In Australia, the role of leadership in global competitiveness has become an important public policy issue under the Labor government, against a backdrop of extensive reforms (Rozario & Hampson 2005, p.2). In the 1990s, this agenda was expanded to include management due to poor corporate performance. It was apparently essential to develop leadership skills not only for private sector entrepreneurs, but also for managers of public institutions. Due to its nature, leadership is most often seen as a means to achieve results. However, it also refers to the development of issues outside of common concerns and knowledge. Leaders in the private or public sector face a necessary challenge to remain relevant and meet public interests. This involves prioritizing competing needs. Leaders must be motivated to achieve and strengthen cooperation. Leaders must encourage development and accountability. Over the past two decades, the Australian economy has changed significantly. Successive governments have initiated economic reforms, for example phasing out financial deregulation, tariffs and air freight reform (Edwards, O'Reilly & Schuwwalow 1997, para. 5). As a result, Australian organizations faced a new form of competition as indigenous industries were exposed to a free market. This required a change of approach from workers and businesses. This report can be an important source of information on management systems drawn from Australian managers in the development of appropriate organizational practices (Kendal 2003, p. 49). Importance of leadership In Australia, emphasis has been placed on examining the skills of leaders. According to the National Training Council Policy and Guidelines (1992, p10), competence...... middle of document ......hipforecast2005_report_au-nz.pdf[[Accessed 6 January 2010].Rozario , A., & Hampson, I., 2005. Management Development as Public Policy: The Case of Australia's Frontline Management Initiative (FMI) 1995 – 2002, paper prepared for presentation at the 28th Work Process Conference 2005 (online ). Available at: http://www.hrm.strath.ac.uk/ILPC/2005/conf-papers/Rozario-Hampson.pdf. [January 6, 2010].Sandberg, J., 2000. Understanding human competence at work: An interpretive approach, Academy of Management Journal, 43 (11): 9-25. Willmott, H., 1993. Strength is ignorance; Slavery is freedom: managing culture in modern organizations, Journal of Management Studies, 30 (4): 515-552. Working Futures, 2005. Knowledge exchange. (Online). Available at: http://www.marcbowles.com/sample_courses/frontline_v5/fma1b.htm [Accessed January 07, 2010].