Summary

This article explores transformational leadership practices during a unique period in Romania’s history, marked by its transition to a vibrant free market economy. Using a qualitative phenomenological approach, the study gathered insights from seventeen experienced leaders in large multinational corporations and entrepreneurial ventures. It reveals that leaders who leave behind a meaningful legacy embrace a holistic leadership framework grounded in four pillars: understanding yourself, leading yourself, understanding others, and leading others. By embracing self-awareness and personal growth, taking decisive action with integrity and empathy, and inspiring and developing others, leaders achieved lasting impact and organizational excellence.

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Introduction[1]

In “Republica,” Plato once noted that people, by nature, “will find no cessation from evil.” His observation is incredibly relevant today as our world faces major challenges like geo-political tensions (actual or hybrid), economic instabilities, demographic shifts, societal and political fractures, and widespread dissatisfaction and disengagement among various stakeholders. These forces, layered upon the aftermath of the worst pandemic in over a century, created a landscape where leaders have little time to absorb new concepts, leading to underperformance, stress, and burnout. A pressing question is how leaders can sustain their effectiveness and well-being in an environment defined by endless survival mode.

In response, academics and practitioners seek fresh perspectives on how leaders can demonstrate superior performance, or “leadership alpha.” Traditional leadership theories, such as transformational, servant, or contextual leadership, are reinterpreted and given new connotations. Emerging concepts like inclusive leadership, adaptive leadership, and neuro-leadership promise novel approaches but have seen mixed success in practical implementation.

To illustrate adaptive leadership responses, let’s turn to a specific case: Romania. Much like other countries, Romania is currently at a crucial crossroads requiring reinvention and profound change. Yet, its remarkable transformation over the past 35 years makes it a relevant case study. The fall of communism and the transition to a free-market economy and democracy triggered a seismic shift. This shift propelled the country from a stagnant state to a robust, free-market economy, pushing individuals and society out of their comfort zones.

Leaders had to adapt and learn quickly, as previous experiences could not adequately prepare them for a rapidly changing landscape. Nevertheless, many survived and thrived, transforming themselves and their communities. Drawing on their experiences, this article explores how leaders adapted and transformed themselves and their organizations and the lessons current and aspiring leaders can use in the current environment.

Participants and sample

This article is grounded in a qualitative phenomenological study exploring the real-life leadership experiences of seventeen individuals selected based on their expertise, industries, and backgrounds[2]. The participants hold leadership positions in large multinational companies or are entrepreneurs and creators of renowned brands in Romania. The unique historical and economic context accelerated their development as leaders, allowing them to assume leadership and managerial positions early.

The four pillars of leadership

The research revealed a practical framework built on four pillars, as illustrated in Figure 1, each being an integral ingredient of the leadership manifested by the participants. The four pillars continually reinforced each other, generating a cycle of reinvention and growth that enabled leaders to leave a meaningful legacy. The participants also graciously acknowledged how the environment and serendipity[3] played roles in their leadership, agreeing that success is not solely the result of leadership[4].

Figure 1 The four pillars of leadership.

The first pillar of the aspirational model centers on the leader. Leaders must first understand themselves: ancient wisdom at its core (“know thyself”). After gaining a sense of who they were, the participants “led themselves” by taking charge and developing their leadership skills. As they refined their self-leadership, their understanding of themselves also evolved.

The following two pillars shifted the focus from the leader to the intricate dynamics between leaders and followers (the “others”). Leaders had to deeply understand what drove their followers (third pillar, “Understanding others”) before they advanced effectively to the final pillar (“Leading others).” The last component is a commonly accepted definition of leadership. However, as the research shows, leadership is far more intricate and requires leaders not only to lead others but also to understand themselves, lead themselves, and understand others.

Pillar 1 Understanding yourself

In Pillar 1, “Understanding yourself,” the participants shared their journeys toward a profound understanding of their identity through self-reflection, self-discovery, and personal growth. Influenced by philosophies like stoicism, several personal evolutions revealed a shift from a simplistic, one-dimensional worldview to appreciating complexities and nuances. Ultimately, more experience brought a better understanding of self. As a leader in the education industry, Corina confessed, “I had no answers for a long time because I never took the time to question myself!”

Overcoming early career insecurities and identity struggles, nine participants developed more compassionate, inclusive leadership approaches. Five participants became aware of their biases as they grew in their roles. They emphasized the importance of a personal space to manage stress and prevent impulsive decisions. Additionally, three participants explored their charisma’s potential pitfalls and benefits, highlighting the importance of self-control.

Radu, a seasoned CEO and banker, questioned his beliefs and faced self-doubt. He highlighted the importance of maintaining a balance between ambitious goals and mindful self-regulation to avoid burnout and maintain a sustainable pace of growth. Critical thinking was important to distinguish between what he saw in the mirror and his ideal self-image and discern genuine feedback from flattery or manipulation.

Nine participants stressed that understanding oneself is not static but evolves through continuous learning and adaptation. Andreea, the CEO of an FMCG company, noted that she got a better understanding of herself through uncertainties by embracing feedback and addressing her weaknesses. An experienced insurance executive, Ioana approached self-reflection with curiosity and self-empathy and avoided being obsessed with herself. Ultimately, the insights from Pillar 1, “Understanding yourself,” suggest that successful leaders demonstrate emotional intelligence and authentic, balanced self-expression.

“Understanding yourself” is, therefore, an evolving process shaped by internal and external signals, maturity, and serendipity. Each participant’s journey toward self-discovery started naturally and became more deliberate over time. This solid foundation paved the way for further exploration and growth, as outlined in Pillar 2.

Five Practical Takeaways for Leaders

1. Include self-reflection in daily routines: Spend 30 minutes a day to understand your feelings better, assess your decisions, and plan your responses.
2. Identify blind spots: Get honest feedback from trusted people on your decisions and behaviors.
3. Conduct a personal SWOT analysis: Identify strengths to build on, areas for growth, opportunities to seize, and potential threats to address with composure.
4. Manage your emotions: Keep your composure by anticipating and preparing for situations that might affect you emotionally, and when they happen, use breathing techniques to help manage your reactions.
5. Evaluate your leadership style: Consider using tools such as the Multifactor Leadership Questionnaire (MLQ)[5] to determine if past experiences reflect a desired mix of styles, such as transformational, transactional, servant, or authoritative, that fit your leadership context.

Pillar 2: Leading yourself

While Pillar 1, “Understanding yourself,” focused on self-reflection and analysis, Pillar 2, “Leading yourself,” revolved around taking action. Although a linear approach may suggest that “understanding” comes before “leading,” leadership is not a linear journey. The two pillars centered on the individual leader (“yourself”) involve multiple complex sub-processes that are often overlapped and blended.

“Leading yourself” entailed several behaviors. All participants mentioned continuous learning, resilience, integrity, self-efficacy, and managing self-doubt. Other significant components of personal leadership included assuming responsibility for personal growth (nine participants) and making decisions (five participants).

Integrity was the leadership attribute the participants most resonated with. They viewed integrity as an all-or-nothing attribute, either wholly present or completely absent, with no shades of grey in between. A leader provides an ethical backbone to the organization (Natalia, CEO of a telecom company) and is the guardian of the organization’s values (Stefan, CEO of a services organization).

The definition of integrity encompassed several elements. Ioana defined integrity as “Walking the walk and talking the talk,” suggesting that a leader’s values should be reflected in everyday actions. Radu concurred and further indicated that it eventually becomes clear whether someone in a position of power is trustworthy or an imposter. He compared integrity with happiness, quoting Mahatma Gandhi: “Happiness (A/N Integrity) is when what you think, say, and do are in harmony.”

According to Alexandra, CEO of an energy company, a lack of integrity in organizations could originate from people not being aware of their actions and a fear culture discouraging accountability. She also indicated that many organizations prioritize achieving results, but what defines a leader is how they achieve them. While acknowledging that society is moving in the right direction, from the “almost” leaders cutting corners and getting around to find holes in the net, Radu suggested leaders should create an environment to help themselves and employees avoid and resist temptation.

All participants highlighted that having strong organizational skills to manage teams, individuals, projects, and processes was crucial to their success as leaders. They had shown their capabilities as individual contributors or team managers, consistently delivering results and meeting or exceeding expectations. They were then offered leadership roles (or as a result of it, as Andreea noted). Ioana asserted that leaders must take responsibility for delivering results; otherwise, they will not hold their jobs for long.

While articulating their answers, the participants sometimes felt unsure about decisions made, even if they took place long ago. For instance, Radu questioned both good decisions, “Why didn’t we do it earlier?” and the wrong decisions, “Maybe I should have thought a little bit more about it.” However, rather than becoming overwhelmed, they used the reflection process to strategize the best ways to implement their vision. Previous research has validated that leaders often contemplate and deliberate on their decisions as part of their self-reflection [6].

Communication is essential to provide stability to often anxious followers. Silvia, the CEO of a technology company, disclosed that she went beyond the usual communication and instead “over-communicated.” In response to the concern that this could lead to communication fatigue, she maintained that people are only likely to switch off if they receive dull, generic messages that lack appeal. “Nobody gets tired listening to a good story,” she argued.

Finally, the participants emphasized the importance of continuous learning to remain relevant and grow. They suggested that there is always room for growth (“No leader is ever perfect,” noted Andreea). In terms of their leadership development, the participants engaged in activities such as coaching, executive education, reading, listening to podcasts or audiobooks, and seeking new experiences both inside and outside the organization (e.g., boards, peer groups, or professional associations).

To conclude, Stefan asserted that ideal leaders have well-rounded personalities made of complex behaviors and displayed as part of their leadership narrative. While this may seem overwhelming, the finding is consistent with McKinsey’s recent research on CEO excellence[7]. As leaders get better at understanding and leading themselves, they can confidently assume their responsibility toward others (Pillars 3 and 4).

Five Practical Takeaways for Leaders

1. Create and share your personal development plan. Develop a dynamic document outlining growth areas and specific actions with deadlines. Increase accountability by sharing it with a trusted adviser.
2. Keep learning: Set aside time regularly to read, listen to podcasts or audiobooks, attend relevant courses, and seek experiences or relationships that challenge and enrich you.
3. Build your resilience: Identify situations that might harm your mental or physical health, and regularly engage in activities like hobbies, exercise, or mindfulness.
4. Consistently display integrity. Stay alert to situations or people that might pressure you to compromise your moral values.
5. Focus on the ball: Remember that consistently achieving positive results makes or breaks a leader.

Pillar 3: Understanding others

The third pillar of the model shifts attention to the intricate dynamics between leaders and followers. To begin, the participants invested in understanding their followers’ capabilities and behaviors (a component of social intelligence). “Understanding others” was rooted in the participants’ intuition and conscious effort to listen to others’ perspectives. Participants reported that understanding others contributed to the social fabric not only in their professional lives, improving workplace communication and collaboration, but also on a personal level, such as in friendships and family relationships.

Alexandra was attentive to verbal and non-verbal cues to understand better and align her communication with the followers’ aspirations. She avoided jargon and cleared up confusion, especially with instructions from the multinational headquarters. She also moderated frustration and turned skepticism into acceptance by helping her teams take on responsibilities and trust in their abilities.

Vlad, an entrepreneur, confessed that early in his career, he thought his views were always right compared to others. In time, he recognized the importance of considering others’ suggestions and ideas, even when it challenged his ego. This mindset shift allowed him to see multiple effective ways to achieve objectives, often finding that unconventional routes offered better results.

Thirteen participants shared that understanding others involved showing empathy and often compassion. For instance, Florian, CEO of a healthcare company, prioritized a positive work environment during the recent COVID-19 pandemic, emphasizing the importance of trust, fair compensation, a healthy work atmosphere, and respect for all employees. Dan, co-founder of a successful entrepreneurial venture, offered compassionate support during crises, second chances, and continuous feedback. Through meaningful conversations, he cultivated innovative solutions in tough times, such as the aid given to Ukrainians after the war began.

Ten participants recounted how they created a safe psychological space for their followers. Radu consistently reminded the team that all perspectives were welcome and made sure he provided ongoing feedback beyond just the annual reviews. Dan built a team environment where everyone felt valued and had plenty of room to express themselves. He assigned different decision-making roles during meetings to break down barriers, encourage respectful questioning, and promote active participation.

Eight participants discussed how they demonstrated humility and respect for others, acknowledging that leadership was fundamentally grounded in human ethical values. Ioana made herself easily approachable and protected the confidentiality of personal sensitive information shared by her followers. She provided psychological stability through small yet meaningful gestures, such as acknowledging birthdays, celebrating success, and showing empathy, especially concerning mental health and in challenging situations.

Similarly, Silvia prioritized fair treatment and confidentiality to ensure people felt comfortable and valued. She rejected having “followers,” believing in human qualities over titles. Instead of adhering to traditional leadership roles, she viewed her team members as leaders in their own right. Her measure of leadership success was in how many leaders she developed rather than the number of followers.

Conversely, five participants maintained professional boundaries by limiting close personal relationships with direct reports. Stefan maintained a level of formality to protect himself when making potentially unfavorable decisions regarding those perceived as close, thereby avoiding any appearance of favoritism. Meanwhile, Radu showed respect for local customs and cultural awareness, understanding that these norms could create a sense of distance. For example, his employees used formal titles when addressing him, even though he did not require it.

Therefore, “Understanding others” is a precondition for any leader to take on responsibility for others. Leaders should “pause to listen” and “listen to understand,” avoiding the urge to impose their views without understanding the willingness, motivations, and what might discourage the people they lead.

Five Practical Takeaways for Leaders

1. Listen actively: Pay attention, be curious, and show interest in what others say.
2. Be alert to non-verbal signals: Pay attention to your interlocutors’ voice, body language, and facial expressions.
3. Communicate with impact. Adapt your communication style to different audiences and situations.
4. Empathize: Place yourself in the others’ shoes and respond sensibly to their feelings.
5. Build psychological safety: Create a safe space for open expression by sharing your learning experiences, rotating meeting roles, and conducting regular feedback sessions to listen and find solutions.

Pillar 4: Leading others

Pillar 4: “Leading others” is the pinnacle of the leadership framework proposed by the article. It marked the next stage of a journey that took the participants through the first three pillars and prepared them to lay down the last touch on their most significant and profound responsibility: leading others. “Leading others” is what distinguished them as leaders and marked their legacy. From this stage onward, they viewed themselves and were viewed by others as leaders.

“Leading others” involves followers, teams, or groups working towards a common goal. Fifteen participants shared their experience building effective teams of people who support, trust, respect each other, communicate well, and focus on achieving strong results. Without a leader who builds a self-regulating system, teams often fall apart, with members gravitating toward their interests, which can potentially deviate from the overall team objective.

Natalia viewed herself as the team’s primary energy source, ensuring they remained enthusiastic and motivated. Meanwhile, Corina evolved as a leader alongside the team, learning from both her own and others’ mistakes. Alexandra and Radu observed that leadership teams can be ineffective when some members consistently seek instructions. They suggested pushing decisions back to managers to prevent them from avoiding responsibility.

Sixteen participants explored how they intellectually stimulated their followers, encouraging them to think independently, critically, and creatively. For instance, Silvia encouraged her teams to take responsibility and rethink and challenge traditional methods. She prioritized asking the right questions over giving answers, helping the team discover new possibilities and technologies to achieve their goals.

To challenge norms and promote creative thinking, the participants encouraged environments where team members felt supported. Ioana motivated less confident colleagues to participate, share achievements, and propose solutions. Andreea established an advisory committee composed of colleagues with diverse backgrounds and experiences to provide input to her and the executive team. The approach allowed her to advance her agenda and obtain buy-in from several stakeholders as she incorporated advice from various sources.

Fourteen participants emphasized the importance of developing others, acknowledging their role in nurturing future leaders. They discussed the importance of mentorship and knowledge sharing and the creation of supportive work environments. Their approaches, while varied, shared common themes of empowerment and the holistic development of their followers.

Alin, an entrepreneur, has witnessed how many of his colleagues evolved into leaders, thereby enriching the overall leadership quality of the organization. Dan highlighted a culture of continuous personal growth within his organization. Each employee had a career plan tailored to support their development, ensuring they evolved alongside the organization’s changing needs. One principle in his organization was: “Don’t let the company outgrow your personal development.” The brief yet profound corporate value of “Evolve Daily” encapsulated their focus on continuous personal growth.

Finally, fifteen participants described their efforts to act as role models and inspire others to step out of their comfort zones. Andreea emphasized that as a leader, she aimed to be a connector, an enabler, and a multiplier. As a connector, she linked people through the right processes, the right connections, resources, knowledge, or tools so that they could maximize their impact. She enabled a nurturing environment where everyone could access the resources, information, and support needed. And as a multiplier, she sought to unlock and maximize stakeholder value. Similarly, Corina embraced the role of a “multiplier,” leveraging her efforts and the strengths of others to achieve more collectively than individually.

Radu’s insight spanned how leaders understand and lead others. “Leaders must provide direction, especially when there is uncertainty. You have to believe in a leader; you have to believe in their values, and at the end of the day, you cannot be a leader if people do not follow you. And they should follow you out of their free will, not because of fear or other things. For me, that is not leadership. So, when you have a crisis, the leader has to decide, even when all options are bad. I think this is what is expected from a leader”.

Yet “Leading others” was not the end of the participants’ journey. They had the maturity to recognize that they were different from who they had been in the past and who they would become in the future. The participants continued to rediscover themselves, gain a deeper insight into their selves or others (Pillars 1, 2, and 3), and develop and refine their craft, which they called leadership (Pillar 4).

Five Practical Takeaways for Leaders

1. Lead by example: Be a role model by aligning your actions and words, inspiring others to embrace your values.
2. Empower others: Show trust by giving people responsibilities that push their boundaries, challenge them, foster their growth, and provide support when needed.
3. Provide feedback: While most appreciate feedback, delivering constructive criticism can be tough. Focus on offering practical solutions for improvement.
4. Celebrate often: Recognize milestones and achievements to boost morale and engagement.
5. Mentor other leaders: Develop future leaders by sharing experiences, knowledge, and connections, leaving a meaningful and enduring legacy.

Conclusion

The article revealed a holistic leadership framework built on four pillars: Pillar 1: Understanding yourself, Pillar 2: Leading yourself, Pillar 3: Understanding others, and Pillar 4: Leading others. By embracing the journey of self-awareness and personal growth (Pillar 1), taking meaningful action and maintaining integrity (Pillar 2), fostering deep relational understanding and empathy (Pillar 3), and effectively developing and inspiring others (Pillar 4), leaders set the stage for lasting impact and organizational excellence in a very unpredictable market

While the framework suggested by this article may be perceived as aspirational, it also recognizes the challenges leaders might face in embodying all its pillars simultaneously or sustaining them in practice over an extended period. However, this shall not be an excuse for complacency; on the contrary, the model offers a pragmatic but optimistic perspective that ongoing development for leaders is necessary and that progress is achievable. Yes, leaders can be imperfect, yet it is reasonable to hold them accountable for their continuing growth.

The cycle of leadership inevitably will repeat several times in the professional life of leaders as they go through these stages. However, certain conditions, whether within their control or not, inevitably cause the leadership to transition into a post-leadership phase. How leaders transition into their post-leadership phase shapes the legacy they leave behind. The greatest legacy leaders can leave is to develop and inspire future leaders, ensuring that the cycle of leadership continues to thrive.

A fascinating story yet to be revealed in a future article.

[1] Adapted from Toader, Serban, “The Four Pillars of Leadership: Thriving in High-Velocity Markets” (November 11, 2024). Available at SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5016469

[2] The names of individuals mentioned in this article have been changed to maintain and respect their privacy and confidentiality.

[3] “Environment” refers to the overall external context influencing leadership, while “serendipity” denotes specific unexpected events impacting the participants.

[4] Yet, they refused to remain passive recipients of external influences and instead positioned themselves to maximize opportunities by connecting the dots from those factors.

[5] https://www.mindgarden.com/185-multifactor-leadership-questionnaire-authentic-leadership-questionnaire

[6] Avolio, B. J., & Gardner, W. L. (2005). Authentic leadership development: Getting to the root of positive forms of leadership. The Leadership Quarterly, 16(3), 315-338.

[7] Dewar, C., Keller, S., & Malhotra, V. (2022). CEO excellence: The six mindsets that distinguish the best leaders from the rest. Simon and Schuster.