Egon Zehnder and BCG recently co-hosted a roundtable discussion for industry leaders from about twenty of South Africa’s largest and most influential companies. The discussion explored the multifaceted nature of transformation, emphasizing the interplay between culture, strategic execution and what is required of leaders to successfully lead their organizations through uncertain times.
Key themes emerged during the discussion, such as the challenges and volatility of the current macro-economic environment; the central role of culture in transformation; the commitment and engagement levels of the senior leadership team; which skills will be required in the future; how leaders communicate the vision and sustain momentum through a lengthy transformation processes; and finally, how leaders balance cost optimization with long term value creation.
The insights shared during this event shed light on the challenges organizations face and the strategies necessary for thriving amidst disruption.
The Core Elements Behind Successful Transformation Leadership
1. Adapting to Overcome Disruption
Against a background of increasingly complex global challenges and rapid technological disruptions, participants underscored the necessity to adapt proactively and align strategic imperatives and transformation efforts with the evolving needs of the market. As remarked by one leader: “Survival is not guaranteed. Only 1-in-4 companies transform successfully.” Leaders felt there is a gap in the preparedness of their organizations to transform, and not only in terms of a lack of capabilities, but also systemic resistance—emphasizing that while volatility is a constant companion, so too are people.
2. Leading Inclusive Culture Transformation
A recurring theme was the paramount importance of organizational culture in driving successful transformation. “Culture eats strategy for breakfast,” said one participant, and this sentiment resonated with several attendees. Leading an inclusive transformation process, with support at multiple layers of the organization, calls for alignment with goals and strategy to encourage buy-in and generate groundswell across the business. It is easy to focus on burning platforms and ignore the human element of transformation, but when leaders prioritize cultural change and ensure that employees are engaged and aligned with transformational goals, it creates a sense of ownership and commitment—which is essential for driving successful transformation.
3. Committing at the Highest Leadership Levels
Effective transformation also requires unwavering commitment and consistency from the leadership team. As one participant noted, “Strategy is nothing without execution, and execution is nothing without people”. To ensure people remain steadfast on the transformation journey means the journey should be mapped to their individual and divisional goals. Leaders have to demonstrate accountability and commitment to the transformation journey. This means involving teams actively in co-authoring the journey, fostering a collaborative environment and utilizing “first-adopters” to build momentum so that leaders can galvanize support and drive initiatives forward.
4. Communicating and Sustaining Momentum
Continuous communication was identified as another vital component for maintaining organizational engagement and motivation throughout the transformation process. Leaders were encouraged to regularly share wins and successes, reinforcing a sense of progress and collective achievement. A suggestion was made to do regular check-ins and pulse surveys to gauge employee sentiment and demonstrate results proactively to build support for the mandate and keep it top-of-mind for leaders and employees alike.
5. Balancing Cost Optimization and Value Creation
A key consideration which emerged was the balance between pursuing cost optimization versus value creation. Leaders recognized that while it is tempting to pursue cost optimization more aggressively for the “easy wins” it offers, a dual focus would highlight synergies which can only be discovered and properly explored when the workstreams are embarked on simultaneously. It also offers organizations the opportunity to ensure that the transformation yields tangible results in the short-and long term, reinforcing the notion that both aspects are critical for sustainable success.
How Leadership Skills Must Evolve
Particularly noteworthy was the revelation that many of the skills leaders and employees needed to drive transformation are interpersonal skills. Leading people through change requires emotional intelligence, the ability to influence and collaborate, personal and organizational resilience and commitment. Participants emphasized that leaders should embody humility and openness to change, role-modelling desired behaviors in creating a culture where creativity and innovation can flourish.
Building Resilience for Long-Term Success
As organizations strive to thrive in a rapidly changing environment, they must prioritize cultural change, engage employees at all levels, and develop the skills necessary for success. Leaders must be persistent and resilient, continually assessing their own personal growth and development, and recognizing that effective leadership is rooted in understanding and connecting with their teams. By fostering a culture of learning and curiosity, leaders can ensure their organization is well-equipped to navigate ever-changing complexities and position their organizations for sustained success in the future.
