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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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