We now live in a world which has become unimaginably integrated but more unpredictable and veracity of facts is objectively questionable. Nowhere is this felt more than the corporate sphere where decisions must be based on “hard” facts and data; hence decision making, and sustainable growth are more difficult for leaders and directors. At the centre of this discourse therefore is the proposition that for an organisation to be successful under the current global circumstances, a unique mindset must be forged.
The important question then is what type of mindset should drive business managers and directors in boardrooms? Is it a fixed mindset impervious to evolution or growth mindset which constantly adapts, adjusts to changing situations? Kodak, and Nokia have always been the template of multinationals that failed for one reason: fixed mindset of the leadership, who assumed that what had always worked will continue to infinitely.
However, it is always easy to, with hindsight, vilify them; but the reality is, falling into organisational fixed mental complacency is terribly easy. When CEOS and boards become ossified to ideas which challenge their notions of what works; demonstrably uncommitted to defined corporate values which they profess; and incapable or unwilling to admit to fallibility/ limitation, the result is almost always a fixed mindset in management which will only be identifiable in hindsight.
How do we shift mindset? In order to have shift in corporate mindset, one key step which must be taken is to define a resilient strategic intent for the mindset to be manifested. In other words, a growth mindset is not just something to be mouthed-it must be for a definite purpose to which the entire spectrum of the organisation can firmly commit. The intent is the destination for which the growth mindset is required to arrive. Having a growth mindset without a purpose will certainly lead to chaos.
Nonetheless, it is not enough to have defined intent, decisions of the board must be constantly evaluated to ascertain whether they converge with or diverge from the growth mindset and the agreed intent. On an individual level, the CEO and each director must be an avid journalist, detailing her thoughts, questions, concerns, and insights on the direction of the organisation and constantly testing them.
Importantly, a keen sense of awareness of triggers of fixedmindedness is fundamental to overcoming it. Fear of failure or being seen not to have all the answers is a common indicium. The board must be willing and able to say “educate me”-whilst not being lazy. As the industrial and scientific revolutions have shown, growth mindset often underlies the humility to admit limitation in knowledge that drives R&D. Relatedly, a CEO/ board that is growth driven must consciously pay attention to how she reacts when outperformed. True growth mindset does not become resentful when outperformed; rather it learns, unlearns and relearns from the experience. The same approach must be taken when the organisation is faced with challenges-rather than skirt around the issue, it ought to be confronted with the understanding that it is an opportunity.
Therefore, to thrive in volatile, uncertain, complex and ambiguous situations, and develop a growth mindset, there are competencies which leadership of organisations must demonstrate. First, leadership must be nimble in learning, unlearning and relearning knowing that the “trusted-old ways” may not work and even where they do, that such may not align with present needs. This can be achieved by being open to draw from diverse experiences, people and sources; being mindful that the boardroom is not simply about striking off items on the agenda but a collective learning experience.
Second, there must be concerted drive to develop and propagate a shared corporate purpose. This will serve as a beacon, a guiding light for the company in times of uncertainties. For a purpose to be meaningful, it must transcend the ego-bloating affectation of individual directors or empire building aspirations of the CEO. In other words, it must bear a meaning greater than and beyond individuals or the board as a collective, considering the larger society and other stakeholders. This way, the shared purpose can serve as a useful motivator and enhancer of high performance through commitment by management and employees.
Third, building strategic collaborations has always held promise of success. Although not immune to its own peculiar challenges, history is replete with alliances and partnership between individuals, societies, organisations and nations which have transformed the course of humanity in ways unimaginable. Collaboration not only births influences and forces the leadership of companies to change/improve on default thought systems, it opens up the institutional mind to new possibilities for tremendous growth-which ensures not just survival in chaos and uncertainties but also assurance of thriving. At the board level, ideas must be the tradeable commodity being exchanged between directors respecting differences and appreciating divergent perspectives to foster trusted relationships, while at the same time encouraging growth-focused constructive conflict of ideas.
Finally, without question the sort of governance and leadership required in uncertain times must be one imbued with deep confidence and tested resilience. The sort of confidence proposed here is not the ego-driven, “I’m the centre of the universe” type; rather it is confidence built on knowledge, acceptance of limitations, willingness and ability to learn, keen perception of developments, and demonstrable commitment to the corporate purpose. Resilience must be both individuated and systemic. A leader who as an individual is resilient, but managing a company not built to withstand systemic shocks will be swimming against the tide. The converse is also true of an organisation structured to withstand negative externalities may flounder in the hands of a leader with no understanding of how to use the tools at her disposal.
