In the rapidly changing business world, leaders’ ability to adapt and act effectively in diverse circumstances is becoming a key competency. Research conducted over the past decades clearly shows that so-called versatile leadership is gaining importance, especially in times of uncertainty and rapid change.
Definition and Concept of Versatile Leadership
Versatile leadership is defined as the ability to read and respond to changes using a broad repertoire of complementary skills, behaviors, and perspectives. It involves adapting leadership style to different people and situations, encompassing a wide range of possible responses and the wisdom to apply them appropriately to diverse and evolving conditions.
This concept, developed by Bob Kaplan and Robert Kaiser, is based on the premise that effective leaders can balance opposing yet complementary behaviors. Versatile leadership derives from the philosophical concept of yin and yang, which assumes the harmony of opposites as the essence of life. According to this theory, a leader should be both assertive and engaging, a visionary thinker who strategizes effectively while ensuring execution.
Dimensions of Versatile Leadership
Kaplan and Kaiser’s model identifies two pairs of complementary but opposing leadership behaviors:
Assertive vs. Engaging
The first dimension concerns interpersonal style and how leaders influence others. Assertive leadership is characterized by decisiveness, clarity, and strong communication of expectations. The leader focuses on delegating tasks, holding employees accountable, and setting high performance standards. On the other hand, engaging leadership involves creating a supportive work environment, empowering employees, active listening, involvement, and encouragement.
Strategic vs. Operational
The second dimension relates to the leader’s organizational focus. Strategic leadership is about positioning the organization for the future, thinking ahead, setting long-term goals, and driving innovation. Conversely, operational leadership emphasizes short-term performance, efficiency, and structured execution.
The Importance of Versatile Leadership in Times of Crisis
Research conducted during the COVID-19 pandemic showed that versatile leadership became even more valuable in times of uncertainty and rapid change. Findings indicated that while versatile leadership was already strongly correlated with employee engagement, team effectiveness, business unit productivity, and overall organizational performance before the pandemic, these relationships became even stronger during the crisis.
In the early months of the pandemic, versatile leaders helped their employees and teams regroup, stay focused, and continue operations, while leaders lacking versatility were overwhelmed by the sudden chaos, leading to team struggles.
Long-term studies highlight the increasing role of versatility in defining leadership effectiveness. In the 1990s, versatility accounted for about one-third of what was considered effective leadership. After the global financial crisis in 2008, this figure rose to around half. By the early stages of the COVID-19 pandemic, versatility constituted nearly two-thirds of leadership effectiveness.
The Rarity of Versatile Leadership
Despite its growing importance, versatile leaders remain rare. Research conducted since 2013, involving over 24,000 senior managers from various industries worldwide, found that fewer than 10% demonstrated the ability to balance both assertive and engaging leadership, as well as strategic and operational leadership.
Most leaders tend to favor one set of behaviors in each pair, leading to over-reliance on their strengths while neglecting complementary behaviors. Their strengths become weaknesses, creating blind spots that limit their versatility. The most common leadership style is a combination of assertive and operational leadership, while the rarest is engaging and strategic leadership.
Versatility as a Meta-Competency
Researchers have concluded that versatility is not just another leadership competency but rather a meta-competency. It is a higher-order capability that emerges when leaders develop a broad range of specific skills and behaviors, learn to balance opposing but complementary approaches, and cultivate the wisdom to know when and how to use each behavior effectively.
Versatility facilitates continuous skill acquisition in a positive feedback loop. As leaders expand their perspectives and skillsets, it becomes easier to continue broadening them. In contrast, leaders who build their careers solely around their natural talents and strengths operate within a narrower range, limiting their ability to expand their leadership effectiveness.
Examples of Versatile Leaders
Several well-known leaders exemplify versatility:
- Indra Nooyi, former CEO of PepsiCo, was known for her adaptive leadership style, which enabled her to navigate challenges and lead PepsiCo through significant growth and transformation. She encouraged her team to think creatively, take risks, and fostered a culture of openness and transparency.
- Satya Nadella, CEO of Microsoft, is an example of a culturally aware leader who brings a global perspective to leadership. He has focused on promoting diversity and inclusion at Microsoft, recognizing the importance of cultural awareness and sensitivity in a global organization.
How to Develop Versatile Leadership
There are multiple pathways to versatility for different types of leaders, but three principles apply universally:
- Understand your tendencies – Identify which behaviors come naturally and which do not. Self-awareness can be gained through competent personality assessments and feedback from colleagues.
- Learn to do what does not come naturally – Avoid over-relying on your strengths, as they can turn into weaknesses when overused. The best way to develop versatility is through diverse, challenging work experiences that push you beyond your comfort zone.
- Reframe your self-identity – Leaders lacking versatility tend to define themselves in polarized terms, while those who develop versatility see themselves in a more nuanced, multifaceted, and integrated way.
Additionally, research suggests the following developmental strategies: continuous learning, openness to change, balancing opposing needs, developing empathy, refining communication skills, regularly seeking feedback from trusted colleagues and mentors, and practicing decision-making that incorporates multiple perspectives.
Cultural Aspects of Versatile Leadership
Versatile leaders exhibit cultural competence and effectively collaborate with diverse teams. They understand cultural nuances, respect different beliefs and values, and foster an inclusive environment that values diversity.
In today’s global business landscape, the ability to navigate different cultural contexts is becoming increasingly important. Versatile leaders not only adjust their style to various situations but also to the different cultural environments in which they operate.
Implications for Leadership Practice
Versatile leadership is becoming an increasingly critical factor in determining which organizations thrive, which merely survive, and which fall behind. As the world grows more complex, uncertain, and volatile, versatility is an even more crucial characteristic of effective leadership.
For organizations, this means investing in the development of versatile leaders who can guide them through uncertain and dynamic conditions. For leaders, it presents the challenge of stepping beyond their natural preferences and expanding their range of leadership behaviors.
No one knows what new challenges the world will throw at leaders. They don’t know either. However, what we do know is that those who possess a broad and well-balanced repertoire of complementary skills, competencies, and behaviors—along with the wisdom to know when to use each—will likely be the most effective in leading their people, teams, and organizations through turbulence.
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