Rune Todnem By: How You Can Provide EPICally MAD Leadership

During these uncertain times, organizational leaders are under pressure to perform their best as the world moves into a more digitalized and sustainable direction. The development of technological literacy has become increasingly important, in addition to soft skills such as adaptability, agility and empathy.  

What challenges lie ahead of leaders today? What aspects of current leadership practices need to change? Rune Todnem By, Professor of Leadership at the University of Stavanger provides illuminating answers to these questions and more.  

 

The Greatest Leadership Challenge Moving Forward 

 

By argues that the main challenge lies in the very core of how we understand and practice leadership.  

The greatest challenge is not globalization, COVID-19, digitalization or any other current event, but rather that we currently have a very narrow and limiting understanding of leadership.” He refers to the tripod understanding which consists of the relationship between leader and follower, and the delivery of shared goals. This concept, being the basis for almost every single leadership theory and practice results in behaviors that are traditional, conservative, and limiting.  

It also leads to monopolizing the doing of leadership to a small group of individuals – who are in fact no more capable or ‘special’ than anyone else. Often, they just happen to be white, middle-aged men with privileged backgrounds. We are quite simply not as equal nor diverse which we so often like to think we are.” 

We are tied up in an outdated understanding of what is leadership. This does not bode well as it prevents us from finding the best solutions to the challenges ahead.” 

Professor By dissects the tripod understanding of leadership further by explaining why ‘follower’ is not a positive word. He suggests it implies that “most of us do not have a mind of our own, cannot contribute independently, and require someone – a ‘leader’ to push the start button for us to wake up in the morning.” 

Additionally, he argues that shared goals are often not shared at all. “These goals are decided by someone else in an organization for reasons of short-term profit-making and efficiency gains. Organizational members do not have any shared ownership of these goals because they were never discussed with them.”  

Therefore, it becomes very difficult to contribute to the delivery of such ‘shared’ goals as most employees can simply ask “Why should I contribute to something I don’t understand I was involved with or agreed to?” 

Addressing this challenge 

When By gets invited by an executive group to give a talk, he will first ask them for a definition of ”leadership.” 

They end up not defining ‘leadership’ but ‘leaders’, in terms of their skills and characteristics,” he says.  

The solution to this challenge starts by understanding that leaders and leadership are not one and the same. Many leaders do not provide leadership, and many who do provide leadership do not perceive themselves as leaders. By says that people get surprised about this difference because “we were brought up in a society where it is suggested that leadership is something only leaders do.” 

Changing the language used to understand leadership is essential. By mentions that “there are alternatives out there” and recommends a 2008 study by Drath et al. on the DAC ontology which stands for Direction, Alignment and Commitment. To shed light on the DAC alternative, By has further developed the model in his recent 2021 article, Leadership in pursuit of purpose, calling it the Purpose, Alignment and Commitment (PAC) model. 

Purpose is much bigger than just direction. Direction is something that can be changed in order to deliver on purpose,” he says. When leaders ask themselves “Why do we exist as an organization?,” it should encourage them to pursue purpose beyond profit, with proof suggesting such an approach will better support sustainable profits. More importantly, this can be aligned with individual purpose which is becoming increasingly important both in recruitment and retention. By suggests that organizations need to start focusing on providing people with a purpose rather than a bonus.  

 

What It Means to be EPICally MAD

 

A highlight of Professor By’s work is the concept of EPICally MAD as presented at TEDxStavanger:  

for Energy:  

By likens human beings to a fully charged battery after a good night’s sleep. “Our batteries should be fully charged, and it’s up to us how we want to spend this energy,” he says. He reminisced about being a founding member of the Public Leadership Foundation (PLF), where responsibilities were allocated based on what provided members with energy. “For example, I’m not good with numbers but it energizes other people! So, they took that responsibility. The way we work, support and challenge one another should be done in an energizing way.” 

for Purpose:  

We all have a purpose in life. We just need to discover it – and the same goes for organizations.” By says that there is nothing wrong with making a profit. In fact, it is a necessity for organizations in the private sector. “We should acknowledge and adopt the power of profit AND purpose. Having a purpose beyond profit is a strength, not a weakness.” He adds that organizations can base recruitment, advancement and bonuses on such a purpose, a purpose which should “last for a minimum of 100 years and which is bigger than any new CEO.” Tables have been turned in the job interview setting, where candidates are now the ones asking hard-hitting questions on purpose. “They ask, ‘Why do we exist?’, ‘What are we doing to improve the environment?’, ‘What are we doing to improve diversity? Why should I work with you?’” 

for Identity:  

By says that a lot of business schools take an approach of “being factories churning out people that are leaders who look and think the same”. “I don’t think it’s our place in business schools or in HR to tell people how to dress or which skills and characteristics we need to copy from some ‘great’ leader or another.” Instead, HR departments should facilitate people to become the best versions of themselves. Professor By suggests we forget about “transformational and transactional – yes, even servant leadership,” and focus on the production of Purpose, Alignment, and Commitment. 

for Courage:   

This is about the courage to be yourself and stand for your purpose and core values,” By says. He provides an example of a meeting when the topic of XYZ was being discussed. “You find yourself not knowing what is being discussed but everyone else – including those you later found out were as bewildered as yourself – are nodding along, nobody daring to ask questions because they’re scared of looking stupid.” It takes courage to ask, and it takes courage to support the first one asking if it isn’t you. 

Ally is a glue word and is about working together with others towards delivering on a common purpose. “We don’t have to be like-minded or come from the same background, but we’re allied in the belief of purpose.”  

Professor By hopes that the idea of everyone being EPICally MAD can be adapted into HR leadership development programs or employee induction programs in the future.  

 

Leadership is a Collaborative Effort

 

The University of Stavanger and the Nordic Institute for Studies in Innovation, Research and Education (NIFU) were recently successful in their application for the UNESCO Chair on Leadership, Innovation and Anticipation. 

We are integrating the concept of future literacy in the chair under Anticipation. It’s about anticipating different futures knowing it is not set and that we all have a responsibility making it what it will be.” 

In partnership with UNESCO, Professor By and the University of Stavanger, and NIFU hope this Chair can be used as a vehicle to work with a range of organizations in true partnership developing both leadership and leader development programs fit-for-purpose moving forward. The next stage of the project is to identify partners to design, run and test new leadership and leader development programs with. This project will also integrate the PAC model to help employees see the link between themselves and their organizations.  

When asked about the biggest lesson from the pandemic, By says that we all play a role in our organizations and society. “Performing leadership isn’t going to be successful if we continue to perceive it as a task only for ‘special’ individuals. We must expand our horizon and acknowledge leadership as a collective process where we can only achieve our full potential as individuals, organizations and society together.” 

Jori Fabricius: How Kemira Utilized Digitalization to Build a Resilient Supply Chain

After a disruptive year, supply chain & procurement companies are still reeling from the impacts of the pandemic. They continue to face obstacles in transportation and logistics, rising prices of raw materials, and shifts in customer demand.  

Supply chain leaders have realized that digitalization and sustainability efforts need to be prioritized to provide flexibility to respond to unforeseen challenges. Jori Fabricius, Senior Vice President of Global Supply Chain Management at Kemira, shares his insights on the post-pandemic supply chain landscape and its effects on tech adoption, leadership and more.  

 

The pandemic has accelerated digital transformation efforts in supply chain and procurement. What tech adoptions have been the most effective in mitigating the disruptions presented by the outbreak? 

There are many aspects to this, but what immediately comes to mind are control tower tools, visibility enabling tools and processes that support fact-based alignment across functions. The idea is to bring transparency to deviations as soon as possible and enable fast mitigations. 

  • Real-time execution controls (day to day): These were implemented at Kemira two to three years ago. The controls are nature operative and used in placing replenishment purchase orders and securing material availability. They are connected to visibility tools and alerts in real-time, providing personal dashboards that show performance and risk incidents to operators as they are happening. The addition of AI allows operators to supervise product quality and connect the dosing of chemicals.  
  • Planning tools (weekly or monthly, mid-term): These are extremely valuable as they provide optimized plans to mitigate potential or current constraints, and to enable fast cross-functional problem-solving. In Kemira, we started the implementation of upgrading the planning environment globally, which has been successfully taken into use for supply planning. 
  • Visibility tools (long-term): This is related to general aspects of performance — a good example is visualizing Kemira’s distribution networks with enriched built-in KPIs. This allows us to visually capture recent changes such as distribution cost performance, distribution distances, shipments sizes and transportation emission calculation.  

All these tools are necessary to drive performance and to enable faster, better decisions and implementations. This saves time, improves service and creates new business opportunities. Another thing to note is that these tools are highly dependent on cleansed, credible master data and one common enterprise resource planning (ERP) platform.  

 

In your opinion, how has digital transformation affected leadership roles in supply chain and procurement? 

Over my 30-year career, I think there has been a continuous change in the supply chain in terms of technology and science. In fact, the term ”supply chain management” did not exist before 1982 even though the concept has been around long before that.  

When digital transformation cracked the nut of “the distance dilemma”, the world became a smaller place and brought different cultures together. With more companies centralizing teams from their physical locations, supply chain leaders need to be culturally sensitive and emotionally intelligent to build engagement across diversified teams

Supply chain leaders also need to understand other functions better. They can no longer work in isolation. To be efficient, they need to gain knowledge on multiple industries and professions, and learn a number of skills. Going back to the tools I mentioned earlier, they are useless without analytical skills. Leaders must be adept at using IT tools because these are business-critical capabilities.  

 

Sustainability is a core part of Kemira’s business strategy and operations. Why is there an urgency for organizations to embrace sustainability and what are its long-term benefits? 

At Kemira, we can proudly say that our value system supports sustainable world thinking. One of our values is ”We care for people and the environment.” Having this value makes for a strong foundation for future sustainable initiatives.  

Other than values, we need to understand the different players around us such as our customers, investors, regulators, resource market and employees. In the last five years, investors have been putting more effort into implementing sustainability programs. No company today can say that sustainability does not have a role in their business strategy.  

In terms of recruitment, I think the fight for talent will only grow bigger as we go along. This is because the younger generation will choose companies that reflect their own values, and sustainability is a topic that comes up very often during Kemira’s job interviews.  

What do I think are the long-term benefits? I would say it is very difficult to work in this world if you are not a good citizen. Regulators, Customers and Investors for sure are moving in a sustainable direction which not only supports good citizenship but is also a ticket to a profitable business.   

 

What are the biggest obstacles when it comes to maintaining sustainability in all levels of the supply chain?  

It is fair to note that the obstacles are partly related to behavior and an individual’s value systems. It is difficult to change as culture and values always beat a good strategy. 

Because of that, I would say change management is the most difficult part as transforming current value systems may not happen quickly. Another hurdle is missing infrastructure – replacing an entire supply chain is a major change and does not happen overnight. For example, shifting from oil-based materials to bio-based ones. There is bound to be some resistance as current infrastructures have been in place for decades. Hence, leaders must implement change management carefully, taking into account regulations and investors’ needs.  

“It is easier to steer a boat that is moving and floating,” rather than one that is sinking.  

 

What can business leaders do to future-proof their supply chain and procurement functions in order to tackle unprecedented challenges? 

Organizations must be ready for a heavier fight for resources and competencies in the future. There will be market upsides and downsides, especially with leaner pipelines. Additionally, they must always develop new digital capabilities that drive business value and build engagement.  

Business leaders must also look for the best talent to join their companies but recognize that it will be a challenge. Engaged and flexible employees are role models and potential future leaders. They are usually the best people to secure an organization’s resilience and continuity.  

 

What are emerging supply chain trends in 2021 and 2022? 

I believe there are two main trends supply chain leaders should look out for:  

  • The new order after COVID-19: After 1.5 years of living in isolation and running operations, leaders need to reflect on the lessons learned from the pandemic. It has been no doubt a tough time for organizations. However, it is time to truly understand the phenomenon itself and to build a sustainable working model. 
  • Digitalization remains strong: There will be more choices for digital applications in operative work, like pricing tools. Procurement and sourcing platforms will also accelerate B2B integration and collaboration, and support building communities.  
 

*The answers have been edited for length and clarity.  

Lokke Moerel: Digital Sovereignty and the Changing Landscape of AI & Privacy Laws

As we enter the second half of 2021, it’s becoming evident that societies worldwide embrace digital transformation as part of their everyday lives. This is backed by the fact that half of the world now uses social media and at least 4.66 billion people around the world now use the internet.

However, as societies become more digitized, the vulnerabilities that come with it also increase. From malware attacks that rose by 358% to a significant increase in risk of successful ransomware attacks due to remote working during Covid-19, to difficult-to-combat online conspiracy theories of the anti-vax and anti-5G movements, stimulated by Russian infiltration.

Lokke Moerel, professor of Global ICT Law at Tilburg University and member of the Dutch Cyber Security Council, shares her insights into the need for digital sovereignty within the EU and how AI and privacy laws are changing rapidly due to digitization.

 

Accelerating Digital Sovereignty across Europe

 

In today’s increasingly digitalized landscape, more and more users feel the need to keep their data safe and are willing to leave popular platforms, such as Whatsapp, based on a change of privacy terms.

With 92% of Western data being kept in the US, EU nations have realized the need to adopt a joint strategy on how data is controlled and shared. While fostering the Digital Single Market is needed for innovation to thrive, effective safeguards must be placed to protect users in a data-driven world.

Lokke goes into detail about how the current situation has exacerbated the need for digital sovereignty in the EU, particularly for the Netherlands as advised by the Dutch Cyber Security Council.

 

Europe has been focusing on digital sovereignty and recently, the Dutch Cyber Security Council issued public advice that the digital sovereignty of the Netherlands is under pressure. What does digital sovereignty mean?

 

We are one of the most digitalized societies and this has been accelerated by the Corona crisis. Within no time, people worked from home, and children were schooled online. It was amazing to see how quickly we were up and running again. However, every upside has downsides and we saw new vulnerabilities and dependencies. 

  • A tremendous increase in the activities of cyber criminals abusing the vulnerabilities due to remote access to systems when people worked from home.
  • Foreign states stealing COVID-19 research
  • Flaws in privacy and security of video tooling.
  • More data on children are in the clouds of non-EU providers due to the increased use of digital teaching tools.
  • The dependency of the Netherlands on social media platforms for combating misinformation and the lack of control from the government to combat it.

The core message of the public advice of the Council is that our digital dependencies are now so great that the digital sovereignty of the Netherlands is under pressure. This goes further than guaranteeing the cybersecurity of our critical IT systems and the data generated with these systems. We also need to maintain control over our essential economic ecosystems and democratic processes in the digital world.

 

Can you give us examples of how digital sovereignty (or lack of it) can affect the economic ecosystems and democratic processes?

 

Examples of essential eco-systems:

Lack of control over critical technologies will result in new dependencies. For example, without proper encryption, we will not be able to protect the valuable and sensitive information of our governments, companies, and citizens. Current encryption will not hold against the computing power of future quantum computers.

We will therefore have to innovate now to protect our critical information also in the future. This is not only relevant for future information, but also current information. Do not forget that foreign states systematically intercept and preserve encrypted communications in anticipation that these may be decrypted at a later stage. 

To be able to make large-scale use of data analysis using AI, enormous computing power is required (which requires cloud computing) as well as access to large quantities of data, which will require combining data in specific industry sectors (such as health), which is currently difficult.

Efficient access to harmonized data and computing infrastructure will become the foundation for the Dutch and European innovation and knowledge infrastructure. Maintaining control over this is an essential part of our strategic autonomy.

Examples of democratic processes: When the state is not in control over the election process, due to targeted misinformation and systematic infiltration of social media by foreign states to influence citizens, our digital sovereignty is at stake.

We see that digital sovereignty is very high on the EU’s agenda. For our neighbor Germany, for example, it is Chefsache. In the Netherlands, however, we mainly respond to cyber threats in a technical and reactive manner. We respond in crisis mode. 

The council thinks it is high time for a more coordinated and proactive approach, starting with ensuring three basis facilities: sovereignty-respecting cloud for secure data storage and data analysis, secure digital communication networks, and post-quantum cryptography.

 
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CISO and Their Roles in Digital Sovereignty

 

At the core of digital sovereignty issues is the need to safeguard information assets for European countries.

As the Netherlands continues to build upon its Dutch Digitalisation Strategy 2.0 and integrate more cloud-based technologies within its economic ecosystems and democratic processes, it is up to chief information security officers (CISO) to be aware of what it all means for an organization and how it affects its cloud strategies.

 

What does digital sovereignty mean for the CISO?

 

Most governments and companies will have a corporate cloud policy. I see that these policies really try to address the direct requirements of a specific cloud project. 

When deciding whether to bring services to the cloud, the company will weigh up the benefits of public cloud (better security, better functionalities) on a project-by-project basis against the specific dependencies and security issues in the project in question.

However, considerations of loss of sovereignty are not taken into account. As a result, for each project, the decision can be justified, but ultimately these decisions together do threaten our sovereignty, where in the future you want to be able to process data across cloud solutions for example (an example of The Tragedy of the Commons).

I think it is important for CISOs to be aware of all the EU initiatives to increase our digital sovereignty.

 

What should they be aware of in terms of initiatives?

 

GAIA-X: many people think that the GAIA-X project, is about setting up a European cloud infrastructure. GAIA-X is, however, not about creating Europe’s own vertical cloud hyperscalers. It is also not about keeping the non-EU cloud services providers out or keeping all data within the EU. It is about achieving interoperability between cloud offerings by setting common technical standards and legal frameworks for cloud infrastructure and services. 

This form of interoperability goes beyond the portability of data and applications from one vendor to another to prevent vendor lock-in; it really concerns the creation of open APIs, interoperability of key management for encryption, unambiguous identity, and access management, full control over storage and access to data, etc.

Worth keeping track of I would say.

European Data Spaces: data spaces intended to unlock the value of European data for innovation. 

The aim is to create common data spaces for certain sectors with common interests (e.g., for health data and governments) so that the scale of data required for innovation for this group can be achieved.

 

Looking Into AI and Its Purpose in Cyber Security

 

As remote working conditions and digital processes continue to become the norm for users and organizations, cyber attacks are becoming increasingly prevalent. 95% of cybersecurity breaches are a result of human error and as the information security market is expected to reach $170 billion in 2022, the cost of digital attacks can be enormous.

AI has always been seen as a silver bullet for organizations to combat cyber-attacks and increase resilience in areas where a majority of human error lies. However, Lokke describes the potential and possibilities of AI as both good and bad, depending on how it is utilized.

 

What scares you the most regarding the seemingly endless possibilities of AI?

 

Like all technology: AI is not good, it is not bad, but it is also not neutral. 

To start with, AI is as good as the purpose for which it is used. In the cyber context, this means that we really should keep ahead of the bad guys. 

New technologies play an increasingly crucial role in cyber resilience. If we are not on top of new technologies like AI and encryption, this will result in new vulnerabilities and dependencies. An example here is that with AI, bad actors can detect and exploit vulnerabilities automatically and on a large scale.

However, AI is also expected to make it possible to automatically detect and patch vulnerabilities. I am currently involved in a research project, to investigate what options there are to facilitate real-time security patching by suppliers.

 

Privacy Laws in The EU and Its Future

 

With digital sovereignty being top-of-mind for EU nations and the increased awareness of data privacy among the public, governments and regulators understand that there is a need for comprehensive privacy laws that protect both users and businesses.

From California Privacy Rights Act to the ever-evolving GDPR, more and more data protection acts are being introduced and implemented across the globe. Moerel shares her views on how privacy laws will continue to shift and change to adapt to the new digital landscape and what global privacy laws mean for an organization.

 

In what ways do you see privacy laws changing in the future?

 

Every week there is a new privacy law being adopted somewhere in the world. By now there are about 130 countries with omnibus ‘GDPR style’ privacy laws. Everybody heard about the Californian Privacy Rights Act, but less well known is that by now, 20 other U.S. states have introduced privacy bills. 

In the EU we now have the draft proposal of the European Commission for an AI regulation and it is not a risky prediction to say that – like what happened with GDPR – other countries will also look at this draft and start preparing their own legislative proposals.

The way to deal with a myriad of global rules is to implement a very robust company-wide security and privacy protection program. After all, compliance with the law is a baseline where you cannot go under. Do a proper job and you do not have to worry about compliance. 

In the end, it is about trust more than compliance.