Decades ago, as a teenager, I completed my final driver’s training class, eager to put my new skills to use. This rite of passage marked my readiness to navigate the open roads with my permit and a parent by my side. My father met me outside the building in his Ford Pinto wagon (yes, I’m dating myself). He moved to the passenger seat and told me to drive us home. My excitement quickly faded when I realized the car was a stick shift, while I had only learned on an automatic. Undeterred, my father explained how to use the clutch and coached me through every jerky, stalled moment on our way home.
I was more frustrated than he was, but over time, I learned to shift gears smoothly, moving from stalling the vehicle with each clutch press to skillfully coordinating the accelerator and clutch. Eventually, I could shift quickly and effortlessly, reaching my destination with minimal thought. That car became my primary mode of transportation for the next 18 months. Even though I haven’t owned a manual transmission since, I can still drive one when needed. Sometimes I even drive one just for fun.
We often live our lives in “automatic transmission” mode, moving through routines without much thought. I regularly arrive at my destination only to realize I don’t remember the details of the drive, unless road construction or unexpected conditions force me to pay close attention, disrupting my desire for a seamless journey.
Yet there are always areas in life where we must shift gears intentionally. We can’t always rely on speed or habit. Sometimes, we need to pause and be purposeful. Our goals may remain the same, but the methods to achieve them must evolve.
This is the challenge for leaders in the new year: setting aside old ways of operating and adapting to new systems. The methods that we once used to fulfill our purpose or achieve our goals may no longer be effective.
Organizational shifts for leadership
As we guide our organizations, environmental shifts manifest in many ways:
- New leadership tasked with orchestrating business improvements.
- Refocusing on business models to improve profitability.
- Workforce changes to meet skill demands and integrate AI.
- Declining employee engagement in response to organizational decisions.
- Changes in customer demographics and preferences.
- Evolving cost drivers for goods and services in the supply chain.
- New alliances with external stakeholders influencing business decisions.
- Unpredictable perceptions from customers, communities, and governments.
- Sudden catastrophic environmental events (e.g., pandemics, wars and unrest, shipping interruptions).
Leaders must recognize they are operating in a transformed environment. Thoughtful consideration of the shifts ahead—and the risks involved—is essential.
Practicing the art of shifting gears
When you press the clutch to shift, consider these leadership practices:
Clarify your purpose
An organization’s values are evident through its actions. When stated values don’t align with behaviors, employees, customers, communities, and shareholders will notice. Criticism comes quickly, so leaders must carefully consider what they’re doing and why. They must be prepared to explain their decisions. Extended risk assessments are crucial before moving forward.
Increase your agility
To move quickly and easily, you must exercise flexibility. In business, this means planning for a variety of scenarios, including those once considered unlikely. Assume that unexpected events will occur and develop strategies to address them. Regularly meet with your core leadership team to make a list of unprecedented situations and begin planning for how you’ll address them when, not if they arise.
Monitor your speed
Sometimes, moving slowly at first enables greater speed later. Resist the pressure to make decisions prematurely. “Idling in the parking lot” may be necessary until the path forward is clear. The first to move may become a target and encounter obstacles that others can avoid.
Adapting for the future
Leaders must continually adapt to a rapidly evolving world, thoughtfully evaluating the shifts necessary for success. This demands a growth mindset, prioritizing ongoing learning and curiosity. Recognize that mistakes are an inevitable part of progress. Embrace experimentation and foster a culture of continuous improvement. Given recent history, it is clear that the need for change will only accelerate, making it essential for leaders to continually elevate their skills.
Uncertainty requires leaders to rethink traditional tools and strategies. For advice on leading when the path ahead is unclear, see this guide.
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