Mindsets, Not Skillsets: The Key to Thriving in the Transformative Age

Last week, over two thousand entrepreneurs and industry leaders landed in Palm Springs to attend EY’s annual Strategic Growth Forum. For five days, rising entrepreneurs, Olympic athletes, musicians, actors, and seasoned executives shared insights on how to accelerate organizational growth—and drive our economy forward—in an era of rapid change.

This diversity of backgrounds and ideas is what creates such a vibrant ecosystem at SGF. But when you talk to the entrepreneurs, in particular, it’s clear that they all understand—and represent—the same vital truth about thriving in this era of disruption: it’s about more than just skillsets. It’s about mindsets.

Right now, we’re living in what we at EY call the Transformative Age, where shifting consumer demands and emerging technologies are transforming how we all do business. In this fast-changing environment, we can’t rely on skillsets alone to carry us through the turbulence—because the skills we learn today are becoming obsolete faster than ever. Indeed, the World Economic Forum estimates that, by 2022, at least 54% of all employees will require significant reskilling.

The right mindsets, on the other hand, will serve us all throughout our careers, no matter what changes lie ahead. At SGF, the most successful entrepreneurs demonstrate three crucial mindsets in particular: a focus on growth, innovation, and inclusivity.

Growth Mindset

People often talk about the ambition that animates successful entrepreneurs—including those at SGF. In fact, our conference theme this year, “Unleashing Ambition,” is a celebration of this entrepreneurial drive.

But leading entrepreneurs aren’t just ambitious about their business goals—they’re equally ambitious about constantly developing their own talents and abilities. They never stop learning, viewing failures as an opportunity to grow and evolve. They’re more resilient in the face of adversity, and more prepared to tackle new challenges ahead.

Tim and Karrie League, co-founders of Alamo Drafthouse—and regional winners in EY’s 2019 Entrepreneur of the Year program—embody this mindset of continuous learning and self-improvement.

After brief stints in the oil industry and biomedical research, the Leagues pooled their resources to start an independent movie theater in Bakersfield, California. The project foundered: they failed to secure a liquor license, struggled to brand themselves, and faced empty seats night after night. In 1995, after the theater shut down just two years after opening, Tim and Karrie moved to Austin.

Many people might have given up after their first enterprise failed. Instead, the Leagues transformed their struggles in Bakersfield into insights that grew their new business. They assembled 200 theater seats, a projector, a screen, and some speakers. They obtained a liquor license and made sure to establish a strong brand that connected with their community. Today, the Alamo Drafthouse has theaters in 11 cities, with four more on the horizon.

This willingness to keep learning—and this ability to turn failures into success—is a trait shared by many successful entrepreneurs. In their case, ambition isn’t just about aiming high. It’s about resiliency and finding and forging the path from failure to success.

Innovation Mindset

Of course, the businesses thriving today aren’t just aggressively pursuing growth; they’re re-inventing themselves before the market does it for them. They’re approaching their work with an innovation mindset and investing in capabilities that will set them up for the long term.

Richard Margolin, founder and CTO of RoboKind, offers a great example of this mentality. Like so many innovative entrepreneurs, he focused on fostering a culture of curiosity, inspiration, and new ideas. And, equally importantly, he anchored that culture in a larger sense of purpose—a North Star for what he wanted to achieve, and why.

Richard was working at a humanoid robotics company when he first encountered studies suggesting that robots could help autistic children develop social skills and self-awareness. Though the research was there, Richard realized that the technology wasn’t—so he founded RoboKind, a company that combines the talents of engineers and educators to transform how children with autism spectrum disorders learn.

Together, they created Milo, a robot that leverages cutting-edge artificial intelligence to mimic human facial reactions and social gestures so learners can practice their conversational interactions. Milo has helped nonverbal individuals across the country improve their social and behavioral skills and build the confidence they need to succeed both academically and socially.

RoboKind exemplifies the kind of purposeful innovation and collaboration that’s required in the Transformative Age. By breaking down disciplinary silos, Richard cultivated an environment where computer scientists and autism experts could inspire one another to ask new questions, devise creative solutions, and help autistic children everywhere reach their full potential. 

Inclusive Mindset

Before Molly North agreed to take over as CEO of the commercial real estate development firm Al. Neyer, she had one condition: the firm, which had long been family-owned, would transfer ownership to its employees.

It was the act of truly inclusive leader—one who recognized that people perform at their best when they feel valued by their organization, and when everyone has a seat at the table. It’s the same reason Molly’s taken steps to increase diversity and inclusion at the company, bringing a number of women into the executive ranks of a traditionally male-dominated industry. And to make sure that all of her people feel fully included, she’s focused on creating a culture that welcomes everyone and encourages them to share their best ideas. It’s a tone she sets from the top by dedicating a significant amount of time to talk to her employees face-to-face. The sense of belonging she’s cultivated is so great that in nearly five years as CEO, only a single one of her direct reports has left the company.

Molly believes that this approach has created more camaraderie among the staff—and the research underlines how valuable this is for a business. Inclusive companies are more creative, more engaged, and more profitable. And when people feel like they belong, they’re 3.5 times more likely to contribute and unleash their full innovative potential.

Under Molly’s leadership, Al. Neyer has pursued projects from a starting point of inclusiveness, too. Before beginning a $41 million development project in Cincinnati, the firm made sure to bring in multiple minority-owned investor groups. That way, a much wider community of people could be included in the project’s success. As Molly said, “Minority investors are not heavily engaged in commercial real estate dealings, and this is one example of a way we can take advantage of a project to develop new wealth and raise up our entire community.”

Amid the uncertainties of the Transformative Age, building trust and belonging has become increasingly important. Maintaining an inclusive mindset helps business leaders cultivate both—and ensures that everyone has a seat at the table.

The Transformative Age is a time of both unprecedented risk and limitless opportunity. With the arrival of new technologies, new industry models, and new consumer expectations, there’s never been a more exciting time to lead a business.

If business leaders embrace the right mindsets, they’ll be well equipped to make the most of this moment and its limitless opportunities. And as long as we keep sharing our best practices and crowdsourcing our best ideas, we can continue to build a better working world—together.

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