Decisive leadership is key to navigating current business turbulence, says IMI chief

Ireland is set to experience more moderate rates of economic growth than we’re used to, but leaders can innovate to overcome challenges, says IMI's CEO

Shane O’Sullivan, interim CEO of the Irish Management Institute, who told the IMI National Leadership Conference in Dublin that business leaders must be innovative in relation to challenges such as inflation, staff retention, new skills development, AI and digital transformation.

Fast and decisive leadership will be a common thread for businesses that emerge stronger from current turbulent and transforming times, says Shane O’Sullivan, interim CEO of the Irish Management Institute.

Speaking at this week’s IMI National Leadership Conference in the IMI Campus in Dublin, Mr O’Sullivan addressed the concerns expressed in a survey of Irish-based executives, notably challenges around inflation, staff retention, new skills development and engagement with AI and digital transformation.

“The Irish business landscape is changing at speed,” said Mr O’Sullivan. “New economic clouds are emerging on the horizon. Ireland looks set to experience more moderate rates of economic growth than we’ve become accustomed to. High inflation and a tight labour market are likely to remain significant business challenges that leaders in every sector will need to continue managing in the months ahead.

“New opportunities for business growth are also coming to the fore. With AI and emerging technologies revolutionising the world of work, businesses that can harness the innovation opportunity will be well positioned for future success.

“With such significant change on the horizon, business leaders are facing major questions on how to effectively navigate their business through this period of transformation. Many remain uncertain what impact this turbulence will have for the future of their business.” 

 These themes were discussed by keynote speakers at the IMI conference, including Bruce Daisley, a former VP EMEA at Twitter and international consultant on workplace culture, Deborah Threadgold, general manager at IBM Ireland, and Ronan O’Gara, Head Coach at La Rochelle.

The ‘IMI Leadership Barometer’, a survey of senior business leaders across Ireland unveiled in advance of the conference, found that 47% of business leaders are uncertain whether the economy will grow in the next 12 months. With inflationary pressures still strong and costs increasing, a further 36% of leaders believe the economy is likely to contract in the next year.

Some 59% of leaders cited skills and talent shortages as the most important factor for future business success. Leading digital transformation was also deemed critical for future growth, with leaders keen to harness the potential productivity boom created by AI and other emerging technologies.

“Addressing the growing skills gap is a key strategic response that can enable leaders to overcome these challenges,” said Shane O’Sullivan. “Creating a culture of learning and continuous upskilling throughout their organisation is an important step on the path to success. Leaders should not leave skills development to HR alone but take an active role in fostering change in every corner of their organisation.

“Encouraging collaboration and creativity between different teams and departments throughout an organisation can ensure that people learn from one another, while putting in place concrete skills programmes can ensure that talent is prepared to harness the productivity gains of new technology,” he added.

Some 48% of respondents to IMI’s survey said that strong leaders who foster and champion innovation are critical for innovation success. Strong leaders play a key role in driving innovation and learning, including seeing the opportunities in new digital technologies.

“Senior leaders hold the key to transforming their organisation for the better,” said Shane O’Sullivan. “Although many leaders are still assessing how new technologies can unleash innovation within their organisation, AI offers powerful growth opportunities for business. The potential of AI has come to life for all businesses with the advent of ChatGPT and other AI language models.

“Yet when it comes to harnessing the potential of the technology, only 25% of senior business leaders in Ireland currently have the right skills and capabilities in place to leverage the technology within their organisation. The main barrier to navigating an AI future was found to be uncertainty, indicating a pervasive lack of knowledge in the business community regarding the technology’s applications and impact.” 

 Business leaders speaking at the IMI National Leadership Conference, however, cited a lack of capabilities as a major obstacle to fostering change. Many leaders believe their workforce lacks the critical skills to enable digital transformation.

“To seize the AI opportunity, business leaders will first need to identify strategic opportunities where the technology can improve efficiencies in their organisation. While the applications of AI are vast, from automating tasks in manufacturing, to forecasting demand in supply chain management, AI cannot solve every business problem,” said Mr O’Sullivan.

“Leaders should take a long-term view on how the technology can streamline productivity in their organisation and equip talent with the right skills and knowledge to realise this vision.

“Today, Irish businesses find themselves at a crucial juncture. Change is inevitable. However, success is not. Business leaders across Ireland face crucial choices over the coming months in how they prepare their business for a brighter future in light of economic and technological disruption.”