How precisely should cultural transformation proceed and succeed? Ultimately, there is only one way to navigate through the stormy times ahead: strong leadership. By strong leadership we do not mean authoritarian CEOs who exercise a ‘top down’ leadership but rather true leaders with a clear vision, supported by consistent behavior, who nurture their teams and encourage self-management. As Saori Dubourg says, “At the center of this is the people question. How we motivate our people lies at the heart of it all.”
Our survey answers underscore the need for this type of leadership. When asked “What is your winning formula for successfully engaging the broader organization with regard to cultural change?” one respondent speaks of “leadership presence” while another speaks of “leading with a compelling purpose that touches, motivates, inspires employees and drives them to transcend beyond their self-inflicted barriers and boundaries to give the best of themselves!”
Transformation always requires leaders – a few brave people – to step out and take some risks to initiate change. Some people need to stick their necks out and then others will happily follow.
Only powerful leadership can convince others to accept and implement change. And change needs to come from the top before it can infiltrate through an entire company. As Ilham Kadri, CEO and President of the Executive Committee, Solvay, stated in our conversations, “A cultural transformation starts with the mindset, the tone at the top, the code of business integrity, the values and the core competencies. It is materialized every day by how the CEO, the executive committee, the board, relay the purpose of the company. That perspective must be communicated to the employees,” Kadri says. “You have to ‘walk the talk’ consistently and in everything you do. Otherwise, your employees won’t catch on and the transition will be a short-lived event rather than bringing the fundamental long-lasting value that it should bring.” Our survey respondents likewise stress the need for honesty. One person calls for “honest communication and living the change” while another asks for “strong and fair leadership combined with transparent communication”.
The openness and flexibility of millennials, along with their willingness to challenge the status quo, comes up in the survey as one reason for optimism. This openness is set to be a driving force in implementing cultural change, predicts Stern. He also views strong leadership as a means to unleash millennials’ energy and extract the best results. This will become particularly important in future: As challenges grow, leadership challenges are set to increase exponentially and senior management will have to react accordingly. “The speed at which we’ll have to learn will be unprecedented.”
At Egon Zehnder, we believe strongly that leaders should reject dogmatism and instead embrace open dialogue. Companies that succeed in creating an environment of psychological safety and acceptance of a broad spectrum of ideas and suggestions are the ones that will thrive. We at Egon Zehnder believe that there is no one right answer; leaders should make it clear to their organizations that they know the strategic direction ahead but don’t have all the answers.
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