Leadership in business has undergone a radical transformation, from the rigid hierarchies of the past to today’s more human-centred, values-driven approach. Once defined by authority, centralised decision-making at the top, and a one-way communication flow from leaders to workers, the traditional model reflected the industrial age mindset, where control, uniformity and discipline were prioritised to manage large-scale operations efficiently. However, that world has changed dramatically with innovation overriding obedience.

The shift began in the late 20th century and accelerated through the 21st century with the rise of digital technologies and a more empowered workforce. As economies moved away from manufacturing toward service and knowledge-driven industries, the role of leadership evolved to meet new expectations.

Digitalisation disrupted traditional business models. The new world required critical thinking, collaboration and adaptability – moving from rigid structures to more flexible, technology-enabled teams. The internet, smartphones and cloud technologies eliminated the idea of hierarchies and demanded speed and agility. Leaders had to adapt quickly, lead digital transformations and manage decentralised teams. Simultaneously, the rise of Millennials and Gen Z in the workforce brought new values, with purpose, transparency, and inclusivity. This generational shift led to the evolution of leadership that is empathetic, inclusive and authentic.

Leaders in today’s business world are not just driving profits, but are shaping culture, displaying authenticity and building purpose-driven organisations. Emotional intelligence, empathy and transparency have become essential leadership traits. The best leaders understand that happy and empowered teams drive both performance and customer satisfaction.

Leadership has also widened its focus to broader societal and environmental responsibilities. ESG (Environmental, Social, and Governance) metrics have now become critical indicators of performance. Value creation is not just for shareholders anymore, but for all stakeholders, including employees and communities. Culturally, leaders have stepped into the role of “chief culture builders,” championing diversity, equity and inclusion (DEI), promoting mental health, and encouraging open dialogue in workplaces. Leadership today is about creating safe spaces where innovation and diverse talent can thrive in absolute harmony.

Moreover, leaders today are increasingly public facing, with our views on social issues, online presence and public persona directly shaping how their company is perceived. In a transparent, digital world, our personal image becomes part of the corporate brand. This visibility requires leaders to be authentic, not just in words, but in consistent, values-driven actions. Leaders who speak openly, take clear stands and genuinely connect with people build trust and loyalty. Employees and customers alike are drawn to brands whose leaders reflect their values.

As these values of transparency, inclusivity, and purpose take root, they are helping leaders steer companies toward long-term value creation, not just in financial terms, but in the broader impact they have on society, culture, and the environment.

In today’s fast-moving world, we at Centena Group believe that leadership is no longer about exerting power, but about connection, adaptability and purpose driven with a human touch. The leaders who thrive are those who put people first, respect employee values and lead with humanity. In an era defined by complexity and uncertainty, leadership rooted in empathy, will result in shaping a better businesses and a better world.

This Opinion piece is contributed by Sanjay Raghunath, Chairman and Managing Director at Centena Group.


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