That is the theme for the World Economic Forum Annual Meeting held in Davos this week. “True leadership in a complex, uncertain, and anxious world requires leaders to navigate with both a radar system and a compass. They must be receptive to signals that are constantly arriving from an ever-changing landscape, and they should be willing to make necessary adjustments; but they must never deviate from their true north, which is to say, a strong vision based on authentic values.” – wrote Klaus Schwab, Founder and Executive Chairmen of World Economic Forum.
According to him there are five leadership priorities for 2017.
- Leaders will have to come to deeper understandings with the Fourth Industrial Revolution, identify both its opportunities and threats and address them.
- Leaders will have to build a dynamic, inclusive multi-stakeholder global-governance system. Today challenges can only be addressed through global public and private collaboration. At the same time, geopolitical shifts have made today’s world truly multipolar. And how to make sure that globalization is benefiting everyone?
- It is one of greatest challenge for leaders how to restore global economic growth. The current stagnation results lower living standards. Technology advancement has a negative impact on the labour market resulting increased unemployment in general. In addition Youth unemployment become critical globally and nationwide.
- Leaders have to reform market capitalism, and to restore a strong connection between business and society. There is an urging need to create permanent structures for balancing economic incentives with social wellbeing. Or expand the single focus from profit to people, planet and purpose as well.
- Leaders will need to address the pervasive crisis in identity formation. Globalization has made the world smaller but more complex, and many people have lost confidence in institutions. Many people now fear for their future, and they are searching for shared but distinct beliefs that can give a sense of purpose and continuity. Responsible leaders must recognize people’s fears and anger as legitimate, while providing inspiration and constructive plans for building a better future. This identity formation is a messy process as it involves wide scale of emotions, which should be listened to and respected but not used or misused.
I would add one more challenge to the above list:
Leaders will need to work arduously to restore trust at many levels by defining first what trust really means in the eyes of their stakeholders and then being truly responsive and responsible leaders for their community, and their people.
Who are your key stakeholders?
What makes you a responsive and responsible leader for all your key stakeholders?
How could you be more responsive and responsible for them?