The automotive and mobility industry has transformed over the last decade, with examples including autonomous driving, connected vehicles, electrification, and shared mobility (which so refer to using the acronym ACES).
However, despite massive investments, some of these transformations are now entering the realization phase. For instance, autonomous driving startups are encountering fundraising difficulties, with some even declaring bankruptcy. Similar challenges are observed in the shared mobility sector.
Additionally, there are significant regulatory barriers impacting future mobility productization. Examples include the NIS2 Directive (cybersecurity regulations), EU Data Act, and Euro Green NCAP.
In this dynamic landscape, the winds of change blow ceaselessly, ushering in a new era marked by the ACES mobility model. This transformation is far from complete, as both traditional automakers and new players grapple with the complexities of a rapidly evolving market. Amidst these challenges, a pivotal question emerges: How can companies triumph in this intricate and competitive environment?
Taking electrification as an example, a cornerstone of this metamorphosis reveals not only the automakers' journey from combustion to electric but also the overhaul required in the entire infrastructure. This transformation presents a multitude of possibilities for innovation and a shift away from traditional top-down leadership.
Accommodating squiggly career paths
Amidst the whirlwind of technological advancements, one critical element often overlooked is the human factor.
Kerrigan Advisors’ proprietary annual OEM Survey of over 100 executives reveals that the majority of respondents are worried about the financial impact of Chinese automakers’ growing global market share, and most expect that the EV transition to be slower than expected. The survey also queried executives on their outlooks for dealership valuations and profitability, as well as their expectations for the future of dealer networks and facility requirements.
Since the onset of the pandemic, power dynamics within companies have shifted, with employees demanding more from their work.
To navigate the disruptive landscape successfully, companies must adapt by placing a stronger emphasis on developing leadership, accommodating squiggly career paths, fostering skills-based organizations and effectively leading multi-generational workforces. As work itself undergoes a profound transformation, it is imperative for the automotive industry to lead this change.
Trial and error might work for initial market entry, but for continuous profitability and innovation in the ACES mobility sector, comprehensive transformations involving processes, communication, talent management, product management, marketing and organizational structure are necessary. This requires top management to differentiate opinions, filter feedback and prioritize actions effectively.
Talent today seeks more than just a salary. These executives crave personal growth, recognition and purpose. This shift requires leaders to understand their people, what motivates them, and how to help them be their best. Traditional hierarchical structures need a radical overhaul to empower individuals and foster inclusivity and diversity in thought.
Avoiding organizational debt
Organizational problems related to the changes cannot simply be swept under the rug, as they will bring organizational, cultural and technical debt. Therefore, leadership must possess transdisciplinary, transgenerational, transcultural and transcontinental capabilities to navigate through these different elements and demographics within the organization successfully.
Diversity and inclusion must be fully embraced to challenge traditional modes of thinking and maximize varied perspectives in the productization of emerging technologies. Success in the automotive industry necessitates leaders who can listen, learn and unleash the often-untapped potential within their diverse organizations.
The business ecosystem is changing, located on different continents and surrounded by geopolitical elements. Effective communication skills across transcultural and transcontinental demographics within organizations, as well as with external parties, will help organizations gain a competitive advantage in the long run.
Centering transformation efforts around humans can significantly increase the likelihood of success, as proved by Oxford University/EY Human Centric research. In an industry where approximately 70 percent of transformations fail, this statistic serves as a powerful motivator for change.
In conclusion, the key to thriving in the automotive industry lies in transcending traditional leadership models and adopting trans-x capabilities with a human-centric approach.
Only through this paradigm shift can organizations build strong, marketable products while attracting and retaining diverse talents, ensuring that the automotive industry not only survives but thrives in the midst of transformative change. Transparent leadership is essential for this journey.
