In the era of ever-changing business scenarios where organizational structure becomes increasingly complex, the task of leadership becomes increasingly difficult. Business leaders face an unstable economic climate, political policies and increasing international competition. Innovation in technologies, the emergence of knowledge-based business tools and the industry that manages them, ruthless media and advertising mechanisms, an aware and demanding consumer and concerns about environmental resources pose a complex mix of challenges that managers must face to be successful. Furthermore, following some recent financial events, ethics will play a more important role and leaders around the world will be challenged by the choices they make. Efforts have been made from time to time to identify leadership challenges that organizations should address. over the next 10 years and the steps needed to address them, among these the following main challenges have emerged. Developing managerial effectiveness: This includes the challenge of developing relevant skills, such as time management, prioritization, strategic thinking, decision making and acquiring pace with the job – to be more effective at work . The standardization of norms, work processes and results not only results in the achievement of tangible success such as optimization of resources and maximization of profits, but also in intangible success such as greater job satisfaction and a state of Goal-oriented mind rather than process-oriented. Therefore, management effectiveness lies entirely in the rationalization of processes and in ensuring a gradual transition of methodologies for rapid adoption of decisions, giving sufficient time to act on them. Adhocracy, popularized by Alvin Toffler and Henry Mintzb... at the heart of the document... to ensure the group achieves a common goal. In the changing socioeconomic structure of the world and the challenges of multicultural business, a leader's job becomes tougher every day and must continually evolve to withstand the challenge. Even in this day and age, it is imperative that leadership grows from the seeds of moral integrity, spiritual wisdom and chaste conduct in future leaders. Any organization, therefore, will need to allow individuals to grow and contribute to the process to enable effective leadership to emerge. It is also necessary for every organization to make conscious efforts to instill a sense of responsibility among its owners and facilitate understanding of the challenges faced by communities struggling to sustain themselves. Constant learning and learning faster are the keys to success in the twenty-first century.