Organisations and Leadership of the Future from the Perspective of Systemic and Human Dynamics

In the previous two sections, we discussed the two main dynamics shaping the organisations and leadership of the future, and in this context, we examined System Waves and Generations. Building on this, our aim was to gain a better understanding of the spirit of the times from the perspectives of systems and employees. When considering the factors that are disrupting the established norms of working life, we can summarise them as follows under two main headings: the pressures imposed by the system and the expectations of employees. 

Systemal pressures:

SUSTAINABILITY: Human sustainability and developments in the field of health 

SUSTAINABILITY: Environmental sustainability (dwindling resources) and developments in environmental technologies

Demographic changes (increased diversity in areas such as migration, ethnicity, age, gender and generations) 

Technology and digitalisation – personalised models (management of big data)

The shift in the balance of power and a new understanding of capitalism

What employees expect:

A sense of belonging to the whole, a search for meaning and the opportunity for self-fulfilment

An ethical approach to work and a sense of corporate citizenship in line with human values

A demand for happiness, authenticity and flexibility, and a desire for different working models

A new approach to leadership characterised by virtue, sincerity, wisdom, a spirit of service and profound spiritual depth

Competencies necessitated by new business models:

Technical competencies capable of meeting the need for the rapid development of technical skill sets (an increase in technology that complements, rather than replaces, humans, due to growing investment in automation and artificial intelligence)

High cognitive flexibility, encompassing problem-solving and critical thinking.

The inclusion of cognitive flexibility (an individual’s ability to adapt to specific situations, switch from one line of thought to another, or approach different problems with multifaceted strategies) amongst the sought-after competency sets.

As can be seen from the summary above, the fifth wave we are currently experiencing, and the new wave to come, are imposing new, learning-oriented organisational structures on companies. Models based on different forms of collaboration (temporary, part-time, independent working models) – which are free from hierarchy, have low levels of bureaucracy, and are formed by problem- and solution-oriented structures created by internal cell models and ‘Gigs’ (a term originating from the music industry, used to describe musicians who take on short-term gigs and perform on stage. a new economic model created by freelance workers) are beginning to come to the fore in today’s organisational structures. Partly due to the impact of the pandemic, flexible working models have become one of the preferred options for companies, as opposed to the traditional office-based working system. Research indicates that structures where individuals leave the traditional workplace to contribute to organisations or projects from outside the organisation are on the rise worldwide. Alongside this growth, there is a need for large organisations to redesign their working models. Furthermore, issues of diversity, equality and inclusion within organisations are emerging as areas where organisations must work to develop their capabilities.

When the pressures imposed by the system and employees’ expectations—as sub-categories of systemic and human dynamics—converge, the need for organisational structures to change becomes apparent. Companies that once defined success in terms of EBITDA figures still define EBITDA as a criterion for success today, but they also describe their success using a variety of other metrics. Nobel Prize-winning economist Muhammad Yunus uses the concept of ‘social enterprises’ for evolving organisations and states that ‘non-profit-oriented’ companies will play a greater role in the business world. Whilst organisations were previously judged solely on whether they were profit- or benefit-oriented, this new paradigm now incorporates social impacts as well. Governments are also adjusting their regulations to support organisations that do not aim to make a profit. (An example of such regulations is the introduction of new legislation for social enterprises in the US state of Vermont, designed to address this new objective.)

The developmental, service-oriented leader brought about by the fifth wave ‘serves the whole of society’ and, by exemplifying virtues such as kindness, integrity, teamwork, meaning-making, harmony and wholeness, embodies the broadest definition of the term ‘influence’ “facilitators” (enablers) who “stir up their employees’ aspirations to become the best versions of themselves”—whatever name is given to the leadership of the future, it is thought that these qualities will form the essence of that definition. As can be seen, the reactivity of the 19th century gave way to proactivity in the 20th century and to ‘co-activity’ in the 21st century. By correctly understanding the context of the era we find ourselves in and directing efforts towards improving and developing it, this will also usher in an era of thinking together, creating together, working together and managing together.  

Pınar Ersoy Özdoğru