Understanding the Effects of Overload:
We basically have two different brain processes.
Left-brain process:
Left brain deals with data. It reasons well, try to compare, analyze and decide.
“These are the logical, rational processes at the core of Western Reductionism. Although it has its roots in antiquity, in the work of Aristotle and Plato, its modern application really dates from the age of Enlightenment.”
Right-brain process:
Right brain deals with divergent processes. It tries to unite, to come up with broader picture.
These processes don’t just deal with the opposite of reductionism, they also deal with synthesizing, contextualization and broader vision. These are termed divergent processes, because they seek to join things up rather than separate them.
We are bombarded with information constantly. The number of worldwide e-mail accounts is expected to grow to 5.2 billion by the end of 2018. On average, we check our e-mails at least 20 times a day. So, we are distracted in every 20 minutes and losing more than 20 minutes to get back on track once we are distracted.
We’ve stopped paying attention to anything other than basic headlines and what’s front and centre. One survey showed that millennials were checking their phone 150 times a day
Truth is losing its power against speed.
Speed against truth:
We are getting more used to filtering what we receive since we do not have that much brain power to process all information. Thus we become more:
Frightened
Angry
Distracted
Bored
Intolerant
Impatient
Cynical
Opinionated
Informed (but not always helpfully).
What can leaders do:
According to the book there are some actions leaders can take:
Leaders need to communicate constantly on the goals of the team. They should not let the team divert.
“Leaders need to actively pull in good stories and avoid being sucked in to negative stories and thinking. They need to remind their teams that the world is not always as terrifying as it’s reported to be.”
“Leaders should seek to assess data by value as well as volume. For instance, knowledge of a competitor’s move may mean more than spotting a trend in their own organization.”
Leaders need to look in detail both microscopically and telescopically.
They must asl themselves: “What is required to be better prepared for an uncertain future?”
They must block time slots for them only. Thinking, planning, analyzing without any disruptions.
Understanding the New Types of Economics
Many leaders failed to anticipate events fueled by populism, such as the election of Donald Trump, the Brexit vote, and the outcome of recent elections, among others.
It can be difficult for leaders to accept that much of their knowledge may be outdated. Therefore, the first step for effective leadership is to cultivate a sense of doubt and to avoid overconfident certainty, which is a sign of mediocre leadership.
Fear stalks the economic landscape
People and countries tilt towards insularity, nationalism and protectionism.
Truths are changing, leaders do not know what is really true
“The culmination of 100 years of relentless automation, however, is near-record high levels employment. Interest hikes have made stock markets rise, not fall, so far. The paradoxes of heart and head contribute to uncertainty. This weakens confidence and trust in the global economic system and in the leaders who are running it. Irrational fear and fact live comfortably side by side.”
Debts and inflation are rising
What can leaders do:
Data should not be the only source of truth for leaders. They should also interact with others and gather multiple perspectives through conversations and discussions. Communication and data alone are insufficient. Leaders should pay attention to the overall mood and feelings of others, not just the numbers. Social media can be useful for gathering this type of information.
Leaders should create their own methods for evaluating the economic impact on their team, clients, and constituents, rather than simply repeating government statistics. It is more important to inspire confidence than to rely solely on calculations.
Understanding a New Philosophy
Intelligence has 8 dimensions:
Everyone is so angry and impatient.
Mainstream media and politics make us angry.
Social media also makes us angry.
Internet psychologist John Suler has written about six characteristics of the internet which lead to radical changes in online behaviour:
Anonymity
Invisibility
Stop/start communication
Voices in your head
The imaginary world
No police
What should leaders do:
The leader's role is not to be the smartest person in the room, but rather to make others feel like they are the smartest person in the room. If you are consistently the smartest person in the room, you should seek out a more challenging environment.
It is important for leaders to ensure that team members are familiar with one another. This helps to reduce anger and conflict, as it is easier to be angry with people you do not know. By building a sense of community and encouraging teamwork, leaders can increase the effectiveness of their team. Ignorance and fear often lead to anger, so it is important for leaders to facilitate understanding and trust among team members.
In any meeting the true leader is always the one who facilitates the discussion and searches for the truth. When summing up and providing their view, they should speak last, if at all.
Understanding Geopolitics and Infrastructure
It is commonly believed that the international rule system established after World War II will prevent conflict. However, leaders in the 21st century cannot assume that this will always be the case and must consider factors such as competition for limited resources, increases in defense spending, and the decline in trust in the international rule system.
Defense spending is rising
Conflicts cause migration and migrations cause more conflict
Governments are being torn in two directions. First, they are having to deal with a new nationalism, with its implied threat of isolation and tariff barriers. This comes from an old world of sovereign parliaments and defined boundaries. At the same time, the trend towards internationalism is clear and the global economy is redistributing wealth and economic power at an unprecedented rate, based on ever more open trade. Leaders of all types therefore need to be internationally and geopolitically fluent at the same time as being aware of the pain caused by economic change. This is quite some balancing act.
20th vs 21st century leaders
Understanding Gender:
Only 7 per cent of the FTSE 100 companies have female CEOs. And there is also evidence of a gender pay gap.
Leaders need to push on three values : modernity, aspiration and representation.
Agreeable people are described as being compassionate and polite. It has been observed that these individuals tend to earn less than their less agreeable counterparts for the same job, and that women are more likely to be more agreeable.
Research has shown that women often score higher than men in tests measuring emotional intelligence (EI). EI is an important ability for leaders to possess, and may be essential for success in leadership roles.
We have traditionally assigned certain characteristics as being either masculine or feminine, based on research findings. Achieving equality between masculine and feminine approaches is an important aspect of balanced leadership. However, it would not be optimal if all board directors behaved in a stereotypically masculine manner, regardless of their gender. A company that is biased towards one gender is not efficient. The best solution is to create a balance between logic and emotion, resulting in a blend of "emogic."
The book concludes that:
The attributes and abilities required of a leader in the 20th century are not the same as those needed in the 21st century.
“Recommends that ‘leadership’ become more of a focus than ‘leaders’ themselves. A team defrays risk and shares burden. A single leader increases vulnerability and risk.”
There is no patience to take in complexity or even to read and understand. Attention spans are falling.
Leaders often rely on familiar but outdated models of the macroeconomic environment, even though these models may no longer be accurate or relevant.
“Situational fluency” is a new area of study – the ability to understand and move between multi-dimensional spheres and silos of expertise. This will allow leaders to join the dots across the landscape of reality to create a new global narrative on which a fresh leadership approach can be based.
Leaders need to learn the lessons of the past:
Weak leadership lacks imagination, not analysis
Overconfidence is a problem
The dangers of ‘big is better’ thinking
Lessons from a general
Guard against short-termism, it can destroy everything
Control the information flows, before they control you
They need to prepare for the future:
Culture eats strategy, so lead with values
Lead by value
Failures are more visible and often due to fear
Use trust to kill fear, otherwise it will kill innovation
Serve the widest community
Cultivate inclusivity, it breeds unity
No alternative but to embrace the future – Faith matters
Situational fluency