How to lead through complexity | Dr Nadine Rinck, Partner, Egon Zehnder

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Every year, the world's preeminent leadership advisory firm, Egon Zehnder, surveys CEOs to identify issues and challenges they face and how they deal with them. In this podcast, we highlight key findings and discuss the implications for CEOs and Nomination Committees challenged to align on the search criteria for CEOs

In this podcast, Dr Sabine Dembkowski, Founder and Managing Partner of Better Boards, discusses how to lead through complexity with Dr Nadine Rinck, a partner in Egon Zehnder's Munich office. She heads Egon Zehnder’s infrastructure sector in EMEA and focuses on board advisory and CEO succession across sectors. 

“95% of the CEOs expect groundbreaking systemic changes in the next decade”
Nadine shares that 95% of CEOs anticipated groundbreaking systemic changes in the next decade.   The study also identified the top five critical challenges for CEOs: talent acquisition and development, AI adoption and impact, market disruptions, geopolitical instability and climate change/ecological impact.  Nadine highlights that these challenges are not isolated, and their interconnected nature makes them even more difficult to navigate.  

“The world is currently moving from complicated to complex”
Nadine explains that complexity introduces challenges for which no clear solution exists, no matter how much effort or money is invested. The world is shifting from being merely complicated to truly complex. This shift brings heightened uncertainty and often fear among teams and stakeholders.  

“What can I do to make my CEO become better and support him or her in navigating this complexity?”
Nadine emphasises that navigating complexity does not mean CEOs must solve every problem themselves or adopt a hierarchical approach.  Instead, CEOs are turning to specific sources for advice and support when tackling complex challenges.  However, a surprising gap exists in how often CEOs engage independent board members or chairs for guidance.  Only 17% consult their independent board members and just 13% turn to their chairs for advice.  

“Leaders will need to develop adaptive abilities”
Nadine acknowledges that tackling today’s challenges requires a fundamental shift - a complete update of the “operating system” of leadership.  For future CEOs, this means transforming their leadership identity and focusing on emotional intelligence and personal growth.  She outlines three meta-competencies that form the foundation for adaptive leadership. 

The first is self-awareness, which requires the ability to self-reflect and be brutally honest with oneself.  The second meta-competency is relational capability, which includes building trust, forming networks, and genuinely connecting with others.  The third meta-competency she describes is adaptability, which requires leaders to let go of outdated beliefs and unlearn no longer beneficial behaviours or strategies.  

“Take people out of their comfort zones and see them in different settings and environments”
Nadine emphasises that while a candidate’s CV and experience remain critical, boards (and particularly nomination committees) must go beyond traditional criteria to understand behaviours and personalities for internal talent and CEO succession pipelines, building relationships with potential candidates much earlier in their careers, long before the formal selection process begins.  

The three top takeaways for effective boards from our conversation are the three meta-competencies to help CEOs navigate complexities:

1.      Self-awareness

2.     Relational capabilities

3.     Adaptability.