In recent years, the world has become a boundless society. Increasingly, organizations have to change in the new millennium. Effective organizations are competitive, show profit and growth, value innovation, experience customer satisfaction and employee satisfaction. To manage organizations effectively, leaders must keep a balance between the system and people. Two categories of leadership are identified: transformational leadership and transactional leadership. Leaders have to have a clear vision, for instance, to become an outstanding business university in Asia. Leaders are responsible for vision and core strategy. To meet the vision and core strategy, organizations have moved gradually from a traditional bureaucratic structure into a horizontal structure, a complex and yet flexible network. Therefore, the role of a leader focuses on the quality of the people within the organization. Effective employees perform well; solve problems and anticipate potential problems in the future. Whenever employees become responsible people, organizations are not only competitive in their local markets, but can also be globally competitive. These changes impact on profit and growth of organizations.