Leadership Compass: On a Quest for Ikigai

The modern world of work, determined by the oft-cited BANI conditions, challenges managers in ways that go beyond the (by now known) volatility of the VUCA world. Business leaders must find ways to cope with this brittle, anxious, non-linear, and incomprehensible (i.e., BANI) new reality. But how do you find orientation and purpose amidst such circumstances?

Our BANI World: Living in Uncertainty and Unpredictability

“Our lives in today’s society have become more fast-paced and unpredictable. Not only is it hard to say what’s going to happen tomorrow; the complexity of current events makes it virtually impossible to clearly tell apart cause and effect. Occurrences like the coronavirus pandemic or the war in Ukraine have opened our eyes to the fact that life has never been less plannable than it is today,” says WU Executive Academy Dean Bodo B. Schlegelmilch. Today’s world isn’t just volatile: it can suddenly be very brittle, with chaotic circumstances fundamentally shaking formerly stable systems without warning. Such enormous uncertainty can petrify some managers, and the flood of information and disinformation as well as constantly increasing workload can further exacerbate the situation.

Ikigai: Purposeful Action in Tumultuous Times

A valuable approach for tackling the complexity of the BANI world can be found in the Japanese philosophy of Ikigai. But what does Ikigai actually mean? “Iki” means “life,” and “kai” refers to a purpose, effect, result, or a benefit. Put together, “ikigai” can be translated as a “reason to live” or “what you live for.” As a practice-oriented philosophy of life, it is a reminder to find purpose in the little things, actions, and moments, and to know the reason you get out of bed for every morning.

Finding Purpose as Key to Professional Fulfillment

Klara Palucki, Program Manager of the WU Executive Academy’s EMBA Health Care Management, once went on a search for her Ikigai herself and successfully found it. “I studied later in life, getting my bachelor’s degree in business and HR management,” she recounts. When the ensuing job search left her stranded at first, she “remembered this book on my bookshelf.” She is referring to one of the countless manuals written for readers looking for Ikigai. Klara Palucki successfully answered the four questions that lead to Ikigai, after which (before joining the WU Executive Academy) she spent several years coaching women, among them many managers, who were looking for a new professional opportunity or undergoing some other change process.

The Ikigai Principle: 4 Questions on the Path to Personal Meaning in Life

Ikigai is based on four central questions, which are visualized in a Venn diagram:

1. What do you love?
2. What are you good at?
3. What does the world need?
4. For what can you be paid for?

Where the four dimensions intersect is where you will find your purpose in life. And this Ikigai, Palucki points out, enables managers to work out a purpose-driven, sustainable approach to their work, benefiting both themselves and their teams.

Living Ikigai at Work: the Answer to BANI that Makes Sense

In the unpredictable BANI world, Ikigai can be a compass for business leaders. It helps them focus on what really counts and make decisions based on their values. “In turbulent times, it makes all the difference to know your values and use them for guidance,” Schlegelmilch says. “Ikigai helps us find our inner strength to stay the course also in uncertain times.” Klara Palucki adds: “If you know where you want to go, you have already set out on your journey of self-management. Having this kind of clarity is a leadership skill that has a positive impact on the entire team.”

Successful Management: From Self-Leadership to Ikigai

Managers who clearly see a purpose in their leadership come across as more authentic and inspire their teams to also choose a path based on purpose. They create a work environment in which the individual strengths and interests of their employees matter. It’s all about job crafting, i.e., actively shaping one’s own work environment and tasks. Palucki explains: “If you are not happy in your job, you can take small steps to find out which tasks you are good at and which ones less so. This way, you can craft a work environment that better fits your own needs. Often, it helps to take a closer look at where your sense of purpose got lost. By shifting around tasks in the course of job crafting, redistributing them, or initiating new projects, you can re-discover your purpose.”

Discover the Ikigai of a Company by Asking Clear Questions

Ideally, managers not only know their own ikigai but also that of the company. After all, the questions they answered in order to find their personal ikigai can also be answered for the company: companies must produce something they can get paid for, and in the best case, this product is something the world needs (dimensions three and four). This will only work out if the company’s employees are good at their jobs (dimension two). And with an eye on HR costs, it would make a lot of sense for employees to like their work at least enough to stay with the company beyond the trial month (dimension one). Schlegelmilch: “Ikigai is like a book of recipes that helps you find a company’s purpose.

Meaningful Leadership: Reflection and Continuing Education as a Basis

In the end, it’s about finding joy in what you do. Managers should ask themselves why they do what they do and whether that gives them a sense of accomplishment. Further education offers such an opportunity to remind yourself of the purpose in your career.

Klara Palucki even includes the question of purpose when advising prospective MBA students: “In personal consultations, we look at the applicant’s intrinsic motivation for pursuing further education, particularly when the path is not clear yet and the chosen program does not seem to fit the person’s career path up to this point. Once they know what motivates them, they’re able to make a much more conscious decision regarding the program.”

Conclusion: Ikigai as the Key to Sustainable Leadership in the BANI World?

Today’s BANI world is full of challenges for managers, but it also comes with opportunities for business leaders courageous enough to choose a new path. As a tool for finding purpose, ikigai can help us clearly define our own values and goals and reconcile them with our professional duties and leadership style. Managers who know what motivates them do a better job motivating staff and creating a work culture based on purpose together with their teams – which is a sustainable investment in the company’s success.

Klara Palucki summarizes: “It simply makes sense to base your actions on a purpose. More and more people strive to be part of something bigger and would rather stay in a company if they feel that their work serves a (good) purpose.” In an uncertain and complex world, relying on purpose is no longer just fashionable but has become a prerequisite for modern, sustainable leadership.

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