Unleashing Disruptive Leadership – Carpe Diem!...Unleashing Disruptive Leadership – Carpe Diem!...

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Birgitte Ellersgaard Maryann Billington 1 Waves Partners TM / Copyright 2017 Unleashing Disruptive Leadership – Carpe Diem! Photo: A.Billington 1 Insights from Birgitte Ellersgaard and Maryann Billington, Waves Partners™ …Disruptive strategy calls for disruptive leadership. If you are facing an unpredictable business future, stiff competition, a culturally and generationally varied workforce, a constant need for change as well a need for a different way to manage change, and a volatile customer base, you may need lead differently. Learn more about the leadership competencies that you need to face digitalization, global markets, rapid innovation, a “VUCA*” world, and how to interact with emotional intelligence. ~ Waves Partners *VUCA - Volatility, Uncertainty, Complexity, and Ambiguity A term that has emerged to describe leadership in current times is “disruptive.” On the corporate front, there is a call for leaders who can upset or disturb the state of an organization in order to cause aggressive innovation, change, and transformation in order to survive or grow. And with increasing national and global tensions in governments and the environment, the notion of leadership during troublesome and unsettling times gives rise to leadership OF disruption. In either case, leaders cannot be successful following a standard formula of behaviors proffered in the past. Disruptive strategy challenges some of the traditional leadership competencies. Disruptive leadership calls for leaders who are able to envision boldly, think innovatively, and listen intensely to the needs of customers and employees. In some markets, leaders have to look to emerging needs that have not yet been defined or embraced and take risks to advance. Does it sound like nonsense or a trend? Those who seek predictability and consistency might think so. The powerful implication is that leaders must develop and strengthen

Transcript of Unleashing Disruptive Leadership – Carpe Diem!...Unleashing Disruptive Leadership – Carpe Diem!...

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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)