For many people, the phrase “business leadership” carries with it a certain stigma. Last year the public had no problem directing blame to Toyota and BP leadership following a series of large-scale recalls and a major disaster in the Gulf of Mexico, respectively. We may be facing a leadership crisis, and business savvy alone is not enough to meet the complex variety of 21st century challenges. What can we do about this? One place to start is a 2010 study that identified 42 core practices — some behavioral, some cognitive — distilled into six categories, or “leadership zones.”

Just as most organizations are asking their people to bring their full passion, initiative and imagination to work every day, many of these same organizations are not living up to the responsibilities on their end.

According to a national study last year, overall confidence in leadership remains “significantly below average,” with only 38 percent of Americans believing our leaders are doing a good job.

In fact, over the six-year history of the Center for Public Leadership (Harvard Kennedy School) survey, the dominant trends have been a majority view that America has a leadership crisis and a declining confidence in our leadership. Confidence in business leadership, while having improved, remains below average.

What can we do about this?

A useful approach would be to revisit the basics, examining the principles that turn a good manager into a great leader, and revamp them for future leadership success.

According to AchieveGlobal’s studies, there are six basic principles that are not simply managerial practices, but time-tested universal guidelines that have been relevant to leaders for decades:

1. Focus on the situation, issue, or behavior, not on the person.
2. Maintain the self-confidence and self-esteem of others.
3. Take initiative to make things better.
4. Maintain constructive relationships.
5. Lead by example.
6. Think beyond the moment.

Good business leaders still apply the basics, strategically guiding their organizations. That is, they focus almost entirely on the bottom line.

However, business savvy alone is not enough to meet the complex variety of 21st century challenges. According to the consulting firm, “a new brew of leadership is required to avoid recent stomach-turning results.”

In its 2010 report Developing the 21st Century Leader, the firm provides “a blueprint for fixing the broken model of leadership and moving organizations forward.”

The findings are based on analysis of peer-reviewed academic and industry journals as well as a global survey of nearly 1,000 organizations worldwide. They were used to develop “a comprehensive new model of leadership today and a related individual assessment instrument.” The “leadership zone” model is meant to help companies identify potential leaders and shore up the skills of existing leaders.

AchieveGlobal identified 42 core practices — some behavioral, some cognitive — distilled into six categories, or “leadership zones.” The six categories are defined as 1) reflection, 2) society, 3) diversity, 4) ingenuity, 5) people and 6) business.

Zone 1: Reflection — Leaders recognize and take steps to expand their knowledge and abilities by assessing their own motives, beliefs, attitudes and actions. They look within and ask, “How can I make sure my own blind spots and biases don’t cause me to make poor decisions?” and “How can I leverage my strengths to become a better leader?” In practice, reflection helps leaders make the most of their knowledge and avoid repeating their mistakes.

Zone 2: Society — Leaders promote their own success by acting with a larger goal in mind by applying principles like fairness, respect and “the greater good” to balance individual and group welfare improvement. Here leaders attend to economic, environmental and ethical matters that affect the society. While every leader seeks to achieve short-term goals, socially aware leaders know that some short-term goals can sabotage the long-term health of the organization, the society and the planet.

Zone 3: Diversity — Rather than merely accept the facts of a diverse workplace and global economy, leaders respect and make positive use of key differences including gender, age, ethnicity, nationality and points of view. Here, leaders prove their ability to work with a variety of people and appreciate cultural perspectives, including work styles. The great leaders of the 21st century will balance their own strong identity with their daily effort to understand people very different from themselves.

Zone 4: Ingenuity — No longer can companies rely on being the cheapest or even the fastest to outdo global competition. Leaders must rethink core assumptions to respond to new threats and opportunities, offering and executing practical ideas while helping others do the same by creating a climate in which innovation can thrive. Leaders help develop a shared picture of a positive future, empower workers and find ways to promote speed and flexibility.

Zone 5: People — Leadership in part is about getting work done through others, which requires the skill and passion to engage people in a team effort. Leaders motivate people through strong relationships based on mutual trust, inspiring loyalty and encouraging shared commitment to business goals. Leaders enthuse employees about what they do, make them feel connected to their work and enable them to relate to what they do and what they produce.

Zone 6: Business — Leaders develop strategies, make and execute plans and decisions, organize the work of others and guide efforts to sustain long-term success. Leaders must be able to adapt quickly to changing business conditions, manage operations costs, learn new ways to stay competitive, develop and implement effective business plans, analyze and use hard data, manage customer issues and provide clarity to the organization’s vision and values.

“Leaders who are truly dedicated to providing their workforce, stakeholders and communities the leadership and guidance they deserve and demand must realize that only by balancing all areas can one prepare for the unexpected as well as potential opportunities,” AchieveGlobal CEO Sharon Daniels said in an announcement of the findings.

As we make our way deeper into the 21st century, leadership roles have become less about textbook management formulas and short-term successes, and more about analyzing new challenges as they occur while laying the foundation for future successes.

The economic quandary of the past few years is further evidence that no one can predict the long-term trajectory of the global economy. Yet there is one thing we can be relatively sure of: Leadership, while always integral to an organization’s success, has become especially critical as we approach the uncertain future.

Earlier

Leading into Recovery and Beyond

5 Ideas for Leading through the Downturn

Resources

Image: ©iStockphoto.com/Amanda Rohde

Developing the 21st Century Leader
by Craig Perrin, Sharon Daniels, Kathleen Clancy Jefferson, Chris Blauth, Mark Marone, Colleen O’Sullivan, East Apthorp, Joyce Thompsen and Linda Moran
AchieveGlobal, 2010

Corporate Success Demands Focus on More than the Bottom Line
AchieveGlobal, Feb. 1, 2010

National Leadership Index: A National Study of Confidence in Leadership
by Seth Rosenthal, Todd Pittinsky, Laura Maruskin and R. Matthew Montoya
Center for Public Leadership (Harvard Kennedy School), October 2010