Empathetic leadership is no longer a “nice-to-have”; it is fundamental for enterprise success

“Courage is rightly esteemed the first of human qualities, because, as has been said, it is the quality which guarantees all others.” Winston Churchill

When times are good, it is easy for leaders to offer praise and gratitude. It is during challenging times a leader’s true character and capacity for empathy is tested. For every leader, listening and vulnerability establish the building blocks for empathetic leadership. And while sometimes it is difficult for leaders to let their guards down and lead with vulnerability, the events over the past year not only make empathetic leadership a “nice-to-have,” but it is also now expected.

As we continue through these tumultuous times and look ahead to the future, I would like to take stock and reflect on what I have learned – as a father, husband, friend, colleague, and business leader. My personal development over the past year prepared me more fully for my new role to lead our organization’s transformation efforts. Fundamentally, for all the great work that we can do as leaders from a technical perspective, if it lacks the intangibles of vulnerability, empathy, transparency and humanity, it will be for naught. Building out and scaling these leadership values are central in my role of driving organization-wide innovation and transformation to create long-term value.

Here are three important considerations to keep in mind for every leader, especially as we embark on organization-wide transformation journeys:

1. Empathy and vulnerability are the new norms for leadership. An effective leader must be able to set a clear and compelling vision to achieve organizational alignment and overcome obstacles. Agility without vision risks becoming a wandering journey. At the same time, though, leaders must accept their own limitations and feel comfortable admitting that they still have much to learn. Whether you are face-to-face in an office or connected virtually from home, leaders earn trust and respect from embracing adversity and authenticity. These are all fundamental drivers that inform effective leadership.
2. Employees and customers must be at the heart of any transformation effort for it to be successful. For more than 30 years, I have helped Fortune 500 companies adapt and transform. It is no surprise that the most successful organizations have put employees and customers at the heart of any transformation initiative. It was true back then, and even more so now. Digital transformation efforts will continue to accelerate and intensify throughout 2021 – and understanding how to integrate a proper change management strategy that focuses on skills-building and flexibility will be key. The COVID-19 pandemic has, in effect, made 2021 feel like 2023 -- accelerating the pace of change on the digital transformation timeline.
3. More than ever, corporate purpose and societal value are indispensable. Employees, customers, investors and the communities in which businesses operate demand that organizations demonstrate social, environmental and economic stewardship. Our global strategy and ambition to create long-term value for clients, people and society is our purpose: to build a better working world. Having a company’s distinct purpose in mind is what will help sustain companies for the long term. Without it, capital and talent will shift from organizations that focus too narrowly on their own set of interests to those that create long-term value for a much broader set of stakeholders.

Saying and doing are two different things. To create real value, there needs to be objective measures in place to demonstrate transparency and drive accountability. Part of this is determining what you want to measure and establishing clear metrics that measure the effects of social and human capital throughout an organization’s value chain.

I think we have a lot to be optimistic about this year. We can use 2020 – a year of challenge and change – to create a better future, leaning into our collective humanity and thinking more broadly about societal betterment and justice. With those ideas in mind, I look forward to continuing the conversation.

The views reflected in this article are the views of the author and do not necessarily reflect the views of the global EY organization or its member firms.