Executive Outlook
Are your leaders two years ahead? By Mats-Ola Bydell and Slim Lambert
April 2012 Mats-Ola Bydell is a Senior Client Partner and Partner in Charge of the Stockholm office of Korn/Ferry International, where he is a member of the Firm’s Global Industrial Market and Korn/Ferry Leadership and Talent Consulting.
Slim Lambert is a Principal with Korn/Ferry International’s Leadership and Talent Consulting group, located in the Firm’s Stockholm office.
Why are some business leaders regularly two years ahead of others? They ramped up business in Colombia while others were still dipping toes into Brazil. They divested from mortgage-backed securities in 2004. They were using “clouds” before anyone else knew what the term meant. Even flourishing business leaders will admit that success relies on a bit of talent and a lot of hard work. Still, there are a few who anticipate threats or opportunities first, act upon that, and repeat the feat again and again. What is this talent to see around corners? Can it be identified by looking at underlying capabilities? Drawing on Korn/Ferry’s research, its consultants’ expertise, and the experience of our clients and candidates, it appears that the traits of this two-years-ahead executive can be grouped into four categories.
Knows the business, and knows it in detail Apple founder Steve Jobs would not have succeeded to the astounding degree he did in another industry. He understood personal computing inside out, from the operating
systems to the hardware to the design. He could look at what was possible now, and envision what would be possible in a decade. Like Jobs, two-years-ahead leaders know their industry in great depth, a cluster of competencies Korn/ Ferry calls Understanding the Business, which fuses business acumen with superior functional or technical skills. They are in tune with—and passionate about—the needs of customers, which drives them to attend to details and quality, and informs their creative and strategic thinking. They also are experiential, rather than theoretical, revealing highlevel skills in another cluster, Making Complex Decisions. They use facts and hard data to construct a working concept and then realitytest it, rather than fall back on ready-made theories. They view the execution of business strategy as a
series of options (or perhaps dilemmas) and make high-quality decisions that will keep it ahead.
Solves underlying problems Two-years-ahead leaders also exhibit superior performance in a competency called Strategic Agility. Rather than apply a quick fix, these leaders will look for the systemic cure, the domino piece that if pushed will have a positive cascading effect into the future. They do not simply respond to market challenges, or even wait for them to appear. Instead, they urgently adapt the organization or business model to prepare for the still-emerging customer needs of the future. They don’t wait to get the lay of the land; they carve the landscape, setting expectations for customers, competitors, and the whole industry. They are tactical, too: they do not enter a market where the organization has no competitive advantage. They collaborate with companies that have complementary abilities, and acquire companies with complementary mind-sets.
Sharpened by self awareness Two-years-ahead leaders do not necessarily have the highest IQ, but they think clearly, and know their own minds.
They are savvy in game-theory thinking—that is, creating options instead of fixed plans. They see links between events, and act on the links rather than on the elements that compose events. They differentiate meaning from conclusions, e.g., they challenge the selection of data and the meaning affixed to it, rather than the conclusion. They distinguish correlation and causality as well: they recognize that good results don’t always mean that the preceding actions were relevant. Self-awareness, in particular, helps these types of leaders to continually improve. They are aware of their own mental filters, and can take a detached view of their work. They also take into account that all human brains are prone to cognitive biases, such as the desire to have one’s predictions confirmed by data. Finally, they are distrustful of easy consensus or taken-forgranted views, remembering Oscar Wilde’s words, “Whenever people agree with me, I always feel I must be wrong.”
Inspires with vision and purpose Two-years-ahead leaders may be singular, but they do not fly solo. They acknowledge that most business issues are too complex for one person to have all the answers. Also, that it is no use having a great idea if no one wants to implement it. How an executive manages these things is not about personality but
capabilities. Many of these competencies fall under our Inspiring Others cluster, which comprises Motivating People, Building Effective Teams, and Managing Vision and Purpose. In addition, forwardlooking leaders show composure, can deal with paradoxes, and are good at reading their impact on others. They anticipate human behaviors and reactions with the same foresight they bring to the marketplace, and make adjustments accordingly. They follow up with people and create dialogues rather than debates. Most critically, they use their rapport with others to build loyalty and instill desire for a goal—even one on a distant horizon that only a two-years-ahead leader has the vision to see.
About The Korn/Ferry Institute The Korn/Ferry Institute generates forwardthinking research and viewpoints that illuminate how talent advances business strategy. Since its founding in 2008, the institute has published scores of articles, studies, and books that explore global best practices in organizational leadership and human capital development.
About Korn/Ferry International Korn/Ferry International, with a presence throughout the Americas, Asia Pacific, Europe, the Middle East, and Africa, is a premier global provider of talent management solutions. Based in Los Angeles, the firm delivers an array of solutions that help clients to attract, engage, develop, and retain their talent. Visit www.kornferry.com for more information on the Korn/Ferry International family of companies, and www.kornferryinstitute.com for thought leadership, intellectual property, and research. © 2012 The Korn/Ferry Institute
2