Transformational Leadership Results in Transformational Client Relationships
Introduction
On April 1st, Alliance Global Advisors (Alliance) celebrated our three-year anniversary. As we reach this significant milestone, we are motivated to continue the positive impact Alliance and our Clients contribute to the industry. In our latest blog, we wanted to reflect on the key attributes of a successful partnership and how our Clients can help transform their relationships with their Investors and Partners.
Alliance is focused on deliberate and intentional growth, a concept supported by our 12-member team. In February 2023, Alliance ranked No. 15 on Inc. Magazine’s List of the Southeast Region’s Fastest-Growing Private Companies. “To be considered in the top decile of growing businesses in the Southeast Region of the United States is an honor - and reflective of our hard-working team,” said Jennifer Stevens, Co-Founder & Managing Partner of Alliance Global Advisors. “As consultants, we focus on expediting the growth plans of our client base. At the same time, we remain disciplined and focused on very deliberate growth across our own platform to create opportunities for our team. We’re thrilled that we can remain both selective AND execute with a growth mindset.”
The Partner’s continued investment in the Alliance team has led to these humbling recognitions. In addition to giving back to our industry by way of mentorship and education, Co-Founders Heather Fernstrom Border and Jennifer Stevens place a significant emphasis on professional development, business coaching and providing mentorship opportunities for the Alliance team to advance. Jairek Robbins, our friend and business growth coach, led our latest team coaching. The topic of the training was recognizing the difference between transactional and transformational relationships. This concept resonates with our team due to our focus on creating transformational relationships for our Clients, emphasizing the power of partnership and mutual growth opportunities rather than short-term, transactional relationships. It's also important that after working alongside Alliance Global Advisors, our Clients are able to form lasting partnerships with leading global investors. Forming transformational relationships is now more imperative than ever before. Below, we share some key takeaways from this session.
TRANSACTIONAL VS. TRANSFORMATIONAL RELATIONSHIPS
Below, Jairek Robbins helps to breakdown the distinction between the two types of relationships for the Alliance team:
“Transactional relationships primarily focus on exchanging goods or services for payment. These relationships are often short-term, focusing on completing a specific transaction or meeting a particular need. In a transactional relationship, the emphasis is on maintaining the status quo and ensuring that both parties get what they need from the transaction.
On the other hand, transformational relationships are long-term partnerships that focus on mutual growth and benefit. A shared vision, trust and collaboration characterize these relationships. In a transformational relationship, the emphasis is on creating a win-win situation for both parties by leveraging the strengths and resources of each other to achieve common goals.
While transactional relationships can be important for achieving short-term objectives and fulfilling immediate needs, transformational relationships are crucial for long-term success and sustained growth. Businesses prioritizing transformational relationships are likelier to build lasting partnerships, achieve mutual success and create value for all stakeholders.”
Ultimately, a transformational experience will benefit both parties by creating deeper, more meaningful relationships and improving loyalty, retention and overall satisfaction. A transformational experience will provide a distinct advantage from the competition as Investors gravitate toward the investment manager who builds deep, meaningful relationships and understands their unique needs and pain points.
“I am very impressed at how much time, effort and resources the Alliance team invests into creating long-term transformation relationships with the clients they hand-pick to work with. You are very wise to choose to have Alliance on your team, and they will find a way to ensure you win!” shared Jairek.
TRANSACTIONAL VS. TRANSFORMATIONAL LEADERSHIP
Similar to transformational business relationships, transformational leaders focus on developing their team's skills and abilities with the goal of helping them grow and reach their highest potential. Transformational leaders inspire and motivate their team to achieve their full potential, leading to more productivity and overall success. Transformational leadership fosters a culture of innovation, collaboration and creativity within a team.
Transactional leadership is a more traditional leadership style that focuses on achieving specific goals and maintaining the status quo through rewards and punishments. In this style, the leader sets goals and provides rewards or penalties based on the team member's performance in achieving those goals. Transactional leadership lends itself more to routine tasks and situations requiring strict procedures.
A ”Frontiers in Psychology” research article found that transactional leadership causes team members to “perceive the culture as more purposeful than innovative.” In turn, transformational leadership forces team members to view organizational culture as more innovative. The most effective leadership style depends on the goals of the organization. As the chart below illustrates, transformational leadership focusing on motivating and inspiring team members leads to more productivity in the long-term.
CONCLUSION
Alliance’s success can be largely attributed to the Partners’ keen focus on fostering transformational relationships by way of transformational leadership. As we enter year four, we focus on the growth plans of our Client base while remaining disciplined in our firm's growth. We remain humbled by our deliberate growth, as shown by our growing team of 12 professionals, clients under advisory with over $450 billion in assets under management and ranking no. 15 on Inc. Magazine's List of the Southeast Region's Fastest-Growing Private Companies. We are committed to transforming relationships and building trust and confidence across both our team and our external partnerships. Come have a seat at the table.
ABOUT ALLIANCE GLOBAL ADVISORS
Alliance Global Advisors (Alliance) is a women-owned consulting firm focused on developing strategic growth solutions for real asset investment managers. Advising clients with over $450 billion in assets under management (AUM), Alliance partners with organizations to provide an informed, independent perspective, continued education and an innovative approach to attracting capital in a competitive market environment. Our experienced team has a commitment to empowering the real asset investment community to elevate best practices. Our partnerships allow senior management teams to focus on what matters most: diligently managing Investor capital, creating value and delivering exceptional returns in a performance-driven market.
Disclaimer: This blog was originally published in April 2023 and we will update periodically to reflect changes in the industry. The content may contain or cite personal and/or professional opinions that differ from the views of Alliance.