New Leadership, New Learning, New Work?

New Leadership, New Learning, New Work?

May 5, 2023 – For a long time, the topics of New Work and Leadership were solely considered human resources issues. However, it is increasingly becoming apparent that companies must address them because their environment and markets are undergoing a fundamental change.

 For several years now, there has been a lively debate about the topic of "New Work" not only in companies but also in society – among other things, because a generational shift is taking place within organizations: The so-called Baby Boomers are increasingly leaving the workplace, while members of the so-called Generation Y and Z are stepping in to take their places or even taking over the reins in some cases.

 These "digital natives," meaning both women and men who grew up with the Internet, smartphones, and social media, often have different wishes and expectations regarding their work than their older colleagues. Companies must respond to these changes, whether they want to or not – also due to the shortage of skilled professionals and leaders.

COVID-19 showed: Other forms of collaboration and learning are possible

A catalyst for this development was the COVID-19 pandemic. Among other things, it necessitated changes in collaboration due to existing contact restrictions, such as increased remote work coupled with enhanced virtual cooperation and communication. Collective learning also increasingly took place digitally.

This made it evident to employees that alternative forms of (collaborative) work and learning are, if desired, possible. This also changed their expectations. For this reason, many of the changes initially triggered by COVID-19 are now irreversible.

Most companies see it this way. This is reflected in the latest Leadership Trend Barometer from the Institute for Leadership Culture in the Digital Age (IFIDZ). In this online survey conducted in early 2023, 177 leaders participated. Of them, 75 percent believed that engaging with the topic of New Work is not merely a "nice to have" for companies; rather, due to changing framework conditions, it is a necessity.

Not only the expectations of employees have changed

Notably, only 14 percent of leaders see the engagement with New Work primarily as a reaction of companies to the changed expectations and needs of Generations Y and Z. In their view, the reasons for this are much more complex and profound.

In in-depth personal interviews that IFIDZ conducted with about one-fifth of the survey participants, they repeatedly pointed out that the needs and expectations of their customers have also changed so massively due to the perceived omnipresence of the Internet and social media that work within organizations must be restructured in some cases. This necessity will continue to rise.

The increased use of AI will further raise the need for change and learning

The majority of leaders are convinced of this. In discussions, they repeatedly pointed out that since the general, free use of the Chatbot ChatGPT became available in November 2022, many top decision-makers in companies have only then realized the opportunities for redesigning many processes that artificial intelligence already offers their organizations today. Therefore, they expect:

• The need for change and learning in companies will continue to rise.

• In the future, AI systems will increasingly be utilized in them, and as a result, numerous business processes will also be restructured. And:

• This will significantly change the requirements for many employees, especially in customer-facing areas of the companies.

The topics of New Work, New Learning, and New Leadership are interconnected

Despite these significant changes that many companies or business areas are likely to face in the coming years, 62 percent of the surveyed leaders are convinced that New Work is "primarily a cultural and less of a structural issue." Furthermore, companies need to fundamentally rethink not only their HR policies but also their action and problem-solving strategies due to the advancing digitalization and the challenges they face in a rapidly changing and less predictable VUCA world. The change requirements resulting from this need to be communicated to employees in everyday work. Therefore, for the majority of leaders (72 percent), the topic of New Work is also inseparably linked to the topic of New Leadership.

In general, leaders are convinced that the importance of leadership in companies will continue to rise in the coming years – also because, given the many uncertainties, no one currently knows where the medium- and long-term journey is headed. This perception, they believe, will also change the function of leaders. They are increasingly needed as "meaning-makers" and "relationship managers" in their daily work, providing guidance and support to their employees in a situation where everything seems to be constantly under scrutiny. One of their core tasks is increasingly developing the team spirit within their team in a rapidly changing environment and establishing a trusting relationship with their employees – also enabling them to be willing to follow.

Grant leaders support in New Work and Leadership

What this concretely means for their leadership behavior in daily work, many leaders are currently still extremely uncertain about. They still see themselves largely as seekers, not only in designing the structures for future collaboration within their teams but also in shaping their relationships with their employees.

It is therefore crucial for companies to create forums where leaders can exchange ideas on such forward-looking questions as:

• What changes in collaboration will be necessary in the near future due, among other things, to the increased use of AI and the rapidly changing customer needs in our organization? And:

• What does this mean for my employees and me as a leader?

Because only when leaders have a certain orientation can they provide their employees with the desired support and necessary guidance – and accompany them supportively in their learning processes. Furthermore, they can only set the course for the future in their areas.

Author: Barbara Liebermeister