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LeadershipwithaPowerfulPurpose

MAY2023

Leadershipiscentraltotransformationsuccess

Energizeandengagethe

organizationbydefining

andcascadingitspurpose

andcaseforchange

x2.3

highertransformation

successrate

Alignseniorleadershipon

scopeandhelpemployees

understandwhytheyneed

tobepartofthechange

x3

highertransformation

successrate

Supportleadersin

activatingkeybehaviors

anddrivingchange

x1.5

highertransformation

successrate

Source:BCGTransformationCheck2022.

Leaderengagement

Employeebuy-in

~53%

~64%

~45%

~59%

–38%

–60%

Yetleadershipengagementintransformationsremainslowerthanbeforethepandemic

Averagetransformationsuccessagainstexpectations1

Valuerealization

Costtoachieve

Duration

2020

~73%

+15%

+19%

2021

~46%

+32%

+69%

2022

–45%

+31%

+69%

Valuerealizationinitiallydeclinedduringthepandemicandhassinceremainedstable

Costoverrunsnearlydoubledduringthepandemicandarestillhigherthanexpected

Timelinedelaystripledduringthepandemic

Leaderengagementhasdecreasedsignificantlysincethepandemic,showinga~40%dropwithintwoyears

Employeebuy-indeclinedduringthepandemicandhassinceincreasedslightly

Sources:BCGtransformationcheckanalysis,2020,2021,2022.

1Basedonself-assessmentbysurveyrespondents.

Generativeleadershipisapurposefulapproachtobuildforthefuturethroughthehead,heart,andhands

Fromextractive...

Consumeresourcesbyfocusingonbusinessgrowth

andprofitability,regardlessofotherconsequences

...togenerative

Growandexpandresourcesbyputtingsocietyand

theplanetatthecoreofthebusinesses

Head

Reinventingbusinesstoserveall

stakeholders

Heart

Inspiringandenrichingthe

humanexperience

Hands

Executingandinnovatingthrough

superchargedteams

Source:“WhytheWorldNeedsGenerativeLeaders,”BCG.com,March17,2022.

Fullyengaginghead,heart,andhandsiskeytosustainingperformanceimprovementsfromatransformation

Companieswithsustainedperformanceimprovement(%)

33%

Partiallyengaging

Head,Heart,andHands

96%

Fullyengaging

Head,Heart,andHands

Source:“WhytheWorldNeedsGenerativeLeaders,”BCG.com,March17,2022.

Buildingpurpose-driven,generativeleadershipforthefutureisamultistagetransformationjourney

Future-built

Scaling

Embeddedpurposeacross

theorganizationand

deliveredmultiplewavesofsuccessfuldigital

transformation—pivotingtoinnovation-ledgrowth

Continuousinnovationat

Emerging

Executedsuccessful

programmatic

transformationwitha

purpose,butchallengesineffectivelyscaling

theleadingedgeof

Stagnating

Yettodefineapurposeandgetdigitaltransformationright—limitedvalue

created

disruptionwithgenerative,purpose-drivenleadershipatthecore(fullyengaginghead,heart,hands)

organization-wide

LEADERSHIPWITHOUTAPURPOSE

Programmaticapproachtofixthecoreandbuildafoundationforinnovation(digitaltransformation)

GENERATIVELEADERSHIP

Embedandscalecross-functionalattributestopivottogrowthfrominnovation(continuousinnovation)

Source:BCGanalysis.

Head:reimaginingandreinventingthebusiness

toserveallstakeholders

Sources:BCGandBVAGroupleadershipsurvey,October2020andJuly2021;BCGanalysis.

Createalignmentwithapurposeandvision

·Defineasenseofwhytheorganizationexists·Identifyandprioritizethebigrocksand

communicateatalllevels

Ensurevalueforallstakeholders

·Reshapewhatvaluemeanstotheorganization·Expandyourviewofstakeholders

·Understandtheconnectionsyourorganizationhastoaddressingworldchallenges

Reimagineandreinvent

·Challengeexistingassumptionsto

unlockcreativity

·Usecombinationofdata,logic,andintuitiontomakedecisions

Heart:inspiringandenrichingthehuman

experience

Sources:BCGandBVAGroupleadershipsurvey,October2020andJuly2021;BCGanalysis.

Leadwithpurpose

·Embedpurposeintoeverythingtheorganizationdoes—goals,decisions,actions,etc.

·Understandtheconnectionbetween

organizationalandindividualpurpose

Createanempoweringculture

·Putthekeyelementsinplaceforaculturewherepeoplecandotheirbestwork

·Empoweryourpeopleandsupporttheirgrowth

Demonstratecare

·Listenandlearnfirst,thensupport

·Articulateandrolemodeltheimportanceof

wellbeing

·Recognizeandconfrontyourbiases

Hands:executingand

innovatingthrough

superchargedteams

Sources:BCGandBVAGroupleadershipsurvey,October2020andJuly2021;BCGanalysis.

Createsuperchargedteams

·Leverageawidearrayofbothinternaland

externalskillsets,aswellastechnologyto

composeteams

·Insistthatteamsfocusontheirhead,heart

andhandstocreatethehighestvalue

Inspireownershipinothers

·Sharethegoalandlettheteamdecidehow

toaccomplish

·Letgoofmorethanyoumightfeel

comfortableandmakeyourteamsmore

autonomous

·Trustthatyourteamwilldeliver

Boostresilience

·Learnfromsuccessesandfailures

·Beflexibleandadapt

·Encourageexperimentationinallteams

Head:future-builtcompaniesfocusonC-suitedigitalsavvinessandleadershipalignment

ReimaginingthebusinesstoserveallstakeholdersShareofcompanieswithhighscore

KEYENABLERS

C-suitedigitalsavviness

C-suitealignment

Middlemanagementalignment

Prioritiesandmonitoring

Roadmapfordigital,AI,andclimateandsustainabilityinitiatives

ESGalignmentwithstrategy

CurrentESGperformance

Source:BCGGlobalCompanyoftheFutureSurvey2022;n=546.

Note:ESG=environmental,social,andgovernance.

STAGNATING

15%

23%

26%

22%

20%

20%

11%

EMERGING

37%

60%

41%

45%

44%

36%

30%

SCALING

68%

81%

65%

73%

77%

57%

48%

FUTURE-BUILT

100%

97%

89%

89%

86%

64%

58%

Heart:future-builtcompaniesfocusonsocietalleadershipandacompellingemployeevalueproposition

InspiringandenrichingthehumanexperienceShareofcompanieswithhighscore

KEYENABLERS

Societalleadership

Compellingemployeevalueproposition

Peoplegrowthanddevelopment

Digitalskillinvestment

STAGNATING

39%

15%

15%

41%

EMERGING

49%

32%

28%

36%

SCALING

81%

75%

65%

32%

FUTURE-BUILT

78%

75%

72%

72%

Source:BCGGlobalCompanyoftheFutureSurvey2022;n=546.

Hands:future-builtcompaniesfocusonempoweringmanagement

ExecutingandinnovatingthroughsuperchargedteamsShareofcompanieswithhighscore

KEYENABLERS

Empoweringmanagement

Rapidscalability

Entrepreneurialculture

Optimizedworkdesign

Teamfocus

STAGNATING

20%

11%

23%

15%

27%

EMERGING

38%

23%

30%

30%

44%

SCALING

74%

44%

53%

58%

73%

FUTURE-BUILT

100%

86%

83%

83%

75%

Source:BCGGlobalCompanyoftheFutureSurvey2022;n=546.

Leadersseeclearpurposeasessentialtotransformationsuccess…

Amongtop3successfactorsalongtransformation,transformationleadersratedaclearpurposeas#1

KEYFACTORSINSUCCESSFULTRANSFORMATIONS

470

398

375

30%

Unsuccessful

39%

transformations

Averagesuccess

withtransformation

Successful

transformations

31%

Clear

purpose

Alignedleadership

Clear

communications

Source:BCGBrightHouse,BCGGlobalTransformationcheckBenchmarks2020.

x1.3

x0.7

x1.1

…yetleadersoftenneglectheart-basedleadershipduringtransformations

HOWMUCHOFLEADERS’FOCUSDOESEACHDIMENSIONRECEIVE?

HOWMUCHOFLEADERS’FOCUS

SHOULDEACHDIMENSIONRECEIVE?

29%

Head

38%

Heart

33%

Hands

38%

27%

35%

Sources:BCGandBVAGroupleadershipsurvey,October2020andJuly2021;BCGanalysis.

Companiesshouldfocusonsixprinciplestodevelopgenerativeleaders

Relevance

Balancelearningcontentandcapability

buildingacrosshead,heart,andhands

Flexibility

Tailorjourneystoleaders’needsandfocusonasubsetof3–5targetbehaviors

Impact

Measuretheoutcome

fromeveryaction

Immersion

Investintargetedanddynamiclearningactivities

Integration

Buildchangeintoleaders’

real,day-to-daywork

Coaching

Unlockpersonalchangeforindividualsinacoordinatedapproachwith

overarchingtransformation

Source:BCGanalysis.

Andleadersmustsetapowerfulexamplebyshiftingkeybehaviors

1

Drivecross-functional

collaboration

Buyintotheintegratedroadmapandcreatecross-functional

teamsthatworkasaunittoward

sharedobjectives

·Engageconstructivelyto

managetheworkflowsbetweenproduct,network,business

unit,andITteams

2

Beanactiveinitiative

sponsor

·Engageondetailsandgive

pragmaticassistanceon

bottlenecksandissues

·Picktherightaccountable

initiativeowners,whoare

motivatedtosucceed

·Emphasizetheconnection

betweeninitiativesandthe

broadertransformation

·Celebrateteamsuccesses

3

Workforefficiencyand

quickwins,notperfection

·Committofrequentreviewsof

initiativesandauthentic,informaldiscussionsaboutissues,risks,

trade-offsandre-prioritization

·Askquestionsandencourage

continuousre-prioritizationvs.astaticworkplan

·Demandsmall,frequent

outcomes,allowingteamsto

learn,iterate,andimprove

·Implementinformal24-hour

escalationpathways—ifanyone

atanyleveloftheorganization

hasaproblemandtheycan’t

resolveitintheirteam,theyhavethegreenlighttoescalateit

4

Activelyseekcoaching

·Strivetounlockpersonal

changefirst

·Learnandrefinehowtohighlightinitiativesinallcommunications

asatoppriority

Source:BCGanalysis.

Results

·Mostimpactfulcapabilitieswere

selectedtofurtherstrengthenthem

·Managersgrewmorecomfortable

havingdifficultconversationsduringthetransformation

Aminingcompanysupplementedatransformationbyhelpingitsfrontlineleadersengagemorewiththeheart

Context

·Aminingcompanyseekingtoimproveproductivityunderwentarapid

transformationeffort

·Thecompanysoughttoupskill

approximately6,000frontlinemanagerstobemorecaringandengaged

·Thecompanybuiltaleadershipjourney

focusedonHeartqualitiestoimprove

recognition,peoplecoaching,and

empowermentinleadersacrossthefirm

Action

Discover

Throughrobustmeasurements,thecompanyaccuratelyassessedperformancebyindividualandfunction

Learn

·Anewplaybookshowedmanagershowtomanageemployeesentimentsanddifficultconversationsduringthetransformation

·Personalizedcapabilitytrainingsessions

addressedtheneedsofindividualmanagers

Apply

Applylearningexperienceintodailyroutinetoensurepracticalityandrelevancefor

frontline

Embed

Rolemodelswereidentifiedtoteachthe

oth

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