Leadership typesIndustrial economy Financial economy Creative economy

Factories Banks, stock exchanges IT-company, Service

Products and goods Money Emotions, mood

Leadership in Industrial Economy

• Practice the hierarchical bureaucracy of traditional management

• Managers acting as controllers of individuals, coordinating work through the rules, plans and reports of bureaucracy, a preoccupation with efficiency and cutting costs, and predominantly top-down communications.

• Workers in the Traditional Economy tend to be dispirited: only one in five workers is fully engaged in his or her work

Financial Capitalism

• Leaders tend to despise “squishy” issues like customer care, employee empowerment, boosting morale, servant leadership or social benefit.

• Leaders screen less weak employees and transfer responsibility to the staff

Creative Economy• Hierarchical bureaucracy doesn’t cut it• The Creative Economy requires a different, more agile, and more

demanding kind of leadership and management• Shift from controlling individuals to inspiring collaboration among self-

organizing teams, networks and ecosystems.;• Shift from coordinating work by hierarchical bureaucracy to dynamic

linking, with iterative approaches to development with direct customer feedback and interaction with teams and networks.

• Shift from a preoccupation with economic value to an embrace of values that will grow the firm and the accompanying ecosystems, particularly radical transparency, continuous improvement and sustainability.

• Shift from top-down communications to horizontal conversations. Instead of telling people what to do, leaders inspire people across organizational boundaries to work together on common goals.