MADISON, Wis. (6/4/13)--A new Filene Research Institute Report finds that good leaders combine both transactional traits--such as goal setting and rewarding exceptional performance--and transformational traits, such as trust, respect and the ability to motivate employees.
The report, "Leadership and Results: A Study of Canadian Credit Unions," recommends training and talent rotation to nurture both types of traits.
The report was compiled from a study of 22 of Canada's 30 largest credit unions. The study included the collection and analysis of 485 leadership surveys, and data on growth in membership and assets under management for each credit union. The study answered three core questions:
- Are there differences in leadership behavior and leadership effectiveness across the credit unions?
- What leadership behaviors do the most effective leaders exhibit
- Is there a relationship between leadership effectiveness and financial results?
Among the recommendations for credit unions the report offers:
- Integrate transactional and transformational leadership into existing talent practices. Establish an expectation of both transactional and transformational leadership behaviors at all levels. Consider tracking, monitoring and rewarding these leadership behaviors through annual organizational and individual goal setting, 360 feedback and employee surveys, compensation practices, and learning and development programs.
- Offer training programs and peer coaching options to develop key leadership behaviors. Create a training program or enhance existing programs to focus on key transformational and transactional leadership behaviors such as coaching, motivating, goal setting and performance management. Given the experience level of credit union leaders, it may be worthwhile to offer both refresher and more comprehensive training programs.
- Boost new role/assignment opportunities. Provide opportunities for leaders to enhance their transformational and transactional leadership behaviors through special projects, short-term assignments, or a temporary transfer to another area in the credit union.
- Consider the benefits of becoming larger. Whether through organic growth or through mergers and acquisitions, becoming a larger credit union correlates not only to more effective leadership but also to better financial results, the report said.
To download the report, use the link.