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Previous decades were characterized by relative stability and predictable economic growth. But in the new climate of volatility, unpredictability, complexity, and ambiguity, leaders must accept imperfection and uncertainty. Rather than respond to new situations according to scripts, expectations, and external standards, leaders should exercise self-awareness, creativity, and improvisation. Leadership is defined not by creating perfect plans, but by responding to unscheduled events and learning from them. As this article suggests, leaders must prepare themselves by accurately perceiving their unique mix of talents and flaws. Only then can they effectively leverage their ability to lead and move past conformity and the projection of superficial strength.

Despite leaders’ best intentions, the execution of strategy is often fraught with obstacles. This is frequently due to hidden, unobvious commitments lying beyond leaders’ awareness that counteract their espoused commitments. There are four key areas that contribute to leaders’ ability to perform: 1. Are they smart enough to manage complexity? 2. Do they possess the knowledge and skills required? 3. Do they care enough about their work? 4. Are they mature enough to manage relationships? <br><br> This article distinguishes between technical challenges (complex and critically important work with known solutions) and adaptive challenges (such as creating a corporate culture more oriented to innovation). Adaptive challenges can only be addressed through changes in employees’ priorities, beliefs, and habits. Overcoming these challenges depends greatly on how much a leader cares about his or her organization. This article suggests that leaders focus too much on running a business and meeting technical challenges, and not enough on changing a business and addressing adaptive challenges. In order to meet adaptive challenges, leaders should know their main priorities, understand their hidden commitments and faulty assumptions, and apply this learning to their teams.