Traditional leadership styles are showing signs of strain. We were once happy to accept Logan Roy-type super-macho CEOs, but now talent is scarce, and the free VC money has vanished. As business and the wider social context shift, we don’t want to follow leaders resembling General Patton. Instead, we seek leaders who can safely guide us through challenging times by earning our trust rather than exploiting our fear.
Human-centered leadership
The reality is that without capable, human-centered leadership, your best people will leave, and staff churn is becoming a trillion-dollar problem. Newsweek has just reported that 25 percent and 22 percent of Gen Z applicants, respectively, will stay away from companies and industries that have had negative press. Meanwhile, job site Monster has found that for new graduates entering the workforce, 37 percent would quit a job if they don’t like working for their manager/leadership—but 51 percent say having great managers and leaders is the most important aspect of a job.
What’s called for is leaders with the management skills to ensure the work gets done and the people leadership skills to enable every employee to do their best work. The only way to bring these new-style managers online is to cultivate a leadership model that encourages the development of the core relational skills that today’s workplaces require. That’s what the leading U.S.-headquartered data analytics company FICO set out to do. Its ongoing people development work involves crafting experiential journeys to nurture a new breed of leaders better suited for the demands of today’s world.
According to FICO, they firmly believe that leaders play a crucial role in engaging employees and unlocking their full potential. However, they are actively seeking to move away from the model epitomized by Succession character Logan Roy, aiming for a more significant number of individuals who can inspire excellence regardless of whether they hold formal people management responsibilities.
The organization also says it needs such leaders to inspire employees to bring their best selves to work and generate energy and emotional commitment to the success of the overall business. Crucially, they adopt a holistic approach that centers on the power of relationships and continuous learning on the job, encouraging knowledge exchange and growth among all workforce levels.
Coaching and mentoring provide different experiences and insights to leaders
To actualize and implement these transformative ideas, FICO took a proactive approach by leveraging coaching and mentoring through an online people development platform. This platform enabled them to cater to various use cases, from providing fundamental support for people managers to offering personalized mentoring experiences for high-potential leaders. Additionally, FICO designed a specialized and immersive coaching program specifically tailored for exceptional candidates who stand to benefit most from such targeted interventions and support.
Why is there a preference for coaching and mentoring over more conventional leadership development techniques? As with many of the companies we’re working with, the decision to adopt coaching and mentoring stems from evidence that these methods are more effective at driving sustainable behavior change than point-in-time training. Coaching, for instance, accelerates behavior change by holding coachees accountable for the changes they want to make, creating a psychologically safe space for them to explore strengths and opportunities, and helping them apply learnings to their everyday work.
As a result of moving away from the old-school command and control leadership approach, FICO says that it’s seeing increased engagement of team members and successful development and retention of high-potential individuals and people leaders. But how do CHROs at companies using coaching and mentoring work out who would most benefit from such an approach? Rather than viewing leadership development programs as a remediation measure for underperforming individuals, FICO positions them as an investment in an individual’s growth and potential. The selection criteria are based on a combination of quantitative and qualitative factors that identify high-potential candidates who are already exhibiting strong leadership qualities and a genuine desire to participate in the program.
A similar approach is emerging in social news aggregation, content rating, and discussion on Reddit. Reddit believes that creating a home for everyone worldwide begins by ensuring all its employees feel a sense of belonging within the company. To achieve this, Reddit places a strong emphasis on maintaining and strengthening its unique company culture to ensure that employees feel empowered and excited to come to work every day.
This includes continuously adapting and evolving workforce philosophies, programs, and processes to improve Reddit’s work experience. As the company grows and evolves, it recognizes the importance of nurturing emerging leaders who not only drive company growth but also embody Reddit’s core values. Its innovative six-month Key Talent Program is a deliberate endeavor to empower participants with essential relational skills focused on effective people management. The program has resulted in a 38 percent increase in employee retention rates.
Real leadership is complex and nuanced
The results at both Reddit and FICO, where coaching and mentoring are integral parts of leadership development, are encouraging. For instance, 71 percent of those who participated in the Reddit program received exceptional scores on their performance reviews. The retention within this group also surpasses that of non-participants by a substantial 38 percent.
However, despite these successes, both organizations acknowledge that leadership development is an ongoing and evolving process. No single approach can always work for everyone.
Why? Because humans make mistakes, and they work in dynamic, constantly shifting environments. Today’s workplace is complex, multi-generational, and socially highly variegated. 2020’s leadership is a work in progress, and we need to recognize that there can be an element of “two steps forward, one step back” revision of beliefs, attitudes, and responses to HR problems as part of the journey.
Embracing a learning mindset and being open to learning from complex experiences is key to personal and professional growth. So, don’t be intimidated by the articles and posts from individuals you admire who always seem to have the correct answers, as the reality of being a human is far more intricate and nuanced than what is often displayed online. The shift away from the super macho CEO archetype is a positive development. The traditional command-and-control leadership style is giving way to more inclusive and empowering leadership approaches fueled by the power of coaching and mentoring leaders. As organizations evolve, new and better ways of organizing work and inspiring people are emerging to take their place.
