The new economical order:
The world over, there is a mixed response some of which is a sense of missed opportunity, but there is also a sense of exciting developments. For many firms, the recession has been very tough and they’ve had to make cost reductions, there are some that have adapted to that more creatively by reducing the hours of the people, by having a much more honest conversation with their employees about how to work together to manage the recession. But there is also a new economic order being born. We are entering the age of sustainability, where natural resourecs are going to be scarce on one hand, and on the other, in the last 10 odd years, the assumptions has been that talent is scarce. But actually, talent is abundant the key issues are how you think about skills and capability and how you inspire and engage existing talent. If we can understand this better e can harness it better
Choices of tomorrow’s company:
It is the understanding that creating value for the employee, society and nation is the future. Organizations have to create sustainable value. Talent has to be harnessed and understood to produce products and processes that will be successful in the future. Rather than hierarchical top down, old business models, inclusive stakeholder driven and collaborative dynamic organizational model will be the order of the day. Organizations will have to alter their approach to issues such as governance and environmental responsibility because talented people to work for ethical and responsible employers.
The job of tomorrow’s global leader is a tough one. The qualities are changing. First is understanding globalization, and thriving in globalization. Understanding dynamism that comes from being in a global market place. CEOs need to be able to manage complexity, so while earlier CEOs would get away by being expert in technical areas, now, they need to understand the big picture. For that, they need to work with civil society and not have a narrow vision of their business report card. Third is culture that is driven through a leader in an organization. Finally, they need to be good with people to understand behaviors n relationships that drive businesses. They need to create a humane enterprise. As a fallout of the recession, value was destroyed due to a few bad decisions, made by boards and governing bodies that did not ask important questions to their employees. We need charismatic leaders to drive these conversations.
Organizations creating a better world:
It is not possible to generate financial return without creating strong communities and environmental capital. For this, business leaders need to have a great sense of what their mission and purpose is; they need to measure profit the right way. They need to be confident of their values and how they live those values, how they live up to the challenge of transparency as well. Finally, they need to create a framework to ensure sustainable value; they need to be able to work with multiple agencies to do that – profit and non-profit. They need to step outside the comfort zone of focusing on a narrow set of business conditions. Global organizations need to pay attention to issues of environment, water, waste, human rights. Far often, it is the skills of the business that will provide solutions for all these problems.
Company of the future:
Will have a governance structure which is diverse and transparent and where complexities are fully understood to enable tough decisions it will have ownership structures that have a long term vision, and the courage and capability to see that through. In the future leadership qualities will need to be inculcated at every level of the organization. Hierarchical structures will give away to a lot of smaller parts coming together to co-create value. Organizations will not necessarily be large conglomerates. Therefore, to empower leaders of smaller projects with those values become really critical. Organizations will have to have a deeper and broader understanding of the capabilities that people have, their behaviors, what will inspire and engage them, and if they will get their whole self to work. Businesses need to be a much more confident part of society and need to create value to be successful in the long term.