Transformational leadership is a process where leaders and followers elevate each other to higher levels of morality and motivation. There are four elements of transformational leadership: idealized influence, where the leader serves as a role model; inspirational motivation, where the leader inspires and motivates; individualized consideration, where the leader shows genuine concern for followers; and intellectual stimulation, where the leader challenges followers to be innovative and creative. Some key challenges of transformational leadership include understanding changing conditions rapidly, inspiring employees effectively, implementing changes successfully, isolating the leader from honest feedback, and receiving accurate feedback about results.