Purpose-driven leadership is seen as a key approach to navigating the growing complexities of today’s dynamic world. It enables sustainable change. This was the central message conveyed at a talk show session titled “Leading with Purpose: Driving Sustainable Change in a Rapidly Evolving World” during the 2025 International Conference on Management in Emerging Markets (ICMEM), hosted by the SBM ITB, in Bandung on Wednesday (August 20).
The speakers, Prof. Hazel Gruenewald (Reutlingen University) and Dr. Veronica Afridita Khristiningrum (SBM ITB), emphasized that the main challenge for leaders today is dealing with complex and uncertain change, often described as volatility, uncertainty, complexity, and ambiguity (VUCA). In such conditions, leaders must not only think short-term but also adopt a long-term strategic perspective while remaining adaptive. They noted that leadership in 2025 is shaped by three key aspects: agility and resilience, strategic balance, and digital integration.
“Purpose is not just a slogan on an office wall or a phrase on a website. Purpose provides direction, guidance, and a compass for decision-making when leaders face conflicting priorities,” said Prof. Hazel.
Sustainable, purpose-driven leadership, she explained, requires acting with clear intentions and focusing on meaningful long-term goals. Research shows that organizations with a strong purpose can outperform the market by up to 15 times and perform 60 times better than competitors. Purpose-driven leadership, she added, goes beyond reactive approaches, demanding self-reflection, balance between operational demands and long-term vision, and the ability to maintain human connections amid rapid digitalization.
Dr. Veronica highlighted the concept of ambidextrous leadership, the ability to balance exploitation and exploration. “Modern leaders must balance control and empowerment, addressing present needs while preparing for the future,” she said.
According to her, ambidextrous leadership involves three types of innovation: incremental innovation, which entails gradual and continuous improvements; architectural innovation, which develops solutions in designing or restructuring businesses; and discontinuous innovation, which drives radical changes that reshape industries.
She added that leaders must also manage organizational structures to adapt to changing environments. Mechanistic structures are more suitable for stable sectors such as finance and healthcare, while organic structures are required in dynamic fields like technology and the creative industry.
Prof. Hazel further stressed that leaders must align organizational strategy with contextual changes, capabilities, and desired outcomes. She reminded participants that leaders need to understand the three dimensions of change, speed, scope, and significance. Each dimension offers distinct challenges, making it vital for leaders to prioritize decisions with the greatest strategic impact. “A leader’s effectiveness lies in avoiding the trap of being busy without creating meaningful results,” she said.
Dr. Veronica pointed out six tools that can help leaders focus on what they can control: developing a reflective perspective, reviewing priorities, making conscious decisions, thinking ahead, being present, fostering real connections, and creating a leadership legacy.
She concluded that leading with purpose means building a sustainable future by embracing change, generating real impact, and fostering collective responsibility. Purposeful leadership, she added, creates value, boosts employee engagement by up to 30%, and drives innovation by 25%.
“Leadership isn’t just about managing today, but about leaving a legacy for a more sustainable future,” Veronica said.
