Richard Chiumento, Director, The Rialto Consultancy.
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Organizational leaders are being tested like never before. From the global pandemic to business model disruption and talent shortages, every day seems to bring new challenges. In many cases, survival has been the name of the game.
But one of the big leadership questions going forward is "How can I continue to fight fires today while lighting the touchpaper for future investment and innovation?" To reposition and prepare for the longer-term world of work evolutions, leaders should consider two important factors.
The Major Areas Of Change To Focus On
Looking ahead for the year, organizational leaders are taking stock of what they've learned from a time of constant, urgent change and unexpected external developments. They’re also wondering how they can ride the next curve of demand. What are the major areas of underlying change that future-focused leaders can track, interpret and use as a driver of innovation and competitive advantage?
Societal changes mean the expectations and needs of customers and employees are evolving. Being ahead of the game will drive business resilience and growth, as well as ensure employers can be proactive in addressing skills and workforce challenges. Winning the retention and attraction game will always be important, but the rules and parameters are changing significantly.
What is value today?
So what can organizations do to create value for internal and external stakeholders? The answer starts with recognizing that the very definition of value is evolving. The focus will increasingly fall not just on what you do and what you deliver, but on the strategies you use to deliver it. For example, 84% of leaders believe that integrating ethics and values into decision-making will drive competitive advantage. This will mean constantly evolving the organizational culture so it embeds values and behaviors and hones people skills. The communication challenge—both external and internal—will intensify and require constant refresh in terms of content, tone and channels.
What role does technology play?
Understanding the opportunities associated with ongoing technological developments will be another pillar of longer-term planning. Organizational leaders will need enough technical knowledge to ask the right questions, identify the right providers and make the right investment decisions. During the 2022 International Labour Organization Regional Forum, Roberto Suárez Santos, Secretary General of the International Organization of Employers said that the pandemic's impact on business models is deeper than we may realize. Digitalization and AI adoption have certainly accelerated. Preempting the practical implications of this shape-shifting environment—on supply chains, business and workforce models—will be a common calling card of future-focused leaders.
The Factors That Will Contribute To Success
So how can forward-focused leaders hold a gaze on 2023 and beyond long enough to put the right planning methodology and internal capability in place? What habits, infrastructure and culture will create future value? Here are five common success factors.
• Building Future-Focused Networks: Cultivating a rich contacts ecosystem is a means of stimulating a future-focused outlook and generating new levels of unique insight that can be operationalized. This includes nurturing vibrant peer networks, strong links to external subject-matter experts and symbiotic relationships with new startups.
• Launching New Businesses: Taking that a step further, launching off-shoot startups is a source of opportunities for future growth and relevance. Many successful companies were founded in the depths of a downturn. In fact, "hatching new businesses" is one of the top priorities for CEOs globally, according to a recent McKinsey report.
• Creating Space: Long-term planning often takes a backseat when leaders are dealing with day-to-day emergencies. But successful organizations carve out the necessary space to take a breath and regularly review established perceptions and procedures. Innovation happens in the pauses. It also happens by listening to the wider workforce and customers through meaningful engagement.
• Fostering Game-Changing Teams: Making the most of longer-term developments requires a game-changing mindset across core business areas. This shines the light on the importance of gaining a deeper understanding of individual and team impact. This knowledge is a means of building complementary leadership strengths within groups, further ensuring the organizational antennae are tuned into longer-term opportunities as well as shorter-term imperatives.
• Using data, technology and greater intuition: Leadership teams will increasingly use bespoke data and AI to inform decisions and map out potential options and scenarios. Harnessing external expertise to make the most of technology-driven planning methodology is a vital first step forward on this journey.
Abraham Lincoln said "The best way to predict the future is to create it." This belief is more relevant than ever as organizational leaders readjust to a longer-term lens. While this is no easy task in times of challenging immediacy, these strategies are solutions for embedding a more future-focused mindset into your company.
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