What Is Authentic Leadership and Why Does It Matter in Times of Change?

New technology, AI, economic uncertainty, and global challenges are changing how organisations work.

For leaders, this can make it difficult to plan ahead and make decisions. They need to guide their teams even when they don’t know exactly what will happen next.

This is where authentic leadership can help.

Authentic leaders are honest, self-aware, and guided by strong values. Instead of pretending to have all the answers, they listen to others and help their teams adapt together.

This article looks at what authentic leadership is, why it matters, and how leaders can develop this leadership style.

Key takeaways

• Authentic leadership is built on honesty, trust, and self-awareness. 
• Leaders who listen, communicate clearly, and stay flexible can help their teams deal with uncertainty and work together during times of change. 
• Authentic leadership skills can be developed through education and practice.  

What is authentic leadership?

Authentic leadership is a leadership style based on honesty, self-awareness, and strong values.

An authentic leader understands their strengths and weaknesses and how their actions affect other people. They listen to different opinions and are willing to admit when they don’t have all the answers.

They also try to make fair decisions that reflect their values.

According to authentic leadership theory, this leadership style has four main parts: 

• Self-awareness
• Relational transparency
• Balanced processing
• Internal moral perspective

Together, these qualities help leaders build stronger and more honest relationships with the people they lead, adopting human-centred leadership in the age of automation. 

Why is authentic leadership important during a crisis?

A crisis can create uncertainty for both businesses and their employees. People may feel worried about what will happen next, while leaders may need to make important decisions with limited information.

This makes leadership in times of crisis especially important.

In the past, leaders were often expected to have all the answers. However, today’s challenges can be too complex for one person to solve alone. Rapid changes in technology are a good example. 

PwC’s 2025 Africa Workforce Hopes and Fears Survey found that only 35% of African workers believe their current skills will still be relevant in three years. 

Authentic leaders recognise this uncertainty rather than trying to hide it. They communicate openly about what is happening and are willing to admit when they don’t know something.

They also listen to their teams and encourage people to share their knowledge and ideas. This can create psychological safety, where employees feel more comfortable asking questions, raising concerns, and suggesting solutions.

Lastly, as circumstances change, authentic leaders are also willing to adjust their plans.

This combination of honesty, teamwork, and flexibility can help businesses respond to a crisis and become better prepared for long-term change.

How does authentic leadership build trust?

Trust develops when employees can see that a leader’s words and actions match.

Authentic leaders help build this trust by communicating openly and explaining their decisions. They listen to other people’s opinions and take responsibility when things go wrong.

As a result, employees may feel more respected and comfortable speaking up.

Trust is also an important part of leadership in South Africa. PwC’s 2025 research found that more than 55% of African workers trust the people managing their organisation, which was five percentage points higher than the global average.

Building on this trust can help leaders create stronger relationships with their teams.

How can leaders lead effectively during uncertainty and change?

Good leadership during uncertainty starts with accepting that change is part of modern business.

Technology, customer needs, economic conditions, and global events can all change quickly. This means leaders need to be ready to learn and adapt as new challenges arise.

There are several ways they can do this:

• Communicate clearly. Keep employees informed about what is happening and explain why important decisions are being made.

• Listen to others. Employees at different levels of a business may have useful knowledge and ideas.

• Create psychological safety. Encourage people to ask questions, raise concerns, and share new ideas.

• Stay flexible. Be prepared to change plans when new information becomes available.

• Keep learning. Leaders and their teams need to continue developing their knowledge and skills.

• Encourage teamwork. Complex problems are often easier to solve when people work together.

Most importantly, leaders don’t need to know everything themselves. Instead, they can create an environment where people learn and find solutions together.

What skills do authentic leaders need?

Leading in this way requires a range of leadership skills.

One of the most important is self-awareness. Leaders need to understand their own strengths, weaknesses, emotions, and values. This can help them understand how their behaviour affects other people.

Other important skills include:

• Communication: Explaining ideas and decisions clearly while also listening to others.
• Empathy: Understanding how employees feel and how changes may affect them.
• Ethical decision-making: Making fair decisions that reflect strong values.
• Critical thinking: Looking at different facts and opinions before making a decision.
• Resilience: Recovering from challenges and continuing to move forward.
• Adaptability: Changing plans or approaches when circumstances change.

These skills work together. For example, self-awareness can help a leader recognise when they need advice, while communication and empathy can help them ask for that advice and understand different viewpoints.

Developing these skills can lead to stronger business leadership and help leaders guide their teams through change.

How does REGENT teach students leadership skills?

Because leadership skills can be developed, education can play an important role in preparing future leaders.

REGENT Business School gives students opportunities to build practical leadership and management skills.

For example, REGENT’s Advanced Diploma in Management develops skills such as communication, management, and problem-solving. Its Postgraduate Diploma in Management also helps students build their knowledge of business, leadership, and administration.

Students can also gain practical experience through REGENT’s iLeadLAB, which combines technology, practical learning, and mentorship.

Together, these learning opportunities can help students prepare for the challenges they may face as future managers and business leaders.

FAQ

What are the four components of authentic leadership?

The four components of authentic leadership are: 

• Self-awareness
• Relational transparency
• Balanced processing
• And an internalised moral perspective

Self-awareness means understanding your strengths, weaknesses, feelings and values. Relational transparency means being open and honest with other people.

Balanced processing involves considering different information and opinions before making a decision. Finally, an internalised moral perspective means making decisions based on your values and what you believe is right.

What is the difference between authentic leadership and transformational leadership?

Authentic leadership focuses on honesty, self-awareness, and strong values. Transformational leadership focuses more on inspiring people to work towards change and achieve a shared goal.

However, the two leadership styles can work together.

For example, an authentic leader may build trust through open communication and then use that trust to encourage their team to work towards positive change.

Can authentic leadership be learned?

Yes. People can develop leadership skills through education, experience, feedback, and practice.

For example, leaders can improve their self-awareness by asking colleagues for feedback. They can also become better communicators by listening carefully and explaining their decisions more clearly.

Over time, this type of leadership development can help leaders develop a more authentic and effective approach to managing people.

How does authentic leadership improve employee engagement?

Authentic leaders create an environment where employees can feel heard, respected, and valued. When employees trust their managers, they may also feel more comfortable sharing ideas and taking part in decisions.

This is important because employee engagement remains a challenge. Gallup found that only 20% of employees worldwide were engaged at work in 2025. 

This shows how much a manager’s leadership style can affect the people they lead.

Why is authentic leadership important in modern business?

Modern businesses need to deal with constant change. New technology, AI, economic shifts, and global events can quickly affect how organisations work.

Authentic leaders can help their teams deal with this uncertainty by building trust and encouraging collaboration.

They are also willing to learn and adjust their approach when circumstances change.

This can help businesses become more flexible and better prepared to succeed over the long term.

Study leadership courses with REGENT

As the business world continues to change, organisations need strong leaders. 

REGENT Business School offers programmes that can help current and future managers build practical business and leadership skills. Students can learn how to solve problems, make decisions, manage change, and work effectively with others.

Explore REGENT’s undergraduate and postgraduate qualifications, corporate training solutions, and short learning programmes to find a course that can help you prepare for your next step in business leadership.