Transformational leadership focuses on what the leader accomplishes, yet still pays attention to the leader’s personal characteristics and relationship with group members. The transformational leader helps bring about major, positive changes by moving group members beyond their self-interests and toward the good of the group, organization, or society. Because of its importance, transformational leadership has become the most widely researched leadership theory.

The essence of transformational leadership is developing and transforming people. They focus on more routine transactions, rewarding group members for meeting standards (contingent reinforcement). Extensive research by the late Bernard M. Bass indicates that the transformational-versus-transactional distinction has been observed in a wide variety of organizations and cultures.