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Between artificial intelligence, soft skills and Gen Z: how leadership should be rethought

An analysis conducted by consultancy firm Buono & Partners argues that traditional models based on authority and control are proving less and less effective in managing the new work dynamics and focuses on the crucial role of soft skills

21 October 2024

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Is it really a radical transformation that is affecting the concept of leadership (and its application) in today's increasingly complex and hybrid work context, marked by the increasing pervasiveness of digital technologies? It is hard to find arguments to the contrary, and even the recent survey conducted on more than 650 Italian C-Levels by the consultancy firm Buono & Partners in collaboration with YOURgroup and Eggup (Zucchetti Group) goes to confirm how the concatenation of several 'disruptive' phenomena (the pandemic, the large-scale diffusion of artificial intelligence and the entry on the scene of Generation Z) has further accelerated the need for a rethinking of the concept of leadership.

Traditional models increasingly less effective

The analysis takes as its starting point the observation that traditional models based on authority and control are proving less and less effective in managing the new work dynamics and focuses on the crucial role of soft skills as a resource for defining a leader's effectiveness. Emotional intelligence, empathy, active listening and cognitive agility, reads the note accompanying the study, are the skills that enable managers not only to manage crisis situations, but also to create working environments that foster innovation and collaboration among employees and in which uncertainty is seen not as a threat but as an opportunity. New leaders are therefore required to find inspiration, involvement and continuous adaptation and the report, in this sense, has highlighted the personality traits that are most relevant for managerial success, analysing them through five specific parameters (energy, friendliness, responsibility, emotional stability and open-mindedness) and identifying both the most useful traits for leading a team or an organisation and the possible negative consequences of these same traits, from the risk of burnout to excessive condescension and the slowing down of processes.

The challenge that calls upon the figures of reference in the company is played out on several levels and one of these concerns the ability to develop a leadership that is balanced but at the same time conscious and determined, capable of maximising the benefits of personal characteristics and that goes beyond the simple decision-making role to take on that of facilitator of change and motor for the active involvement of teams.

The underlying objective is, nevertheless, to lead companies with a well-defined purpose, an aspect that is becoming central to modern leadership. In fact, an increasingly marked trend sees a concrete commitment to the achievement of objectives (social responsibility, environmental sustainability and positive contribution to society) that transcend immediate profit becoming more and more the beacon that guides long-term decisions and strategies. And it is an approach, which elevates purpose to a virtuous instrument in the hands of leaders, particularly relevant with respect to the impact of the expectations of the new generations (profoundly different from those of mature workers) on the customs that govern life and relations within a company.

The journey towards a new flexible leadership is a long one and does not hide pitfalls, especially in those companies where the top figure is not a manager but the classic 'old style' entrepreneur (by mindset, by training, by experience and, not least, by age).

How to meet the challenge of change

How do you face the challenge of change in these realities? To this precise question, Benedetto Buono, founding partner of Buono & Partners and Director of the Professional Program in Business Networking at the POLIMI Graduate School of Management, acknowledged how "in organisations anchored to a hierarchical type of leadership, which is still widespread in several small Italian realities, change is always difficult to achieve. Models based on authority and control, which were dominant in the 1980s and 1990s, are today totally ineffective in the face of challenges such as the advent of AI or the entry of new generations into the world of work'.

In family-run Italian SMEs, this is the picture taken by Buono, centralised control is a constant risk, even though, through generational change, things may improve. The challenge, in these contexts, is accentuated by the tendency of many entrepreneurs to preserve traditional practices and limit creative and collaborative exchanges with the outside world. "The introduction of a more open approach," the expert concludes his analysis, "requires not only the willingness to delegate, but also the active involvement of young people, who bring a more agile mentality suited to leading the transformation process, a requirement often lacking in companies where leadership is centralised on a single figure.

Equally decisive is the challenge related to the impact that AI and generative artificial intelligence will have on the world of professions. Will training and reskilling be enough to prepare the workforce to lead this transformation? And will this new 'technological revolution' be an opportunity to enhance and valorise young talent? "This is a particularly relevant issue for Italy, a country where meritocracy and youthful talent have traditionally been neglected compared to the still fundamental value attributed to the experience factor, which will still be relevant in the future, but will no longer be sufficient on its own: flexibility, the ability to learn quickly, and cognitive agility will be equally fundamental', Buono observes.

In an economic and corporate fabric like ours, this is the report's final assumption, tomorrow's leadership will therefore have to strike a balance between the recognition of established skills and the ability to adapt quickly to technological change. Leaders with these qualities, not surprisingly, will be able to understand the potential of Gen AI and lead their teams on a more innovative and competitive development path, exploiting the capabilities of digital tools to more clearly and transparently measure performance based on data, to the benefit (at least potentially) of enhancing merit and talent. And in this same scenario, reskilling and continuous training will become essential not only to keep the current workforce relevant, but also to create spaces where young people, with less experience but more familiar with new technologies, can emerge and contribute to the success of Italian companies, especially small and medium-sized ones.

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