Responding to environmental challenges is now a non-negotiable for organisations. We have known for a long time that societal change is needed to achieve net zero targets. However, change has not happened quickly enough. There is a gap between what we know needs to happen and what business and governments are actually doing. But how do we close this leadership gap?
What needs to change?
Moving from ambition to action requires leaders not just to connect commerciality with responsibility, but to effectively harness human ingenuity, passion and collective responsibility within their organisations to adapt to significant change. What is needed is a shift in mindset towards seeing leadership not just as a title, but what you do, how you learn and how you adapt. We believe that the frameworks of adaptive leadership and systems thinking provide insight on the leadership practices that are required to deliver net zero transformation. Too often, leadership models focus on the technical challenges floating on the surface, while proving unable to tackle core adaptive challenges beneath the surface. Leadership that addresses this gap will enable organisations to get to the bottom of what holistic adaptation is required to deliver their net zero outcomes.
Three key elements of leading to enhance adaptation and enable collaboration across the system are:
- Executive leadership teams must own and role model a ‘mindset shift’ towards collective leadership as all levels of the organisation feel responsibility for delivering net zero.
- Organisations need to work on developing the capacity to handle complexity as part of leadership development if they are to successfully deliver the necessary changes needed for a just transition to net zero.
- People are critical to organisational and societal success and the delivery of this change. The human element of the net zero transition has too often been forgotten and this has contributed to the failure to deliver.
Our recommendations
There is a clear leadership gap that prevents organisations delivering net zero transformation at the required pace. It is present in organisations that address net zero transformation as purely a technical problem to be managed. The adaptive challenges are left unaddressed. If the leadership gap is acknowledged and forms of leadership are embraced that enable systems thinking and adaptation, organisations will find that the technical challenges they face are unlocked and rapid progress is made.
Our report highlights practical recommendations on how organisations can employ three steps in order to fill the net zero leadership gap.
- 1. Identify and distinguish between the technical problems and adaptive Challenges you face
- 2. Understand your system
- 3. Embed adaptive leadership
1. Identify and distinguish between the technical problems and adaptive Challenges you face
- Identify the ‘what’ you do (process, activities, tasks), the ‘how’ you do (skills, behaviours, technology), and the ‘why’ you do (purpose).
- Define the ‘why’ for change (your vision and case for change).
- Define the ‘what’ and the ‘how’ that needs to change, in terms of (1) skills and technology 2) structure and organisation 3) capability and culture. Which elements are technical and which are adaptive? There may well be more adaptation required than you might initially expect. it was before.
2. Understand your system
- Having articulated exactly the change required, employ systems thinking to build a picture of the system you are operating within, how it interrelates with others, and articulate which partners/ elements you need to work with, harness or enable to adapt to drive the change.
3. Embed adaptive leadership
- Now you can view the path ahead, focus in particular on the areas where adaptation will be required.
- Develop your change plan which now articulates the technical problems and adaptive challenges that you will have to overcome. Be clear that the change is necessary, has full support and be honest about the compromises that may be required to “run the business” whilst delivering your environmental commitments.
Looking ahead
Addressing the leadership gap and embracing an adaptive and systems model requires a holistic, cohesive strategy. Developing and nurturing leadership capabilities throughout the organisation, whilst also defining clear goals and action points, are essential to embedding adaptive leadership and unlocking the value that brings. Through fostering the right leadership practices and culture, you will accelerate change, unlocking net zero success as your organisation becomes more reactive, more efficient and more focused on progress.
“Leadership is never easy, and delivering sustained and transformational change, which net zero requires, is complex, and takes time, effort and investment to get right. But you are not alone: every organisation has to face this puzzle and you can learn from others, collaborate, and reshape your organisation as it adapts into a new net zero world stronger and more successful than it was before.”
Bruce Hedley,Director, Consulting, PwC UK
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