Top Leadership Challenges For 2023

During the spring of 2020 with all the gyms, yoga studios and parks closed I started running to break up the monotony of my days. A day in early June, as I finished the last couple of blocks of my run, and was reflecting on the current state of the world, I kept saying to myself, “This is insane. What is happening right now is insane. How am I going to lead myself through this unprecedented uncertainty? And how will I help people who rely on me for guidance?” It was this surreal moment where I saw all these things colliding: the global pandemic, a digital-first work environment, the social justice movement, and uncertainty.

While I was stretching on the stairs outside of my apartment, I had a couple of realizations:

1. Leaders have never had to deal with more things at once. One of these challenges would have been tough, but all of them happening simultaneously is unprecedented. And senior leaders, emerging leaders, and leaders without a title need to be equipped with the internal skills to navigate this new world of work long after the pandemic.
2. The world we once knew is gone forever. COVID-19 has changed everything on multiple levels. While it was disruptive initially, it is also an incredible opportunity for those who take advantage.

While I’d never been through a pandemic, my life and work experience in many ways had prepared me to meet the moment. Leading myself and others through challenging situations — both failures and successes — was incredibly familiar to me. I was no stranger to adversity. And I knew that many of the answers were already within.

Fast forward to today, and on top of a looming recession, leaders are dealing with five major challenges.

1. THE PURPOSE CRISIS

Mckinsey found that nearly two-thirds of US-based employees surveyed said that COVID-19 caused them to reflect on their purpose in life. And nearly half said that they are reconsidering the kind of work they do because of the pandemic. Leaders can no longer ignore this, especially when managing Gen Z and Millennials. A return to the job market due to the recession, increased compensation and perks are not going to solve this long-term.

2. THE ENGAGEMENT DILEMMA

Second, companies are working harder than ever to retain and engage their existing population of employees. Global employee engagement is at an all-time low costing companies $7.8 trillion annually.

3. THE WAR FOR TALENT

Companies are also fighting for a smaller pool of qualified talent and to retain the top talent they currently have. COVID-19 changed what current employees and job seekers need, expect, and want from their work experience and those that lead them.

Companies and leaders need to create a work experience their people can’t wait to talk about.

This starts with the human connection that makes people feel like they belong to something bigger than themselves.

4. LEADERSHIP MINDSET

Mountains of research show senior and emerging leaders are not equipped with the skills for the future. Business schools traditionally cover skills like strategy and are missing out on the heart-centered leadership skills that research shows are increasingly important. A Forbes article argued that empathy is the number one leadership skill required in today’s world of work. According to a recent Fortune survey, only 7 percent of CEOs believe their companies are building effective global leaders, and just 10 percent said that their leadership development initiatives have a clear business impact. And, MIT Sloan Management Research found that only 12 percent of respondents strongly agree that their leaders have the right mindsets to lead them forward. It’s pretty apparent that organizations don’t feel their leaders are equipped to lead into the unknown.

5. LEADERSHIP BURNOUT

On top of these challenges, leaders are dealing with burnout at incredibly high rates. According to a Forbes article “Nearly 60% of leaders reported they feel used up at the end of the workday, which is a strong indicator of burnout.” A byproduct of stress, CEOs also experience depression at a rate double the average population.

Unless leaders address these internal challenges — like purpose, burnout, and mindset — they aren’t going to be able to keep their current people engaged, activate high performance, or attract top talent to be competitive in the marketplace.

THE OPPORTUNITY

Despite these challenges this moment in time presents a massive opportunity: Gen Z and Millennials want their work to contribute to something bigger than themselves, be a place they belong, and have a leader who can guide them on their personal and professional journey. If you can create a culture that provides those perks, you can set yourself up to win in the future marketplace. The question is this: Will leaders and organizations stay stuck in past paradigms, or will they level up for the future?

WHAT MOST PEOPLE DO NEXT

If you’re a leader looking to address these challenges with your organization or association event one of our programs might be the ideal next step. Your people will be you’ll be equipped with some of the same mindsets, strategies, and exercises I’ve shared through keynotes, workshops, and coaching with individual contributors and leaders at Fortune 500 companies and leading industry associations. Some of these include the likes of IBM, AmFam, Cisco, Morgan Stanley, and SHRM. And when you activate these principles, you can set yourself up to inspire, impact and influence your people, your organization, and maybe even the world.