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Many people carry the image of a leader as this Superhero—who can see the future, who knows all the answers and who can command the team on what to do (and how). There may have been a time when that image was partially true. But not in the 21st century.
In the last few years, the world has become more global, more digitally enabled and more transparent than ever before. The pandemic and its aftermath, climate change, geopolitical conflicts have all increased uncertainty in the operating environment. The Economist had a cover story on the overstretched CEO a few weeks back—probably a truer representation than the Superhero imagery.
So what could be the additional requirements of leaders in this century, drawing upon learnings of the past but also keeping in mind the shadow of the future?
“A leader is one who sees more than others see, who sees farther than others see, and who sees before others see,” said Leroy Eimes, an author of several books on leadership.
It is clear that leaders are operating in an environment of increased uncertainty. And while no one can predict the future, the ability to see around the corner lends an edge. Leaders can hone this ability by deliberately exposing themselves to a broad range of people and topics across geographies, discipline and hierarchies. This diverse network becomes a source of advantage, especially if they spend time listening deeply and connecting the dots . One of the CEOs in the durable industry consciously marks out time on his calendar to meet with experts and researchers in green energy, quantum computing and material science sectors.
“Most decisions are changeable, reversible ( type 2 decisions) … they are 2-way doors. You can reopen the door and go back through. Type 2 decisions can and should be made quickly, ”said Jeff Bezos, founder of Amazon.
While one can get better and faster at spotting trends than others, it is impossible to predict anything with 100% accuracy. In this increasingly volatile environment, the speed of response is more important than the perfect response. This requires leaders to have an ‘agility mindset’ that does judicious balancing of speed and perfection, with a bias towards speed (except in consequential irreversible Type 1 decisions and areas like health and safety). Leaders with this mindset take decisions basis imperfect information and are flexible in changing tracks later, as needed. Type 2 decisions, as mentioned above, are those where organizations learn more by acting (walking through the door and seeing what’s on the other side) than by trying to imagine what’s on the other side of the door. Of course, there will still be a few Type 1 decisions, but fewer than what one may imagine.
“Leaders must be close enough to relate to others, but far enough to motivate them,” said John Maxwell, another expert on the subject.
The last few years have made companies more conscious of multiple stakeholders, including employees. At a time when global employee engagement levels are at 23% and the best talent has multiple opportunities, it is crucial to meet and exceed employee aspirations. The first step in doing so is for leaders to have empathy to understand what their teams truly want. And then inspire them to raise their game. We have witnessed many leaders demand high performance from their teams and demonstrate genuine care, both at the same time. Indra Nooyi is known for sending personal letters to her teams’ families acknowledging their contributions, and equally known for seeking high performance.
“As we look ahead into the next century, leaders will be those who empower others,” said Bill Gates, founder of Microsoft.
Millennials, who form a large part of the workforce today, want it all. They want their jobs to not only provide a livelihood, but also serve a purpose. They want direction, but do not want to be directed. Leaders have to know when and how to empower people, so that teams truly live up to their potential. During the covid pandemic, we observed several leaders empowering their teams beyond the usual (even if some were forced to do so), whether in manufacturing plants or branch sales units, and these teams rose to the occasion.
“In matters of style, swim with the current. In matters of principle, stand like a rock,” said Thomas Jefferson, third president of the United States.
Today’s leaders are under greater scrutiny than ever before—by regulators, the media, employees and by society more broadly. In this environment, business leaders have to ensure that they not only serve the short-term needs of shareholders, but keep in mind the long-term interests of all stakeholders. We believe that these two are not at cross purposes and effective leaders find a bridge between the two.
“The test of first rate intelligence is the ability to hold two opposing ideas in the mind at the same time and still retain the ability to function,” wrote F. Scott Fitzgerald, the author.
One could, for example, recognize covid as a global crisis of great proportions and yet be hopeful of finding a solution. This was exemplified by the agility shown in the development and deployment of vaccines across the world’s public health ecosystems. The crisis also saw leaders, at all levels, who were both vulnerable and inspiring, who both rolled up their sleeves and empowered their teams, and who focused both on the short-term while keeping the long-term in mind.
The essence of 21st century leadership is about breaking (imagined) compromises and resolving (perceived) trade-offs with authenticity.
These are the authors’ personal views.
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