unleashing disruptive leadership – carpe diem!...unleashing disruptive leadership – carpe diem!...

BirgitteEllersgaardMaryannBillington

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UnleashingDisruptiveLeadership–CarpeDiem!

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InsightsfromBirgitteEllersgaardandMaryannBillington,WavesPartners™

…Disruptivestrategycallsfordisruptiveleadership.Ifyouarefacinganunpredictablebusinessfuture,stiffcompetition,aculturallyandgenerationallyvariedworkforce,aconstantneedforchangeaswellaneedforadifferentwaytomanagechange,andavolatilecustomerbase,youmayneedleaddifferently.Learnmoreabouttheleadershipcompetenciesthatyouneedtofacedigitalization,globalmarkets,rapidinnovation,a“VUCA*”world,andhowtointeractwithemotionalintelligence.~WavesPartners*VUCA-Volatility,Uncertainty,Complexity,andAmbiguity

Atermthathasemergedtodescribeleadershipincurrenttimesis“disruptive.”Onthecorporatefront,thereisacallforleaderswhocanupsetordisturbthestateofanorganizationinordertocauseaggressiveinnovation,change,andtransformationinordertosurviveorgrow.Andwithincreasingnationalandglobaltensionsingovernmentsandtheenvironment,thenotionofleadershipduringtroublesomeandunsettlingtimesgivesrisetoleadershipOFdisruption.Ineithercase,leaderscannotbesuccessfulfollowingastandardformulaofbehaviorsprofferedinthepast.Disruptivestrategychallengessomeofthetraditionalleadershipcompetencies.Disruptiveleadershipcallsforleaderswhoareabletoenvisionboldly,thinkinnovatively,andlistenintenselytotheneedsofcustomersandemployees.Insomemarkets,leadershavetolooktoemergingneedsthathavenotyetbeendefinedorembracedandtakeriskstoadvance.Doesitsoundlikenonsenseoratrend?Thosewhoseekpredictabilityandconsistencymightthinkso.Thepowerfulimplicationisthatleadersmustdevelopandstrengthen

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innovativeandintuitivecompetenciesinordertosupportadisruptivestrategyandleadthroughturbulenttimesthatmaydescribetheworldforyearstocome.Someofthemosttraditionalcompaniesandindustriesarechangingexpectationsforitsleaders.ThenewChairmanoftheBoardofDanishshippingmagnateMærsk,JimSnabe,acontemporaryleaderwhenitcomestoleadership,sharedhisinsightsarecentinterview.HenotedthatMærskisknownbyitsvaluesforbeingoldfashioned.ThemottoinMærskis“dotherightthingrightandthoroughly.”HecamefromSAPandisChairmanoftheBoardofSiemens.Mr.Snabeclaimsthattheconditionofoperatingabusinesstodaycallsforagility,innovation,intuition,beliefandtrustinyouremployeesthroughdelegation,involvementofothersindecisions,andcouragetomakeharddecisions.Whatisthenew“disruptive”styleofleadership?Markets,technology,production,workforcehavealwayschanged.Thatisnotnew.Whatisnew?Itisharderforleaderstopredictoranticipatethenextsteporinitiative,coupledwiththerapidaccelerationofthetimeforinnovationandchangetotakeplaceinmarketsandtheorganization.Pressuretoconstantlyinnovateproductsandprocessesandtodisruptbyinnovationcausecontinualcyclesoftransformationandisadramaticchangeformanyorganizationsinprocess,technology,workforce,andoperations.Leaderscanlookintothecrystalballofthefuturetofindsolutionstothechallengesleadersface.Theanswersrarelyappearoutofnowhere.Experienceandhistorydoesnotoffersolutionstothecomplexandnewtwiststhatariseinbusiness.Solutionsareoftendiscoveredbypreparingleadersacrosstheorganizationtobeadept,innovative,andintuitive.And,inturn,theycanenableemployees,customers,andsupplierstobecomeapartofapowerfulsystemofinnovationandchangethatresultsfromdisruptiveleadership.Whyisthefuturesounpredictableandevenhardertounderstand?Fourfactorsinfluencethechallenge:market,technology,strategyandworkforce.

1. Rapidexpansionofnewglobalmarketsandplayer:Asia,Africa,CentralandSouthAmericaarenewpopulationsofcustomerswhoarefastmoversbecauseofthenexttwofactors.

2. Developmentofnewandrapidlyevolvingtechnologies(digitalization,socialmedia,artificialintelligence,drones,self-drivingvehicle,andyou-name-it):thereisintensecompetitiontogainaccesstomarketsandcustomers.Themiddleclassintheseareashasbecomemoreawareandeducatedthat,inturn,increasesdemandforservicesandproducts.Ifexistingindustriescannotdeliver,entrepreneurialproducerswillemergeintheseregions.

3. Thepaceofchange:expansionofmarkets,anddigitalevolutioncausetheredirectionofstrategyfororganizations.Leadership’sabilitytoconstantlyexaminethestrategicdirectionandadjustaccordingtoconditionsrequires

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courageandcreativity.Companiesinmanyindustriesalreadyhaveadopteddisruptivestrategiesthatcreatethepathforrapidchangeinorganization,products,processes,markets,ortechnologies.Asfarbackasthelate1980’sandtheinternetrevolution,companieslikeDigitalEquipmentCorporationwhichatonetimeemployedover100,000employeeshesitatedtoembracethedesktopcomputerandtheimportanceofsoftware.Inaveryshorttime,thecorporationmeltedintooblivion.Thepaceofchangeisnowmagnitudesfaster.

4. Thechangingexpectationsandcapabilitiesofworkersandconsumers:changesineducationlevel,needs,andexpectationsforcebusinessestoadaptstrategiesquickly.Socialmedia-drivencommunicationsexposebothworkersandconsumerstoideasandoptionsthatquicklygeneratemassdemandforchange.Thespanacrossmultiplegenerationsofworkersandconsumersalsorequiresvariedresponsesfrombusinesses.Mobility,flexibility,fast-cycledevelopment,challengingtasks,balancebetweenworkandprivatelifearefactorsthatthatworkersexpectindifferentwaystosatisfyneedsofuptosixdifferentgenerationsintheworkforce:GenerationZnewcomers(born1996andlater),MillennialsandGenerationY(born1977-1995),GenerationX(born1965-76),BabyBoomers(born1946-64),andinsomecasesTraditionalists(born1945andbefore).

Whatareattributesofdisruptiveleadership?Toenvisionthedisruptiveleadershipstyle,considerthesemodels.Thebasicfourcomponentsofleadershiparefundamental,explainedasfollows:

1. Aleaderbringspast-acquiredskillsandknowledgeintheirbackpack,essentiallytheirexpertise.Dependingonthelevelandfunction,thedesiredbusinessknow-howmayvary.

2. Theactionstakenbyleadersarethedrivingforceforprogress.Mostleaderstakeactionsbaseduponthebusinessconditionsandoftenareshapedbytheknowledgeandexperiencestheyhavecollectedthroughouttheircareer.Theactioncanbetodeferordelegatetoothersortoapplytheirexpertisesuchasleadingimplementationofleanmanufacturing,usinganenterprise-widesystem,ormarketexpansionbaseduponproduct/processknowledge.Decision-makingstylescanemergeasinclusiveorcommanding,maintainingorexpanding,orotherpracticeswhichhaveanimpactontheorganization’sfuture.

3. Leadershipishowyoubringyourpersonaltraitsandvaluestolife.Leadersarethoughtleaderswhoarestrategicandcommunicateprolificallytoallstakeholdersinanorganization’ssuccess.Thestyleisoftentheresultofcharacter,experience,industry,self-awareness,anddevelopedcompetences.

4. Theroleofaleaderpresumesthathe/sheleadspeople–employees,otherleaders,andpartners.Theirinteractions,orrelationshipwithothers,arerepresentativeofthegoalsandvaluesofthecompany.Leadersinfluencebothinternalandexternalpeoplesuchascustomersorclients,shareholdersandthepublictoproduceandacquiretheproductsandservicesthatenablesuccess.

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WavesPartnershasdevelopedagaugeforleadershipconsistingof24competenciesandadevelopmentplan.TheCompetencyGauge™allowsforvariabilitybycompanyneedsandcanbeusedatallleadershiplevels.WavesPartnersfacilitatesaprocesstobuildacompetencyfootprintthatreflectsthebusinessstrategyandinformsleadershowbesttoexpandtheirinnovativeandintuitivecompetencies.Inconcertwithastrongchangemanagementapproach,ourclientssharetheattitudeofCarpeDiem**.WavesPartnershasthetoolsandprocessestonavigatethesewavesofchange.**CarpeDiem[LATIN]“SeizetheDay”:trustinintuition;learnhowtotargetintuitiontowardsinnovativeopportunities;andleadcontinuitythroughdisruptiveinnovation;anaphorismfoundintheRomanwriterHorace'sOdes.

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Howdoleadersworkinconcertacrossrolestoexertdisruption?Thismodeldemonstrateshowcompetenciestranslateintotherolesandresponsibilitiesthatleadershaveacrossthedifferentlevelsoftheorganization:

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Whatkindsofexpectationsaretherefordisruptiveleadershipatthedifferentlevels?TeamLeaders(level1):atthislevel,themostimportantfunctionistounderstandthestructureandgoalsforthecompanyandtomotivate,delegate,andinspireemployeestoperformaccordinglybychangemanagement:Howcanteamleadersundertakedisruptiveactions?

• Theworkforceconsistsoffivegenerationsfromteens(Z)totraditionalistsover70years-old.Theyhaveverydifferentexpectationsaboutthetaskstheyprefertoperformandhowtheyaremotivatedtodoso.Theinteractionstheyseekfromtheleaderinperformingthetaskcanvarygreatly.Theteamleaderhasanopportunitytoviewthestructure,tasks,androlesofteammembersincreativewaysthatmaximizeworkerperformance.

• Theworkforcehasdiverseculturalnormsandethnicbackgroundsthatoftenmakeitdifficulttoconformtoaparticularwayofdoingthings.Ifteamleadersdevelopthecapabilitiestobeopen-mindedandculturallyaware,adaptingtosuchvarietycanenhancecreativity.

• Digitalizationincreasestheopportunitiesthatteamleadershavetoeffectivelyusenewtechnologytodisruptprocesses.Thechallengeforteamleadersistoembracetechnologywithoutdemotivatingemployeesandincreasingdissatisfactionamongemployees.

Directors/VicePresidents(level2)leadimplementationofthestrategy.Leadersatthislevelarethosewhomusttranslateaneworadjustedstrategyintoastructureandprocessthatcorrelateswiththeirfunctions.Whenrealityismoreunpredictableandchangesfasterordiversely,thislevelofleadershiphastoadaptquicklyandimplementchangesinatrustworthyway.Theseleadersmustbeabletounderstandandexecutethenewstrategyaswellascommunicateclearlywhychangesareneededandmotivateotherstorespond.Whataredisruptiveopportunitiesfortheseniorlevelofleaders?

• Theymustbeexpertsinimplementationandbeabletotranslatestrategyquickly

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intooperatingplans.• Ahighleveloftrustworthinessandpersonalintegrityiscriticaltoexecute

changesthatresultfromstrategicdisruption.Becauseofthislevelofleadership’spositionbetweenthestrategy-makersatthetopandthehands-onproducers,theyaretheconduitforchangeandmusthavedualcompetenciesforinfluencingupanddown.Asaresult,theymighthavetoreactneutrallytowardnewideasaswellastakerisksandhavethecouragetodisruptstandardwaysofoperating.

• Themiddlegroundtheyholdrequiresthattheylisten‘downwards’and‘upwards’andhavecouragetosayeitheryesornoineitherdirection.Directorsandvicepresidentscanalsoleadinthestateofdisruptionthroughcollaborationandideationthattranscendsalllevels.

• Theactionstakenbythislevelrequireananalyticalprocess.Theybalanceconstructivecritiquefromallanglesanddecideindependentlyhowtoactbaseduponthecredibilityofthecritic.Theseleadersoftenactonintuitionaswellasparameterssetbydataandfacts.

• Becauseoftheirplaceintheorganization,theseseniorleadersarewellpositionedtoadjudicateinnovationsthatdisruptcurrentpracticeseffectively.

TopLeadership–C-suite(level3)designsandformulatesstrategy.Leadersatthislevelareoftenconstitutedasgroupmanagementacrossallthebusinessfunctions.Theirrolesincludetheresponsibilitytooverseethebusinessastheultimateleadership.Theyareinacontinualsearchfornewpartners,opportunities,markets,andbusinessmodelsthatactualizethestrategyoftheorganization.Theseleadersassumeultimateaccountabilitytothegoverningboardfortheorganizationandshareholdersatalllevels–customers,employees,partners,investors,andthecommunity.Inwhatwaydotopleadersembraceopportunitiestodisrupt?

• Themostaccountableleaderscandeveloptheircompetenciestobebusiness-andinnovation-agile.Theabilitytolookbeyondpastandcurrentsuccessformulas,seeknewpathsandproducts,welcomethepossibilitiesbeyondwhatisfamiliar,andpreparestakeholdersforchangesareactionsthatcanpropelanorganizationforward.

• Whileleaderssometimescanbecomemiredindecisionsthatgeneratetoday’sperformance,itisincumbentonthemtobecuriousaboutthefutureandperhapstheunknown.Imageryoftenportraysthesenior-mostleadersonthetopofamountainthatisintendedtogivethemthevantagepointtoviewfaraheadonthehorizon.Metaphorically,thatpeakmayincludetheabilitiestosee,imagine,hearothers,intuitandeventuallytranslateintothefuturefortheorganization.

• Agoodtop-levelleaderisalsoanexcellentcommunicatorwhoarticulatesthefutureandenliststhesupportofthefunctionalexpertstobuildastrategytomoveforward.

• Giventheneedtogobeyondtheorganizationalcomfort-zonewithinnovation,asuccessfuldisruptiveleaderknowshowtobecourageousenoughtoconfront

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therisksassociatedwithuncertainchangesanddestinations.• Themostseniorleadersaretheoutward-facingmembersoftheorganization.

Theyarethebridgetothefutureandtoallwhobenefitorlosebecauseoftheorganization’sexistence.Theseleadersnotonlycreatethevalues,theymodelthevalues,behaviors,andtransactionsthatdefinethebusiness.Inthefaceofdisruption,thetopleadershavetobecognizantofeithermaintainvaluesinthefaceofchangeorredefiningandadoptingbehaviorsthatcanacceleratebusinessperformanceinthenewdirection.Themostsuccessfulexecutivesarethosewhoaretrulypassionateaboutthepurposeofthebusinessandcanmotivateotherstojointhem.

Whatcompetenciesprepareleadersforunpredictability?Whenwesetouttodriveinavehicletoapre-determineddestination,therearerulesoftheroadtominimizeunpredictability.Signage,speedlimits,operatingtechniques,regulations,andcourtesieshelpmostdriversanticipateactions.Onoccasion,uncertainweatherconditions,erraticdrivers,orotherincidentsdistractusfromwhatweexpect.Leadersofbusinessesaremoreliketheearlierexplorerundertakinganunmarkedroutewithnoideaofwhatliesahead.Decisionsaremadeinthemomentwithbothanalyticsandintuitiondeterminingthepathforward.Leadershipcompetenciesthatariseascriticaltotheexploratorypathforwardincludetrust–ofyouandyouofothers,flexibility–changeinthemoment,agility–conditioningtoadaptquickly,communications–thinkingfastonyourfeet,courage–transparencyandthoughtfuljudgmentwhenconfrontingtheunknown,aswellasself-awareness–knowingyourownstrengthsandlimits,andopenness-tonewideasandlearning.Whilethesecompetenciesareconsideredaprerequisiteforleaderstobecomerolemodelsandmotivepeopleduringtimesofinnovationandchange,theyarealsoamongthemostdifficulttodevelopandmeasure.Inaperiodwithalowerlevelofpredictability,leaderscanseektodevelopandmasterthefollowingcompetencies.

Inrelationtoworkforce

• Involvement:inclusionofinputandcompetenceofothersindecisions

• EmotionalIntelligence:considerationofcultureandemotionalimpactonothers

• Talentcapture:recruitmentofcreativeandresilientemployees

• Changemanagement:guidanceforsuccessfuladoptionofchangesbyemployees

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Inrelationtoorganizingwork• Creativity:developmentofsystemstoencourage

creativityinallfunctions• Systems:designforefficientwaysoforganizingwork• Digitalization:implementationofdigitalprocesses

andmodel• Changemanagement:instillmentofamindsetthat

changeisaconstantoccurrence• • •

Inrelationtostrategy• Agility:cultivationofmood,

psyche,andtoolstoshiftstrategyfast• Intuition:trustofintuitionandas

wellasfactsanddata• Assimilation:captureandanalysis

ofinputfromsourcestocertaindirection• Changemanagement:inclusion

oftimeandchangemanagementpracticesinthestrategyPreparefordisruption.

Thingsarechangingfast-incrediblyfast.Whatwasimpossibleyesterdayispossiblenow.Markets,whichwereofnointerestyesterday,arevaluablenow.Thewavesofcommerceonceflowedwesttoeast.Now,withchangesinChinaandAsiancountries,thewavesofcommercealsotraveleasttowest.Citizensincitieswithmillionsofpeopleinthewestareabletobuy‘whatever’theyneedorwant.TheUnitedStates,onceacentralsupplier,isinatransitionwithanew,lessglobalpoliticaladministration.InAfrica,thepotentialforbusinessisgrowingsouthoftheSaharawherethemiddleclassofpeopleisgrowingwithabetter-educatedpopulation.IncitieswithmillionsinChina,thedemandforgoodsandservicescontinuestorise.Ifthewesternindustriescannotdeliverinnovatively,theywilllosenotimeentrepreneuriallydoingitbythemselves.

ChangeManagement,changemanagement.Whatisconstantacrossalllevelsofresponsibilityandaspectsofthe

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strategy,theoneconsistentcompetencyis“changemanagement.”Changemanagementstartswitheachindividualleader–theabilitytoadapttonewcircumstancesquicklyandactasarolemodel.Theneedtotransformcontinuesbeyondtheindividualintotheorganizationthatcallsforasystematicwayforchangetobemanagedinallfunctionsintheorganizationandtobeadoptedbyothers.Withoutchangemanagement,disruptionwillbechaosratherthanopportunity.Theunderlyingcausesofdisruptionaretheleadershipleversformanagingchange.Thedescribedcurrentssummedupincludethesefiveareasoffocusthatrelyonthecompetenciesidentifiedabove:bepreparedforVUCA,envisionbusinessonthedualscaleofglobalandlocalimpact,graspthedigitalrealmanditsimpactonthespecificbusiness,cultivatethecapabilityforemotionalleadership,andcreatestrategyimbeddedinaworkenvironmentthatencouragesrapidinnovation.

• CarpeDiem!WavesPartnershasworkedwithleadersandindustriesaroundtheglobefordecades.Theevolutiontowardstheleaderforthemid-21stcenturyneedsanarrayofcapabilitiesincludingbusinesssavvy,creativity,innovation,change,collaboration,self-awareness,emotionalintelligence,andinclusionofmulti-culturalandmulti-generationalworkers,customers,andstakeholders.Keenawarenessofopportunities,competition,andallotherfacetsofbusinessarereflectedintheLatincharge:CarpeDiem!Seizethedayandtheopportunitiesandneedsforthefuture!WavesPartnerscanhelpleadersoforganizationseverywherepreparetodisrupt!AccordingtoresearchbyconsultingfirmKPMG,businessesthataren'tthinkingabouttransformationareallbutirrelevant.BusinesstransformationcanmeaneverythingfromamajorshiftinITsystemstoalarge-scaleinnovativeconstructionprojectorchangestobusinessmodelsandproductdesigns.-ForbesInsights(November2014)