Leading the future through innovation
In an era of unpredictable change, organisations now more than ever need to accelerate efforts to continue to grow
Organisations are in constant flux. Recent research conducted by consulting house McKinsey and Company, states that 60% of global executives have experienced an organisational restructure in the past two years, according to Henra Mayer, a TT100 adjudicator, head of faculty for Innovation at the Da Vinci Institute and CEO of Innocentrix.
“It is also true that very often, by the time the restructure is complete (typically within 18 months), external conditions have changed again and the freshly redesigned organisation is not optimally positioned to deal with these new challenges,” says Mayer.
“This constantly moving target literally dishes out death sentences across industries as barely half of top performers sustain their leadership position over the course of a decade. Organisations these days need to run twice as fast just to be relevant.
“In an era of unpredictable change, organisations now more than ever need to accelerate efforts to continue to grow. The organisations creating the future know how to excel and it is these organisations that understand how to manage for innovation and impact.
“In the business of yesteryear, C-suite executives decided on a course of action they deemed most beneficial for the organisation and they based those decisions on years of experience and know-how. At the bottom employees executed the plan, while middle management was tasked with making sure that no one deviated from the plan, taking on a quality assurance role to measure quality and output.
“It is clear that leaders today need to manage from a different perspective than even a decade ago. The role of the leader is evolving, and it is asking leaders to be agents of change and aggregators of opportunity. The pressure on leadership teams has never been greater and an understanding of how to lead teams into the future, and doing so with remarkability is becoming a finely-tuned skill.”
Mayer reports that according to Jared Lindzon in an article entitled for Fast Company, an entirely new value system is beginning to emerge for the leaders of the future, one that will continue to grow with the rise of new tools like artificial intelligence, robotics, and automation. A new premium is being placed on leadership that not only has the understanding for the importance of managing innovation and change, but one that has the capabilities and skills to really see it through.
Ernst & Young’s (EY) global chief innovation officer, Jeff Wong, says that leading companies are starting to think beyond revenue and profits. He is of the opinion that the organisation of the future will no longer select leaders based on their management experience only, but that some of the following traits will become of far greater importance when deciding on a suitable leader for the organisation.
“While leaders of the past were often tasked with executing predetermined strategies, increasing efficiency, and improving pre-existing processes, one of the most valuable assets of future leaders are their willingness and ability to create something entirely new,” says Mayer.
“As industries, processes, and business models are reinvented by disruptive technologies, the most valuable leaders of tomorrow are those that can shape the impact of those changes, rather than react to them.
“Chaos has become the new normal and although we understand that change is the only constant in the modern business landscape, it remains uncomfortable and downright risky at the best of times. Leaders of the future must not only be able to navigate chaos, they must reinvent tradition to better allow organisations to adapt and excel.
“While the leaders of tomorrow won’t necessarily need to be the ones writing code, experts suggest that they will at least be required to demonstrate a robust understanding of the capabilities, applications, and future potential of emerging technologies. The increasing role of technology across all spheres of business is placing IT staff at the centre of innovation teams to help the organisation make sense of and evolve to new, more fluid business models.
“Many a discussion speaks to the disruption and opportunity potential brought to the workplace by artificial intelligence. This places the spotlight right back on the human side of work. Machines cannot be held accountable for results, foster trust and build strong relationships that deepen the impact of innovation outcomes.
“Trends lately highlight the power of strong relationships, collaboration and co-creation. To make that work you need to understand and be able to motivate people. Emotionally intelligent leaders are the ones that will ultimately thrive in this new reality.”
Mayer contends that with the increasing influence of technology on businesses both within and beyond the tech industry, the most effective leaders of tomorrow will understand how to delegate between humans and machines in a way that maximises the capabilities of both.
“According to Wong, some look at emerging technologies with fear and anxiety but the best leaders love the benefits of the two working together. He says the best leaders ‘love AI, they love bots, they love anything that makes them better, helps them make better decisions, and helps them see things more clearly’.
“The tt100 Business Innovation Awards has become the country’s foremost Business Awards programme for innovation and technological prowess. For the past 27 years, the tt100 has been emphasising and recognising these traits in leading South African organisations.
“The key drivers which determine the potential for these organisations to maintain and improve their competitive advantage are depicted in the TIPS framework, which is used to adjudicate entrant companies. In alignment with the above message on future leadership, the framework considers participant’s performance in the Management of Technology (MOT), the Management of Innovation (MOT), the Management of People (MOP) and the Management of Systems (MOS).
“Over the years, this process had been refined to the extent that organisations now use the metrics to manage and lead their operations” says Mayer.
She contends that in linking and integrating the above domains with each other local leaders are gearing for the future by demonstrating the following:
Being Agile they are integrating the dynamics of the management of technology and the management of innovation such that as the organisation develops, improves and adapts its technology needs, appropriate amounts of innovation are applied to generate real market value and profitability.
Being Aligned leaders are integrating the management of technology and the management of people by ensuring that the organisation upskills (by acquisition or development) the appropriate human capabilities to match and ideally exceed the technological needs at any one time.
Being Engaged the management of people and the management of innovation are being integrated by way of evaluating the commitment and motivation of people at the workplace, which is measured in terms of the total incentive cost within the organisation.
The future will not be created in isolation, according to Mayer.
“It is no longer about the genius, experienced leader. The workplace of the future will be sustained through collaboration and the integration between innovation, technology and people.
“It is evident that innovation in the next economy will be
about much more than only invention and the mastering of new skills.
“According to Robert B Tucker in Six innovation leadership skills everybody
needs to master for forbes.com, the future will require us to enhance our abilities to learn, to unlearn and to possibly relearn, but it will also require the ability to bring people together and to build communities that extend to ecosystems that in the end sustains innovation - and this requires remarkable leadership,” emphasises Mayer.
LEADERS OF THE FUTURE MUST NOT ONLY BE ABLE TO NAVIGATE CHAOS, THEY MUST REINVENT TRADITION