A Thinking Business publication
We live in a world where change management is no longer associated with project implementation but is an important aspect of daily life. For business leaders dealing with economic uncertainty, geopolitical upheaval, supply chain threats and technological transformation, agility has become not a nice-to-have but an absolute prerequisite.
Another prerequisite that is too often overlooked in the C-suite job description, though, is empathetic leadership. To guide organisations through today’s era of change, the tone from the top needs to be more than just confident, decisive and adaptable, it also needs to come with a heavy dose of empathy. Only then can leaders truly respond to the fast-moving needs of customers, employees, investors and other stakeholders.
Sahar Hashemi OBE, who founded Coffee Republic in 1995 and built it into one of the most recognisable high street brands, says times have changed and so has leadership.
“When I started building Coffee Republic, I was always told, ‘Don’t be so emotional – this isn’t personal. It’s business. Don’t show any vulnerability’,” she says. “There weren’t that many women around me, and I thought being businesslike meant putting on a corporate mask.”
But, she adds: “I know the reason I took that company to 100 stores in five years was because I cared deeply: it was my resourcefulness, my problem-solving, and also my caring. Those qualities were my business super powers.”
Since Coffee Republic, Sahar has founded Skinny Candy, a brand of sugar-free sweets, as well as co-chairing the UK government’s Scale Up Taskforce and establishing Buy Women Built, a consumer movement to increase visibility of female founded brands.
“That softness is not a weakness,” says Hashemi. “Ninety per cent of women-built brands start from a personal need, solving a problem. Those founders have empathy with customers because they themselves are customers, and they have empathy with their teams because they lead in a different way. These women are redefining what leadership looks like – ultimately our customers are not AI, they are human beings, so we have to be out there listening to what they want.”
Sara Bailey has been senior partner at Trowers & Hamlins since 2021, and says that, male or female, today it is critical to lead in an empathetic way. “The leaders I find genuinely inspiring are those that actually care,” she says. “They care about people and they care about clients.”
Defining empathetic leadership
Bailey says an empathetic leader is someone who engages with people, listens and is authentic and true to themselves.
“It is also about humility,” she says. “I don’t think I know everything. Leadership is more about knowing yourself, knowing your weaknesses, and making sure you surround yourself with people that can help you address those weaknesses.”
A great leader is someone who makes others feel and look good, rather than themselves, continues Bailey. It is someone who possesses emotional intelligence and can apply it when making business decisions. And it is someone who can step into the shoes of their employees, recognise their challenges and actively seek out ways to support them both personally and professionally.
Hashemi says: “Leaders are always under pressure to know all the answers; to not ask stupid questions. But in a world that is changing so fast and shifting on its axis, clients need empathy and want to know you are listening. They want you seeing the challenges through their eyes, not your own.”
Authenticity is also a key attribute of empathetic leaders. Bailey, who came to London from Yorkshire with a dream of becoming a lawyer but no family history in the profession, remembers being told to change in order to fit in. In fact, clients responded better when she brought her genuine self to work.
“I’m proud that one of the Trowers values is ‘we’re not afraid to be human’,” she says. “Everyone is different and you don’t have to pretend or try to be someone you’re not.”
Why now?
In the current climate, it has never been more important for business leaders to be fleet of foot, constantly listening and engaging with others to stay abreast of developments and adjust course when needed.
Technological transformation is a key driver of that need to be nimble.
Bailey says: “In the legal profession, we have to embrace AI, understand it and make it work for us. But it just brings everything up a level – a bot can do a lot of the work for us but clients are not robots and nothing can replace a trusted relationship when they are facing tough decisions. There is a new model forming, and relationships are at the heart of it.”
Empathy is not only vital to keeping up with customer demands, but also to attracting and retaining talented team members. The new generation of employees coming into the workforce is looking for more from an employer.
Hashemi says: “The younger generation are looking for purpose. That doesn’t mean that they have all got to be finding the cure for cancer, but they want to feel that what they are doing is having an impact. They are much more purpose-driven. By being close to customers, your people can feel they are solving real issues and making a difference.”
Leaders that invest time in getting to know individuals are better placed to embrace diversity of thought, diverse ways of working and new perspectives and approaches. We know that truly diverse workplaces breed innovation, healthy challenge and, in turn, higher productivity and better employee retention.
Bailey says: “Our most expensive commodity is our people and I don’t believe people come to work wanting to fail. Maybe some people don’t care, but they are the outliers. So as a leader, I have to ask myself how I can unlock every individual’s potential – that has to be the right business solution.”
An empathetic leader is not someone who is soft or weak, or someone incapable of making the tough calls. Instead, when they make business decisions, they really consider their impact and strive to make that impact positive.
Bailey concludes: “Because empathy is viewed as soft, too often it is pushed down. But you can have great people skills and be a great leader. Someone who can inspire their people and build trust among their clients is going to succeed, even with all the challenges we face as leaders today.”
Making more time for human conversations may actually be the key to success in the new age of AI.