Smarts, Heart, and a Belly Full of Fire: What It Really Takes to Succeed in a Volatile World

Demonstrable domain experience is one thing. Actually succeeding in the role is another challenge entirely. We explore what it really takes to succeed as a leader in a fast-changing and volatile world.

 

Self-knowledge      Values and Aspirations     Wider Impact and Legacy

 

As any CHRO will know, finding capable leaders is only half the battle. The real challenge lies in ensuring these leaders will actually go on to succeed in the role and deliver sustained success in the face of unprecedented volatility and complexity.

This shift in perspective is crucial because the business world is moving at a breakneck pace. Technologies evolve overnight, market dynamics shift unpredictably, and global events can reshape entire industries in a matter of weeks. In this environment, a leader who is perfectly suited for today's challenges may find themselves woefully unprepared for tomorrow's.

Consider our research that shows that turnover at the top is increasing. In 2023, for example, 178 CEOs across the world’s listed companies, including the S&P 500, FTSE 100, and Nikkei 225, left their posts—up from 162 in 2021. Similarly, tenures are on the decline. Failed CEO appointments (those lasting less than two years) represented 15.1% of outgoing CEOs—up from an average of 9.6% since 2019.

So, how can CHROs and other hiring leaders understand if a senior leader has true staying power and can translate their impressive experience into long-lasting success once in the role? Based on our research, we have identified three core capabilities that successful leaders possess.

Here, we set out what they are, why these skills are important, and how to cultivate these capabilities in both sitting executives and the next-generation leaders on your succession radar.

 

01. Self-knowledge

These leaders display insight around both their strengths and limitations. They have realistic expectations for the role, and a high level of awareness about how to manage their potential derailers and where they are on their own development path. It requires a high degree of attunement to the conditions in which they are likely to thrive and grow.

  • Displays insight and mindfulness of their personal strengths and development areas.
  • Leverages feedback to maintain self-awareness.
  • Openly acknowledges blind spots and potential derailers.
  • Develops coping strategies to mitigate personal risks.
  • Engages in thorough research and planning for future roles. Constructs and evaluates strategies for adjusting to them.

 

Why is self-knowledge such an important leadership trait?

Leadership isn’t static. It involves perpetual evolution. A leader today will be very different to the leader they were five years ago, and very different to the leader they will be in five years from now. Many leaders, however, fall into the trap of not making their development a priority once they’ve made it to the C-suite or corner office. This mindset can lead to stagnation—and an inability to actually succeed in the role.

When we talk about self-knowledge in the leadership context, we mean leaders who not only know what their strengths are, and what expertise they bring to the table, but also what their derailers are—what do they look like on their worst day as a leader, and what conditions bring these derailers to the surface?

Without a deep understanding of their own strengths, weaknesses, and motivations, leaders operate at a significant disadvantage. They may overestimate their abilities in some areas while neglecting to address critical shortcomings in others. This self-blindness can lead to poor decision-making, team conflicts, and ultimately, organizational underperformance.

 

 

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Many leaders I speak with find it easy to articulate their strengths and know how to play to them. But what can trip up a lot of leaders is over-using this strength. For example, say you’re a charismatic leader and a great storyteller. This is something you will often rely on in times of difficulty. But, often these moments require leaders to step out of their comfort zone and communicate differently. And if that’s an area that the leader doesn’t want to step into, they may struggle to engage their teams.

Dana Landis
Leadership advisor, Russell Reynolds Associates

 

 

What benefits do self-aware leaders bring their organizations?

Most leaders can clearly articulate what they are good at and where they are less strong. Self-aware leaders, however, take this a step further, continually adapting their style and leveraging others around them to compensate for any gaps or challenges they may have. 

When you’re aware of how you show up as a leader and where you fall down, you can also mitigate any derailer behavior from impacting your team. Self-aware leaders will likely be emotionally and socially intelligent, allowing them to regulate their emotions and how they react in certain environments.

When leaders are self-aware, they typically unlock the following benefits.

 

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Build more diverse teams

Self-aware leaders know how to optimize their performance—and that of their team. They know that the best teams are a mosaic of personalities, who can challenge their thinking, and bring different skill sets. For these types of leaders, it’s not about their ego, it’s about bringing a diverse team together to drive results.

 


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More likely to create a learning culture

Self-aware leaders are not only in tune with their own flaws, but they’re comfortable enough to share them with their team. Being open and honest about their development creates a culture of learning. This opens the door for other members of the organization to share what they are looking to develop. 

 


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Smarter decision-making

Self-aware leaders are unafraid to admit when they don’t have all of the answers. They rarely shoot from the hip—or over-estimate their abilities. This honesty often means they’re able to collaborate with others to make more informed choices, and in turn sidestep costly mistakes.

 


 

02. Values and Aspirations

These leaders display a high degree of clarity around their personal values, motivations, and ambitions. They have a set of morals, principles, and non-negotiables that underlie their decisions and actions. They effectively balance principles with pragmatism, setting clear priorities, and making mindful compromises where appropriate.

  • Possesses a keen understanding of personal passions, values, and guiding principles.  
  • Maintains a strong sense of direction.
  • Clearly defines personal boundaries and affirms essential core values.  
  • Understands when to make compromises on values outside their core.
  • Models their values throughout challenging situations. Inspires others to follow suit with ease.

 

Why is being values-driven such an important leadership trait?

Today’s leaders are expected to do so much more than drive the numbers. Employees, customers, and investors increasingly want companies to play a role in helping to build a better, fairer, and more equitable world. Leaders are expected to take public positions on a diverse array of complex issues—from sustainability and climate change to social justice movements—ensuring they are not just creating value for their companies, but also for the communities in which they operate. 

This is not an easy position to be in. Navigating issues like sustainability requires bold decisions and complicated trade offs. So, how can leaders ensure they do the right thing by their investors, customers, employees, and the business? How do they keep focused during the arduous task of transformation, which inevitably includes many setbacks?  

We see that the most successful leaders have a strong values system that serves as the cornerstone of their decision-making processes. When faced with difficult choices, leaders can assess situations against their principles, helping provide clarity on how to best proceed. Whether facing a financial crisis, or navigating a major organizational change, leaders can lean on their value system to maintain focus and chart a path forward. 

 

 

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A leader’s value system is their North Star that guides them through the complexities of modern business. When leaders embody clear values, they inspire trust, foster a positive culture, and navigate ethical dilemmas with confidence. In fact, values shine brightest when faced with uncertainty or crisis—whether navigating complex decisions, social or economic upheaval, or a global pandemic.  

Erin Zolna
Leadership advisor, Russell Reynolds Associates

 

 

What benefits do value-driven leaders bring their organizations?  

While everyone will have implicit values, truly transformative leaders are the ones who can articulate their principles with precision and passion. These executives don’t just know their values—they live and breathe them. They can clearly articulate not just what they stand for, but what they won’t stand for.

But there’s a distinct difference between having visible values that a leader stands by and being completely rigid and immovable from them. Effective leaders are those who remain open and curious about other people's values and opinions, and are unafraid to ask questions and have their values challenged. 

When leaders have visible values, they typically unlock the following benefits.  

 

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Builds trust

Leaders who understand where their moral lines are drawn, and are able to effectively communicate these values, create a framework for authentic leadership. They’re able to show that they can back up what they say with meaningful actions. And over time, when a leader is able to show consistency in these values, rather than swaying every time the wind changes, they’re able to build trust with their team and the broader organization. 

 


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Better decision-making

A value-driven leader navigates complex decisions with clarity. Their values system provides a consistent framework for addressing both day-to-day issues as well as long-term strategic challenges, ensuring decisions align not only with how an organization can maximize its financial performance, but with its core beliefs. This results in a more coherent strategy, where short-term gains don’t come at the expense of long-term integrity. 

 


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More sustainable growth

A leader who has visible values and prioritizes those over quick wins will uncover innovative solutions that balance profit and purpose. This approach is much more likely to attract investors looking for long-term stability and mitigates any risks associated with unethical practices. The result? A robust business model that can better weather economic storms and adapt to changing market conditions without compromising on their core principles. 

 


 

03. Wider Impact and Legacy

These leaders look beyond themselves, offering a well-articulated view of their professional purpose and desired impact on the wider ecosystem (including their teams, organizations, industries, society, and the world). They are cognizant of the long-term impact of their leadership and can articulate the steps they are taking to shape their legacy.

  • Tethers to a clearly articulated personal and professional mission. 
  • Recognizes the potential long-term impact of their mission.
  • Seamlessly connects their core values with the organization’s vision. 
  • Generates impact across multiple stakeholder groups.
  • Embraces a mindset of servicing and enabling others. 
  • Places others ahead of their own achievements or recognition.

 

Why is legacy building such an important leadership trait?

The relentless barrage of challenges facing organizations today—from market volatility and technological disruptions to regulatory changes and global crises—can leave many leaders in a perpetual state of firefighting. They become so focused on solving challenges that require immediate attention that they quickly lose sight of their primary purpose: to guide their organizations toward a better future.

The most effective leaders recognize that while it’s critical to address immediate concerns, their true value lies in their ability to rise above the daily tumult, and maintain a long-term perspective on the impact they can have: Why did they choose to become a leader? What do they want to accomplish? And what legacy do they want to leave behind? 

These leaders see their position as a privilege and a responsibility, one that demands they leave the organization in a markedly better state than they found it—not just in terms of financial gains, but other metrics, including strengthening the organization's culture, enhancing its resilience, fostering innovation, and ensuring its positive impact on society and stakeholders.

 

 

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Legacy isn’t just something you think about toward the end of your career. The most impactful leaders I’ve encountered think about the impact they want to have from the moment they step into a leadership role. They ask themselves daily, 'How will this choice echo through the organization long after I'm gone?' It's about planting seeds you may never see grow, nurturing talent that will outlast your tenure, and building sustainable systems that continue long after you have left the organization. 

Erin Zolna
Leadership advisor, Russell Reynolds Associates

 

 

What benefits do legacy-building leaders bring? 

Legacy-building leaders act with intentionality. There’s a deeper rhyme and reason for why certain decisions are made. They understand that each decision they make will shape the legacy that they are building. 

They’re also astute at communicating their broader purpose and aligning their organization around it. They understand that it’s not about personal glory, but about creating enduring value and positive change across any organization, whether that be to move the needle on diversity and inclusion or driving forward sustainability action.

When leaders can effectively build their legacy, they typically unlock the following benefits.    

 

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Enhanced organizational resilience

Leaders who understand where their moral lines are drawn, and are able to effectively communicate these values, create a framework for authentic leadership. They’re able to show that they can back up what they say with meaningful actions. And over time, when a leader is able to show consistency in these values, rather than swaying every time the wind changes, they’re able to build trust with their team and the broader organization. 

 


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Better decision-making

Leaders who understand the importance of legacy building are able to instill a sense of purpose and direction that transcends their tenure. They develop the organization’s core identity and a set of values that serve as a touchstone during crises, guiding decision-making, and unifying efforts when the path forward seems unclear. As a result, they create organizations that can withstand the test of time.

 


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Better able to build trust 

Legacy-focused leaders will be clear on their values and purpose from the offset, and their actions will closely reflect them. This alignment of rhetoric and actions creates a bedrock of reliability that employees, the board, and other stakeholders can depend on. When a leader demonstrates consistency with these values, it engenders a sense of predictability and security within an organization, which in turn builds trust. 

 


 

How can leaders achieve leadership mastery?

Of course, some people are better at these skills than others. But executives always have the chance to refine some or all of their leadership style through attention, focus, self-awareness, and self-regulation. 

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Start with self. The best leaders are voracious consumers of data and are constantly finding ways to create space in their schedules to stay curious outside the “day to day” of their roles. They convert their self-awareness into “self-knowledge”—the ability to adjust their behaviors and their rituals to take into account when they are in positive or negative situations. They know what triggers their stress and energy depletion and have mechanisms for recovery (both physical and mental) that they apply consistently.

 


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Strong networks. Leaders need broad and rich networks—inside and outside of their organizations, and at multiple levels. The best leaders are very connected, hearing 360-degree inputs from employees levels down, their peers, and a wide range of external sources. These insights are not only critical to ongoing self-awareness and development—they also help leaders to filter each new instinct through a trusted set of colleagues and team members who will challenge and even redirect to get the optimal outcome. 

 


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Intentional inclusion. Great leaders assertively pull perspectives from everywhere into their decision-making processes. No matter how expansive or fast thinking a leader may be, their pattern recognition will be improved if they actively get other brains on the challenge and resist the temptation to go it alone. Every leader needs a “kitchen cabinet” to help them hear the truth and make the right decisions. Nothing is truer than the adage that senior leaders don't hear the unvarnished truth enough—so great leaders seek it out.

 


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The power of stories. As leaders own their development journeys and prioritize moments of reflection, stories can be an especially effective way of demonstrating authenticity and vulnerability.  Some leaders are natural storytellers they need to make sure their stories don’t sound too slick or superficial. Other leaders struggle with opening up and sharing—requiring structure, practice, and feedback to hone a few stories that can make an impact.

 


 

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The Future of Leadership

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