What should global leaders know about the leadership pipeline
Over the next 10 years there will be more people retiring than entering the workforce in the western world. In India and China, more than half the workforce is below the age of 30. It is inevitiable that our workforce will continue to become more and more global so, how do we lead through that without forcing people to give up their uniqueness
Clarification added July 3, 2007:
By way of introduction, I am Senior Vice President at Satyam Computer Services, Satyam School of Leadership. Having spent the past 18 months researching global leadership (www.leadershipwithoutborders.com), I authored a book called "Leadership Without Borders" published by John Wiley and Sons. These questions are for the purpose of furthering my research. Thanks. Ed
Answers (31)
Shekar N
V.P and Managing Director at TBA
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I believe the leadership comes from taking ownership, responsibility and being accountable. It is part personality and part cultural. I believe the majority of the workforce from Asia is used to hierarchy and seniority based and great workforce. The workforce in the USA can move to the role of managing this large workforce available by being program managers, project managers, leaders, domain experts etc while leaving most of the brain work and grunt work to the teams from Asia. This is inevitable and the sooner the western world adopts the better they can leverage this phenomenon. Good question by the way.
Kevin C
Call Center Quality Specialist
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Training...
Yes, a lot of people with experience will be leaving. Companies need to invest in the education and provide meaningful management experience for the younger generations while there are still somebody to show them how.
Bahram G
Telecommunications Management Consultant, Site Acquisition Manager,Telecom Project Manager, NDI Sales Manager
Dear Ed
leadership with out borders, it need something more than a management technic, it's need attention, relation have to be like father and child ( to show them about the future vision, help them to walk and tell them how to walk) after that become a father and 30 years old sun or daughter, we have to listen to them, we have to be their safe area, after that become a brother to brother relation, we walk together, we win together. once somebody ask me about remoute mangement, at first i was shoked, then i understand i have to feel peoples capacity and feed them to live in professional life.
in my opinion no need to force them to give up their uniqueness, we need to guide them meke commitment to themselves,
******************************************************************************
BR
Bahram Ghandchi
Rohit T
Rohit Talwar - Futurist Speaker
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Ed
For me the leadership challenge in the next decade is to really open up the minds of those we lead.
Help them understand the demographic, enivronmental, economic, science and technology, social and political forces, trends, ideas and developments and uncertainties that could shape our world, understand the different possible scenariops, undestand the power shifts happening and most critically understand the the impacts, implicationds, risks and opportunities these changes may create for us as individuals.
we need our people to develop time and skills to think imaginateively and counter intuitively
We need to develop people's problem solving skills and toelrance of uncertainty
We need to develop organisation capable of handling the turth rather than burying difficult messsages and putting inconvenient truths in the too dififcult pile
We need to make ourselves open to new ideas and learning from outside
We need to encourage thikning that says simple can be good and avoid over-engineering
These are some of trhe challenges real leaders need to take on
Diversity in our workforce is an inevitable future, which is here and now already. Ten years ago when 'diversity' is said in United States companies, it means more women and different ethnicities, but in general, we all speak English, and somewhat we are dealing with similar cultures: American. Today, diversity in the workforce means all of what made up ten years ago and people who speak different languages, different cultures (and they are not American assimilated cultures), different religions and its importance (or not) in the global workforce.
Education and training are always important; but education and training of .. what? I'm sure it is not business and technical knowlege and skills that a global leader will need; rather a global leader will need a genuine understanding of different cultures, from languagues to religions to traditions. I believe a sincere understand of others will allow for tolerant and graceful behaviors; grace seems a universal trait of a charismatic person. furthermore, regardless of what one might believe, I claim that charisma is still high on the required characters to be an effective leader. It is extremely difficult to define what makes a person charismatic, since it does not seem to have a widely accepted criteria, among cultures, of what charisma is. But, 'grace' seems to always surface as an accepted character trait for a leader in any cultures.
Cultural understanding, tolerance, and appreciation are quite difficult and mastered. Go to places, live with the people, get to know their cultures, know their heros and heroines, know their enemies, know their prides, know the values that they admire; do all this without any judgement. Train our future leaders in business of America at young age to understand the differences in cultures, really learn and speak foreign languages.
There is no problem in the leadership pipeline, and no reason to (accelerate) outsourcing or other initiatives of the sort.
Companies and agencies aggressively shape their mid-senior and senior ranks to assure that they have five or ten internal candidates for EVERY top leadership post -- and that's to say nothing of external candidates. If demographics temporarily compress the pool to closer to the 5:1 ratio from the 10:1 ratio, the impact upon the senior leadership choice will be trivial.
With regard to non-leadership roles, the principal challenge of the Western world won't be to replace retirees, but to forestall retirements. Pensioning off workers in their 50s (as happens in Europe and in the public sector in the U.S.) or in their early 60s (as typically happens in the U.S. private sector) will become very hard to afford given reduced birthrates and enhanced lifespans. Failing that, I suppose that western countries will try to fix their age imbalances by recourse to the Indian and Chinese workforces, but it's not easy to see how they can tap that to fund state pensions.
Terrence S
Organization Effectiveness Consultant - Transitionist - Facilitator - Journey Coach - Job Angel
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One thing global leaders can do is read the Leadership Pipeline book by Ram Charan.
Another is to read Friedman's book The World is Flat.
Links:
Phil J
MBL University Lecturer | Author | Leadership Coach | Authentic Leadership Speaker | CLO | @PhilJohnson_MBL twitter
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What global leaders should know...
The search for external power has created the fear that sets individuals and corporations against each other. It is the same struggle that creates conflict and wars. It is the same struggle that set Cain against Abel. All of our social, economic and political institutions reflect our understanding of power as external. We are in a time of deep change.
By developing our authentic leadership we connect with our internal power as individuals and businesses leading to greater alignment and synergistic results. It is our habits, fears and perceptions that have created the “walls” that blind us. We have evolved as far as intellect will take us. We are moving from the view and pursuit of power and leadership as external to the pursuit of authentic internal power and leadership.
In today’s world, many people live with a sense that something is missing. You feel that you have lost part of yourself in the daily madness of your busy life. There is nothing missing. The rest of your life can be the best of your life. It’s your choice – it always has been.
- Phil Johnson, MBL Coach
MBLCoach@MasterofBusinessLeadership.com
Clarification added July 26, 2007:
The Hay Group Leadership Survey
The fact that the Baby Boomers have begun to retire and will soon do so in record numbers has alerted the business world to the growing urgency to find or develop the next generation of leaders. In 2005 and 2006, The Hay Group conducted surveys of 564 companies worldwide.
In U.S. businesses, 50-75% of senior management are eligible for retirement by 2010, including 50% of CEOs.
The Corporate Leadership Council reports that 97% of organizations report significant leadership gaps (between what is needed and what is available); 40% say that the gaps are acute.
The best leadership exists in the companies that are developing their own talent and promote from within (including CXOs).
The top companies surveyed do not leave the matter of finding and developing leaders to chance or to the last minute. They hold leadership as a fundamental, important aspect of their corporate culture and success strategy.
Clearly, these companies recognize that, to have great leadership, incentives and great opportunities must be built into the organizational culture and structure at all levels. Their practices also show recognition of the fact that "it takes around 10 years to develop the skills needed for a senior leadership role. Organizations that identify and invest in their own supply of leaders can look forward to more loyal leaders who are a better fit with their organization and who are more likely to deliver results." (Hay Group White Paper, p. 7)
Key Practices
Have leaders at all levels that focus on creating a work climate that motivates employees to perform at their best.
Ensure that the company and its senior management make leadership development a top priority.
Provide training and coaching to help intact leadership teams as well as individual leaders work together effectively.
External leadership development programs for mid-level managers.
The Bottom Line
What were the effects of this investment of time, money, and effort? The top companies five year annualized returns were significantly greater than those of the rest of the S&P 500. Leaders who create energizing climates create companies that outperform their competition by as much as two to one. Growing your own leaders is not only critical for team leadership succession, it also appears to be very good for business.
- Phil Johnson, MBL Coach
MBLCoach@MasterofBusinessLeadership.com
Sandy P
at Naval Postgraduate School
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First, leaders should know that diversity in the workforce has increased and will continue to do so, and as a result, the next generations of leaders in their company will not necessarily lead with the same style they have developed. There is more than one way to lead effectively, and leadership development and promotion decisions need to be conducted with a recognition of how people with different leadership styles can work together synergistically.
Second, dealing with the challenges of young managers supervising older workers, especially in hierarchical cultures, will require some explicit discussion with both the managers and the workers. Reworking promotion systems previously based on seniority can be done, if sensitivity is shown toward the wisdom of the elders, and the new expectations for promotion are clearly articulated.
Third, dealing with the shortage of young workforce entrants in the US and other Western countries requires a flexible approach. Retaining older workers (whether via flexible hours, phased retirement, or designating more responsibility to older workers for mentoring new workforce entrants) is one key piece of the strategy. Welcoming younger workers into the company is another key. Old and young must learn to treat each other with respect, which seems common sense but is not always common practice. Far too many corporate cultures implicitly endorse subcultural wars between young and old, because of the misplaced assumption that those disputes and differences in behavior are inevitable. Communication that fosters mutual understanding can do a great deal to erase age boundaries.
Finally, a truly global company will begin to encourage managers to see international experiences earlier in life, so that multinational operations can be lead by managers with skills in multi-cultural business environments. Explicit coaching on differences in etiquette and business processes is especially useful for managers taking on new multi-national responsibilities.
Great question, Ed! Thanks for making me think.
With the surge of globalization, managing global talent pipeline is the key to producing future successful leaders in any company. The grooming of leaders throughout an organization is absolutely critical for international competitiveness, core competency, corporate distinctiveness and filling the leadership pipeline. Companies need talented people with the global mindset, competencies and commitment to execute strategy both today and in an increasingly unknown future.
Global leaders need to inculcate the following for effective succession management -
- An international and informed view of key contributors (with the ability to take on greater responsibility in future), several levels down in the organization.
- Incorporate development and risk prevention tools like talent-sharing, identification of cross-function or offshore moves, international assignments etc.
- Articulate the Corporate vision and strategy from a multi-country, multi environment and multi-function perspective, so that they connect and engage all people.
- Navigate the complexities of the transnational business environment.
- Establish strategy as a series of options along a continuum.
- Formulate appropriate requirements for the Six Leadership Levels, to facilitate succession planning, development, and selection processes.
The Six Leadership Levels include the following transitions:
1. Managing Self to Managing Others
2. Managing Others to Managing Managers
3. Managing Managers to Functional Manager
4. Functional Manager to Business Manager
5. Business Manager to Group Manager
6. Group Manager to Enterprise Manager
Global companies with strong, respected cultures and the best talent from around the world develop a strong edge over others.
via F
Structuring Complexity Into Opportunity
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At personal level, I dare one show me how s/he's preparing leadership within a 10-year time horizon.
At corporate level we have two situations:
a) The already big corporations have institutionalized the leadership pipeline, so no surprises there.
b) [Smaller] Companies that find out in some future they need leadership will deal with this problem as they face it. They can/will hire whatever they need from the leadership pools associated with the big companies.
At state level, we also can structure your question round two models:
a) Decentralized (e.g. the US model, Silicon Valley, etc.)
b) Centralized (e.g. Chinese, the US Army).
In the end, most organizations have the leadership they deserve/prepare. And revolutions/crises offer some (leadership-)hope, at times.
The people in leadership positions today must :
realize this is real and expected/it is not ten years from now-this is starting now
know diversity is not just a buzzword
respect the individual for performance of work in the workplace--and that may be anywhere in the world
be prepared for successionary leadership
focus on becoming better teams
build better and solidify existing colleraborations/partnerships that will last
realize that client/customer needs are changing too
stay alert to change
change is not to be feared/change is opportunity that waits
uniqueness can still be within a person/it is the branding of the organization that may change
as we grow flatter-Freidman's Book- we must correlate our human capital strength to the organizational vision and goals as much as possible-this means
we must learn to enjoy working
I will be one of the many retiring/but have many viable options to still be able to work
Human resource management will be a greater focus as this shifting occurs
Anshuman T
Change Management and Business Excellence Professional
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Ed, you bring up a very important point about the inevitability of global sourcing for leadership (and even managerial) talent.
From what I know about leadership pipeline - it refers to a set of potential leaders who need to be developed to take leadership positions in future (not very distant future).
I have believed and coached my colleagues to understand that
It takes all kinds to make this world.
Just because we have a hammer in hand, everything is not a nail
To solve a small problem don’t create a bigger one
Setbacks are inevitable but misery is choice
Don’t give the key to your happiness to anyone else.
Global leaders will need to know how to:
1. Develop other leaders. I have noticed that the most successful leaders often have a happy problem of selecting from a vast pool of leadership talent. This cannot be a coincidence. They have been working at it.
2. Identify the right people for the right job. In a multi-cultural scenario one will need to learn to close our eyes to the familiar. Good leaders will need to develop a balance of objective criteria and gut feel about who will do well and who won’t.
3. Set goals and measure performance. No arguments here. No goals lead to no performance. And no performance leads to corporate decadence.
4. Balance between sensitivity for emotions and being decisive when dealing with people. The starkest differences across cultures are primarily to do with how we treat each other or work with each other. While sensitivity will be important, one will need to be very decisive when dealing with people.
5. Find uniqueness in one’s work, business, or industry. There is no better motivator than working for a unique cause (given that the money is decent!). A leader will need to define and redefine work and business.
6. Get things done.
7. Close the door on negative energy at work
8. Connect with people at all levels and of all backgrounds.
They will also need to remember that what brought them here may not take them forward.
I know you are an author too, but I can’t resist leading you to Ram Charan’s works. And maybe Noel Tichy. Excellent. And yes, I am planning to read yours too!
Hope this helps.
Anshuman Tiwari
agstiwari@gmail.com
Anshuman T also suggests this expert on this topic:
Mankind is an equilibrium system. It's easy. Think like that: now we have a non equilibrated mankind. Even the strongest barreer (cultural, economical, physical) can not contain the force that bring mankind to equilibrium.
So just, follow that forces and you will see business work.
If you are afraid of uniqueness, preserve uniqueness in your family: teach in your family good values giving example, this way, if your values are good, your family and your uniqueness will spread.
If your values are bad, your uniqueness will disappear.
Harsh V
Non Profit Professional/ Leadership Author - The Avatar Way of Leadership
As globalization progresses there is a paradoxical occurrence of assimilation and identity assertion. Individuals in the east are resorting to adoption of western mores and at the same time are asserting traditional identities more powerfully. On the other hand there is openness to eastern influences in the west. The problem is that the 'east' is often either a romanticized or disliked 'other'. Also there is an inability to understand that the east is far more diverse comprising of radically different nationalities with widely divergent sub-nationalities as well.
The paradox is evident in business too. On the one hand there is a need to integrate practices and approaches across geographical regions. On the other hand, it is necessary to manage people according to their own socio-cultural nuances. After all, the leadership approach that works in Europe will certainly not work in Japan.
The crucial issue that is involved, in my opinion, is differentiating between values and practices on the one hand and between technical and relational practices on the other. An organization is based on a set of formal and informal values which find reflection in an assortment of organizational practices. Values can be shared globally but the practices based on these values will be determined by cultural nuances. Secondly, it is easy as well as advisable to replicate technical systems. However the people based systems must take local input into account.
As per my view, leadership qualities in a person means ready to take challenges, resposible, accountable and should have an unqiueness in problem solving probably a better model of handling situations than we get trained in schools/colleges makes people (team) to understand that "the leader is more knowledgble and will get benifit if we follow him".
"Leader leads, People follow"
Links:
Shava N
Oddfellow Studio ftw!
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In the US, I think that the "thought leadership" around globalization has to recognize that we can't maintain any kind of real leadership if all the entry level professional jobs go overseas. To become a "master" in anything that requires real solid experience and craft -- and running a company qualifies! -- you must take your stints as an apprentice and journeyman.
Folks thinking we can maintain leadership in technology because our best schools are the best, and our tradition of innovation will maintain us. This won't work if we cut ourselves off at the knees by reducing opportunities for our young and upcoming entrepreneurs, managers, scientists and engineers.
I see the situation you predict as being expected and that businesses must plan for it.
Cultures may vary but people are people and the more diverse, the more we need some common moral standards. By moral standards I see management becoming more moral and common with an ethical approach as being core and that this ethical approach will become more common place.
The days of the 'Drucker-Droid' and 'Harvard Tough Leader' with their 'I am right, you are wrong' approach are on the wane.
The days of the ethical leader who leads from the front with ethics are on the ascendant. I believe that a successful manager will soon be measured by the loyalty their team shows them which will be reflected in higher commitment and lower sickness absence (measurable outcomes of an ethical management approach).
Q: How do we lead, without forcing people to give up their uniqueness?
A: We play to their strengths, we play by the rules and we play our part as managers and do the right things.
Dear Ed.
Global Leadership is more or less individuals who had qualified to become Global Leaders. For example Argentina had Mardonha and after his exit there is none in the team. Similarly the Indian cricket is built around the leaders who excel individually, but a miserable failure as a team.
Thus the answer to your wonderful query is Delegation and Empowerment of people in their job function. As they start excelling in their Prescribed KRAs, without the fear of interference from their immediate bosses, they go up, so also their responsibilities in the form of NEW KRAs to fit the new job role, and a leader is made in the pipeline. This pipeline does not stop.
Hence what we need is that the present Managers are trained on the importance of Teamwork, how to delegate work and encourage/mentor and guide their wards in achieving their goals. In other words, I also call empowerment as TRUST. That is, the manager has a trust that his staff can do the job, and the employee wants to honour that trust by doing the job.
A pipeline does exist and there is not much of a cause to worry. Many companies have identified the importance of OB, in their companies and the staff are being trained. In fact, during the last ten years of my employment, I have been taking more or less missionary zeal in Training my staff in Leadership development and importance of Delegation/ Empowerment when staff are working as a Team.
To conclude, Educating and Training our present day managers to trust, believe and love their ward. It is very important to build a good person to person relationship, and the employees must enjoy the work they do. The role of the immediate Manager is the most vital in the smooth uninterrupted flow of leaders.
C Gopalakrishnan
Kuldip R
Founder/Director of Strategic Visioning Partners - board leadership, strategic leadership, visioning and transformation
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Ed,
Good question and some great answers already, I would just add -
Yes, the world has an upcoming leadership challenge. However, this is also a fantastic opportunity for the young and emergent leaders from around the world to take hold of the challenge and create a better, fairer and just World. As new leaders emerge from diverse backgrounds, the 'old ways' of national self-interest and parochialism will fade away.
Where are these future leaders? Most are not in the traditional pipelines of organisations and will not be affected by the 'planned' leadership recruitment, succession, talent and development efforts. Most are not male, white, Ivey league / Oxbridge educated, etc. etc. Most are off the radar and considered invisible for whatever reason. One thing is for sure, they are out there and all around us!
Around the world, the strategic responsibilities of current leaders and leaderships of organisations are to go find the future leaders wherever they are, create suitable and sustainable environments where people can contribute, and allow good leadership to emerge by letting people be their unique authentic selves and contribute to global society - whether business, public service, etc.
Regards,
Kuldip
Courtney B
Sales, Marketing Executive with Hybrid Expertise – IT/ software, Social Media -New Media, IT infrastructure, IT Co
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In my opinion, global leaders need to make sure that they take the brightest and best and train them about other cultures early in their careers. The senior leaders should take it upon themselves to see that they get new hires educated on the cultures and customs of other nations in those nations not locally and right away. Since there are so many layers associated with a culture, young people tend to assimilate quickly and can garner a lot regarding new products, customers, needs, etc. If one can understand the customer, relate to the customer, know what the customer in that culture wants early in one's career, they may become a well rounded person who can integrate many different perspectives into developing strategy for growth.
I don't see people will giving up their uniqueness, I only see them adding to it. They will only grow and become more understanding of a broader group of nations and their people. There are many people in our existing workforce that can be helpful to our current global leaders and our future global leaders.
GR R
Chief Facilitator @ Husys Consulting, India's & worlds #1 HR Function Management Outsourcing Co. & Author of "1st JOB "
Dear Ed
In my opinion the next generation would take lesser time to embark into the leadership role than ever before. The focus on the New Entrants/and first time Managers currently would help to fill the gap over the next dacade. Example the eduction of Management right from the ELTP training like in Satyam wouldhelp or some of the best people would leave the companies after 2 years of experience and join the Management schools to be the future leaders. In my opinion if these associates are nurtured well to take up the futuristic roles with a focused assessment approach in grooming would help. I feel Global knowledge/Global thinking is already there in every step of the people.
Thanks,
Warm Regards,
Reddy GR
www.husys.net
Links:
Dear Ed,
I am most probably younger than you and for sure les experienced in this topic but I have been leaving as a “Multi Cultural” part of the society since more that 22 years.
The way to lead single individuals is always the way they have been leaded in their families. As a small cell the family and the ethnic hierarchy behind it can give you in my opinion the most reasonable information how to lead them. You don’t want them to give up their uniqueness, you need to enhance your own cultural diversity.
Ed, as you undoubtably already know growing leadership talent is a primary function of leadership. This is true for domestic or for global leaders.
The principle thing that a leader, any leader, should know is that a process is in place which is linked to the corporations other business processes and strategies that will facilitate the development of future leadership talent.
I think you may be saying that leadership skills come with age or better yet, experience. While they can be further developed and groomed, true leaders cannot be measured by years of age or experience. Perhaps you are referring to "managers" in your question?
Not sure of the connection between retiring execs and people giving up their uniqueness.
I am already saddened by the global face of commercialism. GAP, Nike, McDonalds are ubiquitous and the implications are chilling for culture and diversity.
I believe the web is one of the few ways that we can allow people to express their individualism and maintain unique communities of interest.
As for the retiring execs, It may be that companies will have to use interim executives more and more until the current below 30 generation is willing and able to take the lead.
Uniqueness comes from unbiased approach. Empowering people in their respective area of specialisation creates a sense of responsibility in them, which leads people to help their team, organisation, society, or the country to progress in the right direction.
The local government can create an environment in which there are more opportunities for people, so that these people make optimum utilisation of their skills and talent. We have seen on umpteen occasions, people tend to become a kind of burden to the government when there are fewer opportunities existing for the people to function well. Of course, government can only create an environment but it is people in the environment who have to come forward and become a workforce which is worth the force and this is the kind of workforce which by valuable ways and means will lead their country on the right path.
Dave S
Trusted Advisor
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Global leaders should know that I'm available!!
Seriously, this is just another reason why global leaders need to change their current pipeline? Fortunately there is a plethora of leadership training and best practices that teach how to include uniqueness. This is already happening with many global organizations and the marketplace is gearing up to meet unique needs.
I'm more concerned over whether current and future global leaders will weigh the needs of global inhabitants higher than the needs of their shareholders.
Ray M
Energy expert, educator, award winning sculptor
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I think there are two categories of answers for this question.
First category is idealist, the second, capitalistic, or reality based.
The idealistic approach, which I support, is to look globally at developing a solid business and financial web, woven between countries with natural resources, countries with human resources, countries with growing markets and countries with intellectual capital.
I could see a global leadership model which acknowleges what you and many have indentified to be a seismic shift across the globe as China and India expand resource consumption, market share, and an educated populace and the US and Western Europe need to refocus on strengths of innovation, creativity and mentoring.
The capitalistic view (unfortuneatly - reality) is to see where the biggest market growth is happening and integrate the leadership in that region with the existing leadership in the US and Western Europe. Make the realtionship so interwoven financially that there can be almost no cause for conflict as it would affects one's self interest too greatly.
Thomas D
Technical Consultant - Data Warehouse, Giant Eagle, Inc.
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J. Rost defined leadership as "Leadership is an influence relationship among leaders and followers who intend real changes that reflect their mutual purposes."
You ask what should global leaders know - they had better know they MUST be INVOLVED and they MUST INVOLVE - else no relationship and leadership dies with the generation.
Uniqueness is a vitality needed for true leadership ... it is the purpose that is mutual ... not the characteristic.