As we step into 2024, many of us will be making new years resolutions. Whether its eating better, picking up a new hobby, reconnecting with long-lost friends, gaining a new qualification or simply breaking free old old habits and routines, the goal is the same – to live life a little better in the year ahead than we did during the twelve months which have just passed.

Such aims are often present in our professional lives too – with end-of-year reports filed and annual reviews conducted. Aside of the formal reflections, every business leader will (hopefully) find the time amongst the festivities to step back to consider their own performance; their successes, failures, the what-could-have-beens of their 2023 work.

Crucially they should consider where there is space for greater improvement. And, of course, there always is! Even the most competent leaders stand to benefit from considering new ideas and expanding their capabilities.

To do so, where better to look than to the institutions charged with shaping the minds of business leaders Throughout the year, business schools, their academics and their graduates have produced a goldmine of research and fresh thinking on how to improve leadership.

To help get you started on your New Year’s Resolutions for 2024, we’ve compiled a list of the 10 most impactful lessons from 2023 that resonate with leaders, and have shared them below…

1.  Humility over unchecked optimism

Trang Chu and Tim Morris from the University of Oxford’s Saïd Business School argue that positive emotions are crucial for fuelling an entrepreneur’s ambition and success. Optimism, passion, and pride motivate entrepreneurs to innovate, take risks, and overcome setbacks. However, excessive positive emotions, if unchecked, can lead to perilous outcomes. The professors highlight examples such as Elizabeth Holmes and Adam Neumann, where unwarranted optimism blinded entrepreneurs to risks, resulting in catastrophic failures.

To address this, they propose mechanisms for responsible leadership, emphasising humility and doubt as essential in counteracting arrogance. Humble leaders recognise limitations, seek external expertise, and foster open communication. Doubt promotes rigorous testing and validation, preventing hasty decisions.

2. Get boards 2024-ready

In navigating the challenges posed by economic uncertainties, geopolitical tensions, climate change, and digital disruption, business leaders drew invaluable lessons from the INSEAD Directors Forum earlier this year.

During the event, leaders such as Gilbert Ghostine, Chairman of Sandoz, and INSEAD professors outlined a vision for the future that places heightened emphasis on green initiatives, digital transformation, responsible consumption, and stringent regulations. This transformative approach calls for a fundamental reorientation of corporate management to address the evolving landscape effectively.

Boards, faced with unpredictable risks and a society marked by polarization and activism, must move beyond reactive approaches and embrace a proactive stance. The imperative for business leaders is to become forward-thinking, flexible, and hands-on in their governance strategies. Insights shared at the forum underscore the necessity for leaders to actively embrace uncertainty, recognise obsolescence risks, and redefine value creation through a stakeholder-centric perspective.

Furthermore, the forum highlighted the importance of appointing holistic board members, investing in diverse thinking, clarifying roles, and adapting to a nuanced board function. The lessons advocate for versatility, constant reflection, and fostering healthy, trust-based debates as critical elements for effective governance.

By assimilating these insights, business leaders can cultivate a resilient governance framework capable of navigating the complexities of an ever-changing global landscape.

3.   Nurture Success Through Employee Well-being

Fostering a safe environment is a pivotal factor for rapid scaling, found Professor Veroniek Collewaert at Vlerick Business School in Belgium.

Collewaert’s research highlights the changing nature of a founder’s role, where they move from a general focus to a more specialised one. This shift emphasises the importance of founders not only optimising their own roles but also those of their employees. Most importantly, founders can create a psychologically safe environment for their employees by empowering them to shape their roles and expectations within the company.

Furthermore, the study aligns with the prevailing trend of acknowledging and addressing mental well-being in the workplace. By fostering a cycle of positive interactions, founders can create a conducive environment for innovation, collaboration, and sustainable success. In essence, the research emphasises that placing a premium on employees’ well-being stands as a linchpin in the journey toward building a thriving start-up.

Such can be seen in the start-up Candy Kittens, a gourmet sweet company co-founded by reality TV-star-turned-entrepreneur Jamie Laing. Companies like Candy Kittens stand out for their commitment to employee well-being, manifesting in innovative work perks such as unlimited holidays, flexible hours, and private healthcare.

These initiatives contribute not only to individual well-being but also to the overall positive dynamics within the organisation and have resulted in rapid success for start-ups like Candy Kittens.

4.   Generosity’s ROI

The significance of generosity in leadership is often underestimated, according to Harvard Professor James Heskett. He suggests that leaders who share their time, talent and ideas can create much more successful organisations.

Research has shown that generosity can be a source of happiness as it activates brain regions associated with pleasure and releases oxytocin and dopamine. Heskett believes that there is a strong correlation between “servant leadership” – prioritising service to others – and a sense of peace of mind among leaders.

In the eyes of investors, while leadership qualities like teaching ability, listening skills, determination, humility, and frugality take centre stage, the pursuit of happiness, particularly through generosity, is often forgotten about. The fear that being generous might be perceived as “giving away the store” exacerbates this oversight.

Heskett recommends selecting people based on their attitude and then training them for the necessary skills. Generosity, which is a key attitude, is a quality that is instilled at a young age, and something that should be looked for in recruitment. Could generosity be the driving force behind your recruitment?

5.   Learn from successful CEOs

CEO turnover in the S&P 500 hit a record high last year, with 175 CEOs leaving their positions, a 13% increase from the previous high in 2018. From those that managed to stay in place, research from BI Norwegian Business School identified six key factors influencing CEO success.

Confidence was deemed crucial, with high confidence linked to innovation but excessive self-confidence potentially hindering major organisational changes. CEOs with MBA degrees from prestigious schools were more likely to pursue innovative and risky business models. Military background correlated with lower innovation and research and development investment, attributed to a culture of risk aversion and discipline.

Hobbies played a role, and age also mattered as younger CEOs tended to outperform older counterparts, investing more in research and development and displaying a greater openness to innovation. Finally, political views influenced leadership style, with liberal-leaning leaders more inclined to innovate, while conservative-leaning CEOs were associated with resistance to change and weaker results.

Some of these aspects you may not be able to control; age is not something that we can freeze (yet!). But confidence and education certainly are areas we can learn from existing CEOs.

6.   Messi tells us when to hire

Lionel Messi’s arrival at Inter Miami has ignited a fairytale turnaround, leading the team to its first major trophy and significantly boosting the club’s financial prospects. The impact of star players in sports, such as Messi, extends beyond the field, influencing ticket sales, merchandise, and social media following. David Beckham, owner of the club, chose to introduce a massive talent to a club that had otherwise been struggling.

Research from the University of Maryland, led by Professor Gilad Chen, delves into the dynamics of introducing star talent, drawing parallels between sports and business. The study analyses data from the introduction of thousands of football players in European leagues.

Adding star players to successful teams before the season has the most significant positive impact. Highly talented players joining struggling teams midseason have a substantial impact, but it is more impactful for lower-performing teams. The researchers advise against overpaying for talent and emphasise the importance of strategic investment.

The study suggests valuable lessons for both sports and business, highlighting the need for wise investment in talent acquisition. It underscores that improving a team or organisation requires a nuanced understanding of when and how to introduce new talent, considering factors such as team performance and timing.

7.   Mastering the Art of Communication

In a recent interview with IE Insights, Matt Symonds, our Editor-in-Chief of BlueSky Thinking, shared his insights on the crucial elements of effective communication. In a world saturated with information, he emphasises that communication is not just about transferring facts but about connecting with the audience and maintaining their attention.

The interview outlines seven key elements for effective communication. First and foremost is the art of listening, according to Matt. He stresses the importance of individualised attention, making the person in front of you feel like the most important individual at that moment. Understanding your audience, their interests, and even their preferred medium of communication is vital.

Secondly, Matt highlights the significance of thinking before speaking or writing. Taking a moment to consider the message ensures responsibility for the words spoken. The third element is tone and body language, emphasising the consistency between verbal and non-verbal cues for authentic communication.

The fourth principle advocates the idea that less is more, encouraging concise and precise communication to avoid overwhelming the audience. Matt also underscores the value of practice, especially in public speaking, suggesting the use of storytelling techniques and structuring arguments.

Being persuasive is the sixth element, urging communicators to share convictions and ambitious goals sincerely. Matt concludes with knowing when to stop. Effectiveness in communication involves finding the right moments to convey messages without dominating the conversation.

8.    Authenticity is key

Reflecting on his experiences, Darren Burn advises business leaders to be open and authentic. A King’s Business School alum, Darren founded OutOfOffice.com in 2014, providing luxury travel experiences with an emphasis on LGBTQ+ friendliness. In May 2018, the company acquired TravelGay.com, offering a comprehensive global service for LGBTQ+ travellers.

He highlights the importance of embracing your true self and finding a support network in order to succeed. In the context of LGBTQ+ individuals considering a business education or a leadership role he underscores the significance of authenticity, urging them to be true to themselves.

Addressing the changing landscape, Darren notes the improved perception and acceptance of LGBTQ+ individuals in the workplace over time. While acknowledging progress, he emphasises the need for continued efforts, especially in industries like travel and tourism. Ultimately, he encourages business leaders to recognise the commercial sense in fostering diversity, reinforcing that inclusive decisions can drive positive change.

9.   Leadership Beyond Buzzwords

In a similar vein, Adjunct Professor Patrycja Riera from IE Business school argues that too often inclusivity and diversity become buzzwords for leaders, when they should be key management pillars.

Riera emphasises the importance of cultural accommodation when entering new environments, encouraging leaders to strike a balance between the personal working styles of their workers, and the broader organisational culture. Addressing gender equity, she advocates for proactive communication, mentoring initiatives, and challenging biases to foster a truly inclusive workplace. In particular, Riera highlights the role of traditional male leaders as change agents, urging them to challenge stereotypes and foster open dialogue. Building these genuine connections with team members helps in recognising their unique strengths to better employ them, and cultivating trust.

Ultimately, inclusive leadership is portrayed not merely as a style but as an ongoing commitment to creating workplaces where diversity is celebrated, equity is lived, and every team member feels a genuine sense of belonging.

10.  Future-Proofing Leadership

Effective leadership demands a nuanced understanding of the needs and aspirations of the emerging generation, Gen Z. As outlined in the recent report by the Graduate Management Admissions Council (GMAC), managers working on their recruitment pipeline should consider four pivotal factors that resonate deeply with Gen Z professionals, because sooner or later they will start to dominate the pool of candidates you’re pulling from.

Firstly, a commitment to fostering a supportive community within the workplace is paramount. Gen Z values a work-life balance and craves a sense of connection, especially given the challenges of remote work. Leaders must proactively build a collaborative and inclusive culture to address the emotional undercurrent in their team’s ambitions.

Secondly, stability emerges as a crucial concern, not only in terms of job security but also in contributing to a stable and better world. Managers who align their organizations with values of financial independence and global betterment are likely to attract and retain Gen Z talent.

Thirdly, recognising the social purpose that drives Gen Z is essential. As the ‘activist generation,’ they seek employers who take meaningful action on issues like sustainability and inclusivity. Leaders should align their organisations with these values to inspire and engage Gen Z professionals.

Lastly, flexibility in work arrangements is non-negotiable for Gen Z. Acknowledging their preference for hybrid work models and job flexibility over higher salaries, leaders must adapt to these evolving expectations to foster a productive and satisfied workforce.

As Gen Z prepares to constitute 30% of the workforce in the coming years, understanding and embracing these key factors will be pivotal for leaders aiming to navigate the leadership landscape effectively.

Of course, these 10 are simply a starting point. Which leadership lessons from 2023 will you be carrying through with you to 2024? What has the past year taught you about yourself and how do you hope to expand your thinking in the year ahead? Let us know in the comments below.

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