What is human-centered leadership and why is it essential for MBAs?

AI remains the dominant driver of change in business today. Recent McKinsey research indicates that 88% of organizations use the technology in at least one business function. As AI becomes more prominent, so too does the need for leaders who can help employees navigate this new landscape.

Our Corporate Recruiters Survey reveals employers agree that, as businesses adopt new technologies, the skills gained through business education become increasingly important.

Interpersonal skills such as communication, emotional intelligence, and adaptability, in particular, rank among the top skills for employers across regions.

Surging demand for these skills contributes to the need for a new human-centered approach to management. This style of leadership recognizes that organizations exist to serve people, not the other way around, and involves striving to create conditions in which people can be at their best while also contributing to their organization’s mission. 

What is human-centered management?

For MBA student and former US Marine, Steven Embree, a people-centric leadership style aligns with his own approach to management. That’s why he decided to pursue an MBA at Claremont Graduate University’s Drucker School of Management (CGU), a school where human-centric leadership is embedded into its philosophy.

“I gravitated to the kind of leadership style that Drucker promoted, which was more of a people-centric approach,” he explains. “It meshed well with my personality.”

The school’s namesake and legendary faculty member, Peter Drucker, promoted a bottom-up approach to leadership. His idea was that a manager’s job is not simply to give people directions, but to outline the organization’s mission, goals, and objectives, and help employees understand how they can contribute. This contrasts with the top-down approach more commonly seen in management.

“It’s the difference between making someone perform at their job versus them thriving, contributing, and bringing the full picture of their strengths,” says Katharina Pick, PhD, academic director of the Drucker School’s MBA programs and clinical full professor.

Currently pursuing his MBA, Steven works as a senior scrum master at SoCalGas, giving him the opportunity to apply what he is learning at CGU directly. He resonates with Drucker’s philosophy of focusing on human capital and treating people well to ensure both their success and the business’s success.

“If we think of a business as a machine, people are a large part of this machine. But like any part of that machine, people can have strengths, weaknesses, and burn out,” he explains.

What does a human-centered leader look like?

A human-centered leader is someone who embodies flexibility, listens carefully without prejudgment, and seeks to understand, listen, and reflect deeply before making decisions.

“It’s having the flexibility of mind to really understand different viewpoints, even if you don't agree with them, and to take in other people’s experiences and perspectives,” says Katharina.

Often, in business, there is pressure to deliver short-term results, which can conflict with human-centered decision-making. However, this management style demands long-term thinking and puts people at the forefront. When it comes to business productivity, leaders who adopt a human-centered approach are likely to see increased efficiency by tapping into their employees' strengths, creativity, and motivation.

It may not be for everyone, Steven admits, “but if you're a type of person who gravitates toward helping people and wanting to focus on that human-centered aspect, it's going to be hugely beneficial.”

How can you learn human-centered leadership?

As a philosophical approach rather than a theory or tactic, CGU weaves human-centered leadership throughout the MBA curriculum, from marketing to strategy to finance.

The school strives to achieve this via two approaches. An outward-facing curricular component involves community, people management, and understanding customers, while an inward-facing focus is dedicated to helping students understand themselves as leaders.

“It includes things that may not be on the curriculum in some programs, like understanding how your body reacts, and how you show up under stress,” explains Katharina. “By getting people to learn how to regulate their nervous system, they can be more conscious and intentional about human-centered management.”

Small class sizes contribute to this. Steven explains that one of his classes had just six people, making learning more intimate and personalised. “You just have this unfiltered access to the professor and can get into deep conversations,” he says.

Why is a human-centered leadership approach important for MBAs?

At a time when AI is rapidly evolving, human-centered leadership equips MBA graduates with durable skills such as discernment, judgment, communication, and critical thinking. Possessing these attributes gives graduates strong future opportunities, says Katharina.

“The truth is, no matter what AI does, that human dimension will never go away, because organizations still are there to serve human needs,” she adds.

AI aside, Drucker’s philosophy remains particularly relevant today, she continues, as modern stakeholders expect organizations to act responsibly toward society while making a profit.

Regardless of where you are in your leadership journey, Steven recommends exploring Drucker’s philosophy, as he believes the human element is essential in all executive and management roles.

It’s crucial for those in people-centered industries, he adds. “But as in all things, you get out what you put in,” he says. “If you really dig down and try to understand why this focus on people is so important, you are going to reap so many benefits out of it.”