What's the future of
leadership?
- evidence from global corporations,
research and leadership development
SSE Russia Webinar 1.11.2013
Patrick Furu
Hanken School of Economics
Let’s get focused first…
Current hot topic
“what distinguishes
experts from amateurs
and stars from average
performers.”
While sitting lift your right leg off the
ground and rotate your foot clockwise.
Now with your right hand draw the
number six (6) in the air.
What happened?
5
Future learning trends
20
18
16
General knowledge
Individual Learning
14
12
10
8
6
4
2
0
2013
2016
2020
2030
Kjell A. Nordström, Stockholm School of Economics
Future learning trends
20
18
16
General knowledge
Individual Learning
14
12
10
8
What does this mean?
6
4
2
0
2013
2016
2020
2030
Kjell A. Nordström, Stockholm School of Economics
Leadership is about alignment
8
Reality is different
9
Let’s go back to the basics
Management and leadership
Management
Leadership
✓ Plan & Budget
✓ Set Direction
✓ Organize & Staff
✓ Align People
✓ Control & Solve
✓ Motivate & Inspire
NOTE! Activities/functions, not personality traits/attributes!
John Kotter (1990)
Five functions of the managerial
process
Planning
Controlling
Coordinating
Organizing
Commanding
Henri Fayol (1916) Administration Industrielle et Générale
Framework for reinventing management
Coordinating Activities
Making Decisions
Motivating People
Defining Objectives
© Julian Birkinshaw 2013
Framework for reinventing management
Coordinating Activities
Bureaucracy
Emergence
Making Decisions
Hierarchy
Collective Wisdom
Motivating People
Extrinsic
Intrinsic
Defining Objectives
Alignment
Obliquity
Traditional Principles
Alternative Principles
© Julian Birkinshaw 2013
Evolution of good leadership
1. Traditional
authoritarian
Leader
2. Modern: show
example
Leader
markets,
customers,
competitors
2. Future: leader
as support
Leader
15
On the next couple of slides you will see some
statements. They refer to more or less effective
management. Your task is to choose the ones
that YOU think are correct. Here we go…
Motivating employees
1.
Having annual performance reviews where you give
feedback and agree on clear targets motivates people to
perform better.
2. Stretch targets (demanding targets) motivate people to
perform better.
3. Paying people for performing well leads to better motivated
people that perform better.
4. Making people understand the purpose of the
organization’s activities motivate people to perform better.
Motivating employees
1.
Having annual performance reviews where you give
feedback and agree on clear targets motivates people to
perform better.
2. Stretch targets (demanding targets) motivate people to
perform better.
3. Paying people for performing well leads to better motivated
people that perform better.
4. Making people understand the purpose of the
organization’s activities motivate people to perform better.
Ultimate goal of the corporation?
The main goal of the corporation is
to satisfy the needs of customers.
The main goal of the corporation is
to maximize shareholder value.
The main goal of the corporation is
to get employees’ 100%
commitment.
19
Ultimate goal of the corporation?
The main goal of the corporation is
to satisfy the needs of customers.
The main goal of the corporation is
to maximize shareholder value.
The main goal of the corporation is
to get employees’ 100%
commitment.
20
Ultimate goal of the corporation?
The main goal of the corporation is
to satisfy the needs of customers.
“There is no clear data supporting the notion that making shareholder value
maximization the objective of the firm actually does maximize shareholder value
over the long term. Actually, there is evidence of the opposite being true.”
The main goal of the corporation is
to maximize shareholder value.
The main goal of the corporation is
to get employees’ 100%
commitment.
21
How sales people are remunerated
Sales people are driven by monetary incentives. Therefore, they
should have a commission scheme in which they are paid
according to how much they sell.
YES
or
NO
?
22
How sales people are remunerated
Sales people are driven by monetary incentives. Therefore, they
should have a commission scheme in which they are paid
according to how much they sell.
YES
or
NO
?
23
The Leadership2020 Project
Studies, Roundtables, Consortium Program
Phase I
Phase II
Phase III
Interviews
HR Directors
2010
Survey
Future top leaders
Spring 2011
Interviews
CEOs/Chairmen
2011-2012
HR’s view on:
 Type of leadership needed in
2020
 Characteristics of top managers
2020
 Characteristics of current top
talents
 Their development from now
until 2020
Companies:
Aktia, Amer Sports, Basware, Cargotec,
Comptel, Elisa, F-Secure, Fazer,
Huhtamäki, Itella, Kemira, KONE,
Konecranes, Lemminkäinen, Lumene,
Metso, Neste Oil, Nokia, Nordea, NSN,
Oracle, Oriola-KD, Orion, Outokumpu,
Outotec, Paulig, Pöyry, Rautaruukki, SRyhmä, Sanoma, SEB, Stockmann,
StoraEnso, Tamro, Tapiola, Tieto,
Tikkurila, UPM-Kymmene, Vaisala,
Wärtsilä, YIT
Talents’ view on:
 Needs for development
 Different leadership development
activities
 Awareness of own talent status
 Commitment and identification
with employer.
 Factors that determine
attractiveness of other employers.
CEO’s view on:
 Type of leadership needed in
2020
 Characteristics of top managers
2020
 Characteristics of current top
talents
 Their development from now
until 2020
Companies:
Aktia, Are, Cargotec, Elisa, F-Secure, Fortum,
ISS Services, Kemira, Kesko, NCC, Orion
Corporation, Outotec, Ruukki, Tapiola Group,
Tieto, and Wärtsilä
Companies:
Accenture, Aktia, Basware, Cargotec, Elisa,
Eläke-Tapiola, Fazer, F-secure, Gasum,
Kone, Lemminkäinen, Lumene, Nordea
Finance, OP-Pohjola, Outokumpu, Orion,
Sanoma, Tamro and Tikkurila
Roundtable I
Roundtable II
LEAP and LEAD Russia consortium programs
Roundtable III
24
The Leadership2020 Project
Studies, Roundtables, Consortium Program
Phase I
Phase II
Phase III
Interviews
HR Directors
Survey
Future top leaders
Interviews
CEOs/Chairmen
Talents’ view on:
 Needs for
development
 Different leadership
development activities
 Awareness of own
talent status
 Commitment and
identification with
employer.
 Factors that
determine
attractiveness of other
employers.
CEO’s view on:
 Type of leadership
needed in 2020
 Characteristics of top
managers 2020
 Characteristics of
current top talents
 Their development
from now until 2020
HR’s view on:
 Type of leadership
needed in 2020
 Characteristics of top
managers 2020
 Characteristics of
current top talents
 Their development
from now until 2020
25
The Leadership2020 Project
Studies, Roundtables, Consortium Program
Phase I
Phase II
Phase III
Interviews
HR Directors
Survey
Future top leaders
Interviews
CEOs/Chairmen
Talents’ view on:
 Needs for
development
 Different leadership
development activities
 Awareness of own
talent status
 Commitment and
identification with
employer.
 Factors that
determine
attractiveness of other
employers.
CEO’s view on:
 Type of leadership
needed in 2020
 Characteristics of top
managers 2020
 Characteristics of
current top talents
 Their development
from now until 2020
HR’s view on:
 Type of leadership
needed in 2020
 Characteristics of top
managers 2020
 Characteristics of
current top talents
 Their development
from now until 2020
26
The 2020 top executive is T-shaped
Company
 Whole company and
value chain
 Business environment
Self
 Leadership skills and style
 Personality
External
Broad general understanding  Macroeconomic
understanding
 Global business
 Cultural awareness
 Other industries
Deep
content
expertise
(one
function/
unit)
27
Expected characteristics of top
managers 2020 by HR
All agree:
 Strong communication skills;
 shares and combines information
 enables communication flow
 Analytic – grasps and communicates what’s relevant in huge
information flow
 New values: life balance and meaningful job more important than
status and pay
28
The Leadership2020 Project
Studies, Roundtables, Consortium Program
Phase I
Phase II
Phase III
Interviews
HR Directors
Survey
Future top leaders
Interviews
CEOs/Chairmen
Talents’ view on:
 Needs for
development
 Different leadership
development activities
 Awareness of own
talent status
 Commitment and
identification with
employer.
 Factors that
determine
attractiveness of other
employers.
CEO’s view on:
 Type of leadership
needed in 2020
 Characteristics of top
managers 2020
 Characteristics of
current top talents
 Their development
from now until 2020
HR’s view on:
 Type of leadership
needed in 2020
 Characteristics of top
managers 2020
 Characteristics of
current top talents
 Their development
from now until 2020
29
Future Leadership characteristics
Has broad business knowledge
Leads change effectively
Has strong communication skills
Is sensitive to cultural differences
Takes risks
Is able to build and maintain interpersonal networks
Brings out the best in people
Uses feedback
Is able to lead virtual teams
Is committed to develop the competence of subordinates
Future leadership characteristics
Overall
Leads change effectively
5,91
Brings out the best in people
5,87
Has strong communication skills
5,82
Is committed to develop the competence of subordinates
5,78
Is able to lead virtual teams
5,54
Is able to build and maintain interpersonal networks
5,54
Uses feedback
5,47
Is sensitive to cultural differences
5,26
Has broad business knowledge
4,51
Takes risks
3,74
Scale: 1= Much less important
4=No change 7= Much more important
The Leadership2020 Project
Studies, Roundtables, Consortium Program
Phase I
Phase II
Phase III
Interviews
HR Directors
Survey
Future top leaders
Interviews
CEOs/Chairmen
Talents’ view on:
 Needs for
development
 Different leadership
development activities
 Awareness of own
talent status
 Commitment and
identification with
employer.
 Factors that
determine
attractiveness of other
employers.
CEO’s view on:
 Type of leadership
needed in 2020
 Characteristics of top
managers 2020
 Characteristics of
current top talents
 Their development
from now until 2020
HR’s view on:
 Type of leadership
needed in 2020
 Characteristics of top
managers 2020
 Characteristics of
current top talents
 Their development
from now until 2020
32
What are the expected characteristics
of top managers 2020?
Balanced
Handle stress,
carries responsibility
for well-being,
self-aware
Driven
Passion, attitude,
ambition, courage,
hard-working,
hunger, wants to be
leader
Analytic
Insightful, dynamic,
ability for conceptual
thinking,
integrity
Knowledgeable
Broad knowledge
base, educated,
willing to learn,
self-leadership
Leader
2020
Inspiring
People leadership;
across cultures and
generations,
getting people
omboard
Communicative
Good communicators
easy to approach,
listening,
relation builder,
interpersonal skills
International
International
experience,
cultural
understanding,
language skills
33
CEO’s views on how to develop talents
Leader
2020!
Opportunities for
training
Leader
2020?
International
experience
Leader
2020?
Role models
Leader
2020?
Leader
2020?
Rotation
Exposure to
challenges
Future leadership - Summary
HR Directors
Future executives
CEOs
 Strong communication skills
 Analytic – see the big picture and
communicate it well
 New work-life balance
• Leading change
• Bring out the best in people and develop
their competencies
• Communication skills (multiculturally and
virtually)
• Inspiring and motivating people
• Communication and cooperation skills
(multiculturally)
• Analytical mind and broad competence
35
What are the leadership lessons of the
following example?
?
Leadership lesson no. 1
Believe in yourself!
Leadership lesson no. 2
Simplify!
Leadership lesson no. 3
Speak the language!
Leadership lesson no. 4
Give freedom within frames!
Four leadership lessons
Believe in
yourself!
Simplify!
Speak the
language!
Give
freedom
within
frames!
Lesson no. 1
Believe in
yourself!
1. Can you find at least three good reasons to
believe in the thing you’re pursuing?
2. Do you habitually try to do things
differently?
3. Are people in your team making
suggestions that seem to be a bit crazy?
4. Do you have the Tutti Frutti attitude?
44
Lesson no. 2
Simplify!
1. Have you made trade-offs and
prioritizations?
2. Is strategy closely related to the work people
perform?
3. Can people see how they contribute to
strategy?
4. Would your grandma understand your
strategic message?
45
Lesson no. 3
Speak the
language!
1. Is your message clear from
management/technical jargon?
2. Have you made efforts to tailor your message
to the target group (your organization)?
3. Does your message answer the question “Why
should we do this”?
4. Have you secured honest feedback?
46
Lesson no. 4
Give
freedom
within
frames!
1. Does your strategy leave room for people’s
personal contributions?
2. Can you keep out of the details?
3. Are you able to let a half-done plan out of
your hands and rely that your people will
improve it?
4. Are there many ways to implement things
successfully?
47