Carlos Ghosn, global head of Renault Nissan, talks up "frugal engineering". He sees it as key to delivering affordable cars in emerging economies like China and India. But, what does he mean? And, by extension, what would "frugal leadership" be?

School teachers often teach - and, therefore, have to lead - students of a common age. But, most of us lead teams covering a range of ages. So, why the fixation with the leadership needs of Generation X or Y, or any other letter of the alphabet? An effective leader engages people of all ages - and types. And, I'll bet X and Y are as diverse as any group.

Times are tough - economically, but also psychologically.  Calls to a national executive counselling service are up 25% year-on-year, according to a report I read today.  And, training and development budgets are getting the chop.  We're all under pressure: to maintain business performance, cut costs and hold our jobs.  There’s no easy answer, but being smart beats being depressed.

In 1997, Don Tapscott published "Growing up digital" - and coined the name "net generation" for the natives of the online world.  Now 11 years on, and after a two-year survey of 8,000 people (born 1978 to 1994) from across 12 countries, he's published "Grown up digital".  He concludes that on average Net Geners are smarter, quicker and more tolerant of diversity than the decrepit oldies like the Baby Boomers, let alone the dodos like me, familiarly known as Veterans.

What's the leadership equivalent of reaching for your Swiss Army Knife, and selecting the right blade?  It's creating a plan, and populating it with appropriate leadership actions.  Actions relevant to current challenges, not old ones.  Actions that convince people and build commitment.  Things that work, giving traction in this tough new environment.

As President-elect, three of Barack Obama's earliest appointments have been: Treasury secretary (Timothy Geithner); Director, National Economic Council (Lawrence Summers); and Director, Council of Economic Advisers (Christina Romer) .  Why these roles, and why so quickly?

V|E|C|T|O|R Leadership® is an online leadership action-planning tool.  It helps you do two things: first, diagnose what your colleagues need you to do, if they're going to follow and support you; and second, turn this into a plan.  Sounds simple - but it's not often done.  The cost: as little as $75 - and you can update your plan, email it and access lots of resource material.  It's certainly new ' and we believe unique.

As children, we learnt about rewards.  We got dessert, if we finished our spinach.  We went to the fair, if our rooms were tidy.  It's not surprising therefore that as adults, incentives still work for most of us. 

You won't become famous by being efficient.  It’s too mechanical.  But leaders are brought down by the opposite.  Inefficiency is something your detractors can point to.  It annoys – and offends – people.  No one likes their time being wasted. 

If you can’t keep up, you're part of the problem not the solution.  And, this is true for leaders, as for anyone else.  If you don't understand how your business works today – the market trends, new technologies, economic drivers and so on – then, people won't want to follow you.  As in a primitive tribe, they’ll leave you to die. 

Benchmarking and intellectual property are modern buzzwords.  No business plan or conference is complete without them.  But, as with all jargon, they're more talked of than seriously applied.  Why?  Because, application is hard work.  And, benchmarking leads to comparing my company, division or team with others.  And, that's potentially embarrassing.  So, let's talk but perhaps not do too much. 

The Sage of Omaha, Warren Buffett, says the downturn is going to be both deep and long. Global central banks have caught the falling knife of financial collapse. But, there's blood (and shredded reputations) on the floor. And now, the real economy is in for a bad time. Customers are already delaying purchases; banks are loathe to lend - even to good businesses; and, no-one knows what the next fright will be.

Without profit, cash dries up, investment stops and the business fails.  For CEOs, profitability and its supporting measures, such as cash flow and return on investment, are a constant focus.  They’re the business's vital signs: corporate blood count and heart rate.  And, particularly important for small businesses with thinner reserves.

The legendary King Midas had a special gift.  Everything he touched turned to gold.  Sounds great, but it wasn’t good for his diet - and he died.  However today, having the "Midas touch" means the ability to make money.  And, many business leaders have this special skill.  They smell what's profitable and what's not.

I've got clients I've worked with for decades.  This may reflect badly on their judgement.  But, for me, it’s a source of great pleasure.  I understand them and their organisation; and, how they think; what they value; when to listen and when to talk; and, in some cases, when to shout.  This enables me to add greater value.

Nature abhors a vacuum.  Particularly, an information blackout.  And, if you let one arise, it may quickly fill with "good stories" put about by competitors and enemies. 

Which do you prefer: an afternoon at the football; or, an evening at the symphony?  Either way, you'll see teamwork in action.  And, perhaps that's the reason so many highly effective leaders have experience of team sports or other team activities. 

I use taxis a lot.  On rare occasions, I step in and am immediately struck by the cleanliness and polish, the smooth running engine, and the useful gadgets the owner has added.  He or she is normally very polite and clearly proud of their chariot.  And, such cabs instead of aging tend to get better with time.

In a recent leadership survey, respondents told me their most common problem was dealing with difficult employees.  People, who for one reason or another, didn't want to sign-on, cooperate or pull their weight.  This is interesting, since the only thing a leader has to have is followers.  So, if any are opting out, then I’m not a leader.  At least, for them.  Hands up if you’ve ever had this problem!  I have, and all too often. 

Alexander the Great is one of history's great leaders. Two thousand years ago, at the head of his Macedonian army, he unified Greece. And, then led a combined army to conquer their ancient enemy, the Persians. The objectives were clear and it all made sense for his generals and troops. However, after four years, he was still dragging them eastward - arriving eventually in northern India. But, his army no longer cared. Alexander was forced to turn back.

We've all done it: rushed to the shops and come back without something.  And, there's always a reason: someone distracted us, or the phone rang.  But, the real reason is we didn't have a list.  That simplest of plans.

Our skeleton provides the structure for our body.  Without it, we’d be a wobbly heap of flesh on the floor.  The same is true for organisations.  If the structure isn't clear, it's hard to make things hold together.  What am I responsible for?  Who's my boss?  Who are my peers?  Who are the subordinates I'm responsible for?  These are amongst the first questions we ask in relation to a new job.

When I pass a mirror, I often check how I look.  Vanity?  Probably.  Yet, it may tell me to straighten my tie or tidy my hair.  But, what I need more than a snapshot of my appearance is a mirror showing me how I behave; and, its impact on others.

New ways often bring new words; or reinvigorate old ones.  "Betterment" is a case of the latter - and something every leader must deliver.  A strategic rethink may set a whole new direction for your business.  However, between these major shifts, there's lots of room for innovation and upgrades.  That's betterment.

General Motors was once a paragon of American business.  It's now in serious decline.  Its plight illustrates what a famous economist called “creative destruction.”  New industries, products and services rise to prominence; but, later lose their traction.  Horse-drawn carriages gave way to automobiles - ushering in gas stations but destroying buggy-whip manufacturers.  Gas guzzlers had their time on the road, but were overtaken by energy-efficient compacts.  And now hybrids; and, so on.

We've all seen the graph.  Starting low at the left, it rises little over the centuries.  Then, in the last hundred years, begins to rise at an alarming rate.  And today, climbs almost vertically – whether plotting the number of patents, the sale of mobile phones or the growth of online commerce. 

We all believe in honesty. And, for most of us, this disbars stealing from colleagues or our employer. But, what about failing to pull our weight on a team project or using work time to pursue personal interests? We've all done it. And, in that sense, I haven't always been honest. And, that's possibly true for most of us.

The chameleon lizard changes colour with its environment.  As a leader, you have to do much more.  When the world changes, you have to transform your organisation and how it operates.  Otherwise, it may fail.  And, to start the organisational change, you have to change.  New situations bring new leadership challenges. 

It's lovely to sit and dream: imagining a better future. But, it takes energy to work out how this might be achieved; and, the real work begins when you have to start organising and implementing.

When did you last reprioritise your diary? But that's the easy part. When did you actually stop doing something? Dropped, finished, gone! That's the tough one.

For many small business owners, survival is an ever-present issue.  There are so many challenges.  Finding customers.  Delivering the product or service.  Holding good staff.  Managing cash and so much else.  What's the key?  To staying afloat - and, more importantly, growing and succeeding? 

Talk to any soldier and they'll tell you it's frontline troops, not generals, who fight the battles.  HQ may set direction and define key goals but it's platoon leaders and their troops, who go there.  They're the ones, who reconnoitre, take territory, dig in and fight.  Now, business isn't warfare.  But, the metaphor has its place. 

My father had an engineering business - making furnaces and other products.  And, I worked summers in factories, while studying engineering.  So, I love that hot, noisy world of clanging metal as it's formed and worked with presses and punches.

Action is the language of leadership.  As elsewhere in life, it's what you do that counts.  Yes, you need to meet with people and talk a lot.  But, the bottom line is "walking the talk."  Action, not theory. 

Why do organisations fail?  Or, succeed?  Breakthrough technology may help.  So can low-cost production.  Or, superb marketing.  But behind all this, one finds leadership.  Whether it's Murdoch, Gates or Mittal driving growth and achievement; or, Wagoner, Lay or others causing their companies to stumble.  But, their's are huge global businesses. 

Think of the all-time favourite stories.  Many describe a heroic journey: a man or woman leading colleagues in pursuit of an exciting goal.  In comparison, being a leader in business is not usually heroic.  You don’t have to fight dragons or dive to the bottom of the sea.  However, as leader of any team, you share one thing in common with the legendary leaders.  There’s no journey, if people won’t follow. 

Jack Welch, Carly Fiorina, Warren Buffett!  These are the centrefold players, big-ticket stars, the leadership fashion models.  We read their names in leadership articles.  Why?  Big names sell subscriptions.  But, the Fortune 500 companies employ just 500 chief executives.  So, what about the rest of us, with names like yours and mine, that most people never hear? 

To understand Italian opera, you only need five words - or, so they say.  Here's the list: morte (death), amore (love), maledizione (curse), adio (farewell) and andiamo (let's go).  Supposedly, these will guide you through any romantic tale. 

How was your last leadership performance review?  And, feedback from colleagues?  Was the employee survey result less positive than you'd like?

What's the secret to being chosen?  Sadly, there's no one answer.  But there are sensible pointers.  The right experience and qualification; presenting well; and, writing a good resumé.  But years of experience (as both an executive and consultant) tell me the acid test is record of consistently delivering results. 

Think of big corporate disasters you've known or read about.  What was the cause?  Bad strategy, wrong business model, inefficiency, bad luck?  Not in my experience.  Most often, the core issue is flawed human beings - and, at the top. 

Are you a leader or a manager?  And, what's the difference?  For me, the distinction is one of degree not kind.  Most managers spend time leading; and, leaders also manage. 

There are times when we stretch ourselves to breaking point. On top of our regular commitments, a parent gets ill, a child’s in trouble, a project goes pear-shaped. For short periods, it’s possible. We push to extreme; then, re-balance.

Throw out all those books on leadership, and the pile of articles on your desk! Reading what other leaders do (or recommend) is like going to the movies or watching TV. It’s entertainment. Sometimes inspiring but mostly irrelevant - and soon forgotten. Most of us don’t need to be General Patton or Rupert Murdoch. We just need to lead that team we see, talk and do things with every day at work.

The article "Building a Leadership Brand" (HBR July/August 2007) is excellent. Assuming, that is, you’re a CEO or HR strategist in a major global corporation. In other words, a few hundred people. But, what about the rest of us: working in smaller organisations, or leading our own businesses? And, worrying daily about delivering products and services, dealing with staff and hoping to improve productivity and profits?

The article, "The Making of an Expert" (HBR July-August 2007), is worth reading if only for one line: experts are always made, not born. And, as the authors stress, this is as true for business leaders as sportspeople, scientists and artists. But how? Years of "practicing intensively"; focusing on "tasks beyond your current level of competence and comfort"; and, having a coach not only to guide you but "help you learn how to coach yourself."

"How Successful Leaders Think" is a classic HBR article: big-name leaders (yes, Jack Welch is there), a handful of anecdotes (passing for evidence), a strong metaphor (we can all understand) and a simple diagram.  A revolutionary idea and leadership made easy.  Except that the core "opposable" thinking (thesis/antithesis/synthesis) is as old as time, as is also the CEO’s unique integrative role across conflicting needs of individual business units, functions and market groups.  But, above all, leadership is about much more than thinking.

"Discovering Your Authentic Leadership" (Harvard Business Review, February 2007) is like a 20-minute, personal-growth workshop.  All the feel-good, righteous stuff is there.  You should be self-aware and authentic.  Don't try to be like anyone else.  Find your own life story and build on that.  Ensure you've got life balance.  Well, all that's fine so long as it finds you on parade and taking leadership actions others will esteem and follow.  And, in this regard, my experience (from three decades of consulting and leading) says there are other factors as well.  Like being passionate and driven, market savvy, technically proficient, tireless in the service of your team and, yes, at times even angry and unfair.  Generals Patton, Napoleon and Wellington weren't heavily into self-awareness.  Nor are many CEOs – including ones I've known and admired.  Nice is certainly valuable, but not sufficient.

People love lists of dos and don’ts. And, why not? They often contain useful hints. And, a good example is Stadler’s article “The Four Principles of Enduring Success” (HBR July/August 2007). He follows in the footsteps of others like Jim Collins (of Built to Last and Good to Great), who analyse the performance of lots of companies and draw simple conclusions to explain why some excel and others fall behind.

At university, a friend decided to compete in the Modern Pentathlon. He was a good athlete and swimmer. But, knew nothing of pistol shooting, fencing or show jumping. I was no sportsman, but had grown up with horses and done some fencing. So, he asked for tips. And, asked another friend about shooting. From these slim pointers, he worked with the team coach and became quite accomplished - and very quickly.