Industry digest: Why a CEO has a lot in common with the prime minister

Watching Rishi Sunak and Sir Keir Starmer slugging it out on the campaign trail, I’ve been struck by the similarities between choosing automotive business leaders and electing the next prime minister. Both scenarios involve assessing candidates based on their vision, leadership skills, credibility and ability to navigate complex challenges. As the automotive industry undergoes significant transformation, the stakes could not be higher, making the selection of the right leader crucial for future success. First and foremost, leaders must have a compelling vision and an ability to sell it, whether it is a set of policies to address the economy, the NHS or education or a five-year strategy to navigate an automotive organisation through the shifting sands of electrification, automation, digital technology and the sustainability agenda. Voters and stakeholders are looking for leaders who can not only identify the right direction but to inspire confidence in their ability to achieve long-term goals. This requires strong communication skills to tell the story and convince people to go on the journey but, crucially, it must also be underpinned by credibility and trustworthiness. The latter is not a quality that is normally associated with politicians, which makes the task for Sunak and Starmer of presenting themselves as candidates who can be trusted to deliver on their promises all the more challenging. Trust is not something that can be acquired in an instant. It must be earned over time through a track record of integrity, transparency and accountability. In the same way, leaders in the automotive industry need to establish credibility through consistent performance, ethical behaviour and a commitment to corporate social responsibility. Stakeholders are more likely to support leaders who demonstrate honesty, reliability, and a genuine commitment to the organisation’s mission and values. To strengthen that bond of trust, political and business leaders need to be adept and proactive in the way they engage with stakeholders. Politicians must connect with voters and demonstrate how they understand their needs and concerns. Automotive business leaders must engage empathetically with a range of stakeholders, whether they are employees, customers, investors or regulators. Only by listening to stakeholders and addressing their needs can business leaders foster loyalty, drive innovation and enhance the organisation’s reputation. Once the new PM has been elected, or once the automotive business leader has been appointed and their five-year strategy agreed, the focus shifts to their leadership skills in delivering against their manifesto or strategy and building sustainable growth. That means making sound investment choices to deliver the required return and putting the right people in the right place at the right time to deliver on their promises. It means having the skills to unite and motivate, to foster a strong organisational culture, to drive innovation, to build partnerships and, where necessary, make the tough decisions. As the COVID-19 pandemic showed, some of the toughest decisions are necessary when the unexpected strikes, and the next prime minister will be beginning their term of office in a world of lethal political instability, with all the economic aftershocks that could bring. In a similar way, automotive business leaders must be ready to respond to the unexpected in the shape of supply chain disruptions, technological advances or regulatory changes. As with our political leader, they need to make swift and informed decisions to mitigate risks and seize opportunities. ‘Change’ is the simple slogan that has been adopted by the Labour Party, but it is equally descriptive of the Tories in terms of some of the policy initiatives they have announced. It is also a word that sums up the global automotive industry right now. The world is changing technologically but is doing so against a backdrop of instability and danger. Never has it been so important to choose the right leader to meet the challenges ahead. Lynda Ennis is the founder of global automotive and mobility executive search company Ennis & Co.