This is a very good example to get a clear idea of what kind of people Level 5 leaders are. They are inspirational because they are good human beings, modest and humble, yet very willful at the same time.
A possible successor to Executive A, Executive B, exhibits more of a Transactional type of leadership. Transactional leaders believe that there is an association between effort and reward. These types of leaders often believe in very standard forms of incentive, reward, and punishment. Transactional leaders often set goals for their subordinates and they offer rewards when the subordinate has done a good job with the task. Transactional leadership depends on the leader's ability to reinforce subordinates for their successful achievement of their end of the deal.
Executive B. is a perfect example of a Transactional leader. He believes in a clear chain of command and in rewarding good performance. He believes that if a subordinate is given a task to complete and that task is not completed, the subordinate is 100% responsible. He believes that when responsibility isn't met, the subordinate should be punished.
Executive C, on the other hand, is more of a Transformational leader. As the word "Transformational" implies, these types of leaders try to ignite feelings of great emotion in their followers, motivating them to perform beyond their best ability. The...
wants followers to transcend their own self-interest for the good of the organization and he believes that people are able to be very successful when they can be inspired by the vision of the leader. Executive C. possesses a very good understanding about what an inspirational vision can do. If Executive C. is able to inspire his followers, the idea is that the followers will work beyond their own self-interest.
If Executive B. were to become leader, the company would be jolted by the great different of leadership style. Executive B. has worked closely with A, the style of reward and punishment may not be appreciated by the followers right off the bat, which could cause troubles in performance. If Executive C. were to become A's successor, the transition may be less jolting as the leadership style of A and C. seem to be very similar -- especially in the fact that they are more about inspiring workers to achieve greatness.
