Financial services are undergoing a massive digital shift. Consumer behaviour is changing and there is a demand for digital, user-friendly solutions with 24/7 availability.
Using technology as the key enabler, disruptive entrants are covering classical banking and insurance needs in new ways. Meanwhile, traditional players constantly fight to stay competitive through new product offerings, digitisation of the core, and changed ways of working.
To say that today’s world is characterised by VUCA (volatility, uncertainty, complexity, and ambiguity) is somewhat of an understatement, but what are these massive disrupters and what kind of leader is needed to successfully navigate organisations through the changes? There are many factors, but two immense, interdependent trends are people and technology.
People – fluid and hidden
Since 2008, economic and resulting political decisions have greatly impact the lives of people across Europe. Retirement is fast becoming an increasing non-option, and younger folk are being locked out of both education and work, helping to create a ‘hidden’ generation. Furthermore, the decline in full time work is negatively impacting especially men; however, the rise of flexible working, or ‘gigging’, is enabling a more fluid work arrangement, which is seeing more women in the workplace. Finally, but no less importantly, many countries are attempting to limit immigration, which will impact the access to and diversity of workforce skills.
Technology – automating and augmenting
Once upon a time, intelligent, wearable and social technologies existed only in the realms of science fiction. Today, they are fast entering our workforces and transforming how we live. 54% jobs in the EU are predicted to be at risk of automation, while the meteoric rise of big data and wearables – along with AI’s extraordinary ability to analyse data – is opening the door to a new era of quantified, augmented talent. Furthermore, social technologies have revolutionised how we connect with one another and have enabled businesses to collaborate both within and across organisational boundaries.
Mind your attitude – the impact of trends on needs and expectations
Trends don’t exist in isolation, of course; they combine in myriad ways to produce effects we can’t always predict. Nevertheless, from the interrelationship between people and technology, we can see the emergence of specific social attitudes that are already infiltrating the workplace. And it’s these mind-sets that are the key to the need for a new type of leadership.
We are going to see talent, teams and cultures entirely redefined by these expectations, and managing them will require what we’re calling "digital leadership".
The digital leader: the people-centric approach
Don’t be fooled by the word ‘digital’. While technology is a driving force in this world, I hope this article has made clear that straight technical expertise isn’t going to cut it. No, the next generation of leader is going to need to be highly people-centric, understanding the impact of technology on their people (and vice versa) and using that knowledge to create an exceptional workforce.
Capabilities: The VUCA of people and technology trends is driving highly chaotic change. Leaders who can leverage systems thinking to understand the dynamic relationship between people and technology, and use it to facilitate creativity and organisational agility, will be able to transition their organisations into the new digital age.
Values: Social technologies have created a transparency around people, meaning being respectful and authentic are critical leadership traits. A people-centric approach underpins everything: in an automated future, leaders will ironically need to be more empathic to keep teams together and individuals engaged.
Roles: The intense fluidity of teams, (AI, hidden) talent and cultures mean leaders will have to let go of control, moving from deciding to advising and empowering specialists, as well as facilitating collaboration between people and machines. It will be less about doing and more about inspiring others to do.
Not for the single-minded – PA’s Digital Leadership team
It is straight up impossible for one leader to be able to do all of the above. That’s why at PA, we have developed a Digital Leadership model that outlines six essential personas in a way that helps businesses build a balanced and highly effective digital leadership capability:
The model is designed for a team of ‘spiky’ leaders, who individually exhibit one or more ‘personas’, and collectively demonstrate the broad capability required to ensure sustainable success. Our Digital Leadership model will help leaders uncover and leverage their natural strengths and provide an overview of critical digital capability gaps. It has also been designed in alignment with PA’s Digital Barometer so that both tools can be used together to provide a rich and powerful view of an organisation’s willingness and readiness to transform into the digital age.
Do you think you have what it takes to be a digital leader? To find out more, please contact Knut Erlend Vik.