South Africa: Robust, ethical leadership needed for turbulent times
Turmoil, uncertainty and risk are the watchwords of the global economy today. Businesses operate in a complex, unstable environment where old models and systems are no longer reliable.
“The rules have changed, demanding a new kind of leadership,” says Sandra Burmeister, CEO of Amrop Landelahni. “We are in the midst of one of the greatest changes in modern times. Old centres of power are faltering while technology is driving innovation and young people are igniting the social conversation.
“Increased competitiveness globally, along with economic uncertainty, massive technological advances and stricter governance regulations present challenges to leaders at all levels in both government and the private sector – from the boardroom to the executive suite.
“The demand for robust ethical leadership to navigate these turbulent times has never been greater. However, increased competition and the rapid rate of change have led to a trade-off between expediency and good governance.
“Globally, corporate greed and corruption is a major cause of the global financial crisis.
“Business has been extremely creative in ways of bucking the system. Recently South Africa has been hit by evidence of widespread corporate corruption. In the construction sector, this includes tender collusion and price fixing amounting to billions of rands. Fixing of bread prices, excessive bank charges and high cellphone tariffs indicate widespread practices undertaken with a sense of impunity.”
The Ketchum Global Leadership Monitor 2013 shows that, of 6 000 respondents across 12 countries including South Africa, only 24% rated their leaders as effective. According to the survey, “Leaders continue to underperform on expected behaviours, in particular transparency, leading by example and dealing with difficult issues.” Short-term thinking and passing the buck stood out as major areas of concern.
The survey identified the main characteristics that people want from their leaders as transparent communication, leading by example, handling issues and crises calmly, making tough decisions and admitting mistakes.
“Meeting these leadership challenges requires new skills and abilities. Leaders must deliver seamless strategy execution, innovation and process excellence,” says Burmeister. “They must convey what they stand for clearly and powerfully. At the same time, they know that they will be judged on their actions, not on their words.
“Agility is emerging as a key characteristic of future leaders. Agile leaders are able to reflect, see possibilities and reframe their thinking constantly. They understand the importance of adaptability, grace in failure, curiosity, collaboration and diversity.
“Future leaders will also be ambitious, results-driven and adaptable. They will grasp new opportunities and take leaps of imagination to grow the business. They will understand how to operate across multiple geographic, business and functional boundaries.”
According to the Ketchum study, a high 62% of respondents are looking to Generation-X leaders (aged 35-50) to navigate the world through challenging times. Just 25% are expecting most from 50-64 year olds and 10% from 18-34 year olds.
“Organisations must explore fresh models for finding, developing and engaging ethical leaders for tomorrow’s leaders with their different expectations, values and work preferences,” says Burmeister.
“At the same time, technology, globalisation and workforce demographics are changing business structures and ethics.
“The corporate culture must include a renewed commitment to embracing ethical values, not simply to avoid scandals, but to regain the public trust. That is the only way to ensure that good governance underpins the fabric of our organisations and institutions and to ensure long-term sustainability.”
