Trusted advice for effective leadership

“When the map differs from the terrain, you’ve got to go with the terrain.”

That’s sound advice on navigating a successful path along the leadership journey from Eric T. Olson, a retired U.S. Navy admiral. Olson is one of the contributors to McKinsey’s latest book, The Journey of Leadership.

The Journey of Leadership brings together insights into the personal and professional transformations that can make leaders successful. Drawing on learnings from a decade of Bower Forum events—McKinsey’s CEO leadership program—it has been written to catch attention in a sea of leadership books by sharing the individual experiences of CEOs.

Olson recently joined Mark Fields, formerly of Ford Motor Company, and Hans-Werner Kaas, senior partner emeritus of McKinsey and book co-author, to share leadership stories—including some that aren’t featured in the book.

On The Journey of Leadership
Several highlights stood out during their wide-ranging conversation, including what makes this book different from others in the category.

Hans-Werner Kaas: The common theme running through the Bower Forum program is to be a human being first and embed human-centric behaviors—like humility, vulnerability, empathy, resilience, versatility, and caring—in your approach. That has framed our core insight in the book.

Eric T. Olson: Too many people are in love with their map, with the doctrine, with their own ideas, with the way they did it last time. Books on theoretical leadership address the map. This book addresses the terrain.

Mark Fields: You're not reading a textbook. You're reading real-life experiences. People really respond to storytelling, and this is about individual storytelling, about leadership.

On continuous feedback
There are times when leaders need to approach a situation differently. When Fields moved to Japan with Mazda, he needed to learn and understand a new set of cultural norms to be successful. Even when a leadership role is approached with humility, there are still lessons to be learned.

Mark Fields: When I first became a manager at Ford, they said, “We're going to do a 360-degree review for you.” Two weeks later, I got the report back. I started reading it, and after the second page, I thought, “They gave me somebody else's report, because this isn't me.” The way people were experiencing my leadership was not the way I thought they would. It was a huge eye opener for me.

My advice is don't wait for the annual report, that 360-degree review. Find somebody who can give you continuous feedback. Find that anywhere you can. It's clarifying. It's humbling. It keeps you grounded.

Hans-Werner Kaas: Talk to the people you trust most and ask them how you are doing as a human being. Mention some of the qualities we describe in the book. Then, also ask them how you are doing as a leader.

On technology
Delving into technology, no longer just a topic for IT departments, there was a range of views on the application of technology and the arrival of gen AI in particular.

Hans-Werner Kaas: Gen AI and predictive AI do not have to be and are not the enemy of human-centric leadership. On the contrary, all of us as leaders can free up time with intelligent use cases of gen AI to expand our knowledge and access critical information in a timely and effective manner. As a senior partner emeritus from McKinsey, I have committed to a principle that says I return every call from younger McKinsey colleagues or younger folks in general reaching out and asking for advice. Gen AI has real use to me in helping to free up my schedule and allocate time to call people back for coaching. That said, I believe in the “hybrid model,” to augment AI-based learning with human intelligence and human-centric leadership.

Eric T. Olson: I have a love-hate relationship with AI. It compiles, analyzes, and uses data, but it can't think the same as humans can. I hope that we don't count on AI to do too much of our jobs for us. But we also can't put curbs on it. We can't limit it. We can't make people afraid of it. We have to embrace it, expanding our own knowledge and our own training so that we are truly AI smart.

Mark Fields: As the CEO, you don’t need to have all the answers, and you can be a little vulnerable. Acknowledge that new technologies are going to be important to the business. Share the questions that you're working through. Underscore your commitments to having this discussion as a company and keeping employees apprised along the way.

On diversity, equity, and inclusion (DEI)
On the topic of DEI, data shows that the more diverse a company is, and the more diverse a boardroom is, the higher that company performs. However, for DEI initiatives to truly drive transformational impact across a company, they need to be embraced by leaders. It is only when they are that the true effects can be felt. Olson’s story about his attendance at a military parade perfectly illustrates what can be achieved when DEI policies are put into place and supported by leaders.

Eric T. Olson: They started admitting women to the Naval Academy three years after I graduated, and I heard a lot of resistance. But I went to a parade a couple of years ago, and every voice I heard yell an order that day was female. The superintendent shared that while 25 percent of the Brigade of Midshipmen was female, 42 percent of the leadership positions were held by women. The women wanted to make the most of every leadership opportunity they were offered, and in the Naval Academy, women perform so well that it forces everyone to operate at a higher level.

Hans-Werner Kaas: McKinsey has done a lot of research around high-performing organizations, and those organizations truly embrace DEI. Many do not start with that truth, but rather see DEI as a mechanism imposed on them. I have been in meetings with senior executive teams where DEI was squeezed into the agenda as lip service. There was no genuine intent, and the conversation never started with the impact or the results of DEI. Even investor communities expect organizations to fulfill a certain quota. It has never started with the effects of DEI, and that is the downfall.

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For additional insights and reflections—and to learn more about McKinsey’s step-by-step, inside-out approach to transforming leaders—read the book, The Journey of Leadership.

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