21st Century Leadership Traits -McKinsey & Company Research
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- Mar 6
- 6 min read
Updated: Mar 11
Discovering what should be keeping you up at night, not what is, drives the best leadership consultants and coaches. It's essential to asking the best questions to help a leader think at their highest level. The following is an executive summary of the most recent research issued by McKinsey & Company about the six key traits that will be critical success factors for leaders who are driving the future of industry and their organizations over the next 5 years.
One of the findings that caught our attention was: Proactive leadership development is crucial for organizations to withstand future disruptions. Our research at Cortex Leadership aligns with theirs in this area and others. We recently been experimenting with extreme customization in key areas of our deliverables and are witnessing many of our executives we coach and their teams that we train see faster and more impactful gains in efficiency, effectiveness, and innovative problem solving.
How do you stack up when it comes to these key leadership traits? Take our new Cortex 21st Century Leadership Traits assessment.
You can find the CoreCast conversation about this topic and the Cortex Leadership 21st Century Leadership Traits Assessment here.
Executive Summary
21st Century Leadership - McKinsey & Company Date: October 23, 2024 Source: Excerpts from "21st Century Leadership - McKinsey and Company_123024.pdf" Authors: Bob Sternfels, Daniel Pacthod, Kurt Strovink, and Wyman Howard Date of Publication: October 22, 2024.
The McKinsey & Company article addresses the increasing complexity of leading global organizations in the 21st century, marked by rapid technological advancements, geopolitical tensions, and evolving workforce expectations. The authors argue that the demands on leaders are significantly higher than in the past, with leaders now needing to navigate twice the number of critical issues simultaneously. The article identifies six key personal attributes essential for 21st-century leaders and proposes a "leadership factory" model for organizations to proactively develop and mentor future leaders to build resilience and thrive amidst constant disruption.
Leading a global organization in today's fragmented world is difficult—perhaps more difficult than ever.
Increased Complexity and Disruption
The current global landscape, characterized by events like the COVID-19 pandemic, geopolitical tensions, and the rise of technologies like generative AI, has created an environment of unprecedented uncertainty and disruption for organizations. Leaders face a significantly higher volume of critical issues demanding their attention compared to the past.
We estimate that ten years ago, CEOs and top teams typically focused on four or five critical issues at any one point in time; today, the number is double that.
This necessitates a new approach to leadership that can navigate this complexity and build organizational resilience.
There are distinct differences between the personal attributes, best practices, and approaches to leadership development required in today's organizations and those of yesteryear.
The Need for a Deep Bench of Leaders
A key challenge for organizations is the lack of a sufficient number of leaders who can excel in this demanding environment and build high-performing teams.
From our engagements and discussions with CEOs and leaders across the globe, we see that the biggest obstacle to creating resilient and high-performing teams is having a deep bench of leaders who can not only thrive but excel in this uncertain 21st-century business environment.
Proactive leadership development is crucial for organizations to withstand future disruptions.
The organizations that treat leadership development as a core capability and proactively address the needs of both existing and aspiring leaders can raise their overall resilience and substantially improve the odds that they will be able to withstand disruption—whatever it is, and whenever it appears next.
Essential Leadership Attributes: Energy and Servant Leadership
Positive energy, personal balance, and inspiration
Leaders need to manage their own well-being to sustain their capacity to lead and inspire a workforce seeking connection and authenticity. This trait recognizes that effective leadership starts with self-management and creating an environment where others feel energized and motivated.
Servant and selfless leader
High-performing leaders prioritize the success of their team and the organization's mission over personal gain. This is particularly important for a workforce that increasingly seeks meaning and purpose in their work.
The highest-performing leaders we've observed are focused on making the team and others successful. It's not about them; it's about the organization's mission, deep purpose, and positive impact.
Such a leadership approach becomes more important when considering the results of a recent McKinsey survey in which 70 percent of about 1,000 employees said their work largely defines their sense of meaning and purpose.
Essential Leadership Attributes: Learning and Resilience
Continuous learning and humble mindset
Leaders must be curious, willing to learn from mistakes, and recognize that they don't have all the answers. Humility and vulnerability are key strengths. The example of Microsoft's Satya Nadella promoting a "learn-it-all rather than a know-it-all attitude" highlights the importance of this trait.
The highest-performing leaders we've observed never consider themselves to be the highest expert or the smartest person in the room. Their superpowers are their humility and willingness to be vulnerable.
Grit and resilience
Leaders need to remain steadfast and decisive in the face of disruption, analyze situations calmly, and adapt without being overly reactive. Decisive leadership is linked to healthier organizations.
According to the latest Organizational Health Index research, those companies with leaders who act decisively—and who commit to the decisions made—are 4.2 times more likely than their peers to be healthy.
Essential Leadership Attributes: Energy and Servant Leadership
Positive energy, personal balance, and inspiration
Leaders need to manage their own well-being to sustain their capacity to lead and inspire a workforce seeking connection and authenticity. This trait recognizes that effective leadership starts with self-management and creating an environment where others feel energized and motivated.
Servant and selfless leader
High-performing leaders prioritize the success of their team and the organization's mission over personal gain. This is particularly important for a workforce that increasingly seeks meaning and purpose in their work.
The highest-performing leaders we've observed are focused on making the team and others successful. It's not about them; it's about the organization's mission, deep purpose, and positive impact.
Such a leadership approach becomes more important when considering the results of a recent McKinsey survey in which 70 percent of about 1,000 employees said their work largely defines their sense of meaning and purpose.
Essential Leadership Attributes: Learning and Resilience
Continuous Learning and Humble Mindset
Leaders must be curious, willing to learn from mistakes, and recognize that they don't have all the answers. Humility and vulnerability are key strengths. The example of Microsoft's Satya Nadella promoting a "learn-it-all rather than a know-it-all attitude" highlights the importance of this trait.
The highest-performing leaders we've observed never consider themselves to be the highest expert or the smartest person in the room. Their superpowers are their humility and willingness to be vulnerable.
Grit and Resilience
Leaders need to remain steadfast and decisive in the face of disruption, analyze situations calmly, and adapt without being overly reactive. Decisive leadership is linked to healthier organizations.
According to the latest Organizational Health Index research, those companies with leaders who act decisively—and who commit to the decisions made—are 4.2 times more likely than their peers to be healthy.
Essential Leadership Attributes: Levity and Stewardship
Levity
Incorporating humor can help teams bond, reduce stress, and foster creativity.
Indeed, research has shown that leaders with a sense of humor—even a so-so sense of humor—are 27 percent more motivating and inspiring than others. Employees are 15 percent more engaged when they work with such leaders versus with other leaders, and teams are twice as creative...
Stewardship
Effective leaders take a long-term perspective, focus on developing leadership capabilities across the organization, and aim to leave the organization in a stronger position than when they started.
The best-performing leaders take the long view; they see themselves as stewards of their organizations and teams 'for now.'
The "Leadership Factory" Model and Conclusion
The article introduces the concept of a "leadership factory" as a proactive approach to leadership development. This model emphasizes that organizations should treat leadership development as a core capability, with intentional efforts to shape, develop, and mentor the next generation of managers. By focusing on both current and aspiring leaders, organizations can build a more resilient and adaptable workforce capable of navigating future challenges.
The McKinsey & Company research emphasizes the critical need for a new paradigm of leadership in the 21st century, driven by unprecedented complexity and disruption. Cultivating leaders with the identified six key personal attributes and adopting a proactive "leadership factory" approach to development are presented as essential strategies for organizations to build resilience, foster high-performing teams, and navigate the uncertainties of the future. The research underscores that leadership development is no longer a peripheral activity but a core capability that can significantly impact an organization's ability to thrive.
Contact info@cortexleadership.com for information on accelerating your organization's growth.
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