The success of a corporation is strongly driven by its leadership. However, with the world rapidly transforming, the requirements and characteristics of a successful leader are evolving as well. The coming decade will force businesses to adopt sustainability practices, whilst operating under high risk and uncertainty. In order to face the challenges of today, companies will increasingly look for leaders with specific competencies, skills and mindset. Willem Ledeboer, Partner in Amrop, offers a new perspective and leadership concept for companies and CEOs in these times of global change and transformation towards sustainability.
In this leadership transition companies may struggle to precisely define which type of leaders they actually require to provide guidance on these emerging challenges. Young talent is increasingly discerning on the criteria they apply when joining a company, such as ESG targets and how committed a business is to leading this change. The Amrop Wise Leadership Report has developed a fundamental outline of the challenges leaders face while “Stepping Up to Sustainable Business Performance”. It will be essential for companies, regardless of size or global reach, to identify the “right leaders” in their C-Suite in order to
thrive.
Purposeful Leadership consists of three levels – essential for C-Suite Executives and Board members – for businesses to successfully navigate the sustainability transition. Purposeful Leadership focuses on:
INDIVIDUAL PURPOSE
CEOs carry enormous responsibility, especially in times of crisis or uncertainty, while having to ensure financial performance and overall corporate success. Short-term actions and crisis management rarely enable clear strategic decisionmaking, yet individual leadership with vision and foresight is critical for long-term corporate success. Examples of this are prominent leaders such as Paul Polman, who stands out with a unique vision and vocalness on introducing disruptions and sustainable processes in a company, through the willingness of CEOs to establish a purpose- and mission-driven business approach.
BUSINESS PURPOSE
Individual leadership needs to be directly linked to the overall strategic and operational leadership of the company by translating a CEO’s or board’s vision into actions and results. Only if individual and business leadership are centered on a Purposeful core will it be possible to maximize opportunities for companies. Businesses will need to work closely with all stakeholders, such as the investor community, to unlock the upcoming financial opportunities arising from the transition.
SOCIAL AND ENVIRONMENTAL PURPOSE
Individual and Business Purpose should align on this third leadership level, largely driven by external factors, both positive and negative, such as climate change and social inequality. These forces inevitably create rippling effects for the economy; companies have to acknowledge the critical role they play, for society and the environment. The feedback loops across all three leadership levels are critical for decision-making and concise action. Companies such as “Better Future” aim to not only create profit, but place a positive impact for society and environment at the centre of their corporate mission.
Purposeful Leadership Competency Matrix
The Purposeful Leadership Competency Matrix (PLCM) aims to bring all essential competencies, skills and mindset of Purposeful Leaders together in an actionable framework. This matrix can serve business professionals to identify and recruit future talent, as well s help companies go beyond their current "business-as-usual" approach to maximise their wide impact on the economy, environment and society.
Linking heart and skill-driven leadership – creating a strong link between a skill- and heart-driven leadership approach is critical for success. Purposeful Leaders need the right technical know-how, but also a "moral compass" to make decisions in uncertain times.
Aligning Purpose and Profit – businesses can create a stronger alignment of short-term profits and long-term purpose by building on a value-based business model. This alignment is central to overcoming the short-termism many companies are facing, and the lack of customer and shareholder support for the transition.
Connecting Vision and Value – the vision and values of a leader are essential. However, if the vision is not anchored in values, it is difficult for a leader to create impact and a coalition of supporters and other change makers. Only if a leader can embody both vision and values in an authentic way will others be able to follow.
Strengthening Commitment and Action – ultimately, Purposeful Leadership is about creating impact at a corporate level, as well as for its customers and stakeholders. The sustainability transition now focuses at the level of scale and urgency, which will disrupt markets and society. In order to "move the needle" on sustainability, it will require both: commitment and action.
To read the full white paper go to:
https://www.amrop.com/sk/en/news-insights/articles/purposeful-leadership-leadership-for-the-sustainability-transition
This article has been brought to you by Amrop Partners.
Author of the article:
Igor Šulík, Managing Partner & Leader of Global Amrop Leadership Advisory Practice Group
Igor Šulík
Managing Partner & Leader of
Global Amrop Leadership Advisory Practice Group
