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By now we should all be familiar with the expression “the new normal”. It is used to describe the profound changes in our daily lives, including where and how we work. It also describes the general functioning of society that has become established after significant global events such as the pandemic, economic ups and downs, and geopolitical conflicts that seem to fall from the sky.
This term also includes adjustments in the way we communicate, conduct business, and interact personally and professionally. What was once considered a one-off event has now become an expected event, reflecting a change in behaviors, expectations and norms that are considered the basis for further development.
This new normal complicates the business landscape and impacts supply chains, market accessibility, and employee and supplier behavior. Given these challenges, it is imperative that traditional strategic frameworks undergo an overhaul to ensure resilience and sustainable prosperity.
The fallacy of strategic plans
Work culture has undergone a seismic shift. The changing dynamics of workplace locations and the motivations behind work have made many traditional business models and strategies obsolete. Today’s workforce strives for more than just routine; They long for meaning and the opportunity to be part of growth and lifelong learning.
Furthermore, a glaring discrepancy remains between many traditional strategic plans. Their extensive schedules and meticulous details often do not match the fluid nature of real-world challenges, which are prone to abrupt changes. This dissonance makes it difficult for employees to envision their roles, widening the gap between leaders, managers and their teams.
Ample evidence highlights the shortcomings of strategic plans. A 2022 Harvard Business School study found that 60% of strategic plans fail to meet expectations and produce poor results. Additionally, 95% of employees surveyed in the same study could not articulate or understand their company’s core strategies. To make matters worse, a study conducted by McKinsey and Company found that only 30% of executives believe their strategies are effective.
And while many companies are beginning to recognize the failure rate of strategic plans, many are unsure what to put in their place.
Related: How to Become the Compassionate Leader Your Team Needs
Migration is expensive
According to a 2022 Gallup poll, only 23% of U.S. employees feel invested in their company’s mission and see themselves as contributors to the company’s success. Because strategic plans tend to ignore the heart and soul of an organization – the employees who are expected to carry them out – it should be easy to see the connection between failed strategic plans and disengaged employees.
Turnover is not just a line item on an HR report; It is a symptom of a deeper dysfunction within the organizational structure. Also in 2022, Gallup released a survey that found disengaged employees cost the global economy $8.8 trillion annually, evidence of the price of ignoring employee happiness. But what if I told you that the antidote lies not in stricter performance management, but in something as fundamental as empathy?
Related: Does Empathy Have a Place in Your Workplace?
The importance of an empathy-based approach to running a business
In everything we encounter, from the significant to the seemingly inconsequential, it is important to recognize that in every way it is about people. In my experience dealing with communities in conflict and post-conflict areas, understanding is crucial, especially when we are on the verge of important decisions. Empathy should be the driving force behind our every action and guide us through every decision we face.
To overcome these crucial moments, you have to understand what matters. It may seem obvious, but amid the chaos of daily challenges, this clarity allows us to cut through the noise and distractions and focus on what matters most: the well-being and consideration of those around us.
However, in my experience, true understanding goes beyond mere knowledge. This involves active listening – taking in what others are saying and making an effort to perceive the world from their perspective. This level of empathy sheds light on what matters most and shapes our decisions so that they align with our deepest values.
Empathy-based leadership, a concept I explore through various anecdotes in my book, From theaters of war to boardrooms, optimize the moment when strategic planning fails. It’s about looking beyond the immediate tasks and understanding the desires, challenges and emotions of those we work with. It’s about creating an environment where employees feel truly seen and heard, which I believe is a strong motivator for loyalty and engagement.
It’s about hearing the unsaid, recognizing the effort behind the results and understanding the context of so-called failures. Not only has this approach helped me build stronger connections with my team, but it has also fostered a culture of trust and openness in my consulting practice.
Related: Try this approach to create a rewarding and caring workplace
Another important aspect of empathy-based leadership is adaptability. Recognizing that each team member is unique and may require different approaches to feel supported and motivated should be fundamental. A common expression among young people is: “Meeting people where they are.” It speaks truth and wisdom. By adapting our leadership style to these different needs, we can create a more inclusive and supportive work environment.
When we approach challenges with understanding and compassion, we are more likely to uncover the root causes of problems rather than just addressing the symptoms. This can lead to more sustainable outcomes and a greater sense of collective ownership.
Perhaps the most compelling argument for empathy-based leadership is its impact on business results. Managers who show more empathy to their direct reports are viewed as higher performers by their superiors. Compassionate leadership can lead to increased employee engagement, higher morale, and improved productivity and innovation.