Issue link: https://www.e-digitaleditions.com/i/56529
Headlines Developing Business Skills For the 21st Century Over the past decade, leaders in every industry have been forced to deal with new imperatives in the busi- ness world that incorporate social, political, cultural, and environ- mental issues. They might find themselves running a multinational workforce located in a dozen coun- tries, struggling to understand labor practices across the supply chain, or responding to increasingly strict environmental controls. To manage these new demands, organizations have realized "they need something different from tomorrow's leaders, something more," say Matthew Gitsham and Kai Peters of Ashridge Business School in the U.K. "Tomorrow's leaders need a different way of seeing the world and relating with people, a broader awareness, and an enhanced range of skills and capabilities." To determine exactly what kinds of skills organizations will expect from tomorrow's leaders, Ashridge recently worked with a number of international schools and businesses to conduct a global survey of CEOs and executives. The research uncov- ered a stark and simple message, say Gitsham, director of the school's Center for Business and Sustainabil- ity, and Peters, the school's CEO. "Seventy-six percent of respon- dents say it is important that senior executives have the knowledge and skills to respond to the challenges and opportunities of the 21st cen- tury," they explain. "These include understanding climate change, cop- ing with resource scarcity, and doing 8 BizEd SEPTEMBER/OCTOBER 2009 business in emerging markets marked by poverty, corruption, and human rights violations. However, fewer than 8 percent believe that their own organizations are effectively develop- ing this knowledge and these skills. Furthermore, fewer than 8 percent believe business schools have very effective responses in place." Navigating the Future Based on the survey, Gitsham and Peters identify a number of skills that leaders will need in tomorrow's work world. These skills fall into three knowledge clusters: context, com- plexity, and connectedness. • Context. Eighty-two percent of executives polled believe that tomor- row's leaders need to understand the changing business context, which is affected by social, political, cultural, and environmental trends. They also need to know how other industries in their sectors—and all of their stakeholders—are responding to these factors. For example, say Gitsham and Peters, global warming has become a strategic issue for organizations— not just because of direct implica- tions for their assets and business models, but also because customers, investors, regulators, and competi- tors are focusing on global climate change. To integrate relevant trends into their strategic decision mak- ing, they believe, CEOs will need to use tools to help them manage risk, build scenarios, and scan the hori- zon for change. • Complexity. Tomorrow's execu- tives also will need to lead in the face of complexity and ambiguity, Gitsham and Peters note, since the trends affecting business are often ill-defined and much debated. Lead- ers will need to be creative and innovative in their problem solving (say 91 percent of survey respon- dents); able to learn from mistakes (90 percent); flexible and responsive to change (88 percent); and able to balance short- and long-term con- siderations (77 percent). • Connectedness. Leaders also must work with external partners, such as regulators, competitors, and local communities. Tomorrow's executives will need to identify key stakeholders who have an influence on the organization (according to 73 percent of survey respondents); understand what impact the orga- nization has on these stakeholders, both positively and negatively (74 percent); engage in effective dialogue (75 percent); and build partnerships with internal and external stakehold- ers (80 percent). Gitsham and Peters emphasize that community engagement will be even more critical for businesses like mining and energy companies that face rising expectations from govern- ments, NGOs, finance institutions, and indigenous populations. "They can no longer afford a mindset in which local communities are viewed as nuisances that must be managed. They must see communities as stra- tegic partners where constructive relationships are central to value pro- tection and value creation," say the researchers. "This means companies must do more than donate money to community projects—they must focus on real relationships." Leaders also must be prepared to contribute to public policy, they