Growing Leaders in the Digital Era
In an ever-changing world, businesses are either disrupting or being disrupted as the wave of digital transformation impacts entire business models.
Currently, various aspects of business operations, including communication, analysis, bill payments, and recruitment, are undergoing changes. The digital transformation era is compelling companies to overhaul their leadership programs to develop a new type of leader known as digital era leaders, much like they do for other aspects of their business.
Fluid Leadership
In the digital era, what exactly determines a great leader? How do traditional leaders differ from leaders in the digital era? Numerous C-level executives who previously relied on a command-and-conquer style of leadership are now realizing that the digital age demands a more flexible, collaborative, and agile approach.
To stay competitive in the current economy, organizations must overhaul their internal leadership programs in order to develop new leaders who possess interdisciplinary skills and a comprehensive understanding of various business functions, industries, and technologies.
In the digital era, leaders have the ability to foster a culture of learning and embrace continuous improvements. They possess the flexibility to effectively manage teams that are comprised of a growing number of contract and part-time workers. The presence of innovation in their DNA along with their inclination to take risks are two key qualities that define digital leaders.
Digital Leaders in Place
Given the constant changes in the economy and the availability of services through apps, one would anticipate that companies are actively transforming their internal processes to develop a new breed of leaders. However, the truth is that the majority of organizations have not acted swiftly enough to foster leaders who meet the requirements.
In the Deloitte’s 2017 Global Human Capital Trends survey, it was found that only a small fraction of companies, specifically 5%, feel that they have competent digital leaders. However, the survey also revealed a positive trend, with 72% of respondents indicating that they are in the process of creating or have already started implementing new leadership programs that specifically target digital management.
Currently, a mere 5 percent of companies have confidence in the presence of capable digital leaders today.
Fostering digital leaders is important for any business, especially those undergoing business and IT transformation, which applies to all companies in the current digital economy. It is crucial for organizations in various sectors to initiate changes in company cultures and talent across the organization, in order to encourage new methods of thinking, collaborating, and connecting.
Leadership Development in the Digital Age
The Learning and Performance Institute states that in the digital age, leadership development involves providing leaders with the necessary digital skills and knowledge to effectively lead their teams in a digital world.
This involves acquainting them with emerging technologies like data analytics, artificial intelligence, and automation, and instructing them on leveraging these technologies to enhance business operations. Additionally, it involves providing them with the necessary skills to oversee remote teams, foster teamwork, and communicate efficiently in a digital setting.
With the ongoing embrace of digital transformation, the role of a leader is undergoing a change. In previous times, leadership revolved around the act of issuing commands and making decisions. Nevertheless, in the digital era, leaders must adopt a more collaborative and inclusive approach.
In order to foster innovation, it is important for them to establish a cultural environment that encourages experimentation and risk-taking among their teams. Additionally, they must possess the qualities of being flexible and adaptable, being able to swiftly change direction in response to emerging technologies or market conditions.
The Harvard Business Review article suggests that leaders have a unique chance to reassess fundamental aspects of their business through digitalization.
By thinking step by step, individuals can improve their comprehension of the extent to which data and analytics are being employed to monitor the market and develop business strategies, as well as assess if they are effectively harnessing the talents of their employees, both individually and collectively.
In conclusion, leaders are urged to evaluate their individual utilization of data and analytics, thereby serving as role models for the modern era by being observant, knowledgeable, organized, innovative, and self-assured.
According to Steve Denning, a contributor to Forbes, the new leadership style in the digital age involves generating a feeling of purpose and significance among employees.
It is crucial for leaders to possess the skill of storytelling in order to inspire their teams through a captivating vision and narrative that corresponds with the objectives and principles of the organization. This becomes even more significant for the Gen Z workforce, as they prioritize work that holds significance and aligns with their personal purpose.
Leaders should focus on this group because, as highlighted in this Forbes article, Gen Z and millennials are the largest and most diverse group of media users in history. Additionally, they are integral to the digital revolution. To thrive in the digital age, companies must develop strategies that cater to the specific needs of these digital generations.
In the post-Covid world, the ability to innovate is crucial for the success of any organization. With the business environment changing rapidly, companies need to quickly adapt to new challenges and opportunities. Thankfully, fostering a workplace culture of innovation and creativity is possible through empathetic leadership.
In a survey conducted by Catalyst, a global not-for-profit organization, it was discovered that companies led by empathetic leaders had a greater level of innovation in comparison to companies led by leaders lacking in compassion.
The above statement indicates that empathetic leaders have a beneficial influence on the creativity and problem-solving skills of their teams. Empathetic leaders are inclined to establish a secure and supportive work atmosphere that promotes employee risk-taking and the sharing of new ideas. When employees feel appreciated and listened to, they are more inclined to contribute to the development of innovative products, services, and solutions.
Furthermore, leaders who possess empathy have the ability to comprehend the distinct strengths and skills of their team members. They acknowledge the significance of having a diverse and inclusive team and are inclined to assemble teams comprising individuals who offer varying perspectives and experiences. This assortment of thinking can result in increased creativity and ingenuity in problem-solving.
Empathetic leaders place importance on collaboration and teamwork, which can improve innovation in the workplace. By promoting communication and cooperation among team members, empathetic leaders foster a culture of knowledge-sharing and brainstorming, resulting in the emergence of innovative ideas.
The difference between traditional and digital leaders
- The venture capitalist: These executives that understand how investors think and approach innovation from a valuation perspective. They understand the valuation game, invest in talent and cultivate innovation. They mainly focus on educating others about the implications of digital technologies and the value it creates.
- The innovators: These are leaders that are constantly exploring the forefront of technology and testing how technology can improve business. They reimagine the future and the business models that support that vision. They create the roadmap, the winning digital strategy and set the pace for change.
- The transformer: These are leaders that understand the vision and are able to transform the operations and culture. They manage the organization and its people through radical change and are able to push the digital agenda forward.
- The enablers: These are executives that enable the path from the digital initiatives on the drawing board to the marketplace. They bring and build technical capabilities such as analytics, application design and development that enable the execution of the strategy. They boost the confidence of the workforce by giving them the right tools and help employees overcome digital challenges.
Challenges of Leadership in the Digital Age
One of the main challenges of leadership in the digital age involves the management of a hybrid workforce. This is particularly challenging due to the increasing number of individuals working remotely or from home, which requires leaders to discover novel methods of maintaining team engagement and productivity.
New communication strategies and tools, such as video conferencing, project management software, and collaboration platforms are necessary for this. Additionally, leaders must become more empathetic and understanding, as their team members may have personal or family issues that can affect their work.
The speed of change in the digital age poses an additional challenge. Constantly, new technologies and innovations are arising, and it is crucial for leaders to stay updated. Leaders must be receptive to fresh ideas and ready to test new strategies. Additionally, they should embrace ambiguity and uncertainty since digital transformation can be intricate and unpredictable.
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Organizations need to acknowledge that leaders in the digital age require different strengths and skills while pursuing global digital transformation. The emphasis should be on innovation and collaboration.
Companies can position themselves for competitive advantage in this digital era by restructuring leadership programs and placing emphasis on empowerment. Empowering potential leaders to think, act, and react differently is crucial in achieving this.
