Adapting your Leadership to a changing world in the modern era

Challenges, Technology, Sustainability, and Leadership

The era in which we live confronts us with multiple challenges, and the most pressing among them is climate change. Human activity has never consumed the Earth’s resources to such an extent, and our economic system, based on growth and the acceleration of the flow of materials, products, and capital, exacerbates this phenomenon.

The Urgent Challenge of Climate Change:
Digitalization and artificial intelligence enable us to control and benefit from an incredible volume of data, allowing us to understand in real-time what people think. But for what purpose? What is the impact and strategy for our businesses in 10 or 20 years? How fast should my data analysis and processing systems operate? What infrastructure should be deployed?
Harnessing Data and Technology:
A real shift in power is occurring between bureaucratic organizations and more agile businesses. What skills should we develop? What vision should we pursue?
Shift of Power and Strategic Considerations:
We have moved from a multicultural world to a world sharing a common set of values. But what values are we currently sharing, and are they the right ones?
Shared Values and Their Implications:
The consequence for our small and medium-sized enterprises (SMEs) is to change their paradigm and think on a large, global scale while still adhering to the logic of decarbonization. How fast will climate change accelerate, and what will be the role of my company in the face of crises related to water, energy, and raw material shortages, as well as how economies will manage migratory flows and climate refugees?
Adapting to a Changing World:
In recent years, the world has witnessed a series of alarming environmental events, with summers marked by historically dry and scorching conditions, resulting in devastating wildfires. Various European countries have faced water restrictions due to dwindling river levels, leading to the demise of vegetation, wildlife, and disruptions in ecosystems. Simultaneously, soaring prices of raw materials, exacerbated by global events like the conflict in Ukraine and surging energy costs, have contributed to a growing concern. These environmental and economic challenges have made it clear that the notion of an infinitely abundant planet is both irresponsible and self-destructive.
Global Governance and Sustainability:
The current global governance system (WTO, IMF, World Bank, United Nations) is incapable of addressing sustainable development and joint action towards a sustainable economy. Some states and global corporations are far from promoting a vision favorable to humanity, and the current globalized model is inefficient and unsustainable for our planet. Is sustainable growth possible? Can every company become carbon-neutral? Is a “lean” globalization or even degrowth unavoidable?
Leadership and Responsibility:
If our political leaders are incapable of providing a swift and appropriate response to the problem of species extinction, of which humans are a part, it is clear that businesses will have to take on this responsibility. What kind of world are we creating when humanity entrusts its life to profit-driven organizations?
The Challenge of Lean in a Changing Economy:
The disparity between my Lean process system and the upcoming changes is enormous. In the new economy, for businesses to gain recognition, they must be connected and work on-demand. A single popular post on a website can potentially reach millions of individuals in seconds. The market is controlled by the “popularity” of online demands, affecting the entire industrial, logistical, and commercial value chain. How do I manufacture in an economy driven by instant data? How do I run a factory whose order book is connected to global marketplaces (such as Amazon or Alibaba)?
The Role of People in Productivity:
Now, any factory in the world, regardless of its location, can be part of the global market. The internet and entrepreneurship are inseparable. The process produces the result; how do I adapt my business process not only to maximize visibility but also to respond to the volumes and speed of demands? How do I cope with the pace of change (technologies, skills, industrialization, supply, demand fluctuations)? Stability becomes informal, and instability becomes the norm. The world, activities, and businesses are now decentralized. In the face of this, companies, especially SMEs, must be agile. The Lean strategy should not be theoretical but effective.

Leadership Styles and the Role of Leaders

In our analysis of strategy management during times of crisis, we assume that the limit of Lean is its necessary adaptation to the company’s ecosystem, and its financial dimension is indispensable for making an impact. Management control enables Lean to adapt the company, making it resilient, agile, and flexible. It is crucial for Lean to integrate the need for resilience in the face of climate change.µ

Lean and management control that does not place humans at the heart of productivity is inconceivable. Algorithms are replacing people in processes. In the future, even in production, employees will need to be highly skilled (3D printing, Industry 4.0, IoT, etc.). In our research, we have demonstrated that the best way to lead and adapt a flexible strategy is to maintain a posture that is both structuring in the systemic dimension but also supportive. Decisions must be made but also shared. Otherwise, managerial action becomes a hindrance to the organization, and Lean remains a theory. We have long neglected the managerial styles of leaders, either too controlling or too liberated.

However, we now know that the leader’s personality directly impacts their degree of power and their actions, both internally and externally. Paradoxically, the leader themselves can be seen as a hindrance to the approach. Nevertheless, in times of crisis, the leader must be able to maneuver skillfully to carry out all necessary actions (market, strategy, products, finances, expenses, social issues, politics, etc.) within a tight timeframe.

For this reason, it is essential for the leader to surround themselves with an inspiring and competent network (external advisors, supervisory board, etc.) to assist in making the right decisions and progressing in understanding not only their own operational mode but also their ability to inspire and lead the forces of the company.

In summary, Navigating a shifting landscape

Climate Change and Current Challenges:
The era presents numerous challenges, with climate change being the most pressing.
Human resource consumption and growth-based economic systems exacerbate climate change.
The Role of Technology:
Digitalization and artificial intelligence offer vast data control but raise questions about their purpose and impact. Considerations include business strategies, data analysis speed, and infrastructure needs.
Shifting Power Dynamics:
Power is shifting from bureaucratic organizations to agile businesses.
Questions arise about skill development and vision in this changing landscape.
Shared Values and Implications:
A transition is observed from multiculturalism to shared values.
The text explores the nature and implications of these newly shared values.
Environmental Concerns and Paradigm Shift:
Small and medium-sized enterprises (SMEs) must shift to a global perspective.
Adapting to climate change and addressing resource shortages are central concerns.
Urgency of Environmental Issues:
The text discusses the pressing concerns of climate change and resource scarcity.
Recent events, such as wildfires and resource price hikes, highlight the immediacy of these challenges.
Global Governance and Sustainability:
Current global governance structures are deemed inadequate for sustainable development.
The text questions the feasibility of sustainable growth, carbon neutrality, and the role of a “lean” approach.
Leadership and Responsibility:
Businesses are expected to take on more responsibility in the face of inadequate political responses.
Leadership’s role and the importance of building a competent network are emphasized.
Challenges for Lean Strategies:
Adapting Lean processes to a rapidly changing economy poses significant challenges.
Coping with instant data-driven markets and global interconnectedness is a critical issue.
The Human Element in Productivity:
In a decentralized business world, the role of people in productivity becomes crucial.
Adapting to change and ensuring agility are highlighted.
Leadership Styles and Resilience:
The impact of leadership styles on resilience, adaptability, and decision-sharing is discussed.
The text emphasizes the importance of leadership during times of crisis and building a competent network for support.

“Adapt or perish, now as ever, is nature’s inexorable imperative.”
Herbert George Wells