Leadership: modern leadership inspires people

By definition, leadership means empowering people to achieve common goals. In recent years, one aspect in particular has come into focus: good leadership starts with the leader and their leadership qualities – how they manage their own energy, remain focused on a clear goal and demonstrate inner stability. Self-leadership is becoming a vital skill, precisely because so many leaders – over 50%, according to one of our recent surveys – feel exhausted.

The demands placed on leadership have changed dramatically. We are in the midst of a fundamental transformation – driven partly by digitalization, increasing disruption and a labor shortage.

Today, managers are not only under increased pressure, but the demands placed on them often seem contradictory, vague or difficult to grasp. Many of them pass this pressure on to their teams. Meanwhile, 75% of companies are caught in an acceleration trap: feelings of being overwhelmed, lacking energy or using capacities to the limit are very common. And that has a lot to do with leadership.

Healthy, high-performing companies, on the other hand, are able to cope positively with transformations and increased pressure. They cultivate a leadership culture that combines commitment, success, a sense of belonging and well-being, thereby supporting sustained high performance.

One of the most important aspects of modern leadership is transformational leadership. Transformational leadership is emotionally driven and inspiring. It encourages people to embrace the company’s goals. It shows them the purpose of their tasks. As a result, it provides guidance and stability, even in uncertain times. The main goal is to transform employees’ perspectives so that they identify with the company’s overarching objectives, feel valued and surpass themselves.

We consider two qualities to be essential prerequisites for good leadership: energy and focus. As well as having a clear vision of where they want to go and what their priorities are, leaders principally require energy and emotional intelligence.

These leadership skills are the basis for a modern leadership style. We’ve already discussed the importance of positive emotions and enthusiasm, but a good leader also needs to be able to help employees cope with negative situations.

Hybrid work is here to stay – and that’s a good thing. It offers greater flexibility and makes it easier to achieve a good work-life balance.

But hybrid work must be carefully implemented. Innovation and a vibrant corporate culture mainly emerge from genuine collaboration on the ground – not merely from physical presence. At the same time, working from home can significantly boost productivity and efficiency.

In today’s hybrid workplace, leadership is a key factor for ensuring this balance between efficiency and innovation. What is more, even in the digital age, leadership must nurture emotional connections, address employees’ needs and give people greater autonomy – because traditional control mechanisms, an authoritarian leadership style and common forms of exerting influence are largely ineffective in a hybrid setting.

A leadership culture is fostered through clarity, role models and dialog. Leaders and managers must ask themselves: what kind of leadership philosophy do we want to embrace? There are three crucial perspectives: What has been significant for our success story so far, or rather, what makes up our leadership DNA? What do we need to do to achieve our shared strategy or vision? And thirdly, what do the latest research findings tell us?

It is also important for the management to develop this understanding of leadership through close consultation with leaders and employees within the organization. To ensure that guidelines are actually put into practice, a form of empowerment is needed that conveys both the philosophy and the corresponding tools. Regular constructive feedback is also necessary so that leadership can be systematically developed throughout the company.

I highly recommend it. Many managers believe they have to be able to do everything themselves – and that stifles innovation. Diversity is a strength, especially in dynamic environments. Being able to draw on a variety of perspectives makes companies more resilient and creative.

These opposing ideas can be reconciled by adopting an ambidextrous approach. Ambidextrous leadership involves adapting your approach depending on the situation: sometimes the emphasis is on efficiency, and sometimes it’s on innovation. What matters most is that leaders clearly communicate which mode they are currently working in – implementation or experimentation. Otherwise, this can result in misunderstandings. I like using Porsche Motorsport as an example: avoiding mistakes and maximizing efficiency are the top priorities on the racetrack, while in vehicle development, the focus is on creativity, learning processes and innovation. Both require different leadership styles.

A growth mindset is very useful so that feedback is viewed as something positive: the belief that feedback is not criticism, but an opportunity for growth. Another factor that contributes to a culture of feedback is what is known as psychological safety – a safe space for honest communication. This can take the form of regular, open discussion sessions when even managers can ask for feedback. What matters most is that feedback is encouraged, taken seriously and leads to tangible change.

That’s a big problem. And it comes about because leadership is often regarded as a burden – with a lot of responsibility, little room for creativity and high expectations. Young people don’t generally see their parents or other leaders they know as positive role models. Attitudes toward work have undergone fundamental changes. For many people today, their job isn’t automatically the center of their lives. They no longer find traditional career paths appealing. That’s why we should also rethink and redesign leadership.

Leadership must become more attractive: it must offer purpose, genuine participation and greater opportunities for growth. We need to adopt new approaches, such as shared leadership roles, leadership coaching or flexible areas of responsibility that talented young employees can gradually grow into. We need new role models across generations who inspire and encourage people to take on leadership roles.

The world of work is changing so rapidly that many organizations are unable to keep up – due to technological innovations, shifting values and social upheavals. Leadership must become more flexible and people-centered, while at the same time becoming clearer. Being a successful leader isn’t just about navigating change, but also means actively shaping it. It’s hard to say exactly where we’re headed; we’re at the very beginning of a major transformation. But one thing is clear: it will be profound.