
Published in Winter 2025
It is widely accepted that the discipline of management consulting was formed in 1926. James McKinsey, a University of Chicago accounting professor, left academia and founded a firm (McKinsey & Company) that would be fiercely dedicated to rigorous research.
Almost 100 years later it is difficult to think of an organization that has had a more profound impact. Fueled by sophisticated analytics, their consulting efforts have dependably influenced large-scale economic, political and social development around the world. With that as background, who are we to argue with a recently published McKinsey study that concluded: “Competitive advantage currently boils down to the ability of an organization to cultivate the will to change.”
Now, when we see the term will it is impossible for us to ignore our grounding in the Situational Leadership® Model. Will, in the face of change, translates to employees throughout an organization who exhibit:
- Confidence: They have limited (if any) fear of the unknown. They trust their ability to learn new things, and they trust the people around them to support and help them as they do so.
- Commitment: They understand the dynamic world they live in, as well as the value of accelerated and thoughtful responsiveness to the disruption that the environment inevitably provides.
- Motivation: They also thrive on getting better. And they know a practical pathway that aligns with that desire is embedded in the opportunity to respond to unforeseen circumstances.
The McKinsey article goes on to say that cultivating this will to change has to be a “holistic aspiration” (i.e., “Everybody in the pool!”).
If the purpose of rigorous research is to produce findings that stimulate reflective consideration, we would suggest that McKinsey has done it again! A “holistic aspiration to cultivate the will to change” … so very much to unpack there!
Here are three implications for organizational leadership that come to mind.
- Leadership Development: Traditionally, leadership training has been largely reserved for people managers. In a system dedicated to cultivating the will to change, front-line employees need to be formally engaged in that process from day one. Those employees clearly need to develop functional expertise, but there is no reason that capability can’t be developed and nurtured on a parallel track with the capability to effectively influence.
- What Leaders Need to Do: Leaders are no longer the people with all the answers. They have increasingly become the people who demonstrate a knack for asking the right questions (then truly listening to the answers!). As a result, their teams consistently overcome unforeseen obstacles, and deliver outcomes of significance, in a manner that retains key talent. The image of the traditional leader standing at a podium demonstrating strategic or tactical command is fading. It is giving way to a contemporary leader who is more like the conductor of an orchestra. They engage each section of the ensemble on cue, and in so doing, wind up making beautiful music.
- Why Leadership Matters Now More Than Ever: For all intents and purposes, competitive advantage has almost entirely become a function of intangibles. If you are in business today, you undoubtedly offer a viable product at an acceptable price point.
How you keep those customers moving forward (and hopefully gain some others) depends (almost entirely) upon your responsiveness. And responsiveness is no longer defined by an individual (here or there) who goes above and beyond the call of duty in a well-defined moment of truth. It is increasingly defined by the systemic awareness and reactions of your culture to change. And there is no way to ever approach such a lofty, holistic aspiration without transparent leadership at all levels.