Organisational success is assumed to hinge on the effectiveness of leadership that is virtuous with greater inner strength. Organisational regulatory regimes by themselves do not provide solutions to problems of poor performance. This article describes the attributes and virtues of transformational leadership that are missing in Organisations that often fail. It holds that effective leadership empowers subordinates who in return become leaders at their levels in the organisation. Furthermore, it notes that most organisations are led by people whose leadership remains at positional occupancy instead of transitioning to higher levels of influence. Using document analysis and reviewing tenets of Transformational Leadership theory, Maxwell Levels of Leadership and Virtue Ethics theory, the article holds that effective leadership is paramount to successful organisational governance, problem-solving and performance. This article finds that many organisations are, as a result, lacking in key aspects of transitional leadership such as being energetic, enthusiastic and passionate about the purpose and vision. Transformational leaders are task- and people-oriented, they have respect for values and hold unfaltering belief in the dignity and rights of others. The article concludes that such organisational culture that promotes employee engagement, increase productivity and enhance brand reputation is missing in many private and public organisations. The article recommends, therefore, that organisations need to establish transformational leadership in order to improve their chances of success. It recommends that organisations should, in addition to establishing adequate regulatory regimes, secure effective visionary transformational leadership in order to achieve successful governance, problem-solving and performance

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