| Summary: | Some governments hit by recession have chosen to invest in higher education as part of long-term economic and social development and international competitiveness agendas; others have opted for a route of cuts, financial stringency and contraction of their higher education systems. This article explores challenges to leadership in the latter context. Different types of institutional responses are examined in terms of three categories: reactive, adaptive and generative, first in terms of the nature of responses and second in relation to three institutional case studies. The higher education responses are then compared with the responses - and associated leadership lessons - that have been compiled from other sectors. Different forms of leadership development are also helping leaders to meet the challenges at individual, team and organisational levels, within and across countries and sectors
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