WEBVTT

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(upbeat bright music)

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- You don't need me to tell you this.

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But these days, we're
asking a lot of leaders,

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and it seems as though we're asking a lot,

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and we're also really relying
on leaders to deliver,

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often in the face

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of what seems like a pretty
daunting set of challenges.

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You think about shareholders
who of course are expecting

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a return on their investment.

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You look at the pace of
business that is accelerating.

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You think about the rise of
social and geopolitical tension.

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We've just barely started to get our arms

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around digital and what that means,

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and now we're being challenged to embrace

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artificial intelligence and
prepare for the metaverse.

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And of course, there's
always the existential threat

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of climate change

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and we're all doing what
we can to address that.

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And as if that isn't enough,

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we're in the middle of
the great resignation,

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which has become such a big deal

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that even Beyonce has gotten in on the act

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with her latest hit song,

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the beyond great song which is,

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♪ You won't break my soul ♪

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♪ You won't break my soul ♪

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You know that one?

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(everyone laughing)

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Okay, it's the latest
song and it just shows

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that we are in the midst
of the great resignation.

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Anyway, a lot of challenges for leaders

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but there's also some good news.

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Over the past year, really in
the midst of all this change,

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we thought it was time to just step back

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and to really dig deep
into what is expected

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of leaders going forward.

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And so what we did is we
talked to a lot of clients.

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We looked at a lot of
the academic research.

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We also conducted a survey of
9,000 people around the world.

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One of the interesting findings

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was that the respondents to the survey,

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75% of them felt that during the pandemic,

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leaders actually positively
rose to the occasion.

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Somehow in the midst of that crisis,

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leaders found what was required
for them to truly lead.

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And so for us, that gives us a sense

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of some of the inspiration
for what we need from leaders

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but also the hope that leaders,

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into the right circumstances,

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can actually step up
and meet that challenge.

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We put the findings
together from all of this

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into a report that we published

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called Why the World
Needs Generative Leaders.

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At their core, generative leaders

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leave the world a better
place than they found it

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and they do that by relying
primarily on three approaches.

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The first one is to reimagine
and reinvent business

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for the benefit of all stakeholders,

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yes for shareholders but also employees,

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for customers, for society,

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and for the planet more broadly.

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Secondly, they are inspiring

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and enriching the lives of people.

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They've put aside some of the practices

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of treating people as a means to an end,

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or worse, treating people
as collateral damage

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and they really are investing
in the well-being of people.

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And then thirdly, they are executing.

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Leaders have to execute

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but they're executing and innovating

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through super-charged teams.

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Gone are the days of
thinking of leadership

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as the individual hero.

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It's very much a team sport.

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In other words, leaders are leading

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with their head, heart and hands

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and that's really the punch
line for my message today.

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Now let's unpack that just a little bit.

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Let's focus, first of all,

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on the head of generative leaders.

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And here I'm going to take you to Italy,

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to the Italian utility company, Enel,

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and their wonderful
leader, Francesco Starace.

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He became the CEO in 2014
and immediately embarked

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on this incredible transformation.

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He assembled a team of generative leaders

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and aligned them all
around a very big ambition,

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to become the world's first
renewable super major.

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You've got super majors in fossil fuels.

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They were going to be the
first renewables super major.

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He said some very specific goals

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to eliminate the use of coal by 2030,

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and then to be carbon zero by 2050.

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How did he do that?

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He knew he wasn't going
to get there alone.

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So he assembled a supplier club.

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Think of it as an ecosystem of partners

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that would work together with
Enel in order to move forward.

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He also created an open
innovation platform

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to be able to crowdsource
ideas from around the world.

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And so far, they've received
over half a million inputs

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from individuals from a hundred
countries around the world.

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They've also leveraged
their customer data.

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They have 69 million customers

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and they're constantly looking

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at what are they seeing in the data

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to enable them to align the transformation

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with the needs of their customers.

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So the head of a generative leader,

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you can see that in what
Francesco Starace is doing,

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leading the transformation of Enel.

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Then, we turn to the hands.

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Where do we look in the world
to find innovative hands,

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companies that are
executing and innovating

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through super-charged teams?

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Well, as it turns out from 2000 to 2007,

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I was based in Shanghai leading
our greater China practice.

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And at the time, I can tell
you that Chinese companies

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were voraciously seeking and applying

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concepts from the West.

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Fast forward to today and what you see

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is that we, more often than
not, are now going to China

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to look for leading edge examples,

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particularly when it comes to innovation

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around the operating models,

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the hands of companies.

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So recently, we did this for
a major US technology company

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wanting inspiration for their
operating model for 2030.

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And so we went to companies
like ByteDance and Alibaba,

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what did we find?

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Some really interesting things.

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First of all, they really
have embraced the idea

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of customer-focused,

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multifunctional agile teams

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as the core of how they're operating.

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Then, cutting across all those teams

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are a set of horizontal
functional platforms,

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think data, technology, analytics

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that can be used by all those
customer facing agile teams.

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And then very interesting,

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seeing an application here
borrowing from the West of OKRs.

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And so you see companies
like ByteDance and Alibaba

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have taken OKRs but have
really put them on steroids.

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They've brought technology to enable them

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so they can use them dynamically
in order to set goals,

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to allocate financial and human capital,

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and then to be able to
monitor the progress

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of these teams dynamically.

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But then you might say,
okay, but ByteDance, Alibaba,

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they're digital natives.

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They're only a few years old.

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They have no legacy
systems to contend with.

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What about more traditional companies?

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Well, here, what's really interesting,

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we look at companies like Haier.

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Haier is the world's largest
appliance manufacturer.

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And their CEO, Zhang
Ruimin, he had this idea

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of how do we actually
take some of those ideas

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of what we're seeing

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in some of these digital native companies.

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And so under the banner of,
in my toneless Mandarin,

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(speaking in foreign language)

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which roughly translates

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to people, user, connection,

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he launched a fundamental revolution

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of their operating model
and broke the company

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into 4,000 small micro-enterprises,

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super-charged teams.

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And each of those teams is charged

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with really understanding
the needs of customers,

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and then bringing along technology

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and partners with other
parts of the organization

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and partners outside of the company

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to deliver solutions for those customers.

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But it's a fantastic example

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of really embracing this idea

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of executing and innovating
through super-charged teams

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and we find that at the
rock phase in China,

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which then leaves us with the heart.

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So I mentioned that we
had done this survey

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of 9,000 people around the world.

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One of the other interesting
findings from that research

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was we asked them

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to rank across 18 attributes

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of generative leadership,

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what attributes are most important?

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And you guessed it.

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The top four of the 18 attributes

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were all attributes of the heart.

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The first, recognition.

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See me, appreciate me,

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reward me for what I'm doing.

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Demonstrate empathy, you know,
put yourselves in my shoes,

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deep caring, care for the physical,

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emotional and social well-being.

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And then the last one

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is come alongside me with
coaching and developing,

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help me to develop the skills
that I need for the future.

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And so what you can see in that
is people around the world,

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and this was a multi-country survey,

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people around the world are crying out

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for leaders to lead with their hearts,

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but there was another interesting
finding, a little darker,

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which was of all those attributes
of head, heart and hands,

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the attributes that are
actually most neglected

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are attributes of the heart,

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and so we've got some work to do.

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So where do we turn for
how to lead with heart?

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And here, I'm going to turn to
a leader who I greatly admire,

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as do many people,

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and that is Satya Nadella from Microsoft.

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Back in 2014, when he was
appointed as the new CEO,

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of course, you'd think a big celebration,

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and at the same time,
Bloomberg ran a piece,

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the title of which

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was You Don't Want to be Microsoft's CEO.

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So why would that be?

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Well, of course, he was facing

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an enormous set of challenges,

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which is hard even to
remember at this point,

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given how far they've come.

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But they had just acquired the
handset business from Nokia

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which would subsequently
have to be written off.

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They had launched Windows
8 a few months before

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and it was summarily panned by the market.

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And then, of course, there
was that massive problem,

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which was out of nowhere,

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Amazon had risen up to
become, at the time,

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the undisputed leader in
cloud services with AWS.

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Microsoft had taken a run at social,

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at search, at mobile, and
now is at risk of missing out

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on the biggest wave of all
which was the shift to cloud.

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So what did he do?

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Well, as you'd expect, like
most leaders these days,

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he came in and he launched a
broad transformation program

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but what really stands out

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is the way he led that program

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together with the leadership team.

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Even though he was facing

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an enormous set of immediate challenges,

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he actually stepped back and
asked the existential question,

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why does Microsoft exist?

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And he landed on this
beautiful purpose statement

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to empower every person and
organization on the planet

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to achieve more.

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But what he did, which
was awesome, is he said,

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the words on the page are
just the starting point.

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What we need to do is to ensure
that every product we build,

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every technology we incubate

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is driven by that sense of purpose.

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And so what they've done is
they've invested massively

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behind climate, behind
accessibility to broadband internet.

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And for him, something very important

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is to make sure their technologies

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are truly available,
accessible to every person.

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So they've really gone
beyond surface purpose

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and driven that purpose
deep in the organization.

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And then, there was the culture.

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Some of you may remember a famous meme

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of the culture of Microsoft's or the meme

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of the culture at the time,

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everyone pointing inward
shooting at each other with guns,

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and that was the perfect meme

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to describe their culture at that time.

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So Satya took this on

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and he went through a massive process

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to articulate, activate and embed

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a new culture around growth mindset,

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One Microsoft, customer-obsessed,

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diverse and inclusive,

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and making a difference for society,

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and they have fundamentally
transformed the culture.

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Also, at the heart of their program,

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he knew that he knew needed leaders

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to be leading in a different way

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and so they invested in
launching and implementing

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a new leadership model
built around three elements,

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create clarity, generate
energy, deliver success,

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head, heart, hands.

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And what do you expect from leaders,

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particularly as it relates to the heart,

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is that you're inspiring optimism.

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You're creating and generating energy

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through good times and bad.

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You're investing in the capabilities

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of your teams and your people.

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So he's really expecting those leaders

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to lead with their head, their hands,

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but very much their hearts.

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So if you're with me so far,

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it leaves us with one remaining question.

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If you, like us, believe

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that the world needs generative leaders,

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the question then is, well,
how do we develop them?

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When you look across your organization,

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what I would say,

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and maybe we do a little
thought experiment here,

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just take a moment and think,

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what is it that I
naturally lead with myself?

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Do I naturally do with my head?

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Am I more of a visionary, a strategist?

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Do I lead with my hands?

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Am I the type of person
that loves to get in there

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and get things done?

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Or am I someone who leads with my heart,

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inspiring and empowering people?

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So you've probably got
that image in your head

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of the type of leader you are,

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and what I would say if we had more time,

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we could think about the
teams that you're leading,

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the leadership teams
across your organizations,

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and what we would find is a mix

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of leaders with different strengths.

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The data would suggest
it'll be a bit more biased

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towards the head and hands

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with a weaker set of heart attributes

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but we would still find a mix.

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And so then you think, okay,
well, what would we do?

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How would we develop leaders

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that truly have head, heart
and hands capabilities?

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And here, I'll just leave you
with three quick thoughts.

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The first one is to reflect deeply.

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Think about the vision
you have for your company.

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Think about the capabilities

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that you need from your leaders,

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those heart and head
and hands capabilities

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we've been talking about.

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And then also, go through
some sort of a process

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through surveys, through diagnostics,

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to assess what are the gaps that we have,

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where do we need to lean in most

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in order to really get all of our leaders

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able to lead with head, heart and hands?

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So that's the starting
point, that reflection.

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Then, the second one is make
sure you integrate learning

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deeply into the real work of those teams.

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It's not about just sending them off

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to some academy somewhere.

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Bring the learning real time to the teams,

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immersive experiential
things around gaming,

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around using different simulations

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and different experiential
learning techniques.

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And then, the third one is to make sure

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you're continuously measuring
and monitoring the progress,

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that you're delivering outcomes

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while you're upskilling your team.

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So just stepping back from what I've said,

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it's pretty clear, if we're
honest with ourselves,

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that over the last X number of years,

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we've often relied and rewarded

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leaders who have delivered results

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but they've done so by
being a bit extractive,

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extracting from the planet
and extracting from people.

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What we really need going forward

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are leaders who are generative,

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leaders who leave the world a better place

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than they found it

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and leaders who will lead

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with their head, heart
and hands, thank you.

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(audience clapping)