Guillaume Pernoud, Head of Continuing Education, Excelia

The acceleration of digital innovation worldwide and the increasing number of large companies undergoing fundamental change through the adoption of digital technologies and practices indicate that the role of managers and leaders can no longer be limited to simply managing the traditional processes already in place, which are taken as read, but must increasingly focus on the transformation of the company.

Change management is not a new concept, even if the accelerating pace of change in society has made it a more pressing issue. Over the last century, management theorists and practitioners have been looking for ways to optimise the ability of leaders and managers to adapt to the internal variables of their organisations. Economic and structural demands were always the priority, before human relations were factored in.

However, in the course of this transition from functional hard skills designed for the organisation as a ‘machine’ to more soft skills for the company as ‘human’, advances in management skills frameworks have given too little consideration to the additional attributes that changes in the outside world might require of top and middle managers, leading them to often neglect the transformative forces of the external environment. 

A ‘transforming environment’ redesigning management skills

No organisation can operate in a vacuum if it is to remain competitive in an external world experiencing rapid change. Consequently, the skills expected of all managers in the 21^st century must include a greater emphasis on their ability to facilitate adaptive change – not only technological change, but also changes in terms of structure, human resources, and business models. And yet, the prevailing model of management skills is not entirely adapted to these profound changes. This model warrants being redefined, enhanced, and prioritised in a different way, to address a new set of trends. For the future, the task of identifying the new skills needed by managers in response to the transforming environment of the company, characterised by multiple game changers, is therefore of strategic importance.

To meet this challenge of ‘modernising’ management skills, existing models need to be supplemented by a new skill set, known as ‘Adaptation skills’, specially designed to enable companies to react quickly to economic, technological, ecological, sociological, and political changes in the outside world. It is not a question of replacing the skills models inherited from the past as all these models remain relevant to what are today considered to be the essential generic skills of any manager. It is more a question of complementing them.

‘Adaptation skills’ as a response to technological disruptions

For instance, to address the constant stream of innovation in today’s digital era, managers need to learn how to facilitate the adoption of new technologies within their teams in order to develop solutions that are both shared and professionally fulfilling. The challenge is to embody the ‘how’, by promoting new ways of working and professional relationships, as well as reassuring employees about how well they are adjusting to these new tools and technological solutions (adaptation skill: ‘Tech Facilitator’).

In response to growing online security issues for organisations, people and data, managers need to be able to protect themselves, their company and their teams against the risks of cyberattacks. The need for this ‘security mindset’ must permeate all business activities, at all levels of the organisation, and beyond, including clients and partners (adaptation skill: ‘Cybersecurity Guardian’).

Last but not least, and in the wake of a new landscape in which machines possess decision-making capabilities that were previously the exclusive domain of humans, managers will need to be able to leverage the decision-making capabilities of AI algorithms without sacrificing strategic control or human decision-making powers. This means deciding why, when, and how to harness the power of AI: establishing the underlying reasons and objectives, as well as the necessary limits and precautions to ensure that the decision-making of this new pairing of intelligence – human and algorithmic – is carefully managed (adaptation skill: ‘AI Decision Moderator’).

Adaptation skills in response to situational and socio-cultural game changers

Faced with the unpredictability of events in a world of increased disruption, managers need to think like ‘futurists’. This may sound rather abstract, but futurists are neither dreamers nor oracles. They are true navigators, with insight and foresight. This requires the constant monitoring and a heightened awareness of ‘weak signals’ that are often overlooked because they appear anecdotal; this also requires a certain capacity to distinguish between fake and real trends, and even the imagination to envisage ‘what might happen’. This adaptation skill, known as ‘Foresight Thinking’, combines a range of cognitive skills such as curiosity, imagination, open-mindedness, tolerance, clear-sightedness, and intuition. Many observers agree that companies, whatever their size, need to be more reactive, capable of adapting more quickly to situations, competition, and unforeseen circumstances. This is the role of managers in all professions and at all hierarchical levels.

Another well-established need is the adaptation skill of ‘Sustainability Builder’, adapting management practices to the urgent need for environmental sustainability. Top managers must now assume the role of environmental officers, redefining their company’s raison d’être, rethinking their business model, and the choice of technology, resources, and energy. Middle management now has a new role to play in terms of practical sustainable development, which is implemented in the field at all levels and in all areas of the value chain.

In this context, companies, HR professionals, leaders in higher education, teachers and trainers alike, would all be well advised to question the skill sets of today’s managers as regards their ability to support the transformations of organisations. It is equally pertinent to address the need to adapt the hierarchy of management skills towards a model more suited to the ecosystem in which companies and organisations will be operating and evolving over the coming decades.

Also read: AI & upskilling in the focus of business management education