Globalization has turned the world into a global village – and in this village, there is an ongoing competition between organizations. It is not easy for a company to succeed as the global market changes and the growing mobility of human resources pose various challenges. According to Bruijl (2018), these challenges make good leadership an absolute necessity since a lack of leaders able to properly navigate businesses following the requirements of modern times is concerning. Some of the major obstacles to organizational growth and sustainability are leaders’ inability to delegate and effectively communicate their vision, as well as the struggle to encourage employees to join their efforts (Bruijl, 2018). However, particular people have the gift of guiding and inspiring others while being innovative, courageous, and charismatic. One such leader is Sir Richard Branson, founder and CEO of Virgin Group Ltd., which has launched over 400 business initiatives to sell a range of products and services. Branson’s transformational leadership style is what contributed to Virgin Group’s major success, the current pinnacle of which is his flying operation into suborbital space on the Virgin’s Galactic spaceship in the summer of 2021.
Leaders are the crown jewels of society’s multinational organizations, with the power to change people’s lives. To understand why Branson is considered a transformational leader, it is necessary to first establish what it means to be one. Brujil (2018) cites transformational leadership as consisting of four main characteristics. These are:
- possession and formulation of a vision,
- willingness to take risks to achieve this vision,
- demonstration of sensitivity to the needs of followers,
- demonstration of unique behavior.
Another definition portrays transformational leaders as agents of change who are:
- capable of formulating a vision,
- action-oriented and motivated by new possibilities,
- gifted at making people feel special,
- energetic, impatient, and restless.
There is no doubt that Sir Richard Branson, with his commitment to the company’s goals, artistic spirit, and innovative ways to attract people, is a representative of the transformational leadership style. First of all, he has a comprehensive vision of what his businesses must be. DiFranza (2019) states that transformational leaders are followed primarily because they have an inspiring vision for their company’s future and know how to communicate it in a compelling way. Organizations’ visions are usually reflected in their mission statements, the effectiveness of which is defined by a mission statement’s ability to state the company’s purpose boldly and coherently (Olsen, 2021). When it comes to Virgin Galactic – Branson’s spaceflight company that took him to space – its mission statement seems to fit the criteria. Virgin Galactic’s (n.d.) website’s home page declares: “Our purpose is to connect people across the globe to the love, wonder and awe created by space travel”. It is clear and bold: only an exceptional company can aim at connecting people from all over the world in exploring space.
However, as per Bruijl (2018), Branson supposes that one might find that their vision needs to be adjusted in accordance with the circumstances sometimes, mainly when challenges of moving forward with the business arise. He notes that his company’s goals have changed over time, but there was one key component that was common to all of Branson’s initiatives: they were designed to improve people’s lives (Brujil, 2018). In most cases, there were different strategies for different enterprises, but what has not changed is this common purpose that Branson’s businesses have been following.
Moreover, Branson is willing to take risks for this vision to be achieved. According to DiFranza (2019), transformational leaders better than others, know how to take calculated risks, which leads to positive outcomes most of the time. Branson sees business challenges as opportunities to improve his strategy and gain the upper hand. While some entrepreneurs are likely to look at the market leaders’ power and contemplate entering it at all, Branson believes in challenging the big players and getting the better of them. Even if he might have lost in this game a few times, as experience has shown, more often than not, it was worth it. Additionally, in Branson’s opinion, an entrepreneur has the best chances of managing the risks by personally submerging themselves into each new venture until it reaches success (Gehringer, 2020). Relying on experts and consultants who do not know the business well enough to calculate the best way to implement an idea might end in failure.
Additionally, Branson does not aim at earning as much as possible: money might be the measure of his success, but what he is motivated by is overcoming obstacles. It is interesting to note that another risk of his is Branson’s policy of paying his employers just under the market average. However, Niphadkar (2017) notes that they are glad to work for the company because they like being on the team. It is especially important due to the fact that staff retention has now become a major concern for HR departments of big organizations. Unfortunately, many highly regarded companies do not pay enough attention to it, which results in their loss of qualified employees and the continued spending of funds on training new ones. Branson’s leadership style uses not money but the work culture as an employee retention measure, and it works. At the Virgin family, everyone is proud to be a part of the team, which is why people have no desire to move to other jobs, even if it can provide them with a little extra pay.
It also has a lot to do with another exceptional characteristic of Branson’s: he takes into account the needs of his followers. Ugochukwu (2021) states that transformational leaders know that each member of a team contributes to the ultimate goal. Therefore, it is essential that leaders attend to their employees’ personal needs. This means recognizing each individual’s needs, desires, and motivations and valuing them (Ugochukwu, 2021). According to Niphadkar (2017), Branson directly communicates with all levels of his organization and lets people know that they can trust him to express their honest opinions and concerns. Branson wants his employees to use their full potential to succeed and motivates them to do their best.
Furthermore, Branson’s unique behavior reflects his honest belief that business should be fun: the entrepreneur’s hunger for work and the success of his initiatives are built on that. According to Steinmann et al. (2018), transformational leaders are able to influence people by the effect of their exceptional charisma, which makes followers want to personally identify with the leader. In this regard, Branson inspires people, creating a compelling work culture that motivates employees to strive for better outcomes. His fearless spirit and sureness that no mountain is high enough are contagious, and the atmosphere of excitement and challenge permeates Virgin Group’s offices. Niphadkar (2017) thinks that the Virgin culture of making the impossible possible largely thrives due to this approach, while other entrepreneurs’ seriousness and nervousness often cause their failures. For the group’s founder, the Virgin experience is a path full of wonders, and this is why people cannot resist joining the company. It is a way of life rather than a job from 9 to 5.
Perhaps, one of the pinnacles of this magical journey for Branson was a suborbital space flight he took with five other crew members on July 11, 2021. It was not the first time the entrepreneur went to space – but the first time he did it on the craft belonging to his business, Virgin Galactic. And this flight, according to Knapp (2021), became the culmination of a 17-year-old adventure. Although the company suffered several serious misfortunes that delayed the events, Branson never surrendered and kept working towards his goal. This flight was the second in a test flight series designed to prepare the company for the first commercial passengers, who are projected to start flying this year in case of success. As Knapp (2021) notes, this is an important landmark for the company as well as for the industry as a whole. However, a lot of work is to be done before the success of other Branson businesses is realized; still, there is no doubt that, under his leadership, everything will be executed at its best.
In conclusion, Richard Branson’s vision for what his initiatives must be like and his desire to move only forward make him an exceptional example of a transformational leader. Upon starting Virgin Group Ltd., he ensured that his company always had a purpose it followed no matter what and mastered the skill of proper risk-taking. Additionally, Branson appreciates his employees and is always attentive to their wants and needs; he expects them to treat each other the same way and promotes a culture of mutual support. Moreover, his creative spirit and perception of business as an adventure rather than a serious and responsible job create a fascinating atmosphere in his company’s offices that makes people want to commit to Virgin Group. Branson’s flight into suborbital space last year became a milestone for Virgin Group and a reference point for new achievements.
References
Bruijl, G. H. T. (2018). Sir Richard Branson: A global leader with a difference. SSRN Electronic Journal, 1. Web.
DiFranza, A. (2019). Transformational leadership: How to inspire innovation in the workplace. Northeastern University Graduate Programs. Web.
Gehringer, A. (2020). Richard Branson’s business strategy: Proper risk taking. Rhythm Systems. Web.
Knapp, A. (2021). Richard Branson’s 17-year journey into space: How the Virgin founder became the first billionaire to fly own rocket. Forbes. Web.
Niphadkar, C. (2017). The new age transformational leader: Richard Branson. International Journal of Scientific & Engineering Research, 8(6), 542-547. Web.
Olsen, E. (2021). Mission statements. OnStrategy. Web.
Steinmann, B., Klug, H. J., & Maier, G. W. (2018). The path is the goal: How transformational leaders enhance followers’ job attitudes and proactive behavior. Frontiers in Psychology, 2338. Web.
Ugochukwu, C. (2021). Transformational leadership. SimplyPsychology. Web.
Virgin Galactic. (n.d.). Home page. Web.