Disruption is everywhere. So now what?

I love the Fourth of July holiday. It’s a great time to experience all that summer has to offer while spending time with family and friends. Over the holiday this year, I had a chance to watch an amazing fireworks show with my family. I find the excitement brought about by every colorful explosion to be exhilarating.

In many ways, I experienced the same level of thrill and excitement as I read through EY’s megatrends report. The degree of global disruption and the pace of positive change behind each megatrend is in many ways as breathtaking as that fireworks show I enjoyed on the Fourth of July. Doing business in today’s world of rapid change is daunting for sure, but the upside of global disruption is incredibly exciting.

A logical place to start is understanding the megatrends in the context of your industry and company. But not so fast – I’m a strong believer in the staying power of purposeful leadership, and I know that this exercise of understanding the megatrends must be done through the lens of purpose. When purpose is partnered with the velocity of change, real transformation happens.

Purpose + change = long-term value

While there are 10 new megatrends in the report, I gravitated toward three – future of work, adaptive regulation and innovating communities – as the embodiment of where purpose and transformation together will make the biggest change in our world.

The meaning behind transformation

As disruptive technology bombards business operations, how can leaders prepare for a vastly different work force? The future of work epitomizes transformation, and where we are guaranteed transformation, we should always look for a greater purpose to drive meaningful long-term value and sustainability for our businesses, employees, stakeholders and community.

One of my favorite examples of purposeful transformation is Junta de Beneficencia de Guayaquil (JBG), one of Ecuador’s most prominent nonprofit health care and elder care organizations with a mission to improve the quality of life for the underprivileged in their community. With the help of the EY organization, JBG underwent a massive internal transformation to ensure the rapidly growing company will be able to provide services to the community effectively and efficiently for years to come. The goal: promote a transparent and accountable work culture with purpose at the forefront to achieve self-sustainability.

In a total overhaul of its governance, operating and organizational models, JBG separated its four functions – education, hospitals, elderly care and cemeteries – to work and grow independently but share best practices and innovations. This move allowed the board to better control risk while ensuring financial and operational targets are met, and the community continues to receive the care and support it needs in the future.

JBG is a great example of purpose + change = long-term value.

Time to get real

Consider the prickly world of regulation where there’s a lot more at stake than reporting and compliance. Regulators, policymakers and business leaders have a part to play in balancing competing interests. What role could purpose play in regulation? Consider shared economy platforms like ride-sharing and lodging that are raising challenges for jurisdictions and business owners. Adaptive regulation suggests open data, inspired by open-source software, as a way to allow real-time, public domain information to drive new regulations built on relevant social contracts.

The purpose behind adaptive regulation is not beating competition or beefing up your bottom line, but building a better, more efficient tomorrow. This more open, dynamic approach to business will require risk-taking and shifts in thinking but will ultimately cost less and be more effective for businesses and taxpayers.

Singapore and Boston are already sharing data with the public in machine-readable formats for increased government transparency and accountability. And regulatory technology (RegTech) companies are making great strides in the financial services industry – implementing artificial intelligence software to more efficiently decode ever-changing regulation mandates. These leaps are impacting other industries as well. If leaders keep their eye on the purpose behind changing regulations, they’ll be in a better position to leverage the upside of disruption.

I truly believe that regulation can be adaptive, drive positive change and create long-term value.

Heart of the matter

Many business leaders run their companies with an intensity to deliver a successful bottom line. But does that mean they’re great leaders? Science shows that leaders driven and motivated by heart, not numbers, last longer and perform better. In an EY study with Harvard Business Review, 84% of executives said a strong sense of purpose positively affected their ability to embrace transformation, and 58% of those whose companies were found to be prioritizing purpose had enjoyed revenue growth of at least 10% over the last three years. This seems significant for any leader navigating transformation.

I’ve mentioned my friend Bruce Deel before, but his relevance as both a heart-centered leader, and as an example of being ahead of the curve in transforming one of Atlanta’s toughest neighborhoods, makes him worth mentioning again.

Bruce is at the forefront of innovating communities – another major megatrend that puts the spotlight on the changing dynamics of cities and the future of urbanization. As the Founder and CEO of City of Refuge, Bruce knows that life and social transformation are the cornerstones of his business. For over two decades, City of Refuge has provided life-saving resources that provide life-building tools to transition individuals and their families from poverty to independence. Focusing on housing, vocational training, youth development, education and health and wellness, the organization’s success has attracted both public and private partners to join the work. The momentum is so strong, Bruce’s vision aspires beyond Atlanta to become a model for other cities around the world.

Bruce Deel and City of Refuge – purposeful change driving long-term value.

There are 10 new megatrends for 2018, but these three – future of work, adaptive regulation and innovating communities – speak to me as the most transformative to the way we live and work today. Remember, there’s always space for purpose and intention in business transformation.

What do these megatrends mean to your leadership team and organization, and how can you lead with purpose to drive meaningful long-term value for your business?