Why will the world crave for leadership (and how to respond)?

Increasingly complex social expectations. Climate change, social inequalities and pandemic are major and lasting shifts that impact corporate goals. Priorities, values, ethical standards and time scales are impacted. Stakeholders are diversified, intersectional and require new engagement strategies. Employees, future talent, and communities expect a visionary response. Financing, VC, rating, and compliance services are changing the way they rate and approach investment. In the face of this evolution, too often corporate brains and practices are still geared to growing shareholder value and short-term profit.

Trend to polarization and conflict. Hope raised by the end of the ideological age and the rise of technology to fix all things has turned out to be more complex. The “end of history” prophesied by Francis Fukuyama has made way to the implacable words of British historian William Toynbee: “History is again on the move”. A history of global and embittered competition between powers in a world of 8 billion people, a history of democracies losing traction against authoritarian leaders, and local populism in response to social stress, as well as significant cultural polarization. Refined risk/ opportunities’ analysis and a long-term lens are key competencies that corporates must have to thrive in this new normal.

Disruptive effects of Moore’s law are growing. In 1965, Moore observed that number of transistors on a microchip doubled every two years, whilst the cost of computers halved. This was confirmed in the 90’s when industry decided to invest to make the law continuously valid. This has been the driving force of a complete shift in human organization and life. Two billion people now permanently connected have put under significant pressure institutions tailored for the Industrial Age. These new connections between people have given birth to new forms of decision-making and leadership. Traditional leaders including politicians, media, teachers, and business are severely challenged by the e-mob. Leaders need new ways to capture intelligence and talent, which creates huge challenges for institutions and corporates with heavy processes and governance.

Reduced capacity for decision. An honest observer of global corporates could argue that intelligence and entrepreneurial spirit are diluted by "good intentions". Risk aversion and inertia are the loyal companions as well as the biggest challenge for large organisations. Too often, the cost of speaking up is seen as too high, paving the way for false harmony and the associated “everything-is-fine” management speak. An excess of easy data has opened a new pattern of “paralysis by analysis”. In recent years, the increase in regulated compliance is an aggravating factor. “Ticking the box” is often the result (“governance correctness”), as well as green/ gender/inclusion lip service, leading to unwitting reputation damage. Corporates cannot be successful in the average; a unique, imaginative recipe for profit is the only way to succeed.

Addressing such challenges means leaders must reinvent organisations they oversee. Helping in this is what advisory is made for. How might I help? I work with leaders to:

- Work with sharp and qualitative insights, i.e., holistic and disruptive views of what is happening. For reasons explained above, such contents rarely emerges from existing corporate systems.

- Take time to step out and think long-term.

- Aspire to a proactive, pioneering and no-taboo dialogue, key ideas, dysfunctions or causes for conflict surface quickly if well researched.

- Open up to think tanks practices i.e., big picture thinking, use of academic research, sharp skill for connecting thinkers and doers.

- Always start from the “physical” side of the business when contemplating the future, then consider financial performance and other compliance duties.

- Search and surface real drivers for risks and performance, be relentless with routine reporting.

- Create an explicit culture of “operations and resilience first” when conducting the change.

Responsibility for decision-making is rarely shared with others, it’s the honour and the servitude of leading in this new epoch.