The presented empirical study demonstrates that the predictive validity of Bass' “transformational‐transactional” model of leadership can be enhanced by incorporating certain aspects of the older Ohio State “initiating structure‐consideration” model of leadership. A precise, fine‐grained video‐based method shows that “initiating structure” behaviors (e.g., directing, informing, structuring) explained the variance in leader and team effectiveness better than “transactional behavior.” Thus, a refined version of Bass' augmentation thesis is supported: initiating structure behaviors (and not transactional behaviors, as originally posed) plus transformational leader behaviors are associated with high leader effectiveness. Another moderation effect of transformational leadership is established: between management‐by‐exception active and team effectiveness. The resulting expanded version of the transformational–transactional model calls for further video‐based research of effective (team) leadership behaviors.