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The world is in crisis. Economies are unwinding; jobs are disappearing – and our spirit is being tested. In light of this, it’s imperative for leaders to demonstrate compassion. But the authors’ research has shown that compassion on its own is not enough. For effective leadership, compassion must be combined with wisdom, i.e. leadership competence and effectiveness. This often requires giving tough feedback, making hard decisions that disappoint people, and, in some cases, laying people off. Showing compassion in leadership can’t come at the expense of wisdom and effectiveness. You need both. The authors have have gathered data from 15,000 leaders in more than 5,000 companies that span nearly 100 countries, showing that leaders exhibit four different leadership styles that reflect different mixes of wisdom and compassion, and the lack thereof. The optimal style is wise compassionate leadership and the authors provide tips and advice on achieving the right balance.