HR Management & Compliance

The 4 Essential Characteristics of 21st-Century Leadership

We are a decade and a half past the turn of the century, but as expert consultant Roselinde Torres points out, old habits sometimes die hard—is your company’s leadership stuck in the 20th century?

Many companies may be facing a gap between the perspective their current leaders have, and the perspective they will need for the future, as faster communications, shifting demographics, globalization, and countless other changes make the business landscape uncertain and ambiguous.

“There are some aspects of leadership that are timeless, like vision, intelligence, good judgment, courage, ambition, and integrity,” says Torres, who is senior partner of The Boston Consulting Group (BCG) and leadership expert in its People & Organization practice. “However, the hierarchical, inward-focused leadership style that defined the 20th century is unraveling. The leadership profiles, programs and processes that businesses used in the 20th century do not fit 21st-century leadership needs.”


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21st-Century Leadership Requirements

Torres says there are four key characteristics that differentiate leaders who thrive in today’s fast-changing business environment:

  1. The capacity to navigate. This skill allows leaders to scan the constantly shifting landscape for signals, patterns, and trends that may impact their company’s ability to grow.
  2. The capacity to empathize. Leaders need the ability to reach people who are different from them. “Empathetic leaders can connect with others through a softer influence than simple, top-down hierarchy,” says Torres. “Instead of asserting themselves through the power of their positions, the 21st Century leaders exert influence based on values."

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  1. The capacity to self-correct. Self-correcting has to do with understanding that a practice or behavior that worked well in the past may not be as effective today—and can actually be damaging. “Organizations now need executives and leaders who question the status quo and revisit their own personal and long-held assumptions about leadership, business and success,” adds Torres.
  2. The capacity to set up win-win propositions for stakeholders. Leaders must embrace the increased transparency and competition wrought by rapid information flows. “We are seeing a broader array of stakeholders, with nongovernmental organizations, labor unions, community organizations, bloggers, and many others joining the traditional network of customers, suppliers and employees,” says Torres. “As a result, the most effective leaders strive to create winning propositions for the entire spectrum of stakeholders.”

“Think of these four characteristics as the four points of a compass. They act as a directional guide in a more volatile, uncertain and globally interconnected world,” says Torres.

In tomorrow’s Advisor, Torres provides training tips for creating leaders for the 21st century, plus we introduce Jobvite’s timely (and free!) webcast, The Candidate Experience: 10 Tips on How to Leave ’Em Hungry for More of What You’re Offering!

1 thought on “The 4 Essential Characteristics of 21st-Century Leadership”

  1. The article says 21st century leaders exert influence based on values rather than asserting themselves through the power of their position. This is not a modern phenomenon. True leaders have always led this way. And (the ultimately) ineffective ones have always tried the “big stick” approach. “Management theory” is just catching up 😉

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