In 2020, when the world faced , our teams at Philips accelerated their pace remarkably. We rapidly restructured supply chains, authorized frontline staff to make decisions, and delivered digital solutions to organizations struggling to cope with a pandemic. Briefly, the immediate need facilitated quick adjustments. However, as the crisis lessened, so too did the drive. Established frameworks and practices resurfaced, and previous operational methods resumed.
This recurring pattern—rapid bursts of change succeeded by a reversion to established norms—concerned me. It wasn’t an issue of technology. It wasn’t about the workforce. It indicated a deeper challenge: What makes genuine transformation so difficult to maintain?
Companies are capable of learning to adjust swiftly during periods of upheaval and progressively cultivating adaptability and robustness. This demands strong leadership, and it necessitates bravery to redefine not merely our operational methods, but also our interactions, our approach to value creation, and the environments in which we operate.
Shifting from Control to Ecosystem Perspective
A paradigm of control continues to govern the majority of organizations: assert market dominance, safeguard the value chain, mitigate risk. Yet, the most agile companies currently, including Amazon, Notion, and , function based on alternative tenets. They leverage extensive technology and data. They develop platforms that expand not only operational capacity but also collaborative efforts. Their growth stems from facilitating the growth of others.
This signifies the emergence of the ecosystem model. In this framework, businesses collaborate to generate value with partners, clients, and even competitors, akin to organisms within a natural environment. The focus has shifted from linear supply chains or exclusive control. Leaders now pose the question, “How can I coordinate a flourishing network?” instead of, “How do I surpass my competitors?”
Ecosystems function as intricate adaptive systems—not as foreseeable, predetermined mechanisms. They lack set inputs and outputs. Rather, they comprise evolving connections, feedback mechanisms, and developing patterns of behavior. This necessitates a change in perspective: moving away from strict regulation and embracing flexibility, robustness, and shared development.
However, this transformation is not merely structural. It is profoundly individual.
The Internal Transformation
Psychologist Daniel Kahneman illustrated that rapid thinking allows for immediate reactions and survival, whereas deliberate thinking fosters introspection and growth. The same principle applies in . Daring choices and swift initiatives might spur innovation, yet if they are not founded on more profound frameworks and common convictions, organizations will revert to prior standards.
The primary impediment to ecosystem cooperation isn’t a deficiency in strategy. It’s the ingrained zero-sum perspective. It’s apprehension—a fear of relinquishing authority, of distributing influence, of revealing weaknesses. A significant number of us have been conditioned to vie against others instead of working together.
To establish an organization prepared for ecosystems, leaders must first look inward. They need to cultivate the ability to exchange assurance for inquisitiveness, command for participation, and the heroic archetype for a narrative of shared creation.
Three Levels of Transformation
Change unfolds across three distinct layers: the operational (where actions and choices originate), the strategic (where frameworks and objectives are defined), and the existential (where underlying purpose, identity, and principles reside). The majority of change initiatives concentrate on the operational layer, with some extending to strategy. However, only a minority tackle the existential layer—the layer that addresses: What is our essence? What are our convictions? Whom do we place our faith in?
Should leaders fail to address this fundamental level, genuine transformation will remain elusive. While organizations might speak of innovation or flexibility, their underlying beliefs and conduct will continue to be anchored in previous norms.
Evolving from Leader to Facilitator
The ecosystem model calls for more than just astute executives. It necessitates more sagacious leaders, individuals who function not as directors, but as enablers. They foster of trust, encourage collaborative exploration, and recognize that transformation emanates from connections, not organizational structures.
At Citi, Mphasis (the firm I co-founded), and at Philips, I have observed both setbacks and achievements. My realization is this: the organizations that prosper are not invariably the quickest or the most amply financed. They are the ones adept at harmonizing rapid and deliberate approaches. They innovate at the periphery and rejuvenate at the center. They operate with promptness and contemplate profoundly. They guide and they heed.
Leadership in the Ecosystem Age
We exist in an era characterized by overlapping crises and immense opportunities—, AI advancements, disparity, public well-being. These challenges cannot be resolved by any lone company, government, or industry segment. The future will be forged via ecosystems—or it will not be forged.
Consequently, leadership must undergo an evolution. The pivotal query is no longer, “What can I introduce to the market?” but, “What can we collaboratively construct?”
The impending transformation extends beyond the digital realm. It is fundamentally human. It originates not in corporate executive suites, but within each of us. And it expands externally—via platforms, collaborations, and interconnected systems that advance not by the pace of regulation, but by the momentum of reciprocal confidence.