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The Changing Leadership Landscape

Against the backdrop of a seismic humanitarian crisis in Ukraine, energy volatility, labour shortages, a higher interest rate environment and continued supply chain disruptions, it’s undeniable that today’s business leaders are under more pressure than ever to deliver in areas that were once far beyond the CEO job description.  

Where once top executives were judged almost exclusively on the bottom-line, today they are measured at least as much by their advocacy of societal issues, engagement with geopolitical issues, and advancement of sustainability efforts. In uncertain and frightening times, leaders must rise to the occasion.

The good news for leaders is that studies have consistently shown a direct link between ESG performance and financial performance, so this isn’t a case of either-or.  However, it does require a broader range of skills and a new “generative” leadership style. 

Defining Generative Leadership

Boston Consulting Group (BCG) identified the early signs of such an approach during the COVID-19 pandemic, a time where leaders had no choice but to adapt in order to respond to myriad issues. 

Notably, 75% of the 9,000 employees who responded to a BCG survey said they were satisfied with how leaders performed during the first wave of the pandemic. We believe that what worked well during the pandemic can form the basis for an approach to leading that we call generative leadership.

Simply put, generative leaders believe that their obligation to society and the planet is at the core of their businesses, and not just an afterthought.  They strive to leave the world in a better place than they found it.

Generative leaders combine three interconnected elements: looking to reimagine and reinvent their businesses; creating an inspiring and enriching human experience for their people; and finding ways to execute and innovate through supercharged teams that work with agility and across boundaries. 

In other words, generative leaders lead equally with their head, their heart, and their hands. BCG data shows that organisations unlock the greatest value when these three complementary elements are working together in balance. 

The Head

Generative leaders have bold visions for the future. They do not only reimagine their company’s offering but lead the way across organisations to reinvent the wider industry. This is achieved through the cultivation of creative thinking, pursuit of new technologies and realisation of ideas that once seemed impossible.

Transparency is crucial to this, in order to ensure that all employees understand a certain vision and what is needed to achieve it. In a generative organisation, transparency works in both directions, with the leadership team equally understanding and responding to the needs of its employees.

The Heart

Building great cultures and workplaces that enable teams to thrive is another core attribute of generative leadership.  Employees value recognition, a sense of belonging, and clear purpose that is bigger than themselves. To achieve this, generative leaders invest in relationships with people.

They’re empathetic and give of themselves without any expectations. They engage with their teams rather than standing apart and prioritise coaching and development to support their employees in realising their full potential. Crucially, generative leaders also tirelessly celebrate success, learning, and progress – not just perfection.

The Hands

Generative leaders see leadership as a team sport. It’s impossible in the current climate for a hero CEO to grapple alone with the challenges outlined earlier. Instead, generative leaders form high-functioning, empowered teams that can execute and innovate with agility.

To build these “supercharged” teams successfully, a generative leader will engage directly with team members to gain a holistic view, ensure collaboration in the service of a company’s overall purpose and strategy, and cede decision-making to their teams without passing the buck. 

Becoming a Generative Leader

Generative leaders seek to be role models: they are open, curious, vulnerable, and humble, and they seek out and act on feedback. Most importantly, they are aware that a shift to a generative approach is a collaborative and long-term effort.

Generative leadership cannot be pursued in isolation; the shift from a “me” sport to a “we” sport requires trust and team behaviour across the organisation, as well as continual feedback, reflection, and coaching. No two leadership teams’ paths will look the same.

Becoming more generative is, crucially, a long-term pursuit. Like healthy living or athletic conditioning, it requires fundamental and permanent lifestyle change. 

Around the world, such leadership teams are beginning to emerge, ready to take on new challenges with an optimistic vision of the future and a sense of purpose in solving the world’s challenges.

In this moment of fundamental change, the world needs leaders who can stand up and make a lasting difference. Generative leaders are answering this call.