Contemporary leadership models contrast traditional autocratic structures with modern, inclusive ones. Traditional models relied on centralized decision-making and a transactional relationship between bosses and employees. Modern approaches emphasize defining an organization’s identity through mission, vision, and strategy statements. This clear identity fosters participative decision-making, allowing broader member involvement in problem-solving and shaping the organization. Instead of top-down control, modern leadership champions shared purpose, collaboration, and a transformational relationship between leaders and followers. An organization’s well-defined identity is pivotal for the success of modern leadership practices.