Where power was once the key element to effective leadership, it is now believed that vision, commitment, communication, and shared decision making are the cornerstones of effective leadership. A more collaborative model of leadership is evolving. This paper reviews the development of transformational leadership and contrasts it against transactional leadership. Several important contributions to the literature of leadership are reviewed. Following an introduction, the sections included are: (1) "Transactional Leadership"; (2) "A New Leadership Paradigm"; and (3) "A Developed Understanding of Effective Leadership." (EMK)