INNER Development Goals Are the Prerequisite for Achieving the Outer One

By Kirsten Stendevad, author and leadership developer

Leadership in the 21st century is not only about strategy and economic growth while adapting to presidential elections, geopolitics, and climate. It is also about inner transformation as the prerequisite for navigating outer turbulence.

A 2023 study from the McKinsey Global Institute – based on 1,800 large companies in 15 countries – showed that organizations focusing on human capital development were 1.5 times more likely to remain high-performing and had half the earnings volatility compared to companies primarily focused on financial results.

The companies that prioritized human development also achieved twice as fast growth during the COVID-19 pandemic. Future leaders, therefore, would be wise to optimize inner resources in order to achieve better outer results.

The 5 Inner Development Goals (IDGs), developed by a group of researchers with the aim of enabling leaders to fulfill the 17 UN Global Goals, are an important step in this direction. The IDGs – Being, Thinking, Relating, Collaborating, and Acting – highlight core areas that should be strengthened now.

But are the IDGs, which were just discussed at a conference in Stockholm, sufficient to navigate the complex world we face?

I believe they legitimize what so many of us have experienced: that the inner life co-creates the outer one, and therefore an inner career should have just as high a priority as the outer career. In my view, the 5 IDGs can even be fine-tuned further to the precision that future leadership demands. My proposal for a 21st-century leadership model is based on 7 rules of the game, which include the 5 IDGs but also harmonize with the 7 core areas of human potential. The model integrates both the individual and the collective level of leadership and is therefore useful across generations, genders, and cultures.

The seven rules of the game cover:

Foundation: Solve Problems at Their Root
A leader must be grounded and in touch with reality. This means responsibility for resources and deep insight into the company’s physical, psychological, and financial foundations – à propos ESG.

Creativity and Flow
Innovation and adaptability are central in modern leadership. A leader must therefore understand the anatomy of creativity and create conditions that enable employees to generate new solutions with passion through diversity and inclusion.

Self-Worth, Strength, and Agency
The natural leader of the new era is a beacon who rests securely in themselves, takes responsibility for clearing the past, and initiates actions that shape the future. A strong core gives the courage to make difficult decisions and see them through.

Empathy and Relationships
Empathy is crucial in leadership. A leader who can connect with others and show their heart creates psychological safety and a more loyal organization. A leader who is fundamentally fearful easily makes poor decisions and spreads anxiety, reducing productivity.

Communication and Integrity
Honest and clear communication earns the most points in the long run, so the leader of the future should not hide behind lies, manipulation, or deceit. A leader who speaks truthfully and shows consistency between words and actions builds trust and followership.

Vision and Intuition
Visionary leaders can look ahead and anticipate what is coming. Those who can BOTH stay present in the here and now AND make long-term decisions based on wisdom rather than mere information have the greatest chance of navigating new challenges.

Purpose, Connectedness, and Collective Intelligence
The best leaders work for something greater than themselves and enable employees to feel a deep sense of meaning in this higher purpose. The wisest leaders activate collective intelligence, which is far more robust than a purely hierarchical system.

The IDGs and the 7 rules are not opposites but complementary tools. The IDGs provide a broad framework for developing skills such as critical thinking, emotional intelligence, and agency, while the rules remind us of the 7 essential sets of human resources that, when stimulated, balanced, and cultivated, give us access to genius, resilience, and co-creative superpowers – exactly what we need to solve our individual, organizational, and planetary challenges.

There are countless new leadership models on the market, making it difficult for leaders to know which one to choose. The advantage of the 5 IDGs, as embedded in the 7 rules, is that they guarantee a foundation for life-affirming leadership. This leadership is not only oriented toward achieving success for the company, but also toward creating positive results in all directions.

Many of today’s leaders have reached the top by ignoring, suppressing, or sublimating their inner signals and deepest needs. That strategy will not work going forward. As McKinsey writes in its latest report: “Complicated times require great leaders.” Only by developing our inner world as well can we create the kind of outer success that benefits both ourselves and the world – and that endures.