In the new economy, which TomorrowToday.biz refers to as the 'Connection' economy, the competitive advantage will be secured through the ability to attract and retain talent (the 'Bright Young Things'), as well as through authentic relationships both inside and outside of one's business.
Friendly, smiling PR fronts will no longer suffice and will need to be replaced by an authentic, quality relationship, emanating from deep within the business and all that spills over in the dealings with clients, customers, suppliers and in fact the entire company network.
This reality will demand a very different type of leadership to the old 'command and control' to which we have become accustomed, not only in business, but throughout educational institutions too. The next big challenge of leadership will be that of control. Learning to relinquish control that is!
There are some clear and obvious factors for asserting this...
We live in a connected, networked world. Disregard for others will come back to haunt one and the science of the day (quantum physics) teaches us that in this environment, relationships are key. That is the new reality. The new skills which leaders will need, will be those which allow them to foster, nurture, grow and develop relationships. Attention will shift from focus on the organisation's form as it relates to its tasks, to its capacity for healthy relationships. For years the accepted definition of management was, 'getting the work done through others' where the emphasis was on the 'work'. Now, using the same definition as a marker, the emphasis will shift to the 'others'. "No leader can hope to lead by standing outside or ignoring the web of relationships through which all work is accomplished" writes Margaret Wheatley in Leadership and the New Science. For the controlling leader, leading in this direction will simply not be possible.
There is a new generation in the workforce, commonly referred to as 'Generation X'. This segment of the population don't resemble the preceding generation (the Baby Boomers) at all. Living off a different value base they have a fundamentally different approach to teamwork, relationships, work, communication, information, training and just about every aspect of the work environment. This has already caused a great deal of anxiety for their Boomer bosses who need to attract, retain and lead these 'bright young things'. Leading from memory on this front is a sure recipe for disaster and by doing so, failure is guaranteed. Leaders will have to work at understanding the different generations in order to mould a suitable and appropriate leadership where it is no longer merely style that counts, but character.
The old paradigms that shaped the context and content of work are changing and in many cases, have changed. Several convergent forces, including technology, globalisation, the massive downsizing of the 1990's, as well as trans-Atlantic mergers and the well documented crisis in the moral character of several prominent large corporates, have all served to create a gap for new business models and ventures. Leadership in fragmented, merged and diverse organisations can no longer be practised in the manner it was in the past. New ways have to be found for the new context.
Innovation will become a key to survival. Every company will need to ensure that innovation is part of its very DNA. In the past there have been some grave misconceptions that have distorted our understanding of innovation. For instance, that to innovate what was required was 'radical innovation' or, that innovation came from the 'top' of the organisation. Both are false and damaging assumptions. Authentic innovation is incremental and the role of leadership, is to create the environment in which the culture of innovation can breathe and flourish. Innovation demands embracing diversity and diversity requires, 'democratic' leadership. Controlling leadership will act as nerve gas to innovation and prove to be fatally toxic. To engender innovation in order to survive and thrive in today's emerging tomorrow, control will need to give way to a new type of leadership.
Leadership in this fast emerging economy will require new mindsets and different tools. The migration from 'Controller' to 'Collaborator' will not be easy. In fact it will be beyond the capability of many, maybe even most. But without this transitional journey, leaders will not survive the new frontiers of the 21st Century. Of that I am certain.
TomorrowToday.biz is a group of consultants that help people and organisations make the transition to the connection economy, which largely involves people development.
For further information contact or visit www.tomorrowtoday.biz.
Keith Coats is a founding partner in the consultancy TomorrowToday.biz, where he is the Director of Storytelling. He has lectured in Leadership and Management at the Natal Technikon, is a fellow of the Salzburg Seminars and a sought after international speaker on leadership and human development issues. In this three part series, Coats unpacks how companies can arrive in tomorrow's world with all the requisite skills to survive, succeed and lead in the new economy. This is the third and last column of the series.
