2020 was a year like none other, forever changing how we live and work. But with disruption also comes opportunity. Here are three trends you can capitalize on as you lead your business and navigate an evolving marketplace in 2021.
Despite the obvious challenges it brought, COVID also sparked some good things. One very notable development was the fading of leaders' aversion to risk while a sense of urgency for change took hold. As the impacts of the pandemic spread, we saw businesses begin to break free from the old ways of thinking and doing to find new and innovative ways to succeed, all in record time.
While some companies made minor shifts in a few days, such as developing an online presence, others made wholesale change that included launching new products or services in a matter of weeks. In less than a year, entire industries such as video meeting platforms and telemedicine were turbocharged.
No matter what industry you're in, you have a once-in-a-lifetime chance right now to rethink how you get things done. Thanks to a marketplace that is more open than ever before to new ideas, you have a window of opportunity to:
This urgency of innovation will help your company evolve faster and find new avenues for growth.
Here's how you can seize the opportunity around innovation.
The work-from-home norm of 2020 gave us a rare glimpse into the personal world of our colleagues. We were allowed to peek into their lives, meet their pets and wave at their children. We celebrated birthdays and work anniversaries on Zoom while we also agonized with each other over isolation, social injustice and burnout.
The separation between our personal and professional lives is much smaller now, and that will have a significant impact on leaders. There is a new expectation for you to show up differently to meet the needs of your employees. What they want more of is the authentic you – a leader who is open, empathetic and real. Someone who knows how they feel and who allows themselves to be known, too, in good times and bad.
I think of this as being a "connected leader" with the ability to form strong bonds that produce better outcomes. Connection can happen in many ways, but it often starts with you demonstrating some specific behaviors such as:
These types of behaviors will draw your people closer to you and give others permission to be more connected, too. As a result, you'll enjoy a greater sense of community and trust amongst the team, which will help them pull together in difficult times and rise to a higher level of collective performance overall.
Here are a few ways you can step into the connected leader role.
The events of 2020 have sparked deep reflection among leaders, boards and investors. Many are listening to stakeholders with a greater appreciation for their concerns about how the world is changing and their expectations for how businesses can drive positive change. As a result, leaders are taking a closer look at how their organizations can be a greater force for good.
This broader view of business' role in society is commonly referred to as "stakeholder capitalism," which is the concept that companies should serve the needs of not just their shareholders, but also their many stakeholders, such as employees and the community.
It's not a new idea. Many companies have for years embraced corporate social responsibility in their philanthropic outreach. More and more, however, businesses are making purpose a core strategy in their business model. And in 2019, the Business Roundtable made a bold move by releasing a statement signed by 181 CEOs who committed to lead their companies for the benefit of all stakeholders including customers, employees, suppliers, communities and shareholders.
Another indicator of this shift in perspective is the annual Edelman Trust Barometer, a survey of more than 30,000 people globally. The results from the 2020 survey showed a vast majority (92% of respondents) want companies to speak out on issues that impact society, and 74% think CEOs should take the lead. These results were published in January last year before the pandemic and the other unsettling events of the year took place, which would have further cemented these points of view.
Clearly leaders cannot sit on the sidelines when it comes to considering what role they and their companies should play in supporting the greater good. To do so will put you on your back foot with many stakeholders who expect – and may well demand – for you to become engaged. To remain silent on important issues could lead to customer boycotts of your products, top talent refusing to work for you, or worse yet, a widespread diminishing of trust in your brand that could threaten your company's survival.
The challenge comes in knowing what, when and how to take appropriate action while balancing the need for profits that your business must have to grow and thrive.
"Purpose + profits" will be the one-two punch that determines who wins the competition for talent, investors and supportive communities. Here are some suggestions for how you can strengthen your company's responsiveness to social change while still delivering results to your bottom line.
As you continue planning for 2024 and beyond, I hope these three trends challenge your thinking and bring new opportunities for you to lead with vision as well as confidence.