Professional services firms in Australia are in a leadership crisis. Surveys by recruitment firms, management consultancies, and HR organisations are showing vastly shorter stays at the top jobs and increasing reluctance of Gen Z and Y to take leadership on.
The job of leadership has changed, and for many, it no longer fits with the life goals of those who used to aspire to it. They no longer want a job they say will take everything from them. It's an issue of burnout, but it's not as simple as too much work.
I'll give you three examples I've heard from clients in recent weeks. First, the firm seeking to recruit a partner. On the point of acceptance, the would-be partner decided to withdraw and take a different career path as a solo practitioner, saying they didn't want the pressure of having to bring in work for others. They were prepared to take on the pressure for themselves, but not for others.
Second, a mentee speaking of his experience with his mentor. "I see him and I don't want to be him." Business development, working nights and weekends, pressure and stress just aren't appealing.
Third, a partner who was performance-managing a fee-earner learned that person had experienced a breakdown some years earlier due to the pressure of work. The partner felt crippled by the dual sense of responsibility – how to increase the poor performance without causing harm.
Leadership used to be predominantly output focused. Yes, there has always been a people management aspect, but primarily it was technical, about the quality of work, keeping all the parts moving and stakeholders happy, meeting deadlines. Now it's more input focused. The technical and output expectations are a given, but now there is a greater focus on how the work gets done. It's about creating the conditions for others to perform, keeping people engaged, making sure they feel supported, and able to do their best work.
Much has changed in just a few years. The way we work has merged our work and personal lives. Advances in technology, and now the increasing dominance of AI, make the technical aspect of leadership easier to achieve, so leadership is now more about the human side, the 'soft' skills (actually, they're anything but soft). These skills aren't taught at university, and they're often not measured in performance reviews. You'll get feedback about them only if you fail to use them, or use them badly. But if you don't have them, you won't be a successful leader. Luckily, they can be learned.
The consequences of this so-called leadership crisis for individuals are clear. Far fewer people want to take the path to partnership, opting instead for a practice management or consultant position. Or they go out on their own. For organisations, it's harder to find senior talent. It's not that the people aren't good enough. They just don't want the seniority.
So, how do we redesign the role to make it both more effective and more appealing, both strategically and operationally?
First, we need to redefine leadership, the characteristics and traits of good leaders. Then we need to sell it as it really is, not as something it used to be.
Operationally, it means leadership development needs to change. It needs to start earlier, so people can develop the skills they need before the job opportunity arises. Emotional intelligence needs to be promoted, not ignored.
We also need to build an understanding that leadership means different things for different people. Maybe the best leaders aren't the best technical operators. They provide something else.
At This Friday, these are the conversations we are having in the leadership training we have been providing in Melbourne in recent months. Focusing on what it takes to be a successful leader while reflecting on where each of us is in our own journey and looking at the issue holistically – how to lead yourself, how to lead others, and how to lead externally, through your brand. It's practical application, not theory.
Because the irony of the current so-called leadership crisis is a Catch 22. Professional services need more human leaders now, but these are the people most likely to burn out. We need to nurture them.
