Transformation & Leadership
Executive Summary
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Kingsley Gate Partners has conducted a study involving 538 executives from Argentina, Brazil, Chile, Colombia, Spain, Mexico, Peru, USA, and Venezuela, to understand the impact of the Business Model Transformation Process on the Leadership Style, Company Culture and Talent Value Proposition.

This investigative study is based on the hypothesis that culture and leadership are the two essential axes on any transformation project. These axes share a reciprocal interrelationship that results in a new Value Proposition for Talent as a necessary and valuable response to attract, retain and keep committed an increasingly scarce and restless talent that precisely for this reason, of high value to work on innovation and the creation of new opportunities, should exist without neglecting efficiency and high-performance strategies.

The essence of leadership is managing culture, and the essence of culture is enabling leadership to achieve its full potential. We know that the current business culture models are at an inflection point. On the one hand, disruptive technologies are accelerating the change in consumption habits and business opportunities, while requiring greater agility in the “Go to market.” It requires a type of agile talent that must develop its activity in a different way. But this talent, in turn, demands greater freedom, flexibility and autonomy to work where and when it is most productive, placing a special interest in the pursuit of well-being and in finding a genuine purpose that gives meaning and sustainability to their commitment.

Main Conclusions

1. Transformation is a reality and it is already happening.

81% of the participants believe that the transformation of their company’s business model is already happening

2. It’s time to transform the culture!

77% believe that this transformation has a very significant impact on the organization’s culture. 84% say that culture is a conditioning or critical factor for the success of the transformation process.

3. Focus on adaptability, creativity, and the way to lead.

Participants identified the organizational and personal capabilities they consider key in this environment: 1) Flexibility and adaptability, 2) Creativity and innovation, 3) Transformational leadership that connects the best talent with the company’s purpose.

4. The change in culture will necessarily change the profile of leaders.

The cultural transformation will have a major impact on the profiles and behaviors of the organization’s leaders, according to 73% of the participants.

5. Companies still don’t have the right leadership to deal with the transformation.

55% of the participants consider it necessary to make a change in the leadership of their organization, aiming to strengthen the essential capabilities for transformation: 1) Strategic vision, 2) Communication skills and flexibility, and 3) Connection with people and credibility of leaders to achieve adherence to change.

6. The Value Proposition for Talent matters—it matters a lot!

72% of the participants highlight the Talent Value Proposition (TVP) as particularly important, considering the following aspects as the most relevant (in order of importance): 1) Culture and work environment, 2) Company reputation, 3) Purpose and values, and 4) Compensation and attractive project.

7. Generational and Cultural Diversity is now even more important than Gender Diversity.

39% of respondents put Generational Diversity as a priority, Cultural Diversity in second place with 34%, and Gender Diversity in third place with 26%.

8. Work is no longer “just” a time or place.

Hybrid models are clearly seen (88% of respondents) as the most appropriate for creating environments conducive to creativity and innovation, as well as value propositions that respond to the preferred format for working on talent that is both essential and scarce.

Different challenges and priorities by country and industry

Analyzing the information in sufficiently representative segments, we find interesting differences in the level of implementation of cultural transformation, both by country and region and by industry. It is also evident that the leadership elements that are considered to be the highest priorities for development, are different in the different segments of the sample:

Still far from the ideal level, Iberia and Mexico are leading the transformation. Latin America and Brazil face a major challenge.

When it comes to culture as a lever to achieve strategic objectives, Iberia with 37% and Mexico with 24% report high alignment between current culture and strategic objectives. Latin America and Brazil are the regions that most need to work on culture change if they want to achieve strategic transformation. ATHENA, Kingsley Gate Partners’ culture assessment platform, shows results that are very consistent with those perceived by the executives participating in the study.

The technology industry excels at cultural change. Challenge for: Agribusiness, Education, and Entertainment.

When analyzed by industry, the Technology sector shows the greatest strength in cultural alignment, with 62% of executives agreeing that their companies have the right culture to achieve their strategic goals. In contrast, the Agribusiness, Education and Entertainment sectors report a huge gap between the current culture and the culture needed to achieve company goals. Retail and Consumer Products are at an intermediate level of cultural evolution.

Any transformation inexorably requires a change in culture, but this is only possible if the leader and his management team consistently modify the way they lead, transmitting a “New Leadership Model” the values and behaviors that reinforce the new culture. Transformation begins with yourself. As Wayne Dyer said, “When we change the way we see things, the things we see change.” What are the priorities in leadership development?

Strategic vision, flexibility and adaptability, communication and transparency, outreach, and humanity.

The participants’ responses are very similar regardless of region and/or industry, even when we asked the double question, “Which ones are needed in the business world and which ones are priorities in your organization.” The conclusion is that in times of uncertainty, leaders who know how to “navigate” with fewer references, and with long-term vision, are more appreciated than ever. But the visionary leader must know how to question himself, and not be so attached to a single strategic scenario that he neglects the necessary adaptation to emerging changes. He is not a solitary leader, he is a leader who constantly seeks transparent, two-way communication, who maintains a close attitude based on empathy and humanity. Ignoring borders, or the differences between sectors, we are sure that the vast majority of professionals would be engaged and give their best if they had leaders like this.

Transformation & Leadership
The Study
The Inflection Point

Why do we call it transformation when we should call it disruption?

Go Big or Go Home with Digitalization

How important is Culture in transforming business models?

A New World: New Business Models

How relevant is leadership style in transforming the business model?

Tying It All Together

Is it time to rethink the Talent Value Proposition (TVP)?

A New World: New Business Models

What differences are observed by region in the Talent Value Proposition?

Tying It All Together

Final Conclusions