This report analyzes transformational leadership, focusing on its impact on business functions and the importance of innovation. The report discusses the skills of a good leader, including charisma, innovation, and teamwork. The report references articles by Hoch et al. (2016) and McConnell (2018) to support the analysis, highlighting the effectiveness of transformational leadership in various situations and its role in fostering motivation and creative work. The report emphasizes the significance of transformational leadership in driving organizational growth and adapting to internal and external pressures. The report provides a comprehensive overview of transformational leadership, its characteristics, and its advantages in the modern business environment.