"New leadership" studies often suggest that transformational leadership in particular produces desirable leadership outcomes. However, few studies have demonstrated a direct link between the exercise of a particular type of leadership and organisational effectiveness. Efforts to establish such a link are hampered by the absence of a generally agreed definition of organisational effectiveness. This is particularly true in higher education where attempts to develop models of organisational effectiveness applicable to universities have been sparse despite worldwide calls for universities to demonstrate "value for money" performance. This paper examines the relationship between transformational/ transactional leadership and university organisational effectiveness. In the course of the examination, the paper indicates possible modifications to the original conceptualisation of transformational leadership. The paper also argues for university leadership that is self-reflective and capable of utilising the array of leadership characteristics subsumed under the transformational and transactional leadership notions.