{"id":51591,"date":"2018-02-20T10:50:41","date_gmt":"2018-02-20T10:50:41","guid":{"rendered":"https:\/\/arielle.com.au\/?p=49812"},"modified":"2023-11-16T04:24:21","modified_gmt":"2023-11-16T04:24:21","slug":"transformational-vs-transactional-leadership-catherine-eddy","status":"publish","type":"post","link":"https:\/\/arielle.com.au\/transformational-vs-transactional-leadership-catherine-eddy\/","title":{"rendered":"Transformational vs Transactional Leadership (Become A Better Leader)"},"content":{"rendered":"Reading Time: <\/span> 11<\/span> minutes<\/span><\/span>

Meet Catherine Eddy. While transactional leaders abound in business, far fewer achieve transformational success<\/a>. Transformational leadership<\/a> (and all of the advantages it offers) requires, above all, the bravery to move out of one\u2019s comfort zone.<\/p>\n

Catherine has the necessary moxie.<\/p>\n

Not to mention, the enthusiasm to share her story with honesty and wit. Catherine took on the Managing Director at GfK ANZ in early 2015, and spent the previous 10+ years in leadership roles at Nielsen Indonesia.<\/p>\n

Throughout her career, Catherine\u2019s humour, boundless curiosity and willingness to take intelligent risks make her an exceptional example of transformational leadership in any industry\u2014in any part of the world.<\/p>\n

We had the great opportunity to chat with Catherine recently about her leadership style, her unique life experiences and her views on what makes a leader transformational.<\/p>\n

View Catherine\u2019s Full LinkedIn Profile (new tab).<\/a><\/p>\n

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Arielle: Catherine, thanks for taking time out of your busy schedule to chat with us. <\/b><\/h4>\n

CE: Great to be here.<\/p>\n

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Arielle:<\/b> <\/b>Let\u2019s begin with your views on transformational leadership and then delve into specifics regarding your career. Are you ready? <\/b><\/h4>\n

CE: Let\u2019s do it.<\/span><\/p>\n

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Arielle:<\/b> In your opinion, what differentiates a transformational leader from a transactional one? <\/b><\/h4>\n

CE: A transactional leader is one who will keep things on track and ensure that it\u2019s business as usual (BAU).<\/p>\n

They\u2019re a safe pair of hands when the business environment is 100% predictable.<\/p>\n

But really, when has that ever been true? Especially now, with the dramatic pace of change afoot, the notion of pursuing BAU has never been less relevant.<\/p>\n

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Arielle:<\/b> I\u2019m not surprised that you have a strong opinion on the topic. [Laughter]. <\/b>Was there ever a time in your career when you could have been described as a transactional leader? <\/b><\/h4>\n

CE: I really don\u2019t think so. Because even when the direction of the business was to take a careful and guarded approach, I believe there\u2019s always room to transform.<\/p>\n

There might not be an opportunity to invest, for example, so you can focus on achieving big impact on costs and operations to free up cash for even small investments.<\/p>\n

(Related Article: What Is Transformational Leadership?<\/a>)<\/strong><\/p>\n

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Arielle:<\/b> Are transactional leaders needed at any level in a business? In other words, is transformational leadership just reserved for those few at the top<\/b>?<\/h4>\n

CE: Absolutely not! I encourage transformational thinking at all levels. Honestly, you can\u2019t be sure where that next magical idea will come from.<\/p>\n

It\u2019s not necessarily from senior people – although dramatic shifts tend to start there, since it\u2019s those leaders who have the bird\u2019s eye view.<\/p>\n

But by empowering everyone in the organisation to contribute to the discussion around change and transformation, you can kick start a whole lot of small and sometimes unexpected goals that translate into big wins.<\/span><\/p>\n

(Related: How To Showcase Leadership Skills On Your Resume)<\/a>.<\/strong><\/p>\n

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Arielle: What specific advantages do you see to transformational leadership? <\/b><\/h4>\n

CE: Done right, transformational leadership gives a team permission to change, to adapt and to control its destiny.<\/p>\n

It encourages new ideas\u2014new thinking about old problems and challenges.<\/p>\n

And increasingly, it\u2019s about adopting new technologies to tackle those problems and challenges.<\/p>\n

Without it, you won\u2019t survive unless you have a bullet-proof industry and no competitors. Even then (and I\u2019m thinking of the public sector) there are stakeholders who will demand transformation.<\/p>\n

(Related: Best 5 Types Of Feedback To Use In The Workplace<\/a>).<\/strong><\/p>\n

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Arielle: Who were some of your inspirational mentors along the way? <\/b><\/h4>\n

CE: One was Byron Sharp from Ehrenberg-Bass Institute. He had strong and not so popular opinions on how brands grow and he never wavered\u2014gathering more and more empirical evidence to support his opinions.<\/p>\n

I was inspired by his resilience and grit, and I\u2019d like to think I\u2019ve taken some of that on.<\/p>\n

The other leader was a Nielsen Managing Director Steve Mitchell. Steve encouraged me to take risks with my business; to have the courage to place the big bets knowing that without them, I would only end up with the BAU scenario.<\/p>\n

He led with refreshingly high levels of trust.<\/span><\/p>\n

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Arielle:<\/b> You\u2019re people-centric and culture is one of your passions. What barriers do internal silos present to the growth of a business? <\/b><\/h4>\n

CE: The biggest barrier silos create is that they give people an excuse not to work with each other so it becomes incredibly important to communicate the benefit of integrated behaviour\u2014both to the individual and to the business.<\/p>\n

This is especially critical when you\u2019re in a transformation state and need to garner belief and support in the new vision.<\/p>\n

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Arielle:<\/b> So silos prevent a singular vision?<\/b><\/h4>\n

CE: Exactly. Without a single and compelling vision, you can\u2019t move forward to ensuring that every single communication and action supports it.<\/p>\n

Ultimately, you\u2019ll fail if you don\u2019t have the backing of a strong guiding coalition who sees the need for change\u2014and a broader group that understands the vision and the transformation that\u2019s required for sustainable growth.<\/p>\n

I can\u2019t stress enough the importance of investing time in getting those building blocks in place.<\/p>\n

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Arielle:<\/b> Many leaders talk about breaking down silos. How have you actually achieved it? <\/b><\/h4>\n

CE: I replaced two Managing Directors as I came into my last role, both with very distinctive styles.<\/p>\n

I started at T minus 60 (so 60 days before I began the job). I met with the team before I started so that they could learn a bit about me; but more importantly, so that I could learn about them.<\/p>\n

Then over the next two months, I gave a lot of thought to developing and articulating my vision for the integrated business; what it would bring to our clients; and what opportunities it would bring to our people.<\/p>\n

Being able to start on Day One with that vision, and the strategy to get there, meant we could start to run immediately.<\/p>\n

(Related Reading: Create Effective Employee Recognition Programs<\/a>).<\/strong><\/p>\n

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Arielle:<\/b> Tell us about a time when you used humour to break apart silos and barriers. <\/b><\/h4>\n

CE: Humour touches everything that I do; it\u2019s a great eliminator of barriers.<\/p>\n

At Nielsen, we wanted to reward those people who really embraced the transformation and growth of the business in Indonesia. So we did a couple of things to make that really visible:<\/p>\n