Leadership Algorithm 4.0
The capabilities required from future CEOs to tackle the coming paradigm shifts
In his World Economic Forum article, Professor Schwab asks if the Fourth Industrial Revolution (4IR) will have a human heart and soul?
As I envision the world in 10 years time, this question inspired me to think biology, as well as technology, as we enter this new era. After all, human behaviour is much more interesting than technology:
- It leads technology trends
- It’s more predictable, and,
- As business leaders we have a basic understanding of it (…even if just our own 😉)
My short answer to Schwab’s question is a resounding YES. The heart will be your customer and the soul your employees. As a customer experience leader I would say that, but I say it more as a lifelong student of leadership.
My hypothesis is that our success in preparing for 4IR will come down to the ability to lead @speed, with breadth, and to make a lasting impact through 3 significant paradigm shifts:
- From Shareholder to Customer Value [BREADTH]
- From Hierarchy to Shared responsibilities [SPEED]
- From Engagement to Meaningful Connections [IMPACT]
The Future of Work
What was Science Fiction in the 20th Century is now the everyday, with nanobots targeting cancer, self-driving cars, and unfortunately 3D-printed guns.
4IR brings these advances and their interplay to life NOW, underpinned by a backbone of machine learning, and the exponentially increasing world of algorithms talking to algorithms. McKinsey predicts that in ‘three to five years out we expect to see far higher levels of artificial intelligence, as well as the development of distributed autonomous corporations.’
This will lead to a job-deficit, an increasing gap between rich and poor, and a workforce where the majority are freelancers in 10 years time.
This change in the nature of work is already underway.
As we imagine this change we’ll look at ‘use cases’ from the perspective of Grace, a CEO of the fictional Q-Squared, that tailors personalized ‘healthy & happy’ lifestyles (e.g. nutrient-rich meals, fitness programmes etc..) to its fast-growing community based on quantitative (health/fitness monitors) and qualitative (journals) analysis of what gets the desired results. Let’s take a look at the 1st paradigm and join Grace as she ‘drives’ to work.
The shift from Shareholder to Customer Value [BREADTH]
We are in a well-documented midst of a true paradigm shift from the view of the last century that customers can be coerced into buying the output of the organization — to the recognition that today the organization can only survive by continuously satisfying, and iterating around the changing needs of the customer.
This is the essence of the software methodology ‘agile’, which is increasingly thought of as a new approach to management. We’re evolving new ways of testing, learning and iterating. We’ve always done that and this 4th wave of industrial revolution is just an extension of our hunger to evolve, to test and learn.
Creating this value for and around the customer leads to long-term shareholder value. As Peter Drucker said,
‘the only valid purpose of a firm is to create a customer’.
What this means for Grace
Grace gets in her self-driving Apple car (unlocked by fingerprint), and her ‘wake-up’ music starts, personalized to her brainwaves and mood (a Q-squared product in partnership with Apple).
She preps for today’s Board meeting:
- Reads through analysis of why they’ve had a drop in ‘Trust rating’
- Preps points on their latest algorithm that has evolved to link real-time employee happiness to customer delight to revenue. The board (in particular Ev Williams) is constantly pushing for Q to show how they equate their success with that of the customer
Key Capabilities for Future CEOs: Continuous strategic adaptation. Ability to distinguish between the signal and the noise. Champion and role model deep listening to customer and employee stories.
From Hierarchy to Shared responsibilities [SPEED]
Just as Technology-driven networks are replacing bureaucratic hierarchies; with the likes of Twitter, Medium & LinkedIn replacing newspapers, and AirBnB closing down hotels — we will see work increasingly done in self-organizing teams and ecosystems.
What this means for Grace
Q is working on a new product. It was crowd-sourced by 20 strategic advisors and consultants, crowdfunded by customers, and 15 self-managed freelancers developed the product. It has been beta-tested by 1000 customers over the past 30 days.
Grace will update the Board on the new high-performance communication tool that HR & IT co-developed — to ensure those involved have a clear line of sight to the customer for whom value is being created.
Key Capabilities for Future CEOs: Ability to bring together people and synthesise data from many sources. Champion open problem-solving through collaborative networks. Adaptive Mindset.
From ‘Engagement’ to Meaningful Connections
We are increasingly a node on the network. Part of the sharing community, using our smartphones and deriving ‘value’ from Uber, Tinder et al. Our expectation as consumers is changing and we expect a real depth of value, and a sense of purpose.
What this means for Grace
Q thinks of its wider ecosystem of Customers AND Employees together. Grace has created a clear Purpose, and a strong link between the internal identity and the external brand. Q matches Customer Assistants to Customers based on personality type, interests and skills. Everyone @Q is there because they believe in the Purpose of helping each other AND their customers develop and maintain a healthy lifestyle. Grace practices what she preaches, having introduced daily mindfulness and yoga classes, of course enhanced by personalized programmes.
Key Capabilities for Future CEOs: Social Intelligence. Authentic Story-telling. Create a compelling Purpose. Connect your Customer and Employee stories.
