Leading in todays world
Leaders are operating in unprecedented times. Change is constant, and new technologies are disrupting traditional business models. Delos Consulting Director and HR specialist Kate Walker uncovers the qualities leaders need to move their companies forward in today’s world.
New technologies, the climate crisis, economic pressures and, not to mention, a global pandemic. We’re grappling with information overload and competing demands. I often have people tell me they feel like they’re drinking out of a fire hose with all the information they receive.
This is amplified by changes to where, how and when we work – which has in many situations blurred the distinction between work and home life.
Leading in today’s world is challenging and complex. COVID-19 has accelerated the need for organisations to transform their operating model, maximise the potential of their people and adopt new digital initiatives. It’s said that companies now have only two years, or less, to get to where they might otherwise have hoped to be in five[1].
According to global design and innovation company IDEO, “the ability to navigate ambiguity – and to guide people and organisations without knowing what’s ahead – will be one of the key leadership qualities of our time”.
Frank Blake, former CEO of Home Depot, believes there is opportunity in uncertainty. His phrase – “This is a great time to lead. Today’s scars are tomorrow’s stripes” – is apt.
Such insights got me thinking; how do leaders move their organisations forward through this landscape of perpetual change and disruption?
In today’s fast-moving world we know leaders do not, and cannot, have all the answers. They need to empower and enable others more than ever before – which means being accessible and keeping communication lines open so team members can leverage all of the available information.
But what other key qualities do leaders need to navigate such uncertainty? I sketched out my thoughts and settled on the following – innovator, futurist, tech enabler, creator of shared value and purpose-led. I also uncovered the mindsets and actions required to bring these leadership qualities to life.
Innovator
· Mindset: Empathetic
· Business impact: Scalable solutions and growth
One of Amazon’s leadership principles is ‘we value calculated risk taking’.
Encouraging calculated risk-taking helps foster new ideas and innovation. So too does diversity – a diverse multi-disciplinary team exploring and ideating together is likely to unearth more innovative ideas and products compared to a like-minded team.
For example, Chris Waugh, chief information officer at US company Sutter Health, was charged with transforming the company’s healthcare experience to make it more personable. Chris’ first step was to build a diverse, open-minded and cross-functional team to gather knowledge and ideas. This brings a greater range of perspectives to challenge current thinking and develop bold new ideas.
Being an innovative leader requires an empathetic mindset to see things from someone else’s perspective and to genuinely understand their needs.
Paul Tufano, CEO of AmeriHealth Caritas, says this mindset strengthens relationships and fosters a culture of innovation. “If CEOs can step into a ministerial role – extending hands virtually, truly listening, relating to and connecting with people where they are – there is enormous potential to inspire people and strengthen bonds and loyalties within the company.[2]”
The result? Powerful insights to inform the development of new products, and scalable solutions that generate business growth.
Futurist
· Mindset: Optimistic
· Business impact: Courageous and bold vision for the future that creates a sense of possibility
The futurist characteristic requires leaders to be comfortable with ambiguity. It means diving into the unknown, scanning external trends and industries, and creating a culture that inspires teams to challenge the status quo.
Singularity University, an American education and innovation consultancy, says as futurists, leaders need to ask open-ended questions about “unspoken assumptions”.
“They need to be curious about the future and blend imaginative practices of strategic foresight, futures backcasting, science fiction design, and scenario planning into traditional business planning.”
Backcasting – imagining a preferred future then working backwards to identify the actions needed to achieve it – is a useful strategy for generating bold possibilities, adds the University.
“Try imagining an outcome 10 times better, cheaper or more impactful than what exists today.”
The optimistic mindset of a futurist ignites hope and creates a sense of possibility for others.
Tech enabler
· Mindset: Curious
· Business impact: Digital capabilities leveraged to maximise human potential
Technological change is one of the main business disruptors in today’s world.
Leaders need to keep abreast of new technology and approach it with curiosity to understand how it could directly or indirectly impact their industry.
The bionic company – one which combines the strengths of people and technology – is no longer a far-flung concept. Data, machines and digital platforms are supported by human creativity and new ways of working. It means people become designers instead of operators.
According to the Boston Consulting Group (BCG), bionic organisations that combine the capabilities of humans and machines will “develop superior customer experiences and relationships, more productive operations, and dramatically increased rates of innovation”.
Despite the many operational benefits of technology and automation, leaders need to ensure their people remain at the heart of the organisation. It means complementing technology with human potential, so companies retain the advantages of both.
As BCG states, “In fact, the real power of a bionic company lies in further unleashing the power of human creativity. Machines are only enablers.”
Creator of shared value
· Mindset: Collaborative
· Business impact: A more prosperous and resilient society
Collaborating with employees, customers, industry partners and even competitors can help leaders identify new and unexpected opportunities that contribute to the greater good – impacting communities beyond their own.
In an article about leadership in a post-COVID world, BCG refers to ‘winning with others’. The article quotes an unnamed CEO, who says, “It is incumbent on me to have a view to lift my whole industry and all our partners. I can’t win in a barren desert.”
There are many examples of companies that have already created shared value. Nestle has launched a nutrient-rich product priced for low income consumers in India. Nestle talks about working alongside its partners to contribute to society while ensuring the long-term success of its business. While UK retailer Marks & Spencer has launched a programme to support Oxfam’s collection of used clothing. The company refers to its shared value program as Plan A – creating long-term sustainable business value, “because there is no Plan B”.
At its core, shared value is about simultaneously enhancing the competitiveness of a company while solving unmet societal and environmental issues. Within this landscape, leaders need to instil social objectives into the business culture and collaborate with industry partners.
As Singularity University claims, “leaders no longer need to choose between maximising profit and helping society. They can do both.”
COVID-19 has put a lot into perspective. 2020 was a year for many of us to reflect and genuinely consider what legacy we want to leave and how we can make a meaningful difference.
Financial, societal and environmental outcomes don’t need to come at the expense of another. Leaders now need to look for business opportunities that will benefit all of their stakeholder groups – employees, customers, partners, shareholders and the broader community.
Purpose-led
· Mindset: Purposeful
· Business impact: A North Star that guides the future direction and strategy of the organisation into everyday decisions and actions
Purpose guides all of the other leadership characteristics I have already listed above. In these turbulent times leaders need to ensure their team understands the ‘why’ – why their work matters, and how it connects to the bigger picture.
Peter Harmer, former CEO of Insurance Australia Group (IAG), attributes IAG’s resilience during COVID-19 to being a purpose-led organisation.
Talking to McKinsey Partner Simon Blackburn, Peter says “You have to tether resilience to real beliefs. We have a deep commitment to our purpose, which is to make your world a safer place. Our purpose is the framework through which all our decisions are made.
“Out of that purpose flowed the commitment to flexible work to ensure we have a much more inclusive and collaborative work environment.”
This culture of trust resulted in increased productivity and engagement during the pandemic.
“In my experience, if people understand the ‘why’ they’ll sign up to do something they would ordinarily choose not to,” adds Peter.
At Delos Consulting we help organisations bring out the best in their people, transform the way people, teams and organisations work, and create workplaces fit for the future.
Founding Director and Principal Consultant Kate Walker established the business after spending 13 years in Melbourne, providing strategic HR advice for some of Australia’s largest employers.
Talk to us today to find out more.
[2] https://www.mckinsey.com/featured-insights/leadership/the-ceo-moment-leadership-for-a-new-era
