behind. 


    This blog post originally appeared on the Sage MircOpay website.

  • 10 Apr 2015 4:02 PM | Louise Stokes

    The Benevolent Society, Australia’s first charity, has appointed Joanne Toohey as Chief Executive Officer, after nine months of serving as acting CEO. The appointment comes after an extensive and rigorous nationwide search following the departure of Anne Hollonds in July 2014.


    “Ms Toohey has proven to be an exceptional interim CEO and the Board is confident that she is the right person to lead The Benevolent Society at this point in its more than two hundred year history,” said Lisa Chung, Chairman of the Board.


    “The Board is deeply impressed by Ms Toohey’s capable and calm leadership, and the extent of internal consolidation she has achieved in a relatively short time. We are confident that under her leadership the organisation is building a sound platform for even more success in the future.”


    The Benevolent Society is a not-for-profit, non-religious organisation that has helped people, families and communities achieve positive change since 1813. It is recognised as a leader in developing Social Benefit Bonds, for its centre for leadership development (Social Leadership Australia) and for delivering flexible social support services for families in crisis, people living with a mental illness in the community and older people needing help at home.


    The Benevolent Society has an annual turnover of more than $100million, employs nearly 1000 staff and is supported by 600 volunteers across 55 sites in New South Wales, Queensland and South Australia. In  2014 the organisation reached more than 84,000 people through its services, programs and events.


    Ms Toohey joined the Benevolent Society in 2013 as Executive Director of NSW Operations, with an impressive track record as a senior executive in the aged care sector with experience in residential and community care and housing services.


    As Director of Operations at UnitingCare Ageing, Ms Toohey was part of a leadership team responsible for 6,500 staff and an annual turn-over of more than $500million.  Previously, as Regional Executive Manager for Property at Uniting Care, she managed a capital budget of $45million and developed a regional strategic plan that included an innovative model to provide low cost housing and care for socially and financially disadvantaged older people in inner Sydney.


    Ms Toohey is excited to have her appointment confirmed: “My goal is for The Benevolent Society to build on our reputation as an innovative provider of services, and become an even greater place to work.  I am motivated by our commitment to social justice and want to see The Benevolent Society continue to be a leader in improving social impact and advocacy for a just society where all Australians are able to thrive.”


    This article originally appeared on the Benevolent Society website.

  • 10 Apr 2015 3:24 PM | Louise Stokes

    From design skills to startup work environments, leaders from the most innovative nonprofit organisation share how hiring is changing.


    Technology and social media is helping nonprofits widen and deepen their reach to the people they serve. "From enabling the poor to access important information such as market prices and pay-as-you-go services, to enabling organizations to collect data faster, cheaper, and more efficiently, mobile is a key component of our future, and this will only increase as we hone new ways to measure social impact," says Jacqueline Novogratz, founder and CEO of Acumen, a nonprofit that raises charitable donations to invest in companies that tackle world poverty.


    This increased access to data will also set the bar higher for talent, according to Thomas Tighe, president and CEO of International Relief agency Direct Relief. Because nonprofits' success relies on being able to prove how they are making a difference, they will have an increasing need for people who can use data to tell that story in the most elegant way possible.


    "If anyone is a behavioral economist that can do infographics and engaging 15-second, socially shareable videos after having analyzed enormous amounts of disaggregated data and also translate the findings into coherent, low-cost activities that demonstrate results—you are desperately needed today and will be worshipped!"


    A more diverse workforce


    With the economy on the rebound, we’ll likely see an increase in charitable giving, which lends itself to the prediction that nonprofits will do more hiring than the private sector over the next five years. "Coupled with the fact that more millennials are entering the workforce with the intention of doing good, the nonprofit sector will be a magnet for top talent, creating a pipeline of future leaders who are committed and skilled at delivering a double bottom line," says Judith Rodin, president of The Rockefeller Foundation.


    In fact, it’s predicted millenials will make up almost half of the U.S. workforce by 2020, and according to several recent studies, this generation more than any other generally places a higher emphasis on incorporating causes and big issues as an integral part of daily life.


    Rodin also predicts the sector will become even more diverse, not just in terms of women and minorities in leadership positions, but also with the inclusion of a more global workforce.


    "The perception of the nonprofit industry is changing significantly, from a ‘nice-to-have’ source of funding and work, to an essential component of a functioning society and economy," Rodin explains.


    She cites one reason as the diminishing business model differences between the not-for-profit and for-profit sectors. "Social-impact organizations are moving towards more operational effectiveness and sustainability, while traditional for-profits seek an infusion of social value and passion. This shift in perception is making us much more attractive as both an employer and a partner," she says.


    How nonprofits can engage a new workforce


    A recovering economy also means the marketplace for top talent is more competitive than ever. "This requires that nonprofits be crystal-clear on their value proposition and what makes them unique—and be able to articulate these in a compelling way," says Anna Maria Chávez, chief executive of Girl Scouts USA.


    "Once an organization has this message down, it can incorporate it into strategies and communications that will attract the right talent," she explains.


    Tighe agrees, citing a nonprofit’s mission as the most powerful attractant of talent. To draw the best, he says, nonprofits have to close the gaps between the challenges they mean to address and how they plan to do so. "Just cursing the darkness of the challenges themselves isn’t particularly inspiring to anyone. The mission matters, but fulfilling it provides meaning to everyone involved, and connecting those pieces is an important part of the bargain when calling people to serve."


    Chávez acknowledges that today’s and tomorrow’s high-potential talent wants to thrive in an agile, fast-paced environment similar to that of the startup. Nonprofits, then, must create a similar environment that will allow people to demonstrate their abilities by implementing dynamic ways of work and removing barriers that might impede them. 


    One key way to do this is by allowing flexible work. "Where you work will not be as important as your ability to deliver with excellence," Chávez explains. "Incorporating practices that support this environment will give nonprofits a clear, competitive edge."


    Tighe admits that nonprofits will likely never be able to match or beat the compensation available to top talent from the for-profit sector. This is further complicated, he explains, by higher levels of student debt for the rising generation of talent.


    "But not all top talent is motivated purely by financial considerations, so finding ways generally to make the nonprofit workplace both more attractive as a job or career and as flexible as possible in inviting the talent to the causes will be essential," he says. What’s crucial, though, is always ensuring these decisions are ultimately sensible and reasonable in advancing the organization’s mission.

    This is an excerpt from a Fast Company article by Rachel Gillett which originally appears here.

  • 10 Apr 2015 3:17 PM | Louise Stokes

    With seemingly unlimited information and networking available online, members are increasingly questioning the value of their membership. At the same time, you know that members who participate more actively, or “engage” with your organization, are more likely to renew. So it makes sense that a strategy for combining engagement and renewal communications should have an impact on your renewal rates.


    An article in Marketing General Inc.’s recent MGI Tipster newsletter  – Improve Your Renewals? It’s Time to Get Engaged – outlines the strategy behind a program MGI designed for one client that saw “a 6% increase in overall renewals”.


    The program MGI proposes includes three steps:

    1. Question Your Value Proposition: At the core of any successful membership marketing program is a constant reassessment and improvement of your value proposition. By value proposition here, we mean the actual value you deliver to your members.
    2. Deploy Binary Member Communications to Engage – designed to enable communication “flow two ways by asking for clicks of feedback” and to ask members their opinion. The communications channels MGI suggests can include: “word of mouth, email, personal calls, your website, social media, and yes, even direct mail when designed with a QR code, special link, or even a faxback form.”
    3. Combine Custom Messages with Monthly Updates: This involves using your typical renewal sequence but using “custom messaging to overlay those renewals. For example, the announcement of the annual conference first appears in April. All April renewal notices, no matter which stage of renewal the individual members occupy, also feature the lavish announcement of the annual convention.”

    In the MGI article, they offer up the formula: Rn = v(m) to illustrate that “maximum success in renewals is roughly equivalent to increasing the delivery of overall value as defined by the members themselves."


    You can read the entire article in the MGI Tipster Volume 14, Issue 3 here.

    This blog post originally appeared on the Wild Apricot blog here.

  • 10 Apr 2015 3:07 PM | Louise Stokes

    “Our strength grows out of our weaknesses.” - Ralph Waldo Emerson


    What do you think your weaknesses are? Are they keeping you from starting something new, from pursuing a dream?


    Sometimes we have fears about our weaknesses without realizing it. Take a minute to think about what you’ve always wanted to do, or what you’re doing now. What are your fears? What do you perceive to be your weaknesses? What are your limitations, and what’s holding you back?


    Take assessment, and then read on to change your mindset about these weaknesses.


    Turn Your Weaknesses Into Strengths


    I won’t be able to do an exhaustive list of weaknesses, but the main thing to learn is to have the mindset where your weaknesses can ALL be turned into strengths. There might be exceptions, but I haven’t thought of one yet. Even if there are, it is extremely useful to always look at your weaknesses and see how you can use them to your advantage.


    First step: examine your weaknesses.


    Second step: figure out your strengths.


    Third step: figure out how to move your weaknesses into the strengths column.


    Here are just a few examples … again, I can’t list all of them and the main idea is to figure them out yourself. The more you practice this mindset, the better you’ll get at it.

    • Not a good public speaker. Be an intimate communicator instead. If you aren’t good at talking to large crowds, talk to small groups or communicate one-on-one instead — and learn to be really good at that. Talk in ways that connect intimately with people, that draw them to you. Learn effective small-group communication and one-on-one skills.
    • Not a good writer. Be a people person instead. If you can’t write a great proposal, make it in person. If you can’t write a great report, do a presentation. If you can’t write a great blog, do a video blog or podcast.
    • Don’t have a lot of money to start a business. Be lean and creative instead. Small is actually an advantage in business. You can develop products without bureaucracy, witha quick turnaround, without too much planning or meetings. You can market using guerilla tactics. You are faster and more nimble than a larger competitor. You can adapt faster.
    • You aren’t fast. So be deliberate. Be more thorough. Be more thoughtful. Work on important stuff instead of cranking out a lot of stuff.
    • Don’t have large blog audience. So be more intimate and build stronger bonds with the small audience you have. Turn them into your biggest advocates, and really get to know every new reader. Have fun with your small audience in a way a bigger blogger can’t.
    • Not a people person. So work on brilliant stuff alone. Find your niche and make amazing stuff with the talents you have. Find people who are people persons to promote your stuff for you.
    • Not organized. Simplify things so you don’t need to organize (if you only have a few things, you don’t need to organize them). Be a creative genius instead of a diligent organized person.
    • Not good with tech. Go low-tech. Work with paper or simple text files. This will allow you to concentrate more on your work rather than always being online, always trying out the latest tech stuff, always learning new coding methods or whatever. Let others figure out technology for you.
    • Don’t have enough time. Great! So take what limited time you have and use it to maximal effect. Limitations are good — they force us to choose, and in doing so, they force us to choose what’s most essential. That increases our effectiveness. Choose only the task that will have the most impact.

    You get the idea! Now get started on turning your weaknesses into strengths — start right now.


    For the original/full article please click here.

  • 10 Apr 2015 2:45 PM | Louise Stokes

    This post originally appeared on LinkedIn Pulse and was written by William Patel


    Leadership is perhaps one of the most important aspects of management. This is because leadership is a major factor which contributes immensely to the general wellbeing & uplifting of organisations. Organisations such as General Electric and Chrysler had been turned around from the brink of bankruptcy to become two of the world’s most profitable organisations through the effective leadership. Great nations like the USA, Britain, France and India are some of the most prominent nations in the world today on the wings of effective leadership. This is because leaders in organisations and nations make things happen. 


    Several theories have and are being put forward to explain leadership effectiveness. Two of the most prominent leadership theories are Transformational and Transactional leadership theories. Since the late 1980s, theories of transformational and charismatic leadership have been ascendant. Although most agree that Transactional and transformational leadership are different in concept and in practice, many believe that transformational leadership significantly augments transactional leadership, resulting in higher levels of individual, group, and organizational performance. Others believe that Transactional leadership is a subset of transformational leadership.


    Transformational Leadership: A transformational leader is a person who stimulates and inspires (transform) followers to achieve extraordinary outcomes. He/she pays attention to the concern and developmental needs of individual followers; they change followers’ awareness of issues by helping them to look at old problems in a new way ; and they are able to arouse, excite and inspire followers to put out extra effort to achieve group goals. Transformational leadership theory is all about leadership that creates positive change in the followers whereby they take care of each other's interests and act in the interests of the group as a whole. The concept of transformational leadership was introduced by James Macgregor Burns in 1978 in his descriptive research on political leaders, but its usage has spread into organisational psychology and management with further modifications by B.M Bass and J.B Avalio.


    Transformational leadership enhances the motivation, morale, and performance of followers through a variety of mechanisms. These include connecting the follower's sense of identity and self to the project and the collective identity of the organization; being a role model for followers that inspires them and makes them interested; challenging followers to take greater ownership for their work, and understanding the strengths and weaknesses of followers, so the leader can align followers with tasks that enhance their performance.


    Transactional Leadership: Transactional Leadership, also known as managerial leadership, focuses on the role of supervision, organisation, and group performance; transactional leadership is a style of leadership in which the leader promotes compliance of his followers through both rewards and punishments. Unlike Transformational leadership, leaders using the transactional approach are not looking to change the future, they are looking to merely keep things the same. These leaders pay attention to followers' work in order to find faults and deviations. This type of leadership is effective in crisis and emergency situations, as well as when projects need to be carried out in a specific fashion.


    Within the context of Maslow's hierarchy of needs, transactional leadership works at the basic levels of need satisfaction, where transactional leaders focus on the lower levels of the hierarchy. Transactional leaders use an exchange model, with rewards being given for good work or positive outcomes. Conversely, people with this leadership style also can punish poor work or negative outcomes, until the problem is corrected. One way that transactional leadership focuses on lower level needs is by stressing specific task performance. Transactional leaders are effective in getting specific tasks completed by managing each portion individually.


    Comparison Between Transformational and Transactional Leadership:


     Transactional  VS   Transformational
    Leadership is responsive   Leadership is proactive
    Works within the organisational culture   Works to change the organisational culture by implementing new ideas
    Employees achieve objectives through rewards and punishments set by leader   Employees achieve objectives through higher ideals and moral values
    Motivates followers by appealing to their own self interest   Motivates followers by encouraging them to put group interests first
    Management-by-exception: maintain the status quo; stress correct actions to improve performance.   Individualised consideration: Each behaviour is directed to each individual to express consideration and support. Intellectual stimulation: Promote creative and innovative ideas to solve problems.

    Transformational and Transactional leadership theories represent bold attempts by researchers to explain the nature and effect of leadership. Both theories have their various strengths and weaknesses’ However, the influence of situational variables on leadership outcomes within the context of both styles of leadership.


The Australasian Society of Association Executives (AuSAE)

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