Thought leadership has emerged as a crucial mantra for today’s business leaders. Although it may appear a modern concept, its roots extend deep into history, long before technology transformed communication into a 24/7 phenomenon. The term, however, was first coined in 1994 by Joel Kurtzman, the founding editor of Strategy+Business magazine. He described it as a quality possessed by people with a deep understanding of their market and unique insights into customer needs.

1. Historical Foundations

Consider pioneering figures of the past, such as Matthew Boulton and James Watt. Boulton, a successful British entrepreneur, expanded his father’s toy business internationally through catalogue marketing and direct sales. His collaboration with Watt on the steam engine was instrumental in promoting the idea of the Industrial Revolution. Boulton advocated for the steam engine’s transformative potential. The Royal Society endorsed their innovations, leading to significant contracts, including a monopoly in France, propelling them to success. Another notable example is William Lever, the founder of Lever Brothers, now Unilever. Lever revolutionised laundry with the Sunlight Self- Washer, a product that simplified the labour-intensive washing process. Understanding that traditional advertising was often met with scepticism, he produced an educational booklet that outlined the societal benefits of cleanliness. This not only positioned Lever as an industry leader, it significantly influenced public perception and habits.

2. Evolution

Since the mid-nineties, the definition of thought leadership has expanded beyond the realm of business to encompass several areas of expertise and now includes individuals or organisations capable of generating and sharing innovative ideas that shape industries. Recognised for their expertise, thought leaders command significant influence. The essential qualities of a thought leader, whether an individual or an organisation, include deep knowledge, trustworthiness, creativity and the courage to initiate change. Thought leadership is about influence, inspiration and implementation. Denise Brosseau of the Thought Leadership Lab provides a compelling definition that I strongly agree with. “Thought leaders are informed opinion leaders and trusted sources who inspire others with innovative ideas, turning concepts into reality while fostering sustainable change across their industries and communities.” In today’s competitive landscape, thought leadership has become a cornerstone of organisational strategy. Business leaders recognise that establishing themselves as thought leaders is essential for attracting customers, as well as for enhancing business opportunities and gaining a competitive edge in their respective sectors.

3. Defining Thought Leadership

What defines a true thought leader? Is it someone with a distinct viewpoint or an individual who can think outside conventional boundaries? In essence, a thought leader is both. Someone with unique perspectives can challenge the status quo and innovate within their field. Thought leadership manifests itself in various forms, whether through individual contributions, corporate initiatives, or brand messaging. Thought leaders, like Richard Branson and Steve Jobs, are recognised as trusted authorities who influence and inspire others. They share valuable insights and foster significant change within their companies, their communities, and beyond. Do we have such figures in Pakistan? Are they actually focused on the impact they can make and the boundaries they can push for overall betterment, or does it boil down to profit margins, cost control, increased efficiency, economic conditions and a consistent push for subsidies?

4. Current Trends

According to the 2023 Edelman Report, 52% of decision-makers and 54% of C-level executives spend an hour or more every week consuming thought leadership content. This statistic underscores the importance of thought leadership as a key performance indicator (KPI) for CEOs and organisations aiming to engage effectively with their audiences. In the context of Pakistan, we see aspiring thought leaders using various platforms – podcasts, television interviews, speaking engagements and social media – to build their presence and credibility. X (even now using VPNs) is abuzz with individual personalities. They take part in podcasts and panel discussions and publish articles, creating content aimed at resonating with their target audiences, establishing trust and demonstrating their expertise.

5. The Diminishing Novelty of Thought Leadership

However, the title of ‘thought leader’ is becoming more common, often diluted by superficial claims. Individuals and organisations in the major sectors of the economy frequently hire PR firms to craft their narratives and position them as industry experts. While these efforts can enhance visibility, they may not always translate into genuine thought leadership. To evaluate true thought leadership, one must consider the underlying motivation. Are these efforts aimed at selling products, or are they focused on advancing meaningful ideas? Is the motive to take on a higher position in government or is it a genuine desire to contribute? The litmus test lies in whether these activities benefit a broader community or address significant societal issues.

6. Corporate Thought Leadership

On a corporate level, thought leadership is an essential strategy for organisations that aim to shape, promote and own topics of societal relevance. Brands like Apple, Unilever and Microsoft exemplify this approach. In Pakistan, we see business leaders projecting their founders or their corporate brands. Whether this is genuine or greenwashing is too early to judge. Many companies seek to position themselves as thought leaders through various initiatives, but not all these efforts hold equal weight. There is a flurry of activity and initiatives by companies that purport to position a CEO, a founder or a brand as the go-to expert and a visionary thought leader. While it is okay to focus on influencer marketing, I would disagree that these activities are synonymous with thought leadership. I am not challenging the efforts, but I do advocate a litmus test to ascertain whether these activities qualify as thought leadership traits. This can be done by assessing whether the end goal is to sell more products or create a following around a unique idea. Are they benefiting themselves and their companies, or do their activities benefit the community or a larger cause? I would recommend that companies and individuals take a pause and take a deeper look at these efforts and claims.

7. Importance of Credibility and Trust

For an organisation to be perceived as a thought leader, it must build credibility and trust. This involves consistently delivering valuable insights and perspectives that resonate with the target audiences. Brands that achieve this level of trust become the go-to authorities in their fields, capable of influencing industry trends and shaping public opinion. Thought leadership transcends knowledge sharing; it is about influencing decisions and breaking through the noise to achieve extraordinary results. This requires a commitment to collaboration and leadership and a willingness to innovate.

8. Social Impact Through Thought Leadership

The 2022 Edelman Report highlights that 61% of decision-makers believe that thought leadership is significantly more effective at demonstrating the value of an organisation’s products or services compared to traditional marketing approaches. Furthermore, 55% of decision-makers assert that during economic downturns, high-quality thought leadership becomes increasingly crucial for businesses looking to secure contracts.

9. To Conclude

In order to become thought leaders, Pakistani businesses must prioritise genuine technology adoption, ethical and sustainable practices and robust human capital development. They should aim for innovative breakthroughs that exceed global competitiveness standards. In today’s changing world, Pakistan must not only adapt; it must carve out a strong presence in the global marketplace through innovation and forward-thinking strategies.

Raeda Latif is GM Marketing & Business Development, Pakistan Stock Exchange. raeda.latif@psx.com.pk