Three skills for leaders to master
In practice, that means modern leadership requires new capabilities. Russell singles out three areas where there is a particular urgency for CEOs and their C-suite peers to upskill.
“First, proximity to the business’s work is now essential,” she says. “If you rely on second-hand reports and updates, you’re not really going to understand how the business is transforming.”
Proximity could be seen as the “flying low” element of the challenge. In established businesses with tried and tested practices, the C-suite needs to form a clear picture of how the business operates, despite not directly executing operational tasks or working on the front line. They trust their workforce to execute effectively. But developing businesses are in a constant state of innovative flux, including experimentation with emerging technologies such as AI. Their leaders must be more than part of the conversation; they must steer the narrative. Otherwise, they risk becoming remote figures who are out of touch with their businesses.
Russell’s second key capability is more akin to “flying high.” Modern leaders are transitioning from map readers to compass bearers, she argues. “Historically, leaders relied on pattern recognition. As their careers advanced, they could apply lessons learned in previous situations to each new challenge,” she explains. “But in this new world, those maps are no longer relevant. Instead, leaders must take constant compass readings to set their direction.”
It’s a shift that means moving away from “this is what worked before” to “this is what might work this time.” Leaders must systematically set out a hypothesis, test it, and then recalibrate as required. “Leaders will need to become more comfortable with failure,” Russell points out. “That may be difficult [for them] because ​​th​eir careers have been built​ on being right.”
That feeds through to Russell’s third goal for modern leaders. Armed with greater insight about their changing organizations and with a newfound willingness to experiment and iterate, they must review how they build their teams.
“Increasingly, businesses are going to rely on hybrid teams of human beings and AI agents,” she says. Leaders will face the challenge of which tasks to assign to AI and which to their human colleagues, as well as the emotional effect this may have on the latter.