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1、15/09/2022INDEPENDEN T P U B L I C AT I O N BY#0827R AC O N T EU R.NE TTHE FUTURE CEOWHATS NEXT FOR EXECUTIVE EDUCATION?HISTORY LESSONS IN CRISIS MANAGEMENT1206RIGHTING THE SHIP ASTHE NEW SKIPPER14Bringing A More Inclusive Future Into FocusExperts in execuve search and inclusiveorganisaonal consulta
2、ncygreen-park.co.ukCMYCMMYCYCMYK5616_Green Park_Future CEO Ad Banners-V4.pdf 1 13/09/2022 11:22:41R A C O N T E U R.N E TT H E F U T U R E C EO0302indsight is a wonderful thing,but,if companies could have foreseen the UKs exit from the EU before the referendum in June 2016,things might now look diff
3、erent for British enterprise.As it stands,the extra bureaucracy involved in trading with the EU has upended many companies business models.If only there had been a global geopolitical expert on hand to warn of Brexits implications and to counter the market view that it wouldnt happen.Such expertise
4、might have helped companies to get ahead of the issue,according to Mark Freebairn,partner and head of the board practice at global head-hunter Odgers Berndtson.Unfortunately,that lack of fore-sight has had a resounding impact on economic confidence,even in the seemingly placid world of re-cruitment.
5、“Economic confidence defines whether or not youre pre-pared to pay our fees when it comes to hiring someone,”Freebairn says.And its not only Brexit.The im-pact of geopolitics on global compa-nies has increasingly made the headlines in recent years.For ex-ample,Covid-19 affected 16%of UK businesses s
6、upply chains,while significant disruption hit 30%of firms in manufacturing,wholesale and retail.Meanwhile,Russias latest invasion of Ukraine and its impact on energy bills in Europe mean that many small business owners will struggle to keep the lights on in the coming months.“The repercussions of co
7、nflict and inflation are people tightening their belts,which is ultimately going to reduce the demand for services,”says Jeff Maggioncalda,CEO of online training provider Coursera.Other issues,such as the trade tensions between China and the US,are also of great concern.Tech-nology has become a geop
8、olitical battleground between the two countries which account for 76 of the worlds 100 most valuable com-panies particularly when it comes to regulating 5G and AI.Of course,the extent to which a given firm will be affected by bilat-eral tensions,tariffs,sanctions and the rest depends on the exact na
9、ture of its business and where it operates.But as the economy becomes ever more global and interconnected,geopolitics is undoubtedly having a greater impact on companies of all sizes across the board.Its more important than ever,then,for firms and their leaders to be able to tap into genuine geo-pol
10、itical expertise.But where can they obtain this and how should it feed into their work?Chon Tang is founding partner of the Berkeley SkyDeck Fund,a high-tech startup accelerator based in Silicon Valley.He reports that com-panies in this space rely on word of mouth to help them deal with emerging geo
11、political challenges.“We are all just in the early stages of understanding how government interactions are affecting supply chains,investments and mergers and acquisitions,”Tang admits.“A lot of CEOs are concerned,but very few have solid answers.”For Iain Pickard,president and COO of risk services f
12、irm Sigma7,its important to take such issues seriously.He says:“The days when geopolitical risk was not something most companies needed to worry a lot about are long gone.Its now a board-level issue.”Pickard advises CEOs to“look at your global operations to figure out where youre exposed and then se
13、ek help from the experts”.Beyond what CEOs are sharing by word of mouth,such expertise isnt readily available among ordinary top-tier management structures.Freebairn says that people with the relevant knowledge typically at a governmental level arent neces-sarily motivated to use it to help a firm g
14、ain a competitive edge.As a result,its often brought in tempo-rarily in the shape of a consultant or a non-executive director.The need for such knowledge will obviously vary according to the business theres a vast difference between the needs of a defence company and those of a supermar-ket,say.Geop
15、olitical expertise is fundamental to Sigma7s business,so it makes sense that its executive deputy chairman is a former deputy commander of Nato,who can access networks that provide deep insights on a country-by-country basis.For example,its contacts in Peru,where a Marxist government has recently be
16、en elected,can translate what that means for the mining industry.Meanwhile,its contacts in Egypt know that the price of bread is a significant politi-cal problem and that rising grain pri ces could lead to social unrest.But the answer to the problem of sourcing geopolitical expertise may already be
17、within reach.Even if theres a distinct lack of expertise in the upper echelons of many compa-nies,it often exists untapped further down the hierarchy.Professors Andrew and Nada Kakabadse from the University of Readings Henley Business School have observed that many regional or subsidiary managing di
18、rectors already understand the impact of local politics and geopolitics on their global business.These highly knowledgeable managers are held accountable for achieving local or regional performance targets.Yet they are continually ignored by their top-level management teams,according to the professo
19、rs,and excluded from initial discussions on strategy in which geopolitical risks may be considered.Maggioncalda stresses that his firm employs country specialists who understand consumer and business trends and whats happen-ing with various governments.“Our geo political insights come from the busin
20、ess model,”he says.Buying in expertise through non-executive directors or consult-ants can get you only so far.Compa-nies may be better served in the long term by building a broader knowledge base through the diver-sification of their workforce and digital transformation.The solution,then,might be t
21、o consolidate the geopolitical knowl-edge thats already available to a companys decision-makers,ex-pand that pool and support it with external expertise where neces-sary.Then its just the small matter of learning from those insights and pre-empting the unknown.A new world:why CEOs must tap into geop
22、olitical expertiseTHE FUTURE CEOFrom the Brexit vote to the war in Ukraine,there have been several international upsets in recent years.Theres a growing case for firms to hire analysts specialising in such risksDistributed inSophia AkramPublished in association withAlthough this publication is funde
23、d through advertising and sponsorship,all editorial is without bias and sponsored features are clearly labelled.For an upcoming schedule,partnership inquiries or feedback,please call+44(0)20 3877 3800 or email Raconteur is a leading publisher of special-interest content and research.Its publications
24、 and articles cover a wide range of topics,including business,finance,sustainability,healthcare,lifestyle and technology.Raconteur special reports are published exclusively in The Times and The Sunday Times as well as online at The information contained in this publication has been obtained from sou
25、rces the Proprietors believe to be correct.However,no legal liability can be accepted for any errors.No part of this publication may be reproduced without the prior consent of the Publisher.Raconteur MediaEdelman,2022R I S K M A N A G E M E N TSophia AkramA freelance journalist with interests in for
26、eign policy,human rights andglobal development.She has worked for outletsincluding Vice andAl Jazeera.Sam ForsdickRaconteurs staff writer,with particular interests in technology and the future of work.He has written for publications including Press Gazette and the New Statesman.Alec MarshAn author a
27、nd journalist whohas contributed to titles as diverse as the Spectator and The Field.He is alsoeditor-at-large at Spears magazine.Natasha SerafimovskaA freelance writer specialising in the futureof work,digital transformation and workplace learning.David StirlingA freelance journalist writing news a
28、nd feature articles for publications including national newspapers and businessmagazines.ContributorsHraconteurraconteur.storiesraconteur-media/future-ceo-sep-Deputy editorFrancesca CassidyEditorSarah VizardSub-editorsChristina RyderGerrard CowanChief sub-editorNeil ColeCommercial content editorsLau
29、ra BithellBrittany GolobReports editorIan DeeringDeputy reports editorJames SuttonDesign/production assistant Louis NassDesignHarry Lewis-Irlam Celina LuceyColm McDermottSamuele MottaSean Wyatt-LivesleyDesign directorTim WhitlockIllustrationSam PeetKellie JerrardCampaign managerUsman ShahHead of pro
30、ductionJustyna OConnellAssociate commercial editorPhoebe BorwellWHO SHOULD COMMUNICATE THE COMPANYS STANCE ON A CONTENTIOUS SOCIAL OR GEOPOLITICAL ISSUE?Percentage of 14,000 respondents polled in an online survey31%The CEO19%The local CEO in the country/region most affected22%An executive with respo
31、nsibility for social/geopolitical issues18%Head of communications18%A member of the board of directorsJorg Greuel via Getty ImagesT H E F U T U R E C EO04Commercial featureSuccession:why your new CEO needs a next in lineWhen your current executive team is thinking of moving on,its already too latehe
32、 arrival of a new CEO is a momentous time for any business.It signals a shift in direction,and a recalibration of priorities around the new executive team and its leader.Its an all-encom-passing moment that can dominate a businesss whole operations but as well as focusing on the here and now,compani
33、es should also look to the future,and their next CEO.Even before your current chief executive has their feet under the desk,smartly-run businesses should be looking to find who will be their next leader.“Succession planning is becom-ing more and more important,”says Emily ORourke,head of research at
34、 Wilbury Stratton,a global talent research firm.“But it can look a little bit of a strange concept if a CEO has a five-or more-year tenure,because if youre doing succession planning right,your CEO is going to be thinking about their succession pretty much from the point theyre in that role.”Preparin
35、g for your exit on arrival may seem counterintuitive,but its vital to ensure a good transition of power for the next time a shift in leadership is necessary at a company as well as a measure often required by sharehold-ers as part of good fiduciary duty.Wilbury Stratton has advised numerous FTSE 100
36、 and Fortune 500 companies on succession planning exercises,including strategic reviews of the entire executive team.Some of these leaders will inevitably have been in post for only a short time.“If you look at that from an outsiders perspective,it looks quite hostile,”says ORourke,”but its a huge,f
37、un-damental part of the leadership remit to have that successor.”Replacing a vital executive with a strong successor is not something that happens overnight and finding the right person for the role can take time.For executive team succession programmes,it takes up to three months of focused researc
38、h to map out and qualify a shortlist of potential succession options.Organisations rarely have the internal capacity to conduct this process,which is where Wilbury Strattons dedicated research services come in.“We find companies get into a lot of problems when theyre reacting to replacing leadership
39、 positions rather than preparing,”says ORourke.“If you find yourself in a position where a leader is exiting,even with a six-month notice period,thats not really enough time to get someone to step into that leadership role.”That matters when considering the fiduciary duty that businesses have to the
40、ir shareholders and more importantly,to regulators.“Any firm thats regulated,from oil and gas suppliers to financial services firms,has a requirement for key leadership positions to have a pipeline attached to the role,”she says.Beyond that,“its just very good business sense,”ORourke says.It helps e
41、vidence to employees that a company is well-run and thinking of the future and better yet,can act as a method to retain high-flying talent by demon-strating to them a potential route of progression in their career to the c-suite.ORourke points to big busi-nesses like Unilever who manage their key ta
42、lent in global positions across functions to build their knowledge,as well as maintaining their succes-sion plan.Most businesses claim to have a suc-cession plan in place or in the embry-onic stages,but digging a little deeper can often uncover theres little detail involved beyond a high-level accep
43、t-ance that leaders will eventually need to be replaced.That can often result in companies struggling to compete in the market for skilled talent lead-ing to sub-par replacements for key figurehead roles.“Hiring in senior leaders from elsewhere can become a very,very expensive problem really,really
44、quickly,”says ORourke.It can also narrow the pool of talent from which you can select,with knock-on effects on diversity and inclusion.What companies ought to do is develop an ongoing process of evaluat-ing whats needed from executives and their replacements,and that is revis-ited every six months t
45、o ensure things are up to date,according to ORourke.“Thats not something thats done very often,in our experience,by big corpo-rates,”she says.Organisations rarely have the tools internally to identify,manage and curate datasets pertaining to succession.Data often sits statically on Excel,for example
46、,once an initial scoping exercise is done.These pro-cesses are not robust enough to con-stitute a serious succession planning programme.But Wilbury Strattons expertise can add that robustness and rigour to searching for successors in a way that internal processes run by time-poor talent leaders cant
47、.“It gives them confidence to know theyve found the best of the best for whatever that role may be,”says ORourke.That confidence can radiate throughout companies allaying fears that some may have about suc-cession planning,that it could prove a surreptitious way to manage them out of their role.“Com
48、panies that have really strong succession planning in place have a culture of talking about succession,”says ORourke.The best companies who are most pre-pared for smooth successions inte-grate succession planning into KPIs and target setting for their employ-ees,making it a built-in part of good pra
49、ctice as a leader.And that goes for businesses,too.“Its reasonable to view it as a failure of leadership to come to the end of a term and not have someone in place to succeed you,”says ORourke.“People think about it the wrong way round.”For more information please T Companies that have really strong
50、 succession planning in place have a culture of talking about successionKey takeaways123Preparation is keyEnsuring you have pre-planned an executive succession is vital,as it helps you remain competitive in a changing world.Create a culture of successionThe idea of succession planning can ruffle fea
51、thers-so making sure youre clear as to why things are happening and when,is vital to ensure that employees and executives feel valued.Broaden horizonsProper succession planning enables businesses to select from a broader,diverse range of candidates-ultimately helping your business grow in a better w
52、ay.R A C O N T E U R.N E T05ROOM FOR IMPROVEMENT:IPSOS GENDER AND ETHNICITY SPLITSProportion of employees by pay quartileffering economic and socio-political turbulence aplenty,the past year has proved particularly busy for multinational market research firm Ipsos.But,for its CEO in the UK and Irela
53、nd,Kelly Beaver,there couldnt have been a better time to be at the helm.“In some ways,its been a brilliant year to take over the reins,because its allowed me to do more than what some CEOs manage in 10 years,”says Beaver,who started the job in November 2021.And her output seems unlikely to diminish.
54、In her first external review with her leadership team,Beaver was informed that her pace of working was“relentless”but she has no plans to slow down.“You set the tone;you cant be com-placent,”she says.“While were one of the strongest research businesses in the country,we maintain that only by staying
55、 constantly ahead.We cant relax into the status quo.”This need for constant improve-ment extends to her attitude to-wards hybrid working.Beaver feels that the companys culture is“being eroded”,because colleagues are not spending enough time in the office she explains.“Im having to trade this off.”Pe
56、oples worries about the cost of living are also rippling through to the recruitment process.In fact,Beaver has noticed that pay has overtaken work/life balance as the main concern at interview stage.“This side of things is being men-tioned too,but Im no longer seeing it as the dominant issue,”she sa
57、ys.Looking beyond remuneration,Beaver believes that Ipsos progres-sive HR policies have been an im-portant weapon in the war for talent.These include shared parental leave and paid leave for pregnancy loss,fertility treatment and issues relat-ing to the menopause.“If you as an employer can support y
58、our people through key life mo-ments,that can pay dividends in terms of talent attraction and reten-tion,”she says.“I have an ambition for us to be the most supportive employer in our industry.”Beaver ranks the enactment of these policies among her proudest achievements as a business leader.“As a fe
59、male CEO,I find that seeing that we have got things such as menopause policies in place is really reassuring,”she says.“It means that we can champion these policies in a very authentic way.”Beaver is the first female CEO of alarge research agency in the UK.While she doesnt think much about that poin
60、t of difference,she does feel a keen sense of responsibility.“I know that it makes a difference to the women coming up through the business and the wider indus-try,”she says.“The day I got this role,I was inundated with little cards from women across the busi-ness congratulating me.”One of Beavers p
61、riorities for the year ahead is to address what she calls the“horrific”gender and ethnicity pay gaps she inherited.According to Ipsos most recent pay gap reporting,the average differ-ence in pay between genders was 16.6%in favour of male employees.Despite having a more diverse work-force than the UK
62、 working popula-tion at large(77%white and 23%ethnic minority),salaries tend to favour white employees,with an ethnicity pay gap of 18.2%.“The previous pay gap I had to stand in front of was not my pay gap,”Beaver says.“This next one is mine,because the actions I take will start to feed through.Id b
63、e fairly disappointed if it didnt improve.”Looking to the future,she says:“My priority is to ensure that we have a sustainable,profitable organ-isation,where people want to come and work and which makes a posi-tive contribution to society.”The decisive action she has already taken for the business h
64、as surely set the tone for whats to come.training,Beaver says that she is“past incentivising it.I will get them back a couple of days a week,come hell or high water.”Her other pressing concern is the effect of high inflation on the work-force:“The biggest thing on my mind at the minute is the cost o
65、f living.It looks like our staff will really strug-gle if we dont take serious measures between now and next year.”Although she is reluctant to con-tribute to wage inflation,Beaver is exploring other ways to support the firms 2,000 UK-based employees.The company already offers a range of financial b
66、enefits for staff,includ-ing loans.These will be repackaged to ensure that everyone is aware that they are available.In addition,Beaver hopes to be able to offer all staff below associate director level a voucher that can be used at outlets such as Asda,Tesco and Amazon.She says that this will help
67、people to pay for essentials and offset some of their energy costs.While the figures have yet to be confirmed,she is considering three vouchers for 100 over the winter.“I have to balance meeting our targets and giving to our staff,”Kelly Beaver,CEO of the Paris-based research and consultancy firm in
68、 the UK and Ireland,is determined that its staff will be spending more time together in the office,come hell or high watertogether and in front of clients.She believes that this is particularly true in the case of the companys more recent joiners.Beaver,who hosts lunches with the companys graduate r
69、ecruits,was shocked to find that several of them hadnt made presentations to clients in their first year.And,despite re-porting feeling lonely,many were still coming in only once a week.“Thats development thats being stunted,”she says.“I am very wor-ried about this and Im determined to try something
70、 new.”That“something new”involves a new approach to hybrid working.“There has to be a balance,”Beaver says.“Its not all about the worker having work/life balance.”Previously,employees were asked to come in two days a week one compulsory day and one day of their choosing but Beaver will be asking peo
71、ple to have“informed conver-sations”with their line managers about the businesss requirements and their needs to“find something that works for both sides”.While previous efforts to encour-age people back to its London office involved social events and in-person Sam ForsdickIpsos boss decries hybrid
72、workings cultural impact I N T E R V I E WOIpsos,2021While were one of the strongest research businesses in the country,we maintain that only bystaying constantly aheadWhiteGenderEthnicityEthnic minorityMaleFemaleTop quartileUpper mid quartileLower mid quartileLower quartileTop quartileUpper mid qua
73、rtileLower mid quartileLower quartile50%39%37%43%85%78%74%73%50%61%63%57%15%22%26%27%R A C O N T E U R.N E TT H E F U T U R E C EO0706 Understanding a business in its entirety gives you theconfidence,from an entrepreneurial perspective,to think:I know how it all worksCEOs job is never easy,but leadi
74、ng a company through a period of great economic uncertainty takes the challenge to a different level.Business leaders must not only keep tabs on cash flow and profitability;they must also minimise employee churn and act as a beacon of hope for those who stay with the organisation.This combination of
75、 challenges has got many CEOs rethinking their approach to leadership and consid-ering whether they need to invest in executive education.A survey by the Graduate Management Admission Council found that nearly half of all executive MBA programmes repor-ted a significant increase in applica-tions in
76、2020.This trend continued,albeit at a slower pace,in 2021,with a third of MBA courses reporting a substantial growth in applications.But is an MBA the right choice,especially when there are so many examples of successful CEOs who have forgone university education altogether?How do you decide whats r
77、ight for you when time is tight and the stakes are high?There is,of course,good reason for the increased interest in executive MBAs.These programmes usually cater to the busy schedules of busi-ness leaders,while giving them an opportunity to see their organisa-tions through a different lens.The dive
78、rsity of the curricula and the breadth of experience brought by the cohort itself is enough to cover any scen ario imaginable not some-thing to sniff at in a time of crisis.our core classes has some kind of ESG element to it.”One of the key benefits of an MBA is the real industry scenarios that the
79、students bring to the classroom.Julian Rawel,director of MBA pro-grammes at the UEBS,reports that its most recent intake had about 55 students from more than 20 sectors.“We take a huge amount of care over how we select,”he explains.“We recruit a cohort of differing nationalities,genders and sectors,
80、so that were creating this kaleido-scope of skills and learning.”This diversity of thinking and holistic overview of how a business runs is what gave Michael Flynn,CEO of London-based sports ana-lytics firm DataPowa,the confi-dence to start his own business.He completed his MBA at Nottingham Univers
81、ity Business School in 1990.“Before I did that,everyone I knew in business worked for ExxonMobil,because that was the one company Iworked for as a graduate straight out of uni.So during the MBA I learnt the most from working with other people who were working in other businesses.I met people from Ko
82、dak and Shell;from breweries and banks.The social side of it was as valuable as the courses.”Flynn sold his first business in 2016 and went on to build DataPowa,which he sold for nearly 10m.Had it not been for his MBA,he isnt sure he would have had the know-how or the confidence to go for it.“I thin
83、k that understanding a busi-ness in its entirety gives you this confidence,from an entrepreneurial perspective,to think:I know how it all works.I can build a business.”An MBA,then,can be great if you have the time and energy to do it and need to go beyond your scope of expertise to build a business.
84、But theyre not for everyone.In fact,many CEOs find that self-directed learning and executive training on the job can be just as good if you take the time to understand your needs.Melinda Matthews is a former IBM executive and CEO of CodeClan,a digital skills academy based in Edinburgh and Glasgow.Sh
85、es a pas-sionate lifelong learner.At IBM,she made use of all the learning oppor-tunities it offered,from in-house training on sales strategy to a course for women in leadership at the Uni-versity of California,Los Angeles.Matthews spends a lot of time on LinkedIn Learning and Blinkist,as well as tal
86、king to other CEOs about the problems she is facing.She chooses what to learn next by study-ing her own reactions,helping her to determine if something is amiss.“I think a lot about my reactions why am I getting this irritated?That has prompted me to realise that maybe Im not doing something right o
87、r that I need a different tool out of the toolbox,”she says.“Thats cueing me up with the signal that Ive got to learn something.”Matthews credits her heightened sense of self-awareness to the years of coaching she received at IBM,which she kept practising long after she moved into a different role.C
88、oaching is a big part of the MBA programmes at JBS and the UEBS,so much so that the UEBS MBA includes credits from the schools professional development course.With or without an MBA,good leaders are lifelong learners.Both Flynn and Matthews dedicate sig-nificant amounts of time to learning outside t
89、he remit of their jobs.Flynn recently finished a Yale course on the science of wellbeing and is start-ing an archaeology course with Uni-versity College London in October.Matthews,meanwhile,is practising yoga and learning about meditation,reiki and acupuncture.While these disciplines may seem unrela
90、ted to the challenges of their jobs,they both say that exposure to different fields aids their creativity.Flynn likens his ongoing learning experience to a well-serviced Rolls-Royce:“If you keep maintaining it,its always going to deliver.”After all,being a good leader isnt about having all the answe
91、rs.Its about surrounding yourself with the right people who are motivated to find those answers for you.For that,you need more than knowledge.You need intuition,self-awareness and above all empathy.And there are many ways to work on those skills.As they grapple with leadership challenges,many CEOs a
92、re returning to the classroom.For some,self-directed learning has become an appealing alternative to MBA courses Fresh choices in executive educationNatasha Serafimovska Several universities are also continuously adapting their pro-grammes to respond to the latest challenges.For instance,this is the
93、 first year that the University of Edinburgh Business School(UEBS)is offering a fully online MBA.The University of Cambridges Judge Business School(JBS),on the other hand,has inves ted significant time and effort over the past five years to embed digitisation and ESG into its curriculum.C A R E E R
94、D E V E L O P M E N TAFT,2022RankSchool nameTHE TOP SCHOOLS FOR EXECUTIVE MBAsFinancial Times business school rankings1University of Pennsylvania,Wharton2Columbia Business School3=Insead3=Harvard Business School5Northwestern University,Kellogg School of Management6Stanford Graduate School of Busines
95、s7University of Chicago,Booth8London Business School9Yale School of Management10IESE Business School,University of NavarraAverage alumni salary$237,530$218,542$186,784$207,180$201,455$218,805$199,046$174,106$190,941$163,780Overall satisfaction9.429.529.339.569.69.719.319.29.329.57Value-for-money ran
96、k87th76th10th96th85th69th88th99th86th95th“If I compare what were doing now with five years ago,the main chan-ges have concerned technological disruption,”says Conrad Chua,head of MBA admissions at JBS.“We have added core classes on digital disrup-tion and more electives on big data and data analytic
97、s.We also put a great emphasis on environmental,social and corporate governance,which runs throughout everything we teach.In fact,about a third of our teaching distributed across all 23of the FTSE 100s CEOs hold an MBARobert Half,2022SDI Productions via iStockR A C O N T E U R.N E TT H E F U T U R E
98、 C EO0908THE RETURN OF THE MEGA-BONUSBreakdown of the average FTSE 100 CEOs pay packagePUBLIC SUPPORT FOR HIGH EXECUTIVE PAY IS LIMITED IN THE UK Responses to the survey question:“How much do you think the CEOs of the UKs biggest businesses should be paid compared with their lower-and mid-level empl
99、oyees?”As the cost of living soars in the UK,business leaders salaries are back in the spotlight.After a contraction in the immediate aftermath of the Covid lockdowns,the gap between the average workers pay and that of the average CEO is growing once again,presenting difficult questions about fairne
100、ss during hard times.Eyebrows were certainly raised by the Bank of Englands governor,Andrew Bailey,when he urged ordinary workers not to demand substantial pay rises for fear of triggering an inflationary spiralTHE SALARYGAPThe data for all infographics on this spread was supplied by the TUC,the Hig
101、h Pay Centre and the Office for National Statistics,202276%90%of FTSE 100 CEOs received a pay increase in 2021received a bonus,averaging 1.4m eachDRIFTING HIGHER?Distribution of FTSE 100 CEOs by pay bracketCEO PAY HAS REBOUNDED SINCE THE DEPTHS OF THE PANDEMICMedian gross pay packages of FTSE 100 CE
102、Os,not adjusted for inflationTHE PAY GAP BETWEEN FTSE 100 CEOs AND UK WORKERS IS WIDENING AGAINMedian gross pay packages,not adjusted for inflation1 to 5times33783485850605733333355 to 10times20 to 50 times50 to 100 timesMore than 100timesI dont think they should be paid moreI dont know10
103、 to 20times29%20%6%2%1%14%15%13%2001520162017 200213.81 m3.97 m3.88 m3.95 m3.63 m3.97 m3.63 m3.25 m2.46 m3.41 mLess than 1mBenefits1m to 4mPension/pay in lieu of benefits4m to 10mLong-term incentive plan10m to 20mBonus/short-term incentive planMore than 20mBase salary2021202020
104、%2%2%2%4%4%5%3%39%34%22%28%20%19%24%23%27%41%51%48%720.2mwas spent on executive pay in the FTSE 100 last year,distributed among 224 executives20218123:1 3.63m 29,5592018107:1 3.25m 30,378201979:1 2.46m 31,4872020109:1 3.41m 31,2852021(Fewer than 100 CEOs have been counted in so
105、me years)R A C O N T E U R.N E TT H E F U T U R E C EO1110Remote control:the rise of the hybrid CEOhether we liked it or not,among the kids school-books and the empty take-away boxes,working from home was the norm for many people dur-ing the depths of the Covid crisis.And remote and hybrid working a
106、re still in vogue.According to the Office for National Statistics,the proportion of hybrid workers in the UK rose from 13%in early February this year to 24%in May.As many as 14%of the nations workers were fully remote that month.Of course,these figures include not only employees but also chief execu
107、tives traditionally seen as office stalwarts,given their posi-tion.But can the boss really work as effectively in their converted barn or garden office?One of these hybrid CEOs is Mark Chaffey,of technology talent hub hackajob.“If a CEO works remotely,they have a little bit more head-space to shut o
108、ut the noise and do any deep work thats really impor-tant,”he says.“Remote working forces a culture of output and accountability rather than presen-teeism and micro-management.Ive found it largely positive.”David Tuck,group chief executive of Kin+Carta Europe,is another hybrid boss who believes this
109、 set-up works.“Most organisations have a few offices across the country or globe,so CEOs have almost always been hybrid.And working from home enables some focused work,higher productivity overall.Reten-tion and engagement rates have been off the charts.Personally,I am connecting differently with sta
110、ff,via recorded video messages or internal company newsletters.But I do all this from the office.Sometimes Im the only one here,but it is important for me as a lead-er to be visible.People want to see me here and be ready to give them a quick response.”Chaffey doesnt see his relative lack of visibil
111、ity as an impediment to his effectiveness as a leader.“I work one day a week in the office.I dont see hybrid working as an issue,because we have an all-hands meeting every Wednesday,so everyone knows that they will have that interaction with me every week.They can submit ano-nymous questions,and I m
112、ake it clear that people can always come to me directly if they ever have any questions,”he says.“Because I out-line all this so heavily,people have got more access to me now than they ever did.Employees really value the trust I give them.They feel empowered and supported.I think this is better than
113、 my being in the office five days a week.”Another remote leader,Simon Waterfall of craft soda-maker Soda Folk,says he misses the camarade-rie of the office and his ability to offer quick support to colleagues,who may be struggling profession-ally or personally.“I cant take them for a coffee if theyr
114、e 200 miles away.But I enjoy the fewer,more focused meetings and not being dragged into office politics,”Waterfall says.“We try to meet up regularly,particularly when we need creative brainstorm-ing sessions.So,perhaps if youre a creative business,hybrid working may not be the best long-term answer.
115、But working as a hybrid CEO is really a mindset and its cer-tainly something you could also do in a FTSE-100 business.”Anita Williams Woolley,profes-sor of organisational behaviour and theory at the Tepper School of Business in Pittsburgh,agrees with his assessment.“You can still be a role model if
116、employees have enough access to you,”she says.“You dont need to be in a specific location.If companies are committed to hybrid working,then it can be more effective if CEOs are also working in the same fashion.This should ensure that all sys-tems and processes work well.But it could be an issue for
117、some employees if they see their boss working remotely when they have been denied the option to do so themselves.”It seems that,provided that you give your people the choice of hy-brid working,it can be an effective model for a business leader.Hybrid working isnt just for the rank andfile business l
118、eaders are logging in regularly from home too.But what does that mean for company culture?such as strategic initiatives or prep-ping for board meetings,”he says.“The fundamental question is:what do people want from their CEOs?Their time?Rarely.Its usu-ally their energy.Their energy is what feeds and
119、 drives people.Thats best done in person,but it can be done remotely too.”Not all leaders feel the same way,of course.Netflix co-founder Reed Hastings has said that he does not see“any positives”in remote work-ing,while David Solomon,chief executive of Goldman Sachs,has declared the practice“an aber
120、ra-tion that were going to correct as soon as possible”.Research from global recruiter Robert Walters earlier this year found that 60%of professionals feel disengaged under remote working owing to a lack of face time with leaders in their organisations.They claimed that their output and morale were
121、lower as a result of see-ing their CEO only once a week.The research concluded that re-mote work was killing company culture,even at the top.“There are elements of the CEO role that can be done remotely and there are benefits from having more personal thinking time,”says Toby Fowlston,CEO of Robert
122、Walters.“But the softer aspects of leadership require a high degree of face-to-face interaction.You really need to sit down with people over lunch and have honest conver-sations.Younger workers also need to watch and learn from their grey-haired bosses at first hand.With-out all of this,you end up w
123、ith echo-chamber management.”pinstock via Getty Images61%24%15%of their time was spent in face-to-face interactionswas spent on electronic communicationwas spent on the phone or readingCEOs WERE THE ORIGINAL HYBRID WORKERSThe fundamental question is:what do people want from theirCEOs?Its usually the
124、ir energy.Their energy is what feeds and drives peopleDavid StirlingPorter and Nohria,2018H Y B R I D W O R K I N GW47%of the average CEOs working time was spent in the office before the pandemicOf thatDan Goman,CEO of Ateliere,a digital media supply chain and dis-tribution platform,agrees that less
125、 visibility will affect morale over time.Despite this,he considers his firms move to a hybrid schedule comprising two days in the office each week to be successful.“We have seen higher employee satisfaction and we have seen How have the CEOs responsibilities changed over the past decade?The role of
126、the CEO has be-come ever more complex and challenging.It is sometimes said that its impossible to please every-one all of the time,yet an effective CEO is increasingly expected to meet the demands of several stake-holders simultaneously.For shareholders,the CEO must be able to lead the business to s
127、atisfac-tory returns in the short,medium and long term.For employees,the CEO needs to be an authentic leader who understands their concerns and defines for them a meaningful purpose.For a range of other stake-holders,the CEO must demonstrate that their organisation is a strong and reliable partner t
128、hats commit-ted to behaving responsibly.Indeed,a good CEO increasingly needs to be able to communicate mission and purpose in a way that creates a sense of emotional commitment to the organisation.Of course,a CEOs credibility has long depended on demonstrating a profound understanding of the industr
129、y and business model of the enterprise.But what has changed over the past 10 years is the need for CEOs to acquire sensitivity in re-spect of how the actions of their businesses affect people and planet while still generating a profit.We are facing crises ranging from the cost of living to climate c
130、hange.How should business leaders prioritise where they focus their attention?The priorities for each organ-isation will be different.For some,the imperative will be ensur-ing the short-term survival of their business.Others can focus on the longer-term purpose of their enter-prise and invest in its
131、 people and future.But all CEOs will need to retain a laser-like focus on the needs of customers and the ways in which their organisations can deliver meaningful innovation.CEOs also need to be seen to be responding to challenges in a res-ponsible way,even when there are tough decisions to be made.E
132、m-ployees should always be a CEOs primary concern,because none of the challenges facing an enterprise can be overcome by one person act-ing alone.Business is a team effort.Motivated employees provide the basis for future success.And their attitudes will shape the ability of the CEO to deliver agains
133、t both finan-cial targets and the organisations ESG agenda.How should CEOs go about delivering meaningful progress against sustainability targets?The CEO should ensure that everyone in the organisation receives relevant training on clim-ate science,sustainability and net zero to ensure a strong awar
134、eness of the issues.Such knowledge is need-ed at all levels of the organisation,from long-serving board members to the newest front-line recruits.Given the importance of incen-tives in shaping behaviour,the re-muneration of the CEO and other senior executives should,ideally,be linked to their compan
135、ys achieve-ment of sustainability targets.The CEO has a leading role to play in nurturing a culture of sustainabil-ity.As well as establishing relevant key performance indicators and clear policies,they can do this through their recruitment choices,their communications and even their personal behavi
136、our.CEOs need to be sensitive to how business actions affect people and planetI N S I G H TDr Roger BarkerDirector of policy and governance,Institute of DirectorsA Q&A with Dr Roger Barker,director of policy and governance at the Institute of Directors,on how CEOs can meet the increasing demands bei
137、ng placed on themCommercial featureore than half of executive search firms believe skill shortages are a problem for businesses.Casting around to find the best candidate to lead your com-pany is becoming ever trickier par-ticularly when candidates often come from a small group of individuals who don
138、t always represent wider society.“Historically,the perception of hiring a CEO was that it was typically quite male-dominated,”says Simon Eglise,co-founder of global recruit-ment agency EC1 Partners,which specialises in finding leaders for fin-tech companies.The problem is exacerbated in a young,fast
139、-growing sector like fin-tech,where the rules of what makes a good CEO are still being drawn up.Conservative businesses tend to draw from the same pool of can-didates,invariably leaders at direct competitors.It results in a game of musical chairs that benefits neither would-be leaders,nor the compan
140、ies theyre sent in to lead.“Theres a real shortage of good quality people that tick a lot of the boxes needed to be a CEO,”says Eglise.“Companies try to eliminate How to find the right executive for your businessThe best candidates arent those who are already at your direct competitors.It helps to c
141、ast your net wider with the help of recruitment agenciesrisk by ticking so many boxes in find-ing the right person that they fail to think outside the box in terms of who could actually be right to run the business.”When EC1 looks for CEOs to con-nect with company clients,the team seeks out people w
142、ho can set the key structural layers within a busi-ness and scale them.That includes everything from culture and vision to direction and execution.“I think things have moved on from CEOs telling people what to do,to now getting people to follow,”says Eglise.“People who have that vision are of more o
143、verriding importance than someone who has that title on their CV.”Its something EC1 has tackled when helping clients find new CEOs for their companies.One established US fintech business which provides software to investment managers felt confident that it could find a CEO for its 150-strong Europea
144、n team without any outside help.The firms stature in the industry meant it had a deep net-work to tap into and a good reputa-tion to trade on.Six months on with-out finding the right candidate to be the next CEO,the firm contacted EC1.“In a fairly short period of time,we were able to present 10 idea
145、s five in the typical mould and five from the left field,”says Eglise.The firm chose one from the left field selection of candidates and made them CEO of the European operations.A year on,theyve improved the business.The model is one that other busi-nesses have followed when working with EC1 to hire
146、 their next leaders,with similar success.Although EC1 specialises in securing candidates for fintech companies,its beginning to expand further as word spreads.Finding the right person to lead your business involves looking beyond the norms and thinking about what it is you want your executive to ach
147、ieve.“It varies from firm to firm,”says Eglise.“I dont think theres a secret sauce.”But there are some key principles that most businesses look for from their leadership.“Companies are looking for people who can imple-ment scale,increase profitability and build a business of individuals that are bro
148、ught together by a vision and enjoy working there,”he says.“Vision,culture and diversity tend to be men-tioned on almost every call now.”To succeed in 2022,its important for businesses to rely less on the same old faces from the same old networks,and to cast their net wider,seeing who else can bring
149、 a change to your business.“Those who may not necessarily have had a C-suite role before can show they have the pas-sion,drive and energy to implement scale,”he says.Its an industry in flux,and that means headhunters also need to adapt.Getting external viewpoints and names outside the ordinary might
150、 just be the kick-start your com-pany needs.For more information please MTheres a real shortage of good quality people that tick a lot of the boxes needed to be a CEOWHO IS THE BEST FIT FOR THE EXECUTIVE SEATShare of CEOs whose company performed in the top quartile by market-adjusted shareholder ret
151、urns,by CEOs previous roleOut-of-the-box CEOs/leapfrogsDivision headCOOCFOHarvard Business Review,202241%27%24%8%R A C O N T E U R.N E TT H E F U T U R E C EO1312History channelled tips from the 1970sC R I S I S M A N A G E M E N Tchange.Its one of these use it or lose it capabilities.You build it b
152、y doing it.”Dr Joe Lane,lecturer in strategy at Henley Business School,agrees:“In the past,we said that firms should think efficiency when faced with a crisis.Now we say that they need to be doing this all the time,because were constantly in that state of flux.Change is continuous.”Fortunately,advan
153、ced digital tech another big difference from the 1970s gives business leaders sev-eral advantages over their predeces-sors.There is a lot more data and information available to inform decision-making,whereas leaders in the 1970s were often relying on experience.Whats more,compa-nies with digital inf
154、rastructure,products or services can change and adapt far more quickly than before.Lanes advice,then,for CEOs?“Hang on.It takes time,but things do rebound.”But when they do,you might find that things are rather different,warns David Edgerton,professor of the history of science and techno-logy at Kin
155、gs College London.“Because we are heading towards a genuine social crisis people wont be able to heat their homes and chil-dren will be going hungry the state will have to intervene,”he stresses“In essence,that is whats going to have to happen.”Like the Thatcherite wave of pri-vatisation and marketi
156、sation that followed the crises of the 1970s,state action in the coming years“will change the economic playing field”,according to Edgerton.Building on previous interventions such as nationalising and bailing out the banks during the financial crisis of 2007-08,and the wide-ranging fur-lough scheme
157、in the early months of the pandemic this crisis will force the state to intervene as never before.Well,not since the 1970s,when it nationalised Rolls-Royce.“Many companies would welcome state regulation of energy prices,”notes Edgerton,who adds that busi-ness leaders should keep a close eye on this
158、shifting political and socio-economic landscape.“We have a profound political cri-sis.The government is going to find it extremely difficult to act sensibly,but it will be forced to,”he predicts.“Dont just look at politics;look at the realities on the ground.We need to think about the real economy i
159、n ways we havent done for a very long time.Its not just about entrepre-neurs,profits and stock markets;its about transport,food and energy.Its about peoples needs and thats quite a big change.”owever fond you are of glam rock,or indeed the Dagenham-built Mark III Ford Cortina,the 1970s are not widel
160、y regarded as a vintage era for British industry and the UK gener-ally.Rather,what sticks in the mind for many people who are old enough to remember living through that decade is the lights going out during the three-day week of 1974,thanks largely to the oil crisis of 1973.That same crisis,of cours
161、e,also stoked the inflation that pushed the consumer price index to 25%in 1975 and sent interest rates to 15%in 1976 all culminating with the so-called winter of discontent in 1978-79,when rubbish piled up in the streets amid a wave of industrial action.Its no surprise,then,that the countrys current
162、 economic woes including an energy crisis,inflation and labour shortages,to name but afew are being compared to those whatever policy the new prime min-ister will adopt”,which Portes fears“will push rates up much more than people expect now”.Business leaders would be wise,therefore,to brace for what
163、s com-ing.Thankfully,looking back to the 1970s can provide some pointers.“If I were running a firm now,I would be doing everything to mini-mise the impact that rising rates will have on its balance sheet and its revenues and costs,”Portes warns.“Its not impossible that rates could go up very substan
164、tially.”Meanwhile,businesses must also do their best to resist calls for higher wages,Portes suggests.And,bec-ause of the recessionary conditions facing the UK,Europe and the US,they should“look to emerging mar-ket countries that are doing well”for export opportunities.But Portes colleague at London
165、 Business School,Freek Vermeulen,professor of strategy and entrepre-neurship,believes that it might be far easier said than done to stare down wage demands and seek out new markets.Businesses will have little choice but to accept rising wage bills if they want to retain staff,he argues especially gi
166、ven the backdrop of labour shortages.“Its almost inevitable that youll have to pay higher salaries and eventually start charging higher prices,”Vermeulen says.“There is nothing else you can do.”He advises CEOs to explore auto-mation where possible,but adds that there are“no quick fixes”here unless t
167、he right solution is already on the shelf.CEOs should also be wary of the“risky temptation”of making redundancies and trying to produce the same output with fewer resources.“Research shows that in the longer term that can do more harm than good,”Vermeulen warns.He lauds the example set by Herb Kelle
168、her,co-founder and CEO of Southwest Airlines,who built long-term trusting relationships with the companys trade unions from the late 1970s through to the mid-2000s,neutralising many potential indus-trial problems in the process.Another solution that business leaders of today could adopt would be som
169、ething familiar to their fore-bears from the 1970s:diversifica-tion.“What we saw in the past”,says Vermeulen,“was that,when their circumstances changed,firms had multiple divisions and they could shift resources and emphasis.Com-panies have become hugely focused over the past decade or two,so they h
170、ave lost that flexibility.I could imagine diversification becoming less of a dirty word in five years.”Lastly,he advises business leaders to reconsider the very nature of uncertainty and what that means for their organisations.“We should stop thinking about change and transformation as periodic,as s
171、omething we have to go through,”Vermeulen says.“We must look at the designs of our org-anisations so that theyre geared up for permanent change.This time its labour shortages,energy prices and inflation,but maybe there will be something else five years from now.”So what does a business thats well ge
172、ared up for change look like?“There is not one perfect form,”he says.“Those that change and build in these changes maybe even pro-actively develop a capability for and the oil crisis into a wage-price spiral.This shouldnt happen today,Portes argues,given the unions relative weakness especially in th
173、e private sector,which forms a signi-ficantly larger part of the overall economy than it did in the 1970s.Any reasons to be cheerful are off-set by the“expansionary effects of An energy crisis,inflation and industrial strife all sound familiar to those who remember the decade that gave us the three-
174、day week.What strategic insights can todays business leaders glean from it?Alec Marshthat it endured in the 1970s.There are,though,key differences.According to Richard Portes,professor of economics at London Business School,one overlooked cause of inflation was the effect of the economically expansi
175、onist poli-cies pursued by Edward Heaths chancellor,Anthony Barber the so-called Barber boom of 1970-73.Because the Treasury then had the power to set bank rates,“there was no restraining force”to counter the effects of the Conservative govern-ments taxation and spending deci-sions.Now that the Bank
176、 of England has autonomy,things are different.There are other important differ-ences between then and now too.The price of oil increased fourfold in the 1970s,whereas recent rises have been substantially lower.And it was the strength of the trade unions in the 1970s that turned the inflation-ary pre
177、ssures of the Barber boom Its almost inevitable that youll have to pay higher salaries and eventually start charging higher prices.There is nothing else you can doHOffice for National Statistics,20220%050520%10%15%20%25%CPIAverageINFLATION IS RE
178、TURNING TO LEVELS NOT SEEN IN 40 YEARSConsumer price indexCommercial featureHow have the challenges facing CEOs and boards evolved in recent years?Leaders are gradually accept-ing that a business landscape shaped to some degree by uncertainty and disruption is now more of a norm than an exception.Th
179、e speed,quan-tity and scale of major changes have all accelerated over the last decade.We are experiencing many events which are seen as exceptional in our recent experience Brexit,a global pandemic,roaring infl ation,a major war in Europe,widespread drought,a gathering crisis in American democracy.
180、It is natu-ral and perhaps even comforting to accept the assumption that each event is a one-off,and well go back to the more stable situation to which we had grown accustomed.Yet on every one of those issues,it is more likely than not that this assumption is wrong.In this landscape,are traditional
181、decision-making methods becoming less effective?The rise of the digital econ-omy and the nature of tech-nology has resulted in a presumption that both information and actions have to be instant.Yet set against an increasingly uncertain world,instant information and actions are fragile and prone to e
182、rror.Meanwhile,the The wisdom of organisational sensemakingThe science of sensemaking can be unlocked through innovative tools that power better executive decision-making,says Dr Mike Carter,chief scientifi c offi cer at Tensensenotionally rational models of deci-sion-making,both in human and techno
183、logy-driven forms of deci-sion-making,are contingent on the repetition of previous problems.But businesses are experiencing prob-lems theyve never had to deal with before.If the challenges they face are increasingly novel,the contingencies and assumptions that have histori-cally been relied on to in
184、form deci-sion-making are redundant.In many ways,the rulebook for leadership is being thrown out of the window.At Tensense you refer to organisational sensemaking.What does that mean and why is it relevant to all businesses today?Sensemaking is a scientifi c term that describes how people notice wha
185、t is happening around them,derive meaning,make decisions and take actions.It has been used by myself and colleagues to deconstruct and reconstruct the build-up to dis-asters where the actions of people have played a major role,e.g.9/11,the explosions of the Challenger and Columbia spacecraft and the
186、 tragic shooting of Jean Charles de Menezes on the London Underground.Although it can be enhanced,sensemaking is an entirely natural part of our evolutionary development that for better or worse made humans the preeminent spe-cies.Organisational sensemaking is the collective meaning and understandin
187、g that people in organisations generate but it is rarely utilised as a valuable tool to inform decision-making and action.By understanding and cap-turing the sense that people make of the environments in which they work,leaders can be much better enabled to understand threat and opportunity.The intu
188、itive sensing of a developing issue is far more valuable than tradi-tional management information which tells leaders their organisation started to underperform several months ago.Today,more than ever,this information is time-critical.How does Tensense provide an early diagnostic tool for business p
189、erformance?We use technology and sci-ence to gather information from people about key performance areas through the streamed analysis of light-touch clues and then present these back as part of a business per-formance early-warning system.Our unique combination of sensemaking and organisational expe
190、rience(OX)data,collected regularly,provides measurable,actionable insights in real time,fed into a business intelligence platform for comparison with other performance metrics.The result-ing insights act as an early-warning system,effectively allowing business leaders to see around corners,detect-in
191、g issues before they become a threat and identifying opportunities way ear-lier than they ordinarily could.For instance,we were retained by a US private equity company to support the new CEO of a West Coast tech fi rm with bases in the US,Europe,the Far East and Australasia.The regular fi nancial me
192、trics raised no alarms on performance,but the CEO asked for Tensense to be regularly deployed.Tensense measures prospective rather than retrospective information,and our insights were indicating that the Sydney offi ce was becoming distracted by serious performance challenges and that the incumbent
193、leadership team had switched off from this grow-ing reality.This enabled the CEO to fl y to Australia to spend six weeks identi-fying the issues and assisting the lead-ership team in fi xing them.This timely intervention was truly business-criti-cal,and it is just one example of how Tensense enables
194、 leaders to get to the total truth more quickly.For more information,visit tensense.aiSet against an increasingly uncertain world,instant information and actions are fragile and prone to errorQ&AR A C O N T E U R.N E TT H E F U T U R E C EO1514fter a summer in which the Conservative Party sub-jected
195、 itself to a bruising leadership contest,Liz Truss faces adaunting challenge in both taking prompt action to help a nation gripped by the cost-of-living crisis and bringing together a divided party tasks that proved beyond the abilities of her predecessor at 10Downing Street.CEOs can find themselves
196、 in a similar situation when installed at the top of a business with its back against the wall.Former Expedia CEO Dara Khosrowshahi was para-chuted into Uber to root out the toxic culture that had developed under Travis Kalanick,its founder-CEO,for instance.Similarly,US luggage brand Away was tasked
197、 with finding a new leader at the end of 2019 after an expos by The Verge uncovered the“cut-throat culture”that had been allowed to develop Becoming CEO in an emergency is one of the biggest tests a leader can face.Here are the secrets to steering the ship to calmer watersHow to take the helm in the
198、 midst of a crisisunder the stewardship of Steph Korey,its co-founder.Her rep-lacement,Stuart Haselden,lasted just over a year at the firm and only four months as its sole CEO.Dean Forbes,a specialist in trans-forming the fortunes of struggling businesses,says that being an in-coming leader is“a lon
199、ely,daunting and sleepless experience”.The CEO of Forterro has experience of turn-ing around four companies,which were in varying states of distress when he came in.He believes that the first task of any incoming leader should be to turn around the for-tunes of the business first before looking to c
200、hange its culture.“In a transformation situation,the patient is on the table in trauma,”Forbes says.“You need to change things in the business quickly so that you preserve its life.”Decisiveness and good communi-cation are therefore crucial skills for turnaround leaders,but so too ispatience.Forbes
201、explains:“Everything might not work the way you said it would.What you mustnt then do is unpick the changes youve made at the first sign of danger.You have to be patient,let these things flow through and then communicate what went well,what didnt and what needs to be done differently next time.This
202、way youll always appear in control.”Forbes believes that the new prime minister should focus on“mastering internal and external perceptions.Politics is such a diffi-cult job.But,if I were to be in that position,the first thing Id do would be to come up with a sequence of opportunities to demonstrate
203、 the united nature of the party and look for ways to let the public see that we are all aligned.”Changing public opinion can be particularly difficult,according to Randall Peterson,professor of org-anisational behaviour at London Business School.His research into the perceptions of different groups
204、has shown that people outside an organisation tend to be far more critical of that organisation than its members will be.“Insiders always think that their group is highly diverse,while out-siders think that the group is much more homogeneous,”Peterson says.“If youve got a few rogue elements within t
205、hat group,the internal per-ception is that the few should not define the whole,whereas outsiders tend to think that the entire organi-sation is like that.”This means that,when there are rifts inside the camp,finding out what binds people and gives the group a shared purpose is crucial.Peterson advis
206、es business leaders to“figure out what works for every-body”.This can help to“rebuild the trust as well as refocus the culture”.After winning a succession battle,the victor may be tempted to oust any remaining opposition,but this would be a mistake,says Peterson,who has observed such behaviour after
207、 mergers and acquisitions.“Trying to crush the little partner will only focus its energy,”he says.“Instead,find the things that will bind the businesses together.You need to co-opt a little bit of what the opposition was talking about.”The worst thing an incoming CEO can do is to bad-mouth the previ
208、ous incumbent,according to executive coach Terez Rijkenberg.“Your team may initially agree with your dis-paraging remarks,but what often happens is that people start to look through your lens of negativity,causing them to focus on your shortcomings too,”she warns.Instead,Rijkenberg says,leaders shou
209、ld focus on the positives to help establish trust and draw atten-tion away from the past.Then they can redirect attention towards the outcomes they want to achieve.Making assumptions about why people lost confidence in your predecessor is another mistake to avoid.Asking for feedback on the previous
210、leadership gives people a chance to voice their concerns,making them feel heard and sup-ported.This may not always yield the responses the incoming leader wants to hear,but its an important part of the transition process.Forbes cites resilience as a key attribute for any turnaround CEO.“No matter ho
211、w bad the situation youre coming into is,people will still think everything was great before you got there,”he says.But Forbes adds that,because the work is so tough,few things match the sense of achievement he derives from saving a business in distress.“There is nothing more reward-ing”,he says,“th
212、an seeing it revital-ise itself under your stewardship and seeing your actions driving out that toxicity day by day.”The worst thing an incoming CEO can do is to bad-mouth the previous incumbent,because people then start to look at things through your lens of negativitySam Forsdick L E A D E R S H I
213、 PAArmstrong Craven,202242%of companies dont have a succession plan in place should their CEO depart tomorrow29%of companies lack a way to assess their vulnerability to leadership risk2in3CEOs believe that there is no succession plan for their roleCommercial featureWhy analytics is the catalyst that
214、 turns data into intelligent decisionsDecision intelligence is set to become a critical tool in the CEOs toolbox,bringing the power of data to everyone within the organisationver since the dawn of tech-nologies like the hand-held calculator,we have been empowered to make quicker decisions with digit
215、al data at scale.Technology has evolved drastically since then,of course:today,an overwhelming amount of data permeates everything we do and say.Most recognise the transformational power of data in business,but even as big data got bigger and bigger(and bigger),many of the opportunities in it have r
216、emained relatively untapped.Too little data;too much data;or the enor-mous amount of laborious processes and manpower necessary to actually empower people to use it there have been roadblocks.What was missing were a couple of key ingredients:auto-mation and artificialintelligence.But now automation
217、and AI are pow-ering the next evolution in using data decision intelligence.While once there was business intelligence a static sort of interpretation,with limited genera-tive capabilities decision intelligence makes data-driven decisions available and useful to everyone,in all business units and at
218、 all levels.And not a moment too soon,because despite the awareness of datas trans-formative power,an enormous gulf exists between what decision-makers want and what they have.According to a recent IDC study,83%of CEOs say they wanted their organ-isations to be more data driven,and 87%of CXOs say th
219、at becoming an intelligent enterprise is a top priority.But in practice,only 30%of decision makers say that actions in their organi-sations are driven by data analysis.Only 33%are comfortable questioning the KPIs and metrics used in organisations,in other words,interrogating the qual-ity of the data
220、 beneath the superficial layer of numbers or statistics.However,a separate IDC study found that a third of C-suite decision makers globally are now enthusiastic about the potential for decision intelligence,which is already helping businesses leap ahead from the limitations found in traditional busi
221、ness intelligence platforms,and no longer relegated solely to data scientists or statisticians.“If youre basically querying against the database and preparing visualis-ations based on whats in it,thats not different from what weve been doing with BI(business intelligence)for years,”says Chandana Gop
222、al,research direc-tor for future intelligence at IDC.“With decision intelligence,whats different is really enabling organisations to analyse data to generate insights to make those insights available to everybody,and make it pervasive within the organisation.”For companies like Mr Kipling manu-factu
223、rer Premier Foods,decision intel-ligence powered by Pyramid Analytics is helping it connect data from all of its sources.For example,SAP Business Warehouse with Amazon RedShift is helping to provide visibility and insights across all business functions.Already,the platform is allowing the company to
224、 automate insights into the recyclability of the products it generates,shifting it away from laborious manual processes and helping the business meet sustain-ability goals.Londons Regent Street staple Liberty,meanwhile,is using decision analytics to inform its omnichannel retail strategy rolling out
225、 self-ser-vice,in-depth analytics across finance,buying,merchandising,web and shop floor,available on any device,anywhere creating massive time savings and allowing the business to better measure and prepare for peak shopping hours.Its becoming evident that businesses equipped with this kind of acti
226、onable data are likely to inch ahead of competition due to the sheer speed and power of automated insights;whether businesses are really data driven or not will ultimately be a differentiator in todays hyper-com-petitive landscape.But the end results could be even more profound,says Omri Kohl,CEO of
227、 Pyramid Analytics,provider of a deci-sion intelligence platform used by data scientists and non-technical line of business users alike,with organisations one day transforming into“autono-mous companies”where burdensome manual decision-making is completely taken over by AI.This would mark a shift to
228、 an out-comes-based kind of analytics,which Kohl compares to TV.Its rare for most viewers to obsess over the technical ins and outs of how a show can be broad-cast,streamed,processed and viewed in real time:“The same should happen with analytics eventually,all I care about is the outcome.What can I
229、do better,and how can I perform smarter,better and faster in my organisation?Thats what were trying to deliver in decision intelligence,providing you with the outcome.”But how do you get to that point?Many businesses have,of course,invested in analytics technologies for decades,adds IDCs Gopal.To re
230、ach the next step,a holistic,joined-up approach is required.“You have all the technologies you need,but do you have the ability to access all the insights they need to make decisions on a day-to-day level?”she asks.“Does your organisation have the skills,the culture,the understanding,the trust?All o
231、f these elements must come into place to be able to leverage technology to really guide decisions and actions after those decisions.”The CEO has a critical role to play in bringing about these changes.To create businesses with data as their beating heart,CEOs will need to lead by example.“If change
232、starts from the bottom up and theres no support from man-agement,people will continue to make decisions based on their gut instinct,”comments Kohl.“This works to a cer-tain degree but not when the deci-sions are super complex.”Even small changes at the leadership level can cascade into wider organis
233、a-tional shifts.When CEOs begin debat-ing the accuracy and quality of data they are making decisions with,adds Kohl,suddenly the conversation is no longer quantitative and forces the business to align on being data driven.At the same time,leadership must work to dissolve the data silos that can natu
234、rally form within organisations.Just as most businesses have a single CRM system,says Kohl,it makes little sense to have hundreds of often ad-hoc analytics initiatives all run-ning independently.“In those cases,you cant really see a single version of truth across the organisation,”he says.“Its extre
235、mely costly to sup-port so many localised initiatives from different groups,functions and even different people.”With that single source of truth established,businesses can be better served by one analytics platform with capabilities that cut across depart-ments and,crucially,one thats simple enough
236、 to use that every employee is encouraged and able to actually engage with it.This is where internal initiatives around data literacy matter:“Its one thing to make a decision to become data driven,”says Kohl.“Its a completely different story now to sup-port everybody to start implementing that captu
237、re.“Analytics isnt one size fits all my requirements are different to col-leagues in finance,to the controller,to the CFO,to the accountant,to the bookkeeper.Each one of us has different requirements,different needs,and this is where automation and AI can influence the way people actually use analyt
238、ics without prelim-inary knowledge.”Armed with the data,tooling,understanding and resolve to make it happen,this is the task of the data-driven CEO leveraging automation and AI to empower every user,no matter their function.To learn more about applying augmented analytics,decision intelligence and A
239、I in your enterprise,visit change starts from the bottom up and theres no support from management,people will continue to make decisions based on their gut instinctE43%of organisations with excellent delivery of insights at scale have a business leader in charge of enterprise intelligenceFuture of i
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