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12 Essential Qualities Of Effective Leadership
The following twelve qualities are considered to be essential to effective leadership.
A commendable leader must possess a strong sense of integrity, self-awareness, fortitude, compassion, and resilience. It is imperative that they acquire the skills and competencies associated with agile methodologies, while also cultivating their influence through effective communication of the organisation's vision, demonstrating gratitude, and fostering collaborative partnerships. It is possible to discern how these key leadership qualities can be acquired and enhanced at all levels of an organisation.
It is evident that leaders exert a significant influence on the composition of teams, organisations, communities, and indeed the world at large.
The necessity for effective leadership is paramount in facilitating the navigation of challenges and the implementation of crucial decisions that ensure progress in both significant and minor domains.
The identification of a poor leader is a relatively straightforward process; however, the identification of a good leader is more challenging. What qualities would the majority of people consider to be essential for an effective leader?
An Analysis of the Attributes of Effective Leadership
Drawing upon four decades of research and experience working with leaders at thousands of organisations around the world, it has been found that the most effective leaders consistently possess certain fundamental qualities and skills. The following twelve leadership traits have been identified as being of particular importance.
Self-Awareness
Respect
Compassion
Vision
Communication
Learning Agility
Collaboration
Influence
Integrity
Courage
Gratitude
Resilience
1. Self-Awareness
Self-awareness is defined as the understanding of oneself, encompassing personality traits, behaviours, anxieties, and emotions. While this is a more introspective characteristic, self-awareness and humility are of the utmost importance in leadership. The ability to understand oneself and recognise one's own strengths and weaknesses is a prerequisite for effective leadership. It is imperative to understand how others perceive one's presence, and to recognise the manner in which one presents oneself at both professional and domestic settings. It is imperative to invest time in acquiring knowledge about the four aspects of self-awareness and the methods of enhancing each component.
2. Respect
It is widely acknowledged that demonstrating consistent respect is one of the most significant actions a leader can undertake. The practice has been shown to contribute to the alleviation of tensions and conflicts, the fostering of trust, and the enhancement of effectiveness. The establishment of a culture of respect entails more than merely the absence of disrespect. Respectfulness can be demonstrated in a variety of ways; however, it frequently commences with the acknowledgement of others' viewpoints and the endeavour to cultivate a sense of belonging in the workplace. These elements are indispensable components of a healthy workplace culture.
3. Compassion
Compassion is a concept that extends beyond the mere act of empathy, encompassing not only the act of listening and seeking to understand, but also a profound commitment to act in accordance with this understanding. Compassion in leaders is predicated on the application of learning. Following the articulation of a concern or the expression of an opinion, the absence of subsequent action on the part of the leader can engender a sense of non-representation. This finding is supported by the research conducted by our team. This is the crux of compassionate leadership, and it has been demonstrated to engender trust, increase collaboration, and decrease turnover across organisations.
4. Vision
Vision is defined as aspiration for the future. The motivation of others and the fostering of commitment to a shared vision are integral components of leadership. Purpose-driven leaders ensure that the daily tasks of their team are connected to the values of individual team members and the overall direction of the organisation. The implementation of this strategy has been demonstrated to facilitate a sense of purpose in employees, thereby enhancing their engagement, inspiring trust, and propelling organisational priorities. It is imperative to articulate the vision in a manner that facilitates comprehension, retention, and subsequent dissemination by others.
5. Communication
Communication manifests in myriad forms, encompassing the transmission of information, the act of storytelling, the solicitation of input, and the utilisation of active listening techniques. The most effective leaders are adept communicators who can convey information verbally and in written form, and who can interact effectively with individuals from diverse backgrounds, roles, levels, and geographical locations. This is because leadership and communication are inextricably linked. The quality and effectiveness of communication among leaders within an organisation has been shown to have a direct impact on the success of the business strategy (Smith, 2020).
6. Learning Agility
The concept of learning agility is predicated on the ability to respond effectively when confronted with uncertainty. Those who are able to assimilate information rapidly or demonstrate excellence in novel environments may already be engaged in agile learning. However, it is important to note that all individuals have the capacity to foster and enhance their learning agility through deliberate practice and dedicated effort. It is evident that exemplary leaders are distinguished by their exceptional capacity for learning.
7. Collaboration
Collaboration is a characteristic demonstrated when leaders work effectively with a variety of colleagues who possess different social identities, locations, roles, and experiences. In the contemporary world, characterised by increasing complexity and interconnectedness, effective leaders must navigate boundaries and cultivate the capacity to transcend various forms of division and organisational silos. When leaders value and embrace collaboration, whether within their teams or across different functions, a number of benefits ensue. These include increased innovation, higher-performing teams and a more engaged and empowered workforce.
8. Influence
The ability to exert influence over others, or to persuade them through the judicious application of suitable influencing tactics, is a salient trait of inspiring, effective leaders. For some individuals, the term "influence" may carry an undesirable connotation. However, as a leader, the ability to influence others in order to complete the work is paramount; one cannot achieve this alone. Influence is a distinct concept from manipulation, and it must be executed in an authentic and transparent manner. The ability to do so demands elevated levels of emotional intelligence and trust.
9. Integrity
Integrity can be defined as consistency, honesty, morality, and trustworthiness. It is an essential leadership trait for the individual and the organisation. This is of particular importance for top-level executives, who are responsible for charting the course of the organisation and making numerous other significant decisions. The present study has identified a potential vulnerability in organisational leadership, namely the absence of a cohesive moral compass. To mitigate this risk, it is imperative to emphasise the significance of honesty and integrity to managers at all levels.
10. Courage
The concept of courage is pivotal in enabling both team members and leaders to take bold actions that effect positive change. It can be challenging to articulate oneself in a professional setting, whether one wishes to propose a novel concept, offer constructive criticism to a subordinate, or raise a concern with a superior. This is a fundamental aspect of the concept of courage as a key leadership trait, which is defined as the ability to take action in the face of adversity to achieve a desired outcome. Leaders who promote high levels of psychological safety in the workplace enable their teams to speak up freely and share candid concerns without fear of repercussions. This approach fosters a coaching culture that supports courage and truth-telling.
11. Gratitude
Gratitude is defined as the positive emotional response experienced in response to the receipt of a valuable gift or benefit. Expressing gratitude has been demonstrated to engender elevated self-esteem, diminished depression and anxiety, and enhanced sleep quality. It is evident that a sense of genuine gratitude can positively influence one's leadership abilities. However, it is noteworthy that the expression of gratitude is infrequent in professional contexts, despite the majority of individuals indicating a readiness to extend their efforts in exchange for acknowledgement from their superiors. The most effective leaders are adept at expressing regular gratitude in the workplace.
12. Resilience
Resilience is defined as the ability to recover from or adapt to adverse circumstances. The practice of resilient leadership is characterised by the projection of a positive outlook, which in turn helps to inspire others to maintain the emotional strength required to commit to a shared vision, as well as the courage to move forward and overcome setbacks. A competent leader places significant emphasis on resilience, encompassing both self-care and the prioritisation of employee well-being. This approach fosters enhanced performance not only for the leader, but also for their respective teams.
21st-Century Leadership
The art of 21st-century leadership:
This text will consider succession planning and leadership development.
In the context of contemporary challenges, the necessity for effective leadership is paramount. The following discourse will provide an overview of the traits and practices required to succeed as a leader in the contemporary era. In addition, it will examine the factory model that can assist aspiring managers in their professional development.
In the contemporary context of a highly fragmented global environment, the act of reading a global organisation is a challenging endeavour. This challenge is arguably more pronounced than it has ever been in the past. Since the onset of the global pandemic of Coronavirus Disease 2019 (Covid-19) and the escalation of geopolitical tensions, leadership teams have been confronted with an escalating number of uncertainties and disruptions. These include the sudden emergence of upending technologies, such as generative AI; the energy transition; and a global workforce seeking more autonomy, empowerment, flexibility, and mobility.
A compounding and interconnected effect across all these disruptions is evident, and there is a decrease in the time available to leaders to react to them. It is estimated that ten years ago, Chief Executive Officers and top teams typically focused on four or five critical issues at any one point in time; today, the number is double that.
It is estimated that ten years ago, Chief Executive Officers and top teams typically focused on four or five critical issues at any one point in time; today, the number is double that.
In the course of our research, we have consulted extensively with Chief Executive Officers and other leaders on a global scale. It is evident from these consultations that the most significant impediment to the establishment of resilient and high-performing teams is the presence of a limited number of leaders who are capable of thriving and excelling within the uncertain 21st-century business environment. There are distinct differences between the personal attributes, best practices, and approaches to leadership development required in contemporary organisations and those of yesteryear.
The present article explores the qualities and competencies required to be a leader in the 21st century, and the manner in which organisations can establish a leadership development programme to nurture, guide, and prepare the next generation of managerial personnel. Organisations that prioritise leadership development as a fundamental capability and proactively address the needs of both existing and aspiring leaders can enhance their overall resilience and substantially improve their ability to withstand disruption.
The character of 21st-century leadership: The following section will address the personal attributes of the subject.
As the global context becomes increasingly complex, it is imperative that our perceptions of and approaches to leadership development evolve in a commensurate manner. Drawing upon extensive research with leadership teams across a wide range of companies, sectors, and regions worldwide, as well as our own longitudinal studies, we have identified six leadership traits that are crucial for success in the current uncertain environment.
The concept of positive energy is predicated on the notion of personal balance and inspiration. This compendium of traits is oriented towards the development (and protection) of the mind, body and spirit by managers. It is imperative for managers to possess a comprehensive understanding of their own motivators and drivers if they are to optimise their potential as leaders and continue to thrive in their roles. In light of recent McKinsey research, which indicates that a mobile, post-pandemic, multigenerational workforce is seeking increased connection, authenticity and inspiration from their leaders, energy has become a critical commodity.
Servant and selfless leader. The most successful leaders, as observed, demonstrate a clear focus on the success of the team and their colleagues. The focus is not on the self, but rather on the deeds, actions, and outcomes of others. The focus of this discourse is on the organisation's mission, its fundamental purpose, and its positive impact. This leadership approach assumes greater importance when considering the results of a recent McKinsey survey, in which 70 percent of approximately 1,000 employees stated that their work largely defines their sense of meaning and purpose.2
The necessity of ongoing learning and the cultivation of a humble mindset is paramount. It is imperative that leaders are not averse to taking risks; they must be perpetually curious and demonstrate a willingness to learn from their mistakes. The most accomplished leaders observed in this study did not perceive themselves as the foremost expert or the most intelligent individual in the room. The subjects' remarkable qualities are their humility and their readiness to be vulnerable. Microsoft's Satya Nadella, for instance, advocated for greater transparency and a learn-it-all rather than a know-it-all attitude at all levels of the company, helping propel its cultural transformation.³
Grit and resilience. It is imperative that leaders maintain composure in the face of disruption, albeit this can be challenging at times. They demonstrate a remarkable aptitude for assimilating the most salient ideas in their environment, while maintaining an unwavering commitment to making arduous decisions when the situation demands. This phenomenon persists even in times of adversity, suggesting a resilience that cannot be easily dismantled. They methodically analyse the underlying causes of a given situation, make adjustments to behaviours, depersonalise, and move forward—maintaining a balanced perspective, neither excessively optimistic nor excessively pessimistic. The findings of the latest Organizational Health Index research suggest that companies with leaders who act decisively and commit to the decisions made are 4.2 times more likely than their peers to be healthy.4
Levity. The high-performing leaders observed in this study demonstrated an awareness of the importance of incorporating humour into their discourse, even in the context of serious matters. The incorporation of humour has been demonstrated to facilitate team bonding, the management of high-pressure scenarios, and the elicitation of collective creativity. Indeed, research has demonstrated that leaders who possess a sense of humour, or even a moderate degree of humour, are 27 percent more motivating and inspiring than their counterparts.5 Furthermore, employees exhibit 15 percent greater engagement when working with such leaders as opposed to other leaders, and teams demonstrate a 200 percent increase in creativity when tasked with solving a creativity challenge.
Stewardship. The most effective leaders adopt a long-term perspective; they perceive themselves as custodians of their organisations and teams "for the present moment". It is acknowledged that market fluctuations, evolving customer demands, and the transformation of leadership roles in response to organisational development are all inherent aspects of managerial practice. In light of these considerations, the organisation has adopted an intentional approach to developing leadership capabilities. Upon completion of their duties, the objective is for them to depart from the team and the institution in a state of enhanced strength, pertinence, and sustainability, in comparison to their initial state at the time of their induction.
The art of 21st-century leadership: This text will consider succession planning and leadership development.
In the context of contemporary challenges, the necessity for effective leadership is paramount. The following discourse will provide an overview of the traits and practices that are requisite for success in leadership roles in the contemporary era. In addition, it will examine the factory model as a means of facilitating the ascent of aspiring managers.
In the contemporary context of a highly fragmented global environment, the leadership of a global organisation presents significant challenges, which may be considered to be more arduous than ever before. Since the onset of the global pandemic of Coronavirus Disease 2019 (Covid-19) and the escalation of geopolitical tensions, leadership teams have been confronted with an escalating number of uncertainties and disruptions. These include the sudden emergence of upending technologies, such as generative AI; the energy transition; and a global workforce seeking more autonomy, empowerment, flexibility, and mobility.
A compounding and interconnected effect across all these disruptions is evident, and there is a decrease in the time available to leaders to react to them. It is estimated that ten years ago, Chief Executive Officers and top teams typically focused on four or five critical issues at any one point in time; today, the number is double that.
It is estimated that ten years ago, Chief Executive Officers and top teams typically focused on four or five critical issues at any one point in time; today, the number is double that.
The relevance and usefulness of this article for the reader is a key consideration.
The following insights have been identified as being of the greatest popularity:
The following paper sets out six lessons on agentic AI, drawn from the experiences of those working in the field.
McKinsey Technology Trends Outlook 2025
The present study explores the current state of AI and the manner in which organisations are adapting their practices to generate value.
The present moment is characterised by a significant development in the field of infrastructure.
The economic potential of generative AI: an exploration of the next productivity frontier
In the course of our engagements and discussions with Chief Executive Officers and leaders on a global scale, it has become evident that the most significant impediment to the establishment of resilient and high-performing teams is the presence of a limited number of leaders who are capable of not only thriving but also performing at a high level within the uncertain 21st-century business environment. There are distinct differences between the personal attributes, best practices, and approaches to leadership development required in contemporary organisations and those of yesteryear.
The present article explores the qualities and competencies required to be a leader in the 21st century, and the manner in which organisations can establish a leadership development programme to nurture, guide, and prepare the next generation of managerial personnel. Organisations that prioritise leadership development as a fundamental capability and proactively address the needs of both existing and aspiring leaders can enhance their overall resilience and substantially improve their ability to withstand disruption.
The character of 21st-century leadership: The following section will address the personal attributes of the subject.
As the global context becomes increasingly complex, it is imperative that our perceptions of and approaches to leadership development evolve in a commensurate manner. Drawing upon extensive research with leadership teams across a wide range of companies, sectors, and regions worldwide, as well as our own longitudinal studies, we have identified six leadership traits that are crucial for success in the current uncertain environment.
The concept of positive energy is predicated on the notion of personal balance and inspiration. This compendium of traits is oriented towards the development (and protection) of the mind, body and spirit by managers. It is imperative for managers to possess a comprehensive understanding of their own motivators and drivers if they are to optimise their potential as leaders and continue to thrive in their roles. In light of recent McKinsey research, which indicates that a mobile, post-pandemic, multigenerational workforce is seeking increased connection, authenticity and inspiration from their leaders, energy has become a critical commodity.
Servant and selfless leader. The most accomplished leaders observed in this study demonstrated a pronounced focus on the success of their teams and their colleagues. The focus is not on the self, but rather on the deeds, actions, and outcomes of others. The focus of this discourse is on the organisation's mission, its fundamental purpose, and its positive impact. This leadership approach assumes greater importance when considering the results of a recent McKinsey survey, in which 70 percent of approximately 1,000 employees stated that their work largely defines their sense of meaning and purpose.2
The necessity of ongoing learning and the cultivation of a humble mindset is paramount. It is imperative that leaders are not averse to taking risks; they must be perpetually curious and demonstrate a willingness to learn from their mistakes. The most accomplished leaders observed in this study did not perceive themselves as the foremost expert or the most intelligent individual in the room. The subjects' remarkable qualities are their humility and their readiness to be vulnerable. Microsoft's Satya Nadella, for instance, advocated for greater transparency and a learn-it-all rather than a know-it-all attitude at all levels of the company, helping propel its cultural transformation.³
Grit and resilience. It is imperative for leaders to maintain composure in the face of adversity. They demonstrate a remarkable aptitude for assimilating the most salient ideas in their environment, while maintaining an unwavering commitment to making arduous decisions when the situation demands. This phenomenon persists even in times of adversity, suggesting a resilience that cannot be easily dismantled. They methodically analyse the underlying causes of a given situation, make adjustments to behaviours, depersonalise, and move forward—maintaining a balanced perspective, neither excessively optimistic nor excessively pessimistic. The most recent Organizational Health Index research suggests that companies with leaders who act decisively and commit to the decisions made are 4.2 times more likely than their peers to be healthy.4
Levity. The high-performing leaders observed in this study demonstrated an awareness of the importance of incorporating humour into their discourse, even in the context of serious matters. The incorporation of humour has been demonstrated to facilitate team bonding, the management of high-pressure situations, and the enhancement of collective creativity. Indeed, research has demonstrated that leaders who possess a sense of humour, or even a moderate degree of humour, are 27 percent more motivating and inspiring than their counterparts.5 Furthermore, employees exhibit 15 percent higher levels of engagement when working with such leaders as opposed to other leaders, and teams demonstrate a 200 percent increase in creativity when tasked with solving a creativity challenge.
Stewardship. The most effective leaders adopt a long-term perspective; they perceive themselves as custodians of their organisations and teams "for the present moment". It is acknowledged that market fluctuations, evolving customer demands, and the transformation of leadership roles in response to organisational developments are inherent aspects of entrepreneurial endeavours. In light of these considerations, the organisation has adopted an intentional approach to developing leadership capabilities. Upon completion of their duties, the objective is for them to depart from the team and the institution in a state of enhanced strength, heightened relevance, and augmented sustainability, in comparison to their initial state at the time of their induction.
From Strategy to Performance: A study of the methods by which leaders can construct an operating model that functions effectively.
Registration for McKinsey Live is now open: From Strategy to Performance: A study of the methods by which leaders can construct an operating model that functions effectively.
The event is scheduled to take place on Tuesday, September 30^(th) at 10:30 a.m. EDT / 4:30 p.m. CEST.
In the contemporary business environment, characterised by accelerated transformation, digital innovation, evolving customer expectations and novel methodologies, conventional operating models are no longer adequate. It is incumbent upon business leaders to reconsider the manner in which their organisations engender value, facilitate expeditious adaptation, and foster the empowerment of talent. Delegates are invited to attend a presentation by McKinsey senior partners Alexis Krivkovich and Brooke Weddle, in which they will share a research-backed approach to organisational design. The approach will include the "nine golden rules" for transforming operating models and building capabilities that last.
The craft of 21st-century leadership: The following section will outline the initial best practices.
Recent research and experience in the field indicates a necessity for organisations to adopt alternative leadership approaches in several fundamental areas. Rather than focusing exclusively on the pursuit of profit and the preservation of the status quo, leaders must also consider the effective communication of a vision and opportunities for innovation to all stakeholders. Rather than approaching value creation through the prism of scarcity and capitalising on existing assets, leaders must consider opportunities to co-create with partners. In contrast to a command and control approach, effective leaders must engage in collaborative coaching. The possession of authenticity by leaders is not merely a favourable trait; it is an expectation held by employees, customers and virtually all stakeholders along the value chain.
In the nascent stages of the 21st century, companies are still in the early stages of defining the craft of leadership. However, several best practices are emerging.
It is imperative to engage in a rigorous and unrelenting manner with all key stakeholders. Constructive dialogue and debate are instrumental in distinguishing the most successful companies from their competitors. It is therefore incumbent upon leaders to catalyse rigorous discussions across the organisation, including with senior leaders, frontline workers, the board, and so on. Leaders can rely on a number of well-established methods, such as premortems, red team and blue team exercises, and what-if sessions, to facilitate these conversations. The implementation of such methods assumes particular importance in the context of challenging decisions, which also require candour, a willingness to make trade-offs, and the courage to take a stand. Subsequent to the decision-making process, it is incumbent upon leaders to provide support through the medium of clear communication. It is imperative that they formulate concise, authentic messages that can effectively address the issue of information overload and provide tangible outcomes that are quantifiable and perceptible. In the context of the pandemic, effective communicators employed a structured approach, providing information in a timely manner and ensuring its clarity, frequency, and memorability.
The team should be enrolled (and re-enrolled) accordingly. It is incumbent upon leaders to ensure that all individuals are fully enrolled in the company's vision and strategy and willing to contribute of their own free will. This is distinct from the mere act of gaining buy-in; individual members of an enrolled team are personally motivated to execute the organisation's mission. Employees who have enrolled in the programme are characterised by their self-discipline and self-motivation, which leads to their greater propensity to enforce the established standards and address any deviations from them. It is imperative for leaders to engage in perpetual reflection on the conditions – encompassing behaviours, motivations and processes – that will enable profound enrolment and facilitate the requisite corrections.
The establishment of an operating model, and the subsequent implementation of an operating cadence, must be informed by the principle of optimising velocity. In order to enhance the agility of their business operations, leaders are advised to explore alternative models that facilitate expeditious decision-making, minimal bureaucracy, and the utilisation of information technology for the dissemination of data. This approach is recommended as an alternative to the conventional matrixed organisational structure and reporting lines that are commonly employed in traditional business environments. It is recommended that leaders seek to implement standardisation of processes in areas where there is clear benefit, directly engage frontline leaders, and establish best practices through playbooks, training, and other formats. Information should be shared via digital dashboards and other tools. The implementation of these strategies is expected to yield a performance advantage, enhance productivity, cultivate a sense of responsibility, and significantly accelerate the decision-making process.
It is imperative to emphasise a culture of trust. The trust equation, as developed by the thought leader Charles H. Green, can be expressed as follows: credibility times reliability times intimacy divided by self-orientation.⁶ As the American economist and statesman George Shultz wrote on the occasion of his 100th birthday: As has been previously observed, trust can be considered to be the 'coin of the realm'. In the context of trust, irrespective of the setting – be it the family room, the schoolroom, the coach's room, the office, the government room or the military room – positive outcomes ensued. In the absence of trust, positive outcomes were not observed. All other aspects are of secondary importance."7 Consequently, a pivotal responsibility for the contemporary leader is to assess the organisation's strengths and weaknesses in each component of the trust equation, and methodically address any concerns pertaining to reliability, credibility, or vulnerability.
The structure of 21st-century leadership: Leadership factories
Inquisitive inquiries directed towards Chief Executive Officers and leadership teams concerning the most significant impediments to achieving their aspirations and attaining their full potential frequently elicit responses pertaining to talent and the leadership team on the field. Specifically, they emphasise the urgent necessity to cultivate leadership capabilities within their organisations. This is not only to ensure the successful management of present disruptions, but also to fortify themselves against the inevitable shifts in the business landscape that are to be expected in the future.
Whilst certain leadership skills can be imparted within a classroom setting, the majority of effective leadership training and transfer occurs in the workplace. These competencies are embedded within the assessment, selection, and training pathways of new hires, as well as through mentorship and apprenticeship, role modelling and coaching, and other real-world interactions.
In the 1980s, the term 'leadership factory' was coined by Ron Daniel, former global managing partner at McKinsey, to describe this particular dynamic. The concept refers to colleagues investing their time in other colleagues, learning in situ, providing regular feedback, and sharing personal and collective insights, with the result of producing great leaders. The factory model that he envisioned some four decades ago is still successfully in place at McKinsey, which was ranked first in the list of best companies for future leaders in 2024.8 And its practices have evolved through organisations such as GE, IBM, and P&G, all of which have created their own leadership incubators.
In the course of our research, we have observed several new additions to the factory model blueprint, i.e. guidance that leaders can use in their own leadership factories and leadership development curricula.
The establishment of leadership attributes is imperative. It is incumbent upon the prevailing leadership team to delineate with precision the attributes required for both the team and the organisation. It is imperative that this text assists aspiring and high-potential leaders in comprehending the essence of leadership, distinguishing it from its antithesis. The concept of leadership, as previously theorised, does not necessitate consensus; rather, it is predicated upon the alignment of ideas and objectives. The objective is not to achieve popularity; rather, it necessitates engagement. The focus is not on individual performance, but rather on the collaborative aspect of the team dynamic. This entails making difficult decisions independently on occasion. The ability to manage these polarities and achieve equilibrium is a prerequisite for success. The role of leadership can, at times, engender a sense of isolation. The endeavour demands elevated levels of confidence, fortitude, and the capacity for compartmentalisation. As Douglas MacArthur observed, "The world conspires against the brave." This represents the enduring conflict between the demands of the crowd and the dictates of one's conscience.
It is imperative that action is taken without further delay. It is imperative that leaders assign high-potential managers to the most challenging situations, thereby placing them in situations that may be uncomfortable for them. In addition, it is essential that these managers are provided with the appropriate mentorship and continuous coaching.
A rethink is required regarding the development of capabilities on a large scale. It is recommended that the current leadership team devise personalised immersion sessions for new leaders. It is imperative that the most senior executives assume leadership roles in these courses, as opposed to delegating responsibility to Human Resources or allowing self-directed learning to take precedence. Senior leaders should engage in dialogue with future leaders, encourage them to share their most significant challenges, and collectively formulate strategies to address these issues. It is important to recognise that lessons can be derived from any element of the business ecosystem. A significant aspect of Wendy Kopp's success with Teach for All, for instance, was her propensity to place trust in international collaborators. The organisation in question has established a set of unifying leadership principles, including a commitment to shared purpose, theory of change, values, and vision. Subsequently, a network of partners and training opportunities was established with the objective of enabling leaders to learn from one another and apply the acquired knowledge in their respective countries and contexts. She asserts that there is considerable potential in nurturing grassroots initiatives while concurrently facilitating global exposure for individuals.10 It is imperative that other leadership institutions take this observation to heart.
The act of leading others is to be preceded by the act of leading oneself. Current leaders should allocate time and energy to assist new and aspiring leaders in managing themselves and operating at their personal best. Feedback constitutes a pivotal starting point for the process of self-improvement. Retired US Navy Admiral Eric Olson discovered as much when he led the US Special Operations Command, overseeing a group of warriors not known for displaying their emotions. As Olson informed the authors of The Journey of Leadership: In How CEOs Learn to Lead from the Inside Out (Portfolio/Penguin Random House, September 2024), the author undertook a nine-month listening tour with the soldiers, during which he found some emotional "fraying around the edges".11 The feedback prompted Olson and his team to change some policies, prioritise resources, and create more support (such as from nutritionists, physical therapists, and psychologists). The objective of this initiative was to enhance the cohesion, effectiveness and morale of both Navy SEALs and their families. This approach was underpinned by the understanding that health and readiness are fundamental aspects of military operations, and that these factors are influenced by the home environment.
The objective is to empower leaders to construct their own bespoke, self-directed learning pathways. It is recommended that organisations provide modules on a range of leadership topics, including leading self, leading teams, leading organisations, and using technology to do all three. The provision of ongoing, candid feedback from peers and team members will once again be of critical importance. The proposed programme is designed to enhance the self-awareness of emerging leaders, instigate a process of self-correction, and establish developmental and mentoring opportunities across the organisation.
The provision of 21st-century leadership: The following text concerns itself with the issue of preparation for Chief Executive Officers and organisations.
In order to facilitate the development of 21st-century leaders, contemporary Chief Executive Officers must adopt a new conceptualisation of their role, embracing the functions of a Chief Talent Officer. It is imperative that they assist in the identification of high-potential leaders within their respective organisations, cultivating personal relationships with managers at various levels. It is imperative that measures are implemented to safeguard the mavericks within the organisation; that is to say, the managers who, whether intentionally or not, may deviate from conventional processes or protocols. These individuals may be the very leaders who guide their organisations into the innovative future.
It is imperative that Chief Executive Officers embody the qualities of exemplary role models within the context of leadership development. It is imperative that they uphold the most rigorous standards for performance and productivity. The utilisation of personal narratives and experiences has been demonstrated to be a highly effective method of inspiring and enrolling colleagues.
Finally, it is incumbent upon CEOs to take a step back and ensure that the leadership factory is bolstered by appropriate performance management systems, including employee value propositions, incentives, and feedback mechanisms. It is imperative that these systems reflect the 21st-century leadership attributes discussed in this text. It is imperative that such systems be designed with the principles of accountability, empowerment, and expediency in mind. Absent such systemic changes, a leadership factory will not realise its full potential, and may even result in the degradation of the aspects of culture and the skills most required for success.
The only certainty for today's global leader is that circumstances will remain uncertain. It is reasonable to hypothesise that 2025 will be a year of comparable challenges to those experienced in the present one. So will 2026. Consequently, it is incumbent upon leaders to cease reliance on extant business practices and rituals that have become obsolete. Instead, they have the capacity to engage in collaborative processes with their teams, employees, and other key stakeholders, thereby contributing to the creation of novel leadership principles.
The Case for Leadership Character
In summary:
A plethora of research has demonstrated that organisations with leaders who achieve high character scores exhibit an average return on assets that is five times higher than that of organisations with low character scores.
The concept of leadership character encompasses more than mere ethical principles; it encompasses traits such as compassion, a propensity to serve others, and the ability to forgive.
The role of character in decision-making and performance is a significant one, and it is imperative for leaders at all levels, not solely those in senior roles.
When considering exemplary leadership, it is customary to envision individuals who embody ethical conduct, such as veracity, courageous defence of principles, and equitable treatment of others. The notion of "ethics" is frequently perceived as being synonymous with "character". A recent survey revealed that 88% of employees believe that there is a necessity for "moral leadership" among the most senior levels in their organisation.¹ However, a leader's character encompasses more than just ethics, integrity, and morals.
The business advantage of leadership character
Before proceeding further, it is important to consider whether there is a business benefit to organisations that have leaders who operate with character. As stated in the book Return on Character, research indicates that... The Real Reason Leaders and Their Companies Win by Fred Kiel, organisations led by Chief Executive Officers (CEOs) whose employees gave them high marks for character had an average return on assets that was five times higher than that of organisations whose leaders received low character scores.2
The present study examined factors beyond the mere concept of "ethical" behaviour, encompassing the proactivity of a CEO in serving others, demonstrating compassion, and offering forgiveness. These qualities transcend the conventional boundaries of ethics and morals.
In the years following the research conducted by Return on Character, the notion that leadership character encompasses operational excellence in addition to adhering to regulatory guidelines and ensuring fair governance has gained widespread acceptance. The impact of this phenomenon on decision-making and professional performance has been a subject of considerable interest. It is evident that character is reflected in the actions of all leaders, not solely those in the most senior roles. Consequently, this is a significant leadership trait for individuals responsible for leadership development to take into consideration.
The present study explores the relationship between character and judgement, as well as its implications for decision-making processes.
"It is evident that leaders have the capacity to effect change that extends beyond the scope of their own ethical behaviour. It is evident that the individuals in question are held accountable for the decisions made by others as well as their own. This responsibility, therefore, has the potential to significantly amplify the positive impact they exert by inspiring others to elevate their own conduct. It is incumbent upon leaders to consider the manner in which they can exert influence over their colleagues, by establishing the norms to which they adhere and the decision-making environment they engender.
A significant development that has influenced our conceptualisations of leadership character is the tendency of organisations to delegate decision-making authority to lower levels within the organisational structure. The ability to make decisions has become a pivotal skill for leaders and employees alike. It is widely acknowledged that character is a fundamental component of the decision-making process.4
A workplace analysis of the last six decades shows the proportion of jobs requiring employee decision-making has grown from 8% to 34%.5 This indicates that on a daily basis, a third of a company's workforce is tasked with making important decisions ranging from the unambiguous to more complex 'judgment calls' with far-reaching implications beyond a person's immediate sphere of influence. The decisions made in these situations serve to demonstrate the leadership qualities of the individual concerned.
The present study aims to broaden the definition of leadership character.
The concept of leadership character is predicated on the space between an individual's values and morals and the key activities facing any leader, including decision making.
Following extensive research by faculty members at HBS, thought leaders at Harvard Business Impact, and leadership authors, in addition to client learner and advisory groups, Harvard Business Impact has identified seven key leadership qualities, which are sometimes referred to as "super-powers". These character traits are of paramount importance to leadership.
The following seven character traits have been identified as being of particular significance in terms of leadership.
Integrity
Self-awareness
Determination
Empathy
Courage
Optimism
The presence of curiosity and an open mind is indicated.
Leaders establish and demonstrate their character through the daily habits they adhere to and the decisions they make, as well as the decision-making environment they cultivate for their employees.
In order to align their values, morals, and decisions, leaders are advised to continually ask themselves the following question:
The question that arises from this is: what is the identity of the individual when they are preoccupied with activity?
Which character traits would I be most inclined to identify with? Which of these options would be the most appropriate for me to demonstrate? Why might that be?
The question to be addressed here is whether the decision-making process of the individual in question is in alignment with the values espoused by the organisation to which they are affiliated.
The question arises as to whether I am able to recognise when I am demonstrating strong leadership qualities.
Could blind spots be a potential concern? If this is the case, it would be prudent to consider whether the current environment is conducive to constructive feedback from team members, which is essential for identifying areas of improvement.
The question that arises is how the provision of direction, clarity, and role modelling to team members can be achieved, with the objective of enabling them to make daily choices that are aligned with their personal values and those of the organisation.
By engaging in introspection in this manner, leaders can more effectively cultivate a culture of value-based decision-making that extends beyond themselves to influence their teams and colleagues.
The question of whether character can be developed in leaders is a complex one.
Whilst competencies such as delegation, conflict resolution and business acumen can be developed through training, it is widely argued that personal qualities such as courage, curiosity and self-awareness are not inherently transferable through instruction.
Nevertheless, it is my conviction that these character traits can be cultivated and refined through the medium of feedback, practice, and coaching. Given the established interrelation between character and decision-making, and their demonstrable impact on organisational success, it can be argued that companies should allocate equivalent time and resources to the nurturing of character in their leaders as they do to the development of managerial skills. However, the results of staff surveys suggest that this is not invariably the case. While approximately two-thirds of leaders are perceived as behaving with integrity or determination, our own research indicates that only around half of employees report seeing their own leader display courage or curiosity.6
Despite investment and efforts to nurture these qualities, the motivation for leaders to embody and exemplify character is, to a considerable extent, contingent on their milieu. To illustrate this point, one may consider the example of a middle manager who has demonstrated courage in the past by advocating for their position to senior leadership. However, they have repeatedly been met with resistance and rejection. Examples of such comments include "Stay in your lane", "I hear that you're underfunded, but we still need you to deliver" and "Our shareholders won't support that". An organisational culture that is not conducive to the expression of leadership qualities by those in positions of authority is a significant deterrent to the manifestation of such qualities. The cultivation of a robust character necessitates a systematic approach to support.
The demonstration of character on the part of leaders has been demonstrated to engender trust and to yield positive business results. Although it is not possible to train character traits directly, it would be imprudent to leave them to chance. Through the utilisation of feedback mechanisms, coaching methodologies, deliberate practice, and the careful application of modelling, leaders within an organisation can cultivate enhancements in their authenticity, integrity, courage, and other critical attributes of character that are instrumental in fostering a healthy organisational culture.