The wise leader

Area of Science:

• Business Management
• Organizational Behavior
• Ethics

Background:

• Modern business environments face increasing discontinuity due to rapid technological advancements, demographic shifts, and evolving consumption patterns.
• Leaders struggle to adapt corporations, build global organizations, and ensure ethical conduct among employees.
• The concept of practical wisdom (phronesis) is presented as essential for effective leadership.

Purpose of the Study:

• To define and elucidate the concept of practical wisdom (phronesis) in leadership.
• To identify and describe the key abilities of wise leaders.
• To provide a framework for cultivating practical wisdom in organizational settings.

Main Methods:

• The study draws upon philosophical concepts, particularly Aristotle's notion of phronesis.
• It synthesizes insights from organizational behavior and leadership studies.
• The authors identify six core abilities demonstrated by wise leaders.

Main Results:

• Wise leaders make decisions prioritizing organizational and societal good.
• They possess a deep understanding of situations, people, and events.
• They foster environments for collaborative meaning-making and knowledge transfer through storytelling and mentoring.
• Effective political influence and ethical judgment are key components.

Conclusions:

• Acquiring practical wisdom (phronesis) is imperative for contemporary leaders.
• Wise leadership involves ethical decision-making, contextual understanding, and fostering a conducive organizational culture.
• Developing practical wisdom through mentorship and experience is vital for organizational resilience and success.