Leaders today are beginning to focus on building agile, human-centered, and digitally enabled organizations able to thrive in today’s unprecedented environment and meet the needs of a broader range of stakeholders (customers, employees, suppliers, and communities, in addition to investors). Indeed, a large portion of American workers-56 percent- claim their boss is mildly or highly toxic, while 75 percent say dealing with their manager is the most stressful part of their workday.įor 21st-century organizations operating in today’s complex business environment, a fundamentally new and more effective approach to leadership is emerging. However, with the advent of the 21st century, this approach is reaching its limits.įor one thing, this approach doesn’t guarantee happy or loyal managers or workers. Traditional management was revolutionary in its day and enormously effective in building large-scale global enterprises that have materially improved lives over the past 200 years. What are the limits of traditional management styles? In these organizations, leaders had three roles: planners (who develop strategy, then translate that strategy into concrete steps), directors (who assign responsibilities), or controllers (who ensure people do what they’ve been assigned and plans are adhered to). The context was the traditional industrial economy command-and-control organization, where leaders focused exclusively on maximizing value for shareholders. In the past, leadership was called “management,” with an emphasis on providing technical expertise and direction. A 2017 McKinsey book, Leading Organizations: Ten Timeless Truths (Bloomsbury, 2017), goes deep on each aspect. Ten timeless topics are important for leading nearly any organization, from attracting and retaining talent to making culture a competitive advantage. Senior leaders must develop a broad range of skills to guide organizations. A situational approach enables leaders to focus on the behaviors that are most relevant as an organization becomes healthier. One important lens is organizational health, a holistic set of factors that enable organizations to grow and succeed over time. Leadership strategies must reflect each organization’s context and stage of evolution.
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The key to unlocking shifts in behavior is focusing on mindsets, becoming more conscious about our thoughts and beliefs, and showing up with integrity as our full authentic selves. Is a leader communicating effectively or engaging others by being a good listener? Focusing on behaviors lets us be more objective when assessing leadership effectiveness. At the core are mindsets, which are expressed through observable behaviors, which then lead to measurable outcomes.
What’s more, leadership is not something people are born with-it is a skill you can learn. It is their actions, not their words, that inspire trust and energy. Some people in formal leadership positions are poor leaders, and many people exercising leadership have no formal authority. In this sense, leadership is something you do, not something you are. Whether you’re talking about an executive, manager, sports coach, or schoolteacher, leadership is about guiding and impacting outcomes, enabling groups of people to work together to accomplish what they couldn’t do working individually. All leaders, to a certain degree, do the same thing.
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