Problem
Scenario: XYZ Corporation is a large, established company that has been struggling to keep up the fast-paced changes in their industry. The company's leadership team is considering two diff approaches to help turn things around:
• Option I: The CEO has proposed a transformational leadership approach. She believes that the company needs to completely overhaul its culture and focus on innovation and creativity. She plans to create a sense of urgency among employees by communicating the need for change, inspiring them with a vision of a brighter future, and empowering them to take risks and try new things.
• Option II: The COO has proposed a transactional leadership approach. He believes that the company needs to get back to basics and focus on the fundamentals of efficiency and productivity. He plans to set clear expectations for employees, establish systems of rewards and punishments based on performance, and closely monitor progress towards specific goals.
Which leadership style do you think would be most effective for XYZ Corporation in this scenario, and why?