Constructive persuasion, talent assessment, leadership development, team building, and organizational design will become the critical capabilities for leaders. In short order, the old command model will become a rarity. One can already see this shift under way in the personal leadership styles of Jack Welch and his successor, Jeffrey Immelt, the current CEO of General Electric.

Of necessity, the capacity to lead change will become the most valued skill for leaders. They will need an acute and fine-tuned sense for when to cannibalize their strategies, their products, their channels, and their organizations, and when to ensure continuity and stability. They must become adept at finding and developing talented missionaries to spread the new gospels and new visions. They must also learn how to protect and nurture the champions of change on their teams.

One of the hallmarks of effective leadership in this century will be the capacity to learn and adapt quickly. Years of experience will no longer be enough—and, in some cases, may prove a hindrance. The shelf life of knowledge today is simply too short. Instead, a winning characteristic of the new generation of leaders will be its commitment to personal learning and the ability to generate a “buzz” about learning throughout their organizations. The photographer Walker Evans’ advice to novice photographers—“stare, pry, listen, eavesdrop”—will prove sound counsel for today’s business leaders.

Senior executives are not the only leaders now charged with reinventing themselves. Powerful forces are redefining the roles and activities of corporate Boards as well. Among these are the huge numbers of mergers and acquisitions that require due diligence, the new focus by institutional investors on the role of governance in under-performing companies, and the accelerating rate of turnover among CEOs. These forces are placing enormous pressures on Boards to take a more active role in the day-to-day leadership and succession planning of the companies. These pressures, far from going away, are likely to increase.

As Boards become more proactive, they must grapple with a conflict between the two main roles they are asked to play: Can a Board be a strategic partner with top management in formulating the strategy and building the capabilities of the organization and still exercise independent oversight of management? Some are experimenting with non-executive chairs and lead directors as a counterbalance to the CEO’s authority. In addition, important shifts have begun to occur, especially in the increasing responsibilities of Board committees. Much remains to be done: Boards will need to transform themselves for leadership, for talent management, for globalization, for e-commerce, for greater accountability. Indeed, a great deal of reinvention lies ahead for leaders at all levels. 
 
Go to Chapter 2 - Managing Human Capital