The leadership edge: balancing control and innovation
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The leadership edge: balancing control and innovation

It’s time to consider new approaches to create results in a volatile business landscape

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Gianfranco Di Maira, Partner and Senior Vice-President at BTS and Managing Director for Southeast Asia.
Gianfranco Di Maira, Partner and Senior Vice-President at BTS and Managing Director for Southeast Asia.

More than ever, leaders are constantly grappling with the balance between control and the many external factors that influence their organisations. According to research by Goldman Sachs, a staggering 57% of business outcomes are driven by external factors — macroeconomics, industry trends, competitive dynamics — over which we have little to no control. This leaves only 43% of the determinants of our results within our grasp.

This reality poses a significant challenge for business leaders. It underscores the need for stringent management discipline and strategic agility. In an era characterised by brittleness, anxiety, nonlinearity and incomprehensibility (BANI), how do we effectively manage the 43% that’s within our control?

Leaders and organisations must adopt a high-performing approach, championing robust management, business and leadership disciplines. The onus is on us to continuously create environments that drive results, even as we navigate through external uncertainties. This responsibility amplifies the pressure on leadership to foster the right conditions for success.

Let’s delve deeper into what drives organisational value. The business model and company culture are pivotal. Successful organisations seamlessly integrate strategy with culture — two sides of the same coin. This integration is not just about having a clear strategy pyramid or a well-defined culture pyramid; it’s about ensuring they are inextricably linked.

Innovation in Leadership

A provocative thought comes from Gary Hamel, a renowned guru in management innovation, who has highlighted an area where many organisations lag: leadership innovation. Despite the myriad innovations in products, services, operations and business models, the way we lead organisations has seen comparatively little change since the industrial revolution. Traditional command-and-control models, hierarchical structures and rigid specialisations still dominate.

However, the most innovative organisations of the past two decades have thrived on unconventional, often unstructured leadership models. These organisations delegate leadership deeper within their ranks, fostering a culture where everyone is empowered to lead and innovate.

Practical Implications for Leaders

For leaders, especially in for-profit organisations, the question is: how do we create results amid these constraints and complexities? Here are a few practical takeaways:

1. Embrace management discipline: Be rigorous in how you manage your business. This includes having a clear strategy, robust performance metrics and a keen focus on execution.

2. Foster a strong culture: Develop a culture that aligns with your strategic goals. This includes promoting psychological safety, encouraging debate and embracing constructive conflict to drive better decision-making.

3. Innovate leadership: Challenge traditional leadership models. Empower your teams to take ownership and lead from within. This decentralised approach can drive agility and responsiveness.

4. Encourage entrepreneurial mindsets: Cultivate a culture where everyone feels responsible for the organisation’s success. This includes fostering an entrepreneurial spirit at every level, encouraging innovation and rewarding initiative.

The Thai Context: A Cultural Reflection

In Thailand, businesses often reflect a hierarchical culture with a strong respect for authority. This can sometimes stifle debate and innovation. For Thai business leaders, the challenge is to respect the cultural context while fostering an environment of transparency and constructive confrontation.

Leaders need to be more open and support a culture that creates psychological safety for all employees to share and learn. This approach not only enhances decision-making but also drives better results.

As leaders, we must navigate the complexities of external uncertainties while maximising the factors within our control. This requires a blend of disciplined management, strategic clarity and a strong, aligned culture. By fostering an environment of psychological safety and empowering our teams, we can drive our organisations forward in even the most volatile environments.

Gianfranco Di Maira is a Partner and Senior Vice President at BTS, serving as Managing Director Southeast Asia. In his role he consults and supports clients in addressing their business challenges with a focus on the people side of strategy execution, culture and leadership transformations. He has worked on major business and cultural transformations, with a passionate dedication to researching and supporting companies, teams and leaders who excel in their markets. His domains of expertise are Strategy Alignment, Business Acumen, Culture Transformation, Leadership Development, Innovation & Digital Transformation. Top executives and leaders can reach out to him at gianfranco.dimaira@bts.com or via LinkedIn.

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