Harnessing the Cultural Rhythm as CEO

There continues to be plenty of debate about how the role of the leader is changing. Emotional intelligence (EQ), authenticity and trust are frequently cited as key qualities to be a successful CEO or senior executive. In reality, uncertainty remains in the minds of executives about how, in practical terms, this translates into making decisions at the highest level.

For me, there are three questions that leaders need to ask:

• As an organisation, are we inward or outward looking?

• What steps am I personally taking to broaden my perspective?

• Am I able to balance the short and long-term interests of the business?

When mentoring executives, chairing and as a leader, I find that those individuals who are in the best shape to succeed possess the ability to influence others while also being equally welcoming of constant input, advice and experiences that widen their own circle of knowledge.

So what does this actually mean?

Success as a leader demands an outward looking approach, somebody who is both inspiring as a role model and still open-minded enough to be inspired by others. I can’t overstate how important it is to encourage others and be receptive to new ideas. Leaders need to accept that the business landscape is complex and constantly changing and, as a result it’s no longer possible or desirable for one person to know and control everything.

Difficulties occur in organisations when CEOs lack EQ, curiosity and a degree of humility. They stifle discussions on topics they don’t understand, surrounding themselves with like-minded people. In all likelihood, such CEOs might fear what’s new, deeming it to be a threat or distraction to the core business and the way things ‘traditionally’ have been done.

This particular rhythm of leadership reverberates through a business. Almost inevitably, the default setting of middle management and the wider workforce is to be inward looking, they withhold information rather than share it. Organisational design will often reinforce divisions and siloes in the rigid structure of reporting lines, KPIs, bonuses and remuneration.

The real skill of a leader today is to set the tempo of the business by creating diverse leadership teams. Bringing in people who balance technical excellence with the understanding that good communication is now a vital leadership skill. They can operate on different levels, delivering on core business goals to ensure targets are met while also exploring medium to long-term strategies. It’s by no means easy, but at the highest level leaders simply cannot afford to be consumed by the day-to-day.

Solving the technology puzzle

The challenges executive teams face around ‘digital’ exemplifies the systemic problems of an organisation having the wrong cultural dynamic. ‘Digital’ has become a catch-all term, encompassing mobile, the cloud, social media, data and analytics and, more recently, the internet of things (IoT). Spending on the IoT alone is predicted to reach $500 billion globally by 2020, compared to $20 billion in 2012.

We are talking huge amounts of investment. And yet, how many organisations are struggling with the implementation and roll-out of digital strategies?

Fundamentally, technology is only the enabler. While it’s no surprise to learn that investment in digital is increasing, equal attention should be paid to whether a business has the right mix of leadership and cultural capabilities. Unless a culture is open, whereby employees are empowered to make decisions and are engaged by a wider sense of purpose, whether that’s delivering great customer experience or a relentless focus on sustainability, then new ideas will be bracketed as alien and dully rejected.

Unfortunately, boards can be reluctant to ask the tough questions around leadership competency. In the lingua franca of the boardroom, the word ‘culture’ is traditionally taboo. Rather, discussions are on ‘tangibles’, such as financial results and reporting which, although absolutely necessary, do not address whether the top team have the qualities to deliver success (why shouldn’t culture be seen as a key risk?). Indeed, in the case of technology, many boards are finding out the hard way that hiring a Chief Digital Officer won’t be enough when it comes to transforming an entire business model.

Of course, there are exceptions. Not all executive and non-executive directors underestimate the significance of culture. Awareness is growing that leadership is constantly evolving and, allied to this, organisational structures are not fit for purpose if collaboration, innovation and flexibility are to be encouraged.

I believe that trust and a sense of purpose play significant parts in people responding to this new rhythm of leadership. Senior executives need to be able to reflect more on what impact their decisions have on others, which includes their direct peers, the wider workforce and other stakeholders. It’s about being inclusive, not divisive.

Undoubtedly, this adds additional layers of complexity to what are already high-pressured, demanding roles, but there’s no escaping the greater expectations now placed on CEOs and senior executives.

Context is everything when it comes to leadership. If you’re going to perform to the highest level, you simply have to be cognisant of the ecosystem you operate within.

Thanks to Marc Barber for editing