The New Leadership Playbook for the Digital Age

Reimagining What It Takes to Lead

by: Douglas A. Ready, Carol Cohen, David Kiron, and Benjamin Pring
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Executives around the world are out of touch with what it will take to win, and to lead, in the digital economy. Digitalization, upstart competitors, the need for breakneck speed and agility, and an increasingly diverse and demanding workforce require more from leaders than what most can offer.

Although a significant segment of the current generation of leaders might be out of touch, they still have control — over strategic decisions, who gets hired and promoted, and the culture of their organizations — but not for long. The need for change is urgent, and time is running out for leaders who are holding on to old ways of working and leading.

Evidence of this growing mismatch between how many organizations are currently led and how they should be led comes through loud and clear in this new, exciting report, “The New Leadership Playbook for the Digital Age: Reimagining What It Takes to Lead.” This global executive study and research report’s objective is straightforward: to explore how the changing nature of competition, work, and society is influencing the future of leadership. We surveyed 4,394 global leaders from more than 120 countries, conducted 27 executive interviews, and facilitated focus-group exchanges with next-gen emerging leaders worldwide. The findings are as sobering as they are inspiring. They serve as a warning for today’s leaders — as well as an invitation to reimagine leadership for the new economy. Today’s trailblazing leaders increasingly recognize that in order to credibly transform their organizations, they must credibly transform themselves and their teams.

Some brief highlights of this evidence that concerned us include the following:

  • Just 12% of respondents strongly agree that their leaders have the right mindsets to lead them forward.
  • Only 40% agree that their companies are building robust leadership pipelines to tackle the demands of the digital economy.
  • Only 48% agree that their organizations are prepared to compete in digitally driven markets and economies.
  • While 82% believe that leaders in the new economy will need to be digitally savvy, less than 10% of respondents strongly agree that their organizations have leaders with the right skills to thrive in the digital economy.

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About the Authors

Douglas A. Ready is a senior lecturer in organizational effectiveness at the MIT Sloan School of Management, the founder and CEO of the International Consortium for Executive Development Research, and an MIT Sloan Management Review guest editor. He tweets @doug_ready.

Carol Cohen is senior vice president of global talent and leadership at Cognizant, a founding board member of the $100 million Cognizant U.S. Foundation, and a board member of the National Center for Women & Information Technology.

David Kiron is the executive editor of MIT Sloan Management Review, which brings ideas from the world of thinkers to the executives and managers who use them.

Benjamin Pring cofounded and leads Cognizant’s Center for the Future of Work. He is a coauthor of a number of bestselling and award-winning books on how new technologies are changing the future of work.

Contributors

Hatice Baser, Euan Davis, Carolyn Ann Geason, Chantal Olson, Lauren Rosano, Allison Ryder, Caroline Styr, Vivek Vijayan, and Sreehari VS

To cite this report, please use: D. Ready, C. Cohen, D. Kiron, and B. Pring, “The New Leadership Playbook for the Digital Age,” MIT Sloan Management Review, January 2020.

Acknowledgments

We thank each of the following individuals, who were interviewed for this report:

Lori Beer, global CIO, JPMorgan Chase

Anne Benedict, chief human resources officer, Infor

Ronald de Jong, member, executive committee, Royal Philips; Distinguished Professor of Practice in Business, Tilburg University School of Management and Economics

Spencer Fung, group CEO, Li & Fung

Erik Gatenholm, cofounder and CEO, Cellink

Debjani Ghosh, president, NASSCOM

Ilene Gordon, retired chairman, president, and CEO, Ingredion

David Grayson, professor emeritus, Cranfield University School of Management

Brian Halligan, cofounder and CEO, HubSpot

Joanne Ho, chief operating officer, Fung Academy

Brian Kardon, chief marketing officer, InVision

Nisa Leung, managing partner, Qiming Venture Partners

Patty McCord, former chief talent officer, Netflix

Dave McKay, president and CEO, Royal Bank of Canada

Cherie Nursalim, vice chairman, GITI Group

Chin Yin Ong, head of people, Grab

Steve Reinemund, former chairman and CEO, PepsiCo

David Schmittlein, John C. Head III Dean and professor of marketing, MIT Sloan School of Management

Michael Schrage, research fellow, MIT Initiative on the Digital Economy

Dan Shapero, vice president of global solutions, LinkedIn

Susan Sobbott, former president, American Express Global Commercial Services

Rajiv Srivatsa, cofounder and former chief technology and product officer, Urban Ladder

John Tyson, chairman of the board, Tyson Foods

William Weldon, retired chairman of the board and CEO, Johnson & Johnson

Hariolf Wenzler, former head of marketing, EMEA, Baker McKenzie

Marjorie Yang, chairman, Esquel Group

Arthur Yeung, senior management adviser, Tencent; visiting professor of management, China Europe International Business School

Roger Young, chief human resources officer, Li & Fung

Li & Fung Focus Group Participants: Sandeep Chinthireddy, Joanne Ho, Phoon Hon Keet, Eric Lee, Richard Lee, Aik Lim, Kilian Lize, Romel Maranon, and Kiril Popov

MIT Sloan Management Review

At MIT Sloan Management Review (MIT SMR) we share with our readers an excitement and curiosity about how the practice of management is transforming in the digital age. Our expert contributors help leaders explore the trends that are shaping how organizations operate, compete, and create value in a technology-fueled world. We deliver the kind of evidence-based analysis and practical insight that will inspire readers to do great work.

MIT Sloan Management Review Big Ideas

MIT SMR’s Big Ideas Initiatives develop innovative, original research on the issues transforming our fast-changing business environment.

We conduct global surveys and in-depth interviews with front-line leaders working at a range of companies, from Silicon Valley startups to multinational organizations, to deepen our understanding of changing paradigms and their influence on how people work and lead.

Working with collaborative organizations, we publish our findings in annual research reports, case studies, videos, articles, and interactive data visualizations.

For over a decade, MIT SMR’s Big Ideas Initiatives have explored topics such as artificial intelligence, digital leadership, sustainability, data and analytics, the internet of things, and performance management.

Cognizant

Cognizant (Nasdaq-100: CTSH) is one of the world’s leading professional services companies, transforming clients’ business, operating, and technology models for the digital era. Our unique industry-based, consultative approach helps clients envision, build, and run more innovative and efficient businesses. Headquartered in the U.S., Cognizant is ranked 193 on the Fortune 500 and is consistently listed among the most admired companies in the world. Learn how Cognizant helps clients lead with digital at www.cognizant.com or follow us @Cognizant.

References

1. “A Page From the New Leadership Playbook,” a resource available from MIT Sloan Management Review, is available at https://sloanreview.mit.edu/interactive-a-page-from-the-new-leadership-playbook.

2. Top executives increasingly recognize the importance of this mindset. For example, in August 2019, the Business Roundtable, a group composed of CEOs of leading U.S. companies, issued a statement acknowledging that increasing shareholder value is not the sole purpose of a corporation.

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Comments (3)
Jeff Shuman
Interesting observations about what the authors call the "Connector Mindset". We just posted a blog that looks  at both collaborative leadership and the leadership system required to support and implement the capability as the antidote to the people and organizational challenges of achieving success in cross-boundary collaborations.
L Biasatti
This is a great article based on good research. The problem is these same things were being said in the 90s. Maybe without as much tech focus, but still the same leadership issues and similar suggestions. You talk about "trailblazing leadership." Michael Vance used the same words in the 80s. "Obsessed with customer" and "pursuing a higher purpose" are perspectives that have been around for a long time. Your four recommendations are awesome, but they aren't new. I have pushing "powerful leadership narrative" and "alignment" for years. The real issue is why are so many leaders not able to do these things. Partly because, to use an old Who song lyric"here comes the new boss, same as the old boss." Boards have to really start holding people accountable, not just for short term profits, but long term sustainability. Rewards have to go to those who demonstrate the leadership you are describing.   So, great piece of research and great communication piece. Now, how many board members and CEOs from long term companies will read it, and as you state, not just talk about it, but take action and live it.
Janice Dru
Great article! Building a community of emerging and enduring leaders, as well as creating spaces to bring together producers, investors, connectors, and explorers, will lead to greater innovation and high-impact entrepreneurship.