“We live in unprecedented times!” People have been saying this for decades, as every new era arrives with unique dynamics, unimagined innovations, and unexplored opportunities. How can we prepare tomorrow’s leaders for the next “unprecedented” period ahead?

Organizations around the world continue to face significant transformations driven by changing societal expectations, advancements in technology, and massive shifts in business best practices and regulations.

Perhaps the greatest impact felt by businesses is the actual pace at which change is taking place. Bill O’Callaghan, Managing Partner at Signium USA, suggests that this may be what separates businesses that succeed from those that struggle. He says, “Although constant change is challenging, it also heralds new opportunities. Ultimately, outcomes will always depend on how an organization responds, and how quickly it responds. And that depends on leadership.”

According to McKinsey’s most recent State of Organizations (2023) report, only half of business leaders believe that their organizations are well prepared for external crises, and two-thirds see their organizations as complicated and inefficient. Meanwhile, only 25% of respondents say their leaders are engaged and passionate, and inspire employees to pursue their best.

A snapshot of a fast-changing world

If we took a snapshot of the corporate world today, some of the key shifts taking place would include:

• Focus on purpose and values

Companies are now expected to do more than just make money. People want businesses to have a clear goal that reflects their values and to act ethically in their communities.

• Rapid technological change

Technology is changing industries quickly, with new tools like artificial intelligence and automation. Companies need to keep up with these changes to remain competitive.

• Globalization and political changes

While globalization has linked markets and supply chains, recent political tensions and economic issues are putting pressure on traditional business practices.

• Diverse workforce

The workforce is becoming more diverse, with differences in ethnicity, gender, and age. Companies must work on creating inclusive workplaces that meet the needs of all employees.

• Economic and environmental challenges

Businesses face economic ups and downs, climate change, and limited resources. They need to deal with these challenges while aiming for growth and sustainability.

Factors like these call for leaders to maintain a sharp focus on how their companies operate within each sphere. “There’s a lot to juggle!” says O’Callaghan. “Leaders have more responsibility on their shoulders than ever before. While in the past, executives might have focussed their efforts on running siloed departments, they must now have a greater understanding of overlapping issues, often far outside of their usual scope of experience. It really puts pressure on the next generation of leaders.”

What qualities do tomorrow’s leaders need the most?

While specialized sectors like IT and life sciences require top management to have a firm grasp on technical knowledge and industry-specific regulations, there are numerous characteristics that are becoming more essential for leaders to practice across all fields.

“There is always a place for technical expertise,” says O’Callaghan. “But the most effective leaders also invested in developing their personal skills as much as technical skills.”

Robust mental ability

Those in leadership positions should be able to think critically, make sound decisions under pressure, and adapt to sudden changes. Building mental endurance will help the world’s future leaders overcome challenges while maintaining focus and guiding their teams with confidence and perseverance.

• Adaptability – Working with curveballs

Next-generation leaders must be flexible and able to navigate rapidly changing business landscapes, locally and globally. This means being able to respond to challenges and opportunities with fast, well-informed decisions.

• Innovation – Thinking outside the box

The effective leader possesses a creative mindset that drives innovation and stays ahead of the competition. What’s more, future leaders must learn how to inspire and nurture the skills of innovation and creativity within their teams.

• Resilience – Bouncing back with optimism

The leaders of tomorrow confront challenges and setbacks with confidence in their ability to bounce back. They motivate their people to embody the traits of consistency, determination, and optimism that create a powerful, resilient workforce.

• Visionary leadership – Dreaming up possibilities

Leaders who cultivate the courage to dream are also able to define a clear vision for their organization. Visionary leadership is essential to ensure sustained success and relevance by inspiring and guiding teams toward a shared, compelling future.

• Tech-savviness – Getting ahead wins

Tomorrow’s leaders can take advantage of opportunities to streamline business operations by fostering continual proficiency in emerging technologies. “Forward-thinking leaders don’t only want to stay relevant in today’s competitive environment,” says O’Callaghan. “They want to leverage digital tools and AI innovations to get ahead. Ahead always wins.”

Human-centered leadership style

Simon Sinek, business author and speaker, once said: “Leadership is not about the next election; it’s about the next generation.”

What was once the cold corporate machine has taken on a new shape in recent years. Human resources, which once may have felt as impersonal to some as herding cattle, now has humanity at its core once again. Those vying for executive leadership roles must develop the skills of understanding and working with people, knowing that people are the very heart of business.

• Collaboration – Leveraging talent for triumph

The next generation of leaders will need to excel in teamwork. They should know how to foster a culture of collaboration and inclusivity, optimizing each and every individual’s talents and skills to better navigate the tumultuous corporate environment.

O’Callaghan elaborates: “A good leader teaches their people that where one team member falters, there should be a handful of others with the resources and skills to compensate. A team then becomes a living organism that functions and thrives because every person knows where they fit in, understands how their skills are needed, and knows their contribution is valued and appreciated. That’s an environment where people feel inspired to give their best.”

• Communication – Removing the guesswork

Because of how interconnected the world has become, communication skills are essential to enabling clear vision-sharing, collaboration, and building trust within teams. Leaders must be able to communicate well for their organization to navigate complex challenges and activate decisions effectively.

• Global perspective – Prioritizing people over prejudice

Growing organizations can’t afford to remain stuck with small-minded, localized perspectives. To expand global footprints, tomorrow’s leaders need to have a broad understanding of world markets and an openness to diverse cultures to lead international teams effectively.

“Maya Angelou understood humanity very well when she wrote: People will forget what you said. People will forget what you did. But people will never forget how you made them feel,” comments O’Callaghan. “When it comes to building lasting, multinational relationships, being open-minded and tolerant of cross-cultural differences is key.”

• Smart placements – Optimizing every opportunity

McKinsey’s study suggests that a company’s highest performers are 800% more productive in a role than average performers. Instead of feeling threatened by high performers, the next generation of leaders should optimize every possible opportunity by strategically placing high performers in key roles.

Intentional emotional intelligence development

Emotional intelligence (EI) enables leaders to manage both their own emotions and those of others. C-suite executives who practice EI are more likely to inspire trust, build stronger and more meaningful relationships, and facilitate more cohesive work environments.

• Empathy – Knowing that soft can be strong

As the adage goes: “Soft is strong.”

Empathy allows leaders to understand their team’s emotions and perspectives, which improves communication and mutual trust. Empathetic leaders should be able to use this understated yet powerful trait to create supportive environments that boost morale and employee engagement.

• Authenticity – Being true to your values

Authentic leaders are transparent and true to their values, which in turn also builds genuine trust with their teams. Emotional intelligence helps leaders express themselves authentically while remaining approachable and sensitive to other people.

• Equality, diversity and inclusion – Making all voices heard

With tolerance and acceptance at the front and centre of societal conversations across the globe, leaders with high EI promote a culture of inclusivity by understanding and valuing diverse perspectives. They create environments that nurture innovation and collaboration, where all voices are heard and everyone feels respected.

• Healthy micro-habits – Leading well-being by example

To better manage the demands of the modern workplace, leaders who practice healthy micro-habits for well-being are more resilient and model balance for their teams. Recognizing stress and burnout signs is an unusual yet effective leadership trait that will help the next generation of leaders promote both personal and team wellness.

Unilever is a good example of a company that prioritizes employee well-being, thanks to the leadership of former CEOs Alan Jope and Paul Polman. Through a range of proactive initiatives pioneered by the two executives, Unilever has made well-being a central part of the company’s culture and business practices.

The organization’s “Well-being Framework” focuses on various aspects of health, including mental, physical, emotional, and purposeful well-being. The company offers programs such as mental health support, flexible working options, fitness activities, and initiatives that encourage a sense of purpose.

Leadership at Unilever actively promotes a culture of well-being by modeling work-life balance and mental health awareness. They encourage employees to take part in well-being programs and openly discuss their own well-being journeys.

O’Callaghan encourages aspiring leaders to focus on developing their character as much as their expertise: “We believe that the leaders of tomorrow are those who are in the business not only for their own gain but serve to benefit the organization and the world around them. It was Theodore Roosevelt who once said: “Nobody cares how much you know until they know how much you care. I think that’s powerful advice, nearly a century later.”

www.signium.com