21st century leaders are finding it hard to cope with the increasingly complex and consistently fast paced nature of their businesses. Immersed in a world of volatile markets, leadership failures even among highly feted CEOs continue to rise as we enter the new millennium.

The pressure is now on to find answers to the question: ‘What qualities do we need in our 21st century leaders?'

Many significant companies in the USA have seen a rise in CEO churn in recent years - but this phenomenon is not confined to the USA alone. Analysts say that 60 percent of all major companies worldwide have replaced their CEO at least once since 1995.

Some researchers blame shareholder pressures, a lack of the right leadership or unwise CEO appointments. But maybe traditional leadership no longer operates effectively given the new business challenges where obsolete leadership models are less effective in dealing with current issues.

Leaders for 21st century businesses

Since the 1980s business structures have become less hierarchical - more flattened, more fluid. Today's businesses are driven by relationships that make the most of people's knowledge and enabled by networks with improved connectivity. These developments have meant businesses can respond better to their dynamic global environments. Further, the emergence of extended enterprises, consisting of several independent but networked businesses, is creating new ‘value webs' through collaboration and various forms of partnership.

Changing markets, flatter organisations and new partnering arrangements have given 21st century leaders many roles, multiple stakeholders and an increasingly fragmented job where they continually face trade-offs in time, energy and focus. Their challenges include:

• matching their leadership style to a fast-moving, complex, technology enabled business
• holding multiple perspectives without being overloaded
• working with others in virtual teams, often in other countries
• articulating a compelling future vision
• guiding disparate groups of people to deliver business goals
• cutting unnecessary overheads today while building for tomorrow.

This complex world demands new leadership beliefs and behaviours - not just from single CEO leaders, or even the whole top team - but from leaders distributed throughout the organisation, leaders who can motivate, empower, articulate and innovate.

New leadership qualities for new businesses

The requirements business is placing on its leaders are constantly changing - evidenced by an increasing number of books and articles on leadership since the 1960s.

Most leaders recognise today's challenges but do not know how to respond because they are unable to think differently about their role. Traditional leadership attitudes and behaviours have trapped them in an outdated meaning of leadership where their thoughts and actions are ineffective in dealing with 21st century complexity. A blended 21st century leadership style is emerging with a new set of leadership qualities:

• brings new perspectives and confronts threats head on
• seeks new solutions outside predictable areas
• open-minded and curious about their environment
• mobilises their company to take advantage of new market opportunities
• views business as a networks of communities and works across boundaries
• uses collaboration and partnerships to maximise sustainable growth.

Leading into the new millennium

Building 21st century leadership qualities means acknowledging that leadership still means showing people the way. But it also means clearing the path so others in the business can lead too. 21st century leaders know the importance of a context for action - and that leadership attitudes and behaviours determine the context in which others will act.

Traditional leaders believe their authority comes from a previous track record of delivering business results. Their hierarchical position gives them confidence to tell others what to do and how to act in pursuit of business goals. Their behavioural responses reflect these beliefs - but these beliefs can be recalibrated to help leaders loosen the constraints of outmoded thinking to act in new ways that are more effective in a discontinuous, complex environment.

But are 21st century leaders born or can they be made? Leaders have always been able to develop their skills through coaching, seminars and training course - and gaining 21st century leadership skills is no different.

With a more effective set of leadership qualities, 21st century leaders are less reliant on ‘how things should be' to approach business challenges and opportunities with an enquiring mind - one that makes room for new possibilities. By embracing complexity calmly and confidently they are better able to lead their businesses into the new millennium and deliver sustainable growth that increases business value.

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