Leadership 2030: Building the Leader of the Future

In the past, even the future was better.

Karl Valentin, comic

Leadership 2030The impact of megatrends on leadership

25 January 2012 GEORG VIELMETTER AND SIGNE SPENCER

3© 2011 Hay Group. All rights reserved

Agenda

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The world in rapid change mode

Hay Group’s research on the future of leadership

Five megatrends that will change the future of leadership

Agile organizations, post-heroic, overwhelmed leaders

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4

01The world in rapid change mode

Number of mobile phones that will have access to the internet, in 2020

all

Active facebook usersin millions

2006 20105

500+

Peak oil:year when the maximum rate of global conventional crude oil extraction is reached

2006

China’s demand for oil in million tons

2006 2020

350 600

Group of the elderly (65+)in the industrialized worldin per cent

2005 2050

15 26

Number of Western industrial countries among the 10 biggest economies

2009 2050

7 3

Biggest economyGDP at MER (constant 2009 US$bn)

2009 2050

USA14,256

3 x China

China51,180

50% bigger than USA

02Hay Group’s research on the future of leadership


What are megatrends?

Megatrends are long- term transformational processes on a global scale, with a broad scope and dramatic impact

Observable over decades, they can be projected with a high degree of probability at least 15 years into the future

TimeThey affect all regions and stakeholders, including governments, individuals and businesses

ReachThey fundamentally transform policies, society and the economy

Impact

03Five megatrends that will change the future of leadership


Megatrend 1: globalization 2.0

Key characteristics Increasing globalization Shift in economic balance of power to Asia Rise of a global middle class ‘Re-regionalization’ and ‘glocalization’


Megatrend 2: climate change and environmental impacts

Key characteristics Rising CO2 emissions and temperatures Environmental problems and growing industrial

and residential waste Greater environmental responsibility and

accountability Growing scarcity of strategic resources such

as water, minerals, metals and fossil fuels Rising investment in clean technology


Megatrend 3: individualization and value pluralism

Key characteristics Individualism as a global phenomenon Value pluralisms: work-life balance, self

fulfillment and self-expression, values-driven engagement

Rise of the creative class From mass to micro markets Decline of loyalty to organizations


Megatrend 4: digital lifestyle and work

Key characteristics New media conquer work and private life Individuals are ‘always on’ Public / private divide gets blurred Changing relationship networks: fewer

strong, more loose connections Power shift to digital natives


Megatrend 5: demographic change

Key characteristics World population growing and ageing, but

demographic imbalances Aging society demands generational

leadership War for talent, brain drain, brain cycle Increasing migration; will drive cultural

diversity

04Agile organizations, post-heroic, overwhelmed leaders


Five key challenges for organizations of tomorrow

1 Agility: where is the decision authority?

A more matrixed structure is often a response to ‘glocalization. ‘ Transparency and clarity about how decisions are made is key.

- Which decisions are global and which decisions are local?



2 Re-definition of the workplace: flat, decentralized, mobile, virtual, cross-x , appreciating pluralism

Very different from the traditional workplace- less ‘vertical’



Complexity of collaboration: global/local, inter-generational, diverse, virtual, inter-corporate

Will require new forms of leadership, much more listening and adaptation to different groups and individuals

Can lead to more innovation, if done well

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4 Growing costs: resources, sustainability, scarcity of people

Various forms of stewardship become more important: green initiatives, talent management



Organizational adaptations to create loyalty: sustainable, needs based (individualized, age, gender, culture, values)

A sense of shared purpose can bring people together, bring out the best in them.

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These challenges will require a new leader

The organization moves from: Hierarchical Stable Silos Highly defined roles and accountabilities

To Flexible Collaborative Agile Diverse


The leader moves from…

Standing up and telling people what they need and what to do


To: leadership as

“Lets sit down together and figure this out”


Five key features of the leader of tomorrow

1 Conceptual and strategic thinking

“There is so much to know about, to think about, challenges and opportunities can come from any direction.”



2 Ethics: integrity, sincerity, intellectual openness

“Getting things done is based on personal credibility and trust.”



3 Loyalty creation - meaning and identity economics

“What is our larger purpose as an organization? How do we contribute to that purpose?”



4 Leadership of heterogeneous and diverse teams

“It’s all about understanding and leveraging our different viewpoints.”



5 Real, power-sharing team work insideand outside of the organization

“I’m not the smartest person in the room – but I can bring smart people together.”

Questions?


Contact us

Georg Vielmetter+49 30 2 63 97 97 0

[email protected]

Signe Spencer+1 617 425 4508

[email protected]

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Leadership 2030: Building the Leader of the Future