As a leader, or aspiring leader, guiding a business or team to success has never presented a more diverse set of challenges. During a recent online Masterclass, Frederic Toitot, VP of Global Learning & Development at Accor and Les Roches visiting lecturer for the Master’s in Hospitality Strategy and Digital Transformation, revealed the 6 leadership megatrends that leaders need to understand in order to be effective over the next decade.
1. Globalization 2.0
Encompassing China, the Middle East, Brazil and a number of other countries and regions, Globalisation 2.0 is the new emerging economic world, and it should not be overlooked by leaders. “These countries are developing very fast and shifting the power from old economies to new power centres”, Frederic explains.
“For organisations it means that we need to consider moving our decision centres from New York, Paris or Berlin to places like Shanghai, Singapore or Dubai. There’s an impact to this switch and that’s something that future leaders need to understand, grasp and integrate into their strategies.”
“For businesses, being green is a cost, but also an opportunity too.”
2. The Environmental Crisis
As natural resources become more scarce and climate change continues to threaten life as we know it, businesses face multi-directional demands that leaders must negotiate. “The day-to-day consequence of resource scarcity and climate change is that costs are accelerating, plus we have pressure from society, politics, clients and the market to effect change.”
“For businesses, being green is a cost, but also an opportunity too. Studies have shown that clients at Accor love the fact that they can stay in hotels that are taking care of the environment. As leaders, we have to rethink the way we operate today and tomorrow, to take into account sustainability, consumer sentiment and the environmental situation.”
“…as a leader you have to think about niche opportunities for personalised offerings for your clients, and your employees.”
3. Individualization
Across all industries, people expect more personalisation than ever before. The demand for unique experiences, the emergence of powerful tech, and a millennial attitude to customer service means consumers expect to be treated as an individual. “The growing affluence and purchasing power in emerging markets like China, Dubai and Brazil is creating increasingly individualistic attitudes within consumers and clients.”
“This means that as a leader you have to think about niche opportunities for personalised offerings for your clients, and your employees. We require greater sensitivity and agility to the world around us that is becoming more individualized, both from leaders and the organisations that they build.”
“For leaders, this means a shrinking global workforce, sparking a war for talent among organisations.”
4. Demographic Change
Despite the increasingly strong influence of the younger generation, we have a rapidly aging world population that is transforming markets. Something that, as Frederic highlights, is having a profound effect on businesses. “For leaders, this means a shrinking global workforce because it is ageing, sparking a war for talent among organisations. The less people you have that are skilled or with the right attitude, the more pressure you have to get them into your organisation.”
“Talent management is going to become a real issue tomorrow because of that demographic change, and your new intergenerational workforce will have needs, expectations and motivations that are substantially different to what we’ve known in past years.”
“As a leader it means you need to be even more honest and genuine than before.”
5. The Digital Era
Digital platforms are shifting power from the organisations to the consumers and employees. For leaders, this means transparency is the new currency. “Think specifically about the younger generations, Millennials and Gen Z, those digital natives that are breaking down the old divisions between professional and personal life.”
“As a leader it means you need to be even more honest and genuine than before. You will have to act with sincerity and with authenticity, because this new generation is not going to expect anything else. Crises like covid-19 are making this even more important.”
algorithms, data and analytics, and machine learning is impacting a great deal of jobs, and the way we operate.”
“…algorithms, data and analytics, and machine learning is impacting a great deal of jobs, and the way we operate.”
6. Technological Convergence
Rapid technological progress is having an impact on behaviours and bottom-lines across all socio-economic areas, a fact Frederic is aware of in his role at Accor. “I come from revenue management and we know that evolutions and the progress of algorithms, data and analytics, and machine learning is impacting a great deal of jobs, and the way we operate.”
“Innovation is creating untold new markets, products and jobs, and embracing it gives you a huge opportunity to stay ahead of the curve. As a leader, you have to anticipate that situation by keeping the best talent in your organisation, while also collaborating closely with competitors.”
There you have it, the 6 leadership megatrends you need to understand if you lead a team or business, or aspire to. Interested in gaining more leadership expertise for a fast-changing world? Discover our Master’s in Hospitality Strategy and Digital Transformation.
