Leadership Competencies in the ‘Knowledge – Driven – Context’

We, as individuals, as organizations, and as nations, have been witnessing a ‘paradigm shift’ in as far as the source of our ‘competitive advantage’ is concerned. If it was ‘labor’ in the agriculture-based economy, it was ‘capital’ in the industrial age. In today's world, the competitive advantage originates more from ‘knowledge’ rather than from the traditional sources of ‘labor’ and ‘capital’. It has become the leveraging factor in making growth more robust, be it at the micro level or macro level. The knowledge era is marked by the dramatic changes in society, economy and technology. Markets and workforces are increasingly diverse and global. Change is so rapid and complex that a leader cannot keep abreast of all the changes and developments taking place in the environment, let alone be responsible for the innovation needed to keep ahead of others. Structures are becoming flatter with decision making being highly decentralized and not the only responsibility of the top management. The emphasis is more on networks and geographically distanced global teams are a reality. As the business environment requires the managers to respond to unpredictable threats and opportunities, complete reliance on planning no longer works. In this complex and chaotic environment, the organizations need to engage in new, more spontaneous and more innovative ways of managing. To meet the challenge, the organizational leaders need to be more flexible - stimulating innovation, creativity and responsiveness and learn to manage continuous adaptation to change - without losing the strategic focus. The paper gives an overview of the challenges faced by the leaders in the cited context and the competencies required by the leaders to meet these challenges.