This study utilized a qualitative approach to examine academic leaders’ perceptions of the impact of the changes occurring in the higher education environment on leader development and the faculty governance model. Interviews were conducted with academic leaders in four regionally accredited, 4-year, private, similarly-sized, religiously affiliated institutions in a rural region of a Midwestern state. The interviews explored the perceptions of academic leaders on the impact of changes within the context of the social construct of the higher education environment, the contextual influence on leaders and leadership development, and the faculty governance model. The results suggested that individuals socially reconstruct their environments by revisioning the challenges in the context of the mission of the institution. The results further revealed the philosophies of trust, support, mentoring, followership, and decision making as critical to shared leadership in the higher education environment. Academic leader development, the faculty governance process, and shared governance were influenced by the changes occurring in the environment. These findings have important implications suggesting the need to examine the construct of leadership in the higher education environment and academic leaders’ influence on faculty governance and shared governance. The findings also raise interesting possibilities for advancing an augmented view of leadership in the higher education environment.