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Download Issue ISSUE 36 The Voice of Leadership PURSUING PLEASURE. PURSUING LIFE. Born in Southern California. Where design, technology and imagination come together. For people who think the status quo is not status at all. The all new electric Revero. HOW TO BRING MILLENNIALS AND BOOMERS CLOSER Volume 9 / Issue 36 / 2018 9 / Issue Volume PLUS Should fi rms forgive candidates with a cloudy past? How boards $14.95 put women CEOs KARMAAUTOMOTIVE.COM through the wringer How high will your wage bill rise in the future of Built 1731, work, when highly skilled labor may cost you an Established 1851 average of $11,164 extra per year per worker? Are you ready for the Salary Surge? Mitigate spiraling wage bills. Read the report. Download at www.kornferry.com/futureofwork A luxurious experience in the heart of Mayfair 7-12 HALF MOON STREET | MAYFAIR | LONDON | W1J 7BH T. +44 (0) 20 7499 0000 W. www.flemings.co.uk E. [email protected] Ormer Mayfair Restaurant by Michelin starred chef Shaun Rankin How high will your wage bill rise in the future of work, when highly skilled labor may cost you an average of $11,164 extra per year per worker? Are you ready for the Salary Surge? average extra salary premium Mitigate spiraling wage bills. Read the report. per worker per year Download at www.kornferry.com/futureofwork CLICK KornFerry.com/Institute Gary Burnison Chief Executive Officer Jill Wiltfong Women CEOs Speak: Chief Marketing Officer The Podcast Series Jonathan Dahl Editor-in-Chief You’ve read the landmark report from Russell Pearlman Korn Ferry and the Rockefeller Managing Editor Foundation, featuring rare interviews Nancy Wong Bryan with 57 women who have led large US Copy Editor companies. Now hear the podcast— Amy Roberts a six-part series on the research that aims to Copy Editor strengthen the pool of female executives. kornferry.com/institute/ Listen at womenceopodcast . Creative Directors Robert Ross The Triumph of Roland K Madrid Long-Term Thinking Art & Production Daniel Botero Mary Franz Go behind the scenes to witness how the CEOs of Unilever, CVS and others over- Marketing & Circulation Manager Carrie Shapiro came short-term pressures to successfully manage their firms for the long haul. Read Project Manager an excerpt from the new book co-authored Tiffany Sledzianowski by Korn Ferry vice chairman Dennis Carey, Digital Marketing Manager “Go Long: Why Long-Term Thinking Is Edward McLaurin Your Best Short-Term Strategy,” at kornferry.com/institute/golong Marketing Coordinator . Nadia Bianchi Leadership News Every Week Contributing Editors Lexie Barker David Berreby Has “This Week in Leadership” become Simon Constable a part of your Thursday morning ritual Martin Coyne yet? Each week on that day, our team of Patricia Crisafulli William J. Holstein writers and experts review the leader- Karen Kane ship lessons from C-suite shuffles, major Doron Levin mergers and other global events. Christopher O’Dea Sign up for the email at Glenn Rifkin kornferry.com/institute P.J. O’Rourke . Shannon Sims Meghan Walsh Peter Zheutlin Contributing Illustrator Peter Horvath Contributing Photographer Randall Cordero 2 VOICES ON... Redemption: Does It Exist for Those with a Talent Dark Past? Should companies develop faster career cycles for workers who want 10 Executives fired short-term employment? for cause are Compensation trying to rebuild their careers. 36 The world’s most admired companies are, surprisingly, 12 not always the best paying ones. Board Practices Directors may be putting women CEOs under more scrutiny than 14 their male counterparts. History Tech How the first company that Turncoats sold portable computers made an 16 unfortunate name for itself. Why a number of tech geniuses soured on the Internet The Global revolution they Economy started. 44 Accepting bad news from 18 financial markets. Asia Insights Banks are unearthing 20 talent in unlikely places. China’s Business School Dean: Wharton, Emotional Beware Intelligence 22 The battle of the sexes. A business school that was once little known is now No. 8 in the world. + DOWNTIME 52 Interests Outside the Office Starts on page 59 5 ON LEADERSHIP Gary Burnison Chief Executive Officer, Korn Ferry o mind the gap, you have to take the first step. T When my 18-year-old daughter and I went to the annual Coachella Valley Music and Arts Festival, I wasn’t sure what to expect. All I knew was this was a huge out- door music event with big-name artists—Beyoncé, the Weeknd and Eminem—plus a lineup of, well, to be honest, who knows. Yet before I could listen to what became some of the top performances—Tank and the Bangas, Moon Boots, PVRIS, Magic Giant and Big Thief—first I had to open my mind to a totally new experience. I didn’t steer my daughter to one act or the other. Instead, I let her lead and I followed. I can now say I have an appreciation for electronic dance music (known as EDM) that I never thought I’d have. 6 Korn Ferry Briefings The Voice of Leadership Everywhere I looked, Coachella was diversity I can’t let these little faces stand between me and demographics on display—a visual reminder and those who are trying to connect with me. of today’s workforce. Most important, I was The generation gap is nothing new—it’s as old reminded once again that you have to meet people as humanity itself. But the accelerated pace of where they are—not where you are. change and the pervasiveness of technology today As the father of five who range in age from 25 to can make the gap seem wider. 18, and as the head of a firm that’s about half mil- If my dad were alive today, he would be 102 lennials, I’m constantly aware of the importance years old. That’s four-and-a-half decades older than of “minding the gap.” It’s up to me to take the first me—and nearly the same age span between me and step to bridge it. Otherwise, the generation gap my youngest child. When it comes to values and becomes a chasm. viewpoints, though, my dad and I were much more Yes, millennials are different from previous aligned than I am with my youngest daughter. generations. One obvious way is their preference to AS THE FATHER OF FIVE AGES 25 TO 18, text first and talk later. A AND HEAD OF A FIRM THAT’S ABOUT HALF recent survey from our firm found that, to no surprise, 83 MILLENNIALS, I’M CONSTANTLY AWARE OF percent of millennial manag- THE IMPORTANCE OF “MINDING THE GAP.” ers prefer to communicate with their direct reports by some digital means rather than face-to-face or by And yet other things are timeless—what phone. Beyond the personal preferences of these matters most to people of any generation. All digital natives, there is a business rationale. With of us want to be accepted, to be loved and cared everything moving so quickly, non-digital com- about, to be stimulated and engaged in what we munication simply can’t keep up when instanta- do. Here’s the common ground that can bridge an neous feedback is required and decisions are being ever-widening generation gap. Finding this span of made in real-time. Add to that the global workplace commonality will become increasingly important with no “off hours.” And, face it, businesses aren’t as people live longer and work longer. In the near spending money for teams to get together when future, a four- or even five-decade age span in the Skype and other digital means can do. workplace will become the norm. And I’m always amazed by how many emails My advice as a leader is the same as my experi- and texts I receive, including in business, that ence as a parent at Coachella: Just go with it. To are populated with emojis. I received one with a bridge the gap, drop your biases and filters. Some- bizarre expression that had me puzzled. Was that a times you lead from the front, sometimes from behind smile, a frown or a gas bubble? I don’t know, and sometimes from beside—but no matter where you tell me: you are, you are always learning and growing. 7 VOICES ON... TALENT The New Modern Work Cycle Should companies freak out—or try turning today’s increasing job turnover into a win-win for workers and the bottom line? BY CHANA R. SCHOENBERGER n the surface, it seems like leave, and rejigger hiring, training, retention and another reason to keep leaders compensation plans accordingly. Indeed, experts O up at night. Their employees, say, these types of changes could not only soften particularly younger ones, have the blow of people always leaving, but they also no desire stay at one company for might attract a whole new set of talented work- more than a few years, let alone the rest of their ers to a firm. “For the right kind of person, this is careers. And this year, in a so-called buyers’ mar- incredibly appealing: Come in, build something ket for job hunters, HR departments are stressing great, and then no harm, no foul,” says Melissa even more about holding onto their best talent. Swift, leader of Korn Ferry’s Digital Advisory, But instead of lamenting about all the potential North America and Global Accounts. turnover, some executives are taking on a radi- Acknowledging and even encouraging short- cal approach: Assume people are going to want to term employment is a recognition of multiple 10 Korn Ferry Briefings The Voice of Leadership trends driving today’s increasingly mobile work- companies can build rotation force.
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