In the evolving landscape of leadership development, the focus on competencies—specific skills and knowledge required to perform tasks—has traditionally dominated the arena. However, organisations and HR Consultants are increasing receiving enquires, especially post Covid around how one should develop for “Mindsets” for leadership and beyond.
While competencies are essential, they often represent the “what” of learning and development, leaving the “how” and “why” unexplored. To truly thrive in today’s dynamic world where individuals and organizations must move beyond competencies and embrace mindsets.
In today’s rapidly evolving landscape, no single, all-encompassing paradigm for management and leadership remains (Leadership in the 21st Century, 2005). Modern leaders no longer have fixed formulas, patented approaches, or ready-made processes to rely on. The increasing complexity and accelerating demands of contemporary organizations have made leadership challenges more intricate than ever.
Discussions on leadership and management often frame them as opposing forces. What began as a conversation on effective management gradually expanded to include leadership qualities, only to become entangled in debates over their relative superiority. However, this perspective neglects a crucial third dimension: entrepreneurship, as articulated by Florian Popp and Louis Klein (June 2009).
Entrepreneurship is an essential pillar of successful and sustainable leadership. We argue that its integration alongside leadership and management is not only beneficial but necessary. The potential advantages for both individuals and organizations suggest that achieving a strategic balance between these three elements can redefine and enhance traditional leadership models. This equilibrium is increasingly shaping the way organizations operate effectively.”
Leadership is often defined by its ability to craft a compelling vision and provide a framework for sense-making, as highlighted by Blanchard (2007) and George (2003). Modern discussions on sense-making have been increasingly prominent, yet many corporations still derive their purpose from a strictly economic standpoint. While financial success remains crucial, it is no longer the sole determinant of an organization’s longevity. Profit and shareholder value alone are insufficient for meaningful sense-making in today’s economy.
This reality has been evident since the 2008 financial crisis, though it has only recently gained widespread recognition. In response, many organizations have incorporated aspects such as localized structures, corporate social responsibility, diversity, equity, and inclusion into their foundational values. Leadership provides a guiding orientation, shaping an organization’s values and vision—defining why it exists and what it aims to achieve. However, leadership advocates sometimes dismiss management as a subordinate, less impactful function.
Management serves as the structural framework for executing tasks and processes within an organization, ensuring operational efficiency. Proponents argue that competent management is the true driver of value creation (Malik, 200). Conversely, leadership is occasionally regarded as an abstract and impractical concept, fostering grand aspirations without tangible execution.
While management focuses on interorganizational processes, workflow optimization, and strategic implementation, its integration with leadership is essential to avoid rigid adherence to procedures at the cost of adaptability and vision.
Entrepreneurship, the often-overlooked third pillar of effective leadership, embodies the capacity to anticipate future demands and opportunities. It plays a crucial role in shaping corporate strategy, fostering innovation, and embracing calculated risks to achieve organizational success.
Entrepreneurship drives the exploration of new markets and growth potential. Yet, many organizations remain tethered to traditional routines, reluctant to embrace transformative opportunities. As a result, entrepreneurship is seldom found in well-established corporations. Instead, vibrant start-ups have emerged as prime examples of entrepreneurial success, attracting significant attention in recent years (Faltin, Ripsas& Zimmer, 1998).
Balancing leadership, management, and entrepreneurship is critical to enhancing not only individual leadership effectiveness but also the overall efficacy of an organization. A harmonious integration of these three elements fosters sustainable success, innovation, and adaptability in an ever-evolving business landscape.
