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MAY 2023
Leadership with a
Powerful Purpose
Leadership is central to transformation success
Source: BCG Transformation Check 2022.
Energize and engage the
organization by defining
and cascading its purpose
and case for change
Support leaders in
activating key behaviors
and driving change
x2.3
Align senior leadership on
scope and help employees
understand why they need
to be part of the change
higher transformation
success rate
higher transformation
success rate
higher transformation
success rate
x3 x1.5
Yet leadership engagement in transformations remains lower than before
the pandemic
Sources: BCG transformation check analysis, 2020, 2021, 2022.
1
Based on self-assessment by survey respondents.
Average transformation success against expectations1
Value realization
Cost to achieve
Duration
Leader engagement
Employee buy-in
2020
~73% ~46%
+15% +32%
+19% +69%
~53% ~45%
~64% ~59%
–45%
+31%
+69%
–38%
–60%
2021 2022
Value realization initially declined during the pandemic
and has since remained stable
Cost overruns nearly doubled during the pandemic and
are still higher than expected
Timeline delays tripled during the pandemic
Leader engagement has decreased significantly since the
pandemic, showing a ~40% drop within two years
Employee buy-in declined during the pandemic and has
since increased slightly
Generative leadership is a purposeful approach to build for the future through
the head, heart, and hands
Source: “Why the World Needs Generative Leaders,” BCG.com, March 17, 2022.
From extractive . . .
Consume resources by focusing on business growth
and profitability, regardless of other consequences
. . . to generative
Grow and expand resources by putting society and
the planet at the core of the businesses
Head Heart Hands
Reinventing business to serve all
stakeholders
Inspiring and enriching the
human experience
Executing and innovating through
supercharged teams
Fully engaging head, heart, and hands is key to sustaining performance
improvements from a transformation
Source: “Why the World Needs Generative Leaders,” BCG.com, March 17, 2022.
Companies with sustained performance improvement (%)
Partially engaging
Head, Heart, and Hands
Fully engaging
Head, Heart, and Hands
33% 96%
Building purpose-driven, generative leadership for the future is a multistage
transformation journey
Source: BCG analysis.
Stagnating
Yet to define a purpose and
get digital transformation
right—limited value
created
Emerging
Executed successful
programmatic
transformation with a
purpose, but challenges
in effectively scaling
organization-wide
Programmatic approach to fix the core and build a
foundation for innovation (digital transformation)
Embed and scale cross-functional attributes to pivot to
growth from innovation (continuous innovation)
Scaling
Embedded purpose across
the organization and
delivered multiple waves
of successful digital
transformation—pivoting
to innovation-led growth
Future-built
Continuous innovation at
the leading edge of
disruption with generative,
purpose-driven leadership
at the core (fully engaging
head, heart, hands)
LEADERSHIP WITHOUT A PURPOSE GENERATIVE LEADERSHIP
Sources: BCG and BVA Group leadership survey, October 2020 and July 2021; BCG analysis.
Head: reimagining and
reinventing the business
to serve all stakeholders
Create alignment with a purpose and vision
· Define a sense of why the organization exists
· Identify and prioritize the big rocks and
communicate at all levels
Ensure value for all stakeholders
· Reshape what value means to the organization
· Expand your view of stakeholders
· Understand the connections your organization
has to addressing world challenges
Reimagine and reinvent
· Challenge existing assumptions to
unlock creativity
· Use combination of data, logic, and intuition
to make decisions
Sources: BCG and BVA Group leadership survey, October 2020 and July 2021; BCG analysis.
Lead with purpose
· Embed purpose into everything the organization
does—goals, decisions, actions, etc.
· Understand the connection between
organizational and individual purpose
Create an empowering culture
· Put the key elements in place for a culture where
people can do their best work
· Empower your people and support their growth
Demonstrate care
· Listen and learn first, then support
· Articulate and role model the importance of
wellbeing
· Recognize and confront your biases
Heart: inspiring and
enriching the human
experience
Sources: BCG and BVA Group leadership survey, October 2020 and July 2021; BCG analysis.
Create supercharged teams
· Leverage a wide array of both internal and
external skillsets, as well as technology to
compose teams
· Insist that teams focus on their head, heart
and hands to create the highest value
Inspire ownership in others
· Share the goal and let the team decide how
to accomplish
· Let go of more than you might feel
comfortable and make your teams more
autonomous
· Trust that your team will deliver
Boost resilience
· Learn from successes and failures
· Be flexible and adapt
· Encourage experimentation in all teams
Hands: executing and
innovating through
supercharged teams
Source: BCG Global Company of the Future Survey 2022; n = 546.
Note: ESG = environmental, social, and governance.
Head: future-built companies focus on C-suite digital savviness and
leadership alignment
Reimagining the business to serve all stakeholders Share of companies with high score
C-suite digital savviness 37% 68% 100%
15%
C-suite alignment 60% 81% 97%
23%
Roadmap for digital, AI, and climate and sustainability initiatives 44% 77% 86%
20%
Priorities and monitoring 45% 73% 89%
22%
Middle management alignment 41% 65% 89%
26%
ESG alignment with strategy 36% 57% 64%
20%
Current ESG performance 30% 48% 58%
11%
KEY ENABLERS SCALING
EMERGING
STAGNATING FUTURE-BUILT
Source: BCG Global Company of the Future Survey 2022; n = 546.
Heart: future-built companies focus on societal leadership and a compelling
employee value proposition
Inspiring and enriching the human experience Share of companies with high score
Societal leadership 49% 81% 78%
39%
Compelling employee value proposition 32% 75% 75%
15%
Digital skill investment 36% 32% 72%
41%
People growth and development 28% 65% 72%
15%
KEY ENABLERS SCALING
EMERGING
STAGNATING FUTURE-BUILT
Hands: future-built companies focus on empowering management
Source: BCG Global Company of the Future Survey 2022; n = 546.
Executing and innovating through supercharged teams Share of companies with high score
Empowering management 38% 74% 100%
20%
Rapid scalability 23% 44% 86%
11%
Team focus 44% 73% 75%
27%
Optimized work design 30% 58% 83%
15%
Entrepreneurial culture 30% 53% 83%
23%
KEY ENABLERS SCALING
EMERGING
STAGNATING FUTURE-BUILT
Leaders see clear purpose as essential to transformation success …
Source: BCG BrightHouse, BCG Global Transformation check Benchmarks 2020.
Among top 3 success factors along transformation, transformation leaders rated a clear purpose as #1
470
398
375
Successful
transformations
Unsuccessful
transformations
Average success
with transformation
30%
31%
39%
KEY FACTORS IN SUCCESSFUL TRANSFORMATIONS
Clear
purpose
Clear
communications
Aligned
leadership
… yet leaders often neglect heart-based leadership during transformations
Sources: BCG and BVA Group leadership survey, October 2020 and July 2021; BCG analysis.
HOW MUCH OF LEADERS’ FOCUS
SHOULD EACH DIMENSION RECEIVE?
HOW MUCH OF LEADERS’ FOCUS DOES
EACH DIMENSION RECEIVE?
Hands 33% 35%
x1.1
Heart 38% 27%
x0.7
Head 29% 38%
x1.3
Companies should focus on six principles to develop generative leaders
Source: BCG analysis.
Flexibility
Tailor journeys to leaders’ needs and focus
on a subset of 3–5 target behaviors
Immersion
Invest in targeted and dynamic
learning activities
Coaching
Unlock personal change for individuals
in a coordinated approach with
overarching transformation
Relevance
Balance learning content and capability
building across head, heart, and hands
Impact
Measure the outcome
from every action
Integration
Build change into leaders’
real, day-to-day work
Drive cross-functional
collaboration
Buy into the integrated roadmap
and create cross-functional
teams that work as a unit toward
shared objectives
· Engage constructively to
manage the workflows between
product, network, business
unit, and IT teams
Be an active initiative
sponsor
· Engage on details and give
pragmatic assistance on
bottlenecks and issues
· Pick the right accountable
initiative owners, who are
motivated to succeed
· Emphasize the connection
between initiatives and the
broader transformation
· Celebrate team successes
Work for efficiency and
quick wins, not perfection
· Commit to frequent reviews of
initiatives and authentic, informal
discussions about issues, risks,
trade-offs and re-prioritization
· Ask questions and encourage
continuous re-prioritization vs. a
static workplan
· Demand small, frequent
outcomes, allowing teams to
learn, iterate, and improve
· Implement informal 24-hour
escalation pathways—if anyone
at any level of the organization
has a problem and they can’t
resolve it in their team, they have
the green light to escalate it
Actively seek coaching
· Strive to unlock personal
change first
· Learn and refine how to highlight
initiatives in all communications
as a top priority
Source: BCG analysis.
And leaders must set a powerful example by shifting key behaviors
4
3
2
1
Sources: IMD.org; CUES, CEO Dialogue.
Context
· A mining company seeking to improve
productivity underwent a rapid
transformation effort
· The company sought to upskill
approximately 6,000 frontline managers to
be more caring and engaged
· The company built a leadership journey
focused on Heart qualities to improve
recognition, people coaching, and
empowerment in leaders across the firm
Action
Discover
Through robust measurements, the company
accurately assessed performance by individual
and function
Learn
· A new playbook showed managers how to
manage employee sentiments and difficult
conversations during the transformation
· Personalized capability training sessions
addressed the needs of individual managers
Apply
Apply learning experience into daily routine
to ensure practicality and relevance for
front line
Embed
Role models were identified to teach the
other frontline leaders
Results
· Most impactful capabilities were
selected to further strengthen them
· Managers grew more comfortable
having difficult conversations during
the transformation
A mining company supplemented a transformation by
helping its frontline leaders engage more with the heart
A global insurance company builds a pipeline of
generative leaders
Context
· A global commercial property insurance
company recognized that it would lose a
significant number of its top leaders to
retirement in coming years
· The company sought to identify and
develop successors to executive-level
leadership roles with an interactive,
generative leadership journey
· It launched leadership development
journey grounded in succession planning
Action
· The company developed a high-touch,
customized approach to developing
generative leaders, centered on executive
coaching
· The 9-month development journey, geared at
high-potential employees, included a
combination of:
– Sprints/workshops across head, heart, hand
– 1:1 coaching
– Coalition group coaching
· The aim of the journey was to grow and
empower adaptable leaders that drive
business results
Source: BCG analysis.
Results
· Strengthened cadre of generative
leaders who will be ready to fill top
leadership positions when needed
· Strengthened cross-functional
relationships between leaders
· Culture shift to incorporate more
feedback and collaboration
among leaders

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bff-leadership-powerful-purpose-may-2023-r.pdf

  • 1. MAY 2023 Leadership with a Powerful Purpose
  • 2. Leadership is central to transformation success Source: BCG Transformation Check 2022. Energize and engage the organization by defining and cascading its purpose and case for change Support leaders in activating key behaviors and driving change x2.3 Align senior leadership on scope and help employees understand why they need to be part of the change higher transformation success rate higher transformation success rate higher transformation success rate x3 x1.5
  • 3. Yet leadership engagement in transformations remains lower than before the pandemic Sources: BCG transformation check analysis, 2020, 2021, 2022. 1 Based on self-assessment by survey respondents. Average transformation success against expectations1 Value realization Cost to achieve Duration Leader engagement Employee buy-in 2020 ~73% ~46% +15% +32% +19% +69% ~53% ~45% ~64% ~59% –45% +31% +69% –38% –60% 2021 2022 Value realization initially declined during the pandemic and has since remained stable Cost overruns nearly doubled during the pandemic and are still higher than expected Timeline delays tripled during the pandemic Leader engagement has decreased significantly since the pandemic, showing a ~40% drop within two years Employee buy-in declined during the pandemic and has since increased slightly
  • 4. Generative leadership is a purposeful approach to build for the future through the head, heart, and hands Source: “Why the World Needs Generative Leaders,” BCG.com, March 17, 2022. From extractive . . . Consume resources by focusing on business growth and profitability, regardless of other consequences . . . to generative Grow and expand resources by putting society and the planet at the core of the businesses Head Heart Hands Reinventing business to serve all stakeholders Inspiring and enriching the human experience Executing and innovating through supercharged teams
  • 5. Fully engaging head, heart, and hands is key to sustaining performance improvements from a transformation Source: “Why the World Needs Generative Leaders,” BCG.com, March 17, 2022. Companies with sustained performance improvement (%) Partially engaging Head, Heart, and Hands Fully engaging Head, Heart, and Hands 33% 96%
  • 6. Building purpose-driven, generative leadership for the future is a multistage transformation journey Source: BCG analysis. Stagnating Yet to define a purpose and get digital transformation right—limited value created Emerging Executed successful programmatic transformation with a purpose, but challenges in effectively scaling organization-wide Programmatic approach to fix the core and build a foundation for innovation (digital transformation) Embed and scale cross-functional attributes to pivot to growth from innovation (continuous innovation) Scaling Embedded purpose across the organization and delivered multiple waves of successful digital transformation—pivoting to innovation-led growth Future-built Continuous innovation at the leading edge of disruption with generative, purpose-driven leadership at the core (fully engaging head, heart, hands) LEADERSHIP WITHOUT A PURPOSE GENERATIVE LEADERSHIP
  • 7. Sources: BCG and BVA Group leadership survey, October 2020 and July 2021; BCG analysis. Head: reimagining and reinventing the business to serve all stakeholders Create alignment with a purpose and vision · Define a sense of why the organization exists · Identify and prioritize the big rocks and communicate at all levels Ensure value for all stakeholders · Reshape what value means to the organization · Expand your view of stakeholders · Understand the connections your organization has to addressing world challenges Reimagine and reinvent · Challenge existing assumptions to unlock creativity · Use combination of data, logic, and intuition to make decisions
  • 8. Sources: BCG and BVA Group leadership survey, October 2020 and July 2021; BCG analysis. Lead with purpose · Embed purpose into everything the organization does—goals, decisions, actions, etc. · Understand the connection between organizational and individual purpose Create an empowering culture · Put the key elements in place for a culture where people can do their best work · Empower your people and support their growth Demonstrate care · Listen and learn first, then support · Articulate and role model the importance of wellbeing · Recognize and confront your biases Heart: inspiring and enriching the human experience
  • 9. Sources: BCG and BVA Group leadership survey, October 2020 and July 2021; BCG analysis. Create supercharged teams · Leverage a wide array of both internal and external skillsets, as well as technology to compose teams · Insist that teams focus on their head, heart and hands to create the highest value Inspire ownership in others · Share the goal and let the team decide how to accomplish · Let go of more than you might feel comfortable and make your teams more autonomous · Trust that your team will deliver Boost resilience · Learn from successes and failures · Be flexible and adapt · Encourage experimentation in all teams Hands: executing and innovating through supercharged teams
  • 10. Source: BCG Global Company of the Future Survey 2022; n = 546. Note: ESG = environmental, social, and governance. Head: future-built companies focus on C-suite digital savviness and leadership alignment Reimagining the business to serve all stakeholders Share of companies with high score C-suite digital savviness 37% 68% 100% 15% C-suite alignment 60% 81% 97% 23% Roadmap for digital, AI, and climate and sustainability initiatives 44% 77% 86% 20% Priorities and monitoring 45% 73% 89% 22% Middle management alignment 41% 65% 89% 26% ESG alignment with strategy 36% 57% 64% 20% Current ESG performance 30% 48% 58% 11% KEY ENABLERS SCALING EMERGING STAGNATING FUTURE-BUILT
  • 11. Source: BCG Global Company of the Future Survey 2022; n = 546. Heart: future-built companies focus on societal leadership and a compelling employee value proposition Inspiring and enriching the human experience Share of companies with high score Societal leadership 49% 81% 78% 39% Compelling employee value proposition 32% 75% 75% 15% Digital skill investment 36% 32% 72% 41% People growth and development 28% 65% 72% 15% KEY ENABLERS SCALING EMERGING STAGNATING FUTURE-BUILT
  • 12. Hands: future-built companies focus on empowering management Source: BCG Global Company of the Future Survey 2022; n = 546. Executing and innovating through supercharged teams Share of companies with high score Empowering management 38% 74% 100% 20% Rapid scalability 23% 44% 86% 11% Team focus 44% 73% 75% 27% Optimized work design 30% 58% 83% 15% Entrepreneurial culture 30% 53% 83% 23% KEY ENABLERS SCALING EMERGING STAGNATING FUTURE-BUILT
  • 13. Leaders see clear purpose as essential to transformation success … Source: BCG BrightHouse, BCG Global Transformation check Benchmarks 2020. Among top 3 success factors along transformation, transformation leaders rated a clear purpose as #1 470 398 375 Successful transformations Unsuccessful transformations Average success with transformation 30% 31% 39% KEY FACTORS IN SUCCESSFUL TRANSFORMATIONS Clear purpose Clear communications Aligned leadership
  • 14. … yet leaders often neglect heart-based leadership during transformations Sources: BCG and BVA Group leadership survey, October 2020 and July 2021; BCG analysis. HOW MUCH OF LEADERS’ FOCUS SHOULD EACH DIMENSION RECEIVE? HOW MUCH OF LEADERS’ FOCUS DOES EACH DIMENSION RECEIVE? Hands 33% 35% x1.1 Heart 38% 27% x0.7 Head 29% 38% x1.3
  • 15. Companies should focus on six principles to develop generative leaders Source: BCG analysis. Flexibility Tailor journeys to leaders’ needs and focus on a subset of 3–5 target behaviors Immersion Invest in targeted and dynamic learning activities Coaching Unlock personal change for individuals in a coordinated approach with overarching transformation Relevance Balance learning content and capability building across head, heart, and hands Impact Measure the outcome from every action Integration Build change into leaders’ real, day-to-day work
  • 16. Drive cross-functional collaboration Buy into the integrated roadmap and create cross-functional teams that work as a unit toward shared objectives · Engage constructively to manage the workflows between product, network, business unit, and IT teams Be an active initiative sponsor · Engage on details and give pragmatic assistance on bottlenecks and issues · Pick the right accountable initiative owners, who are motivated to succeed · Emphasize the connection between initiatives and the broader transformation · Celebrate team successes Work for efficiency and quick wins, not perfection · Commit to frequent reviews of initiatives and authentic, informal discussions about issues, risks, trade-offs and re-prioritization · Ask questions and encourage continuous re-prioritization vs. a static workplan · Demand small, frequent outcomes, allowing teams to learn, iterate, and improve · Implement informal 24-hour escalation pathways—if anyone at any level of the organization has a problem and they can’t resolve it in their team, they have the green light to escalate it Actively seek coaching · Strive to unlock personal change first · Learn and refine how to highlight initiatives in all communications as a top priority Source: BCG analysis. And leaders must set a powerful example by shifting key behaviors 4 3 2 1
  • 17. Sources: IMD.org; CUES, CEO Dialogue. Context · A mining company seeking to improve productivity underwent a rapid transformation effort · The company sought to upskill approximately 6,000 frontline managers to be more caring and engaged · The company built a leadership journey focused on Heart qualities to improve recognition, people coaching, and empowerment in leaders across the firm Action Discover Through robust measurements, the company accurately assessed performance by individual and function Learn · A new playbook showed managers how to manage employee sentiments and difficult conversations during the transformation · Personalized capability training sessions addressed the needs of individual managers Apply Apply learning experience into daily routine to ensure practicality and relevance for front line Embed Role models were identified to teach the other frontline leaders Results · Most impactful capabilities were selected to further strengthen them · Managers grew more comfortable having difficult conversations during the transformation A mining company supplemented a transformation by helping its frontline leaders engage more with the heart
  • 18. A global insurance company builds a pipeline of generative leaders Context · A global commercial property insurance company recognized that it would lose a significant number of its top leaders to retirement in coming years · The company sought to identify and develop successors to executive-level leadership roles with an interactive, generative leadership journey · It launched leadership development journey grounded in succession planning Action · The company developed a high-touch, customized approach to developing generative leaders, centered on executive coaching · The 9-month development journey, geared at high-potential employees, included a combination of: – Sprints/workshops across head, heart, hand – 1:1 coaching – Coalition group coaching · The aim of the journey was to grow and empower adaptable leaders that drive business results Source: BCG analysis. Results · Strengthened cadre of generative leaders who will be ready to fill top leadership positions when needed · Strengthened cross-functional relationships between leaders · Culture shift to incorporate more feedback and collaboration among leaders