Professional Documents
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Companies need new techniques to train their professionals for the challenges of the 21st
century. Organizational leaders have been struggling with the same challenges in various forms
for the last 10 or 20 years and have yet to find generalizable solutions. The biggest challenges
for business leaders of the next century are going to revolve around coming to understand fully
how global business practices have evolved - based on advances in the use of technology as well
as the ability to connect with others and to be contacted by others, almost anywhere and
anytime. The present paper explains the key principles of leadership and major leadership
challenges for the 21st century, grouped into two categories: market forces, and people issues.
Traditionally people viewed leaders as the few people who are the most talented, who
achieved success in their organizations and who were rewarded with positions of responsibility.
Many people still have this view. If they don't see themselves in the category of the 'few highly
talented people', they are not interested in the topic of leadership. Leadership development
accordingly is seen as further training for the privileged - enhancing their already wide range of
competencies and knowledge with more theory, models and techniques to help them in their
leadership positions. The result is however that organization might get better managers equipped
with more techniques, models and theories - but not better or more leaders.
The most important thing you do is LEAD your people. Every productive activity on
your daily agenda is leadership, regardless of what you call it. You manage advice, teach, decide,
transformed the odds against him by the force of will and effort. The world started to take notice
and give his people shelter and recognition. Through five turbulent decades he has successfully
disseminated the message of peace and tolerance. In a world torn by strife, his message has
reverberated with hope – the hope for a better world. To me, he exemplifies benchmark strategic
“What is the connection between strategic leadership and public relations?” I had once
been asked. Well, in my belief, the two are discrete but complementary. There can’t be good
strategic leadership without the back-up of a good public relations machine and vice versa. It’s
akin to the relationship between music and rhythm. Good leadership without equally good
accompanying PR doesn’t become effective and self-sustaining. Let us dwell on each of these
What is strategic leadership? Very simply, a strategy is a plan of action for accomplishing
a goal. A leader is someone who has the quality to enthuse, energize and integrate a mass of
people and direct their efforts for accomplishing a common goal in any situation.
The US Airforce Field Manual has very aptly defined a strategic leader as “an
experienced person who has the wisdom, vision and ability to plan and execute consequential
The 21st century has begun to see a different brand of leadership – strategic leadership.
multi-tasks, he “walks the talk” and, through all these, he creates and transforms all the time.
And since the aim of all strategy is to link aims, ways and means, the aims of strategic leadership
are to:
In the corporate context, today’s strategic leader is a far cry from the glass-walled CEO
that we’ve grown up seeing. He’s a hands-on ‘people’ person who learns before he leads. He is
connected with the grassroots and he doesn’t believe in detaching and distancing himself from
the people he works and lives with. He is an Information Age man who has effectively imbibed
and integrated the best leadership attributes of the Industrial Age. Speed, objectivity and
As Theodore Roosevelt said, “People ask the difference between a leader and a boss.
The leader works in the open, the boss in covert. The leader leads, the boss drives.”
A strategic leader has some basic characteristics: passion, decisiveness, conviction and
integrity. He has a high level of emotional tolerance and toughness. This gives him the added
strength to influence human minds by connecting at the emotional level and the skills to convert
conflicts into healthy relationships. A strategic leader is also called a transformational or creative
uses his unique qualities to percolate his dream in hundreds and thousands of other people. He
instils and ignites passion in them and ensures that everyone together reaches a shared goal.
To lead people, walk beside them. As for the best leaders, people do not notice their
existence. The next best, they honor and praise. The next, they fear. And the next, they hate.
When the best leader’s work is done, people say, “We did it ourselves!”
And that, now, brings us to the wheels on which strategic leadership runs – public
relations, and it’s more expanded and glamorous avatar – corporate communications. None of
the success stories that I’ve talked of, from Lee Kuan Yew to Jack Welch to our very own
management team, would have really happened without the foundation of sound, scientific and
rigorous communication. I had said in the first part of this lecture that strategic leadership and
communications are complementary. Let me explain. Strategic leadership happens in the mind. It
is a faculty, ability. In an organization having hundreds and thousands of people, this ability
needs to be seen, heard and touched by everyone in order to be effective. That’s where PR or
corporate communications comes in. It is the voice and vision of strategic leadership.
Public relations or corporate communications, today, is at the cutting edge of the rapidly
changing corporate scenario. With the shifting sands of takeovers, mergers and acquisitions, the
rise and fall of the IT and dotcom sectors and the hi-tech bowing down to the bio-tech, the scope
and relevance of public relations have significantly changed. Ed Bernays, the grandmaster of PR
stated that “PR is the attempt by information, persuasion and adjustment to engineer public
support for an activity, cause, movement or institution.” Since then, the “consent engineering”
aspect of public relations has gained considerable ground. According to none other than Sanat
Lahiri, the first President of the IPRA, “PR is essentially about negotiating changes with the
minimum of friction.”
A critical factor in the exercise of leadership is the adaptability of the person in charge.
Whenever any of the variables change, the necessarily "right" style must change. The leader
must then adjust his or her approach. The style that worked yesterday may not work tomorrow--
but the leader will adapt. It takes time for a new leader to identify the "right" style of leadership.
By the time that leader discovers the correct approach he or she may have damaged his or her
credibility. The leader may then have established a pattern of behavior that will stick with him or
Another component of good leadership is caring. Good leaders care about and take of
their people. They help them deal with stresses that arise both from the job and from external
sources. Leaders never let the pressure of their job interfere with taking care of their people.
Quality of leadership must be assessed by looking at where the irritants lie. If they focus
instead on internal issues at a higher level such as company or corporate headquarters, there is a
A good senior leader can do things to overcome poor leadership below them. The
converse is not true. Even the most inspired junior leaders cannot compensate for the "wrong"
Leadership is an organization’s lifeline, the critical bridge that spans all organizational
levels to cross over from the ideal world of vision to the real world of making it happen. Forming
the bridge, leaders throughout the organization define, communicate and clarify the vision. They
then provide clear direction and consistent support for the people attempting to realize the vision.
The mantle of leadership carries the great responsibility of building trust and meeting the
Being an effective, vital leader demands skills and knowledge in critical areas such as
encouraging initiative, and delegating and sharing responsibility and authority. The effectiveness
also depends on specific communication skills and relationship behaviors that will motivate
people to do their best, support them through difficult situations, build mutual trust and inspire
commitment to organizational objectives. They relinquish and delegate tasks others can do and
encourage people to take appropriate risks without penalty. These leaders make people feel
important, valued, and respected. They inspire full commitment by practicing the following key
principles:-
These key principles address the personal needs. When leaders use them effectively, they
support people through difficult situations, build trust and inspire commitment to actions and
ideas.
• Maintain or enhance selfesteem
Self-esteem is defined as having a good opinion of oneself. People who feel good about
discussions productive and enhance self-esteem in the process by focusing on facts, not people
and by specifically acknowledging others and their good ideas. They express confidence in
• Reduce defensiveness
• Listen and respond with empathy
Leaders, who talk the time to really listen to people, then convey understanding and
empathy have grasped the heart of open, two-way communication. Responding empathetically
and acknowledging people’s concerns and feelings as well as the situations builds trust and
promotes cooperation.
Leaders’ using these key principles helps to defuse negative emotions, such as anger,
• reduced defensiveness
• encourage cooperation
• Ask for help and encourage innovation
Involving people in day-to-day activities and decisions is the key to discovering effective
solutions to problems, gathering ideas, and getting the job done. Asking people for help in
solutions ranging from major cultural or technological changes to small, but important
improvements allows leaders to tap people as valuable resources, while inspiring commitment
Leaders who ask for input gain buy-in and make people feel valued. When people “own”
an idea, they give their best effort. And, when solutions are not feasible, it is still to maintain
other’s self esteem by explaining why and following up by seeking additional ideas.
• Enhance self-esteem
• Encourage brainstorming
• Share thoughts, feelings and rationale
Leaders who sincerely use this key principle demonstrate confidence and trust in people
by sharing issues and problems, rationale behind decisions, personal vision, information that
might not be a common knowledge. Having information that is not available to others put leaders
in a position that demands good judgement and sincerity. If people perceive insincerity or a
hidden agenda they will feel manipulated and the value of disclosing will be lost.
People who do not share their thoughts, feelings or rationale in matters that affect others
reduces resistance.
• build trust
• communicate openly
• express concerns
• Provide support without removing responsibility
People want and need leaders support effective leaders support people’s efforts without
taking over, particularly in difficult or risky situations. Support comes in many forms, coaching
people to overcome resistance, paving the way to build working partnerships, or encouraging
Coupling responsibility with support encourages people to take ownership of their work
and creates a sense of accomplishment and self-esteem. People with ownership are enthusiastic
about taking on new responsibilities and helping to determine how work is done.
It is a common belief that management and leadership are the same role. While it is
common that a manager also plays the part of the leader, these two roles are truly separate in
function and in the way they add to the success of an organization. By understanding the
difference between management and leadership you will become more effective in helping others
construction of a new road. To build that road there are workers, machinery and tools which are
all vital in the road's construction. Managers help ensure those workers, machinery and tools
work together in the most efficient way possible. A manager makes sure those workers are well-
trained, motivated, rested and that they know what they're supposed to do next. The manager
does the same thing with the tools and the machinery to make sure that they're working correctly
and that the workers are able to use them efficiently and safely. This is the role of management.
On the other hand, a leader makes sure that the road is going in the right direction before the
construction begins. That leader also monitors conditions in new situations to ensure that the
road under construction is still the correct one and is still going in the right direction.
How does this affect you as a leader? Are you spending your time managing people when
you should be making sure that the road ahead is the one that you want to be on? To expect to be
an effective leader you must present a clear vision and a trail you are willing to walk on first.
While there are times when it is appropriate for a leader to fill a management role, it is vital to
understand the difference between leadership and management so you can be effective no matter
which role you happen to be filling at a given time. If you are a leader overseeing managers, it is
important that you provide them with the correct perspective so they may be effective in their
If you are not in a formal leadership role, it is also important that you understand that
when a leadership opportunity arises there is a difference between being a leader and managing
the effort. Even if you end up filling both sets of shoes it's important to understand the difference
in roles in order to fill them effectively. If, on the other hand, you learn how to lead by showing
people that you are walking down the right road, you will become a natural leader and will be
able to help many others find success as your achieve your own.
Challenges of Leadership
Accelerating growth and globalization are forcing organizations to identify and nurture
leaders who can operate effectively across the organization and, in many cases, across borders.
Aging workforces in many countries increase the pressure, as a generation of senior leaders
prepares to retire.
For some organizations, the key challenge is immediate: aligning current leadership with
the business strategy. Other organizations struggle more with “bench strength” issues – finding
and developing the leaders of the future. Many organizations face both of these leadership
challenges, and almost all struggle with ensuring smooth leadership transitions.
Hafsat Abiola said that “Leaders must be prepared to meet all the challenges their
communities face: that which they can see and that which they cannot see.”
It explains major leadership challenges for the 21st century, grouped into two categories:
market forces and people issues. In a quickly changing world, talented human capital will be a
• Market Forces
Although political, social, and economic situations vary by region and in their
complexity, there are common challenges that future leaders must be prepared to address. Many
of these challenges are already on the horizon, threatening the quality of life and futures of
communities around the world. Significantly, they are growing in complexity and appear to
require new and innovative approaches for resolution. Helping people from diverse cultures and
interest groups to develop specific and relevant solutions, while at the same time urging people
to seek a common ground, will pose a significant challenge for future leaders.
In many parts of the world, political instability continues to be a major threat to social
progress, economic growth, and the safety and security of communities. Public cynicism about
the ability of political leaders, political parties, and institutions to address problems is on the rise.
To ensure social progress and stability, individuals and communities will have to learn how to
respect and capitalize on the world’s diversity of interests, cultures, perspectives, and people.
The most common social and economic challenge facing leaders is the growing economic
disparity between people. Disease, poverty, and unequal access to resources afflict too many
communities throughout the world. While globalization has brought prosperity to some
communities, many people continue to be left behind. High unemployment continues in some
countries despite global economic growth –– growth that has often occurred at the expense of
natural resource conservation. Balancing environmental protection with sound economic growth
• People Issue
conditions that are conducive to continuous learning. Given that the half-life of knowledge in
every discipline is shrinking, no one can afford to drop the quest for learning at the gates of
graduation. As important as formal learning are tacit knowledge and experience. This type of
knowledge is rarely available in codified form and it cannot be acquired through formal
education or training. Rather, it requires a continuous cycle of discovery, dissemination and the
individual or group or pocket is proactively transferred to other parts of the organization. This
calls for inter-disciplinary learning and the breaking down of barriers between departments,
First, large organizations need to learn much from the way entrepreneurs work. Although
the institutionalized systems, and formal checks and balances do serve an organization well, at
times they do stifle, slow things down, work to reject new ideas, or simply lose out on vital
opportunities. Most organizations reject ideas that threaten to destabilize the status quo.
Eccentrics, mavericks and out-of-the-box thinkers find themselves isolated. We have to charge
the environment in which we work with an entrepreneurial spirit, and infuse our organization
with the passion to excel, the passion to stretch, and the passion that translates into strong
emotional bonding with the organization, and its goals and objectives.
Second, leaders have to grapple with implementing mergers and acquisitions successfully
so that there are no seams dividing the organization. A coming together of two companies is not
about balance sheets coming together, or distribution channels coming together. It is, at the end
of the day, about people coming together, their hearts and minds coming together, their values
and cultures coalescing. The process is full of anxiety, uncertainty and silent suffering. Often, top
management is oblivious to these emotions. Unfortunately, many do not care or lose sleep over
it. The softer aspects of mergers are neglected. To successfully sail through the transition phase,
Third, today's leadership is mired in paradoxes and contradictions that one finds usually
in Marxist theses. How to constantly juggle through these contradictions is a tough call. Take, for
instance, while you seek to minimize risk to the organization, you encourage entrepreneurship.
You demand adherence to strict timelines for delivering results, which necessarily entail
gruelling 14-hour workdays. At the same time, you invest in programmes aimed at promoting
work-life balance. You stringently monitor quarter-on-quarter results and engage expensive
consultants to do long-range planning and cost optimization. You spout human resources as your
biggest asset, yet engage in right-sizing and lopping of jobs, resulting in skill losses. I am sure
many of you live through these and more contradictions every day. These ground realities put
enormous pressure, affecting as they do the emotional tenor of the workplace. Not surprisingly, it
creates a crisis of identity and confidence in the best of clear thinkers. There are other areas of
contradiction. Leaders have to perform a similar balancing act in their strategic arena between
customers, competition, company interest and company competencies. You cannot address issues
Fourth, there is the issue of the leadership gap. Leadership is needed at all levels, and
there just isn't enough of it to go around. So, the key leadership task is to identify and nurture
talent. Leaders must make developing talent a priority at all levels of the organization. Young and
emerging leaders at the workplace must be offered multiple role-models who can mentor them
and enable them to create their own distinctive form of leadership. Leadership in Indian
technical and managerial knowledge, to the neglect of soft skills and attitudes.
Fifth, leaders must have the ability to "mind your mind", which means quickly
recognizing when one is wrong and changing track accordingly. Also, far from being egocentric,
Above all, there is the challenge of articulating what an organization stands for, what its
purpose is. Values are what lend the organization its "stickiness", with which employees can
identify, emotionally and intellectually. People contribute when they relate to an organization,
and they relate when they understand the organization. People understand an organization
through its values, by experiencing the culture that the values create, and by using the systems
and processes that the values define. In large organizations, such shared understanding cannot be
created through the leadership of individuals alone; it requires leadership of principles, of beliefs,
Conclusion
Finally, the leaders of the 21st century must have a global perspective and be willing to
embrace diversity and cultural differences. Contextual demands on our leaders will require that
they use a wide-angle lens and look beyond immediate borders to solve problems. Effective
leaders will encourage multiple viewpoints and will be comfortable with sharing leadership.
They will know how to identify and nurture emerging leaders among them.
For much of this century, leadership was reserved for the “elite” few. Today, the potential
and religious communities, there are individuals with leadership potential and the inner desire to
lead and serve. Leaders in the future will reflect the world’s cultural diversity, with greater
Companies need new techniques to train their professionals for the challenges of the 21st
century. Organizational leaders have been struggling with the same challenges in various forms
for the last 10 or 20 years and have yet to find generalizable solutions. Barring radical changes in
human nature, the next few generations of managers will probably be found working through the
same issues that they and their predecessors have been struggling with for much of their careers -
only more so. The truly successful managers and leaders of the next century will be characterized
not by how they can access information, but by how they can access the most relevant
information.
References
• Leadership Quarterly.
• Leadership Strategies.
• Prasad, L. M.; “Principle and Practice of Management”, Sultan Chand & Sons, New
Delhi, 2001.