A New Style Of Leadership

by John Murphy

While bold and decisive leadership is hugely important, it is not enough. In a world where uncertainty is pervasive, leaders will need to be comfortable with ambiguity as a permanent feature of business life. This new type of leader will be able to:

• Continually create value
  The aim of such leaders will be to create a culture where value creation is at the very heart of the organization. They are prepared to take calculated risks and move beyond their own area of comfort in pursuit of their organizational vision. They value diversity as a key strength of the organization, and strive to provide a working environment that fosters openness and empowers employees.
• Create a clear common purpose
  In a world of increasing complexity, corporations are developing looser forms of organizational models such as alliances and joint ventures. But in order to make these structures work, leaders will need to have the ability to define and articulate an organization’s common purpose and values, creating a sense of cohesion among the workforce and the company’s network of alliance partners.
• Define boundaries and engagement rules
  By defining clearly the space within which employees can act independently, employees will be more confident in taking the entrepreneurial initiative, and leaders will feel more comfortable giving employees this freedom. They will also create performance evaluation systems that recognize and reward entrepreneurial behavior.
• Spot opportunities for creating value in dynamic and changing markets
  This new type of leader will understand the way in which market boundaries are breaking down and re-forming, creating new opportunities and risks for their company. They will be adept at creating the alliances and capabilities needed to enter new markets quickly, and will also have formulated a clear exit strategy for declining markets.
• Disturb the equilibrium of the past
  Corporations that succeed in uncertainty will be those whose leaders are not bound by the conventions of the past. Such leaders will seek to create the necessary flexibility to cope with change by continually questioning and testing strategic assumptions, organizational structures, and methods of working. They will encourage diversity of thinking across the organization, and act on good ideas developed elsewhere.
• Nurture the next generation of leaders
  This requires not just an investment of financial resources, but of time spent mentoring and developing potential leaders of the future. These new front-line leaders must have qualities that equip them to cope with ambiguity and uncertainty. They will need to combine traditional strengths such as broad business awareness and self-confidence, with self-awareness; to be reflective as well as action oriented; to have a bias towards exploration and experimentation; and to be comfortable with diversity and multi-culturalism.