At the start of 2020, businesses across the globe experienced a devastating outcome as a response to the COVID-19 pandemic. Many countries were forced to respond by shutting down any physical and outdoor activity that could potentially spread the coronavirus, which included the shutting down of any form of business activity that encouraged face-to-face meetings. As a result, companies and organizations across the globe either had to halt their activities or change the way they do business. After more than two years, it would appear that many organizations and their leaders have adapted to the pandemic and innovated ways to continuously succeed despite the difficulties that the pandemic has brought on their business. In December 2021, we asked over 400 leaders from various high-profile companies in Indonesia to help us give an idea on how the pandemic has changed the way they do business and how these innovations have made them reconsider how they should organize their business.
According to survey results, many organizations in Indonesia are now focusing on increasing the productivity of their employees as well as developing their leaders as a strategy to move forward. More than half of respondents (55%) said that increasing productivity was their main focus, whereas half of the respondents (50%) said that leadership development would be another part of their focus in order to move forward their organizations.
This may partly be because many organizations are mainly concerned with the capabilities of their employees and leaders, which became the main concern when the pandemic drove them to change the way they responded to pandemic-related business problems. Survey results showed that a little over half of the respondents (51%) consider the overall capabilities of leadership management as the main concern for organizations, and nearly half of respondents (45%) felt concerned for the capabilities of their employees.
Concern regarding the capabilities of leadership management may be due to the fact that leadership style is considered to be the main factor in why leaders fail in organizations. Survey results showed that more than half (54%) of respondents considered leadership style played a significant role in why leaders fail within their organization. It would appear that leadership style is a common and continuous problem for leaders across different organizations as our previous survey results (2018 and 2015) indicated that leadership style played a role in leadership failure, as well.
Besides leadership style, communication abilities may also be a reason why many people consider leaders to have failed in their roles as leaders. When survey respondents were asked to rank where communication breakdown often happens, results showed that communication breakdown most often happens between higher-level leaders, such as senior management to middle management.
It isn’t surprising then that human capital departments across different organizations are investing in leadership development for the future. Most of our respondents (60%) believe that human resource departments should focus on leadership development when planning Learning and Development Programs. This suggests a need for leaders to increase their skills and improve themselves so that organizations can achieve a higher level of success.
With so many of these results suggesting a high need for improvement within organization leaders, it wouldn’t be surprising if human resource departments decided to invest more in developing their organization’s leaders for the future. With that being said, human resource departments would then need to figure out exactly how to do that.
Get a copy of our Human Capital & Leadership Survey Result for more in-depth information on how and what exactly do human resource departments need to look at to fully develop their leaders for the future.