The business models that have brought companies to the forefront of their industry are suddenly collapsing like a house of cards, while new technologies, demographic change, globalisation and other disruptive forces are coming. Consider, for example, how Nokia lost its market share in global mobile phone sales when Apple entered the market with its revolutionary design. And there are countless similar stories.
In order truly to lead an organisation across change, you need to reflect on sudden needs in your managerial approach as well. Be able to abolish established principles and adopt new ones. Here are three key changes you need to make to succeed.
A new role
Organisations may have a different structure in the future than they do today. For example, consumer electronics and home appliance companies may choose to transform their workforce in response to changing consumer trends. The result might be a reorganisation into 2,000 independent units, each with its own P&L, and employees being paid on a performance basis. This will change the role of the CEO, and top managers will have to manage more interdependent business units that respond to market forces. A role of "ecosystem director" could be created instead of "CEO". Likewise, other top managers could take on new roles and responsibilities to keep the organisation stable while making it more agile.
New identity
The second big shift for leaders is the need to disrupt their own identity. While traditional identities - for example "visionary" or "performance driven" - will remain relevant, leaders should consider and selectively adopt new identities, such as:
- Consumer: the customer experience can help you develop new and better ideas. Learn first-hand about how consumers use digital tools.
- Catalyst: Non-stop iterations in the innovation process can lead to the transformation of a company in terms of strategy, organisation and market presence.
- Scientist: Experimenting in creative ways and taking calculated risks can help you explore options to understand better the stormy environment and how to succeed.
New meaning
Purpose is now a key part of many companies' strategies: consider, for example, Facebook's mission to "give people the strength to build a community and bring the world closer."
Developing a common sense of what is inside and outside society is a powerful tool for shaping culture, managing innovation and creating a sustainable organisation. Creating a sense of organisation is one of the most important functions of a leader.
Leaders can consider the importance of their organisation through three dimensions:
- Personal: Individuals can gain functional and emotional benefits from products and services that are filled with meaning.
- Organisational: A strong sense of purpose creates tangible and intangible value for the organisation and its stakeholders.
- Social: The importance and purpose of your organisation can directly and indirectly affect society as a whole.
At this point, leaders have the opportunity to create a unifying vision that will drive the future success of their companies. Are you ready for a change?
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