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How To Increase The Bottom Line: Become A CEO Who Knows Themselves.

Only a couple of decades ago a leader was a king, someone we admired and turned to for all the answers. Yes, they had advisors and the more powerful they got the more they were able to surround themselves with top talent, but in any case our expectations of them were different.

The leaders we want or better yet, need today are masters of all the right executive skills (financial, operations, systems etc), and also mobilisers of their employees to help them execute their vision. 

Today’s leaders must face complex issues such as digital transformation, cybersecurity, climate change, lack of talent and diversity, as well as a search for purpose coming from their employees.

Even the most brilliant executive with the knowledge, experience and personality to tackle the role, can’t deal with all these issues alone, and more than ever needs others to succeed. 

While it remains absolutely crucial for an executive to think about strategy, execution and metrics, a contemporary leader is also able to connect with themselves and employees to boost the bottom line.

Why?

First, because it creates value.

When human capital is managed the right away, the results translate straight into the bottom line.  

Second, because it’s necessary.

Changing environment is calling for a more human approach to leadership, and employees more than ever need their leaders to inspire them and give them a sense of purpose.

How do you as a leader, get better at inspiring others?

It’s a two step leadership process.

In the first stage, you get to know yourself first, who you are and what you stand for so you can lead yourself better. The best of leaders learn to become more self-aware and self-reflective.

Senior Partners at McKinsey (2024) divided the ‘inside’ components from coaching some of the world’s best leaders into:

  1. Humility
  2. Confidence
  3. Selflessness
  4. Vulnerability
  5. Resilience
  6. Versatility

In the second stage, you learn to lead from inside-out, leading others with a sense of purpose and their willingness to engage in a change. The components of the ‘outside’ out are:

  1. Embed purpose
  2. Inspire boldness
  3. Empower people
  4. Encourage truth telling
  5. Adopt fearless learning
  6. Instil empathy.

Source:

The Journey of Leadership. How CEOs Learn To The Lead From Inside Out. Maor Dana, Kaas Hans-Werner, Strovnik Kurt, Srinivasan Ramesh. Senior Partner, McKinsey. 2024. Portfolio | Penguin.

Image:

Jeremy Irons, Margin Call (2011).

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