How can CEOs disrupt the status quo and create a new path?
Over the past 20 years, we have seen the pace of innovation accelerate. The information revolution and free trade movements have drawn many people into the global economy, creating powerful new economic flows.
However, the 1920s upended the economic logic of business as the global pandemic heralded our entry into the new decade. Moreover, the tensions caused by the pandemic have exposed the conglomeration of other disruptive forces that have been building for years: both radical advances in technology and innovation, and serious challenges to our economy, political stability and climate.
In Saudi Arabia, 70% of senior executives believe that the frequency of disruptive forces will continue unabated or even increase over the next two to three years, according to the recently released Middle East Disruption Index by AlixPartners.
So how do businesses respond to disruption when the entire planet goes into lockdown overnight?
Building on the forces of change is the right way forward, especially by taking the necessary and swift actions before losing the power to determine one’s destiny. The overall environment may not be under anyone’s control, but how you react and how fast you react.
The Saudi government is leading by example, responding by staying at the forefront of innovation, demonstrating speed, agility, foresight and an action-oriented approach in defining and bringing Vision 2030 to life.
Effectively supporting this vision while simultaneously addressing the challenges of the disorder requires outstanding leadership and a culture of care. The latter, of course, follows from the former. But what leadership skills are needed to transform an organization to cope with disruption and be successful?
You annoy yourself
Business leaders must have the courage to abandon tried and tested business models that are rapidly falling apart, even when they seem challenging. They should question all assumptions and make the tough decisions now, because they will only get more painful with time.
It must be simple. The ability of individuals and the organization to focus on multiple priorities is limited, so they must chart the vision of disruption, and therefore disruption.
Stay fit digitally
Digital is not something we do. We must be who we are. Digital capability will soon be the foundation of all successful businesses everywhere. Like the cellular respiration of biological organisms, digital must enter the company’s metabolism. It cannot be something in one department or outside the central organization, rather it is the cornerstone of the organization and everyone’s responsibility.
For businesses to thrive, leaders need to focus on the business problem, not the technology. By focusing on a business problem, leaders can identify the technology support needed and create a manageable, scalable program with a measurable return on investment.
The future-proof workforce
These large corporations or human capital programs need to start building the workforce the business needs for what it has. And they need to think broadly about all areas of people, not just top managers or elite talent, but all talent. Different skills must be acquired in atypical contexts with training programs adapted to the skills required by the future company. Many of the jobs that need to be done have never been done before, so we can’t always expect to find experienced workers to fill roles.
It’s time to leverage the creative strengths of leadership teams while leveraging technology as a talented collaborator, not a substitute. Future employees will need to be increasingly digital and receive the necessary tools and training to keep up with the times. A company’s workforce is its greatest asset. Investing to make them thrive will be key to weathering this disruption.
You need speed
Leaders need to adopt an active mindset: plan less, do more. A robust disturbance response plan implemented quickly and rigorously will consistently outperform a perfect and poorly executed plan. Leaders must learn to iterate and develop plans as they gain experience and knowledge. If something doesn’t work, they should ask why, then troubleshoot and redirect.
change management
Three essential skills for a leader: flexibility, adaptability and emotional intelligence. And it should start with CEOs: how they lead, the types of leaders they hire and promote, and the processes and outcomes they reward. So you have to reach out to the management team and the rest of the organization.
Bottom line, leadership, by definition, requires followers. If leaders don’t inspire and guide others on their journey, every transformation will fail.
The 2020s decade is filled with promise, but that promise is anchored by the most turbulent expectations we’ve ever seen. The winners of disruption are only those who embrace the new normal and who are truly disruptive.
• Gabriel Chahine is Middle East Director at AlixPartners.
Disclaimer: The views expressed by the authors in this section are their own and do not necessarily reflect the views of Arab News
