Day 130 MIT Sloan Fellows Class 2023, Leadership seminar "Game changing leader"

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The challenges that many established and successful companies face in today's rapidly changing business environment, particularly with the increasing pace of digitalization. To succeed in leading organizational transformations, executives need a new mindset and a fresh way of looking at their industries, businesses, customers, and the best way to deliver differentiated value to customers. The need for executives to embrace a different style of leadership and master a series of conflicting yet complementary dualities, including urgency and patience, collective and individual accountability, coaching and driving performance, student and teacher, and humility and boldness.

The authors also provide examples of great transformational leaders and how they possess specific leadership skills and mindsets that enable them to bring about change in their organizations. These leaders have a deep understanding of their company's purpose and principles, and they align promises made with metrics and rewards. They build vibrant talent factories and possess the mindset of a leader who understands the complexities of building organizations that are simultaneously purpose-driven, performance-focused, and principles-led.

Ultimately, leaders who can master these dualities skillfully will be well-equipped to build organizations that can thrive in an ever-changing business environment. They can lead their companies through major change by embodying a sense of deep humility, service, and stewardship, and by being bold change catalysts when they feel that such action is warranted.

5 necessary skillsets

1. Storytelling: The ability to craft a compelling narrative that inspires and motivates others. Example: A CEO who can articulate a clear and compelling vision for the future of their company, and communicate it effectively to employees, customers, and stakeholders.
2. Execution: The ability to translate vision into action, and drive change within the organization. Example: A leader who can create and implement a detailed plan for achieving the company's goals, and follow through on commitments.
3. Human capital development: The ability to attract, develop, and retain top talent within the organization. Example: A CEO who prioritizes employee development and invests in training and development programs to help employees reach their full potential.
4. Collaboration: The ability to build strong relationships and foster teamwork across different functions and levels of the organization. Example: A leader who encourages cross-functional collaboration and breaks down silos to drive innovation and growth.
5. Metrics and rewards: The ability to align promises made with metrics and rewards, ensuring that the organization is incentivizing the right behaviors and driving progress toward its goals. Example: A CEO who establishes clear performance metrics and rewards employees who achieve them, while also holding individuals and teams accountable for meeting targets.

5 necessary mindsets

1. Urgency and patience: The ability to balance the need for speed with the recognition that sustainable change takes time. Example: A leader who moves quickly to address urgent issues, while also taking a long-term view and being patient in implementing larger-scale transformations.
2. Collective leadership and individual accountability: The ability to balance the need for teamwork with the importance of individual responsibility and ownership. Example: A leader who fosters a collaborative culture where everyone works together to achieve shared goals, while also holding each individual accountable for their contributions.
3. Developmental coach and relentless performance driver: The ability to balance support and encouragement with high standards and accountability. Example: A leader who provides coaching and feedback to help employees develop their skills, while also setting ambitious performance targets and holding individuals and teams accountable for meeting them.
4. Perpetual student and inspiring teacher: The ability to balance a hunger for learning with a commitment to sharing knowledge and insights with others. Example: A leader who seeks out new ideas and perspectives, while also serving as a mentor and role model to others within the organization.
5. Humble servant and bold change catalyst: The ability to balance a deep sense of humility and service with the courage to drive major change within the organization. Example: A CEO who puts the needs of the company and its stakeholders ahead of their own personal interests, while also having the courage to make bold decisions and drive transformational change when necessary.

Real world examples

Storyteller: Steve Jobs, co-founder and former CEO of Apple Inc., was known for his exceptional storytelling ability. His keynote presentations, which introduced new products to the world, were often compared to performances.

Strategist: Jeff Bezos, founder and CEO of Amazon, is widely regarded as one of the most successful business strategists of our time. He has led Amazon's expansion into a variety of new markets and industries, including cloud computing and artificial intelligence.

Execution specialist: Mary Barra, CEO of General Motors, is known for her focus on execution and operational excellence. She has led a major transformation at GM, streamlining the company's operations and cutting costs while also investing heavily in electric and autonomous vehicles.

Talent manager: Laszlo Bock, former senior vice president of People Operations at Google, is widely regarded as one of the best talent managers in the business world. He helped create a culture of continuous learning and development at Google, and his approach to hiring and performance management has been widely emulated.

Change agent: Satya Nadella, CEO of Microsoft, has been credited with leading a major transformation at the company. Under his leadership, Microsoft has embraced cloud computing and open-source software, and has shifted its focus from Windows to other products and services.

Urgency and patience: Indra Nooyi, former CEO of PepsiCo, was known for her sense of urgency and her ability to move quickly to address challenges facing the company. At the same time, she also emphasized the need for patience and a long-term perspective in order to build sustainable success.

Collective leadership and individual accountability: Alan Mulally, former CEO of Ford, is widely regarded as a master of collective leadership. He brought together Ford's senior executives to work together as a team, while also holding each individual accountable for their performance.

Developmental coach and relentless performance driver: Bill Campbell, a legendary Silicon Valley executive coach, was known for his ability to both coach and push his clients to achieve their best. His clients included Steve Jobs, Jeff Bezos, and Eric Schmidt, among others.

Perpetual student and inspiring teacher: Larry Fink, CEO of BlackRock, has been credited with creating a culture of continuous learning and development at the company. He is known for his deep curiosity and his ability to ask probing questions, and he has used his position to inspire others to learn and grow.

Humble servant and bold change catalyst: Ginni Rometty, former CEO of IBM, is known for her deep humility and her sense of service to the company and its employees. At the same time, she also led a major transformation at IBM, moving the company into new markets and industries while also embracing new technologies like artificial intelligence and cloud computing.