In the previous article we discuss about three of the areas that leaders of the new era need to rethink and make changes, including: 1) Beyond profit; 2) Be real and human; and 3) Building collaborative teams. Next, we continue to share the other two categories.

4) Constant evolution

Today’s businesses strive to constantly evolve, explore, conceive, test, execute, review and adapt. Businesses grow by accelerating change and innovation. This shift requires leaders to go beyond the controlling mentality, and be open to explore, execute and adapt to learn.

Financial software company Intuit has stalled after an initial success offering consumers desktop financial management software. Leaders therefore decide to innovate based on customer needs and promote design thinking with a culture of rapid learning and experimentation at its core. Leaders conduct performance reviews from the top down, admit mistakes and seek feedback. Employees have 10% of their time to experiment and explore new thinking, while simplifying and accelerating decision making.

Those shifts have transformed Intuit into a highly innovative learning enterprise that doubled its customer base to 50 million, doubled its revenue, tripled its profits, and increased its value from $10 billion to $60 billion in the 10 years to 2019.

5) Create shared values

Enterprises must re-conceive business models and industry ecosystems, break the previously impossible framework, replace competition with cooperation, and jointly create new value. For leadership teams, this means shifting the focus of their work from strategy and execution to deep strategic thinking, exploration and connecting with society.

About 10 years ago, DBS set an audacious goal: to be recognized as the best bank in the world. The approach is not to ask “what does the bank want to do?”, but “how can I make dealing with DBS easy, convenient and enjoyable?” DBS is committed to creating an ecosystem and platform with the bank at its core, not a product. In 2017, DBS launched a platform with 150 APIs, which increased to 1,000 APIs 5 years later, with more than 400 partners. Acquire new clients through partners and expand into real estate, automotive, travel and utilities.

The leaders of DBS started by reframing the bank’s vision, and the team was tasked with implementing that vision by transforming thinking and behavior.

Business transformation begins with leaders

The transformation of enterprises requires the full participation of leaders, and another key is that changes need to come from the heart. Business leaders need to realize that co-creating and practicing new leadership roles will lift individuals and businesses to the next level.

Warren Buffett is good at investing as well as leadership. He once pointed out at the shareholder meeting that leadership is to allow employees to fully release their potential and devote themselves to the work they love. “My eyes must look beyond the hills ahead, and lead my colleagues to see the scenery behind the hills.” Business owners don’t need to be well-versed executives, nor do they need to be aggressive. Leaders with new thinking and capabilities can drive transformation to unlock the potential of an organization and create new value for customers, employees, investors, and other stakeholders.

Ref: New leadership in an era of thriving organizations | McKinsey