New leadership skills in the era of digital disruption
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Introduction
Digital disruption uses a verb which has been largely taken over by the tech sector – “to disrupt” means “to cause (something) to unable to continue in the normal way; to interrupt the normal progress or activity of something”. We might therefore define digital disruption as a catalyst driving companies to adapt their business models, an unpredictable and complicated step which can put more traditional organisations in crisis. Most of these companies respond to this “force” with digital transformation strategies whose programmes centre on their employees’ skills and expertise, however the first to adapt should be the leaders and managers.
Leaders of changing company culture
A total of 41% of Italian CEOs have decided to take on the role of “Leader”, in other words the point of reference for cultural change initiatives. There are then “Sponsors” who prefer to delegate, keeping a position more to the sidelines for themselves, but there are also “Neutrals” who do not consider it necessary to proactively intervene in the process.
In a context characterised by increasing volatility, the new leaders must be completely willing to put themselves on the line. It is not simply a case of having good knowledge of emerging technologies, but also knowing how to guide their team through constant and unpredictable changes in an agile manner. They have to understand and forestall trends, adapt the corporate strategies and, above all, take on a proactive role in the processes of cultural change within the company. The digital transformation indeed necessarily requires a change of mindset, otherwise the effectiveness of any strategy would be fatally compromised.
Research by Capgemini – Changing the Game The role of the CEO in the era of Digital Disruption – starts out precisely from these presuppositions, investigating the extent of the personal contribution that leaders can give to their companies in order to facilitate the cultural change required in an age of digital disruption. This study analyses how CEOs can influence and guide the necessary transformations, highlighting the importance of active leadership in promoting innovation and adaptability within organisations. One of the research questions, for which we provided the relative insight at the beginning of the paragraph, implies that despite there being awareness of the need to implement a cultural transformation at corporate level, not all leaders respond in the same way: some actively participate in the cultural change activities, while some, on the contrary, do not consider it necessary to make a contribution and prefer to delegate. Different visions of their own role which are destined to profoundly influence the future of the company.
Four characteristics of an agile leader
The traditional characteristics of a good leader never disappear, but they do evolve. A study by the Global Center for Digital Business Transformation, an IMD and Cisco initiative, identified a change of emphasis in the multitude of skills, identifying the key competences required to lead organisations in the era of digital disruption. In this context, a leader must first and foremost demonstrate: humility, flexibility, visionary spirit and commitment.
Humble. The rapid pace of change we are living through makes it impossible for a single person to possess all the skills required to make informed decisions. Agile leaders must therefore have the humility required to admit what they do not know and throw themselves into lifelong learning, taking opportunities both inside and outside the company. This behaviour makes it possible to make the most of others’ skills and to take the best decisions based on a variety of inputs.
Flexible. We know that a good leader must be able to take decisions quickly, as well as to adapt and change ideas on the basis of new information. In a changing context such as that determined by digital disruption, the ability to correct oneself must never be seen as a weakness, as long as it is based on accurate, not random, data. Flexibility indeed allows for a more effective response to new challenges.
Visionary. Current uncertainties could discourage the construction of long-term projects, but for a good leader it is essential to have a clear vision of the future of the company. This is truer now than ever, not only from a business perspective but also in order to inspire the members of the team and align the organisation’s efforts towards common goals.
Committed. Like in a personal relationship, leaders must commit themselves to listening and exchanging information with all stakeholders, both internal and external. Demonstrating curiosity for all aspects of the organisation and for emerging trends, both within and outside the sector, is crucial. This commitment facilitates collaboration, innovation and the ability to quickly respond to changes in the market. We also mustn’t forget that, whatever the era, a good leader also needs human qualities.
Conclusions
The characteristics discussed above are essential at a managerial level, but are not sufficient to successfully guide a team able to deal with the speed of change. As such, a good leader must, now more than ever, be able to motivate, listen and manage their own and others’ emotions. All these characteristics indeed allow the needs of colleagues to be anticipated by promoting emotional and intellectual growth, correctly directing people and encouraging them to take action to give their best.
At Angelini Industries, these characteristics have been laid out in a Leadership model based on six behaviours: ACT RESPONSIBLY, EXCEL EVERYDAY, BE A FORWARD THINKER, ACT WITH COURAGE, BE A TEAM PLAYER, BE PASSIONATE. The model, designed to inspire all our people and let them grow through informed behaviour, guides us towards a common identity and culture consistent with our values. Ethics & Responsibility, Performance, Innovation and Engagement.