Leadership In An Era Of Disruption

In his immortal text The Art of War, Sun Tzu shares sound advice: in the midst of chaos, there is also opportunity. If organizations wish to position themselves as industry leaders, they need a focussed approach to deliver value and outdo competition.

The constant evolution and transformation at the global scale and it’s direct impact on the way we see, think and do things can hardly be understated. The radical disruption in the field of technology, consumer behaviour, and geopolitics is reflective of the fact that we are in an era of opportunity. We are in a world where, if acted wisely; we can make a lasting difference. As the world becomes a global village, organizations are increasingly in positions of influence to lead economies and deliver value, shaping the future to their advantage.

Change doesn’t happen through a mandate; it needs a movement. Hence, we suggest time-tested principles to every organization, irrespective of its size or industry. There are primarily three simple areas that organizations must focus on to be progressive and successful leaders. But simple doesn’t necessarily mean easy. These pillars encompass the ideology and very purpose upon which businesses function, and since they are not quantifiable, they often elude us.

Accountability

The proliferation of technology is closely followed by notoriety. With a rising number of frauds coming to light in the ecosystem, companies are constantly subject to more scrutiny, both by regulators and the market. Neither ill intent nor negligence is permissible. We need to build a solid foundation of trust which can weather any calamity. Every activity should send a loud, clear message: we uphold laws not just in letter, but in spirit, too. And this requires an inherent culture of risk management. Both investors and regulators should have complete faith in you, to be honest, transparent and proactive.

Change brings unpredictability. Hence trust is paramount. It requires thoughtful stakeholder management to instil confidence. The simplest method to accomplish that is holding yourself accountable to the set standards. Any slips must be addressed and admitted immediately. The market is eventually going to know about it; it is better to come from you. While we’ve built great corporate governance models, greater time and energy must be invested in their successful implementation.

Flexibility

Redundancy is fast increasing, owing to the spillover of externalities. With more innovation, we find both product development and compliance verticals constantly striving to stay afloat. At such a juncture, is our organizational structure and machinery equipped to adapt fast enough to deliver to the change outside? While there is excessive talk about wanting to innovate and come up with new things, can we build sustainable, yet evolving organizations who can lead and direct the industry to the future? Taking one tiny example, what proportion of the Indian BFSI service providers is equipped to actively apply artificial intelligence or machine learning, let alone blockchain?

As consumer spending is changing, are we creating financial tools and instruments to cater to their specific demands and make the processes hassle-free? Although it becomes difficult for

larger organizations to change course, we need to engage in scenario building to build a vision for the future and make the first mover advantage for better results.

Culture

While we are adequately motivated to efficiently manage our financial and physical resources, our human resources continue to be managed in archaic ways. Peter Senge in The Fifth Discipline asserts: ‘…the model itself is basically bankrupt. It does not give enough attention to the human side of development.’ As organizations, we must introspect to answer: what are our priorities? Does keeping people happy fall within that scope? Are we willing to put building cultures on the same pedestal as making strategies?

It is incredible how despite having access to almost the same talent pool, some organizations consistently create effective leaders, one generation after another. If you wish to lead, you need to build a culture of leadership. And cultures are functions of repetitive behaviour. As previously said, we need a movement, not just a mandate. If our people’s objectives and actions aren’t aligned with the organizational goal, their behaviour is not geared towards growth.

While we seek to consolidate systems and processes, teams continue working in silos. Along with efficiency, we could aim for effectiveness, too. Internal communication and subsequent collaboration is the key to maximizing your strengths and presenting a united front to all stakeholders. Such a culture naturally ensures accountability and flexibility, highlighting you as a leader.

The Paradigm Shift

There are leaders, and then those who lead. While organizations seek to lead and inspire industries and economies, they must shift their attention to working towards the latter. The business environment has by no means has exhausted its challenges for us, and only organizations with the vision, endurance, and committed people can lead in this era of disruption.