2019.10.16 / Viewpoint

Leadership and Creativity (1)

CEOs embracing innovation

The "IBM 2017 Global Senior Executive Survey Report" shows that more and more senior executives seek to enhance corporate value through innovation, whether it is assistance from external groups or cross-department collaborative innovation within the enterprise, almost all CEOs are adjusting their business models. Two-thirds of CEOs are implementing large-scale innovations, and more than 40% of CEOs are changing their business operation models to improve their collaboration. 68% of CEOs predict that the focus of the enterprise will shift from "products" to "customer experience."

Another IBM survey report "Experience Revolution" further pointed out that there is a serious cognitive disconnection between the consumers’ problems recognized by the company's management and the problems that the consumers are most concerned about. In order to eliminate such differences between the two sides, the company needs to continuously use design thinking to truly understand and verify consumer needs , in order to effectively connect with consumers.

Like Apple, Google, and other market leaders, the ability to innovate continuously is critical to business success. But the frustrating fact is that most innovation efforts in many companies have failed. According to the "KPMG Global CEO Prospect Survey 2019" released by KPMG Global Headquarters, only 56% of CEOs said that the "failing fast" innovation culture already exists in the enterprise (failing fast means that they can treat those unsuccessful things with a positive attitude and learn quickly from failure). So how can leaders increase the possibility of innovation success in the enterprise? 84% of CEOs said they are still seeking help to change the leadership team's thinking and enhance executives' innovation ability to break through the status quo.

Leaders need Creativity

The three indispensable leadership traits of today's businesses are creativity, integrity and global thinking. Creativity especially is the most important leadership trait. Leaders must be creative in order to encourage innovative thinking within the company and fully implement change. In an increasingly complex working environment, leaders need to make good use of different communication and leadership methods, talk to customers and employees, and have the courage to try innovative business models.

Kai-fu Lee, chairman of the Sinnovation ventures, also pointed out in the era of artificial intelligence, there are only two things left for humanity in the future:

• "Creativity" includes the creativity of science, literature, and art, and the ability to tell stories.
• "Care work" must put "love" into work and use "empathy" to make more people believe in your brand and products through communication and trust between people.

In the VUCA era full of variables and uncertainties, leaders must act different than previous leadership in order to stand out, because competitive field of enterprises is rapidly reshaping, whether it is facing the application of innovative technologies, business model changes or workforce transformation. On business topic, business leaders must first have an open mind to correspond to a complex, volatile and uncertain environment. Successful leaders need to be able to embrace change, embrace emerging technologies, get used to breaking existing business models, be good at building new strategic partnerships, agilely adjust M & A strategies, and strive to continuously improve and upgrade employees’ skills.

Leaders' personal abilities are one of the most critical resources required for companies to manage innovative process integration and success. Clayton Christensen, a well-known Harvard business school professor, said that for an innovative project to truly start and mature, business leaders must personally manage the project. He pointed out that leaders seeking to create the next wave of disruptive growth, companies must undertake three jobs:

• Short-term task: to guide the interface between the innovative growth business and the mainstream business, to determine which resources and processes of the company should be allocated to the innovative business, and which should not.
• Long-term responsibility: Lead a creation process called "destructive growth engine", so that this process can be repeatedly practiced, and successfully grow business.
• Everlasting responsibility: be aware of changes in the environment, and constantly teach team partners to recognize these signs, and continue to make agile adjustments within the organization.