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Beyond Profit: Shifting Leadership Focus for Stakeholder Value and Impact

Embracing Change: Pioneering a New Era of Value Creation and Impact

Five Leadership Shifts in the Era of AI (2)

Based on the article of New leadership for a new era of thriving organizations by Mckinsey & Company


Embracing Change: Pioneering a New Era of Value Creation and Impact

For decades, leadership has been solely focused on driving profitability for stakeholders, guided by a preservation mindset. However, in today's interconnected world powered by advanced AI technology, this narrow-minded approach limits opportunities and shuts the door to new possibilities. It's crucial for leaders to navigate this era of disruption with an open mind, embracing the potential for broad and transformative outcomes.

The old ways of doing things are no longer sufficient. It's time for leaders to adopt a new approach that embraces sustainability, inclusivity, and value creation for all stakeholders. The focus should extend beyond maximizing profits and encompass the pursuit of greater value and impact for employees, customers, communities, and society at large.


To successfully lead their companies through this shift, leaders must evolve from being mere managers seeking incremental improvements to becoming visionaries with the courage to craft a noble purpose and pursue a future that benefits all. This requires several three key components by maximizing


1. Value Creation: It's essential to define the value that will be created for all stakeholders, using key operating and financial metrics as measures of success and maximize the value creation.

2. People’s talent usage: Leaders should harness the unique talents, strengths, and experiences of their teams, maximize people’s talent usage by aligning them around a clear and shared purpose and aspiration.

3. Contribution to the world: Leaders must ensure their organizations make positive contributions to society and the natural environment, acknowledging their role and responsibility in the larger ecosystem and contribute the best to the world overall.


A remarkable example of bold intention shaping success is the rise of Netflix. While initially centered around shipping DVDs, the company's co-founder and then-CEO, Reed Hastings, envisioned a different future: "The dream 20 years from now is to have a global entertainment distribution company that provides a unique channel for film producers and studios."


Netflix's leaders ingrained this vision, purpose, and stakeholder impact deep into the company's culture. As the company transitioned to streaming content directly to consumers, ceased DVD distribution, and ventured into original production, employees understood they were fulfilling a bold ambition. Consequently, Netflix generated enormous value for all stakeholders, including customers, investors, creatives, producers, actors, and writers. In just six years, the company tripled its revenue, increased earnings by 32-fold, and achieved a staggering share price growth at a compound annual growth rate of 57 percent, far surpassing the S&P 500's 11 percent.


Now, it's time for you to reflect: Are you thinking boldly enough? Are you ready to shift your focus to a broad range of stakeholders, opening your mind to new possibilities and creating more meaningful impacts on society? By embracing this shift, you can ensure that everyone benefits from your organization's growth and contributions.

If you haven't started yet, there's no better time than now to rethink your focus and make this transformative shift happen. Embrace the power of AI, unlock the potential for stakeholder value and impact, and lead the way towards a brighter future.

May you grow to your fullest in leadership

If you want to have a group of people to support so you can share your roadmap, goals, celebrate your wins together, please join Grow to Your Fullest Circle.


*** Please DOWLOAD the FREE document, Find your signature vision questionnaires so you use it to help you find your life vision and mission.

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