The workforce in Singapore is increasingly dominated by Gen Z and younger Millennials, who tend to value purpose in their jobs more than the preceding generations. As such, a good paycheck is no longer sufficient to retain these younger employees. Of the many different ways SMEs can deploy to develop stronger employee loyalty, one of the most effective is to change the way these employees are being mentored and guided. In this article, we want to focus on how you can significantly improve your employee retention and motivational level by pivoting from Situational leadership to Transformational leadership.
Before we look at the roadmap of how you can implement Transformational Leadership as an SME, let’s do a quick comparison between the two types of leaderships styles to understand them better.
Focus
Role
Scalability
Risk
| Feature | Situational Leadership | Transformational Leadership |
|---|---|---|
|
Task completion and short-term efficiency | Long-term growth and cultural evolution |
|
Directive and follows the "style" assigned to them | Vision, Charisma, and empowered to challenge the status quo |
|
Low: The leader is the constant filter | High: Empowers decentralised decision-making |
|
Can become "micro-management" if overused. | Can lack operational "grounding" if too vague. |
How do you move your managers from someone who manages tasks to a “leader” who transforms people?
It certainly cannot be achieved without proper planning, a change in mindsets and attitude across your company, as well as specific training and programmes to equip your staff to make the transition. Study our 90-day guide below to have an idea of how you can embark on this transformational journey.
Month 1 : Setting The Goal and Establishing the "Why"
Month 1 : Setting The Goal and Establishing the "Why"
The Leadership Audit. Start at the management and managerial level by asking them to review their last 20 work interactions to check if they were telling someone how to do a task (Situational) or explaining why it matters (Transformational)? The shift needs to start at the leadership level. But if you require assistance for a tailored program to help your leadership team adopt a transformative mindset, speak to us for an obligation-free consultation.
Define the “North Star.” Your company needs to have a longer-term vision that isn’t about reaching a certain business revenue but a more inspired purpose that fosters enthusiasm and commitment amongst your employees. Arrange for a company-wide session like a “Town Hall meeting” to share this long-term vision and how the company is pivoting to a Transformational leadership model, as this shift is essential for fostering innovation as well as keeping and attracting talent.
Month 2: From "Fixer" to "Facilitator"
Month 2: From "Fixer" to
"Facilitator"
Intellectual Stimulation through Action Learning Projects (ALPs). Give a cohort of leaders a real business “pain point” such as, “How do we reduce our production cost by 20% this year, leveraging AI automation?” This project forces your leaders to work as a cross-functional team towards a vision that hasn’t been mapped out yet, moving them away from the safety of “directing” known tasks.
Purpose-Link Every KPI. In your team meetings, instead of having your staff report numbers in isolation, get them to link them back to your company’s long-term vision. If a junior executive hits a target, explain how that achievement contributes specifically to the company’s future.
Month 3: From "Manager" to "Mentor"
Month 3: From "Manager" to
"Mentor"
The “Coaching” Pivot. When your managers embrace a coaching mindset, they focus on employee growth and empowerment and start to play a vital role in developing future leaders within your organisation. This not only strengthens the leadership pipeline but also fosters a culture of continuous learning and development throughout the company. Read more about how coaching skills make better leaders here or send your managers for our 2-day Coaching Leadership course.
Identifying “Culture Champions.” Lastly, you need to identify managers or employees who have embraced this new vision and demonstrated transformational leadership in their work. Recognise their efforts and grant them the autonomy to lead their own small “transformational” initiatives. This will help you build momentum in the cultural shift and further motivate them as they contribute towards the company’s longer-term vision.
We hope our article has provided some useful tips to guide you in how to shift your company towards Transformational leadership. Reach out to us if you need further consultation.
Source: Transformational Leadership Style: How to Inspire and Motivate by Chioma Ugochukwu, updated on June 20, 2025
https://www.simplypsychology.org/what-is-transformational-leadership.html
We have the expertise to help you your managers improve their performance management capability – our consultants have over 20 years of experience in the field of human resource and performance management to assist our clients in building a robust team for the future. Contact us at +65 6604 6330 or Email us at llearning@arkgroup.com.sg for a discussion on your business’s needs.
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