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This study examines the relationship between compassion, leadership, and living systems theory with regards to postmodern leaders by determining how compassion and the philosophy of living systems relate to leadership among writers in postmodern Western culture. It reviews these areas of study as pertinent to the postmodern culture of the West and uses that literature to support research in developing compassionate leadership. The study attempts to answer the question: What are the themes related to compassion and living systems that relate to leadership? The researcher used a grounded theory model of qualitative research to develop the concept of compassionate leadership. Related themes are discussed and interview data is analyzed and reported.