Leadership in driving change, growth, and innovation

This article is the forth and final post of the fifth series. It elaborates on the core principles introduced by the book "Transforming Financial Institutions" while applying its leadership principles for value creation more broadly to enterprise ecosystems.

Value creation is a management philosophy with the goal to drive an institution’s performance through its governance and culture. At its core is leadership to the drive intrinsic value drivers and bring an organisation along in its value-creation journey. It is shaped by a specific mindset and guided by a series of key management principles. The following article elaborates on these principles with focus on effective and impactful leadership for value creation, innovation and special situations. 

Ownership and accountability

Successful organisations have ownership and accountability at the core of their leadership model that is held up across functions and management levels. Leaders need to take full responsibility by stop making excuses and blaming other people and circumstances for being ineffective in their role and specific situations. The book “Extreme Ownership" by Jocko Willink and Leif Babin is a leadership manual based on the two authors’ experiences as U.S. Navy SEAL officers during the second Iraq War. Their experience has an interesting perspective on entrepreneurial and value-creation leadership given the extreme circumstances under which the authors operated while establishing the principles.

Leading with ownership and accountability emphasises that great leaders take complete responsibility for their teams and results, without resorting to excuses or blaming others. Even when setbacks arise from external factors or mistakes by subordinates, effective leaders own the outcomes and focus on influencing results through their actions. A high-performing leader can revitalise a struggling team by setting clear expectations, fostering a culture of accountability, and overcoming challenges like skill gaps and low morale. Full belief in the mission or strategy is essential. Leaders must communicate with conviction and resolve confusion or doubt to secure team buy-in. Ego must be set aside in favour of humility, which is crucial for continuous learning, adaptability, and most importantly healthy team dynamics.

On the organisational level, cross-functional collaboration remains critical. Teams should avoid operating in silos to ensure organisational success. Leadership demands clear and simple planning and communication. Complexity breeds confusion, particularly under pressure. In chaotic situations, leaders must remain calm, prioritise the most important task, and execute it decisively before moving to the next priorities. Empowering more junior leaders to make decisions and ensuring everyone understands their role and the broader mission strengthens the entire organisation. Finally, structure and disciplined routines foster the freedom and agility needed to maintain consistent performance and adapt to changing conditions.

Skilful response

People react instinctively to situations, guided by deeply ingrained impulses. These responses are shaped by habitual patterns rooted in psychological conditioning – including cultural background, unresolved personal experiences, and genetic inheritance. In essence, nearly all actions of socialised individuals are driven by their thought patterns, desires, and fears. Behaviour is a function and product of conditioning. A complex interaction between our genetic code and the cumulative impressions of our life experiences. This conditioning forms personal narratives and shapes habitual responses.

One of the core principles of effective leadership is the ability to establish a point of stillness. This means resisting the urge to react according to first impulses. In his book “Stillness is the Key”, Ryan Holiday explores the Stoic principle of attaining the right mental state for action. The author argues that stillness is essential for cultivating a well-balanced, meaningful, and successful impact in business and life. By developing control over one’s thoughts, minimizing distractions, and focusing on what truly matters, leaders can act in alignment with their core values and beliefs while fully appreciating the circumstances they face. Discipline, structure, and clarity are critical for long-term effectiveness. Leaders are called to favour thoughtful responses over impulsive reactions, allowing deliberate action to prevail.

Through mental training, leaders can move from reactivity to skilful responsiveness, better navigating complex and challenging situations. This concept finds strong parallels in Eastern philosophies as practiced in martial arts and yoga, which emphasize a multi-stage development of right attitude, physical health, breath control, and meditation. Meditation itself encompasses a variety of methods, from effortless self-transcendence and focused concentration to contemplative insight, visualisation and the cultivation of compassion. At its core, meditation seeks to establish a high quality of mind, defined as a wholesome state characterized by clarity, composure, and insight. Regular practice of these practices equips leaders with the mental resilience to respond thoughtfully and effectively to their challenges, and in our context, to the demands of leadership and management.

Emphatic influence

Leading in uncertain and complex circumstances requires to influence and persuade others. Every interactions become a negotiation while the prioritisation remains instrumental in advancing the change and growth agenda. Battle need to be chosen wisely and focus on what is essential and impactful for resolving given situations.

Robert Mnookin explores in his book “Bargaining with the Devil: When to Negotiate, When to Fight” the complex decision-making process involved in dealing with adversaries who seem untrustworthy, hostile, or morally reprehensible. The "devil," as Mnookin uses the term, is a metaphor. It is not necessarily a symbol of evil, but anyone whose interests or values conflict sharply with their own. This adversary could be a business rival, political opponent, or even a personal adversary.

Mnookin presents a framework to guide individuals in deciding whether to negotiate or resist. People often refuse to negotiate out of anger, pride, moral outrage, or fear. Emotions that can cloud judgment and lead to self-defeating outcomes. Mnookin advocates instead for a rational, structured approach. His methodology begins with a careful assessment of interests through a risk-benefit analysis, evaluation of available alternatives, and consideration of the legitimacy of the opponent's demands. Additionally, the author urges a thoughtful examination of motives and the long-term implications of any decision. Through compelling case studies such as Winston Churchill's stance against Hitler, IBM’s corporate battle with Fujitsu, and Nelson Mandela’s transformative approach to end apartheid, Mnookin demonstrates the complexity and nuance of these choices. A central takeaway is that wise decisions demand discipline and strategic empathy – understanding an adversary's motivations can reveal hidden opportunities for mutual gain.

Chris Voss, a former FBI hostage negotiator, offers another powerful perspective on persuasion and negotiation in his book “Never Split the Difference: Negotiating As If Your Life Depended On It”. Drawing from high-stakes real-world experience, Voss lays out a set of practical strategies that can be applied to negotiations across business, personal, and professional contexts. At the heart of Voss’s approach is tactical empathy. Tactical empathy is the ability to recognize and articulate the emotions and perspectives of the counterpart, thereby building trust and opening lines of communication.

Thorough preparation is critical. Negotiators must clearly understand their own objectives, anticipate the needs and strategies of the counterpart, and develop flexible negotiation tactics. Remaining calm and composed, especially under pressure, is vital for maintaining clarity of thought and achieving effective outcomes. Voss introduces the use of a series of calibrated questions as a playbook. Open-ended inquiries beginning with "what" and "how" to encourage deeper reflection and collaborative problem-solving. The author continues using "no-oriented" questions that allow counterparts to feel more secure and in control by responding negatively without shutting down dialogue. Voss reframes "no" not as a dead-end, but as a starting point for deeper negotiation, signalling needs for more information or greater comfort with the terms being discussed.

Critical moments in negotiation, such as achieving a "that-is-right" response from the counterpart, signal alignment and understanding. Voss also discusses bending reality by subtly anchoring counterparts' expectations through extreme offers or strategic framing. He emphasises the importance of uncovering black swans. Black swans are hidden pieces of information that can dramatically alter negotiation dynamics. They highlights the manipulative potential of invoking the term "fair," cautioning negotiators to be vigilant about its use. The author underscores the significance of non-verbal communication, mirroring, labelling emotions, and acknowledging and addressing potential criticisms pre-emptively to defuse negative perceptions.

Preservation and resilience 

In high-stakes, out-of-the-norm corporate situations, perseverance and resilience are essential to drive resolution and achieve success. Drawing from his experience training athletes like Michael Jordan and Kobe Bryant, Tim Grover presents in his books “Relentless: From Good to Great to Unstoppable” and “Winning: The Unforgiving Race to Greatness” a blueprint for developing mental toughness, discipline, and an unwavering commitment to one’s goals.

Grover introduces in his first book “Relentless” the concept of the "cleaner mentality", a mindset characterized by relentless accountability and the consistent delivery of results. Those who embrace this approach take full responsibility for outcomes, trusting their instincts and cultivating unshakable confidence in their decisions. The author stresses the importance of staying in the zone, an intense focus on goals that demands eliminating distractions and pushing beyond perceived limits, even when others believe the work is complete. Central to this philosophy is the idea that discipline equals freedom by establishing strict routines and habits. Individuals create the structure necessary to perform at their absolute best.

In his second book “Winning”, Grover expands upon the relentless mindset, offering a deeper examination of what it takes to reach and sustain impact. He emphasises that impact is not a singular achievement, but a relentless, ongoing pursuit. Total commitment and sacrifice are non-negotiable for those who seek to prevail consistently. Grover encourages to embrace their dark side by harnessing inner drives, including anger or fear, as powerful forces for success. The author debunks the notion of a true finish line, reminding us that sustained impact and outcome require continuous effort without respite. The critical role of resilience, defined as the ability to rebound from failure and setbacks as a defining trait of true winners, is key in this process.

The author used ChatGPT for researching and editing this article.

Notes and further reading:

• BRASSEY, JACQUELINE ET AL: Deliberate Calm: How to Learn and Lead in a Volatile World; Harper Business, 2022

• DOVER, TIM.: Relentless: From Good to Great to Unstoppable; Scribner, 2013

• DOVER, TIM.: Winning: Unforgiving Race to Greatness; Simon & Schuster, 2021

• HOLIDAY, RYAN: Stillness is the Key: An Ancient Strategy for Modern Life: Profile Books, 2019

• MNOOKIN, ROBERT: Bargaining with the Devil: When to Negotiate, When to Fight; Simon & Schuster, 2010

• VOSS, CHRIS AND TAHL RAZ: Never Split the Difference: Negotiating as if Your Life Depended on; Business Books; 2016

• WILLINK JOCKO AND LEIF BABIN: Extreme Ownership: How U.S. Navy SEALs Lead and Win; St. Martin’s Press, 2015

• WALLIS, CHRISTOPHER D.: Near Enemies of the Truth: Avoid the Pitfalls of the Spiritual Life and Become Radically Free; Wonderwell, 2023