'Leaders with a high AQ can effectively manage disruptions, foster a culture of resilience, and inspire'
Australia's world of work is changing, thanks mostly to workplace reforms and ongoing digital transformation.
Rebecca Maklad, Influence Strategist, said these circumstances bring about a triple shift for leadership, particularly for employee experience, sustainability, and exponential progress driven by AI.
"This landscape demands a high Adaptability Quotient (AQ) to navigate effectively," Maklad told HRD.
But what is AQ? Maklad said this refers to leaders' abilities to adjust their strategies, behaviours, and mindsets in response to changing circumstances.
"AQ is the ability to work out what is relevant, to unlearn obsolete knowledge, overcome challenges, and to make a conscious effort to change in real time," she said. "It encompasses the skills needed to navigate uncertainty, embrace innovation, and lead teams through transitions."
According to Maklad, high AQ leaders possess cognitive flexibility that allow them to "switch seamlessly between different concepts and perspectives."
"They exhibit emotional resilience, managing stress, and swiftly recovering from setbacks while maintaining a positive outlook that inspires their teams," she added. "Their learning agility ensures they continuously acquire and apply new knowledge, staying updated with industry trends."
They also have a growth mindset, are open-minded, and willing to change their approaches based on new evidence.
"Their curiosity drives them to explore and understand new things proactively, while their collaborative nature values diverse perspectives, fostering teamwork and collective problem-solving," she said.
Maklad said having a high adaptability quotient is a "game-changer" for leaders and their organisations.
"Leaders with a high AQ can effectively manage disruptions, foster a culture of resilience, and inspire their teams to thrive in dynamic environments," she said.
According to Maklad, high AQ leaders understand that flexibility is non-negotiable amid the shift in employee experience, where hybrid work and ensuring flexibility are demanded by the workforce.
"They create policies that support work-life balance while maintaining productivity, and they foster inclusive environments where diverse perspectives are valued, enhancing team cohesion and driving innovation," she said.
Leaders who excel in AQ also integrate eco-friendly practices seamlessly into their operations as sustainability is at the organisational strategy.
"They comply with new sustainability standards and inspire their teams to adopt renewable energy and waste reduction practices. This not only mitigates environmental impact but also opens up new business opportunities by promoting a culture of environmental responsibility," Maklad said.
Those with high IQ are also able to integrate AI solutions as rapid technological advancements demand that they stay ahead.
"They foster a culture of continuous learning and improvement, keeping their organisations agile and competitive in a fast-evolving digital landscape," Maklad said.
But she noted that the most critical aspect that highlight the importance of AQ is human adaptability.
Maklad quoted Alvin Toffler saying: "The illiterate of the 21st Century are not those who cannot read and write but those who cannot learn, unlearn, and relearn."
In a world where information is easily accessible, it's not about what leaders know but how leaders harness knowledge, according to the strategist.
"Leaders who remain stuck in old ways of thinking will be left behind," she said. "Understanding what to unlearn, learn, or relearn is crucial to staying ahead of the curve. This adaptability allows leaders to navigate and thrive in an ever-changing environment."
Organisations with high AQ leaders can keep their business ahead of industry trends and competitors, according to Maklad, citing McKinsey.
"Additionally, these leaders boost organisational resilience by skilfully navigating challenges and uncertainties, ensuring their teams stay focused and motivated during periods of change, maintaining stability even in the face of disruptions," she said.
"These leaders also excel in fostering collaboration, leveraging diverse perspectives to tackle complex problems and make informed decisions."
Leaders with high AQ are also capable of keeping their organisations agile and ready for anything, according to Maklad.
Citing McKinsey, she noted that high AQ benefits employee engagement, innovation, and the ability to integrate new technologies like AI.
"This adaptability drives organisational success, ensuring long-term growth and competitiveness by keeping the organisation responsive and resilient in a rapidly evolving business landscape," she said.
Maklad outlined three key concepts to develop adaptability quotient among leadership.
The first one is the "February 29th Mindset," a concept based on the experience of early 2020 when the pandemic emerged. According to Maklad, this means being prepared for both maintaining the status quo and making radical changes quickly when necessary.
"Leaders with the February 29th mindset are ready to navigate both steady and disruptive changes effectively," she said. "They stay flexible, prepared for a spectrum of outcomes, and can shift their strategies as new information becomes available. This mindset encourages leaders to be alert and responsive, ensuring they can handle sudden changes in their environment."
The second key concept is holding strong opinions lightly, which means being open to changing minds when new evidence or better ideas emerge.
"This approach fosters an open-minded and responsive culture, essential for continuous improvement," she said. "Adaptable leaders admit there's always a chance they might be wrong, making it easier to embrace new information and change direction when needed. This flexibility is crucial for navigating a rapidly evolving landscape."
The third key concept to developing AQ is thinking like a scientist, according to Maklad.
"This method ensures leaders are continuously improving and re-evaluating their beliefs based on new evidence. By viewing mistakes as opportunities to learn and evolve, leaders can remain flexible and capable of navigating complex and shifting environments," she said. "This scientific approach promotes a mindset of continuous learning and adaptation, which is essential for effective leadership in today's fast-paced world."
According to Maklad, HR professionals can significantly enhance leadership's AQ by focusing on human potential and intelligent optimism.
"Intelligent optimism, as championed by Future Crunch, is not about naive positivity; it is grounded in factual, evidence-based belief in the positive potential of future innovations and technological advancements," the strategist explained. "It recognises that while challenges exist, progress in science, technology, and society can lead to significant improvements and solutions."
She said intelligent optimism inspires leaders to embrace change confidently and view technological disruptions as opportunities rather than threats.
"This mindset fosters a proactive, fact-based approach to problem-solving and strategic planning. By integrating intelligent optimism into leadership development, HR professionals can motivate leaders to be forward-thinking, innovative, and resilient," she said.
It is also important to encourage a growth mindset through continuous learning programmes, according to Maklad, stressing that providing a feedback-rich environment and promoting regular reflection sessions enable leaders to adapt and grow.
"It's essential to shift the focus from what to learn to how to learn, relearn, and unlearn. This approach fosters adaptability, allowing leaders to stay current and resilient in the face of change," she said.
To nurture human potential, Maklad underscored the importance of creating diverse teams and promoting collaboration to expose leaders to various perspectives and problem-solving approaches.
"By focusing on human potential and intelligent optimism, HR professionals can cultivate leaders who are not only adaptable but also inspired to lead their organisations with a visionary and hopeful approach. This strategy ensures that leadership is well-equipped to navigate the complexities of the modern business landscape, driving long-term success and innovation," she said.
