Leadership is not static. It evolves with the environment in which it operates, responding to shifts in economic systems, technological innovation, and social expectations. Andreas Emser, Director International Executive Education of the Frankfurt School of Finance & Management, spoke to Echelon about the changing nature of leadership in a world increasingly defined by disruption, complexity, and declining institutional trust.
Emser examines how leaders must adapt to new realities, develop broader skill sets, and rethink their role in organizations and society in a conversation that moves beyond conventional leadership models. He also outlines the types of leaders the world requires today: individuals capable of navigating uncertainty, fostering collective intelligence, and operating with resilience and ethical clarity.
“What differentiates effective leaders today is a combination of cognitive, emotional, and ethical competencies. At the core lies trust, both the ability to engender it and the commitment to uphold it,” Emser says.
What are the most significant shifts in leadership today?
In today’s world, leadership is undergoing fundamental changes that reflect the rapidly evolving context in which organizations operate. Although change has always been a constant, what distinguishes the present is the unprecedented speed and complexity of these transformations. We are navigating an environment shaped by globalization, technological disruption, demographic transitions, climate urgency, and heightened geopolitical uncertainty.
One of the primary shifts is the need for adaptability. Leaders must increasingly operate in fluid, ambiguous situations where past strategies offer limited guidance. This demands agility and the capacity to absorb pressure and easily navigate ambiguity.
Organizational models are also changing. Traditional hierarchies, once designed for control and efficiency, are giving way to flatter, more collaborative structures. This evolution is evident in the Nordic countries, where leadership is grounded in deliberation and shared responsibility. Instead of commanding from the top, leaders facilitate dialogue and decision-making within teams. Such approaches are gaining traction globally, especially as younger generations clearly prefer inclusivity and autonomy over rigid authority.
The most profound transformation, however, is the shift from a shareholder-first to a stakeholder-oriented mindset. Today’s leadership entails balancing the expectations of shareholders, employees, customers, regulators, and the broader society. Climate change, social equity, and ethical governance are no longer peripheral concerns but central to the leadership mandate.
What new skills and mindsets are essential for leaders navigating this environment?
There is a growing recognition that technical expertise alone is no longer sufficient. What differentiates effective leaders today is a combination of cognitive, emotional, and ethical competencies. At the core lies trust, both the ability to engender it and the commitment to uphold it.
We see a clear emphasis on systems thinking and the ability to understand interdependencies across functions, regions, and stakeholders. Leaders must also cultivate creative and analytical thinking to solve complex challenges. Resilience, too, is critical, not just personal resilience but the capacity to instil it across the organization.
The World Economic Forum’s Future of Jobs report lists competencies such as analytical thinking, active learning, and technological literacy among the top skills for 2030. We strongly align with this perspective. However, at the Frankfurt School, we include geopolitical acumen, ethical decision-making, and the capacity to create enabling environments for others.
One cannot overlook the importance of cultural intelligence. As organizations become more globally integrated, leaders must be attuned to different cultural contexts and adapt their leadership styles accordingly. This is particularly relevant for emerging markets, where hybrid leadership models are beginning to emerge, drawing on both traditional norms and global influences.
Can individual leaders still drive change, or is leadership now a collective enterprise?
The archetype of the charismatic, all-knowing leader who single-handedly drives transformation is no longer realistic. While individual leaders remain crucial, the emphasis has decisively shifted toward collective leadership. A single perspective or skill set cannot address today’s complexities.
That said, individual leaders play an essential role, primarily by creating the conditions for others to succeed. This includes setting a compelling vision, defining a clear direction, and fostering a culture of accountability and trust. But beyond that, leaders must build platforms for collaboration. They must ensure that systems, values, and people are aligned so that collective intelligence can thrive.
This shift also requires a recalibration of the ego. Leadership is no longer about personal heroism but about enabling others. It is about designing the scaffolding structures, processes, and cultures that allow teams to respond dynamically to change. In this sense, leadership becomes less about visibility and more about impact.
Does power still play a role in leadership? If so, what kind?
Power remains essential to leadership, but its sources and manifestations are evolving. In certain situations, particularly crises, decisive leadership and the capacity to exercise authority are indispensable. Clarity, speed, and confidence matter in such moments.
However, in most organizational contexts today, power derived from positional authority is insufficient. Employees, especially younger ones, are less responsive to hierarchical commands and more attuned to authenticity, transparency, and mutual respect. Leaders must, therefore, derive power from other sources: credibility, consistency, and a demonstrated commitment to shared values.
In other words, power must be earned. This requires leaders to engage, listen, and build coalitions. It also means sharing power, delegating decisions, and trusting others to act responsibly. This is not a sign of weakness but a mark of modern leadership.
What is the role of leadership in society? Should business leaders take responsibility beyond their organizations?
Businesses do not operate in isolation. They are part of larger social, economic, and environmental systems. As such, leadership today must be cognizant of the broader impact of business decisions.
We see a clear trend toward purpose-driven leadership, where organizations are expected to contribute positively to society. This can manifest in many ways, such as investing in local talent, minimizing environmental harm, or promoting inclusive employment practices. A company that trains and employs local youth, for example, is contributing to long-term societal resilience while also building a loyal workforce.
Leaders who recognize this expanded responsibility are doing good, in the Aristotelian sense of promoting human well-being and flourishing and thus building more sustainable and resilient businesses. The license to operate, especially in developing markets, increasingly depends on a company’s perceived societal impact.
Are leaders born or made? Can someone with a quiet personality become an effective leader?
Inherent traits certainly shape leadership, but much of it can be learned and refined. Traits such as introversion or extroversion influence leadership style but do not determine leadership effectiveness.
We work with individuals from diverse backgrounds and personality types at the Frankfurt School. We observe that individuals can significantly enhance their leadership capability through structured reflection, feedback, and targeted development.
Self-awareness is critical. Once individuals understand their strengths and limitations, they can build strategies to overcome them. For example, someone uncomfortable with public speaking can improve through practice and coaching. What matters is not perfection but progress and intentionality.
In short, leaders are both born and made. And with the right environment and support, many more people can grow into impactful leadership roles than traditionally assumed.
Could you describe some of the programmes the Frankfurt School is introducing in Sri Lanka?
We are introducing several programmes tailored to Sri Lanka’s context and regional needs. Our flagship leadership programme, “Refine Your Leadership,” is a three-day immersive course from 2-4 June 2025 designed to help participants clarify their leadership roles and equip them with the tools to lead effectively in uncertain environments.
Day one focuses on foundational concepts, how leadership differs from management, how it is evolving, and the new expectations. We also introduce the idea of leadership as a profession in its own right.
On the second day, we delve into interpersonal dynamics: relationship building, communication, and navigating stakeholder expectations. The third day is more applied, focusing on implementing leadership principles within one’s organizational context.
Alongside this, we are offering two technical programmes: one on asset and liability management and another on credit management. Both were developed by senior faculty and customized for the financial sector in Sri Lanka.
All our offerings emphasize practical application and contextual relevance. We do not believe in one-size-fits-all leadership models; we help participants adapt core principles to their unique environments.
How does the Frankfurt School’s approach differ from other institutions offering leadership training?
Many institutions focus either on the strategic elements of leadership or on developing personal charisma and presence. These are important but incomplete.
At the Frankfurt School, we take a more integrated approach. We emphasize the systemic dimension of leadership: how to create environments that support collaboration, innovation, and resilience. We teach leaders to think about culture, values, and organizational design as performance levers, not just background factors.
Our programmes also bridge theory and practice. Participants don’t just learn concepts; they explore how they apply them to real-world challenges. We build in assessments, peer feedback, and scenario planning to ensure that learning is deep and actionable.
We also recognize that leadership is not static. As the world evolves, so too must leaders. We continuously adapt our curriculum to incorporate emerging issues like AI ethics, geopolitical shifts, and sustainability transitions.
What kind of leadership does the world most need today?
Today’s world requires leaders who are grounded in principle yet flexible in execution, navigate complexity without losing sight of core values, understand that they must earn influence and respect, and exercise authority with care.
We need leaders who can see the forest and the trees, shape strategic direction while empowering others to act, and are not threatened by dissent but welcome it as a source of insight. Crucially, we need leaders who are capable of self-renewal and who are constantly learning and evolving.
At the Frankfurt School, we aim not to produce leaders who fit a single mould. Instead, we seek to develop individuals who can adapt, collaborate, and lead responsibly across sectors, cultures, and contexts. Ultimately, leadership is not about being in charge. It’s about taking responsibility and enabling others to rise.