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building, highly communicative – are rising” (p.25). Similarly, one of the intriguing and unexpected findings in the book Good to Great (Collins, 2001) was of the universally modest and self-effacing nature of CEOs in the good-to-great companies. This contrasts considerably with the often flamboyant and self-promoting style of many popular business leaders in recent years who, despite celebrity status, typically did not have an enduring positive impact on their companies.

Bass and Steidlmeier (1999) noted that transformational leadership is only authentic when it is grounded on the leader’s moral character, concern for others, and congruence of ethical values with action. A leader’s credibility and trustworthiness are critical, and increasing numbers make the case that character—as defined by qualities like one’s striving for fairness, respecting others, humility, and concern for the greater good—represents the most critical quality of leadership (e.g., Sankar, 2003). Assuming there is continuing if not increasing interest in the character of leaders, much work is needed in the years ahead to assure greater clarity of concept about these vital-yet-elusive concepts if they are to play a prominent role in leadership development practices in organizations.

Pressure to Demonstrate Return on Investment

The future trends noted reflect in part a response to the changing context of leadership.

Perhaps the strongest pressure facing leadership practitioners in the future may be to demonstrate ROI (Kincaid & Gordick, 2003). While leadership development is strategically important, it is usually expensive. Yet while leading-edge companies today such as PepsiCo, IBM, and Johnson and Johnson spend significant time and resources on leadership development, attempts to quantify its benefits precisely have remained elusive and have led some to speculate that investment in developing better leaders may be falling short of the desired impact. In today’s economy, leadership development expenses will likely have to meet certain standards of proof of impact or return on investment. Demonstrating and quantifying the impact of leadership development investments is likely to emerge as a priority for organizations committed to building leadership strength.

To maximize ROI for leadership development efforts, its payoffs organizations must effectively plan, implement, and evaluate their initiatives. They must create a “chain of impact” that connects leadership development to relevant organizational outcomes (Martineau & Hannum, 2003). Historically, most organizations have not closed the loop through systematic evaluation and thus make assumptions about its efficacy based on anecdotes, reactions, or hunches.

New Ways of Thinking about the Nature of Leadership and Leadership Development
Emerging new perspectives on the nature of leadership may profoundly affect our thinking

about leadership development. Increasingly, leadership and leadership development are seen as inherently collaborative, social, and relational processes (Day, 2001). Similarly, Vicere (2002) has noted the advent of the “networked economy” where “partnerships, strategic and tactical, customer and supplier, personal and organizational, are essential to competitive effectiveness.”

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