Gartner research found that businesses are now facing 10 transformation projects every year – up from just two in 2016 – while our own survey revealed that HR leaders believe the majority of organisational changes will require novel solutions and complex thinking to overcome.
Faced with so much change, 45% of CEOs believe their business will become unviable within a decade, and so it comes as no surprise that 79% of Executives say innovation is a top three priority in their organisation. As they contend with an array of complex challenges, including a constantly evolving marketplace and a need to remain competitive, leaders are focusing their efforts on ‘the new’ – whether that’s breaking into new markets, developing new products or utilising new distribution channels.
There is a definitive need to adapt and innovate to ensure business survival, and adopting a growth mindset in leadership will be crucial to achieving this goal.
What is a growth mindset?
A concept first developed in 1999, growth mindset refers to our individual attitudes and beliefs that guide us as we face daily challenges or situations – and should never be confused with one’s personality. While our personality is fixed, our mindset can shift, and to embrace a growth mindset is to accept that our ways of thinking and behaviours should flex and adapt to the context of any given situation.
To successfully navigate and manage exceedingly complex change within the world of work, leaders must be willing to embrace change within themselves – especially in their approach to work. People can unlock hidden potential simply by demonstrating a willingness to alter their mindset – focusing on growth and development through hard work and purposeful practice, instead of relying on given talent and believing that who they are (their personality) defines how they behave.
How does having a growth mindset help leaders drive success?
Our Leading with Impact research identified that in order to lead effectively in today’s working environment, business leaders must possess certain characteristics and demonstrate specific behaviours.
A world-class leader is committed to pursuing personal and professional development, can adjust to ongoing change, and welcomes external perspectives and insights to support key decision-making processes. They facilitate connection in their teams and beyond by engaging everyone on a shared vision or goal; they foster innovation by creating an environment of learning where new ideas can be confidently tested, and they demonstrate a willingness to give and seek feedback as a means of learning from mistakes.
And as all these traits and behaviours directly align with what it means to have a growth mindset, it’s clear that a leaders’ attitude and beliefs have a direct impact on the way they perform in their role, and in turn, can determine whether an organisation succeeds or fails. In fact, Matthew Syed Consulting’s research found that when a company embraces a growth mindset and creates a culture of learning, they are 30% more likely to be a market leader, and their employees are 49% more likely to say their business fosters innovation.
Which is why, when supplemented with other qualities and behaviours, a growth mindset is a critical enabler of effective leadership; and any leader that is willing to change their attitudes and beliefs (conscious or not) will be far more effective at enhancing individual, team and organisational performance.
But how do you facilitate and measure a mindset shift in business?
Matthew Syed Consulting have developed a psychometric tool – The Mindset Advantage – that is designed specifically to measure and build a growth mindset at an individual, team and organisational level; and have identified 9 behaviours and 6 cultural characteristics that directly influence business performance.
Resilience, an appetite for learning and a desire to innovate are all essential for leaders to drive results. While an organisation must build a culture of trust and a sense of freedom for their people to work under; support calculated risk-taking in pursuit of innovation; and value their employees’ desire to develop by involving them in key decisions.
With measurable actions for both organisations and people to recognise and practise, mindset – a somewhat abstract concept – acquires a sense of tangibility. The impact of leaders adopting a growth mindset can then be assessed and quantified, enabling a culture of learning that supports long-term success to be cultivated and refined over time.
For real-life examples of how building a growth mindset has improved the fortunes of organisations across the world, as well as further insight into the positive impact it could have on your business and people, watch our latest on-demand webinar.
