Gleaning Insights from 2024's Leadership Scenarios: 6 Key Takeaways
Gleaning Insights from 2024's Leadership Scenarios: 6 Key Takeaways
The preceding 12 months have been marked by an array of significant occurrences, none more significant than the re-election of Donald Trump as the U.S. President. As we move into 2025, what valuable lessons can we glean from 2024?
1. Business operations will continue to grow complex
The political, social, and economic developments of 2024 have further amplified the already intricate business environment. Geopolitical tensions loom larger, new administrations have assumed power, economic growth remains sluggish, and the future remains uncertain worldwide. Consequently, leaders should anticipate an even more convoluted business landscape in 2025 - by being optimistic yet prepared for the worst.
One means of doing so is by leveraging the perspectives and networks of board members. As stated by Didier Cossin, a governance expert and author of "High Performance Boards: A Practical Guide to Improving and Energizing Your Governance," board members concentrate on strategic adjustments that align with potential risks and on fostering resilience in unpredictable environments. Their role emphasizes values-driven governance, integrity, and adaptability, which are vital in mitigating downside risks while capitalizing on upside opportunities.
2. Overly simplified messages can foster mistrust and foster division
The year 2024 witnessed the widespread utilization of oversimplified messaging in politics. This ongoing trend extends to the business sector as well. In an era of escalated media scrutiny, TikTok moments, and cancel culture, the call for authenticity has been replaced by a dominant tendency for leaders to exercise more control over what they say and communicate.
Leaders need to be aware that their choices and communication style can either bolster trust or undermine it. As Nik Kinley, a leadership consultant, assessor, and author of "Rewriting Your Leadership Code," explains, leaders can either expedite information flow or hinder concerns from being voiced. It is essential to acknowledge that simplicity does not equate to clarity - and that actions that positively impact organizations can be the catalyst for appointments, while those detrimental to them ultimately determine longevity in power.
3. The world is advancing towards greater inclusivity
The Olympics in Paris marked a historical milestone by achieving gender parity for the first time. This achievement was made possible thanks to the International Olympic Committee distributing equal numbers of spots to male and female athletes.
According to Gaia van der Esch, an executive, policy expert, and author of "Leading Our Way: How Women are Re-Defining Leadership," the Olympic Games served as a symbolic advancement for the sports world and beyond. Although there is still room for improvement, such as more equitable sponsorships and a more diverse representation of referees and coaches, this event represented a significant step towards gender parity.
Van der Esch highlights two essential takeaways from this achievement: "First, where there's a will, there's a way. Top executives at both the International Olympic Committee and the French National Olympic Committee were deeply committed to diversity, and athletes demanded it. Second, if our goal is to build a fairer world, we must begin by choosing leaders who are driven by values and capable of implementing change while charting new leadership paths to follow."
4. There's an opportunity to exhibit genuine leadership on sustainability
One prominent trend in 2024 has been skepticism towards environmental, social, and governance (ESG) issues, leading many political leaders to retreat from climate commitments. However, this should not discourage leaders from prioritizing sustainability. Instead, it presents an opportunity to demonstrate authentic leadership on this issue.
Knut Haanaes, a professor of strategy at IMD Business School and co-editor of "Leading The Sustainable Business Transformation," suggests reframing the focus of climate action to emphasize intelligent business decisions. "Renewables lower costs, green products unlock new markets, and circular practices bolster resilience," Haanaes explains. Inspiration, in contrast to fear, is more effective in sparking action, so leaders should explain that leading on sustainability is an opportunity to innovate, adapt, and excel while opponents remain stagnant.
Marilyn Waite, author of "Sustainability at Work: Careers That Make a Difference," warns that leaders who neglect sustainability risk alienating their employees. In 2024, it appears set to be the hottest year on record, and environmental and societal challenges have increased awareness amongst employees, leading to a wave of "conscious quitting." In a study conducted by sustainability influencer Paul Polman, it was discovered that a third of respondents resigned from their jobs due to disappointment over their organization's efforts to tackle social and environmental challenges.
5. Encouraging a "speak up" culture can prevent catastrophic failures
A probe into Boeing's safety climate within the U.S. aerospace company, conducted by a congressional panel, underlined the significance of enabling employees to voice their concerns. Boeing has been under the microscope following the tragic crashes of two of its 737 Max aircraft in 2018 and 2019, as well as the dislodging of a significant part of another 737 Max plane's body after take-off in January. A whistleblower testifying at a hearing attested to being subjected to intimidation and hostility following his calls for improved safety measures related to the company's aircraft.
Sabrina Bushe, the client engagement director at ethical practice advisers Principia, cited the necessity that a "speak-up" culture transcends mere reporting systems installation. This involves top-level leaders fostering an environment where employees are emboldened to scrutinize one another, air disparate viewpoints, and feel secure in expressing reservations, even if they pertain to minor misdemeanors or major threats. This initiative should commence at the highest echelons, with leaders visibly promoting challenge and disagreement as positive attributes. By championing such a culture, organizations are optimally positioned to pinpoint issues in their infancy, before they escalate into catastrophic situations.
6. Business isn't always like playing a game of "Happy Families"
The lengthy legal dispute between the Murdoch family over the upcoming fate of their media empire has shed light on the intricacies of balancing family and corporate matters. As noted by Alfredo De Massis, co-author of "The Family Business Book: A guide for prosperous multi-generational families in business", honesty and equity are essential to uphold peace within the family, particularly within intricate family constellations. Open dialogue and forward-thinking are indispensable for leaders navigating generational changes in family enterprises.
- Given the Murdoch family's protracted legal battle over their media empire, leaders of family-owned businesses should learn the importance of fostering open communication and strategic planning, as these factors can prevent future conflicts and secure the organization's growth.
- In light of the high-profile Murdoch family dispute, business leaders can draw valuable lessons in managing familial and corporate dynamics. This includes emphasizing integrity, setting clear expectations, and nurturing a shared sense of responsibility, ensuring a harmonious and sustainable family business in the long run.