- Masterâs Thesis: Lara Weber
- Supervisor: Prof. Dr. Isabell M. Welpe, Chair of Strategy and Organization
âBefore you are a leader, success is all about growing yourself. When you become a leader, success is all about growing others." Jack Welch (Love, 2016)
As early as 1961, W.C.H. Prentices defined leadership as "the accomplishment of a goal through the direction of human assistants" and a "successful leader as one who can understand people's motivations and enlist employee participation in a way that marries individual needs and interests to the group's purpose". In terms of financial success, firms with superior leadership were 13 times more likely to outperform their industry rivals. (Tanner, 2018). The demand for leaders has never been greater than it is now. There will be between 87,500,000 and 437,500,000 leaders in the globe, which is a reasonable estimate given that many self-employed persons also hold full-time work. (Morgan, 2020)
But what does it mean to be a good leader these days? Particularly with regard to digitalization and the shift towards automation, the tasks of a leader have changed significantly, and leaders have to adjust their leadership roles accordingly. 61% of all leaders (managers and senior executives) said "yes, absolutely" when asked whether they are taking efforts to prepare. However, just 21% of individual contributors replied affirmatively when asked the same question about their leaders. This indicates that there is a large 40% disparity between how leaders see their activities toward these trends and how their people perceive these actions.
Only 20% of employees feel that their managers are aware of these trends and taking action, and only 28% say that their top executives are aware of these developments and prepared for them. 58% of self-employed stated they are taking action, compared to 50% of individual contributors, 58% of managers, and 68% of senior executives who also said they are taking action. Comparing the responses of individual contributors to those of leaders (managers and senior executives) who replied "yes, absolutely," there is a 41% difference between how all workers evaluate leaders' acts and how leaders themselves view their actions. (Morgan 2020). Therefore, the question is, do old definitions still persist? Do we need a new definition and how do we change leadership accordingly to satisfy the employees?
When you're leading an organization, you have to take into account that people are always the most important thing in the company. How you recruit those people, how you motivate them, how you task them with the overall mission and what you want to accomplish is the core of leadershi, according to Marissa Mayer the former CEO of Yahoo! (Morgan, 2020). The vast majority of CEOs interviewed by J.P. Morgan stated that leadership will be based on a set of existing fundamental principles and ideas, such as vision and the ability to execute on that vision, but that future leaders will need to build upon these things with a new arsenal of skills and mindsets. (Morgan, 2020) Tim Ryan, chairman of PwC in the United States and internationally, stated that leadership is undergoing a rapid transformation. I would argue that what constituted a great leader fifty or twenty-five years ago would likely not make a great leader ten years from now. " (Morgan, 2020)
In my Masterâs Thesis "Leadership 5.0" I would like to investigate and analyze how the role of leadership has changed and which new forms have emerged. The goal is not only to identify the change of leadership but also the identification of subjacent success factors and skills for future leadership. Thereby I want to clearly include the actual change of society (e.g. digitalization and its impact, globalization, p.ex.) to find out new skills needed nowadays and, in the future, to be successful. The aim of the thesis is to provide a comprehensive overview of the future leadership roles emerging.
Therefore, my objectives are to identify new roles of leadership, to identify key aspects of leadership in the future, to examine the current development and future development of different leadership styles, also the analysis of difference of leadership, to provide future leaders with managerial implications (toolset, skillset).
With my objectives in mind, I developed the following research questions:
- What does Leadership 5.0 mean, and is there a new universal accepted definition of leadership?
- What different kinds of leadership forms are emerging?
- How do companies prepare their leaders and virtual leaders?
- Which kind of skillset does a future leader need and is crucial for success?
The second chapter describes the systematic literature review research method conducted.
The result of the systematic literature analysis will be explained in the third chapter, followed by a discussion regarding to the research questions in the fourth chapter. In the fifth chapter a conclusion is made with given limitations and further research questions.
In my thesis I conducted a systematic literature analysis. The logical structure of the systematic literature review is based on the principles of systematicity and transparency of Paré et al.(2016). In the first step, main research fields with their respected keywords are identified as highlighted by Kshetri(2018),Min(2018) and Tan(2018). I devided the topic into three main fields of research with first field of research "future leader" describes the main topic of my systematic literature review. The second keywords for the second field of research where bond to the opperating variable of achieving certain goals. Therefore I used the vaiables "learning","planning","satisfaction","attract","emerge","develop","success","training". The last variables, according to my thiers field of research where bond to the optained knowledge "skill", "role", "mindset", "guide", "qualific", "style", "form", "organiz".
In the second step, the databases are selected and a search querie is evaluated of the initial search, described by Vom Brocke et al. (2009).The first step in the studies' search strategy is to present the databases of scientific literature that were chosen for the search. The search terms used are then explained and defined. Different operators can be used during the search. These operators allow for the combination of multiple search terms and the customization of the search. To find relevant literature, search terms like AND, NOT, and OR are frequently used. I decided to select the following data bases for my systematic literature review: EBSCO Business Source Premier, SCOPUS, OPACPLUS. The parameters I used fot the conducted search where: TI"future leader*" AND ("learning*" OR "planning*" OR "satisfaction*" OR "attract*" OR "emerge*" OR "develop*" OR "success*" OR "training*") AND ("skill*" OR "role*" OR "mindset**" OR "guide**" OR "qualific*" OR  "style*"  OR  "form*"  OR  "organiz*").
The further selection of literature takes place in the following order: First the screening of titles and abstracts. In the second steps full texts are screened. And the third and final step is the inclusision of detected literatures.The most important information and results of the included studies are then compiled in a table. I narrowed the search to the type of the papers: Articles and read the abstract of the most suitable ones. Overall I could identify 6 main literature sources.
In the next step, additional sources are searched using 3 options from a previously found literature source through a backward and forward search, implemented by Wohlin(2014).
- Backwards search via continuous text: Many claims made in a literary source's text are backed up by additional information. Usually, it is clear from reading the statement whether the cited source is pertinent to the subject at hand.
2.Reverse search via the bibliography: Here, you should search the bibliography's book titles for additional, pertinent literature.
3.Forward search via "cited by/cited by": A retrievable list of citing articles is directly provided by many databases and journals. This is often constrained, though, which is why this list can also be found using Google Scholar.
To identify the most recent and significant emerging trends, additional parameters mainly included references published within the last five years. I narrowed my selection even further to the articles that contained the most crucial ideas and developments. Using these techniques, I discovered an additional 69 significant journals that are highly relevant to the subject of my research.
In the fourth and final step, articles are sorted according to the research topic into different sectors and industries, explained by Webster et al. (2002). I organised the various sources into various developing areas, such as skill and mindsets, because I did not differentiate between different sectors in my research questions.
Together with the 140 CEO interviews from the Book: Future leader from J.P. Morgan (2020), the systematic literature is the fundament of the research framework.
The findings are displayed in the following result framework.
RESULTS
- Leadership
W.C.H. Prentice is credited with one of the most famous definitions of leadership. He described leadership as "the accomplishment of a goal through the direction of human assistants" and a successful leader as one who is able to comprehend people's motivations and enlist employee participation in a way that couples personal needs and interests with the goals of the group. (Prentice, 2004)
CEOs assign various qualities or traits to leaders. However, one can assess an overall core definition based on tree significant CEO statements that J.P. Morgan interjected.
Leadership, according to Bill Thomas, global chairman of KPMG, is "setting a vision that will best position your organization to succeed in this new world and giving serious thought to the future assembling a diverse leadership group that can carry out that vision. Delivering the vision and a more immediate business plan to your team in a way that is pertinent and individualized for them keeping a connection to the outside world to comprehend the forces influencing the society you serve as well as the market you operate in." (Morgan, 2020)
A leader is someone who can see that something can be better than it is now, who can inspire others to work toward that better vision, who can devise a plan to realize that vision, and who can work to realize that vision while putting others first. Audi CEO Abraham Schot strengthened the definition by stating that, in his view, leadership is about going above and beyond and resolving issues that others are unable to. Leadership is first and foremost about considering others, not just the numbers. (Morgan, 2020). Â Also highlighting the value of leaders, Tom Wilson defined leadership as creating the future rather than merely following trends. According to him, a great leader can envision and influence a better future. (Morgan, 2020)
- Generation Y, Z
The terminology Generation Y describes all humans born between 1980 and 1999 and Generation Z refers to all the humans born after 1995. (MachwuÌrth, 2016) The reason why they set oneself apart is because they grew up with the ongoing digitalization and use and apply modern information- and communication systems naturally. (MachwuÌrth, 2016 ). The personality parameters of this generation is according to (MachwuÌrth,, 2016) slightly different to the ones before. They are more achievement-oriented, self-confident, and risk-loving and they appreciate their flexibility and want individual appreciation at work.
- Artificial Intelligence
Artificial intelligence (AI) is a subfield of computer science. It focuses on the investigation of human behavior and its intelligent reproduction by technology. For this reason, simulations attempt to understand the mechanism of intelligent human behavior by simulating human cognitive activity.
The phrase "artificial intelligence" was coined by John McCarthy, an American computer scientist. In 1965, he convened a group of scholars from diverse fields to a special workshop to debate and define what "thinking machines" are ultimately based on. At this period, the meaning of this term was rather ambiguous. He published a research based on the premise that every facet of learning and every other attribute of intelligence could be described and prescribed so exactly that a computer could imitate it. In general, computer systems accomplish activities that ordinarily need human intellect; the capacity of a machine to imitate intelligent human behavior grows as a result. Applied domains include visual perception, speech recognition, decision-making, and translation software.
- Leadership 5.0
In the era of AI and market, business model, and business process shifts, job profiles will alter and roles may exist in different areas than previously. (Petry & JaÌger, 2018).
So does being a leader. According to the research by Ultimate Software and the Center for Generational Kinetics, 80% of employees claim they can perform their duties without their supervisors and believe their managers are unnecessary. (Ultimate Software, 2017). Even in the United Kingdom, over half of workers surveyed by the Independent feel they could perform a better job than their employer. (Bailey, 2017) In its most recent Global Leadership Forecast research, DDI polled more than 25,000 executives around the globe and found that just 42% believed that the overall quality of leadership inside their firms was high. (DDI, 2018). Leaders lack proper preparation for the future. The current capability for leadership is insufficient to fulfil future leadership requirements. This conclusion is constant across nations, organisations, and organisational levels. (Leslie, 2015)
In the most recent Millennial study conducted by Deloitte, which had 10,000 answers from 36 countries, 71% of millennials stated they expect to leave their jobs within the next two years due to dissatisfaction with their leadership skills development (Deloitte, 2022).
We also have to differentiate more between the new leadership and being a manager. We often presume that managers are accountable for people, making and implementing decisions, delegating, developing teams, and enforcing control, among other responsibilities. Visionaries, on the other hand, are those whom we perceive to be leaders. These are the individuals who inspire, excite, and encourage others; they question the status quo; and they are committed to creating a better society. Anyone may become a leader; the key is to comprehend the group you are heading. You can lead yourself, a small team or function, a department, or an entire company, for instance. However, there is a caveat. This is neither a simple name or title change. This is a shift in skills and mentality. (Morgan, 2020)
To cope up with the new age we need a new definition of leadership, which is no implemented yet. 72% of over 5,000 knowledge workers polled in a recent study by Deloitte in the United States indicated, âWe need a new concept of what a âleaderâ is in todayâs day and age.â (Deloitte, June 2018).
Artificial intelligence will significantly alter the companyâs market position, relationship with competitors, and product portfolio. (Kari & SchĂŒtte, 2019). It is widely regarded as a critical technology of the future and, as such, possesses significant economic potential. (Seifert et al., 2018) The objective is to enhance and accelerate the entire operational and structural concept of a business. To increase overall efficiency (BĂŒttner & MĂŒller, 2018) and obtain a competitive edge, the so-called smart factories optimize all business processes. Even BĂŒttner refers to âDigital Darwinismâ and âexistential threatâ if businesses do not respond and adapt to digitalization. (BĂŒttner & MĂŒller, 2018). In PwCâs 22nd Annual Global CEO Survey, which contains responses from 1,378 CEOs from across the world, 42% of CEOs think that AI will have a greater effect than the internet, and 21% of CEOs strongly agree. In addition, PwC projects $15.7 trillion in global GDP benefits due to AI by 2030. (PWC, 2019).
Moreover, AI and digitalization will alter the jobs we have to do.
According to the commercial real estate firm Cushman & Wakefield, 50-year-old buildings constructed today will confront technological challenges. By the time they graduate high school, 11-year-olds will have access to computing power that is 64 times more powerful than it is today, which is 30 million times more powerful than it is today (Cushman, 2018). A twenty-year-old executive will encounter technology that is 500,000 times more powerful than when he or she began working (Cushman, 2018). Consider also that the costs of solar and wind energy have decreased by 88% and 69%, respectively since 2009 (Lazard, 2018). In collaboration with the Institute for the Future, Dell anticipates that 85 % of the occupations in 2030 have not yet been created (Dell, 2017).
In a recent study of graduates from the 30 most prestigious worldwide business schools, the rate of technical and digital advancement was identified as the greatest challenge confronting the next generation of global business executives. (Morgan, 2020). Amy Pressman, co-founder, former president, and board member of Medallia, a customer experience software company with more than one thousand employees, stated that the change we experience is wonderful in many ways, but nevertheless creates concern since our every day lives may be disrupted. We must thus embrace it, accept it, and not be scared of it. (Morgan 2020)
Needed Skill
- Technology fluency
State Farm CEO Michael Tipsord emphasized the significance of having technological proficiency when he said that tomorrowâs leaders would need to have a fluency in technology that enables them to foresee opportunities and threats, differentiate between hype and credible sources, and embrace transformative possibilities. (Morgan, 2020). By 2030, it is predicted that each person will own 9.27 connected devices on average (Safaei, 2017). Technology is the driving force behind and a necessity for every aspect of an organization. (Irish Times, 2018). The former CEO and current executive chairman of Tech Data, Robert Dutkowsky, emphasizes the need for a companyâs leader to be well-versed in technology because today, almost every company in the world is a technology company. (Morgan, 2020)
Needed Mindset
- Adaption
Gary Goldberg, the CEO of Newmont Mining, was one of many CEOs who emphasized the importance of adaptability. Future leaders must be flexible, according to him, in order to comprehend the trends that are increasingly influencing how people decide to spend their free time. This covers everything from robotics to climate change. . (Morgan 2020) The CEO of the multinational British electricity and gas utility company National Grid, which employs nearly 23,000 people worldwide, is John Pettigrew. He succinctly put this concept into perspective by noting that disruption and change are now the norm. As a result, leaders will need to be nimble and flexible, which necessitates the need for agility. Â (Morgan 2020). The CEO of Alicorp, Alfredo Perez, added that driving change and conceiving the future are more important than simply adjusting to it. While leading and creating are like sailing on top of the water, adapting is like keeping your head above water. (Morgan, 2020)
As leaders, we must strike a balance between pragmatism and haste while carefully weighing the effects of our choices on our businesses and the people we lead in constantly changing environments. Leaders who think about adapting are already behind; successful leaders are those who think about creating.
- Integration of Human and IT
The American Heart Association's CEO, Nancy Brown, is dedicated to making the world a place where people live longer, healthier lives. She emphasized that there is a lot of attention being paid to technology and how it will alter the way we work, produce our products, and interact with both customers and coworkers. But it's important to remember that human relationships are still what keeps the world turning. She believes that in order to effectively use both people and technology, current and future leaders will need to collaborate more and work in teams. (Morgan 2020)
Additionally, Mike Capone, the CEO of Qlik, stated that leaders who are familiar with technology and all its ancillary components, such as data and analytics, will be at a distinct advantage in the future. Although this is already the case, in the years to come it will be absolutely necessary. Future leaders must embrace technology rather than avoid it. (Morgan 2020)
According to a recent article titled "Collaborative Intelligence: Humans and AI Are Joining Forces," out of 1,500 organizations studied, those where humans and technology collaborated saw the biggest performance improvements. (Wilson, 2018) The former CEO of Unilever, Paul Polman, stated in an interview with J.P. Morgan that he has always firmly believed that a leader's motivation should come from a higher sense of purpose. Connecting with others and the environment is important, as is committing to a cause greater than one's own self-interest and, most importantly, putting oneself in the service of others. (Morgan, 2020)
As a result of globalization, you must become an international leader, someone who is captivated, curious, and interested in individuals who are different from you as well as unexpected ideas and cultures. Unfortunately, current leadership development programs are not suited for this new sort of future leader; this issue will be addressed later in the book. The CEO of Saint Gobain, Pierre-André de Chalendar, stated that the world is simultaneously becoming more global as a result of digital technologies and infrastructures, and more local, with a strong resurgence of regional specificities where a thorough understanding of local culture is a prerequisite for success. Consequently, business executives must contend with these two competing tendencies. (Morgan 2020)
Needed Skills
- The âBig Pictureâ
An important skill is to have always the big picture in mind.The chairman and CEO of World Fuel Services, a multinational fuel logistics business with more than 5,000 employees, is Michael Kasbar. He stated that for a long time, leaders relied on instinct and intuition to make decisions and develop strategies. But in order to determine whether we are moving in the right direction, it is now also crucial to have the addition of data and technology. Future leaders will explore many paths simultaneously and look around many corners to determine the best course of action, rather than choosing one and sticking with it. (Morgan 2020).
- Communication in every channel
The importance of communication was eloquently stated by Tsuyoshi "Nick" Nagano, president and chief executive officer of Tokio Marine. He spends 70% of his time as a CEO talking to the employees of his business. He oversees 32,000 employees worldwide, which means that they only hear him speak live or virtually on average 20 minutes per year. Therefore, these 20 minutes must be effective; otherwise, he will ask, "Where is my impact as CEO?" (Morgan, 2020)
The Container Storeâs CEO, Melissa Reiff, supports this by emphasizing that communication is leadership. She believes they are interchangeable. Growing and maintaining a successful business depends on daily communication that is reliable, considerate, thoughtful, predictable, compassionate, and polite. (Morgan, 2020).
Needed Mindset
- Think globally
Thinking locally, regionally, or even nationally is practically impossible in the connected and rapidly changing world of today. You must instead adopt a broad perspective. Every leader must be a citizen of the world. Glenn Fogel, the CEO of Bookings Holdings, emphasizes that having a global mindset is essential for anyone who wants to lead a large organisation. (Morgan 2020). China and the United States split the top 10 spots on the 16th annual Forbes Global 2000 list, which features publicly traded companies from 60 different countries, for the first time since 2015. The United States has 560 companies on the Global 2000 list, while China has 291 of them. Additionally among the five nations with the greatest number of companies on the list were South Korea, Japan, and the United Kingdom. (Ponciano et al., 2019).
- Know your market and costumers
People now purchase experiences instead of merely products, and this trend is only getting stronger. In fact, 89% of customers have chosen to do business with a rival after having a bad experience (Morgan 2020). A study by the management consulting firm Walker predicted already in 2013 that by 2020, customer experience will overtake price and product as the primary differentiator for brands. (Walker, 2013).
Technology must be used by leaders to address both established and emerging business challenges. Long-term investments are necessary for digital transformation, but according to Blake's research, large corporations that go through this process perform better in terms of their stock prices over time. (Morgan, 2019).Data is at a turning point; 92% of customers don't feel comfortable with their data being automatically collected because they don't think the data is secure. (Lara, 2018).According to Carnival Cruise Line's CEO, Arnold Donald, providing for customers is ingrained in their DNA. He stated that their primary goal in conducting daily business is to surpass their customers' expectations. (Morgan, 2020).
Besides leading a team, it is significant for a future leader to be able to attract the best talents to your team. In an interview, Jeffrey Purrid stated that in his industry, competition for talent is more intense than the competition for customers. He is the president and chief executive officer of TELUS International, a worldwide outsourcing and offshore firm with approximately 30,000 people (Morgan, 2020) What talent looks like, where it originates, and how much talent exists are all elements influencing a significant shift in the workforce as a whole. According to research conducted by Korn Ferry, there will be a worldwide talent shortage of around 85 million individuals by 2030, which will result in unrealized annual sales of $8.5 trillion (Korn Ferry, 2018). In 2019, the availability of important talents was one of the top 10 challenges to enterprises, according to a PwC CEO poll. It ranked third, barely one percentage point behind policy uncertainty and overregulation (PwC, 2019). Moreover, the population is ageing. By 2030, according to the United States Census Bureau, one in five Americans will be of retirement age. By 2035, there will be more persons over 65 than under 18 in the United States (U.S. Census Bureau, 2018).
The confidence of the leaders J. P. Morgan's premise is that human workers will be proficient in the numerous developing technologies and related skills that are in high demand, such as data analytics, cyber-security, augmented and virtual reality, blockchain, artificial intelligence, and robots. Currently, the opposite is true. When he interviewed Barbara Humpton, the CEO of Siemens US, which employs over 50,000 people, she mentioned that they recently had over 1,500 open positions, but despite receiving over 10,000 applications, they were unable to find enough candidates with the necessary skills to fill those positions, which were in hands-on areas. (Morgan, 2020)
According to the CEO of Philip Morris International, André Calantzopoulos, describes the transitioning from an era of lifetime employment to one of lifetime employability. If your employees do not believe they are growing and advancing, they will quit you, as they should! Why would they want to join a company that is rendering them obsolete? As a leader, it is your responsibility to prevent this from occurring. He stated that we must acknowledge that the talent environment is not the same as it was twenty or even 10 years ago, when people were believed to remain forever (Morgan, 2020).
In addition, the challenges surrounding skills are not limited to what we commonly refer to as "hard skills." Empathy, self-awareness, communication, and other "soft skills" are in high demand and in short supply in the workplace. 57% of 2,000 company leaders questioned by LinkedIn deemed soft skills to be more significant than hard skills. (Morgan 2020). In a recent LinkedIn poll of 9,000 talent executives, 78% deemed diversity to be crucial. Consequently to the research, "Diversity was formerly a box that firms would tick. Today, however, diversity has a direct relationship with organizational culture and financial performance. Our study indicates that 78% of organizations promote diversity to improve their corporate culture, while 62% do so to improve their financial success." According to Deloitte's most recent millennial poll, millennials and Gen Zers who work for firms seen to have a diverse workforce and senior management teams are more likely to remain with the company for at least five years (Morgan, 2020). In other words, having a diverse staff is insufficient if you are unable to maximize its potential.
Jeff Dailey, the chief executive officer of Farmers Insurance, stated that the ultimate objective of every leader should be to enable everyone to participate to the best of their abilities; if you are not inclusive, this becomes difficult. (Morgan 2020)
Companies in the top quartile for gender diversity on their executive teams were 21% more likely to achieve above-average profitability, according to a McKinsey analysis entitled Delivering Through Diversity. Top-quartile enterprises were 33% more likely to outperform on the basis of ethnic/cultural diversity. (Hunt et al, 2018).
Mastercard considers itself to be a force for good. We think that offering chances for everyone is the best way to do business. We feel that these factors are crucial to our company's success. We infuse these ideals into every aspect of our operations; they are not just words on a poster. We think that when organizations, both public and private, recognize that it is in their self-interest to do good and function in a decent and inclusive manner, we will be able to advance toward a healthy, global economy in which everyone can prosper. The type of economy that can provide a world with greater transparency, greater sustainability, and a genuine route to success for all individuals. We have a purpose-driven culture where we get things done. (Morgan 2020)
As a leader responsible for acquiring and maintaining the best personnel, it is your responsibility to adjust the company to the shifting talent environment. George Corona is the president and chief executive officer of Kelly Services, an approximately 8,000-employee workforce management and staffing services firm. George believes that in the future, talent will determine the success or failure of companies: those who will succeed will do so because they have the finest talent and the best people. Understanding how to find talent, how to attract talent, and how to inspire talent will be much more crucial in the future than it is currently  (Morgan, 2020).
Needed Skills
- Differentiated communication
In the book Humble Inquiry, Schein introduced another method of communicating. He demonstrates how to become a better leader through his method of impartial questioning. His approach, "Humble Inquiry," enables questions to be posed correctly and without bias and aids in changing relationships and communication in businesses and organizations. When properly applied, this technique enables the development of fresh concepts, the avoidance of errors, and an increase in flexibility and agility. The foundation for establishing trustworthy connections that promote improved communication and ensure collaboration when it is required to complete the task is humble inquiry. There are four different types of inquiry: 1. Humble Inquiry; 2. Diagnostic Inquiry; 3. Confrontational Inquiry; 4. Process-Oriented Inquiry. The second main idea of the good book is to ask questions that show trust and include and respect others in order to build a good team. (Schein, 2013)
- Motivating and coaching
Outstanding coaches will produce future leaders. This indicates that you are capable of inspiring, engaging, and motivating people, developing future leaders, collaborating across generations and cultures, and forming effective teams. Luigi Gubitosi, the chief executive officer of Telecom Italia, defines a leader as someone who coaches, directs, and organises the work of several individuals. Whoever believes that leadership is a one-man show is in for an unpleasant surprise, according to him. (Morgan, 2020)
People are driven by a multitude of variables, and as a leader, it is part of your responsibility to understand these factors. In fact, according to recent research by Bror Saxberg, vice president of learning science at the Chan Zuckerberg Initiative, and Richard E. Clark, professor emeritus of psychology and technology at the University of Southern California, this is one of the most common errors made by leaders: they assume that what motivates them will motivate others. (Clark, 2019).IBM recently surveyed 1,700 CEOs from 64 different countries. In addition, they found that the power to inspire is one of the most essential leadership skills (Levin, 2017).
Bain asserts that driven people generate more than twice as much as "satisfied" ones (Morgan, 2020). Gallup's most current data reveals that 85 percent of the global workforce is either not engaged or actively disengaged, costing us nearly $7 trillion annually in lost productivity. (Harter, 2017)
According to a recent Randstad poll, ninety percent of workers appreciate having coworkers of varying ages and believe that a multigenerational workplace is advantageous for everybody. Moreover, 87% of workers feel that a multigenerational workforce promotes creativity and problem-solving (Randstad, 2018). Another Forbes research indicated that decisions taken and executed by diverse teams yielded to 60% higher results. The same study found that teams with members of varying ages and geographical locations made better business judgments. 87 % of instances (Larson, 2017).
The Boston Consulting Group has conducted a study on this topic and concluded that organisations with above-average leadership diversity generated 19% greater innovation revenue than those with below-average leadership diversity (Lorenzo et al., 2018).
In their analysis, McKinsey discovered that firms in the top quartile for ethnic and cultural diversity on executive teams were 33 % more likely to achieve industry-leading profitability (Hunt et al., 2018). SĂ©bastien Bazin, the CEO of AccorHotels, feels that the capacity to collaborate with individuals of all ages and backgrounds is a characteristic of a future leader. In his opinion, Millennials, for instance, have been altering the workplace since their arrival on the scene about ten years ago. Desiring autonomy and adaptability, Millennials tend to be more self-assured and flexible when it comes to new ideas, technology, etc. However, their elder counterparts have plenty to offer these new workers, including industry/company expertise, interpersonal skills, and how to deal with failure. As a future leader, you must be able to collaborate with individuals regardless of their age or origin. (Morgan, 2020)
Needed Mindset
- Curiosity and constant new learning
When J.P. Morgan asked Michael Dell to identify just one trait future CEOs will need to succeed, Dell replied, "Curiosity." This is also echoed by Walt Disney, who is renowned for saying that he doesn't look backwards for very long. We continue moving forward, opening new doors, and doing new things because we are curious, and curiosity keeps leading us down new paths. Great scientist Albert Einstein acknowledged "I don't have any special skills. Just very, very curious." (Morgan 2020). Curiosity fuels Bradley Jacobs, the CEO of XPO Logistics and one of the best CEOs in the world according to publications like Barron's and Glassdoor. He claimed that, when it comes to effective leadership, curiosity is like the fountain of youth (Morgan 2020). The J.M. Smucker Company's president and CEO, Mark Smucker, believes that organizations are more eager than ever to understand why we're changing, why we're doing "this," and why our business is struggling. What can we change, exactly? But it's crucial to understand why (Morgan 2020). According to LinkedIn's "2018 Workplace Learning Report," which polled 4,000 employees worldwide, 94% of workers would stay at their company longer if it made an investment in their career development. Despite this, the top reason why workers say they feel held back at work is that they simply don't have the time to acquire the skills they need to remain relevant and successful in their careers (LinkedIn, 2018). Only about 24% of 3,000 workers in Francesca Gino's recent study at Harvard Business School reported feeling curious about their work on a regular basis, and about 70% reported encountering obstacles to asking more questions at work (Gino, 2018).
This can be seen, for instance, in the development of Netflix. Reed had a thought as he was driving home, annoyed that he would have to tell his wife about his sizable late fee. What if a video rental company operated similarly to a gym? Why couldn't something similar exist for video rentals? At a health club, you pay a single monthly fee and can visit as frequently as you like. As a result, Netflix was made. The entertainment industry is currently being revolutionized by Netflix, and they are constantly thinking about "what if," "why," and "how." It should come as no surprise that one of Netflix's nine corporate values is curiosity. Currently, Netflix employs over 7,000 people and is worth over $152 billion (Morgan 2020).
The largest nonprofit in the world devoted to empowering people aged fifty and over is led by Jo Ann Jenkins. 2,300 people work for the organization, which has more than 38 million members. Future leaders must instil a learning culture in their organizations because, in Jo Ann's opinion, learning is a priceless asset. Organizations that don't keep growing and adapting will eventually lose their competitive advantage and fail. This has happened repeatedly, and it will continue to happen more frequently and more quickly in the future. Additionally, businesses without a learning culture won't be able to attract and keep the talent they require to succeed. Those people will merely relocate. This kind of lifelong learning is as necessary for aspiring leaders as air and water (Morgan, 2020). In an Udemy study, 42% of millennials in the US said that learning and development was the second-most significant perk when choosing a job, right behind health insurance. (Udemy, 2018). Less than half of UK organizations run training and development programs to help employees develop their skills and support career development, according to a different study conducted by HR and staffing firm Robert Half. (Robert Half, 2018).
If you assume that your purpose as a leader is to be the brightest person in the room and to make sure that everyone knows how brilliant you are, you are mistaken, according to Hubert Joly, executive chairman and former CEO of Best Buy. If you feel that your responsibility as a leader is to foster the success of others, then you are on the correct route. You must be a leader driven by ideals. Integrity is more crucial than ever in today's transparent society. It is not enough to just follow the rules. It involves doing the proper thing.  (Morgan, 2020) As well, the CEO of ZF Friedrichshafen, Wolf-Henning Scheider, provides excellent counsel on this topic by stating that future leaders must engage in continual reflection and openness, not just individually but also with their staff. When he holds meetings, anyone is permitted to challenge practice, policy, or conduct in our organization, as well as his own leadership. He stated that leaders should not be able to hide in their organizations (Morgan 2020). Further study by Bentley University revealed that 86% of millennials, who will comprise over 75% of the workforce by 2030, consider it a major priority to be a part of an ethical and responsible firm (Schlitzer, 2018).
In the 2018 LRN research, "The State of Moral Leadership in Business," just 17% of respondents indicated that their leaders typically tell the truth. Unfortunately, just 23% of employees believe their supervisors are moral leaders (LRN, 2018). Researchers from the University of Sussex, the University of Greenwich, the Institute of Personnel and Development (IPA), and the Chartered Institute of Personnel and Development (CIPD) discovered in another study that when leaders exhibit purposeful behaviours, such as demonstrating strong morals, employees are less likely to quit, are more satisfied, and are better performers (Bailey, 2018).
If you want to develop trust as a leader, you must prioritise transparency, which is simply being honest and frank about current and future corporate events. According to the employment website Glassdoor, 90% of job searchers believe it is crucial to work for a transparent organization (Glassdoor, 2018).
Needed Skills
- Creating teams
The most important aspect in determining the efficiency of a team at Google is psychological safety, which means that team members trust one another. The last four elements include reliability, organization and clarity, significance, and effect (Bariso, 2018). Amazon, for instance, has a well-known two-pizza rule: if a team cannot be fed by two large pizzas, then it is too huge. In addition, they have a technique known as "single-threaded leader," in which each major decision or project is allocated to a single leader who lives, breathes, and eats just that choice or project (Morgan, 2020). Apple's team consisted of all-star players, and they were honored collectively. Microsoft at the time used stack ranking (which they have since discontinued), where only 20% of each team was permitted to be in the "outstanding" category and performance was solely dependent on how well each person performed (Vozza, 2017). The CEO of Sprint, Michel Combes, defined the ability of a coach as generating a vision. In addition, he believes that coaching must empower individuals to achieve visions, make them feel confident in their capacity to perform, and ensure that they constantly exert their full effort (Morgan, 2020).
- Empathy
Empathy is a quality that helps us to better understand the emotions of others. As Lisa Feldmann Barret explained in her video, it's about understanding what the other person needs at that moment. Some advice or just a hug (Feldmann Barret, n.d.).
According to the "2018 State of Workplace Empathy" report, 87% of CEOs in the United States believe that a company's financial performance is tied to empathy in the workplace (Businessolver, 2018). Bradley Jacobs, the CEO of XPO Logistics, stated that the ability to view a situation from another person's perspective is a very vital characteristic for a leader to possess. Future leaders will need to be more empathetic and dialectical than we are today (Morgan, 2020).
The CEO of Microsoft, Satya, is a good example of how to build an empathy based culture. He asked his employees to read "Nonviolent Communication" as one of his first moves as CEO. Satya has a 96% employee approval rating as of this writing, and the stock price has more than tripled. Microsoft's market cap has increased from around $300 billion during Ballmer's leadership to roughly $900 billion today (Morgan,2020).
The leaders that Facebook attracts and develops are those who care about and are focused on these issues rather than being only driven by the almighty dollar because Facebook has made this a core component of their filter system (Hamilton, 2019).
- Listening
On the other hand, listening is entirely different. It is the conscious and deliberate endeavour to comprehend another person or object. In today's distracted society, listening is far more difficult than it seems (Morgan 2020). Grant Mikasa introduces in his ted talk the term Physically listening, where Our body should face the individual with whom we are conversing. Our eyes gaze into the eyes of the other person with wide-open ears. Moreover, he says that we should not use phones, laptops, or even paper to take notes. Instead, we should concentrate on the speakers (Mikasa,2020) .
In June of 2018, the Predictive Index polled 5,103 individuals on their supervisors. When reviewing the top qualities of ineffective managers, "does not articulate clear expectations" (58%) was the top response. A few percentage points later, the phrases "does not listen to others" (50%) and "poor verbal communicator" (48%) were added. (Predictive Index, 2018). Michael Kneeland, president and chief executive officer of United Rentals, stated that he had always experienced the world as a reverse pyramid. According to him, the most influential thing he can do for his consumers is to listen and comprehend what is occurring on the front line (Morgan, 2020).
Needed Mindset
- Serve a higher need
Being a leader does not give you the right to command others from the top of the pyramid. It implies that you support everyone else from the base of the pyramid while standing yourself. The business world is accustomed to something very different from this. Amway President Doug DeVos stated that leadership is helping those around you be the best versions of themselves in order to achieve success for your group or organization. (Morgan 2020)
According to a recent study in the Washington Post, people who view their immediate supervisor more as a partner than a typical boss are significantly happier with both their daily lives and their overall happiness. (Ingraham, 2018)
It's crucial for both your career and your personal well-being that you get along well with your boss. Over the course of ten years, 3,100 men were the subject of research by Swedish researchers at the Stress Research Institute in Stockholm. 60% more men who said they had leaders they didn't respect were at risk of having a heart attack or another serious cardiac condition. (Nyberg, 2008). A leader's primary duty is to develop other leaders. "Developing next-generation leaders" was ranked as the top challenge by 1,000 CEOs globally in the most recent Global Leadership Forecast report released by EY and DDI. One of the biggest insurance providers in Brazil, Icatu Seguros S/A, employs over 6 million people and is led by Luciano Snel. According to Luciano, a leader's primary function is to develop other leaders. Serving your team can take many different forms, such as coaching and mentoring staff, collaborating with them on projects, praising and rewarding their efforts, or a variety of other, more subliminal approaches. (Morgan 2020)
Mastercard CEO Ajay said about the single event in his career that had the biggest influence on how he approached leadership. He asserted that having interests is crucial. According to him, it is crucial to establish connections with people at all levels because that is how you will acquire advice, knowledge, and the capacity to become a better person. (Morgan 2020)
- Creating an innovative climate
Peter Simpson, the CEO of Anglian Water, made the claim that a leader must feel at ease fostering innovative cultures. This entails being approachable and actively encouraging individuals from every level and area of the company to challenge you as a leader with fresh perspectives and ideas. In the past, challenging a leader and the status quo was seen as a problem; today, this behavior needs to be praised. The good news is that you can use the wealth of tools and resources you have access to learning new and useful things. If your company offers any resources in this area, use them to your fullest potential. Otherwise, check out TED talks, YouTube, Udemy, Coursera, or any of the numerous free courses offered by organizations like MIT, Stanford, Harvard, and many others. (Morgan 2020)
Work management software startup Wrike recently conducted a "Happiness Poll" of 4,000 employees in the United Kingdom, Germany, France, and the United States to determine what makes people happy at work and how that affects their productivity. The leading contributor to employee satisfaction in the United Kingdom was performing meaningful work and feeling linked to a mission (Wrike, 2019). As highlighted by J.P. Morgan: Purpose; Meaning; Impact. According to him, it is evident that the majority of employees comprehend their employment but struggle with purpose, influence, and significance. Leaders comprehend their tasks and frequently have a firmer grip on their purpose (given that they now have access to more information, insights, etc.) and the influence they make, but they, too, struggle with meaning (Morgan, 2020).
Mindy Grossman is the CEO of WW (previously Weight Watchers), which employs around 20,000 individuals worldwide. Mindy repeated what many other CEOs have told me in our conversation: "Regardless of their industry, brands of the future will be required to comprehend their mission and significance. In the future, purpose and significance will be much more valuable." (Morgan, 2020) In a recent poll of 2,285 American professionals across 26 sectors, BetterUp discovered that 90% of workers would swap money for meaning. What amount would they exchange? On average, 23% of future wages, or $21,000 per year, in order to have a meaningful job forever. The same study revealed that workers with meaningful work are more motivated, remain with the firm longer, and take less paid vacation days (BetterUp, 2018).
Stephen Poo, partner and chairman emeritus at Seyfarth Shaw LLP, stated that the majority of business executives he knows have a comprehensive awareness of their organization's company, industry, rivals, and clients or customers. Obviously, this is essential, and many leaders get their purpose from it, but this is also where many stop. He highlights to proceed one step further and asks what this means to you (Morgan, 2020).
According to the research done by Reward Gateway, although 89% of employers believe it is essential for employees to comprehend the company's vision, only 25% of employees feel entirely educated about the reason and mission, while 32% are utterly clueless (Reward Gateway, 2018). In 2018, Mercer polled over 7,600 workers worldwide and recognized working with purpose as one of the top talent trends (Mercer, 2018).
Findings from a BetterUp research indicate that people who find meaning in their job create more, work more, remain at their businesses longer, and are willing to forego better remuneration. Additionally, nine of ten workers will swap money for significance (BetterUp, 2018).
Needed Skills
- Self-awareness
People who themselves are conscious of and at peace with their own inner state of being are more likely to be supportive and compassionate leaders. Before they can do the same for others, leaders must first relate to and support themselves. For instance, it's frequently only feasible for leaders to share their emotions or let go of judgement once they feel safe themselves (Allas, 2022). Dr. Tasha Eurich and her team discovered that 95% of individuals believe they are self-aware, while only 10 to 15% are. (Eurich, 2018). According to Dr. Tasha Eurich, self-awareness consists of two components: internal self-awareness, which is how we see our own values, passions, ideas, emotions, and sensations, and exterior self-awareness, which is knowing how others perceive us. There is also evidence that staff of self-aware leaders are more engaged: they are willing to work more and are significantly more devoted to the purpose. (Morgan, 2020)
Paul Markovich, CEO of Blue Shield California, takes self-awareness to heart. Every weekend, he contemplates the parts he would like to perform. If he wants to be a good parent, a good spouse, a good community servant, and an effective leader at work, he will do the following this week. He strategically organizes his week, which has been beneficial for him. According to him, the mission statement has informed his professional decisions on where and how he wants to work. (Morgan 2020). In a survey of 72 top executives, the American Management Association discovered that a high level of self-awareness was the most accurate predictor of overall performance. Dr. Becky Winkler, a researcher and corporate Organisation psychologist, explains that this is because leaders who are self-aware of their deficiencies are able to surround themselves with individuals who perform better in those areas. Fascinatingly, the research revealed that tough, hard-driving executives who are obsessed with achieving outcomes at any cost actually decrease the bottom line. However, self-aware leaders are able to achieve more financial success. (Winkler, 2019). According to data conducted by TalentSmart, 90% of firms' best performers also possess high emotional intelligence. However, just 20% of the lowest achievers are emotionally intelligent (TalentSmart, n.d.)
As a leader, focusing on the âwhatâ is more beneficial for developing a strategy so that you may begin to ask yourself, âWhat am I going to do in the future to ensure that I donât feel this way?â Or, âWhat can I do to ensure that I make better judgments in the future?â (Eurich, January 2018).
Needed Mindsets
- Purpose-driven and caring
The CEO of St. Jude Children's Research Hospital, James Downing, MD, stated that it is crucial to look after the workforce, to give credit, and to ensure that you are giving people the environment that allows them to contribute as much as possible. His organization is dedicated to the worldwide study and treatment of pediatric cancer and other seriously ill children's diseases (Morgan 2020). The CEO and founder of Chobani, the most popular Greek yoghurt brand in America and owner of the biggest yoghurt production facility in the world, is Hamdi Ulukaya. He claimed in his TED talk that the predominant business theory of the day holds that the goal of a company is to maximize shareholder profit. Since businesses should put their employees' needs first, he believes that is the "dumbest idea" he has ever heard. (Ulukaya, 2019).
At Deloitte, for instance, technology is used to assist with tasks like processing tax returns or offering risk assessments. Without laying off a single worker, Accenture automated over 17,000 jobs in accounting and finance. Tesla CEO Elon Musk recently admitted that his manufacturing facilities relied too heavily on automation and technology, which resulted in what he called a "crazy, complex network of conveyor belts" (Morgan 2020).
IBM created a comprehensive future of leadership initiative to recruit, identify, develop, and promote the most qualified persons for leadership positions. IBM has determined the talents and attitudes necessary to be a successful leader at the firm through a series of technologically enabled examinations. (IBM, n.d.) Amazon, for instance, just announced "Upskilling 2025," in which they would invest over $700 million to train 100,000 people (one-third of their workforce) for higher-skilled roles through 2025. The training sessions will be made available to all organization personnel. This implies that employees will have greater internal mobility inside the organization if they wish to pursue a different position. A worker in manufacturing, for instance, may acquire the requisite skills to transfer to something more technical, such as machine learning. These programs include of Associate2Tech, Amazon Technical Academy, and Machine Learning University, among others. It's not surprising that Amazon is focused on this; as of this writing, the business is battling to fill over 20,000 open positions (Matsakis, 2019).
Additionally, companies like as Accenture, AT&T, JPMorgan Chase & Co., and others have devised long-term reskilling strategies in which they spend hundreds of millions of dollars in the future of work.
During his interviews, J.P. Morgan discovered a few other leadership programs:
The Italian energy giant Enel, which we met earlier in the book, has made mentoring a central component of its leadership approach. They learned, like many other companies, that it is crucial to shift from a command-and-control strategy to one that emphasizes open leadership geared toward reciprocal growth between the leader and those they coach. "From Leader to Coach" was launched in 2017 with the participation of over 1,300 managers and 7,000 HR supervisors from across the world. (Morgan 2020)
In 2016, Koc Group, a big Turkish industrial conglomerate, started a Digital Transformation Program including more than twenty-four of its companies. The objective of the curriculum is to capitalize on the different technological advancements occurring now in order to prosper in the digital future. Levent Akrolu as the CEO of Koc Holdings. He believes that none of this would be possible without existing and future leaders in place. He stated that people resources are the driving force behind his long-term change. His primary duty is to develop the worldwide leaders who will steer his organization into the future. As a result, he prioritizes people above technology in digital transformation. Koc Group created a Personal Growth Program (PDP) for leaders that focuses on personal development, online learning, wilderness training to test leadership boundaries, and coaching. Over 200 leaders have graduated from the program to far. (Morgan 2020)
The management consulting firm Bain devised a novel strategy for developing future leaders known as the Tiger team. Bain's Worldwide Managing Partner (CEO) is Manny Maceda. He was delivering coaching to workers when he realized there were much more individuals who might benefit from his services than he could ever deal with personally. Therefore, Bain established a "hotline response team" to enable workers to seek counsel, support, and coaching from Manny or any of the other partners. There are no limitations or restrictions on the frequency of usage by employees. This means that not only does Manny create new leaders, but so do the other Bain partners. According to Manny, it is tremendously invigorating since it maintains the proximity to the most complex customer circumstances and it facilitates their connection with following generations of partners. This atmosphere of apprenticeship is fundamental to Bain's identity and one of the reasons their teams consider them a fantastic place to work. And he likes to believe that it elevated the bar for how they might make a larger impact on a wider number of their clients simultaneously. (Morgan 2020)
The Royal Bank of Scotland has about 80,000 workers worldwide, and one of its key focuses is developing future leaders. Ross McEwan, the company's chief executive officer, stated that they identify the fundamental competencies they feel their employees and executives must possess to succeed in the present and future business environment. They have already begun to develop leaders and coworkers in accordance with these crucial people characteristics and have begun to recruit accordingly. Their objective is to develop future success profiles for leaders against whom they have already begun recruiting. They have identified future talent within the business that exhibits several of these characteristics, and they are providing them with opportunities to impact strategy and thought. Simultaneously, they are recruiting graduates, apprentices, and interns and initiating reverse mentorship in order to exchange skills and expertise (Morgan 2020).
PwC is an example of a firm that is enhancing the skills of its university graduates. They established a Digital Fitness app for its workforce that assesses their advanced understanding of a range of areas, including artificial intelligence, blockchain, and data analytics. Employees are evaluated in four areas: skills, attitudes, actions, and interpersonal connections. After taking the evaluation, employees get access to the information that helps them to develop in each of these categories. This might involve reading an article, observing a video, or listening to a podcast. It's an internal library where workers may learn whatever they need to know to be successful at PwC, and they receive encouragement to continue learning and growing, therefore enhancing their digital fitness. (Morgan 2020)
Conducting my research questions:
- What does Leadership 5.0 mean and is there a new universal accepted definition of leadership?
There is currently no accepted definition of Leadership 5.0. W.C.H. Prentice's definition of leadership as "the accomplishment of a goal through the direction of human assistants" and a successful leader as "one who is able to comprehend people's motivations and enlist employee participation in a way that couples personal needs and interests with the goals of the group" (Prentice, 2004) is, in my opinion, representative for the universally accepted definition of leadership. Moreover, everyone today is adding their own fundamental values and principles. But the core remains unchanged. Leadership 5.0 will be founded on a set of core principles and ideas that already exist, such as vision and the ability to execute that goal, but that future leaders will need to improve upon.
- What different kinds of leadership forms are emerging? Which kind of skillsetdoes a future leader need and is crucial for success?
Consistently disruptive innovations will continue to shape the corporate environment, resulting in fundamentally changed business operations in the foreseeable future. Successful organisations will likely require new types of leaders. Future leaders will require a new array of abilities and mentalities in order to lead effectively and efficiently. (Laker,2020). Future leaders must be versatile, flexible, and at ease with upsetting the current quo. (Morgan, 2019).
According to Hatami and Segel, the likelihood of managerial success is increasingly associated with the mastery of talent development and sustained high-speed performance. (Hatami and Hilton Segel 2021)
The mentality and abilities of leaders will change, and new tools must be integrated into new organisations and tactics. The leader of the future must be prepared for the digital era and establish, negotiate, or validate the circumstances for a digitally enabled and linked business. When contrasted to what the most prominent people in the world said in interviews done by J.P. Morgan, the data reveals a huge discrepancy. It is true that some locations may see repercussions as a result of automation, but I believe the vast majority of these repercussions will be realised through the transformation of jobs rather than their extinction. Important to mention is, that automating a task or activity does not equate to replacing a person.
Consequently, we must ensure that employees are adequately prepared to enhance their workforce through automation and become "digital normads" with the necessary skills and mindset. 54% of managers' time was devoted to administrative coordination and control, according to a survey of 1,770 managers from 14 countries conducted by Accenture. (Accenture, 2016).
As the research demonstrates, I believe it is imperative that leaders adopt a new set of mindsets and competencies in order to lead in the next decade and beyond. To enable success, the mindset and skills of leaders will change, and new tools must be integrated into new organisations and tactics.
The thorough analysis of the literature revealed five distinct developing leadership roles: 1. the Digital Nomad, 2. the International, 3. the Communicator, 4. the Creator and 5. the Pupose Driven. Each of these roles requires a unique set of skills and mentality. To be optimally prepared for the job of future leader, one must master every role.
The CEO of Centro, Shawn Riegsecker, stated that there is no shortcut to become a great leader. In reality, getting there will take time, and you will undoubtedly encounter obstacles along the way. To achieve your goals, you must engage in activities that give you the confidence to accomplish a little bit more the following day. Nobody likes failure. Failure is merely a challenge and an educational opportunity, not something to be avoided. I feel that the greatest point of progress occurs when you experience discomfort and force yourself to leave your comfort zone. To make a significant difference in your life, you must move outside of your comfort zone and into the unknown. (Morgan, 2020)
Future leadership will be affected by artificial intelligence in a few specific ways. First, it will make the distinction between terrible and good leaders crystal evident. Second, it will compel executives to establish a more human-centered organisation with a concentration on "soft skills." With this thesis I want to give an overview and a guideline responsible for taking action and deciding what type of leaders you wish to be. Therefore concentrate on the human aspect of leadership. Assist others in understanding the impact that AI and technology can have on occupations and careers. Examine the areas where technology can provide value to the workforce as opposed to those where it can replace them. Explore ways in which technology may enhance and improve employee satisfaction and surround yourself with those who are smarter and more talented than you. Consider AI and technology as collaborators for your organisation. Frequent concept testing and experimentation is encouraged. Be comfortable challenging and rejecting the status quo. Accept ambiguity and do not permit fear to influence your choices. Focus on increasing communication and collaboration across teams and geographies and develop alliances with persons and organisations. Reconsider outdated policies, procedures, and regulations in the workplace. Pay close attention to industry, organisation, and career-relevant trends and recognize this as the new standard.
With the changing globalisation and rising diversity, you have the ability to create the best team possible. Throughout your career, get leadership experience in numerous locations of the world. Instead of being afraid of new ideas, cultures, and people, embrace them as opportunities to learn. Â As you work to create diverse teams, you should consider what you're doing to assist multicultural groups feel like they belong. Invest in reskilling and upskilling programmes. Assist employees in comprehending how their careers and professions are transforming and what talents they may gain. Incorporate activities promoting diversity and inclusion into compensation and incentive programmes.
What do you believe and are standing for? What matters most to you, and how do you live your life in terms of doing what is right and being ethical and moral? Take a stance, as acting from a position of neutrality is no longer effective.
And most important as well: Make purpose, impact, and meaning the core of your business if you want to attract and keep top talent. Before helping others, be certain of your own position, significance, influence, and role. Utilize narrative to help employees understand the impact of their work. You have to use your carisma. Like Spotify's Daniel Ek claimed one of his biggest challenges on the way to success was learning charisma. (Stillmann, 2022)
In a society that is always evolving, it is vitally necessary to be honest and to provide your staff with a clear structure. If you are serious about levelling up your team, design a career promotion path with defined milestones and support mechanisms to avoid the energy drain and scope creep that afflict firms across industries. (Steen, 2022). Every leader can benefit from learning to delegate more effectively, according to Buffett's advice regarding a second attitude essential for achieving success. It is difficult for perfectionists who attempt to fix problems on their own to delegate. To expand their enterprises, executives must consciously put their faith in the creativity and intelligence of others. (Schwantes, 2021)
- How do companies prepare their leaders and virtual leaders?
When examining the preparation of future leaders, we find that the leadership development sector has exploded, with the number of participants offering courses to teach the hard and soft skills required of corporate managers. The purpose of so-called "leadership programmes" is to equip future leaders with the necessary skill set and mindset. However, future leaders are not yet well equipped. Multiple large-scale industry studies, as well as our own in-depth conversations with customers, suggest that more than fifty percent of senior leaders believe that their talent development activities are insufficient in fostering the development of essential skills and organisational capabilities. (Moldoveanu, 2019) Therefore, the optimal strategy and a mix of digital platform exploitation must be selected.
Unlike the leadership programs presented in the previous chapter, BMW has launched One Young World, which I believe offers a different approach to leadership development by leveraging globalization. The mission of One Young World is to discover, develop, and connect young leaders around the world. With a large network of ambassadors from over 190 countries, One Young World provides a platform for the greatest talent from all industries to exchange ideas and launch solutions to society's biggest challenges. Leading companies across all industries are now integrating One Young World into their global talent development, retention and attraction strategies. (BMW, 2022)
The CEO of Domino's, Richard Allison, has seen a significant shift in the corporate world that will continue to expand. "We must ensure that we create a compelling path of opportunity for individuals and invest in their long-term growth and development. Historically, their devotion was assumed. Currently, loyalty must be earned. What better way to gain this allegiance than by focusing on the development of future leaders?" (Morgan, 2020). According to research described earlier in this book, global organisations lack future-ready leaders, and nothing is being done to rectify this. How old do you believe the average first-time manager is? How old is the typical participant in a leadership development programme? According to the research, these numbers are thirty and forty-two, respectively. In the United States, for instance, the average age of leaders is just over 45. (Morgan, 2020)
Thereby the question is of course, emerging: Why do the majority of people wait until middle age to undertake leadership development programs? Between ages 46 and 60, about 40 percent of managers take leadership training. (Morgan, 2020)
Overall, it is evident that today's leaders are not living up to their potential and that global businesses are not prepared for the changes occurring in the workplace. We simply lack leaders equipped for the future. Leadership is difficult, and being a great leader is one of the most difficult tasks anybody can undertake. However, like all significant obstacles, they are worth overcome.
John Wooden famously remarked that if you improve a bit each day, eventually you will do great things. He goes on to say that if you increase your conditioning a bit each day, you will eventually see a significant improvement - not tomorrow or the following day, but eventually. Therefore, he advised, Don't expect for great, immediate improvements; instead, seek little, daily improvements. According to him, this is the only way it can occur, and when it does, it is permanent. (Morgan 2020)
- Limitations and further research
The goal and contribution of my systematic literature review is to give an comprehensive overview of the actual state in Leadership 5.0 with emerging trends and developing regarding leader roles.
Limitations might be the limited number of journal article, and some may not precisely relate to the topic at hand or are to broad. The provided search criteria and keywords limit the literature in addition to my extra parameters. Leadership 5.0 is a brand-new topic with on the one hand limited research and on the other hand leadership is a very broader topic needing precise search variables/keyword. Especially because nobody can forecast the future accurately, the results are a prediction with the given research of the actual date. Additional investigation could yield additional and thorough facts, and the situation could change at any time.
An overall conclusion must be reached from each leadership area separately, it needs to be indicated. On the basis of a general perspective on varied and distinct business sectors, it is necessary to conduct an in-depth investigation in order to discover unique leadership advancements related to specific domains.
Future leaders must embrace technology, while not losing sight of human interaction and significance of personal communication. A confluence of human and IT will pave the way for-ward and will prove essential for future leaderâs skillset. Just minor changes in technological standards such as virtual communication can be leveraged to increase companyâs efficiency and effectiveness, but one must not forget virtual communicationâs downfall and the importance of in-person communication.
Besides technological advancement, globalization is yet to end, and corporations will increas-ingly leverage diversity within the organizational structure to foster compa-nyâs internal performance, while also entering new markets. As much as increasing diversity can make businesses flourish, it can also create a vast amount of conflicts as cultures consist of individuals with different norms, values and perceptions. What might deem acceptable in one culture, might deem inacceptable in another. Future leaders must be prepared to create ainclusive culture for everyone, regardless of beliefs, norms and values. They must be aware of cultural differences within the organization and when operating a multinational business and entering a new market with different dynamics.
Talent development is another essential element in a future leaderâs skillset. Without a con-stant influx of talented employees thriving within corporations and actively shap-ing the corporationâs vision, corporations are deemed to fail. As time is against humanity, com-panies must first attract talent, and then retain talent. Constant new learning opportunities, curi-osity, and coaching will be essential to attract and retain talent and future leader must provide such incentive for potential new hires.
Future leaders must be creators. They must be driven by ideas in continual reflection and come up with innovations, creating sustainable value for humanity. When working in corpora-tions, teamwork is essential to create a knowledge hub and combine employeeâs expertise to finish big tasks but also when coming up with innovations. A successful future leader must manage a team accordingly and create a stimulating, collaborative and inclusive atmosphere so team members feel safe to contribute and work together to create something bigger. Empathy will be key to create such an atmosphere, fostering corporationâs innovativeness.
Last but not least, future leaders must never forget the overlying vision and mission. Self-awareness will be increasingly important in times of a constantly expanding skillset needed to succeed. In a world that becomes increasingly complex, it will be essential for future leaders to not lose sight.
The confluence of all above mentioned trends and derived implications will determine future leaderâs success. While the core principles of leadership 5.0 will stay the same, it will be excit-ing to see how humanity will further develop and future leaderâs required blend of skillset will shift.
Executive Summary
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