Hay Group Leadership 2030 Whitepaper


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Hay Group analiza las capacidades y aptitudes que deberán poseer los líderes del futuro. (En inglés)

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Hay Group Leadership 2030 Whitepaper

  1. 1. Building leader the new Leadership challenges of the future revealedAccording to Hay Group’s Leadership 2030 researchthe leaders of the future will need a host of new skillsand competencies if they are to succeed >>
  2. 2. ContentsIntroduction 21 The global balance of power is shifting 52 Climate change and scarcity of resources is a mounting problem 63 The war for talent rages on 74 Accommodating growing individualization 85 Embracing the digital natives 96 Harnessing technology to innovate 10Conclusion 12
  3. 3. 2 Building the new leader | Leadership 2030 Introduction Leaders of the future will need to be adept conceptual and strategic thinkers, have deep integrity and intellectual openness, find new ways to create loyalty, lead increasingly diverse and independent teams over which they may not always have direct authority, and relinquish their own power in favor of collaborative approaches inside and outside the organization. To successfully develop this combination of Megatrends are long-term processes ofMegatrends are skills and qualities – and adopt what is, in transformation on a global scale with a broadlong-term processes effect, a ‘post-heroic’ leadership style – they scope and dramatic impact. They can beof transformation on may need to abandon much of the thinking observed over decades and can be projecteda global scale with and behavior that propelled them to the top with a high degree of probability at least 15a broad scope and of their organizations in the first place. years into the future. They affect all regions and stakeholders, including governments,dramatic impact But if they want their businesses to survive businesses and individuals. And they and thrive over the next two decades they transform economies, societies and policies have no choice. Unless they dramatically at a fundamental level. change their leadership style, starting from today, their organizations will lose out The six megatrends Hay Group singled out are: in the race for innovation, the march to 1 Accelerating globalization (‘globalization 2.0’) globalization and the war for talent. They 2 Climate change, its environmental impact will be, quite simply, unsustainable. and scarcity of resources 3 Demographic change This is the conclusion Hay Group has 4 Individualization and values pluralism reached after working with Germany-based 5 Increasingly digital lifestyles foresight company Z-Punkt to identify 6 Technology convergence. the megatrends they believe will affect Several of these have already been researched organizations and their leaders profoundly intensively. But they have not, until now, been over the coming decades and analyzing researched in the context of leadership. Nor the implications of each at a corporate, have these six particular megatrends ever been organizational, team and individual level. investigated in one single piece of research.©2011 Hay Group. All rights reserved
  4. 4. Individualization Digital lifestyle Demographic change Technology convergence Globalization 2.0 Changing working Climate change patterns Corporate environment Organization Personal and team level LeadershipOrganizations will have to radically adapt to manage through influence rather thantheir cultures, structures, systems and authority, which may not come easily toprocesses in order to survive the new many. Indeed, the demands the dramaticallyworld order – and managing in matrix changing business climate will have onstructures, where information flows around leaders at a cognitive, emotional andthe organization and around the globe in behavioral level will be unprecedented.a way that renders traditional hierarchies We summarize the megatrends, and theirand reporting lines redundant, is one of organizational and leadership implications,the biggest challenges. Leaders will have on the following pages.
  5. 5. 4 Building the new leader | Leadership 2030 Leaders will have to be multilingual, flexible, internationally mobile and adaptable. But, most crucial of all, they must be highly collaborative and have strong conceptual and strategic thinking skills©2011 Hay Group. All rights reserved
  6. 6. 1 The global balance of power is shiftingIncreasing globalization is a given, with international competitionlikely to grow fiercer and markets even more diversified.Yet the nature of globalization is changing making, having more culturally-diverse(hence the term ‘globalization 2.0’), largely leadership teams and encouraging more cross-due to a shift in the global balance of power country and cross-functional collaboration.to Asia and to the rise of a global middle class. They will also need to be more agile, as theAsian management practices and models will best global companies operate like a flattenedbecome more influential; emerging nations are matrix, where information and authority flowincreasingly trading between themselves; and, in all directions.despite the rise of a global middle class, regionalmarkets are behaving more idiosyncratically, The strategic thinking and cognitive skillswith local ‘re-regionalization’ a feature of the leaders will need to navigate this newnew world order. What’s more, the global world order are unprecedented. Goodbusiness world is getting riskier: greater inter- implementation and execution are no longerconnectedness creates greater volatility, making enough – if, indeed, they ever were. Also, thefinancial crises, pandemics and cyber-terrorism task is so enormous that it is beyond the powerincreasingly likely. of one single individual to accomplish, making Food for thought collaboration among a range of different peopleWhile globalization is unstoppable, therefore, essential even at the stage of conceptualizing In the West theits progress won’t be smooth. Organizations challenges. What globalization 2.0 makes number of jobs isneed to be aware of and sensitive to the abundantly clear is that the days of one or two falling; in the Eastchanging political and economic sensibilities ‘heroes’ at the top of organizations dictating leaders are having toin different countries – particularly emerging strategy are well and truly over.and developing economies – which could learn how to managereduce global interdependence and accessibility, So, as well as being multilingual, flexible, in new markets asat least in the short term. What’s more, while internationally mobile and adaptable, and Eastern companiesconsumption patterns among the new middle culturally sensitive, leaders will also have to expand westward.classes are converging, the values of those in be collaborative and good conceptual and How is acceleratingemerging nations may differ widely from those contextual thinkers. Additionally, they will need globalization affectingin the West. the ability to lead diverse teams over which they may have no direct authority and to find your home market?In practical terms, this means that international new ways of engendering personal loyalty in an How are government,companies need to adapt their global strategies environment where the old loyalties between your company and youfor local markets – a process that will be helped employer and employee are declining due to personally responding?by fostering local participation in decision- the distance between them.
  7. 7. 6 Building the new leader | Leadership 2030 2 Climate change and scarcity of resources is a mounting problem The problems caused by rising CO2 emissions and temperatures will be aggravated by growing industrial and residential waste in emerging and developing countries. Meanwhile, the growing scarcity of strategic And firms must accept rising costs resources such as water, minerals, metals – both in terms of raw materials and and fossil fuels will cause price hikes and more environmentally sustainable processes could trigger regional and global conflicts. – as part of their license to operate. Greater environmental responsibility and accountability will be the inevitable corollary Leaders will need outstanding cognitive and investment in clean technology will rise. skills to balance the competing demands of financial success, social responsibility Clearly, organizations that lower their and environmental custodianship. eco-footprint will see direct benefits They must also act as change agents, to their performance, bottom line and advocating environmentally responsible competitiveness, so restructuring along business practice within and outside the sustainable lines has become a strategic organization, and forging new levels of imperative. There will also need to be greater intra-and inter-company collaboration collaboration between organizations to in order to encourage team, rather than find solutions to environmental problems. individual, solutions. Food for thought How will climate change affect your organization in terms of the amount you will need to invest in employee benefit plans, health and safety and so on? And to what extent will reduced margins compromise your leaders’ ability to deliver?©2011 Hay Group. All rights reserved
  8. 8. 3 The war for talent rages onThe world population is growing and ageing, but there aredemographic imbalances. In the industrial countries of the Westand China, for instance, life expectancy is rising but populationsare stagnating or declining, whereas populations in developingcountries are booming.Industrial countries will suffer skills attract, integrate and develop internationalshortages and pressure on the welfare migrants, older people, women and otherssystem, and migration will increase – not with ‘caring’ responsibilities. This willjust from the more to the least populous mean introducing family-friendly andcountries, but also as a result of armed age-appropriate employment models, alongconflicts, disasters and environmental with educational and development programsproblems. However, the ‘brain drain’ will – not least those designed to transferincreasingly turn into a ‘brain cycle’ as knowledge between different generations.growing numbers of migrants return homeand use their new skills to accelerate local Leaders will need to understand, lead,development. But talent will continue to be integrate and motivate teams of increasinglyat a premium and retaining employees with diverse employees. Fostering inter-generationalkey skills will be a challenge. and inter-cultural teamwork is essential, as is finding ways to engender commitmentIndeed, for organizations this means that and loyalty among people of different ages,the ‘war for talent’ will continue to rage, from different cultures and with differentwith knock-on effects on their innovation values. Leaders will also have to adaptcapability. But they have an unprecedentedly their organizations in order to encouragediverse pool of potential employees to more women and other ‘minorities’ intodraw on, and will have to work hard to leadership positions.Food for thoughtWill ‘jobs’ as we currently understand them exist in the future? Or will we allbe contractors? What’s more, neither the young nor their older colleagues arelikely to be interested in working 12-hour days for very much longer
  9. 9. 8 Building the new leader | Leadership 2030 4 Accommodating growing individualization Individualization is the growing freedom of choice expected by and granted to individuals within societies and communities. Careers play an increasingly important into the conventional leadership mold. role in the quest for self-fulfillment and Individualization leads to decentralized self-expression, a shift that is driving workplaces characterized by flatter, more greater convergence between private and flexible, structures, cross-functional project working lives and a desire by individuals to teams and higher turnover. integrate personal and professional goals. Individualization has an enormous impact on The post-heroic leader will need to balance employees’ loyalty and motivation to perform, the roles of boss, mediator and coach, allowing with ‘soft factors’ such as recognition, self- teams more freedom and autonomy while development, self-direction, values-driven keeping them focused on objectives. They engagement and work-life balance often will also have to recalibrate their criteria taking precedence over traditional factors for leadership and re-think their approach like pay and promotion. to loyalty and retention, fostering good individual relationships with current and Redesigning work processes to better suit former team members to avoid a domino-style individuals rather than the organization disintegration should one person leave. has now become de rigueur. This involves establishing conditions that promote Leaders will have to work harder at generating independent work and time management, personal loyalty, through accommodating so allowing employees time for their personal employees’ requirements, enabling self- projects. What’s more, with creative output directed ways of working and individualized recognized as a main driver for economic leadership. Developing relationships beyond success, a new ‘creative class’ is springing up the direct work environment to reflect the – and, with longer education, career breaks, continuing value to the organization of those frequent job changes and even periods of who leave its formal employ will also be key. unemployment, they don’t necessarily fit Departure no longer equates to ‘disloyalty’. Food for thought How can we train leaders to ‘zoom in’ in order to understand the unique needs of their people while at the same time maintaining the appropriate ‘social distance’? Will we have to separate the role of leader (collaborator, talent finder, coach) from that of manager (task driver, performance manager, salary provider)?©2011 Hay Group. All rights reserved
  10. 10. 5 Embracing the digital nativesNew media will continue to blur the boundaries betweenprivate and working lives.Individuals are ‘always on’, more and more seniors. However, while technological prowessbusiness is conducted ‘virtually’, and power is can aid innovation, digital natives’ over-shifting to employees – particularly the rising reliance on technology and their lack of socialclass of digital knowledge workers, who can skills equip them poorly for leadership roles.work anywhere and forge large numbers ofloose digital connections with both personal Leaders will have to learn to lead remotely,and business contacts. but must guard against relying purely on virtual communication. Combining virtualDigital knowledge is fast becoming the and face-to-face contact is important forpowerhouse of the global economy, its both effective decision-making and fosteringinstantaneous exchange facilitated by the motivation and loyalty.internet. Digital tools offer cheap, easy and fastcommunication, co-operation, organization and In an increasingly digitized world, powerproduction, and workplaces are no longer tied shifts towards the digital natives, who are ableto bricks and mortar locations. to share information – positive and negative – instantly with a global audience via theLeaders must embrace the creativity, curiosity, internet. This makes integrity and sincerity ofand open minds of ‘digital natives’, but offer paramount importance in organizations. Asframeworks and guidance where needed. They such, leaders have to provide ‘digital wisdom’must also foster collaboration and knowledge – clear, transparent and practical guidance toexchange between them and older workers to using new digital technologies – as well as role-bridge the information gap. At first glance, the modeling and fostering high levels of openness,digital natives’ mastery of technology might integrity and sincerity to preserve corporateappear to better qualify them to lead than their reputation in a more transparent world.Food for thoughtIf you find and keep digital natives who work from home, will that put youahead of the curve in terms of reducing travel costs and office overheads and,in turn, reducing your environmental footprint?
  11. 11. 10 Building the new leader | Leadership 2030 6 Harnessing technology to innovate Miniaturization and virtualization will drive the convergence between nano-, bio- and information technologies and cognitive sciences, spurring innovation and accelerating research and development in many fields. ‘NBIC’ technologies are already driving rapid Despite their lack of detailed knowledge, advances in medicine, energy, environmental leaders must be open to – and advocates protection and production processes, and their of – visionary ideas. They must encourage potential for transforming other areas is huge. innovation and collaboration and act as orchestrators of expertise from within and Actionable knowledge of complex outside the organization in order to harness technologies will become a key business the potential of converging technologies. competence, even in non-technological Helping to counter doubts about these new fields. But the complexity of NBIC makes technologies, the acceptance of which will inter-corporate knowledge exchange vital, determine the success or failure of innovations and ‘business mash-ups’ (collaborations and and new products, is crucial. Leaders may not cross-sector partnerships) will become more be experts themselves, but they must know common. Adaptation will become critical enough to keep projects focused and to hold for survival, and willingness to integrate the ring between the competing views of other players in corporate endeavors different team members. In so doing, they will will lead to more open structures and have to work through informal influence across de-compartmentalized organizations. functional and organizational boundaries. Food for thought Are you and your organization open to new ideas, or do you tend to reject them because you are conditioned by received wisdom? Do you adhere to ‘best practices’ or do you think more laterally about ‘next practices’?©2011 Hay Group. All rights reserved
  12. 12. Actionable knowledge of complextechnologies will become a keybusiness competence
  13. 13. 12 Building the new leader | Leadership 2030 Conclusion Organizations and their leaders face a tough, but not insurmountable, challenge, as those companies already adapting or preparing to adapt to the new world order demonstrate. And, as ever, the ‘Best Companies for Leadership’ are in the vanguard of post-heroic leadership approaches. For example, the Top 20 are looking and ensure their employees are able to strike everywhere for leadership, innovation a good balance between work and the rest of and ideas – not just up the hierarchy. their lives. They are becoming more effective by ensuring the diversity of their leaders and But even their journey has just begun. workforces reflects the growing diversity in Adapting to a world being rapidly reshaped by their markets. And they are improving their these six megatrends is like entering uncharted cross-cultural leadership and collaboration territory. But organizations have to push on: accordingly. They are also more socially and there is no alternative. Old structures and environmentally responsible than their peers, leadership styles just won’t cut it any longer. Unlock the future of leadership – for more content, visit HayGroup.com/Leadership2030 or scan the QR code
  14. 14. New leadership competenciesThe new business world order will challenge leaders on three levels: cognitive,emotional and behavioral.CognitiveLeaders need new forms of contextual awareness, based on strong conceptual andstrategic thinking capabilities.They need to be able to conceptualize change in an unprecedented way, again based onconceptual and strategic thinking.Leaders need to exhibit new forms of intellectual openness and curiosity.EmotionalOverall, leaders will need to be much more sensitive to different cultures, generationsand genders.They will need to demonstrate higher levels of integrity and sincerity and adopt a moreethical approach to doing business.They must also tolerate far higher levels of ambiguity.BehavioralLeaders must create a culture of trust and openness.As post-heroic leaders they must rethink old concepts such as loyalty and retention andpersonally create loyalty.Collaboration – cross-generational, cross-functional and cross-company – will betheir watchword.They must lead increasingly diverse teams.
  15. 15. Africa Frankfurt Middle EastCape Town Glasgow DubaiJohannesburg Helsinki RiyadhPretoria Istanbul Tel Aviv KievAsia Lille North AmericaBangkok Lisbon AtlantaBeijing London BostonHong Kong Madrid CalgaryHo Chi Minh City Manchester ChicagoJakarta Milan DallasKuala Lumpur Moscow EdmontonMumbai Oslo HalifaxNew Delhi Paris Kansas CitySeoul Prague Los AngelesShanghai Rome MontrealShenzhen Stockholm New York MetroSingapore Strasbourg OttawaTokyo Vienna Philadelphia Vilnius Regina Warsaw San FranciscoEurope Zeist TorontoAthens Zurich VancouverBarcelonaBerlin Washington DC Metro Latin AmericaBilbao BogotáBirmingham Pacific Buenos AiresBratislava Auckland LimaBristol Brisbane Mexico CityBrussels Melbourne San JoséBucharest Perth SantiagoBudapest Sydney São PauloDublin WellingtonHay Group is a global management consulting firm that works with leaders totransform strategy into reality. We develop talent, organize people to be moreeffective and motivate them to perform at their best. Our focus is on makingchange happen and helping people and organizations realize their potential.We have over 2600 employees working in 84 offices in 48 countries. For moreinformation please contact your local office through www.haygroup.com