In this rapidly evolving digital & tech-driven world, it is imperative for leaders to have a strong understanding of technology and its impact on the business. The capability to leverage technology to improve processes, increase efficiency, and drive innovation has become a foundational leadership competency.
The digital economy is highly competitive, and leaders must be able to attract and retain the best talent in order to stay ahead of the curve. They will need to foster a culture of innovation and collaboration, as this will encourage creativity, new ideas, and collaboration among employees.
All these will require leaders to make a set of big shifts:
1. From “know-it-all leaders” to “learn-it-all” mindset
Leaders will need to build their learning mindset. As technology is constantly advancing, they must be able to quickly learn & adapt to the latest developments. They should also be open to learn from anywhere and from anyone – even from the latest new Management Trainee hire!
Leaders will need to step back and start thinking from zero: Does one have the right roles? The right people? Is one focusing on the right things?
2. From “efficiency first” thinking to “Human First”, while building products or digital solutions
Because what is human first is more long-term, sustainable, and designed with the consumer or colleague at the heart of the business. Human-centred thinking focuses on the consumer of your products & services, their needs & requirements by applying human factors & ergonomics. Effectiveness & efficiency would be natural outcomes of such an approach.
Leaders also must respect the trust each customer is placing in the organization with their personal data.
3. From “short-term execution focus” to “long-term exploration & reimagination”
Fostering a culture of innovation is essential in a digital and tech-driven world. Leaders will need to set aside time & resources, where daily operating pressures are given a pause and execution orientation is replaced with ideation. Openness to welcome any and many new ideas as possible, by suspending opinion, is key. Once all ideas are in the top, few viable ones should be sponsored for consumer tests or feedback.
Leaders will have to reassure the teams of their importance in shaping the future. Connect their purpose to the company’s purpose; make sure they can contribute and be a part of the solution; help them develop the skills, give time & resources required to build the differentiating capabilities.
4. From incremental improvements to new models of doing business
Leaders today are recognizing the need to shift from incremental improvements to entirely new models of doing business. This involves embracing innovation and taking calculated risks to disrupt traditional ways of operating. A new model of doing business could involve embracing digital transformation, investing in new technologies, and leveraging data to drive decision making. It may also involve rethinking organizational structure, culture, and the way work is done.
Leaders who embrace this shift and new models of doing business are likely to see increased efficiency, improved customer satisfaction, and greater profitability. However, the transition to a new model can be challenging and requires leaders to be adaptable, visionary, and willing to take bold steps in uncharted territory.
5. From only “perceptions & gut feelings” to “gut & data”
As leaders, normally we are out there and we get to hear various views, stories and feedback from our meetings, field visits and open houses and many other internal & external forums. While these are super important channels, leaders must push their teams to give more data-driven analytics to support their views. As the business environment becomes more complex and competitive, data-driven decision making helps leaders to stay ahead of the curve and make informed decisions that drive success.
Leaders with strong understanding of big data and analytics, will make more informed decisions. Yet, there will be times when one has all the data, but it’s the gut that one will have to listen to. Of course, after you have seen all the data or when time is of essence & you simply can’t wait to get all the data!
6. From leveraging technology for just profits to making it work for sustainable future
Leaders will need to think beyond the next quarterly results or yearly financials or company valuation, to what value their investments in technology & digitization are adding to the larger ecosystem which they operate in. How is it bringing long term value and happiness to their consumers or partners? The impact of technology on the environment could be both positive or otherwise. The positive ones are obvious and near-term, leaders must have the foresight to evaluate the long-term impact on the environment, society & local communities that they serve.
Also, some of today’s problems are such that no single entity can solve them on its own. The only way for companies to thrive in this disruptive age is to work with ecosystems and harness the capabilities that others have built to deliver their own value propositions—and do so at speed, at scale, and flexibility.
Leadership in a digital and tech-driven world is a complex and dynamic challenge that requires a reset and disruption of existing leadership skills and strategies. Leaders must learn more, build a shared purpose, be human-first, form partnership across a network of players, foster a culture of innovation and collaboration, and have a strong understanding of data and analytics while being humble to understand the limitations of technology & data. Technology has given us great power. Leaders must remember what Spiderman said, “With great power, comes greater responsibility.”