Crises are hitting us from all directions. It is increasingly clear we need an infusion of strong, new leaders to help us navigate safely.

—David Gergen, Hearts Touched with Fire

The first two decades of the 21st century have careened from one crisis to the next. It started with the September 11, 2001, attack on the World Trade Center, followed by the bankruptcies of Enron and WorldCom, and many other unethical firms and the 2008 global financial meltdown. The second decade featured the demise of General Electric (GE), Boeing's mishandling of the 737 MAX crashes, the COVID‐19 pandemic, George Floyd's murder, the devastation of climate change, and, most recently, Russia's invasion of Ukraine.

At their core, these tragic events can all be traced to failed leadership.

The Emerging Leader Edition of True North is not an analysis of these crises or the leaders who caused them. Rather, this is a calling to you as emerging leaders of the next generations—Gen X, Millennials, and Gen Z—to step up and lead authentically by discovering your True North and following your North Star to make this world a better place.

In this book, we feature numerous stories of emerging leaders who are already making a difference, like Kabir Barday, Abby Falik, Tracy Britt Cool, and Rye Barcott, along with pioneers from the Baby Boomer generation, like Indra Nooyi, Ken Frazier, Mary Barra, Satya Nadella, Ursula Burns, John Donahoe, and Chip Bergh.

We are confident your cohort of emerging leaders will create a better world. We wrote this book to enable you to realize your full potential as an authentic leader who has a positive impact on others through your life and work. This book will challenge you to reflect on your leadership, your humanity, your values, and your purpose in life.

Wherever you live, whatever you do, this is your calling:

Make a positive impact on the world as an authentic leader:
Discover your True North, and follow your North Star.

Your True North and North Star

Your True North is the moral compass that guides your actions, derived from your most deeply held beliefs, your values, and the principles you lead by. It is your internal compass, unique to you, that represents who you are at your deepest level.

Just as a compass points toward a magnetic pole, your True North points toward your North Star. Your North Star is the purpose that you pursue to make this world better for everyone.

When you discover your True North, you know yourself at the deepest level and can be authentic. When you have found your North Star, you are ready to pursue your purpose as your calling. This inner journey of knowing yourself is a prerequisite to the great outer journey of leading others. We challenge you to make this journey, both achieving your full potential and having a lasting positive impact on society.

The hardest person you will ever have to lead is yourself.

Many people do not know who they are. They are so focused on trying to impress others that they let the world shape them rather than shaping themselves into the kind of leaders they want to be. When you follow your True North, your leadership will be authentic and people will naturally want to associate with you.

As philosopher William James wrote a century ago,

The best way to define a man's character is to seek out the particular mental or moral attitude in which he felt himself most deeply and intensely alive. At such moments there is a voice inside which says, “This is the real me!”

Can you recall a time when you felt most intensely alive and could say with confidence, “This is the real me”? I had that feeling from the first time I walked into Medtronic and joined a group of talented people dedicated to the mission to “alleviate pain, restore health, and extend life.” I felt I could be myself and be appreciated for who I was and what I could contribute. I sensed immediately that my values aligned with the organization's values.

Whether you are leading a small team or a large organization, you will inevitably face pressure from external forces that challenge your values or attempt to seduce you with rewards. These pressures and seductions may pull you away from your True North. When you get too far off course, your moral compass tells you something is wrong. That's when you need to reorient yourself, which requires resolve to resist the constant pressures and expectations confronting you. As you are tested in the world, you yearn to look in the mirror and respect the person you see and the life you are leading.

This is not to say that authentic leaders are perfect. Far from it. All leaders have weaknesses, make mistakes, and are subject to human frailties. By acknowledging their shortcomings and admitting their errors, the humanity and vulnerability of authentic leaders comes through, and they connect with and inspire others to reach their full potential.

The End of Command‐and‐Control

In the 20th century, business schools instructed managers to build competencies such as leadership style and communication skills. Some authors took these ideas to the extreme, writing nonsense such as “strike a power pose when presenting” or “fake it until you make it.” What the competency‐based models missed is the importance of character. While your title makes you a manager, your character makes you a leader.

Most Baby Boomers accepted the rules of hierarchy, waiting their turn for senior leadership positions. They valued a company's financial stability, and their net worth grew as the postwar American economy soared. This era was particularly hard for professional women, since they often faced higher standards with little flexibility or acknowledgment of their lives outside the workplace.

In business, the 1980s and 1990s were typified by Jack Welch, the mastermind who made GE the most valuable company in the world and the epitome of 20th‐century leadership. Jack was passionate, competitive, financially driven, and highly successful. He spawned countless imitators who sought to copy his style. Search firms aggressively recruited GE managers to transform organizations, although many GE alumni who became chief executive officers (CEOs) ultimately failed.

When I was CEO of Medtronic, I felt at odds with many of my fellow CEOs who seemed to be more interested in their stock price and the amount of money they were making. As I concluded my term as CEO in 2001, I felt the predominant model of leadership was deeply flawed, as the media primarily judged leaders based on their charisma, leadership style, stock price, and compensation packages.

In 2008, public trust of business leaders fell to a 50‐year low following the global financial collapse. The harm the financial community caused for so many woke us up to the need to rethink capitalism—not just as a vehicle to make financiers wealthy but also as a way to create value for all stakeholders.

These crises taught emerging leaders lessons on what not to do. They watched as those in control chased money, fame, and power instead of serving others. They learned the perils of putting self‐interest ahead of the best interests of the institutions they led.

Authenticity: The Gold Standard for Leaders

When I wrote Authentic Leadership in 2003, I was surprised how often people asked, “What do you mean by authenticity?” In that era of charismatic leaders, many people were fearful of being themselves. The reality is that no one can be authentic by trying to be like someone else. You can learn from others' experiences, but you cannot be successful trying to be like them. People will trust you only when you are genuine and authentic.

The crises of the early 21st century led to a rethinking of leadership. By 2015, the Harvard Business Review heralded, “Authenticity has become the gold standard for today's leaders.” Now the hierarchical, directive leadership style so prevalent in the past century has been replaced by empowerment, collaboration, and authenticity. The old notion of leaders being the smartest guys in the room, as typified by Enron CEO Jeff Skilling, has been superseded by leaders with high levels of self‐awareness and emotional intelligence, such as Microsoft's Satya Nadella.

No longer is leadership about developing charisma, emulating other leaders, looking good externally, and acting in your self‐interest. Nor should you conflate leading with your leadership style, managerial skills, or competencies. These capabilities are but the outward manifestation of who you are. If you create a false persona or hide behind a mask, people will quickly see through you.

Authentic leaders are true to themselves and their beliefs. They engender trust and develop genuine connections, which enables them to motivate people to achieve high levels of performance. Rather than letting the expectations of others guide them, they are their own person and go their own way. As servant leaders, they are more concerned about helping others succeed than about their own success or recognition.

The rise of authentic leadership coincides with the arrival of emerging leaders. Gen X (born 1965–1980), Millennials (born 1981–1996), and Gen Z (born 1997–2012) expect different things from work and have different values, such as greater transparency and increased diversity. Whereas previous generations hesitated to openly discuss their personal lives or mental health in the workplace, emerging leaders cannot imagine closing off these parts of themselves.

Newer generations won't conform to a conventional work schedule: 9 of 10 Millennials say they prioritize work‐life balance. COVID‐19 only accelerated this trend, particularly with regards to increasing flexibility. In the post‐pandemic world, people insist on working for leaders who focus on their employees' well‐being, addressing such vital subjects as employee engagement, work‐life integration, mental health, workplace flexibility, and the social impact of their work.

Purdue researchers summarize the desires of the emerging generations:

They want companies to act more human. To have a greater purpose that speaks to connection and support. Meet their expectations for flexible working, better health care, but most importantly, help them keep the personal energy they need to survive and thrive when times get tough.

Dov Seidman, author of How and founder of LRN and The HOW Institute for Society, describes why these changes are necessary. He says leadership has morphed in recent centuries from “hands to heads to hearts.” In the industrial revolution, companies strove to maximize the output of people using their hands. In the past 50 years, the information revolution shifted the focus to data analysis, maximizing people's use of their heads. In the era that's developing, we are focusing on using our hearts.

Artificial intelligence will supplement the way we use our heads, but it will never take the place of essential leadership qualities of the heart such as empathy, passion, courage, values, intuition, and purpose. As leaders we must develop our hearts to grapple with complex challenges and dilemmas. Do you have these qualities of the heart? You need to cultivate them throughout your lifetime to be an authentic leader in today's world.

Ralph Lauren CEO Patrice Louvet summarizes the distinction between 20th‐ and 21st‐century leaders:

We have gone from leaders who expect everyone to serve them to servant leaders who see their role as serving the people they lead and represent. Our job as leaders is to create the conditions for our people to thrive and realize their full potential. Twentieth‐century leaders felt they had all the answers and knew exactly what to do. Twenty‐first‐century leaders are constantly learning, even if they have been on top for many years.

The big shift is from “command‐and‐control” to “empowerment with personal accountability.” The emerging generations won't tolerate the command‐and‐control model anymore. We drive the decisions down as close as possible to the customer and then hold people accountable for outcomes.

Figure I.1 clarifies the differences between 20th‐ and 21st‐century leaders.

To summarize the differences in a word—it's authenticity. Authentic leaders are characterized by truth‐telling, transparency, and trust.

• Truth‐telling. Of all the qualities required for authentic leaders, the one indispensable value is integrity: telling the truth. Without truth between people, there can be no authentic relationships. Organizations cannot function without integrity and the common basis that truth provides. Without honesty, organizations devolve into political jungles where charisma takes precedence over character—a guaranteed route to failure.

  Characteristics	20th‐Century Leaders	21st‐Century Leaders
  Philosophy	Command‐and‐control	Authentic leadership
  Organizational approach	Hierarchical management	Empowering leadership
  Image	Charismatic	Purpose‐driven
  Motivation	Self‐interest	Institution's best interest
  Experience	Perfect resume	Learning through crucibles
  Time frame	Short‐term	Long‐term
  Greatest strength	IQ	EQ
  Personal measurement	External validation	Intrinsic contribution

• Transparency. In the 20th century, senior leaders often shared with their teams on a need‐to‐know basis. The internet and social media have completely changed people's access to information and expectations of transparency. No longer can leaders keep important information away from their stakeholders, as everything tends to come out eventually. To have an effective organization, information must flow freely—up, down, and sideways. Authentic leaders share the complete picture with colleagues. They don't expect perfection; they insist on openness.
• Trust. Trust emanates from truth‐telling and transparency as well as admitting your mistakes and exposing your vulnerabilities. Author Stephen M. R. Covey says high‐trust organizations earn a “trust dividend” because when people trust each other they make decisions and reach alignment faster. An essential part of your job as a leader is to build the trust of your employees and your customers in the quality of your products and services. Trust is not created by your words alone, but by your actions. To use the cliché, you must “walk the talk.”

By developing these three qualities—telling the whole truth, being fully transparent, and building trust with all your stakeholders—you gain credibility as an authentic leader.

Navigating the Emerging Leader Edition

To write the Emerging Leader Edition of True North, my coauthor Zach and I interviewed 50 leaders with an emphasis on the new generation of leaders. These interviews are in addition to the 172 leaders we spoke with for previous versions of the book. In our total of 222 interviews, we tapped into a collective wisdom about the art of leading people.

In this book, we describe leadership principles I learned during my career, starting as an individual contributor, then growing into a leader, and eventually rising to CEO of Medtronic. For the last 2 decades, I have been teaching leadership to executives and MBA students, coaching and mentoring leaders, and serving on corporate boards—experiences that have given me a deeper appreciation for authentic leaders in all walks of life. Zach, a 37‐year‐old Millennial, has spent the last 12 years in a different phase of his career—creating a digital media startup and growing it into a successful company with several hundred employees.

As a note, I'll use the pronoun “I” when sharing personal stories or reflections. “We” reflects the points that Zach and I believe are essential to your development.

This book does not contain “six easy steps” or other simple formulas. Rather, discovering your True North requires introspection, support, and feedback from family, friends, and colleagues. Ultimately, you must take responsibility for your own development. Like musicians or athletes born with great abilities, you must devote yourself to a lifetime of intentional practice to realize your full potential.

Part I: Discover Yourself focuses on your journey through life. It begins with deep exploration of your life story, which is more powerful than any set of leadership skills or characteristics. By exploring your crucibles, you learn how to turn your challenges into inspiration to accomplish extraordinary things. During their journey many leaders lose their way. To understand how you could derail, we analyze five types of leaders who were caught in the trap of leading without their True North to chase money, fame, and power.

Part II: Develop Yourself outlines the four elements of your personal development that comprise your internal compass: developing self‐awareness, living your values, finding your sweet spot, and leading an integrated life. These elements enable you to develop as an authentic leader, and cultivate the ability to stay true to who you are as you confront challenges in the world around you.

Part III: Lead People describes your transformation from an I leader focused on yourself to a We leader focused on serving others. Only then will you be ready to discover your North Star—the purpose of your leadership. Purpose‐driven leaders COACH their teammates to achieve their full potential by Caring, Organizing, Aligning, Challenging, and Helping.

Part IV: Navigate Today's Challenges guides you on leading through today's challenges. We examine the importance of creating inclusive cultures. We explore how to lead through crises. Finally, we challenge you to be moral leaders serving society by committing to solving the world's most difficult problems (Figure I.2).

Each chapter begins with the life story of a featured leader who exemplifies the key points of that chapter. Then we introduce leadership principles and frameworks that help you apply the concept, illustrating them through the deep insights of the leaders we interviewed. At the end of each chapter, we profile an emerging leader as well as my take on these ideas. Each Idea in Brief section recaps the chapter's main points, offers specific actions for you to implement, and poses probing, introspective questions to ask yourself in your leadership development process. We encourage you to spend time journaling your answers. Even better, purchase the Emerging Leader’s Guide to True North, which provides additional exercises for deeper reflection.

The Emerging Leader Edition of True North enables you to embark on the most exciting journey of your life by discovering your True North and following your North Star.

My coauthor, Zach, adds: When I began working with Bill as a 24‐year‐old student, I didn't fully understand how much I would draw on his wisdom during all the twists and turns of my journey ahead. So let me share a message for other emerging leaders reading this book:

• True North contains a lifetime of wisdom that can unlock your success.

  

• It provides a road map for figuring out who you are and what you are meant to do.
• The self‐knowledge you gain and mindset you develop will positively change your relationships.
• The inner journey of understanding and developing yourself will prepare you for the outer journey of making your most meaningful contribution to the world.

Understanding these concepts and applying them is an ongoing process. Through my work with Bill, I kept coming back to these ideas and encountering them from a different place as my journey progressed. I encourage you to do the same. While reading this book, don't just flip through the pages—journal, discuss the concepts, do the exercises. Come back to the book a year later and do it all again. Engaging with Bill's wisdom has changed my life, and it can change yours as well.

As you embark on your journey, remember:

You do not have to be born with characteristics or traits of a leader.

You do not have to be at the top of an organization.

You can step up and lead today.

You can discover your True North right now.