In a world that is rapidly changing, organizations are finding that they must adapt quickly to meet the needs of their changing environment. Organizations can only remain relevant and achieve long-term success and sustainability by adopting a model of leadership that addresses the needs of their fluctuating environment. However, many organizations have failed to adapt to their operating environment. Some examples of recent major organizational failures and bankruptcies include: Circuit City, Hollywood Video, and Mervyn's. To remain competitive, leaders must adopt a model that allows for rapid responses to the changing business environment. Transformational leadership can serve as this needed model.