As leaders, our days are filled with emails, meetings, reports, and decisions. We communicate about tasks, processes, and problems—the work that must get done. But is simply transacting business enough to lead effectively?
The answer is no. Leadership is more than just transactions—it requires interaction.
What Is Transacting Business?
When I talk about transacting business, I mean communicating about:
- Details of projects
- Decisions that need to be made
- Processes and workflows
- Problems that need solving
In other words, it’s the functional side of communication—getting things done.
But if that’s all we do, we risk missing an essential part of leadership: building relationships.
Why Interaction Matters
Interaction goes beyond work-related conversations. It includes:
✔️ Understanding your team members as individuals
✔️ Talking about interests, passions, and challenges
✔️ Building trust and relationships
A workplace that only focuses on transactions can feel cold and impersonal. But a workplace where leaders take time to interact creates connection and engagement.
Transaction vs. Interaction – Finding the Balance
The key is not choosing one over the other but knowing when to flex between them.
For example:
🔹 In urgent situations, transactions come first. If a project is off track, leaders must focus on problem-solving rather than small talk.
🔹 In routine interactions, balance both. Even in a quick check-in, a simple “How are you doing?” builds connection.
🔹 For long-term leadership success, interactions matter. Building relationships improves collaboration and trust, making transactional moments more effective.
The Transaction-Interaction Flexor
In my book, Flexible Leadership: Navigate Uncertainty and Lead with Confidence, I introduce a leadership tool called the Transaction-Interaction Flexor. This concept helps leaders assess when to focus on getting work done versus building relationships—and how to adjust based on the situation and the individual.
The best leaders don’t just transact business—they interact with people.
Your Leadership Challenge
Next time you communicate with your team, ask yourself:
- Am I only transacting, or am I also interacting?
- Does this moment require more business focus or more relationship-building?
- Am I adjusting my approach based on the person and the situation?
By finding the right balance, you’ll create stronger teams, better communication, and a more engaged workplace.
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