Uncovering the characteristics it takes to be a leader today
Do digital leaders need to learn new skills?
“Adapting to increasingly digital market environments and taking advantage of digital technologies to improve operations and drive new customer value are important goals for nearly every contemporary business”. This is how the Digital Business Report written by MIT SMR and Deloitte begins, but which skills are needed? Do leaders need to learn ‘new’ practices and skills, or should they return to essential skills?
Coming of age digitally
Joint research between MIT Sloan Management Review and Deloitte, ‘Coming of age digitally’ revealed that, while basic leadership skills will remain, riding the digital revolution will require adding new skills to the ‘leadership manual’.
The study, which is based on a global survey of more than 4,300 managers, executives, and analysts as well as 17 interviews with executives and thought leaders in 28 different business sectors, outlines the characteristics it takes to be a leader in the age of the digital revolution whilst successfully leading your company on the path to achieving its goals.
The key traits of effective digital leadership are; the ability to engage the organization, provide vision and purpose, create conditions for experimentation, empower people to think differently and convince people to go beyond borders. In detail, according to this research, the digital leader must:
- Have a transformative vision, i.e. the ability to anticipate markets and trends;
- Be able to make informed business decisions and solve difficult problems in turbulent times, i.e. embrace change and take risks based on multiple possible future scenarios;
- Understand technology. This is the main competence gap between digital and traditional leaders. In most organizations, digital literacy above middle management is almost non-existent.
The study found that only about a quarter of companies in all industries, with over $1 billion in revenue per year, had three or more board members considered digital technology experts.
However, according to Forbes, leaders should not let the technological change that is happening around them distract them from their goals. Understanding the basics of communication, priority setting, investment and project management are even more important during periods of change. These skills cannot be delegated. They are the foundation of a culture that embraces the potential of digital transformation.
Conclusion
As always, then, the right way is in the middle: A leader today must combine traditional skills with the new skills needed to ride the digital age.
