Analysis

The changing face of leadership

The human capital priorities for infrastructure companies.

What do today’s leaders in infrastructure need? Global executive search company Spencer Stuart sheds light on must-have skills.

In today’s global, digitally charged world, infrastructure projects are taking on new dimensions, while the industry is shifting to meet new and varied needs.

To gain insight into the industry’s current state of leadership, Spencer Stuart interviewed ten CEOs and chairmen of infrastructure companies across Asia Pacific, Europe and North America, and surveyed more than 100 senior infrastructure executives globally. The findings reveal a sector on the cusp of significant change. We observed: 

  • An industry challenged with changing market conditions, new funding models and increasing regulations.
  • An evolving leadership profile, requiring a focus on the infrastructure consumer and a commercial, strategic, technology and media skill-set suitable to managing increased demands from diverse stakeholders.
  • The need for an organisational capability aimed at attracting and retaining top talent at all levels.

Complex times require outstanding leaders
With the challenges facing infrastructure companies, the question of who is at the helm is more important than ever. Successful CEOs need new skills to guide the company through a complex marketplace. The consumer savvy, social-media-tuned, ITcapable infrastructure leader must be mindful of financial and regulatory concerns, and must be nimble at meeting the needs of multiple partners and stakeholders.

Strategic thinking. The ability to consider all available options with a long-term lens and draw on the best ideas, wherever they come from, is more critical than ever as projects become more complex. As one CEO said, “One challenge is the long planning horizon, coupled with long capital recovery cycles. How do you do it in an environment where the future demands you are planning for could change dramatically?”

Commercial and financial mindset. Declining public funding – the “reign of empty coffers” – is driving infrastructure companies to develop new business models that enhance private sector role, most notably public-private partnerships (PPP).

Collaboration and influencing skills. Executives must be able to unlock knowledge and capabilities across the entire organisation and to lead cultural change that places consumer-awareness and social impact high on the agenda. When it comes to driving infrastructure developments, leaders need to work with people across a multitude of disciplines.

Stakeholder management. Infrastructure leaders must nimbly manage the needs of an increasingly broad set of stakeholders and speak credibly to all. In light of the impact of infrastructure projects on communities, leaders must be attuned to public opinion and be able to communicate effectively through public and social media platforms. Increasingly, becoming more business-oriented means becoming consumer-oriented.

Building an organisation for the future
A challenge for infrastructure companies responding to changes in the industry is attracting and retaining talent with the right mix of leadership and technical skills. The shortage of skills is broad, including tradesmen, engineers, project managers, commercial and financial leaders, technical experts as well as general managers. How can infrastructure companies become better at building the teams they need?

Injecting new perspectives. Infrastructure companies have tended to promote from within, but increasingly executives see a need to strategically recruit from outside the company and even outside the sector. Increasing the diversity of talent is necessary in an industry facing changes on multiple fronts. Engineering skills will always be critical, but increasingly IT savvy, legal experience and finance management skills will be must-have skillsets. Talent from outside the infrastructure industry can help revitalise the sector on those dimensions – but that also means competing in the talent market against top banks, law firms and consultancies. Skills The changing face of leadership What do today’s leaders in infrastructure need? Global executive search company Spencer Stuart sheds light on must-have skills.

Developing and retaining top talent. Ensuring skills are on par with other industries, and that workers are in tune with external challenges, can help raise the bar on talent in the industry. When it is time to hire or make appointments, taking the extra step of benchmarking the position, both internally and externally, helps immensely, even if the intent is to hire from within. For nfrastructure companies, a pressing concern involves the pipeline of engineers, who are the core of the workforce. Especially in demand are engineers who can work in the digital sphere and those who have honed their leadership skills. Growth opportunities, clear career progression and a strong mix of benefits can go far toward attracting talented professionals and keeping them in-house. But sometimes the best reward is the work itself, tapping into the sense of purpose inherent in many infrastructure projects. “The best way to attract people is to have great projects,” observed one executive. “Money and conditions are important, but the best people want to work on the best projects.”

Conclusion
The infrastructure industry is changing fast and dramatically, transforming itself in response to technology advancements, growing risk and complexity, and the need for innovative funding mechanisms. In light of these industry changes, a new leadership profile is emerging that emphasises strategic thinking, a commercial and financial mindset, collaboration and influencing skills, and stakeholder management. 

Authors: Arnaud Despierre, Hugh Thorneycroft, Suzanne M. Burns, Jordan L. Brugg, York von Wangenheim from Spencer Stuart.

Comments

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