Bizsum Leadership 2030

April 19, 2014Leadership 2030 The Six Megatrends You Need to Understand to Lead Your Company into the Future Georg Vielmetter and Yvonne Sell ©2014 by Hay Group Holdings, Inc. Adapted by permission of AMACOM, a division of American Management Association ISBN: 978-0-8144-3276-1 Key Concepts Six big changes are afoot that will reshape the demands of leadership going forward. Ranging from evolving cultural attitudes to environmental degradation, these “megatrends” will eliminate leaders who fail to adapt. 1. Globalization in the future will be more about power shifting to Asia than it has been in the past. The growing middle class in many developing nations will create new opportunities, but also challenges as multinationals try to serve highly localized markets. 2. Climate change will drive resource scarcity, forcing leaders to fundamentally rethink their operations. 3. Rising affluence will drive demand for customized products. Just as consumers seek out more individualized experiences, so too will employees whose work need not be restricted by time and place. 4. The digital era will shift power to consumers and workers, away from traditional management structures. Already, the digital world is blurring the line between personal and professional lives, while increasing organizational transparency. 5. The aging population will shrink the workforce and require leaders to cope with intergenerational workplaces. 6. Several cutting-edge technologies will converge to open new markets. Nanotechnology and biotechnology especially will challenge leadership to invest in R&D programs and to respond effectively to societal worries. Traditional, alpha-male leadership is ill suited to this new era. Instead, leaders should focus on becoming more “altrocentric,” empowering others as a way to empower themselves and their organizations. Developing altrocentric leadership begins by leaders asking themselves questions about style and goals. Are they: • Truly open and curious? • Able to engage colleagues in making meaning rather than simply presenting one-way narratives? Business Book Summaries® April 19, 2014 • Copyright © 2014 EBSCO Publishing Inc. • www.ebscohost.com • All Rights Reserved Georg Vielmetter and Yvonne Sell provide a road map of the broad trends that are reshaping markets. Globalization 2.ebscohost. They identify six megatrends: 1. The New Globalization The globalization process has developed over centuries. 4. Daring to Predict the Future Predicting the future can be a fool’s game. Shawn Hunter Rice Wine with the Minister Distilled Wisdom to Manage.com • All Rights Reserved . Using social scientific foresight analysis (also known as future research). The digital era: Power will shift from organizations to employees and consumers as digitization eliminates the barriers between personal and professional lives and increases transparency. cultures. but until recently it was characterized by the exploitation of resources and labor from the underdeveloped world by the nations of the developed world. • www. To survive the megatrend storm leaders will have to provide workers with greater autonomy while finding ways to respond to the unique needs of every customer. Demographic change: The aging population will strain welfare states. Georg Vielmetter and Yvonne Sell ized products from consumers and necessitate individualized work routines for highly valuable employees. the escalating war for talent. global processes that will have a broad and dramatic impact on the future of management. 6.haygroup.amacombooks. The authors show how these self-reinforcing trends demand enlightened leadership with the skills to engage an ever-widening circle of stakeholders. and technological convergence. a global management consultancy. alpha-male leadership. 2. trade flows in many directions at once. and companies.com Information about this book and other business titles: www. transformational.Leadership 2030 • Providers of bounded autonomy? • Creators of loyalty and managers of the organization’s reputation? • Willing to collaborate with partners inside and outside of the company? Introduction In Leadership 2030. water. Oil. and even food will become more expensive and the subjects of conflict.0: Power will shift to Asia from the industrialized West. but Georg Vilmetter and Yvonne Sell dare to predict six megatrends that will drive leadership in the years ahead. Leaders will need to manage intergenerational workplaces as older workers remain on the job alongside Millennial employees.org Click Here to Purchase the Book Related summaries in the BBS Library: Out Think How Innovative Leaders Drive Exceptional Outcomes By G. often linking developing regions to Further Information Information about the authors and subject: www. the melding of private and working lives. environmental crisis. Based on research with the Hay Group. eroding customer and employee loyalty. Technological convergence: Nanotechnology and biotechnology will create new and untold markets but require expensive R&D programs. In the new era of globalization. 2014 • Copyright © 2014 EBSCO Publishing Inc. they spent three years examining the long-term. Environmental crisis: Climate change will drive resource scarcity and rising costs as organizations make climate consciousness a fundamental aspect of all of their operations. Gone are the days of the egocentric. 5. they offer insights into six megatrends: the shift of economic power to Asia. Individualization and value pluralism: Rising affluence will create increasing demands for customBusiness Book Summaries® April 19. creating a new middle class along with new threats and opportunities in highly localized markets. Lead and Succeed on the Global Stage By Andrew Kakabadse and Nada Kakabadse 3. floods. Yvonne Sell. The death. and a member of the German Society for Philosophy. is a member of Hay Group’s European leadership team and the regional director.0 is fundamentally different from version 1. They can achieve these ends by increasing the diversity of people within their organizations and by collaborating intensively with local partners.D. they will have to find ways to earn the loyalty of talented employees and to cultivate the next generation of leaders. tion. egies.. For Confronting the Environmental Crisis example. Regional competitors responsive to local tastes are beating out Western multinationals hampered by their centralized organizations and global strat. and the UN predicts that fraction to grow by 65 percent by 2025. and clean water are becoming scarcer. Leaders should be especially skilled at executing transformational plans by inspiring employees through visionary communications. leaders who excel at change management will be in high demand. organizations will need to organically integrate corporate social responsibility (CSR) into their operations. Georg Vielmetter and Yvonne Sell through open communication. They will also need to create contextual awareness by encouraging diverse ideas About the Authors Georg Vielmetter. Instead. but also very much from East to West. for Hay Group. is the director of Leadership and Talent. and he also publishes and speaks on these topics. At the same time. strategic. where. He is an alumnus of the German National Academic Foundation. as storms. rare earth metals. Europe. the Fillipino burger chain Jollibee has been Economic activity has caused global warming that out-competing McDonald’s simply by offering rice will soon reach catastrophic levels. She also works with Daniel Goleman and Richard Boyatzis on researching emotional intelligence. Climate change alongside pineapple-topped burgers—menu items has already caused more extreme weather events such popular in the Philippines.. she regularly provides press commentary and conference presentations on a wide range of leadership issues.” leaders need to sharpen their cognitive and conceptual understanding of complexity. To achieve this transformation. people. and capital will flow in multiple directions. Ultimately. Lofty language about environmental responsibility will be less useful than translating environmental goals into practical. • www. Ph. and conceptual thinking to create the processes and structures that will minimize environmental impact. a member of the German Sociological Association. Ph. He works with executives and top teams on leadership transformation. in 2006 the world passed the peak of oil supplied from conventional sources. work-day guidance Business Book Summaries® April 19. Although there may be plenty of oil in the world. destrucTo thrive amidst “Globalization 2. have become more expensive and harder to reach in recent years.ebscohost. and droughts. leaders must exercise creative.0. Because the environmental crisis demands such fundamental changes. as part of driving the leadership and talent practice.D. it must become part of companies’ DNA. CSR cannot be a set of boxes to check off after the fundamental goals of serving customers and shareholders have been met. To respond. This phenomenon of Goods. the competitive advantages of efficiency once enjoyed by multinationals. essential to modern technology.Leadership 2030 one another without going through a Western middleman as they did in the past. not “glocalization” has undermined just from West to East. 2014 • Copyright © 2014 EBSCO Publishing Inc. A fifth of the world’s population suffers water shortages today. UK and Ireland.com • All Rights Reserved . Rare earths. displacement.Globalization 2. and economic damage from these events will only increase. The newly emerging middle classes of developing nations have expressed diverse and novel consumer demands.0. of its Leadership and Talent Practice and regional director for the consulting practices across Europe. critical resources such as oil. But leaders must find new ways to foster loyalty and to manage and motivate teams that rarely meet. and consistency of values. This accelerating megatrend is coupled with rising international migration. Of course all of these things become more difficult when employees do not share a physical space. the structure of management should be such that organizations can sense changes in the market. particularly in developed nations. words. new power stations that burn fossil fuels zational hierarchies. The Digital Era Internet connectivity has become increasingly ubiquitous. Indeed flexibility and openness should define leadership’s response to these trends. an aging population tends to pull young people into the workforce. Similarly. but agile companies can exploit niches. Fewer working-age people will also intensify the war for talent among corporations and even nations. and Indonesia exposes them to ever more diverse cultural influences. indiscretions that might once have ended a career have been losing their punch as ever more of them show up on Facebook walls. • www. Leaders should demonstrate a genuine curiosity about what makes each customer tick. Two degrees Celsius is thought by scientists to be the “safety limit” for avoiding truly catastrophic climate change. They must help older workers become comfortable with the new technologies while also acclimating digital natives to the culture of corporate life. In so doing. One strategy in this war for all kinds of talent must Business Book Summaries® April 19. Today people are “always on” and studies suggest that this phenomenon even affects the Younger people. loyalty from both customers and workers will diminish. 2014 • Copyright © 2014 EBSCO Publishing Inc. way the brain develops. as options increase. On the one hand. This reality has fragmented the workplace because employees can now do much of their work from anywhere. At this secure technological infrastructure rate. a leader should learn to develop and maintain lasting relationships not only with current employees but with former employees who have moved outside the organization. may be more comfortable with digital culture than their older colleagues. no longer tethered to the computer or even a WiFi connection. Managing a diverse workforce means helping team members appreciate each other’s strengths and differences while treating each member as an individual. since staff retention is no longer guaranteed. Demographic Megatrend The rising world population is also getting older. and deeds. These in turn encourage people to express individualized tastes and values. the year 2017.ebscohost. The goal is to prevent average global temperatures from rising more than 2°C.Leadership 2030 Georg Vielmetter and Yvonne Sell about roles and performance. For example. Large organizations will have trouble serving balkanized markets.com • All Rights Reserved . Leaders will also have to collaborate across their organizations and with external partners. Leadership must provide the robust and are being built around the world at an alarming rate. integrity. workers challenge the need for physical work locations and traditional organiAccording to the IEA. India. Often they will have to find shared solutions even with direct competitors. To defend against such incidents requires openness. Flatter hierarchies and flexible work practices will define the future. Owing both to demographic shifts and to younger workers eschewing management. The digital world also puts a premium on reputation management. Responding to Emerging Affluence The rising wealth of middle classes in countries such as Brazil. the organization’s reputation is always at risk in a world where anyone with an Internet connection can disclose corporate peccadilloes. Nevertheless. many organizations are having trouble finding quality leadership. Leadership’s job is to bridge the gap between old and new. On the other hand.6°F) by to enable this method of work. Younger employees especially will want greater flexibility to define their own work/life balance. at any time. so-called “digital natives” because they have grown up not knowing a world without smartphones. the global warming effect will be beyond 2°C (3. Technological Convergence Advances in the fields of nanValues-driven engagement—choosing your work. injected into the blood stream to detect and eliminate 3. BiotechThe Perfect Megatrend Storm nology. Cost explosion: The scarcity of talent and natural bots that will rearrange all manner of material leavresources. Both the West and China now face a future in which they will not be able to perform as effectively in socioeconomic terms. There are five key “reinforcers. nanotechnology. hold at work as mobile technology destroys the Of course with technological advances comes any boundaries between the personal and professional number of ethical dilemmas. biotechnology. ests. and biotechnology have 2. They need to keep an eye not only on nologies. As in other areas. but they also must appreciate the highly unpredictable nature of technological convergence. Power shift: Leaders’ ability to influence others will all converged to develop tiny machines that can be fall as that of the stakeholders rises. becomes essential. Aging populations threaten the welfare states of the West because of falling support ratios—there are fewer workers to support more retirees.com • All Rights Reserved . HR policies will evolve in response and managing diversity will become a core talent for leaders. but combined together and terests that need attention will multiply just as with the application of information technology. New forms of collaboration within the company and with other companies and academic institutions These reinforcers in turn create four significant dilemmas: Business Book Summaries® April 19. biochemistry.Leadership 2030 Georg Vielmetter and Yvonne Sell be to diversify the search. as ancient as traditional plant breeding. today The megatrends will develop not in isolation but encompasses genetic engineering. As a consequence. harm. Where is technology. they leaders seek to simplify operations. New working practices: New social practices take illness. For example. though for business leaders.ally becomes the norm. genetics. They will need to keep abreast of the relevant fields of endeavor and the potential consequences for the company and its customers. Some even predict the end of disease. and digital-era transparency will detechnical advancement but also on the societal debate mand that companies adhere to the highest ethical surrounding new technologies. herald even more profound changes. and together in ways that create even greater challenges bioprocess engineering.ebscohost. boundaries must be dismantled to allow interdisciplinary work to occur. interotechnology. And cognitive science. lifestyle. birth defects and using it to create designer babies? Because of the potential. and leadership needs to promote knowledge exchange even with competitors. information technology. Nanotechnology. technologists might create a self-replicating army of 4. recruiting people of various cultural backgrounds from around the world. is on the cusp of or consequences that arise from several megatrends major breakthroughs in understanding the brain and at once: behavior. people make decisions tion. • www. Stakeholder proliferation: The number of vested inentific frontier on its own. “Ethicization” of business: Environmental concerns. for 5. robotics.” also a discipline with a long history. Each of these is an exciting area of the sci1. Some worry that nanoand as younger generations resist formal authority. as well as the high price of advanced ing nothing but a gray goo in their wake. atoms. based on that challenge traditional societal structures and the cultural the manipulation of individual status quo. or perceived potential. Finally. will significantly drive up the costs of the line between using genetic engineering to prevent doing business. has already created new chemicals and materials. leaders must ensure that organizations innoworries over the societal implications of new techvate ethically. leaders must learn to live with the uncertainty inherent in any new technology. 2014 • Copyright © 2014 EBSCO Publishing Inc. standards. and purchases according to your personal values—graduand robotics will drive innova. They note that the alphamale leader may realize success in the short term and that a general view that equates With ubiquitous Internet connectivity. now “always on. the authors define leadership as a social practice. and empathize with others even when they do not share their goals. This is eroding tradi. but they will also know when to keep their egos in check. In short. private.Leadership 2030 1. the workforce itself—from line workers to regional managers—has become a diverse menagerie of stakeholders. A focus on and concern for others defines the altrocentric leader.” at home and at work. leaders face a difficult choice between the opposing needs for greater organizational complexity and simplicity. Technological convergence adds competitors to the stakeholder pool. ers to employees. Rather than a fixed skill set inherent in certain individuals. They exhibit contextually aware strategic business thinking through stakeholder recognition. This model is based on a false picture of the nature of leadership and will suffer in the face of the megatrend perfect storm. 2. and the popularity of social networking. recognize the ambiguities of leadership.meet the challenges of the year 2030. and profes. emotionally open. They also value high ethical standards and diversity. rather than merely providing meaning. The power shift from leadsional lives. But having a single. Such empathy is a core competency of intellectually curious. Increasing diversity in the cusnot common traits of alpha-male leaders. altrocentric leaders understand the importance of “interdependent power.” They will have confidence and strong personalities. leaders must deliver clear and consistent messages. tomer base comes with globalization. • www. Resources: Diminished resource availability coincides with an increased demand for resources. Horizons: Environmental challenges demand sustained action just as the digital era erodes patience. Hierarchies: Individualization demands flatter organizations. They take a longer view. and mature altrocentric leaders. the proliferation of egocentricity with leadership may be allowing egocentric leadmobile devices. The nature of leadership is at the heart of decades of research by the authors. To cut through this complexity. Business Book Summaries® April 19. it is relational and contextual. will demand dialogue rather than the one-way style As an example. Moreover. global message violates the principle of glocalization. a communal activity that develops shared knowledge and meaning. Rather than merely exercising independence. Research shows that leadership is not a set of fixed attributes possessed only by certain individuals. The core competencies and skills of the altrocentric leader begin with an appreciation of the interdependent nature of power.ebscohost. This does not mean that altrocentric leaders will be unremarkable “beta males.” power that relies on others. leader and follower are not fixed categories. for example. 2014 • Copyright © 2014 EBSCO Publishing Inc. desire for individualization follows global affluence. A New Kind of Leader Traditionally leaders have been alpha males who put themselves at center stage and lead either through coercion or pacesetting—the practice of showing people that they are the best players on the team. but rising complexity calls for more intricate organizational structures. Second.But it will prove ill-equipped to tional boundaries between our personal. the problem of stakeholder prolifof communication typical of egocentric leaders. 3. even strong egos. The leaders of the future will have to be “altrocentric” rather than egocentric. Gone are the need for transparency and the ethicization of business days when only customers and perhaps shareholders will require leaders to be open and ready to listen— were stakeholders. and the environmental crisis makes a stakeholder of society at large. they depend on the context in which they operate. and a growing 4. we are ership to outlive its usefulness. leaders are only leaders in relation to a set of followers. First. Georg Vielmetter and Yvonne Sell Instead. Mobility: Rising affluence creates demand for more travel just as the environmental concerns and fuel costs put limits on that travel. The eration creates a hierarchy dilemma. Through their interactions with stakeholders they create meaning.com • All Rights Reserved . Are you aware of your limits? Are you in control of your emotions? 4. in executing strategy. 2014 • Copyright © 2014 EBSCO Publishing Inc. Are you open? Are you a curious person? Do you listen carefully to others? Social awareness and empathy are also critical emotional competencies. 9. Each of the first six chapters reviews a particular megatrend.” 11. Drawing on their experience and research with the Hay Group. climate change. Answering these questions begins a perpetual journey toward altrocentric leadership: 1. recognizing the needs of different generations? Do you appreciate the implications of digital transparency on the organization’s reputation? Georg Vielmetter and Yvonne Sell 8. diagnostic tools can help uncover your own. • www. How broad is your perspective? Do you scan the horizon? Do you incorporate all stakeholders? Altrocentric leaders depend upon strategic thinking. 244 pages Leadership 2030 reviews the six global trends that will shape the nature of leadership for the foreseeable future. Again. They recognize the strategic value of HR and keep personally engaged with the key “people issues. Do you take ownership of the human resources of the organization? Altrocentric leaders focus on people first. Do you consider yourself a leader? Are you able to overcome stereotypes? Can you question your own preconceptions? 2. 5. the authors conclude with twelve sets of questions leaders can ask themselves. Developing Altrocentric Leadership No specific steps will transform an individual into an altrocentric leader. and resource scarcity will all demand increased collaboration. What is your self image? Self knowledge is a fundamental first step. a global management consulting group. What motivates you to go to work every day? Do you try to develop others’ strengths? 3. Do you create loyalty and manage reputations? Do you value people as individuals. What drives you? Appreciating underlying motivation is key to developing the kind of socialized power that undergirds altrocentric leadership. Have you created the right top team? The top managers must function as a team and the leader must provide the development feedback and coaching to achieve that end.Leadership 2030 Finally. which demands a broad perspective. g g g g Features of the Book Estimated Reading Time: 2–3 hours. An emotional intelligence assessment or psychometric test can help reveal psychological traits.ebscohost. Do you share the big picture and provide clarity for people? Do you rely on command-and-control? 6. Do you engage in meaning-making with colleagues? Do you know your organizational narrative? Do you know what creates meaning for your co-workers? Employee engagement surveys can monitor the alignment and engagement of the workforce in the meaning-making process.com • All Rights Reserved . followed by a chapter that explores how these trends will reinforce one another. Do you collaborate and partner with others? Paying lip service to teamwork is not enough. the authors explain how current trends will work together to demand ever greater levels of openness. The final chapter describes the model of “altrocentric” that will define effective leadership in the future. and comfort with complexity. What leadership styles do you use? Altrocentric leaders draw on a wide range of styles. rather than a set of prescriptions. The conclusion offers a set of questions and tips to begin Business Book Summaries® April 19. Therefore. emotional intelligence. altrocentric leaders will provide bounded autonomy and share authority with a strong leadership team rather than trying to operate alone. Do you ensure that such freedom is provided throughout the organization? 12. 7. Are you willing and able to share power? 10. Do you provide bounded autonomy? Leadership must provide freedom of action to achieve the flexibility necessary to face a fast-changing world. The megatrends of technological convergence. How well do you know yourself and your limitations? Self-awareness and self-control are key emotional competencies for the altrocentric leader. Anyone in a leadership position will find much value in the book. Footnotes. Dilemmas. However. which is best read cover to cover. Remote Possibilities: The Digital Era 5. • www. 10 Estes Street Ipswich. or to provide us feedback. download or email summaries for individual use. 2014 • Copyright © 2014 EBSCO Publishing Inc. BusinessSummaries and BizSum is property of EBSCO Publishing Inc. For more information about BBS.ebscohost.0 2.com EBSCO Publishing Inc. MA 01938 USA Business Book Summaries® April 19. Business Book Summaries® is a service of EBSCO Publishing. users may print. Not Headlines: The Altrocentric Leader Conclusion: The Journey to Altrocentric Leadership Endnotes Index About the Authors g g g g Copyright of Business Book Summaries. Lost in Translation: Globalization 2. visit our Web site. Social Insecurity: Demographic Change 6. Power to the Person: Individualization and Value Pluralism 4.Leadership 2030 Georg Vielmetter and Yvonne Sell the journey toward altrocentric leadership. Great Expectations?: Technological Convergence 7. and the Perfect Storm 8. Inc. so this book is a good place to start for anyone who hopes to thrive by adapting to new realities.ebscohost. to subscribe to BBS. Business Book Review. Less Is More: The Environmental Crisis 3. The confluence of megatrends will disrupt traditional management. Contents Acknowledgments Introduction: Empire and Manure 1.com • All Rights Reserved . Reinforcers. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder’s express written permission. www. or email articles for individual use. download.Copyright of Leadership 2030 is the property of Great Neck Publishing and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. . users may print. However.