How is management changing in the 21st century?

As the world changes, so do the manager's work. Other abilities and skills become more critical for him; he has to focus on other things than in the past. What direction should managers look when planning their development to move in step with the times?

Decision-making using data analytics

Previously, managers relied mainly on intuition when making important decisions or consulting with the team. The advent of modern technologies has added another option that provides many perspectives.

Data analytics can also help in talent management: after all, companies that employ highly paid specialists, in particular in the IT field, always face questions: are we getting an adequate return? How to effectively manage the "spare bench"? Can we quickly integrate the "reservists" if we receive a large order? That is why people management is one of the most promising data analytics applicationsin Western countries.

"Analytics allows a manager to feel "at the tips of his fingers" what his business lives and breathes. But for this, you need to adjust it, build a system that will allow you to respond to changes in the market situation, and even better - self-study." Therefore, companies need to invest time and effort in building analytical competence - because it becomes necessary for making management decisions.


Responsibility in different dimensions


How to explain the increase in the value of the Tesla company by 300-350% per year (at the same time, for an average organization, this indicator is considered good if it reaches 10-15%)? The reason may lie in the ability of this business to create revolutionary changes in the future, adapt to market needs, quality of management, and focus on ESG indicators. All these factors affect capitalization today.

The European Union has announced a goal to become climate neutral by 2050. In 30 years, the EU economy should become completely "green." It requires all managers to act today by changing how their facilities, suppliers, etc. operate.

Leaders can no longer afford to ignore climate-related challenges as their number continues to grow. For example, according to the Institute for Economics and Peace, the number of incidents increased from 39 in 1960 to 396 in 2019.

Understanding how your business affects the environment and planning to change the situation for the better is the least a manager should do today.

Interaction with the community is now another component of managerial responsibility. You need to connect with her if only because, according to the Edelman Trust Barometer, the pandemic has negatively affected people's trust in institutions, corporations, and even religious figures. Globally, nearly two-thirds (62%) of people trust local community leaders more than company CEOs or politicians.


Flexibility of thinking


Everyone knows that the pandemic has accelerated the automation trend, but only some realize to what extent. Many businesses have done what they had planned for years ahead in a few months. And this is just the beginning. In particular, according to McKinsey, some companies digitized 20-25 times faster than previously thought possible! The trend will continue: another McKinsey survey found that 75% of executives in North America and Europe expect increased investment in new technologies at least until 2024. It is mainly about automation and the introduction of artificial intelligence.

At first glance, it may seem that automation simplifies the manager's life. After all, more cars mean fewer people, and driving cars is much easier. However, on the other hand, automation requires more skilled workers and can be more challenging to manage. They think more complexly, looking for the best use of their talents, so keeping them can be difficult.


Where do technology and man meet?


On the one hand, there are currently few analysts on the market who understand business problems and, accordingly, can form models to solve them. On the other hand, there is yet to be an artificial intelligence that understands what the company needs (but if you give it the right task, it has about a 50% chance of completing it).

If a leader has both "right-hemisphere" and "left-hemisphere" thinking abilities, he gets much more opportunities. He listens and understands people better, his repertoire of solutions is much broader, and he can apply everything he knows to find a solution to a problem. And he is better at forming a team because he sees holistically - what competencies it lacks.

Business today operates in a complex, unpredictable world. And at the same time, it is a complex system itself. To manage it, more than one point of view is needed. Inviting consultants (even from the "big four") is also not enough because the result will be only one point of view.