Business leaders have faced many challenges in the last few years. The last few years have been challenging for business leaders.
Leaders face a great deal of pressure to improve productivity and efficiency by implementing AI solutions, while also addressing the challenges posed by the technology in terms of human resources, security and culture.
In addition, the societal expectations are changing. DE&I initiatives can be a great way for companies to create more inclusive cultures, however, if they are not properly implemented, these programs could backfire. The expectations of employees have changed, which further complicates the situation.
Many companies want to bring employees back to the office to get them back to their pre-pandemic work habits, but they run into resistance from employees who claim that they can be more productive remotely.
Many of these challenges are unprecedented and have left many leaders with uncertainty.
It is not just a problem for today’s leaders. According to DDI Global Leadership Forecast research, half of CEOs place developing the next generation as a priority. Only 12% of businesses are confident about their leadership pipelines, indicating a general lack of preparedness. The current leaders are tired, and the younger generation has disengaged. This creates a leadership gap that is precarious.
The two factors that fuel the confidence crisis in leadership
Why are leaders today struggling to gain confidence? This issue is driven by two main factors.
Firstly, both leaders and employees suffer from a sense of purposelessness. Potential leaders are disengaged from their work, and this reduces their motivation and willingness to take on leadership roles. This is a serious concern for businesses who rely on employees with high potential to fill leadership roles in the future. Employees who lack a sense purpose are less likely to accept greater responsibility and this can lead to stagnation of the leadership pipeline.
Second, there is a general lack of trust among leaders and their team members. DDI’s study shows that only 32% of senior leaders in an organisation trust their managers and less than half (46%) trust their direct supervisors to do the right things. This erosion of trust reduces engagement and team dynamics, making it harder to create the collaborative environment that is needed for success.
The Confidence Lessons leaders can learn from elite athletes
To help leaders gain confidence, it is helpful to take inspiration from top athletes. Like business leaders, athletes also experience dips in their confidence when things don’t go according to plan or they feel unprepared. To overcome these obstacles and achieve success, athletes rely on communication, teamwork and a shared purpose.
In order to explore this analogy, I spoke with coaches at British Rowing. I wondered if there are parallels between leadership teams and rowing teams. What can rowing coaches tell business leaders about unlocking the potential of their teams and achieving extraordinary outcomes?
First, it is important to regain purpose. The ability of a coach to bring a team together around a common goal is crucial to success in rowing. If athletes know the reason behind their work, then they will be more motivated to train and sync up with their teammates in races. Business leaders should also clearly communicate their organization’s purpose. This purpose should be the driving force behind a team, even in the face of daunting challenges.
Leaders must ensure that this practice of communicating a sense of purpose is ingrained in their culture. It could be that teams or the whole company set aside regular times to get together and align personal goals with team objectives. This encourages camaraderie, mutual accountability and a motivated and cohesive workforce.
Enhancing Team Dynamics
Cohesive teamwork, along with a strong sense of purpose is crucial for the success of any organization. Team members who have a clear idea of their roles reduce confusion and minimize potential conflicts. Clarity allows people to focus on their roles, which leads to an increase in productivity. When everyone is aligned with their roles and company purpose, members of the team can see how they contribute to the success of the organization.
Effective leadership also requires the creation of a psychologically secure environment. Great leaders are distinguished by their emotional intelligence. Leaders need to be able to manage and understand emotions, both their own and their team’s. Long-term success depends on the ability of leaders to foster meaningful interactions, create a culture that is open and honest and encourage communication.
Leaders should focus on developing strong and trusting relationships with their teams. Team dynamics can be strengthened by regularly checking in with members, sharing personal stories and making sure everyone is heard. Leaders can foster innovation and creativity by creating an environment in which people feel comfortable sharing their ideas, and even mistakes. According to DDI research, leaders who have high levels of trust in their senior leaders were three times more likely than those working in organisations with low levels of trust to come up with novel ideas.
Building Resistance
Confidence can be developed over years, but it can also be quickly lost after a failure or setback. To maintain confidence, it is important to build resilience. Leaders must accept that not everything will go according to plan. Leaders who are most effective focus on the future rather than dwell on past mistakes when they make mistakes. The “what next?” attitude helps them remain resilient and solution-focused in the face challenges.
Leaders can rebuild their confidence by cultivating emotional intelligence and psychological safety. They can also guide their team through turbulent times. Business leaders, like elite athletes, must be equipped with the tools to remain resilient and confident, even when faced with uncertainty. This will help them not only overcome current challenges, but also set them on the path to long-term success.
Matt is the author of Leaders Ready Now – Accelerating growth in a faster world (2016), and coauthor of its predecessor Grow Your Own Leaders, which won an award. Both books have had a profound influence on leaders of all levels over more than 20 years.
He has advised CEOs, senior team members, boards and executives in more than 20 different countries. He is a researcher and product designer who also practices.
He is currently Senior Vice President for Leadership Insights at DDI. He has worked with leaders from around the globe to cultivate self-awareness and accelerate the development of their leadership skills. These collaborations led him to become a keynote speaker, an author and a contributor to some of the most effective leadership development approaches today.
