This room for choice, or leader discretion, is likely the most impactful and underappreciated aspect of governance. It’s where leaders use their room to think, select, and act with discernment when things aren’t clear and stakes are high.
From ancient wisdom to modern boardrooms
The tradition of discretion is not new. Ancient philosophers like Zeno, Plato and Aristotle all linked good judgment with virtue and character. In their view, effective judgment was a product of self-knowledge, balance and integrity, not impulse or self-interest.
Those time-honoured precepts still hold strong today. In modern organisations, discretion fills the gap between strategic calculation and ethical obligation. It’s where the head and heart of leadership converge, using reason and compassion to guide decisions that affect people, resources and reputation.
Business schools will define discretion in close terms as being the ‘agency problem,’ where managers serve their own interests rather than the organisation’s goals. This possibility exists, but discretion is much more positive and creative than that.
Great leaders use discretion to produce outcomes, not simply react to rules or pressure from the market. They interpret their world, challenge assumptions, and regularly redefine what is possible.
Evidently though, the amount of freedom available to leaders depends on context. A technology CEO will generally have more room for innovation than a CEO of a highly regulated utility or public institution. Within the same firm, top managers can have different amounts of discretion depending on culture, structure, and trust.
How values and teams shape judgment
A leader’s background, including their values, experiences and way of thinking, largely dictates how they see the world and exercise discretion. Their education and professional histories influence the way that leaders make decisions on opportunities and risks.
But leadership is always a team effort. Outstanding teams have an enormous influence on how decisions get made. When communication and trust are high, discretion is a collective strength. When they’re not, even the best leader feels constrained.
Top executives learn to reconcile vision and detail, which we term the ‘telescopic’ ability. They are able to scan the horizon for distant opportunities, yet zoom in on what needs to be fixed today.
All leaders operate within constraints: Regulation, market, stakeholder expectations, structure, internal politics, and personal bias. These limits determine how far discretion can reach.
Effective leaders understand these limits, but they also know when to challenge them. They question assumptions, seek candid feedback, and reflect on their blind spots. This self-awareness, or reflexivity, is critical to using discretion effectively.
Un-reflective discretion will likely become self-interest or arbitrary decision-making. Reflective discretion is a motivating force for ethical, accountable leadership that generates trust across the organisation.
The human side of leadership
One of the defining skills of modern leadership is behavioural flexibility, which means having an understanding of how to shift gears according to situation.
Today’s leaders need to be visionary and pragmatic, assertive and empathetic. They can be promoting innovation one minute, and reinforcing discipline the next. For associations, this means juggling diverse member agendas while uniting with a common shared purpose.
This flexibility allows leaders to hold contradictions together. For example, innovation and control or short-term results and long-term goals, without getting side-tracked. It also allows them to interact in a real way with all manner of people, ranging from policymakers and partners, through to employees and volunteers.
Two other forms of complexity are pertinent besides flexibility: cognitive and social.
Cognitive complexity is all about processing different information and recognising patterns others won’t. It assists leaders in making more informed decisions in unclear situations where there may not always be a correct answer.
Social complexity is all about individuals. It’s about knowing personalities, navigating relationships, and discovering areas of agreement when interests conflict. Leaders who are skillful at this develop trust and cooperation even during adversity.
Together, these skills create leaders who are able to meet uncertainty with intention and equanimity, essential requirements in Europe’s fast-changing social and economic landscape.
One of the defining skills of modern leadership is behavioural flexibility, which means having an understanding of how to shift gears according to situation.
Translating constraints into assets
Excellent leaders don’t just exist alongside constraints. They translate them into strengths.
A constraining culture can be changed to free innovation. A complex governance process can be redesigned for increased accountability. By involving groups in a shared purpose, leaders redefine the possible within the system.
It’s not about combatting challenges, but about reframing them. Rather than speaking the words, “We can’t do this because of policy,” excellent leaders say, “How can we do this in accordance with policy?”
Contemporary leadership is about living in tension. Effectiveness challenges creativity, and autonomy often undermines alignment. There is seldom an easy solution, and that’s fine.
The best leaders never try to eliminate paradox. They learn to balance competing forces and use judgment, ethics and agility to maintain their organisations stable and on a successful trajectory.
Agility as a strength
Today’s world is speed-driven, from digital disruption to climate and geopolitical challenges. Successful leaders must be able to adapt at pace. They are curious, emotionally resilient and open to learning.
Flexibility is not just about reacting to change, it’s making it occur. Responsive and adaptive cultures developed by leaders turn uncertainty into an asset.
Discretion’s shadow side exists when it’s improperly exercised. Egotistical, biased or stressed leaders can become controlling or distant, dissolving trust and morale.
In the worst case, this leads to poisonous behaviours, typically characterised as ‘Dark Triad’ narcissism, manipulation, or moral blindness. The antidote to this is self-knowledge, emotional wisdom, and ethical understanding, qualities which should guide every leadership choice.
Discretion with purpose
Lastly, discretion is not about having power, it’s about exercising power. It’s the intersection between freedom and responsibility. Leaders who welcome complexity, look inwards and act with integrity. They don’t merely lead organisations, they make them better.
For associations in Europe and international NGOs who are doing their best to navigate uncertain times, the message is simple: Use discretion judiciously, remain adaptive, and lead with intent. This is what fosters trust today, and resilience tomorrow.