Executive Outlooks: Securing a 2022 Promotion or Increased Reward

It’s that time of year again. Businesses will be wrapping up their actions for this year and planning for the next, making decisions about strategy, objectives, and skill requirements. Many organisations choose the end of year as an opportunity to reward the year’s high performers with increased compensation, promotions, new responsibilities, or projects for individuals to take on as they enter the new year. When managed astutely, it’s a win for both parties, really. The executive gets to go into the festive break with a bit of good news to celebrate, and the organisation can ensure they have the right people in the right roles for a fresh start in Quarter 1.

But how can you secure a new position or title, or increased reward package? If you are looking to do this at the executive level, here is what you need to know.

Advancement at the Executive Level

For executives, promotions and raises don’t happen quite as often or as easily as they would at other levels. Once you reach a certain point in an organisation, there are often fewer opportunities and a limited amount of career moves you can make without leaving the organisation. For many, the only way ‘up’ is to accept a partnership, secure a directorship, or aim for a seat on the board.  If the latter is of interest, you can read our previous Executive Outlook blog which discusses the process at length here. Board seats are highly coveted, highly selective, and are not the right move for every executive, but at the top of the organisation these are often the only positions one could be ‘promoted’ to.

That said, that does not mean there are no moves for an accomplished and established executive to make. Rather, it means that you may have to rethink what you might have in mind for your ‘promotion’ or enhancing your remuneration package.  In both cases, it is worth taking time to outline a strategy for negotiations. You might want to enter discussions by thinking about your approach from both a professional and wider holistic perspective rather than just focusing on position or salary.

Executive ‘Promotions’

When we typically think of a promotion, we think of climbing the next rung of the organisational ladder, moving a step higher than we previously were. Progression is very straightforward in this model. But like we said, once you reach the top of the ladder, there’s no next rung to climb. Instead, you can choose to step off the ladder and onto the ledge, moving laterally. You’ll stay just as high as you were while on the top rung of the ladder, but in a different spot. From this spot, you might have more solid footing, or perhaps a different vantage point. It’s different, yet does not compromise the hard work you put in to climb this high in the first place.

Essentially, you should be thinking in terms of ‘enhancement’ rather than ‘advancement.’ There are many ways for executives to enrich their career without having to move up or down, or change their career, industry, or organisation altogether.

Career fulfilment can come from a wide range of sources, and some moves you may be able to make within your current organisation include going after that aforementioned board position, taking on more leadership responsibilities, or spearheading a big project or new initiative, perhaps related to the company’s ESG, CSR, or transformation goals. You might choose to enrich your career outside of your organisation by pursing an NED role, establishing yourself as an industry voice or thought leader, offering your time in a mentorship programme, looking into opportunities within academia as a guest lecturer, and so on. Every professional activity you participate in contributes to your bigger career picture and helps to build your reputation as an executive. While more executive responsibilities may not be available at this time or you may not be a clear choice for them now, taking on additional responsibilities at work or establishing your value in the industry outside of your own company may help build your case for consideration when the opportunity arises down the line. Even if that is not your long-term goal, adding variety and enrichment to your current role may help you get more out of your career and enable you to feel more fulfilled.

Executive Remuneration

In the current economic climate, organisations are competing globally for the best talent. The departure of an executive can be a serious setback for business continuity and performance, and more so if he or she joins a competitor. Organisations are therefore increasingly prepared to invest in keeping executives “on board” or rewarding those who have proven valuable to the organisation using financial incentives.

These incentives may come in various different forms. The most obvious option is a salary increase. However, most executive roles are compensated at a rate that is on par with the market, and therefore, salary rises at the executive level are less common than they are at other levels of the business.  Instead, the organisation may offer stock options or some sort of equity stake. Alternatively, you may receive a one-off bonus if the organisation is in a position to offer one.

In some cases, it’s likely you won’t have a say in which form your renumeration takes. The offer will most likely be determined by the organisation’s current financial position and their ability to pay. It is also worth remembering that remuneration at the executive level is often carefully balanced against shareholders’ interests. Executive pay has been at the heart of some recent cases of corporate mismanagement, with escalating pay levels and high-profile pay issues prompting unprecedented shareholder attention. As a result, the organisation may be overly cautious, or executive renumerations may be dictated by structural organisational policy. This is important to be aware of, as it may have an impact on what your organisation is willing or able to offer you financially.

That said, many organisations are open to offering financial incentives if they are in a position to do so. In which case, it is important to ask yourself how prepared you are to present your achievements and articulate the role you played in helping the organisation meet its aims.

Advice for Advancement

If you are ambitious for more responsibility or renumeration in the new year, you want to ensure that you are creating a win-win situation in your negotiations. It’s not only what you did the past year to prove that you deserve recognition, but what you’re eager to contribute in the future.  Progressing at executive level requires a combination of personal traits, positive outward behaviors, leadership competence and trustworthiness.

If you are looking to take on more leadership opportunities, what examples can you provide to demonstrate that you are capable? When trying to secure a new opportunity, it is essential to be able to show that you can work at the level you are aiming for. Are you handling your current responsibilities well enough to add more on top? Are you fulfilling your current operational or leadership duties well enough to take on more, and are your team successful enough under your leadership to warrant you leading others? Prepare some solid examples ahead of time, whether you plan to make your case in an annual review, an end-of-year wrap up meeting, or an informal discussion with a key stakeholder who holds influence. Being able to demonstrate conclusively how you are contributing to the growth and development of your team or the organisation’s future will go a long way.

Beyond proving that you already provide value to the organisation, it is beneficial to demonstrate how you might continue to contribute to the organisation’s success moving forward. Instead of thinking in terms of the organisation rewarding you for the sweat equity you’ve already put in, approach it from a position of why they should invest in you as part of the business’s future. What can you provide that might add value long term? What sets you apart and increases your worth compared to your peers? What new industry insights can you bring to the table?

This is where upskilling can be particularly valuable. If you can bring future-focused skills to the table, that will help to increase your professional value. Perhaps you have already been working on your personal digital brand, and are becoming more visible in your industry as a thought leader. The strength of your personal brand reflects well on the organisation and may provide a bit of leverage when attempting to make your case.

Determining the best next step for your next career requires thoughtful planning, realistic self-reflection, and the right approach. Maybe you know exactly what you’re after and are prepared to go for it straight away, or maybe you don’t have a plan beyond feeling like you want more and need to do something. Don’t rush to ‘just get something done’. This is your career and for you to find the enrichment you’re looking for, you’ll need to be completely clear on what opportunities or activities might provide it. That way, you’ll be more successful not just in the new year, but well beyond.

If you need neutral yet experienced insight to help determine your next move in taking your career to the new level, get in touch with  one our team for a complimentary career discussion throughout January.

Last week, the United Nations closed their annual conference on climate change, known widely as COP26. By the end of the two-week summit, diplomats from nearly 200 countries had reached an agreement known as ‘The Glasgow Climate Pact’ to work together towards global sustainability goals. There was a great feeling of optimism as government bodies and major organisations announced their pledges, targets and commitments throughout the summit, with 60 of the UK’s FTSE 100 companies joining the UN’s Race to Zero campaign. One in three of the largest public companies in G20 countries now has a net zero target, up from one in five last year. After the summit, one thing is clear: climate change needs to be at the top of the strategic agenda for businesses moving forward.

So what does this mean for leaders? Now that pledges have been made and some regulatory standards have been outlined, what is the next step? How can you ensure that your organisation is helping to make the world a greener place rather than just ‘greenwashing’?

Following Through on Promises

While it provides a good basis for setting targets, many critics of The Glasgow Climate Pact feel that it lacks the regulatory muscle to ensure change. As a result, some feel it falls on the businesses who made pledges to make good on those promises, and for the rest of the private sector to play along.

As many leaders know, making a pledge or setting a goal is just the beginning. The challenge is in the follow-through.  With net zero targets becoming a prominent part of the conversation, expect to see businesses incorporating climate goals into their strategic plans for next year. Many may choose to use the guidelines outlined by government pledges, and others may choose to go further or reach for achievable ‘quick wins’ that can easily be accomplished. But given the new focus on climate change on a global scale, businesses can no longer get away with having no sustainability targets whatsoever.

Getting Beyond ‘Greenwashing’

Not only is acting on climate change important from a regulatory standpoint, but it also matters to your customers. A survey[1] conducted by Deloitte in May 2021 found that 65% of respondents expect CEOs to do more to make progress on societal issues, including reducing carbon emissions, tackling air pollution, and making business supply chains more sustainable. Rather than leaving it to businesses to be the change, customers are willing to act on their beliefs. 23% of consumers surveyed by Deloitte say they will switch to buying products from an organisation that shares their values on environmental issues, 42% have changed their own consumption habits to match their stance on the environment, and 21% have encouraged others to switch to a company whose values align with their own.

It is clear that customers want to do business with organisations that stand for something, but there is a difference between taking a stance and actually acting on it. In this case, being all talk and no walk could be classified as ‘greenwashing.’ This term is used to criticise businesses who go to great lengths to market themselves as being ‘eco-friendly’ and use PR initiatives to seem as though they are taking tough action on climate change, when in reality they are doing very little. In recent years, corporations such as Volkswagen, H&M, BP, Nestle, ExxonMobil, Coca-Cola, Starbucks, and even IKEA have all come under fire for this. Customers are quick to see through the smoke and mirrors to the true story, and leaders need to not underestimate their audiences.

Actions for Leaders

With all this in mind, what do leaders need to know and prioritise moving forward? The first step is to take this issue seriously and understand that this is not just the latest buzzy trend in the marketplace. This is an issue that affects us all and requires swift and decisive action. As a business leader, you play an important role in driving change. Your people, your stakeholders, and your customers are all looking to you to lead the charge and set the course for how to proceed. Here are our tips for doing this effectively:

• Get Up to Speed with Expectations: Big businesses weren’t the only ones who made pledges and set targets at COP26. It is worth reading up on the targets that were agreed in The Glasgow Climate Pact and the targets set by the countries your organisation operates in. What are they aiming to achieve, and when? Even if there are currently no set, mandatory regulations that require your organisation to meet specific targets or behave a certain way, it is always best to understand what the bigger picture looks like. You and your team can use the government’s goals as guidance when plotting out your own climate strategy, and work towards the targets they have set out on a macro level. This is a means of playing it safe as well. Just because no mandatory regulations may have been set, they could be at any minute. If you aren’t already working towards these targets, regulations may make it so that you have to adjust very quickly to catch up. Instead, it is better to operate as if the targets outlined are already law so that if and when they actually do become enforced, you will already be on the right track for compliance.
• Be Realistic: As we have discussed, making a public pledge is a good start for signalling your stance, but you need to ensure your words aren’t empty. Do not overpromise and underdeliver. When creating a climate strategy, take a look at where you can actually deliver results. This might be a series of quick wins to get you started as well as some longer-term initiatives that will be rolled out over time, but everything you are proposing needs to be achievable. No business is going to reach net zero overnight, but every organisation has small actions they can take to start working towards that goal. Take an honest look at your business and where you can improve and start there.
• Don’t Shout About It: While you should be transparent with your audiences about your stance on climate change and what your organisation is doing about it, there is no need to shout it from the rooftops. It is always better to practice rather than preach, as your customers are more interested in your actions than your words. Communicate that you are taking action and be clear on how, but do not make that the central component of your marketing or media unless what you are doing can match up to the hype. Otherwise, you may be accused of greenwashing and lose a lot of credibility and trust in the market.
• Champion Change: As a leader, your people are looking to you to take charge and set the tone for change. They aren’t going to buy into the vision if it seems like you don’t. If you are going to set forth initiatives and make sustainability a key component of your organisational identity, then that change needs to start with you. Be clear on what the stance is and what expectations the team needs to meet. Provide clear actions to follow so that everyone knows what role they play. Ensure everyone is aligned on the vision and why it matters. Adjust your own personal habits if you find that they contradict what you are looking to achieve. It can be little things to start, such as carrying a reusable water bottle or becoming more conscious of how your actions contribute to your own carbon footprint. When you lead by example, you become much more credible for your people to follow.
• Keep Up to Date: The UN’s climate summit only happens once a year, but sustainability is an ongoing conversation. There are new developments constantly, and if you are going to truly become a champion of climate change it is important you stay up to date. Incorporate checking for new updates or research into your regular newsgathering activities. Just as you should be keeping tabs on your industry, you should be keeping a finger on the pulse of climate change. By building an understanding of what’s happening, you may come to find that you need to make some adjustments in your own knowledge or capabilities. Do you need to educate yourself on any specific topics to help better inform your strategy? Do you need to better understand a topic in order to effectively communicate to your team why they should care about it? Do the regulations require you to adapt your approach or capabilities as a leader?

Sustainability is a top-of-mind business issue, but one that requires firm action. It matters not whether you feel the responsibility for leading the charge falls onto the government or the private sector; we all have a role to play. Leaders need to act as champions for change to ensure that their organisation is doing their part and not making promises they aren’t delivering on. The world will be a better place for it.

[1] https://deloitte.wsj.com/articles/consumers-expect-brands-to-address-climate-change-01618945334

If you were to say that the pandemic changed the whole course of technology in business, you would only be partially correct. In truth, what the pandemic did was push us further and faster along a path we were already heading down. Digital transformation and artificial intelligence (AI) adoption have been on the annual strategic agenda for many businesses for the past several years, mainly as an exploratory item. At the start of 2020, the average global share of products and/or services that were partially or fully digitised was at 35%. By the midway point to the year, that figure had jumped to 55%, indicating that the onset of the pandemic led to approximately seven years’ worth of progress in around six months[1].

Now that we are well on the path to some version of recovery, no one is going to drop their tools, say “Well, that was fun while it lasted,” and go back to the way things were before we realised we could do it all differently. Nor should we go back. The pandemic not only changed the market conditions that leaders must navigate in order to keep driving their business forward, but also changed the way they need to lead within new target operating models.

Much has been said about AI’s potential benefits for different business functions, but can this technology help leaders bridge some of their key people management challenges? We explore the question in 5 key areas:

1. Can it support business decision-making?

Just as businesses have begun using more technology in their day-to-day practices, so have their customers. Every website visit, virtual appointment, online communication, and social media interaction creates a data story that can tell business leaders more about their consumers needs, habits, wants, lifestyles, and feelings. But the problem usually is that most businesses have no idea what to do with any of this data or no way to make sense of it.

That’s where AI comes in. These tools can continuously collect, process, and analyse large volumes of data quicker and in more detail than any human could possibly replicate. This data is translated into more digestible formats for easier analysis, detailed forecasts, and insightful recommendations that bring focus to leaders and their teams more quickly. This analysis might reveal trends to expect, issues that have been overlooked, or areas for improvement.

Collecting and making sense of this data will fall on technology, but it is up to leaders to decide what they want to do with it. AI gives leaders the clearest picture possible of what they are up against and where the opportunities are. Because these tools work continuously and provide insights in real time, leaders can act fast to course correct and keep their finger on the pulse of an ever-changing consumer market. This capability will become increasingly valuable as global competition rises and the customer journey continues to evolve.

2. Can it support diversity and inclusion?

Issues of diversity, inclusion, and equality have been thrust squarely into the spotlight as several societal conflicts have arisen this past year. As a result, many decision-makers are taking more purpose-led approaches to leadership (we have a blog on that here) and prioritising these issues in their company’s strategy. For these efforts to be genuine, they need to be reflected in the makeup of the organisation.

AI helps to build more diverse teams through hiring by eliminating some of the inherent biases that human decision-makers may unknowingly bring with them into the process. By automating everything from scanning CVs to conducting early rounds of interviews, AI is able to keep the process as impartial as possible. Of course, this does not always work as intended. AI follows the algorithms that it is trained on, so if it is fed biased information its outputs will reflect that. For example, perhaps the algorithm is trained to hire candidates that sound like a good fit for the organisation and was trained to determine this ‘fit’ based on the organisation’s current team. If the existing staff is predominantly male, all went to a certain set of schools, or are a certain racial background, then the algorithm will most likely select candidates that also possess these attributes. Some have tried to counteract this by programming the algorithm to seek out clearly diverse candidates, but this practice of ‘token’ hiring has raised questions of whether this is a truly fair practice.

It is important for leaders to remain conscious of the suggestibility of algorithms if using AI tools with this purpose, but when programmed correctly these tools can facilitate more equal hiring and help to minimise some of the bias that presents itself in the process.

3. What benefits can it bring for recruitment and onboarding?

Beyond promoting more diversity, AI can make it easier to build the right team and support their growth long term. As mentioned, automation can be used to streamline some of the process, such as scanning CVs for keywords in order to narrow down your candidate pool. While this initial screening will likely be handled below the management level, the increased accuracy of this process helps to ensure that the candidates presented to decision-makers are the best talent available for the role.

Additionally, these tools can help ensure you match the right talent to the right roles, every time. This is typically accomplished through the use of augmented and autonomous AI to personalise the experience and guide the candidate to the role that best matches their capabilities. This makes it easier for the leader to ensure that they have the right skills on their team and the support they will need for long-term success.

Integrating new talent to your team is another area where AI thrives. Technology can help to improve the onboarding process by getting new hires up to speed efficiently and via a more tailored experience. For example, there are tools available that can match a new employee’s preferences with recommendations about which benefits package best suits their needs. Starting employees off on the right foot helps to improve long-term retention, meaning leaders can focus their attention on achieving objectives rather than worrying about their team.

4. How does it support upskilling and training?

While many organisations may be actively recruiting and some leaders are having to build and onboard new teams, others have focused their attention on their existing staff. The adoption of new technology impacts all parts of the organisation, not just those at the top. If new tools are being introduced, then training and upskilling activities may need to be undertaken in order to ensure the team has the right capabilities to use them effectively. But your people don’t know what they don’t know, and as a leader, you should never assume that all members of your team are on the same level of capability and comfort with using technology.

AI learning tools can not only assess your team’s current level of knowledge but also meet them where they are. The use of personalised learning tools in L&D functions is on the rise due to their ability to tailor training to suit individual skill levels and learning styles. For example, these tools might offer staff a series of questions or activities. On the back end, AI and machine learning algorithms are analysing the responses to pinpoint the individual’s level of understanding of the topic at hand. Based on this assessment, the platform may offer the information in a new format that is more suited to the individual’s learning style and repeat the lesson until the information is absorbed, or may deem it suitable to move on to the next lesson.

For leaders, this helps to ensure that staff are getting the necessary training in the most effective way possible. Training can be a costly expense for businesses and approaching this in a one-size-fits-all way cannot ensure effectiveness. Tailoring training to your team helps to engage them in their learning and provide the best chance at absorbing these new skills.

5. How can it impact culture, progression, and engagement?

In an ideal world, every team member would be perfectly satisfied in their role and your best team members would stick around forever. But that is not our world, and therefore leaders need to pay attention to their team’s needs, levels of engagement and team atmosphere.

Sentiment analysis tools are able to assess employee communications to identify potential dissatisfaction, while intelligent employee surveying can be used to gather insights directly from staff about their feelings. If an employee is showing signs of displeasure, AI algorithms can be trained to identify patterns that suggest when they may be ready to turn over. The system would then send an alert to the HR team, allowing them to intervene before it’s too late. In some cases, this desire to leave is tied to compensation. AI tools can analyse market factors, the employee’s performance, and their job achievement to help suggest compensation.

Beyond holding onto staff that is on the verge of turning over, AI can help your team progress within the organisation. Some talent intelligence platforms are able to provide personalised career guidance to employees based on their innate capabilities, potential, and future positions of interest to encourage long-term planning. Some companies use this intelligence to match employees with mentors in the organisation who can provide relevant advice related to that individual’s identified pathway. Additionally, these tools can help to identify higher performers who may be ready for the next level or may be well suited to a leadership opportunity.

The mark of a successful leader is a successful team. By partnering with AI, leaders can conduct more regular temperature checks with their people and intervene before issues can have negative consequences.

It’s clear that AI can take on some of the heavy lifting of leaders’ people management responsibilities, but it should be noted that this technology should be treated as a tool rather than a replacement. Leaders should not become complacent and expect that AI will solve all their problems. There still needs to be a ‘human touch’ involved, especially in matters of people management. When considering AI, leaders should simultaneously work to adapt their own styles and skillsets in order to incorporate these tools into their style of leadership, but should not lose sight of all the attributes that make them a strong leader in the first place.

[1] https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/how-covid-19-has-pushed-companies-over-the-technology-tipping-point-and-transformed-business-forever

Your career can feel very personal at times. You chose your path. You pursed it via your studies and work experience. You have built and nurtured your network of connections, contacts, and colleagues through the years. You have experienced the highs of success and lows of setbacks, the pride of a promotion, the stress of a deadline, and the other range of emotions in between. Your career is a part of your legacy and the impact you make on this world. With all that in mind, it makes sense to want to be in full command of any career moves you might make. But sometimes, to keep moving forward, you may need to seek specialist external support to improve your career valuation and change trajectory.

Executive career coaching can help professionals gain a valuable new perspective on their goals and objectives, their position in the competitive marketplace, the skills needed for the future, and the steps to take in order to reach that next level. But, what benefits can a professional career coaching programme really provide?

Why Career Coaching & When to Seek It

Today’s marketplace is more competitive than ever, moving at a faster pace and with greater ambiguity. Desirable positions that are a step up are not as readily available, so when these opportunities do arise, there will be many of your peers, both internally and externally vying for the role. With the rise of remote work, qualified candidates can be sourced both nationally and globally, adding to this competition and making it more difficult to stand out.

Executive career coaching can help you as a candidate put your best foot forward whether you are looking to pursue an entirely new role, rise in the ranks of your own organisation, secure an outside opportunity such as an NED position, or take your career to the next level. Coaches are here to help you strategise your options and prioritise your next move, determine what it will take to get there, and execute the right approach.

Because our careers are so personal, it’s easy at times to get stuck in old habits or wear blinkers or put blinders on. An executive career coach is able to look at your skills, experience, values, and capabilities through an objective lens and help you to become clear on what you have to offer and how to optimally position yourself. This strong self-concept is incredibly important for executives to have as they navigate the shifting world of work and an increasingly competitive landscape.

The most common time to seek a coach is typically during a career transition, between roles, or while angling for a new opportunity or promotion. But you don’t have to be in the job market to benefit from the expertise of an executive coach. In fact, this third-party perspective can be invaluable when making any major career decisions, building and expanding your network, or establishing yourself as a thought leader.

The Role of a Career Coach

At Rialto, the executive coach can wear a lot of different hats depending on the needs of the client. The coach can take on an information-focused role if the executive needs insights, advice, ideas, expertise, inspiration, guidance, or consumer intelligence in order to achieve their goals. If the executive needs access to the right people or resources, the coach can help to unlock those doors, make those introductions, offer endorsement or credibility, or lend thought leadership or influence. Other times, the executive just needs support and encouragement. The coach then takes on the role of cheerleader, challenger, motivator, stabiliser, and sounding board.

An executive might choose to seek out a specific individual that has a special niche in one of these areas or seek out a programme or coach that fulfils all these roles. For example, in a Rialto executive coaching programme, clients work closely with our team of specialist accredited executive coaches and mentors, all of whom possess extensive business and leadership experience. These coaches help clients understand their capabilities and where they can deliver impact, where they stand amongst their competition, realise their goals and ambitions, and remain competitive in the future of work. These coaches can play whatever role the client needs them to fulfil, whether it be the role of an advisor, connector, or supporter.

Choosing an Executive Career Coach

You have worked hard to make it this far in your career and should not entrust the future of it to just anyone. If you are investing time and money into an executive coach or programme, it needs to be a worthwhile fit with clear targets.

As with any successful relationship, there needs to be a good rapport between you and the coach or coaching team. Trust is a crucial component for success. Career coaching is a vulnerable process. You need to feel comfortable enough sharing both your strengths and weaknesses, successes and failures with your coach or coaches. You also need to be open to accepting their insight, advice, and criticism. If you do not trust and respect the person you are working with, then all of this effort goes to waste and you will not get the results you desire from your programme.

Credibility is also essential in these relationships. As an executive, surely you would not want to accept career advice from just anyone. If you are looking to move up, you’ll want to work with someone who has been in the shoes you are looking to fill, or someone who can lend relevant insight and experience that is applicable to what you are trying to achieve.

You might often see loads of people on social media promoting themselves as career coaches with flashy advertising or attention-grabbing posts. But is it all smoke and mirrors? A read through their LinkedIn profile or even a quick Google search should be able to tell you if that person has the background and skills you need in your corner. A credible coach’s experience should speak for itself, and you should feel comfortable enough to enter that relationship without any doubts that he or she will be able to walk the talk.

A safe method is to go through an accredited provider such as Rialto, where the expertise of our team and their proven track records in industry have been vetted to back up their promises. At Rialto, we have worked with thousands of executives through the years to take their careers to the next level, with much success.

Entrusting your career to an initially unknown individual can be intimidating, but it can make all the difference when looking for a new role, building your network, securing a board position, earning a promotion, or preparing for the future of work. If you are interested in taking the first step to improve your career trajectory, earnings potential or work-life balance in the coaching process or would like to learn more about our executive career coaching programmes, get in touch with our team.

It has often felt as though we have been reminded at every turn that the world of work is changing more rapidly and more fundamentally than ever. It is a truth that we are well aware of because we are living through it and have heard it talked about regularly over the past 18 months. The pandemic gave us no choice but to adapt quickly to sudden changes, overcome aversions to technology, rethink more deeply what the working day looks like, and step out of our comfort zones.

Now that we have reached September 2021 and are approaching Q4, we have come too far to turn back now. Now that we know we can do our jobs from just about anywhere, many of us will never work a full week in the office again. Now that technology has become more integrated into our working lives, it is likely that we will only continue to add tools to our arsenals rather than retiring them post-pandemic. Therefore, you should not expect that the job that you were hired for will be the exact same job you will be doing two, five, or even 10 years from now.

What does this mean for you? It means that you will need to refocus, reprioritise, and reskill or upskill sooner rather than later and more often than before. As your industry, organisation, and job function change, you will likely be forced to change with them. With the final quarter of the fiscal year drawing near, the time has come to begin your preparation. Here is a summary of what you need to know about the state of skills in September 2021.

Where We Stand

In a PwC survey of 32,500 workers, more than one third of respondents (39%) think their job will be obsolete within 5 years. It makes sense then why only 50% of respondents reported feeling excited or confident about the future. These fears are not unfounded either. The World Economic Forum’s (WEF) Future of Jobs Report posits that by 2025, automation and technology will disrupt 85 million jobs globally. While these figures may be shocking, it is important to remember that 97 million new roles will be created. In both these disrupted and new roles, there will likely be partnership and collaboration between humans and technology with tech automating specialised tasks and humans having the advantage in activities involving management, decision-making, strategy, communication, and the like. As a result, the WEF report predicts that 50% of professionals set to stay in their current roles in the next five years will need reskilling.

BCG and Faethm recently released a report exploring the potential impact of various technologies on jobs in three countries over the next decade. Their findings revealed that the US, Germany, and Australia will all experience labour shortfalls in certain industries and sectors. The recommendations presented suggest that the solution to preventing widespread labour crises includes strategic workforce planning,  the creation of cultures of lifelong learning, and investment into upskilling and reskilling by both organisations and individuals. But where should you focus your attention?

Skills to focus on

Based on our research and our day-to-day work with executives of all backgrounds, we recommend focusing your attention on developing or strengthening the following skills and capabilities in order to remain relevant and competitive in the future world of work.

Adapt to Overcome

In the most recent findings uncovered by Rialto Accelerated Leadership Index (RALI) released at the start of this year, we highlighted the need for agility in order to overcome many of the challenges presented by the pandemic. It is not just us who think this is an incredibly important capability for executives to have. Earlier this year, the World Economic Forum (WEF) conducted a global survey of learning and development professionals. Of the top ten skills these professionals cited as being the most important this year, ‘resilience and adaptability’ ranked first.

Even with the lockdowns (hopefully) behind us and though we have surpassed the height of the pandemic, we are not yet out of the woods. Leaders have spent the past several months planning their next moves and as the time comes to bring them into practice, they may find that the plans they came up with were not as effective as anticipated or were not the best move for the business. It is important to remain flexible and agile during this period of trial and error. Do not become discouraged when a plan does not pan out, and quickly change course instead. That way, you can continue to help drive the business forward via the best possible course. That might require changing working models, or adopting new tools.

Digital and Technological Capabilities

According to the previously cited PwC survey, 40% of workers successfully improved their digital skills during the pandemic while an amazing 80% report feeling confident that they can adapt to new technologies entering their workplace. Given the way that our relationship with technology changed this past year and the speed at which many organisations have accelerated their transformation plans, it is understandable why tech skills are some of the most important to have. New technologies such as artificial intelligence (AI), robotic process automation (RPA), Internet of Things (IoT), and more are reshaping how we perform tasks and achieve our business objectives.

Not only is it crucial to develop the necessary skills to properly use these tools, but also to develop the right capabilities to work alongside them. Many of these technologies are specialist tools designed to perform specific tasks and will require human oversight and partnership to run effectively. But just as important is a change mindset. Having both the capability to use these tools and the open-mindedness to adopt them into your professional practice will be incredibly valuable in the future of work. Those who resist technological change stand to be the ones left behind by it. The best thing you can do now is embrace this change, work to understand what is to come, and fill any gaps in your own capabilities.

Embrace your own humanity

But as important as technological skills are, it is human capabilities that will be most valuable in the future. In a recent survey we conducted, ‘People Skills’ were ranked as the most in-demand skills in the future of work, earning 35% of the vote. In the WEF’s ranking, human skills such as emotional intelligence, communication, creativity, collaboration, and mindfulness made up the rest of the top 10. While these ‘soft skills’ might seem less important than some of harder more technical capabilities, these skills can make those tech capabilities more effective and valuable.

That is because in the tech-driven workplace, humans will need to fill the gaps that technology cannot satisfy. While technology may be really good at performing the tasks it is designed for, it has its limits. Machines currently cannot replicate skills such as empathy, strategic thinking, and creativity. These areas will be where human workers will be able to add the most value.

The Challenge for Leaders

For individuals, the task is to seek out learning opportunities and invest in their own skills. For leaders, the challenge is building diverse teams that offer capabilities spanning a diverse range of skillsets. You will always have your experts in specific areas, but those experts should also bring value in soft skills. Similarly, your excellent communicators or creative thinkers should also be able to operate and oversee the technological tools used for their job function. It’s all about creating a balance and ensuring strength in all areas throughout the organisation.

This can be done via the hiring process but can also be accomplished via your existing workforce. Consider investing in reskilling or upskilling initiatives to help your people develop the right capabilities and to ensure you have the necessary skills on your side. But at the same time, this investment should not just fall on your people. As a leader, it is essential that you continuously invest in your own skills as well. Lead by example and demonstrate the same skills and mindsets you would like to see reflected in your people. If you want your team to embrace new technology, then you need to champion it yourself. If you want to create a culture that values collaboration and communication, then you yourself need to work with other and communicate effectively.

As we move forward out of this challenging business period, the skills of the team will become one of the most valuable assets the organisation has available. If you are interested in developing your own skills or those of your team, get in touch with us about our leadership development and change, digital and business transformation programmes.

It’s hard to believe that we are fast approaching the final quarter of 2021. As the ‘Out of Office’ replies dissipate and the summer lull picks up pace, expect to see more than just a busier workload and fewer team members on annual leave as autumn beckons.

Many organisations have been discussing the introduction of plans for new, hybrid working models for months now, but many have not truly put them into practice yet. With the entire UK adult population on track to be offered both vaccinations by the end of September, it is likely that people will begin to feel more comfortable returning to the office.

The Government’s Coronavirus Job Retention Scheme has been gradually winding down for months now but is currently scheduled to finish on 30 September. The furlough scheme helped businesses keep their staff on payroll during the challenging 18 months of the pandemic, and provided a safety net for many staff. Official figures show that around 3.4 million people were on furlough in July 2021, and the scheme has supported around 11.5 million jobs throughout the whole pandemic.

The development of new business models has required leadership teams to evaluate the strengths and weaknesses of their organisations together with the imperative to implement further digital transformation. There will have been serious discussions about culture and staff, and an evaluation of the skills and capabilities that will be necessary to drive the business’s plans forward within an environment of new operating practices and greater use of technologies. Other organisations may still be struggling to sustain pre-pandemic levels and will be dealt a blow by the loss of furlough grants. Both cases will unfortunately lead to redundancies.

No business leader wants to have to make staffing cuts and in many cases, it presents both a tough personal and leadership challenge. Cutbacks cause tension, anxiety, and hurt feelings not just with those leaving, but also for those who remain. Executive outplacement services can help mitigate this and enable exiting staff to transition smoothly to a new role. But what exactly is ‘executive outplacement,’ and why might you need it?

What is ‘Executive Outplacement’?

‘Executive outplacement’ is an umbrella term for a suite of services related to helping executives find and secure their next role. You may have also heard it referred to as ‘executive transition services.’ Within an executive outplacement programme, such as those offered by Rialto, you work with an expert or a team of experts who are well-versed in the demands of the rapidly changing senior level job market. The expert(s) will assist with everything related to a job search, such as the development of a compelling value proposition, helping draft your CV and other written materials, assisting with your presentation, interview skills and elevator pitch, understanding the different approaches to managing different campaign strategies and providing advice throughout the process. These are the bare minimum services you should expect from your programme, but the mark of a good programme is its understanding of the demands of the current market and the need for candidates to differentiate by the most effective means possible. These programmes will include services related to market/industry research, skills and capabilities benchmarking, personal branding and reputation building, and digital and real-world networking and influencing.

For example, on a Rialto executive outplacement programme, the executive job candidate will partner with a team of experts that cover different specialties in the outplacement process. The team will start by helping the executive determine their specific goals and by conducting research into the skills needed, the industry trends and conditions, and the competitive landscape for available opportunities. The executive would receive assistance with drafting a strong digital profile and CV to showcase their skills, as well as a compelling value proposition and other targeted personal statements. They would also work with an expert on their personal brand, which will include coaching on strengthening their online presence and generating valuable thought leadership to help them differentiate and get noticed t attract opportunities. A good outplacement will also help with high-level face-to-face or virtual networking, connecting the executive to the right networks and provide advice on the type of people with whom they should be connecting. When discussions are secured, the executive will practice with their expert in a mock format.

While outplacement work is always conducted one-to-one, it is usually offered on a wider scale by corporates for their departing staff, usually via a partnership with a third-party provider such as Rialto. Organisations who provide services that help staff find their next role normally experience good ROI in terms of the company’s reputation and remaining staff morale.

Why Corporates Need Executive Outplacement

Whatever job cuts are being made now, you will need to hire staff in the future and continue to attract customers.  If handled poorly, redundancy can leave employees with a poor perception of your brand. By contrast, executive outplacement enables them to leave on a better footing and builds your positive reputation as a supportive, caring employer, which is particularly important in today’s intensive social media spotlight. Employees who receive outplacement support are likely to feel more valued and appreciated by the organisation, and are therefore less inclined to share their negative thoughts on social media or on review aggregator sites like Glassdoor. Reviews like these don’t just look bad to your customers who may see them, they may also deter excellent candidates from applying for open positions in the future. The COVID-19 and corresponding social and economic issues have created a demand for more empathetic and compassionate leadership. Offering executive outplacement meets this demand.

Offering these services can also have a positive impact on the staff you are retaining by helping to enhance the “psychological contract” between the organisation and its people.  Even in situations when the economic case for making redundancies is clear, your people can still feel very let down and anxious during cutbacks, which will affect creativity, innovation, and productivity.  This will be a time of heightened emotions which need to be carefully managed by leaders in order to maintain morale and mitigate panic. The peace of mind that offering such support can provide should not be underestimated. Knowing that there is a safety net in place to help leavers move forward helps reassure staff that they will not be left hanging should their role be made redundant. Morale and productivity are maintained, or at least not as severely impacted, as remaining staff can find comfort in the fact that their employer cares and is doing whatever they can to help. This will go a long way to assist with retention.

Why Individuals Need Executive Outplacement

If the executive’s current or former company does not offer these services, that does not mean the individual cannot seek them out themselves. An executive can always go direct to a reputable provider such as Rialto. They will receive the same scope of services and personalised attention as corporate clients. The benefits and value these services can provide the executive more than justify the cost of such an investment given the accelerated results of job search and better-quality outcomes.

The executive job market is highly competitive and is likely to become even more so following the end of the furlough scheme. Working with an experienced executive outplacement partner can help you to gain a deep understanding of what you are up against and help you to put your best foot forward in the market. In the case of Rialto, we have successfully assisted more than 5,500 leaders and executives with making successful moves over the last 10 years.

All in all, executive outplacement is a great way for employers to support their people during difficult periods. These services help leavers move forward and successfully navigate the market that they are having to enter. The benefits to the individual are both professional and psychological, offering long term value to one’s career and ensuring that they don’t feel left behind or less valuable because of their redundancy.

If you are interested in partnering with Rialto for your organisation’s executive outplacement services or are interested in seeking these services for yourself, get in touch with our team.

We have seen a massive shift in what ‘work’ means since early 2020. Instead of being a place that we go to, it is now something that we do from wherever we can manage to do it. Working this way allowed businesses to stay functional and stay afloat when the lockdowns brought the world to a standstill. However, over the past several months, remote working models have transitioned from being a safety net to becoming a mainstay. In fact, the majority of both C-suite executives (85%) and employees (71%) in the UK believe hybrid working will make their organisation more resilient and better equipped to survive future economic cycles.

Some of the world’s biggest companies have taken notice. At IBM, the frequency in which an employee is required to go into the office will be determined by work deliverables or the need for team collaboration, while Ford’s office workers will need to be on site for certain meetings or projects. Other companies like Uber and Citigroup are requiring a specific number of days in the office, typically two to three per week, rather than a full return to work or totally remote model. A few employers such as Salesforce and TIAA will place workers into categories or tiers based on how they will work, ranging from fully remote to flex to fully in-office. Top tech companies such as Google, Microsoft and Apple are embracing flex as their future and professional services firms such as Deloitte and PWC have empowered employees by providing them with a choice. Deloitte has given it’s 20,000 employees the choice of when and where they work and PwC has introduced what they call ‘the Deal,’ a flexible working solution that enables employees to set their own schedules provided that 40-60% of their time is spent alongside colleagues at its offices or at client sites.

This way of working recasts the corporate HQ as a destination (‘hub’) to which employees will travel for collaboration and creative meetings, rather than the base from which they should work every day. The shift to hybrid work is more than a logistical challenge, and there is no single blueprint for success in these models. Companies need to start thinking about hybrid work as an opportunity for transformation and reinvention and by doing so recognise that a fundamental change in leadership mindsets and  skillsets will be required to continue to provide the best employee and customer experiences and to innovate to new required operating models.

Rialto are working with leaders and their teams to create, maintain and enhance high performance through combined best practices from pre-pandemic leadership and new remote working and hybrid leadership. Our work has identified five key mistakes leaders tend to make when adapting to these models, which ultimately lead to friction, lack of results and engagement and retention challenges. We have outlined these areas of concern below to help guide you through your own transition.

Mistake #1: You aren’t managing collaboration or workflows effectively

From the examples above, it seems as though teamwork and collaboration will be the primary function of the office for many organisations and their staff. This is a smart approach, as it gets everyone in a room together so nothing gets missed and no one feels left out. But not every business will adopt this approach, and teams will likely have to navigate working across locations.

This might mean that those who are not on site feel left out of discussions or miss information that their teammates in the office can easily and casually exchange. It may also mean that work is unevenly distributed with the bulk of the burden landing on either the in-office staff or remote team members.

At first, this may be easy to overlook so long as work is getting done. But over time, it can have negative effects on productivity, effectiveness, and team morale. It is likely to become grating if team members feel excluded or overworked. As a result, leaders should encourage their team to follow meeting etiquette where video calls are prioritised over phone calls and remote workers are given equal opportunity to contribute. Extra care and attention should be paid to making sure that remote staff are kept in the loop when it comes to the casual discussions that happen naturally in face-to-face settings. If something is decided during one of these talks, then a call or message should be sent right after informing the rest of the team of any changes or updates. It may seem tedious, but it ensures everyone has the right information at the right time, regardless of where they may be working from that day.

Another option is to keep the office as a hub for in-person collaboration and allow remote time to be spent on independent work. Save team meetings, strategy sessions, brainstorms, or collaborative activities for the days of the week where everyone will be together in the same place. Use that time as productively as possible to align the team and ensure everyone has clear marching orders to take away and work on while they are remote. Communication will still need to be a major focus here, but it is much easier to navigate this format than constantly trying to loop everyone in.

Leaders also need to take care to ensure that work is being evenly distributed. You should not assign work to people simply because they are in the office that day, or alternatively because they are working remote and you feel they need to be ‘kept busy.’ Hybrid model or not, a good leader should always prioritise the workload based on who has the right skills and capabilities first and foremost. You should not be enacting any sort of preferential treatment for those who came into the office, nor using that as a reason to overload them. As a Leader, you need to take care to ensure that the right work is making its way to the right people in order to ensure the right outcomes are achieved in a timely manner.

Leaders in particular need to be more visible than ever. The easiest way to ensure you remain accessible is to run regular check-ins. Frequent contact via video technology is an effective way to maintain your visibility, and provides your employees with the opportunity to ask questions and keep the lines of communication open and transparent. Communication will be crucial for the success of these models, and should be a top priority for all.

Teamwork supports connections between colleagues via the opportunity to discuss projects,

share ideas, network, mentor, and coach, for example. Two-thirds of leaders report that

these kinds of collaborations have enabled high performance. As leaders look to maintain high performance, they will need to design and develop the right spaces for these small interactions to take place, and adapt their culture to support it.

Mistake #2: You’re sacrificing culture

It is easier to create and foster team relationships and culture when your entire staff is in the same place as one another day in and day out. The pandemic will have diluted company culture, removing the chance for certain rituals, routines, jokes and valuable ‘water cooler moments.’ Moving to hybrid working is a challenge because it requires acceptance from leaders that the future will be culturally different to what it was. That said, it also creates an opportunity to review what aspects of a culture are important to keep and which no longer serve the organisation well.

To shift to a hybrid or even remote work model does not mean that culture has to die, and many make the mistake of either doing too much or too little to adapt to this change. On one end of the spectrum, we had those organisations who overloaded their staff with Zoom quizzes, virtual happy hours and online activities when the pandemic first broke out, which was nice at first but eventually became a bit annoying for staff. At the other end, there are organisations where staff’s only interaction with one another is for work-related purposes and there is no real sense of community.

Leaders now need to find a happy medium that fosters those bonds between colleagues but does so in a way that feels natural for this type of working model. It might be as small as starting all meetings with having everyone share an anecdote from their week just to get people talking or arranging in-person events periodically just to get everyone together and mingling. What works best will differ based on your organisation, but the important thing is to meet people where they are and do what feels natural. If you aren’t sure what that is for your organisation, then talk to your people. Make them active participants in determining what your new culture will look like. Not only does that help you to find what works, but it also fosters deeper investment into the organisation and a wider sense of community. The best organisations are those that empower their people to be part of the decision making by being truly inclusive to create a winning culture.

Mistake #3: You’re still in panic mode

There has been a lot of uncertainty in the current circumstances, and many leaders have had to scramble to adapt quickly to changing conditions. That has led to a lot of trial and error, which has proved successful in some cases. Experimentation is a good and necessary step to change, but if you are constantly trying something new without learning from it or acting in support of a solid strategy, you are doing it wrong.

Haphazard experimentation worked fine at the start of the pandemic when everyone was just trying to stay above water, but now is the time to be strategic and deliberate. We shared our advice for maximising the value of your people with strategic workforce planning in this blog, but leaders should be focused now on creating long term plans for the business now that the situation is more stable. Whereas remote working started as a means to an end to facilitate business continuing during the pandemic, leaders would be naïve to continue viewing it this way. It is time to see remote and hybrid work for the strategic and human-focused value they can provide to the business moving forward, rather than just serving as a life raft in tough times.

That’s not to say that experimentation should be scrapped; rather, it needs to be intentional. A failed experiment does not mean you need to immediately launch into another. Take the time to learn and assess. What went wrong? Why didn’t it work? What can be improved going forward? How do attitudes need to adjust? We are no longer operating in panic mode, and it is time for boards to continue making strategic decisions about the future of the organisation that go beyond the end of the pandemic period. Begin to lay solid foundations for your bigger picture objectives and future proof for technologies, changes in consumer behaviours, or shifts in the marketplace. That might mean beginning the process of upskilling your staff or deciding what your organisation’s permanent relationship with the office will be.

This is the time to determine and understand best practice in the new normal. Keep your focus on the future and on the steps you can take now in order to meet your objectives for long term success. Take risks, learn from your team, learn from outside your organisation, and formulate a strategy to achieve something that matters.

Mistake #4: You aren’t taking a people-centric approach

As we plan for the future, we have the many lessons of the pandemic to take along with us. One of the major takeaways of this past year is the importance of people-centric leadership. This past year was a challenging, humbling, and humanising experience for most of us. Not only did the pandemic bring widespread loss and hardship, we saw major social issues come firmly into focus and businesses take public stances.

For example, sustainability has been a hot button issue for many years but became even more prevalent after the pandemic revealed just how much our previous day-to-day activities impact the environment. A study by KPMG showed that 89% of CEOs want to lock in the sustainability and climate-change gains they’ve made during the pandemic. Hybrid working may be the answer to achieving environmental goals, as cutting commutes or switching business trips to online interactions can significantly reduce a company’s carbon footprint. However, organisations must also consider that many large office buildings are more energy efficient than residences, but for workers at organisations where climate change has been cited as a priority, it is going to be harder to justify the five-day-a-week office model as being aligned with carbon goals without a clearer accounting of exactly how that is being measured. It will be a fine balance for leaders to manage the expectations and priorities of their people while continuing to deliver value.

Beyond catering to what their people care about, businesses need to also begin catering to and caring for their people more. The employee wellbeing implications of COVID-19 will be with us for some time. This may require supporting employees experiencing poor mental health, addressing specific concerns and anxieties about the return to the workplace, supporting staff through personal loss, and mitigating the impacts of ‘Long COVID.’ In the longer term, hybrid working may support improved wellbeing through reducing commuting time, providing employees with more autonomy around their schedules, and allowing extra time for health and wellbeing activities. But every pro has its con, and there are also issues of work like balance involved with remote work.

Leaders will need information and guidance on ensuring inclusion and diversity, effective induction, and employee engagement with a distributed team. More importantly, there needs to be an empathetic understanding of the challenges staff face day-to-day.  The way in which managers monitor performance, engage their team, and approach mental wellbeing are all areas which need to be developed for hybrid working. Understand that staff may be dealing with issues that go beyond their work responsibilities, and work to be empathetic and as accommodating as is appropriate. Your team are human beings with needs, emotions, values, fears, and concerns. While the nature of your relationship is to serve the business, that does not mean that you need to remain cold and detached. In fact, the most inspirational leaders are those who show compassion, respect, and vulnerability with their people. The human face of business will need to take shape over the next few years.

Mistake #5: You’re resting on your laurels

One of the worst things you could do as a leader in a time like this is to settle. Although leaders may have developed new skills for managing a remote workforce over the past, hybrid working brings unique challenges that are different from both fully remote and predominantly office-based models. The leadership styles that worked five years ago, a year and a half ago, or even six months ago might not carry over to hybrid work models.

Organisations will need to put enhanced learning and development in place to ensure effective people management. We already touched on the challenges of navigating dispersed teams and appropriately managing workloads. But another area that may require rethinking is assessment and expectations. High performing leaders need to invest time into themselves and their teams to shift behaviours. Some examples of this include honing and improving soft skills such as communication and mentorship. It also requires an honest and potentially harsh examination of both the positive and negative impact your behaviours can bring forth. Avoid micro-managing, set specific metrics for productivity, encourage open and empathetic communication, and provide actionable feedback. Understand that this is a transition for everyone involved, and seek out constrictive criticism so that you can grow and improve.

Performance management is an area worth reassessing for the hybrid environment. Instead of assessing employees based on time in the office or in virtual meetings, managers will need to adjust to assessing performance through outcomes, contribution, and value generation. Managers will not be able to monitor every aspect of an employee’s work when they are working remotely, nor should they try. Instead, create new systems for ensuring that objectives are met and impact is created without sacrificing the autonomy and flexibility of hybrid work models.

While we may no longer be in panic mode, the rise of hybrid is still a new chapter that will take some adjusting to. These mistakes are common, but very easy to correct once you are aware of them. The key is to listen, learn, and adapt. Remain strategic, yet people centric. Above all else, understand that this new phase will likely require you to personally reflect and make changes to your own style and approach.

If you would like additional support in strengthening your capabilities as a leader or aligning your team for the world of hybrid work, get in touch with our team regarding our range of Leadership Development or Culture, Digital and Business Transformation services.

With the COVID 19 vaccine rollout providing hope and early promising results, it seems that we are closer to a return to a new normal than we have been for over a year. This positive outlook means that it is safer for both individuals and businesses alike to start seriously considering and planning for what comes next, what this time has meant for businesses, and what needs to change in order to suit new ways of living and working. One major topic that needs to be covered as part of the discussion is purpose.

This past year has brought out the human side of business. It has led many of us to revaluate what is truly important and presented many organisations with challenges to their purpose statements. But what does purpose truly mean for businesses, leaders, and their people in 2021 and the near future? How do you transfer it from words into a real actionable leadership strategy?

Defining Purpose

Fundamentally, many businesses exist to make a profit, but profit should not be confused with purpose. Purpose is the starting point that led to the founding of the business. Think of it as the the ‘Why’ at the centre of Simon Sinek’s ‘Golden Circle’ model. Purpose looks beyond profits to the long-term impacts you would like to have on your customers, staff, market, community and the environment.

‘Purpose’ and ‘values’ are often misunderstood, due to being used interchangeably or variably in different contexts. Your purpose is why you are in business, and your values are the guiding principles and standards for behaviour. Think of purpose as the big picture roadmap for the direction in which you would like the organisation to progress.  Values are the compass for how to get there. In the Sinek model, values sit in the ‘How’ ring. How do you behave to ensure you are living out your organisation’s purpose? How does the organisation work towards this vision each day?

Why It Matters

Purpose and vision exist on an individual level as well. Just as you have your reasons for pursuing a particular career path and have a set of moral principles that matter to you, so will the people you do business with. Millennials and Generation Z are more socially conscious than previous generations, and as they begin to make up larger portions of the workforce and consumer market, these young people want to buy from and work for companies whose purpose they resonate with and whose values they share.

Think of Maslow’s Hierarchy of Needs. At the top of the triangle after all the basic and security needs are fulfilled, we start to look at topics such as belonging, esteem, and self-actualisation. Purpose provides unification, motivation, inspiration, and helps individuals tap into these higher level needs to get more out of their role.

Employees turn to purpose as a way of bringing meaning to their work and to understand the contribution they are making to the organisation and the world around them. Research has found that these employees who find meaning in their day-to-day work feel much more satisfied and engaged. Employees who feel connected to their organisation’s purpose have a deeper sense of belonging and are therefore more motivated in their roles and are easier to retain.

The intrinsic motivation which purpose can provide to staff has become incredibly valuable during the hardships of the past year. The changing business landscape has forced many businesses to rethink how they can incentivise their employees, especially in situations where financial rewards are not practical or possible. In some cases, the fulfilment of doing meaningful work and contributing to the bigger mission and vision may be enough to encourage staff to remain with the organisation.

Walking the Talk

For this to have any affect at all, businesses and their leaders need to ‘walk the talk.’ Your purpose is mere words on a page until there is action behind it. For example, a business can say that its purpose is to create a fairer world for all, but this means very little if its board comprises only one predominant demographic, and if its female staff are not paid the same as their male counterparts. Clearly, a lack of diversity at a senior level and unfair compensation practices are in direct conflict with the organisation’s mission of fairness.

This is a very serious and big picture example, but infractions against a company’s values and purpose can occur daily in smaller instances. Authenticity matters. If a leader is to serve as a champion for the organisation’s mission and purpose, they need to ensure that their words match their actions. If your company has outlined its values, you need to ensure that both you and your team are meeting those standards of behaviour. If you state that you value inclusion, you must ensure that you give every member of the team a voice. If you value respect, it’s important that you are respecting your team’s boundaries and opinions, and that they are showing the same respect to one another.

This sends a clear message to your team that the company is serious about what it stands for, and thereby helps to build their faith in the organisation. Staff will find it easier to buy into a purpose if they see it being lived out every day. Leading by example is critically important to build this type of trust and to reap the productivity, motivation, and retention benefits that ensue.

Putting this into practice post-COVID will be challenging for many leaders. Reinforcing purpose on an individual level and creating that sense of alignment and unity is more difficult whilst staff continue to work remotely.

While it is essential for staff to have a clear idea of where the organisation and its leadership stands in terms of values and purpose, it is equally important that each individual team member understands the role they play in that. This understanding of individual impact will help staff find their place within that bigger picture.

Operationally, this links back to the standards set by management. Leaders need to continue holding their team to those same behavioural principles even when outside of the office. Examples would include allowing everyone a chance to speak on video calls or monitoring team correspondence to ensure that teams maintain respectful for one another.

At Rialto, we work closely with teams to help staff gain an understanding of the impact they make on the organisation, and to understand where they can improve. Often, issues can be swiftly resolved through better communication from leadership. Managers need to have conversations with their staff about the purpose of the organisation, the contributions each team member makes towards furthering that purpose, and the values and standards of behaviour that every person in the organisation is held to.

One of the clearest indications of walking the talk is a company’s willingness to invest in its own people. Taking the time to ensure that everyone is aligned, on board, and motivated is the best way of ensuring that a company is living out its own purpose. Leaders should ensure that they are authentic in their words and actions and are leading by example. Hold staff to the right standards, but make sure they each understand what contributions they can be valued for, how to make those impacts, and how this all fits into the greater purpose of the organisation. That way, you build a team that truly believes in the work that they do, and who are willing to stand by the organisation, its customers, and its wider stakeholders.

Growth is the number one priority of CEOS in 2018 and 2019 and, to help achieve it, they are shifting their focus to embrace digital business, according to a recent study.

The Gartner 2018 CEO and Senior Business Executive Survey found that as simple, implemental growth becomes harder to achieve, CEOs are concentrating on changing and upgrading the structure of their companies. This also includes forming a deeper understanding of digital business.

In total, 460 business leaders in organisations with more than $50m in annual revenue were qualified and surveyed.

The findings show IT remains a high priority, coming in at third position, with CEOs highlighting digital transformation, in particular. Workforce has risen rapidly to become the fourth-biggest priority, up from seventh in 2017.

The number of CEOs mentioning workforce in their top three priorities rose from 16 per cent to 28 per cent. When asked about the most significant internal constraints to growth, employee and talent issues were at the top.

CEOs cited lack of talent and workforce capability as the biggest inhibitor of digital business progress.

“Although growth remains the CEO’s biggest priority, there was a significant fall in simple mentions of it this year, from 58 per cent in 2017 to just 40 per cent in 2018. This does not mean CEOs are less focused on growth, instead it shows that they are shifting perspective on how to obtain it,” said Mark Raskino, vice president and Gartner fellow.

“The ‘corporate’ category, which includes actions such as new strategy, corporate partnerships and mergers and acquisitions, has risen significantly to become the second-biggest priority.”

Survey respondents were also asked whether they have a management initiative or transformation programme to make their business more digital. The majority (62 per cent) said they did. Of those organisations, 54 per cent said that their digital business objective is transformational while 46 per cent said the objective of the initiative is optimisation.

In the background, Gartner reports, CEOs’ use of the word ‘digital’ has been steadily rising. When asked to describe their top five business priorities, the number of respondents mentioning the word digital at least once has risen from 2.1 per cent in the 2012 survey to 13.4 per cent in 2018.

This positive attitude toward digital business is backed up by CEOs’ continuing intent to invest in IT. Three-fifths (61 per cent) of respondents intend to increase spending on IT in 2018, while one third (32 per cent) plan to make no changes to spending and only seven per cent foresee spending cuts.

The 2018 CEO survey showed that the percentage of respondents who think their company is an innovation pioneer has reached a high of 41 per cent (up from 27 percent in 2013), with ‘fast followers’ not far behind at 37 per cent.

“CIOs should leverage this bullish sentiment by encouraging their business leaders into making ‘no way back’ commitments to digital business change,” added Raskino.

“However, superficial digital change can be a dangerous form of self-deceit. The CEO’s commitment must be grounded in deep fundamentals, such as genuine customer value, a real business model concept and disciplined economics.”

Research finds that four-fifths of workplaces don’t have a culture of experimentation

Innovation is the lifeblood of business and in the era of digital disruption it is also critical to survival for some organisations. Many leaders may vaunt it as one of their values and genuinely believe they promote it but new research suggests otherwise.

According to a study carried out by RADA in Business, four-fifths (81 per cent) of workplaces don’t have a culture of experimentation. Moreover, while one quarter (24 per cent) reckon their workplaces are desperately in need of new ideas and fresh thinking to overcome current problems, only one fifth (21 per cent) of employees believed anyone was interested in listening to their ideas.

Worse still, 16 per cent of workers said that any new idea would actually be treated with suspicion and criticism, while 15 per cent believed their business leaders actively discouraged innovation. It is far removed from the vision espoused by many leaders of their workplaces enjoying a collaborative and open communication culture where innovation is championed.

In response to this so-called “innovation gap”, RADA in Business, the commercial subsidiary of the Royal Academy of Dramatic Art which provides communication skills training for corporate individuals, has been working with leading UK companies to transfer dramatic techniques, such as play and improvisation, from a theatrical setting to a business environment.

Kevin Chapman, director of RADA in Business, is concerned to see how many employees feel that creativity and innovation aren’t encouraged in their role “especially when there are simple techniques available to help companies to support and tap into the power of imagination for solving problems or developing new ways of working as a team,” he says.

Chapman recommends that businesses need to create space for people to play with new ideas “without being overly critical”. “Adopting an attitude of enthusiastic curiosity towards every idea that you come up with defies your critical voice and may lead the way to new innovations,’’ he continues.

The research found that government and local government workplaces are the settings where people find it hardest to think creatively (21 per cent). It also reveals that those working in IT (29 per cent) and financial services (26 per cent) find it hardest to make their voices heard, with companies often dominated by a few “loud voices”.

Interestingly, the workers who feel most able to think creatively are those working in teaching and professional trades (such as builders and plumbers), who are four times less likely to struggle with innovation than those in governmental jobs.

Whatever the sector though, it is essential that all leaders create time and space for innovation and put mechanisms in place for ideas to spring forth. Even if they don’t appear to be game-changing initially, they could provide the spark of inspiration for someone else. Adopt the mantra that all ideas are worth hearing about.

A true culture of innovation demands leaders to be more risk-taking, experimental and collaborative but above all, they must recognise the crucial part innovation plays in their organisations’ future rather than merely paying lip service to it. The research also stands as evidence of companies still not listening to their people, which has an extremely detrimental effect on motivation and ultimately recruitment and retention.

And with the most creative and innovative brands of the 21st Century also among the most successful – Apple, Amazon, Google, Tesla, Netflix et al – how much more tangible evidence do business leaders need before they elevate a culture of innovation to the top of their corporate agenda?