5 must reads for future leaders

We keep an ear to the ground for the interesting stats, insights and discussion points you need to feel in the know.

1. Leadership transforms

In a recent EY survey workers ranked leadership as the top driver regardless of the success or failure of the transformation. Leaders need to have the courage to acknowledge that you may not have all the answers and demonstrate the humility to look both inside and outside the organization to find them. 47% of respondents in high-performing transformations said that leaders accepted ideas from more junior personnel versus 29% of respondents in low-performing transformations.

How human-centric transformation can double your success

2. Perception and inaction

If failing to address long-term risks can place companies in peril, why do businesses fail to adequately address them? Incentive structures can amplify the skew towards short-termism. For instance, since managers are measured and rewarded based on quarterly financial performance, there is a disincentive to invest in risk mitigation efforts that might pay off in the long term but impose costs in the near term. The reluctance to take on long-term risks may also be a result of how they are perceived. “Leadership teams often view long-term, strategic risks as beyond their control,” says Tonny Dekker, EY Global Consulting Enterprise Risk Leader. “For risks that are driven by larger forces which management teams cannot control, such as geopolitics, managers may assume that there is little-to-nothing they can do to control or mitigate them.”

What unseen megatrends will shape your transformation?

3. Putting people at the center

As the world of work becomes increasingly digital and distributed, organizations will have to make structural changes to cater to people’s deep desire for flexibility. Leaders will need to listen to employees to find out what they want and make sure the organization’s perception of their experience matches reality. This may mean combining employee pulse surveys and focus groups with passive data sources to create a set of workforce personas that illustrate people’s preferences. This could also lead to better understanding of what the working experience needs to be, the operational processes needed to support, and how specialist teams can best work with the business leadership to deliver the changes required.

“There's no substitute for the human-centered design approach to help us understand what people need in an empathetic way,” says Maya Smallwood, EY Global People Advisory Services Employee Experience Leader.

How flexible organizations can create stability in the Great Resignation

4. Creating more than electricity

The world's largest offshore wind farm is now in full operation just off the coast of the north of England. While it can generate enough electricity for around 1.3million homes, it’s creating more than power for the region. The UK’s Humber region has become a "cluster" for offshore wind, helping revitalize the region after a period of economic decline. The area is now home to several operational offshore wind farms, with a range of new jobs in renewable energy plants, as well as manufacturing and other high-skill positions. Governments and leaders cannot ignore communities who stand to lose out from the green transition, such as coal miners and oil workers. It’s clear that support like these projects will be needed to diversify the economy in regions where jobs or livelihoods are at risk and to help provide new green employment opportunities.

Six ways that governments can drive the green transition

5. What to stop, start or continue

Like any future leader, the next generation leaders of private or family enterprises will inherit or adopt operating models, institutions and systems that have served the organization well in the past. The board is one such institution.?Admittance to the board is a destination many future leaders may seek and need to prepare for. Those seeking to serve or currently on boards need to ask themselves, how do I add value to the board dynamic? How do I influence the board, so the organization is ready for the future ahead? The same thought process could be applied for those looking to lead other areas of society.

How NextGen decision makers can meet tomorrow’s challenges

If you do one thing:

A leader is their team. Emphasize a “we” approach through collaboration and communication.

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