BUSINESSWEEK ONLINE : AUGUST 28, 2000 ISSUE
THE 21ST CENTURY CORPORATION -- THE NEW LEADERSHIP Wanted: Eclectic Visionary with a Sense of Humor Companies will need group-oriented leaders who can thrive in the midst of uncertainty Managers looking to get ahead in the 21st century will need a completely different set of tools than their counterparts in the last century. Forget about the well-pressed grey flannel suit and a passion for issuing orders. The next generation of corporate leaders will need the charm of a debutante, the flexibility of a gymnast, and the quickness of a panther. A few foreign languages and a keen understanding of technology wouldn't hurt, either. With change the only constant in the new corporation, managers will have to be far more entrepreneurial. Anyone inclined to wait for orders or follow established procedures will simply be lost. While the Industrial Age put a premium on machines and proprietary systems, the Information Age relies on the ideas and skills that reside in workers' heads. With technology, products, markets, and customers all in flux, the corporation will need group-oriented leaders who can thrive amid uncertainty. So what will it take to cut it in the 21st century corporation? The core qualities of intelligence, passion, and an ability to motivate will, of course, remain fundamental for future leaders. But managers in the new millennium will also need humor, spontaneity, a team orientation, and genuine concern for the intangible needs of employees. The ability to acquire knowledge will be less important than the ability to obtain, distribute, and act on that knowledge quickly. The new executives have not only to make fast decisions in a tough environment, they must also motivate and empower their staff to follow suit. Although disciplines such as marketing and finance will remain key, there will be more value placed on a liberal arts education that encourages lateral thinking. Also rising in value is an eclectic background. The corporation will be guided by people who know how to harness the energies and talents of their team while keeping their egos in check. The primary force reshaping the workplace is speed. Conditions can change in an instant, rendering even quarterly strategies obsolete. Already, ''leaders are in a state of vertigo,'' says Warren Bennis, professor of business administration at the University of Southern California. Winners will accept constant change, making themselves adaptable to whatever comes their way. Business plans may change at a moment's notice. LOOSER GRIP. The corporation itself will depend more on a complex and ever-shifting stream of alliances, partnerships, and customer relationships--part of the reason for the constant change. As a result, leaders will rely more than ever on the intelligence and resourcefulness of their staff. Rather than tighten the reins of control, smart leaders will want to loosen their grip to create more responsive organizations. That means taking more pains to create a workplace that satisfies the best people. Hierarchies will flatten out while formal job functions will give way to more fluid organizations. As workers throughout the enterprise gain power, the new corporate leaders must be open, freewheeling, and comfortable with unpolished, imperfect ideas. Casting the CEO as a visionary nestled in a distant corner office simply won't cut it anymore. They need to formulate and proselytize their vision in every part of the company. Daniel A. Carp, CEO of Eastman Kodak Co., already has seen that change. Thirty years ago, he says, ''by the time the idea went in to the CEO, it had a yellow ribbon tied around it.'' Now, Carp gets e-mails from people on the plant floor, updating him or making suggestions--a practice he encourages. That type of feedback would be much less likely with a tyrant in place. Managers need to build an entirely new relationship with the people who work for them. Says Bruce A. Pasternick, managing partner for Booz Allen & Hamilton Inc.'s Organization and Strategic Leadership Center: ''The glorification of the individual is over.'' Technology and a shrinking workforce will continue to empower individuals to act as nomadic free agents, selling their services to the highest bidder. Young J. Shin, chief technology officer at the education Web site Embark.com, already notices that young workers ''don't want to be managed as serfs.'' They demand guidance, respect, and a chance to add value to the organization--or they head for the door. They'll also need the opportunity to fail. To nurture talent, managers will need to develop a greater tolerance for risk--and failure. Bill Nussey, president and CEO of New Economy consultancy iXL Enterprises Inc., actually wants his people to ''fail fast'' so that they don't fear screwing up. He has a soft spot for people with a broad-based or entrepreneurial background. They're not scared to try new things and learn to think on their feet. LISTENERS WANTED. To acquire all these skills, managers will come from more varied educational backgrounds. When Thomas L. Harrison tries to spot future leaders, he looks for training in psychology. ''Being able to read between the lines helps to really manage people better,'' says Harrison, chief executive of Diversified Agency Services at ad conglomerate Omnicom Group Inc. A sensitivity to foreign traditions, and languages is another key skill. Not only must businesses woo customers and partners abroad, they will recruit and outsource overseas. In every generation, great leaders always learn to adapt to their environment in order to thrive. But those powers will increasingly be challenged as the pace of change accelerates. In an era where highly skilled workers will be at a premium, listening skills and a passion for helping people could well become the hallmarks of a successful manager. John J. Dooner Jr., president and COO of New York ad/marketing giant Interpublic Group of Cos., even demands a sense of humor. ''Without it,'' he says, ''your sense of perspective is out of whack.'' Faced with a fickle workforce and customer base, winners will know the value of a good laugh. By DIANE BRADY With bureau reports _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP					RELATED ITEMS The New Leadership The Boss in the Web Age TABLE: The Boss in the Web Age TABLE: Now and Then: How CEOs Will Change over the Next 20 Years See the World, Erase Its Borders TABLE: Going Global: The Growing Importance of Worldwide Markets Up from Bean Counter TABLE: Desired Skills An Executive Whose Time Has Gone From Gearhead to Grand High Pooh-Bah TABLE: Not Just Any CIO Mining a Company's Mother Lode of Talent TABLE: What Does a Knowledge Manager Do for a Living? Hey, Are You Listening to Me? TABLE: What It Will Take to Keep Me as a Customer Perspectives: Getting Rid of Guesswork Wanted: Eclectic Visionary with a Sense of Humor TABLE: A Resume for the 21st Century Write Your Own Title Essential Reading for Modern Managers ONLINE ORIGINAL: Q&A with McKinsey's Lowell Bryan ONLINE ORIGINAL: Q&A with INSEAD's Subramanian Rangan ONLINE ORIGINAL: Custom-Designing the Global Corporation INTERACT E-Mail to Business Week Online

Copyright 2000-2009, by The McGraw-Hill Companies Inc. All rights reserved. Terms of Use   Privacy Notice