New Leadership

"New Leadership" is much more than just a fresh coat of paint on outdated leadership models. The term is interpreted in various ways and often appears as a synonym for "Remote Leadership" or "Digital Leadership" – although it usually goes far beyond those definitions.

Our understanding of "New Leadership" embraces a holistic approach based on modern leadership principles and new leadership competencies. These differ significantly from the traditional leadership approaches of the 20th century. "New Leadership" emphasizes leadership at eye level, collegiality, participation, and open communication. At its core is the idea that employees are no longer seen as mere subordinates, but as co-creators who actively participate in decision-making processes and take initiative themselves. Leadership is no longer tied exclusively to hierarchical positions, but can be assumed by different team members depending on the project and phase (lateral leadership).

"New Leadership" enhances flexibility, agility, and technological development within organizations. It's no longer just about profit maximization and customer satisfaction, but also about a company’s purpose – its meaningful contribution to society and the environment. At the same time, employees ("people") move into focus: their satisfaction, health, and motivation are ultimately the foundation of productivity.

But what exactly distinguishes traditional leadership approaches from New Leadership?

The leadership understanding of the 20th century was strongly influenced by industrialization, the military, and the church. The principle of "Command & Control" prevailed: management gave orders, and the workforce carried them out – motivation was regulated through rewards and punishments. The result was hierarchically structured organizations and departments with silo mentalities, rigid hierarchies, and long decision-making processes. The underlying deficit-oriented view of human nature assumed that people are naturally lazy and incapable unless driven from the outside. Furthermore, leaders had to constantly make decisions, know everything better, maintain oversight and clarity – and keep pushing employees. It was certainly a demanding task.

Since the 1970s, new management approaches emerged that gradually placed more emphasis on employee development but also focused on efficiency management.

In the 21st century, a societal transformation is underway, triggered by factors such as globalization and the rapid digitalization and technologization that comes with it. Companies must adapt quickly, develop new business models, and act efficiently and effectively to stay afloat and avoid sinking.

New Leadership is based on the assumption that people are self-responsible creators who want to contribute meaningfully to a larger whole. From this perspective, diversity and innovation are essential keys to mastering complex challenges. Leaders can no longer know and decide everything – they rely on the expertise of their employees. Leadership is no longer tied to hierarchical positions but can, for example, be assumed by different team members in agile projects (lateral leadership).

This means that leaders not only delegate responsibility to their employees but also lose power, status, and influence.

The term "New Work" refers to new organizational and work models that come with the dissolution of traditional boundaries in the workplace. Time- and location-independent collaboration enabled by digital technologies—between home office, the workplace, and other work locations—poses challenges for leaders.

The old temporal and spatial structures are breaking down, as are traditional workflows and rigidly defined job positions, which have proven inefficient and wasteful. Our faculty views "New Leadership" as a new leadership paradigm that brings new responsibilities, roles, skills, and a contemporary mindset for leaders. Leading remote and hybrid teams, which work location-independently or switch between home office and the workplace, is a core competence of "New Leaders." They also need to master the right types of communication and the appropriate communication channels.

Organizations implementing transformation processes in line with "New Work" inevitably come into contact with "New Leadership." On the one hand, because new organizational forms distribute decision-making and leadership competencies to team members, and on the other hand, because new ways of working require new skills from leaders.

The following eight principles show what successful leadership in the BANI world is all about:

1. Adaptability to Uncertainty and Volatility

In the BANI world, traditional hierarchical structures are too sluggish to respond to rapid changes and unpredictable events. New Leaders must learn to accept these uncertainties and constantly changing conditions and act flexibly and agilely – implementing corresponding processes and ways of working.

2. Promoting a Positive Corporate Culture

Fears and uncertainties in the BANI world can negatively affect the work environment and lead to absenteeism and productivity losses. New Leaders must consciously counteract this by providing security and orientation and supporting employees to reach their full potential.

3. Building Resilience

The BANI world can be stressful and challenging, and resilience is crucial to cope with its many challenges. New Leadership promotes personal development and empowerment of employees – and New Leaders themselves work on their own resilience and seek support when needed.

4. Psychological Safety

In times of uncertainty and crisis, it is important to provide security within the organization and for employees. New Leaders create safe spaces for communicating concerns and fears, support employees, and foster emotional safety.

5. Encouraging Innovation and Creativity

The nonlinearity of the BANI world means that conventional “simple” solutions are no longer sufficient. New Leaders foster a culture of innovation and creativity, encouraging experimentation and new ideas.

6. Promoting Self-Organization and Personal Responsibility

New Leadership supports self-organization within teams and encourages employees to take responsibility for work areas and budgets and to make independent decisions.

7. Open Communication and Transparency

In an incomprehensible world, clear communication is essential. New Leadership relies on open communication and constant transparency – New Leaders tolerate diverse perspectives and opinions, moderate discussions, and encourage their teams to participate and exchange ideas.

8. Developing a Learning Organization

Only through continuous development and willingness to learn can companies keep up with ever-changing conditions and trends. New Leaders encourage their teams to keep learning and to further develop their professional and social skills – and they ensure a learning-friendly environment within the organization.

As a "New Leader," you play a central role: you enable smooth collaboration, empower your employees, and support them in taking responsibility for themselves and their work. You consciously shape the work context and processes to promote motivation, satisfaction, and health within the team. In doing so, you create meaning in the work, delegate responsibility, and encourage continuous development.

To fulfill this role, you need not only strong soft skills but also solid hard skills—such as in digitalization, data literacy, or agile leadership. You promote participation, self-organization, and strong teamwork. Your goal: to unlock the full potential of your team—for the best results in a motivating, efficient work environment.

New Leadership is a shared adventure in which you and your team actively shape the world of work. You provide orientation while enabling freedom for creative input. Your leadership quality today is less about "having to know everything" and more about delegating responsibility—and giving experts within the team room to thrive.

©WU Executive Academy

New Leadership has the potential to bring about positive changes on many levels - for organizations as well as individuals. But, as with any leadership approach, it’s important to consider both the bright and dark sides. Here, we present an overview of the main advantages and disadvantages of New Leadership.

There are various myths circulating on the internet and in discussions about New Leadership. The five most important myths are the following:

1. New Leadership Focuses Exclusively on the New and on Change

New Leadership is often associated with New Work, internal company transformation, and the technologization or digitization of business processes. While that is true, it does not mean that New Leadership disregards proven processes and business models. On the contrary, it is much more about maintaining what works and combining it with new elements—whether in operational management, organizational level, or team development.

2. New Leadership Means Less Leadership

When it comes to self-organization and delegating responsibility and decision-making "downwards," it’s often said: without leadership, chaos breaks out! However, leadership is more important than ever - namely to provide the framework and orientation, guide processes, maintain the overview, and help employees lead themselves.

3. New Leadership Is Limited to Technological Skills

This is too narrow a view. New Leadership is not just "Digital Leadership," but a holistic leadership concept that combines the needs of people with the supportive effects of technologies. Technology always serves the people and the company - not the other way around.

4. You Either Have New Leadership or You Don’t

Young leaders with a "modern mindset" or so-called natural leaders are often assumed to embody New Leadership well. This implies that you are either a born New Leader or you are not. What is often overlooked is that the principles of New Leadership - the focus on relationships, results, collaboration, and innovation - can be learned and trained. New Leadership is an attitude with learnable skills; however, it cannot simply be mandated. It requires a process of awareness and reflection along with engagement with the corresponding leadership principles and values.

5. New Leadership Only Fits Certain Industries

New Leadership is often associated with industries like tech. But New Leadership supports every industry and every company in becoming more agile, human-centered, and more efficient thanks to new technologies—whether a tech giant, an urban software startup, or a regional craft business.

You’re taking the crucial steps toward transforming into a modern organization. This means you have a great opportunity to advance your career with new leadership qualities and skills while improving your everyday leadership practice at the same time! We help you grow so you can help your company grow!

If you want to develop your leadership skills and get ready for the 21st century, check out our Executive MBA programs and our short programs with a leadership focus.