21st Century Business Leaders

In comparing the desired characteristics of future business leaders with the desired characteristics of the past business leaders there are both similarities and differences. Many qualities of effective leadership are seen as being important for yesterday, today and tomorrow. Characteristics like vision, integrity, focus on results and ensuring customer satisfaction which are still alien to Pakistan, are factors that were critical in the past and will be so in the future.

21st Century leaders will be thinking globally, appreciating cultural diversity, demonstrating technological savvy, building partnerships and sharing leadership.

Globalization is a trend that will have a major impact on the leader of the future. In the past, even major companies could focus on their own country or, at most, their own region. Those days are soon going to be over. The trend toward globally connected markets is likely to become even stronger in the future. Not only would leaders need to understand the economic implications of globalization; they will also have to understand the legal and political implications.

Two factors that are seen as making global thinking a key variable for the future are the dramatic projected increases in global trade and integrated global technology. There will be difficulty buying something made in one country because it will almost be impossible to determine what percent of the product is actually made in that country. Future leader will need to spend time in multiple countries to better understand how multi-country trade could help their organizations achieve a competitive advantage. In an environment where competitive pressures are rapidly increasing, producers will have to learn how to manage global production, marketing and sales teams.

New technology is another factor that is going to make global thinking a requirement for future leader. With the use of new technology it will be feasible to export even office and "white collar" work around the world. Computer programmers in Pakistan will communicate with designers in Italy to help develop products that will be manufactured in Indonesia and sold in Brazil. Leaders who are stuck in local thinking will be hard-pressed to compete in a global marketplace. Leaders who can make globalization work in their organization's favor will have a huge competitive advantage.

As the importance of globalization increases, future leaders will also need to appreciate cultural diversity. They will have to understand not only the economic and legal differences, but also the social and behavioral differences that are part of working around the world. Respect for differences in people is one of the most important qualities of a successful global leader. Developing an understanding of other cultures will not be just an obligation, it will be considered as an opportunity.

The appreciation of cultural diversity will need to include both the "big things" and "small things" that make up a unique culture. For example, few Europeans or Americans who work in the Middle East have taken the time to read (much less understand) the Qur’an.

The ability to motivate people in different cultures would become increasingly important. Motivational strategies that are effective in one culture may actually be offensive in another culture. Leaders who can effectively understand, appreciate and motivate colleagues in multiple cultures will become an increasingly valued resource in the future.

Technological savvy will be a key competency for the global leader of the future. It means that every future leader will be a gifted technician or a computer programmer. It also means that leaders will need to understand how the intelligent use of new technology can help their organizations; recruit, develop and maintain a network of technically competent people; know how to make and manage investments in new technology and be positive role models in leading the use of new technology.

New technology would become a critical variable that will directly impact organization's core business. I however feel pity for Pakistani executives who stubbornly think that they are either "too busy" or "too important" to learn the power of new tools. The organizations that have technologically savvy leaders will have a competitive advantage over organizations that did not.

Many of the future leaders will see the management of knowledge workers to be a key factor in their success. Knowledge workers are people who know more about what they are doing that their managers do.

In dealing with knowledge workers old models of leadership will not work. Telling people what to do and how to do it becomes ridiculous. The leader will be more in a mode of asking for input and sharing information. Knowledge workers of the future may well be difficult to keep. They will probably have little organizational loyalty and view themselves as professional "free agents" who will work for the leader who provides the most challenge and opportunity. Skills in hiring and retaining key talent will be a valuable commodity for the leader of the future. Sharing leadership may be one way to help demonstrate this skill.

To successfully prepare for the next millennium, tomorrow's organizations will have to either change the mind-set of many leaders or change their employment status. For leaders who are near retirement, this may not be an issue. For middle-aged leaders who lack the needed new skills this may be a challenge. Leaders will have to learn why the new skills are important. They will have to understand what they need to learn and be shown how they can best learn it.

The "bad news" is that many existing leaders do not see the value of these new competencies. The "good news" is that almost all of the top high-potential future leaders do see the value of these new competencies. Future leaders may be recruited to help mentor and develop present leaders. If future leaders have the wisdom to learn from the experience of present leaders and present leaders have the wisdom to learn new competencies from future leaders, both parties can share leadership in a way that can benefit their organization. Asif J. Mir, Organizational Transformation

21st Century Companies

growth, Organizational leaders agree that versatility and the ability to envision possibilities set a plan of action in the midst of chaos are qualities, which produce success. Organizations need more than members who adapt to changes. More importantly, they need members who can produce changes within the organization. Organizations of 21st century need leaders.

Successful companies have figured out the secret to success in the 21st century - that of process excellence. Future success seems will come to those companies that figure out functional management innovations in the 20th century augmented with process excellence, which places more emphasis on end-customer satisfaction than optimal utilization of company resources.

The 20th century saw organizations embrace functional management concepts that divide the company into functional silos such as product design and management, order management, manufacturing, finance, sales/marketing, warehousing/logistics and customer service/support. This approach saw the growth of many large companies. Functional management concepts help streamline an otherwise chaotic set of activities into logical groups and helped large organizations function effectively. They helped organizations make the transition from an agricultural age to an industrial age.

Since the last decades of the 20th century, computer technology and communications have become cheaper and more powerful by orders of magnitude, in the rendering many of these 20th century functional management approaches obsolete. The 21st century demands a transition from an industrial age to an information age, and a process-excellence approach is the alternative that will augment a functional management approach for optimal organizational performance.

Organizations have started talking about order to cash cycles, viewing the end-to-end demand chain and supply chain from customers’ point of view rather than functional silos such as finance, sales and marketing and manufacturing.

This process excellence view has evolved from companies’ realization that it is an unfair burden on the end customer to have to deal with the companies’ functional silos when doing so adds no additional value to the products or services they buy from the organization. Functional silos are for internal efficiencies of a company. A number of trends dictate that only process excellence combined with functional management will work in the future.

The 21st century has starting out with computers and communications enabling order of magnitude and faster, cheaper execution of business processes, often spanning multiple organizations and even multiple continents. Dell, UPS and FedEx have computer systems that any organization can seamlessly integrate with and provide visibility of processes to end-customers. Here, the emphasis seems to have shifted considerably to one of process excellence rather than functional excellence. In fact, UPS formerly picked up Toshiba laptops that customers want to send back to the company for Warranty repairs. Now UPS finds it can deliver a more efficient and effective process by also doing the repairs in their delivery center.

If I am an end customer of a company that sells me goods or services, I am more impressed by efficient and effective processes that benefit me, rather than how well the functional silos if they perform internally. Process excellence is one of whether the end customer’s expectations are met faster, cheaper and more effectively. Many organizations have started asking the question regarding any activity within a company: why should the customer care? This brings up a process orientation to most activities even if different functional silos within a company perform parts of processes. If an activity does not directly add value to the end customer, process excellence demands that you try to eliminate it or at least make it faster.

Many organizations are starting to make available single points of contact for customers, especially their valued ones. These single points of contact or account managers navigate the internal processes with the functional silos of the company on behalf of the customer within the organization and get things done. After all, why should the customer care about billing and provisioning departments of a telecommunications company? They have placed an order for a new landline and it is the telecom company's responsibility to take the order and deliver the landline. Process excellence is the key here.

Those that have slower process cycles do not stand a chance of competing very effectively in the longer run with nimbler online alternatives. A very heavy process orientation and excellence is the only way the older ways of doing business can right themselves and prepare for the 21st century.

With digitization and automated workflow, people within the company or an outsourcing vendor can perform the same business process without concern about physical location! Digitization and automated workflow have enabled process excellence to be realized at levels not possible before.

Companies such as UPS and FedEx already make it possible for any company's computers integrate with their internal systems effortlessly, eliminating unnecessary and inefficient manual steps between companies. For example, once an order is picked and packed at a company warehouse, the company computers can talk to UPS or FedEx computers and create a delivery order and a tracking number. UPS or FedEx employees will not have to key in all these details again.

General Electric and Motorola have popularized Six Sigma approaches to quality management. Six Sigma and Lean Six Sigma impose a process discipline when applied. These are increasingly being applied outside of manufacturing, where they originated, and being applied to all kinds of business processes like product service and support, healthcare and so on.

The last century contributed functional management as a way to do things more efficiently and effectively within organizations. However advances in technology and innovative new companies have brought process-oriented approaches to doing things that make it easy for an end customer to do business with them. A process orientation and process excellence that augments functional management seems to be the secret to success in the 21st century. Organizations that leverage the latest technological advances and trends in a relentless quest to make business processes more efficient and effective will be the only ones that survive. (www.asifjmir.com)