Seeking New Leadership
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The document discusses the need for new leadership to tackle various challenges in the 2020s, including climate change, economic inequality, and the implications of the fourth industrial revolution. It highlights the importance of responsible leadership that incorporates stakeholder inclusion, innovation, and building trust, emphasizing the need for companies to align their operations with societal outcomes. The report serves as the first stage in a multi-year initiative to define responsible leadership and aid organizations in fostering conducive environments for its development.
Seeking New Leadership
- 1. Seeking New Leadership The Forum of Young Global Leaders and the Global Shapers Community In collaboration with Accenture Responsible Leadership for a Sustainable & Equitable World
- 2. Leaders face a range of challenges in the 2020s The climate emergency Current trends point to global temperatures rising by between 2.9°C and 3.4°C by 2100.1 Global economic fragility 10% of the world’s population enjoys more than 50% of the world’s income.2 The Fourth Industrial Revolution The opportunities of emerging technologies have yet to be fully realized, and the risks fully managed. 1 World Meteorological Organization under the auspices of the Science Advisory Group of the UN Climate Action Summit, “United in Science”, 2019 2 World Inequality Lab, “World Inequality Database”, 2019. 3 Accenture Research Investment in emerging technologies doubled 2017- 2019, but only 18% of organizations planned to significantly increase spending on reskilling.3 People being left behind
- 3. New technologies are forcing a rethink “Emerging technologies require companies to rethink what it means to be a responsible business because they can have negative side-effects” Source: Accenture Responsible Business survey of company executives, April 2019. Sample size 2,298; Accenture Responsible Business survey of stakeholders, July 2019. Sample size: 2,971. Stakeholders are more convinced than business leaders that the negative impacts of technology require a new approach to responsible business.
- 4. New and louder voices are becoming influential 70% of executives recognize that the influence of customers and users is growing. 76% of CEOs say citizen trust will be critical to business competitiveness in their industry in the next five years. 85% of employees and SME leaders would take action if their employer or a larger business asked them to do something against their values. Sources: UNGC-Accenture CEO Study on Sustainability, 2019. Sample size: 878 Accenture Responsible Business Survey, 2019. Sample size: 2,241
- 5. Leaders are responding 94% of CEOs feel a personal responsibility for ensuring their company has a core purpose and role in society. 61% of emerging leaders say business models should only be pursued that generate improved societal outcomes and profitable growth and at the same time. Sources: UNGC-Accenture CEO Study on Sustainability, 2019. Sample size: 878 Annual survey of World Economic Forum Young Global Leaders and Global Shapers, November 2019. Sample size: 1,535 Global Shapers and 295 YGLs
- 6. Leaders must deliver on three fronts: • Organizational performance, measured most often by short-term earnings or their equivalent. • Continuous innovation, the seedbed for longer-term growth, often propelled by emerging technology. • Sustainability & trust, earned by an unyielding attentiveness to the interests of all stakeholders.
- 7. Delivering on all three is not just possible, it’s optimal Companies that combine top-tier innovation with top-tier sustainability & trust outperform their industry peers on operational and market metrics. Their estimated operating profits are 3.1% higher on average. Source: Accenture Research. Note: Annual premium of operating margin over industry peer-set average.
- 8. Source: Accenture Research. Based on complementary surveys of more than 5,000 executives, stakeholders and Young Global Leaders and Global Shapers. The Five Elements of Responsible Leadership The qualities that help leadership teams pursue value and honour values.
- 9. Stakeholder Inclusion. Safeguarding trust and positive impact for all by standing in the shoes of diverse stakeholders when making decisions, and fostering an inclusive environment where diverse individuals have a voice and feel they belong. Emotion & Intuition. Unlocking commitment and creativity by being truly human, showing compassion, humility and openness. Mission & Purpose. Advancing common goals by inspiring a shared vision of sustainable prosperity for the organization and its stakeholders. Technology & Innovation. Creating new organizational and societal value by innovating responsibly with emerging technology. Intellect & Insight. Finding ever-improving paths to success by embracing continuous learning and knowledge exchange. The Five Elements of Responsible Leadership
- 10. Source: Accenture Research: Responsible Business survey of company executives, April 2019. Sample size: 2,298; Accenture Responsible Business survey of stakeholders, July 2019. Sample size: 2,971. Question: “Which personal qualities / characteristics are most important for executives in charge of ensuring their companies behave responsibly?” Business leaders and stakeholders value the Five Elements differently Company executives emphasize Technology & Innovation. Stakeholders have greater interest in Emotion & Intuition and Mission & Purpose.
- 11. Emerging leaders value other qualities Source: As before plus Annual survey of World Economic Forum Young Global Leaders and Global Shapers, November 2019. Sample size: 1,535 Global Shapers and 295 YGLs. Respondents were asked “How important are the following skills for a responsible leader?” and were invited to rank from among a list of 16 skills. Members of the Forum of Young Global Leaders and the Global Shapers Community gave the highest priority to Stakeholder Inclusion, Mission & Purpose and Intellect & Insight.
- 12. Multi-generational leadership teams will be part of the solution Gen Z emphasize Stakeholder Inclusion much more than Gen Y. Intellect & Insight is more important to Gen Y than to Gen Z. Source: Accenture Research: Mass Online Focus Groups, November 2019. Sample size 352. Question: “Overall, thinking as an advisor to the individual tasked with making the final decision, which one of the following is most critical to the approach would you take? Chart shows average split of leadership attributes respondents feel are most critical when making decisions as responsible leaders.
- 13. Three questions for organizations developing Responsible Leadership 1. Who are your stakeholders. How well do you really know them? Do they include non-traditional and diverse interests? How important are they to your organization? Do you understand your impact on them? 2. Does your leadership have a Five Elements profile? Does your team draw upon these attributes, skills and mindsets? Are the they present in how you grow your leadership teams? 3. What do you need to scale responsible leadership qualities throughout your organization? What opportunities and burning platforms can accelerate progress? What tools and support can spur progress?
- 14. www.accenture.com/responsible-leadership https://www.younggloballeaders.org/seeking- new-leadership Copyright © 2020 The Forum of Young Global Leaders, The Global Shapers Community and Accenture. All rights reserved. For the full report, please visit: The study represents the first stage of a multi-year initiative between the Forum of Young Global Leaders and the Global Shapers Community, in collaboration with Accenture, to create a new framework for responsible leadership and to help organizations cultivate environments in which it can flourish.