In changing and unsettling times, dynamic leadership takes centrestage, in business and society. What does that mean and how many leaders can be truly dynamic?
Mikhail Gorbachev, former leader of the former USSR, is widely regarded as a dynamic leader but that is a misguided view, because Gorbachev fails a crucial test to qualify as a great leader. A leader who introduced ‘Perestroika’ (restructuring) and ‘Glasnost’ (openness and transparency in government) and became the toast of global leaders was caught clueless and helpless when the onslaught of circumstances unleashed by his own actions overtook him to this extent that he was ousted from power in an unceremonious fashion.
He completely misread the consequences of his actions which upended an entrenched system and led to the creation of one of the most vile and violent governments in history. A leader who cannot anticipate the most probable outcomes of his actions and is caught unprepared, does not qualify to be called dynamic.
Define and liberate yourself
Let us set the tone for this writing by stating what dynamic means in science. “Dynamics has its origins in the Greek word dynamis, “force, power.” In physics, dynamics is the study of bodies in motion and changes in that motion, and that idea can be applied to other areas as well” (https://www.vocabulary.com/dictionary/dynamics). Clearly, the concept can be transported legitimately to other areas where change, force, friction are all important elements in actions and counteractions.
A change in one place may set in motion a series of changes elsewhere whether you are aware of it are not. Some changes are truly global in character in the sense that they envelope the whole world and not just some specific regions. Telecommunications, computer systems and the internet in the last two decades have been the most dynamic – changing and causing changes, getting themselves changed again and causing changes in a (so far) limitless chain of actions and counteractions.
They have changed not just communication and computer systems but entertainment and security as well beyond anyone’s imagination or expectations. Some business leaders, in India and elsewhere, ‘read’ it correctly and went farther than others, including those who ventured early, belying the first mover advantage . Now, they face the biggest challenge in this part of their business careers in satellite communications, the subject of intense rivalry amongst the leading players.
Current environment
The last two decades have been extremely unsettling in every aspect – in business, society, politics, culture, catching unawares many who are in a position to influence, but looking askance at what is unfolding in front of them. If technology has been the principal factor causing unprecedented changes in business and social behaviour, societal and demographic changes have taken a heavy toll on polity, who have been left clueless to manage dramatically changing expectations of people. It is thus not surprising that the subject of dynamic leaders has engaged the attention of many in the last few years.
Bryta Schulz, writing under ‘Sounding Board’ in LinkedIn, has identified four capabilities of dynamic leaders. Adaptable, Resilient, Empathetic, Visionary (https://www.linkedin.com/pulse/4-capabilities-every-dynamic-leader-needs-sounding-board-labs-inc/). You might not find all the four present in every dynamic leader, certainly not in similar proportions. Schulz’s definition will clearly distinguish between successful managers, even extremely successful managers, from dynamic business leaders.
Let us take innovation. Ceaseless innovation is an absurdity, because every innovation has to recoup its investment, which is contingent on manufacturing or production in sufficient volumes spread over time. Thus the second part involves management of a different character altogether compared to what is needed to drive the first. Organizing production and distribution calls for stability and predictability. One of the positive outcomes of Covid-19 was the recognition of the need for resilient supply chains, which, among other aspects, calls for mathematics and statistics. Both are required for sustained success; it is not either or. A dynamic leader should pay attention to both dimensions.
Seeing and seeing through
One of the decisive changes in most businesses is that the minimum efficient scale has increased which means significant upfront investments. Hence, it is not easy to change course in most businesses except at a huge cost, thus putting a premium on ‘seeing and seeing through’ what the future holds for a business. Easier said than done because this involves understanding how consumers will evolve, what they will accept and reject, how activist groups will react, how political leaders and governments, domestic and foreign, will respond, given the compulsions of electoral politics. Even cursory readings on global warming and fossil fuels will demonstrate the complexities of leadership.
Learn to listen and learn to let go. Peter Drucker used to always that the first step in communication is to listen. Letting go is as crucial because ego can be an obstacle to looking at what you have missed, destroying when they could have created. This means that listening to multiple voices hence has become of paramount importance.
I want to refer here to The Godfather (Part 1), where it was Tom Hagen who turns out right and not Don Corleone, because the Don completely misread the future of ‘the white powder’, whereas Hagen correctly argued that it will make such a lot of money for those engaged in it that they can acquire and buy power and go after the Corleone family and that is exactly what happened. You don’t realise it when you watch the film but think about it now. Will you call the Don a great leader?
The dynamism of an individual is ‘seen’ in the actions they take leading to significant consequences, which leads to a direct question: Were they aware of the consequences that will be set into motion as a direct outcome of their actions? Were they prepared to manage the expected and even unexpected outcomes? If not, can we call them dynamic at all.
Many successful business leaders will not measure up to this standard. However, this is going to be the yardstick by which they will be measured.
