What will be the most important leadership qualities you will need in the future? Print

Small Business leadershipAs a leader at any level of a business, we become responsible for the well being and success of other people. And as a leader, we achieve success through the success of others.

What are the key issues that you as the leader of your business face over the coming years?

IBM have recently completed the “2010 Global IBM CEO Study” and some interesting information has surfaced as a result.

The survey is one of the largest one-on-one CEO interview studies, surveying 1,541 CEO's, general managers and senior public sector leaders from 60 countries and across 33 industries.

The four primary findings of this year’s survey are as follows:

  • Today’s complexity is only expected to rise and more than half of CEO's doubt their ability to manage it. Seventy-nine percent of CEO's anticipate even greater complexity ahead. However, one set of organisations we call them ‘Standouts’ has turned increased complexity into financial advantage over the past five years.
  • Creativity is the most important leadership quality, according to CEO's. Standouts practice and encourage experimentation and innovation throughout their organisations. Creative leaders expect to make deeper business model changes to realise their strategies. To succeed, they take more calculated risks, find new ideas and keep innovating in how they lead and communicate.
  • The most successful organisations co-create products and services with customers, and integrate customers into core processes. They are adopting new channels to engage and stay in tune with customers. By drawing more insight from the available data, successful CEOs make customer intimacy their number one priority.
  • Better performers manage complexity on behalf of their organisations, customers and partners. They do so by simplifying operations and products, and increasing dexterity to change the way they work, access resources and enter markets around the world. Compared to other CEO's, dexterous leaders expect 20 percent more future revenue to come from new sources.

Business is not usual

The findings highlight the extent to which the economic downturn has affected customers, business and society. The world will not simply go back to “business as usual” after we recover from the economic downturn. The world has undergoing a significant paradigm shift and it will never be the same.

As a recovery in the world economy takes place over the coming years the participants expectations are for a higher level of complexity and uncertainty where “eight in ten CEO's expect their environment to grow significantly more complex and fewer than half believe they know how to deal with it successfully.” This environment creates an urgent need for business and community leadership.

Given this, the survey explored what CEO's consider to be the most important leadership qualities that would be required over the next five years, the results are illustrated below.

2010 IBM CEO Survey

Creativity is seen to be the key leadership quality required over the next 5 years

Change requires a new approach

When uncertainty and complexity are at the forefront of our minds we all need to realise that repeating the activities of the past may not product the same results.

The IBM Survey described it this way

Creativity is often defined as the ability to bring into existence something new or different, but CEO's elaborated. Creativity is the basis for ‘disruptive innovation and continuous re-invention,’ a Professional Services CEO in the United States told us. In addition this requires bold, breakthrough thinking. Leaders, they said, must be ready to upset the status quo even if it is successful. They must be comfortable with and committed to ongoing experimentation… It’s not that CEO's are just now becoming aware of the importance of creativity they have long been aware of the need to innovate their products, their processes and their customers’ experiences.

Even in 2004, CEO's were telling us that ‘CEO's the world over were refocused on growth and they viewed innovation as the way to get there.’

But today, creativity itself has been elevated to a leadership style. Traditional approaches to managing organisations need fresh ideas, ideas that are intended to disrupt the status quo.”

Is it time for a reinvention or a realignment?

Turbulent times provide an opportunity to reinvent what you are doing and how you are delivering the product or service you provide.

As a business leader ...

  • How can you best meet the increasing demand for your leadership qualities?
  • How can you go about reevaluating your leadership skills?
  • What new ways or approaches can you take to working in your business?

These are issues you won't resolve by looking at your bank balance.
Every business needs to address them ... just don't leave them too late.

 
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