Soft is hard and hard is soft

Beyond the Bottom Line

A boss tells his employee: “I am promoting you to vice president. The company has two vice presidents, so you will be the third one.”

The employee is confused and asks: “What does the third vice president do?” The boss replies: “Nothing, but you will look important.”

This would have worked many years ago when positions and titles were important to many. The recent report and surveys indicate that many young millennials, especially Gen Z, no longer care for positions and titles that much because their needs and priorities have changed.

I attended the World Business Forum held in New York for many years. The big names were there. Tom Peters, Jim Collins, Jack Welch, Arianna Huffington and many others. This pattern got interrupted only when the unannounced and unwelcomed pandemic came. What got my attention is that all these big guns in business and leadership were mouthing the same. Not only that, but the business books I read carry the same tune. Essentially, they said, “Today, soft is hard, and hard is soft.” Meaning while hard skills are still important, never has the need for soft skills training needed as much as it is today.

And while our local speakers, trainers and consultants were sounding the alarm and announcing the coming of the Fourth Industrial Revolution. They were referring to the businesses being taken over by automation, robotics, artificial intelligence, etc., these experts in New York sounded the alarm for the need to retrain, retool and upskill leaders on their “soft skills.” The advantage I had over the many participants is that I was allowed to interview these “rock stars” of business. I have conversed with and interviewed Seth Godin, Malcolm Gladwell, Adam Grant, Simon Sinek, Marcus Buckingham, and even famed biographer Walter Isaacson. Thus, I can dig deeper into their views and extend an invitation to have them come and give a conference or two for our local business leaders. Typical with attending conferences, I took notes to reflect on it. Study the context of how applicable their thoughts and ideas would be in the context of our local business scenario. If relevant, I would share these ideas (with proper credit attribution and permission, of course) with my clients. Then spend a few days shopping, go home and then suffer jet lag.

There was enough leisurely time to adjust to the new needs and developments, and it may take me time to convince clients that they should shape up, update and upgrade their leadership training and development.

And then COVID-19 happened. This Black Swan of an event. By the way, I cannot resist this. Still, I identify a “Black Swan Event” as a highly improbable and unpredictable event with severe consequences explained by Nassim Nicholas Taleb, which was not seen nor predicted by business experts, economists, and feng shui experts. And then everything changes. Even the need to retrain and reskill our leaders no longer have the leisurely availability of time to slowly adjust and transition to the new reality we have today. Many companies realize this as they have to shelve their traditional “management framework” or “leadership framework” training, as many of the principles no longer apply.

Leadership skills are crucial in today’s business world, especially in light of the numerous challenges faced by companies. McKinsey states that “the soft stuff” is key, as people and culture make up 72 percent of the barriers to success. MIT Sloan School of Management research found that a 12-month work force training program focused on soft skills delivered a 250 percent return on investment within eight months of completion.

However, with companies facing a succession of “once in a generation issues” like rising costs, geopolitical turmoil, and digital transformation, these leadership skills must be taught at all levels of the organization.

In 2023, leaders must also grapple with challenges such as mental health and well-being, remote and hybrid workforce, diversity and inclusion, staff retention and recruitment, climate change, and cybersecurity. But it’s not all doom and gloom - leaders can also find opportunities in these challenges.

One of the most critical skills a leader can have is adapting and staying ahead of the curve. As the famous management consultant Peter Drucker once said, “Management is doing things right; leadership is doing the right things.” There is not much time to spare.