Authentic leadership in the postmodern world is a necessary concept for organizations. It is a new kind of leadership grounded in the understandings and memories gained in human lives. Organizations need a leadership that is able to critique the shortcomings and myths that support the status quo. It is a leadership grounded in new anthropology and in understanding of the human condition as both feminine, masculine and multicultural, as embedded in nature. This paper reviews literature on the realities associated with authentic leadership in an attempt to answer the question of whether authenticity is significant in developing successful leadership practice. It also evaluates effects of authenticity to leadership practice today. For a better perspective of authentic leadership, a four-component model of authentic leadership consisting of self-awareness, balanced processing, internalized moral perspective and relational transparency is analyzed. The article analyzes the implications of the model to the leader today and identifies practical steps for developing authentic leaders. Authentic leaders help organizations to sustain competitive advantage. Extant literature focuses on studies with practical implications for authentic leadership. The paper generally conceptualizes authentic leadership and authenticity in leadership.