The name of the game – new game, new rules?

Why do we need to re-think leadership? Why have old ways become irrelevant in today's business environment? Why is it crucial to change and re-imagine our thinking how we lead, what we lead, and why we lead?

The game businesses play, has changed, no question about it. Yes, there are still fundaments that apply - companies produce value to customers and earn money in this value exchange process, which again generates value to owners and employees. Although, one might argue that even this fundament is changing as the main function of a company is not only to provide value to owners, customers and employees - but companies need to produce value to their operating environment, social and environmental ecosystems, needing a strong reason and purpose for existence.

The game has changed not least due to the changes in value production system. Earlier business value was produced mainly inside the companies with strictly followed & standardised processes - the more efficiently you managed to operate your processed, the more net revenue would be generated, being that your offering was in line with customer needs. Today, value is generated in complex systems that cannot be managed with strictly controlled policies. Value is generated in interactions instead and despite of organizational structures and boundaries, also outside the companies. Value is generated in transactions and platforms that might not be visible nor solely owned by companies. Value is built in co-creation and ecosystems not controlled or owned by companies, instead of fixed contracts. Value is generated on all levels and not only in limited positions based on hierarchy. Value creation is more about creativity than analytical reasoning.

Thus, we cannot lead with the same tools, with the same principals, with the same information we did before. We need new leadership that fits better our time and the future. We need leaders that understand the name of the game has changed. And we need leaders that have not built their leadership on past success but on creating and enabling opportunities for the future.