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In this article, the author says that in the new millennium, the autocratic styles of management where decisions are made by the 'suits' are giving way to a leadership style which recognises the people as the critical success factor. Hence, 'the third wardrobe' which is the adoption of a new neat casual dress code by executives, is symbolic of the need to put people and team factors at the core of the leadership agenda. He discusses the 'soft' leadership skills needed for business success and concludes that the greatest success for companies over the long term will be delivered by 'third wardrobe' leaders who balance the hard and soft agendas in driving change.