As the knowledge economy evolves amidst the chaos and complexity, so too leadership, as we’ve always known it, must also evolve and change. Today’s environment of chaos and complexity rends the idea of leader as controller and guardian an impossible situation. Out of the knowledge era has arisen the acknowledgement of the business organization as a system, and the necessity for connectedness. The chaos and complexity itself stem from the interconnectedness of all the parts – and therefore the need for participation and contribution from all the parts. Regardless of the size of the system – whether it’s the world food system or the IT department – in the knowledge era we’re all connected participants.
So the next challenge as we evolve through the knowledge era into an age of connectivity, is to understand and learn how we as humans connect with one another, and what that means to the role of the leader and what that means for future organizational success.
Leaders today must understand that the greatest opportunities for growing an organization lie in maximizing the potential of its people. Studies of American business, including health care, reveal the following general truths.
1. The average leader spends three-fourths of the workday dealing with people issues.
2. People make up the largest single cost in most businesses.
3. People are the largest, most valuable asset of any company.
4. People are responsible for carrying out the mission and vision of the organization.
Faced with these truths, leaders must invest time and effort in connecting with their workforce – that is, building effective relationships that enable the highest levels of performance. Positive connections with people start with developing the self. A leader’s behaviour is the single predictor of an organization’s performance level of connection.
Leaders must undertake a comprehensive program of self-awareness in which they learn about the convictions, mental models, and emotions that power their behaviour. Only by being aware can the leader make a choice to act according to behaviours that are most appropriate for inspiring, engaging, and guiding their people.
CORPORATE HARMONY is grateful to Dr. Michael E. Frisina for his contributions to this entry.
