Transformational Leadership as a Model for Future Organizations

Three years ago, we faced an unprecedented crisis. The COVID-19 pandemic took us by surprise, and we are still recovering from the economic and social impact it caused. Undoubtedly, this external factor, with global repercussions, forced all of us to take extraordinary measures and adapt to change.

For biopharmaceutical companies, this process took place in record time and involved overcoming different challenges. We had to reinvent ourselves, think outside the box, digitize clinical trials to accelerate the development of new diagnostics methods, vaccines, and drugs, as well as take care of their supply without compromising patient safety while ensuring business continuity.

While technology and scientific expertise were key to break down geopolitical and cultural barriers, the reality is that without the guidance of inspiring leaders who put people first, we would not have been able to respond to the emergency, ensure treatment for those who live with serious illnesses, reduce hospitalizations and, of course, save lives.

In more than 20 years of experience in this sector, I haven’t found a magic formula to implement an adequate or unique leadership style. However, the one with which I identify the most and with which I have made significant progress at BMS is undoubtedly the transformational style. It has allowed me to align the expectations, perceptions, and motivations of my team to fulfill the purpose of bringing more medicines, faster, to more patients to improve their health results.

This purpose is a compass that, personally, guides our actions and helps us know if we are on the right path.

To face the growing needs of the market and our stakeholders,  leaders today must leave our comfort zone and go that extra mile. This implies increasing our skills and abilities to develop an integrated vision of the organization with a global perspective, managing multicultural and generational teams with unusual work models, designing disruptive strategies for sustained growth and acting humanely.

In his Pulitzer Prize-winning work, Transforming Leadership, James MacGregor Burns argues that transformational leaders are those who take control of situations, have a strong passion for what they do, and an ability to make groups feel charged and empowered and full of energy.

His secret, he says, is to lead by example, foster an ethical work environment, with clear priorities and standards; emphasize authenticity, empathy, cooperation, and open communication; and provide mentoring by letting others take risks and make decisions.

As an example of great personalities who have left their mark, I can mention Eleanor Roosevelt, editor of the Universal Declaration of Human Rights; Barack Obama, former President of the United States; Tommy Lasorda, baseball player and former manager of the Los Angeles Dodgers; or Jeff Bezos, founder of Amazon, who achieved great social progress and recognized brands by focusing on people as the engine of innovation.

The founder of the Center for Leadership Studies and professor emeritus at Binghamton State University, New York, Bernard M. Bass, furthered Burns' ideas to develop the famous Theory of Transformational Leadership into managerial applications. According to him, they are the type of people who define themselves based on the impact they have on their followers — they communicate trust, respect, and admiration.

However, the Global Leader Forecast 2021 study, prepared by the Human Resources (HR) and Organizational Development consulting firm DDI, based on the opinion of HR professionals from 24 sectors in 50 countries, including Mexico, indicates that the number of people capable of setting the direction of companies in the future is decreasing, since only 11% of HR managers have solid candidates for leadership positions, which represents the lowest rate observed in the last decade.

Additionally, it maintains that 5 out of 10 CEOs urgently need to develop the next generation of leaders. 

According to the study (GLF, 2021), the main challenges for companies are developing the next generation of leaders, the global recession/slow growth of the markets and attracting and retaining the best talent. The publication recommends that to prepare the next leaders to anticipate and react to changes, the organizations need to think about three key skills: managing change, influence and building partnerships, helping leaders to engage their teams as they quickly adapt to meet new demands.

Employees are the most important asset of organizations. Therefore, to ensure success, decision-makers must recruit, retain, and develop the best talent, as well as generate mechanisms so that they feel heard, valued, and committed.

In my experience, companies that promote a culture based on diversity and inclusion, that implement actions to maintain a balance between life and work (wellness programs that promote physical and emotional health, flexible work, compensation schemes, and training, among others) and that promote development, career, and life plans, not only generate positive experiences for employees, but also become creative, productive, and happy places.

COVID-19 taught us that health systems need to be prepared to respond to future pandemics and, for this, we will require change agents who question the status quo, break paradigms, and generate innovative solutions.

What are you doing to develop your future transformational leaders?