The word disruption has generated a lot of buzz, but what is it, and why does it matter for your organization?
Merriam-Webster provides the following definition of “disrupt,” specifically as it relates to the business world: “To successfully challenge (established businesses, products, or services) by using an innovation (such as a new technology or business model) to gain a foothold in a marginal or new segment of the market and then fundamentally changing the nature of the market.”
We don’t have to look far back to find examples of that type of disruption. Amazon challenged other retailers by introducing a new way for consumers to shop. Netflix became dominant by rapidly adapting to the rise of online streaming. Often, traditionally successful companies, products, and business models are rendered obsolete, or nearly so, by the disrupter.
A different type of disruption occurs when an outside force sends shockwaves through industries across the globe. A recent example is the COVID-19 pandemic, which caused rapid and extensive reorganization in the way work gets done.
All organizations, regardless of industry or size, are impacted by disruption, which is typically driven by industry leaders. These large companies impact consumer behaviors and preferences, which drive the trends that impact all organizations, including small and local businesses. For example, the introduction of Amazon years ago changed consumer behaviors and desires, which impacts all retailers. All organizations must react and respond to changing desires in consumer behavior to remain relevant.
When organizations don’t keep up with disruption, they become obsolete. Kodak, once a dominant player in the photography industry, faced disruption with the rise of digital photography. Despite developing some of the early digital camera technology, Kodak failed to fully embrace the digital revolution and continued to rely heavily on traditional film-based products. This lack of agility and adaptation to changing customer demands ultimately led to their decline and bankruptcy.
For organizations to successfully navigate disruption, they need organizational leaders who are agile and resilient.
Leaders exhibit agility through the following:
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Adaptability and quick decision-making: Adjusting strategies, approaches, and behaviors in response to changing circumstances.
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Embracing change: Encouraging collaboration, experimentation with new ideas, and continuous improvement.
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Continuous learning: Seeking to increase KSAs (knowledge, skills, and abilities) and receive feedback for opportunities to reflect and grow.
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Strategic thinking: Articulating a clear vision for the future and thinking strategically to align actions with long-term goals.
Leaders exhibit resilience through the following:
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Emotional intelligence: Demonstrating self-awareness, self-regulation, empathy, and social skills to remain composed in challenging situations.
To develop these essential traits in leaders, organizations must support leaders in their development. Here are some suggested strategies to help leaders develop these skills:
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Foster a growth mindset by emphasizing that changes and challenges are opportunities for growth. Create a safe space for leaders to discuss challenges, receive feedback, and explore solutions through coaching, mentoring, or peer groups. Encourage leaders to seek out new knowledge by attending training, workshops, or conferences.
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Support the development of emotional intelligence by offering training focused on listening skills, feedback, and conflict resolution. Help leaders enhance their self-awareness, empathy, and social skills through feedback and coaching.
Ultimately, organizations must maintain a culture that cultivates agile and resilient leaders to foster innovative thinking and adaptability, which will keep the organization thriving and relevant in the age of disruption. Employers Council offers training and events that can help your organization’s leaders develop and expand their skills. If you have any questions or would like support in developing your leaders, reach out to us.
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