Addressing the Leadership Deficit: A New Paradigm for Developing Future Leaders

According to a recent Manpower report, 83% of employers in India are experiencing talent shortages, and a significant portion of this is in leadership positions. That’s not all, almost 70% of HR professionals lack confidence in their organization’s ability to pilot the company into the future, keeping in mind the current leadership cadre.

There’s a major deficit in the availability of leadership in the industry at present. This is a critical challenge for organizations as they are struggling to steer the increasingly competitive and complex landscape of today. Businesses across the world are struggling with leadership deficit and it impends their capability to deal with multifaceted challenges and grab the right opportunities.

According to a recent Manpower report, 83% of employers in India are experiencing talent shortages, and a significant portion of this is in leadership positions. That’s not all, almost 70% of HR professionals lack confidence in their organization’s ability to pilot the company into the future, keeping in mind the current leadership cadre.

Furthermore, 81% of employers in India are facing difficulties in hiring talent, especially for leadership roles in the consumer goods and services sector. Disturbingly, a few years ago, nearly 17.5 percent of the CEOs of the world’s largest 2,500 companies left their posts – highlighting the unpredictability at the top strata of corporate management.

The Urgent Need

Spotting the right CEOs and CXOs remains a daunting challenge for many corporations. Leadership is the No. 1 talent issue globally, according to a Deloitte survey, with 86% of respondents rating it as “urgent” or “important.” This emphasizes the need to not only find capable leaders, but also to motivate the existing talent so that they can evolve and reach their leadership potential. With the traditional path to leadership evolving, organizations must adapt to attract and also retain the leaders of the future.

The problem today is not only that of a lack of leaders, but it is also a shortage of the right kind of leaders. Leaders ought to be equipped to lead today in the age that is increasingly being defined by endless disruptions and changes. So, what is this leadership deficit? Why does it exist? How can we address it?

What is Leadership Deficit?

There is a growing gap between the leadership competences that businesses need and the abilities that the current leaders possess. This is where leadership deficit comes in. This gap, if left unattended, can express itself in numerous ways. Such leaders can exhibit powerlessness to foster innovation, manage diverse teams, or even to drive sustainable growth. This deficit is not just about the magnitude of leaders but, most significantly, about their quality. Any organization needs a leader who can not only inspire teams, but also think strategically and adapt to evolving business landscapes.

The current leadership deficit is intensified due to the rapid pace of technological advancement, globalization, and also the intricacies of businesses today. Hierarchical authority and command-and-control tactics will no longer work in today’s environment. Likewise, the PDCA (Plan, Do, Check and Act) style of delivery management has to be fine-tuned to suit the style of the modern work force. These traditional leadership models are no longer adequate for today’s times. Today’s leaders must exemplify many more qualities including empathy, agility, and also be able to lead with influence more than just power.

Why does Leadership Deficit exist?

There are many factors that play a role in creating the leadership deficit that exist in the world of business today. Here are some:

Generational Shifts: We have the Millennials and the Gen Z’s taking on leadership roles today. The Baby Boomers and the Gen X’s are retiring. This definitely calls for an all new leadership model that caters to their specific requirements. Priorities have changed for leaders of today. Younger leaders have diverse values. Be it inclusivity, purpose-driven work, or even the much spoken about work-life balance, these generations want different things. However, what is often lacking is the experience and also the right coaching that is needed for them to be able to lead effectively in all areas. During a recent coaching conversation that I had with a young leader who had reached senior cadre in an automobile company, he described his struggle in managing the team, especially the senior members whose experience is almost double when compared to his own. This young leader’s leadership style will not resonate with half of his team who are actually way more experienced than him and also hold old school thoughts.

Technological Changes: The fusion of digital, biological, and physical technologies created by the Fourth Industrial Revolution has also given birth to newer leadership challenges. Today’s leaders also have to navigate a space where automation, artificial intelligence, and big data are transforming industries as we knew it. If they are not equipped to understand and leverage these technologies, they will then be at a huge disadvantage. In my recent group coaching with half a dozen mid to senior level leaders of a traditional organization, the participants expressed their inability in keeping up with technology changes and also its adaption. Their younger team members often get restless due to this slower adaptation of technology.

Old-fashioned Leadership Models: There is still a heavy reliance on old-fashioned methods or models of leadership development. These methods often only focus on the technical skills and also some management training. They fail to cultivate many of the holistic abilities that leaders of today require to succeed. These models do not have the ability to make leaders ready for all the complexities of the business environment that currently exists. However, it is a good sign to note that many companies have started individual focused development initiatives including one-on-one coaching by experts with the realization that the gap is actually not in knowledge but in the application of this knowledge. As a coach, I have witnessed this transformation happening in leaders firsthand during coaching.

Globalization: There is a lack of cross-cultural competencies and emotional intelligence in many leaders of today. It is a must in current times as businesses today are increasingly global. This requires leaders to be able to manage diverse teams across cultures, languages, and also time zones. Out of almost 250 coaching assignments that I have completed in the immediate past, about 70% of the coachees have chosen emotional intelligence as one of the coaching themes.

How to address the Leadership Deficit?

Addressing the current leadership deficit requires a vital shift in how we approach it. Businesses must adopt experiential learning, coaching, and mentorship programs that can expose emerging leaders to real-world challenges. Technology must be used as an enabler of leadership development. Online learning platforms, virtual reality simulations, and AI-driven analytics can be used to create more personalized leadership development plans.

A continuous learning must be facilitated to ensure that leaders are up-to-date with the latest trends and best practices. Businesses must cultivate a culture where leadership is developed and cheered at all levels. People must be encouraged to take ownership across levels and at all stages of their career. Also, diverse teams can make better decisions and also are better while innovating. While building leadership pipelines, it must reflect the diverse nature of the company as well. Policies and practices that promote inclusivity can help reach the markets better as well.

The Evolving Path to Leadership

In my view, a good leader should embody three key elements to be both accepted and also to be successful. They are – Thought Leadership, People Leadership, and Self Leadership. These three elements are vital for navigating the complexities that are present in the modern business environment and also for inspiring teams in such a way that they can achieve their best.

1. Thought Leadership

Thought leadership is a leader’s ability to influence and guide others through his/her expertise, insights, and innovative thinking and it is the foundation of effective leadership. It involves:

In-Depth Understanding of the Business/Domain: A thought leader must have an in depth understanding of the industry they operate in. They must stay informed by keeping up with the technologies, trends, and shifts of today. It also calls for expert knowledge/awareness about the core aspects of the business and it is a continuous learning process.
Grasp of the Market/External Environment: Effective leaders should be able to interpret market signals and understand external factors that could impact their business. This includes market analysis where conditions, consumer behaviors, and industry developments are updated. It also needs environmental scanning or the monitoring of economic, social, and political trends that could affect the business and also strategic foresight to anticipate future challenges and opportunities, allowing for proactive rather than reactive decision-making. A good leader should be able to influence the external environment and navigate through industry trends.
Solid Understanding of Commercials/Finances: Financial acumen is key for leaders to manage their resources effectively and ensure the long-term sustainability of their business. This involves financial literacy, key performance indicators, and financial metrics. It also needs resource management and efficiently allocating resources to maximize returns and support strategic goals. Driving initiatives that enhance profitability while ensuring the organization’s growth and sustainability is also a part of this.

2. People Leadership

People leadership is an important part of building and nurturing high-performing teams, ensuring that individuals and the organization thrive together. It includes:

Spotting the Right Leadership Team: Recognizing and evolving potential leaders within an organization is vital for success that is sustained. Identifying individuals with leadership potential through performance evaluations, assessments, and observation and providing them with opportunities to take on leadership roles, honing their skills etc. is crucial. Establishing a clear succession plan can ensure a steady pipeline of capable leaders ready to step into key roles when needed. Remember to uphold the virtue of meritocracy while promoting internal talents.
Inspiring and Guiding Others: Effective leaders inspire and guide their businesses and teams towards achieving common goals. Setting a clear vision is needed and also communicating a compelling vision and strategy that aligns with the organization’s goals and inspires others. Leading by example and demonstrating the behaviors, values, and work ethics expected from others sets a standard for the team to follow.

Challenging and Nurturing Talent: This includes pushing boundaries and encouraging team members to step out of their comfort zones, take on new challenges, and innovate. It also means providing regular feedback, coaching, and mentoring to help team members develop their skills and advance in their careers. Offering training, workshops, and other professional development opportunities to continuously build the team’s capabilities is also needed. Demonstrate that you are genuinely interested in the growth of internal resources.

3. Self-Leadership

Self-leadership focuses on the inner qualities and self-management skills that enable leaders to lead themselves effectively before leading others. It is the foundation of personal effectiveness and authenticity in leadership. It includes:

In-Depth Knowledge of Self: A deep understanding of oneself is needed for authentic leadership. Leaders must be self-aware and recognize their strengths, weaknesses, values, and beliefs. This helps them stay true to themselves and act with integrity. Leaders must also regularly reflect on their experiences, behaviors, and decisions to gain insights and improve self-understanding. Leading in a way that is true to one’s values and personality can build trust and credibility with others.
Appreciation for Internal Resources: Effective leaders can recognize and apply their internal resources to navigate challenges and drive success. Building resilience and maintaining the ability to bounce back from setbacks and persist through difficulties is key. So is leveraging creative thinking to solve problems, innovate, and adapt to changing circumstances. Also important is understanding and managing one’s emotions, as well as recognizing and influencing the emotions of others.
Right Use of Emotions to Navigate Complex Situations: Emotional intelligence is a crucial component of self-leadership, enabling leaders to handle complex and challenging situations effectively. Self-Regulation and controlling and managing one’s emotions to stay calm, focused, and rational in stressful situations is important. Understanding and being sensitive to the emotions and perspectives of others builds stronger relationships and allows collaboration. Emotional intelligence can create a positive work environment that can motivate others and resolve conflicts constructively.

Mastering self-leadership can help leaders lead with authenticity, resilience, and emotional intelligence, and also enhance their overall effectiveness and impact.

Moving Forward

Addressing leadership deficit surely requires a multi-faceted approach. The industry must invest in leadership development programs that focus on these three key elements mentioned above. An environment must be created that nurtures potential leaders and provides them with the resources, coaching, and opportunities that they will need in order to grow.

Also, it is key for companies to adapt their leadership models in such a way that they reflect the changing dynamics that are a key part of the modern workforce. Accepting diversity, promoting work-life balance, and also the fostering of a culture of continuous learning is the need of the hour.

Conclusion

The current leadership deficit is a serious issue for all and it certainly requires immediate attention. Businesses can no longer ignore it. The leaders who will succeed in the future are those who have the ability to traverse this complex environment and lead with empathy while driving innovation.

By focusing on this 3 way approach and developing thought leadership, people leadership, and self-leadership, organizations can cultivate a new generation of leaders who are very much capable of steering their companies through the complexities of the modern business environment. The future of leadership actually lies in our ability to adapt, innovate, and inspire. That will ensure that we have the right people in place who can guide us toward a prosperous future.

The time to act is now. The future of our organizations, and indeed our world, depends on the leaders we develop today.

Stay tuned, to PropleManager.co.in for further updates on the evolving workplace paradigm.