This literature review examines 21st-century leadership, analyzing key issues and changes in leadership theories. It explores the shift from traditional 'Great Man' theories to behavioral and transformational approaches, discussing the challenges leaders face, including engaging employees, meeting investor expectations, and implementing organizational changes. The review highlights factors driving change, such as technological advancements and evolving employee expectations, and identifies core competencies for effective leadership, including strategic vision, communication, and the ability to motivate employees. The paper contrasts transactional and transformational leadership styles, emphasizing the importance of adapting to a globalized market and the need for leaders to foster employee growth and achieve multiple goals, including shareholder value and client satisfaction.