ISSUE 36 The Voice of Leadership

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Volume 9 / Issue 36 / 2018 PLUS

Should fi rms forgive candidates with a cloudy past?

How boards

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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. One recent study found that people now programs for people further The Takeaway work for almost twice as many companies in the along in their careers to move HR leaders five years after college graduation as they did two them across geographies or should be decades ago. Some millennials may trade in their units. Some firms have this at rethinking often job-hopping ways for stability as they age, but the junior level, but it makes how talent is experts believe many others, accustomed to enjoy- sense to let senior executives best employed. ing new challenges every few years or the rhythms move around as well. of contract work, will keep moving around. Ben Dattner, a New York Short job tenures are a particular problem for City-based industrial and employees who specialize in the digital side of organizational psychologist, says smart com- business. Because of the high demand for these panies facing high executive turnover should employees, companies must court them aggres- also form an alumni network, as many manage- sively, only to often see them leave within two ment consulting firms and law firms already do. to three years. It’s a similar problem for creative These groups gather lawyers who have left to types, too, since they’re people who like novelty work as a client’s general counsel or consultants and want to work outside an existing structure, who now run corporate strategy for a client, meet- says Kimberly Merriman, an associate professor ing several times a year in person and online to of management at the Manning School of exchange ideas. People could work for a com- Business at the University of Massachu- pany for a while, leave and perhaps come setts Lowell. Many companies try to back later in their careers. keep these people with long-term $ Of course, there’s only so performance pay or bonuses tied 1 far a company can take this to a company’s stock price, but go-ahead-and-leave approach. those types of rewards just aren’t MILLION Few businesses can thrive with valued by these groups, Merri- Potential consistently high turnover, and man says. replacement cost retention has to be major part But it turns out that savvy of a senior of any talent strategy, experts hiring leaders can tap into the same executive say. It can take several months to impulses that drive the desire to find more than a year just to get some- new work and design a job setup that one enough experience to do the job maximizes the benefits for both the employer assigned. Turnover isn’t cheap, either. The and the employee. A research project Swift led dis- cost of replacing a manager less than a year after covered that an executive who can lead a compa- their hire is 2.3 times the person’s annual salary, ny’s digital change tends to be highly adaptable, according to Korn Ferry research. For a senior curious and motivated by independence, but shies executive position, the replacement cost could away from a formal structure. “That’s somebody amount to $1 million or more. who constantly wants to take on new challenges, But ultimately, Swift says, it’s important so it’s not surprising that people with these traits culturally not to think of someone’s departure as change jobs frequently,” Swift says. a betrayal or a failure of loyalty. “You just have Knowing that, it’s logical to shorten the cycle too many companies freaking out that someone of performance reviews and bonus awards, Swift is looking for another job,” she says. “It’s time to says. Because a company can’t afford to lose realize that, hey, these are people you want, and institutional knowledge every two years, larger then let them go when they feel they need to.”

11 VOICES ON... COMPENSATION

The Most Admired: How They Pay

Best-in-breed firms don’t necessarily need to pay the most starting out. Here’s why.

BY JOHN KIMELMAN

he companies we most admire junior professionals made 12 percent less. are the ones that make all the (The junior level was paid similarly between the T smart moves. Hiring great talent? most and least admired firms in the US.) Check. Offering creative, innova- Experts say these figures aren’t entirely surpris- tive products and services? Check ing: Admired companies tend to have stronger again. Being financially sound but also socially brands, superior training programs and other attri- responsible? Yes. Paying more? Well… butes that young employees who are starting their As it is with all things about money, compensa- careers desire even more than a higher salary. “An tion at most top-draw firms tends to be a more employee can say, ‘I’m part of a successful organiza- complex matter. Indeed, a recent Korn Ferry anal- tion, one that I will be proud to tell others that I work ysis suggested that the most admired companies for, and one that will look good on my resume,’” don’t necessary pay the most—particularly in the says Mark Royal, a senior entry-level range. But that may suggest a much principal at Korn Ferry and broader if more modern approach to rewarding and The Takeaway an expert on employee engaging workers today, one that helps show why engagement. The best firms the best firms manage to stay on their perches Tom McMullen, a Korn have learned while others struggle. to be very Ferry senior client partner For the analysis, Korn Ferry, which provides deliberate who specializes in reward the hard data for Fortune magazine’s annual list of on pay. programs, says best-in- “World’s Most Admired” companies, compared pay breed firms also take a across different job levels for the most and least smarter approach toward admired firms in the United States and the United compensation, starting Kingdom—and found that entry-level work didn’t out lower but aiming to move stronger-performing pay top dollar at the best in breed. On average, workers up the ranks quickly. The emphasis on clerical roles at the most admired US companies homegrown talent both boosts morale but also are paid $41,771 in total pay, or 5 percent less than saves on costs. “Those who are promoted over the at the less admired companies. In the UK, clerical years are usually paid in the lower half of the salary workers made 9 percent less in total pay, while range,” says McMullen. “If you have to bring in Chart: Column Five Media, Inc.

12 Korn Ferry Briefings The Voice of Leadership

COMPENSATION DIFFERENCES AT THE LEAST VS. MOST ADMIRED COMPANIES IN THE US AND UK

Senior Senior Senior Junior Clerical Executive Manager Professional Professional

COMPENSATION % DIFFERENCE BETWEEN RANGE IN $ LEAST AND MOST ADMIRED

$600,000 +10 10%

+6 $500,000 5%

+1 +1 $400,000 0 0% -2 $300,000 -5 -5%

-9 $200,000 -10% -12 $100,000 -15% -18 $0 -20%

Least Admired / Total Compensation United States

Most Admired / Total Compensation United Kingdom UK compensation converted to US dollars

hired guns from the outside, you will usually pay a studied how workers are paid and promoted at premium for that.” major US corporations, says young workers will The patterns are less clear at the higher-paying forgo pay for a satisfying culture. “You even see roles; best-in-breed firms in the US apparently the willingness to take a pay cut to go work for the believe paying more is necessary, while those in right company,” she says. the UK don’t. Either way, with falling unemploy- Shaw says that admired firms offer workers the ment rates creating a “buyers’ market” for workers, ability to “feel that the work they do is of impor- the formula for compensation has been shifting. tance to the company and that they are not just A key emphasis today: a company’s purpose and an interchangeable cog in the wheel.” In the end, culture. Kathryn Shaw, a professor of economics the job satisfaction in the work is higher, she says, Chart: Column Five Media, Inc. at Stanford Graduate School of Business who has even if the pay isn’t.

13 VOICES ON... BOARD PRACTICES

The Ceiling Above the Glass Ceiling

Boards are slow to appoint women as CEOs and, apparently, scrutinize them more.

BY CHANA R. SCHOENBERGER

ew people would dispute that two counterparts. “Women CEOs interact with their of the biggest pushes in corpo- boards differently than their male counterparts F rate leadership over the last few do,” says Melissa Frye, a professor at the Uni- years—more women CEOs and versity of Central Florida and co-author of the more engaged board directors— recent study “CEO Gender and Corporate Board are beneficial. The former is an acknowledgment Structures.” Indeed, Frye says that the results that women can bring both strong leadership and suggest directors can perceive corporate decisions a new perspective, while the latter is an acknowl- differently depending on whether the CEO is a edgment that directors can be better advocates for man or a woman. stakeholders. Between 1996 and 2016, women CEOs most But these two good trends have resulted in commonly were heads of publicly traded com- something unexpected and potentially discon- panies with smaller, more independent, more certing: Boards scrutinize the decisions of female gender-diversified boards, the study finds. Those CEOs considerably more than those of their male traits correlate strongly with more active boards,

14 Korn Ferry Briefings The Voice of Leadership

which are considerably more likely to challenge the top is almost certainly part of the problem. management decisions on everything from Stevenson interviewed 57 of the 94 women personnel to strategy. Having more independent who have run a large US corporation, and many directors, for instance, may be associated with of them had multiple stories of their decisions tighter monitoring because directors who aren’t being questioned in ways that a man’s decisions company employees may be more involved, pro- wouldn’t have been. Learning to manage their vide more guidance and may not be afraid to stand respective boards was a skill up to the CEO, Frye says. The that many CEOs said took The study, which used models and a sample of Takeaway some time to develop, Ste- publicly traded firms, doesn’t pin the additional venson says. “I’ve observed scrutiny on the trend to have more active boards; Directors women tend to want to cre- Frye believes that the reason has more to do with should ate good relationships with monitor male-female work dynamics. “Women CEOs may their boards and work in a and work be less overconfident, or the board may stereotype with male collaborative way, and direc- them differently than male CEOs,” Frye says. and female tors are receptive to that,” It’s possible that women CEOs want this extra CEOs she says. monitoring, too, but agency theory, which holds equally. Leading a board is a that when people have power they rarely want to key skill, and women have relinquish it, leads Frye to believe that few CEOs to learn that on the job, she want to be heavily monitored. adds. It’s also important for The increased scrutiny is just another chal- a CEO to learn how to present herself so that her lenge for women as they work their way to the top. board feels she is doing a good job—which is not Korn Ferry data shows that in the United States the same as actually doing a good job. “Managing it takes 30 percent longer to place a woman at perception is a particularly important skill, espe- the helm of a company than a man. Meanwhile, cially when leading a board,” Stevenson says. women are already taking on more assignments That relationship should work both ways, too. than men do before they get the top spot, and they Before asking questions, experts say board direc- are, on average, four years older than men when tors should take a moment and ask themselves they become CEO for the first time. if they would give the CEO as much scrutiny if Jane Stevenson, vice chairman for Board and the chief were a man. Good governance, after all, CEO Services at Korn Ferry, says gender bias at should have no gender.

HAS NINE DIRECTORS OR FEWER

AVERAGE DIRECTOR AGE IS 61 OR YOUNGER The Makeup of Boards HOLDS MORE MEETINGS THAN AVERAGE More Likely to Have ABOVE AVERAGE NUMBER OF INDEPENDENT DIRECTORS Women CEOs ABOVE AVERAGE NUMBER OF WOMEN DIRECTORS

15 VOICES ON... HISTORY

Computer Titan Crashed by ‘Osborne Effect’

Adam Osborne created the first portable computer, but his fame was fleeting.

BY GLENN RIFKIN

ost technology buffs remember rather than MS-DOS—drove 1981 as the year IBM introduced jaw-dropping sales. The com- M its first personal computer, a pany sold $10 million worth machine destined to dominate of computers in August 1982 the PC space for years to come. alone and hit $100 million in But in that same year, another PC hit the market revenues for the fiscal year that arguably made an even bigger initial splash 1983, which ended in Febru- than Big Blue’s. Adam Osborne, an iconoclastic ary. So successful was the Adam publisher and technology pundit turned entre- Osborne 1 that more than a Osborne, preneur, founded Osborne Computer Corporation, dozen competitors, including who once and in April 1981 introduced the Osborne 1, the Compaq Computer and Kaypro, compared world’s first portable computer. Sure, it weighed immediately jumped into the himself to 24 pounds and had a 5-inch display smaller than portable PC market space. Henry Ford. some smartphone screens, but at $1,795—$1,000 A tall, erudite figure who less than IBM’s desktop computer—it became an was born in Thailand to Brit- immediate hit. ish parents, Osborne spent much of his childhood So did Osborne, who was dubbed a visionary. in southern India, later moved to England, and “I tell people that in those days, there were three migrated to the United States, where he earned a major people in the industry: Bill Gates, Steve Jobs doctorate in chemical engineering. As Osborne Com- and Adam Osborne, and not necessarily in that puter soared, he got swept up in his own success. He order,” the late industry pioneer David Bunnell compared himself to Henry Ford and boasted that once said. Harry McCracken, technology editor his start-up was the “fastest growing company in of Fast Company magazine, who wrote a lengthy the history of the Silicon Valley.” He began expand- profile of Adam Osborne in 2011, called his idea ing his organization at breakneck speed, hiring “transformative.” 1,500 workers in 12 months, and pouring cash into The Osborne 1, despite a plethora of technical facilities and production. This profligate spending flaws—it ran the ill-fated CP/M operating system ate through the firm’s cash like a hungry beast. And

16 Korn Ferry Briefings The Voice of Leadership

THE FIRST PORTABLE COMPUTER, DEVELOPED BY ADAM OSBORNE, WEIGHED 24 POUNDS—APPROXIMATELY THE EQUIVALENT OF 24 CANS OF ASSORTED VEGETABLES.

then, perhaps fueled by his own hubris, he provoked Osborne got a raw deal in the retelling of the com- what many believe was his fatal flaw. pany’s story. Osborne didn’t purposely undermine In early 1983, with competitors starting to make his own healthy company by preannouncing a inroads in the market, Osborne started actively pro- new product, McCracken says. The news leaked moting an Osborne follow-up computer, the Osborne and the dam burst. In fact, he added, Osborne Executive. His plan was to invite journalists to see Computer was already in financial trouble. But, it and promise not to publish anything until the “sadly, the Osborne Effect is what first comes machine’s release date—only the news still leaked to people’s minds when they think about Adam out. Dealers, anticipating this new machine, can- Osborne,” McCracken says. celed orders for the Osborne 1 and sales plummeted. Today, of course, companies have learned their Even as Osborne cut the price of his signature com- lesson, studiously avoiding a preannouncement puter, the slide didn’t abate. Already cash-strapped, of products that might undermine their existing the young company ran out of money and declared lines. A company like Apple is fanatical about bankruptcy in September 1983. The stunning rise suppressing information until a product is ready and fall of Osborne Computer in just two years to ship. Leaks, not pre-announcements, remain an was the talk of the industry. Pundits and analysts industry bugaboo. For Adam Osborne, the char- pointed to Osborne’s premature promotion of his ismatic visionary, his remarkable career slid into newest product, which they dubbed “The Osborne oblivion. He returned to southern India in 1992, Effect,” as the CEO’s suicidal blunder. stricken with a brain disorder, and moved in with Fast Company’s McCracken believes that his sister. He died at age 64 in 2003.

17 THE GLOBAL ECONOMY Simon Constable

Lessons on Borrowing… $200 Million at a Time

here I was, saying it in all serious- The biggest market changes, of course, ness: “Hey, fella! Can you spare started earlier this year, when after months of $200 million?” The reply was non- being as subdued as a ripple-free pond, stocks Tchalant: “Let’s see what we get.” A started heaving up and down (so much so that few hours later, back came $220 million in the one investment fund shuttered in a trice). As electronic equivalent of cold hard cash. The next newbie financial analysts quickly learn, the day, a similar discourse. “How about another bond market, where interest rates get set, and $200 million?” “We’ll find out soon enough,” was the stock market are inextricably linked, put- the response. The result: $195 million to add to ting pressure on borrowing. Meanwhile, the the $220 million. Federal Reserve is still unwinding some of its The routine went on for weeks, barely deviat- “extraordinary measures” aimed at helping the ing from the script. Back in the late 1990s, it was economy recover from the mess of 2008-2009. my job to borrow cash for a major manufacturing Bottom line: more stock market volatility and company. We needed the extra money to help higher interest rates. keep the wheels turning—and frankly, robust That extra cost of borrowing, of course, markets made it pretty easy. But have you read won’t catch CFOs with decades of experience the headlines lately? Or watched your favorite by surprise. The same is not necessarily true for stocks tank? In this jumpy market, the world of those people who came of age in the decade since borrowing—so critical to the lifeline of so many the financial crisis. That’s because interest rates businesses—has reached a curious stage that no have been extraordinarily low for an unusually chief financial officer can ignore. long period. “Where they’ll get hurt is when they

18 see interest-rate levels that they might think of Management, Paris, France. It’s also smart are expensive but actually aren’t,” says veteran for CFOs on the brink of needing cash to have financier Steve Blitz, chief US economist at already set up lines of credit with the bank. financial company TS Lombard. So borrowing But what has changed is the way companies cash at 3 percent might seem steep based on borrow. In the past, the choice for the CFO was recent history—but it’s a bargain compared to frequently between the banks or the capital years past. markets, with the latter closed to all but the There are other ways that the world of bor- most credit-worthy public corporations. That rowing hasn’t changed. Investors are people, is no longer the case, which means it is harder and they like to go with what they know, which is, of course, something REGULARLY DIPPING INTO THE BORROWING good CFOs intuitively MARKET WHEN YOU DON’T NEED TO WILL MAKE IT understand. Back in the EASIER WHEN YOU ABSOLUTELY MUST GET THE CASH. 1990s, after a week of requesting $200 million a day, my contact said: “Our investors are happy buying the securities, but for bankers to earn a crust but easier for savvy they just wish you’d be more consistent in the finance chiefs to borrow. For instance, why market.” He had a good point. If the company even bother with the bank when you can go is a frequent and reliable borrower, the lender directly to a marketplace loan maker (aka peer- has a greater level of comfort. So regularly to-peer lenders) who could issue a loan more dipping into the borrowing market when you quickly and at a lower cost? Loans can also be don’t need to will make it easier when you abso- sourced directly via the web from many small lutely must get the cash. “It’s just like when an investors, due to changes in the securities individual builds up a credit rating,” says Ivo laws. “A lot of technology makes a lot of things Pezzuto, professor at the International School faster and cheaper,” says Pezzuto.

Constable is a former Wall Street Journal TV anchor and current fellow at Johns Hopkins Institute for Applied Economics.

19 ASIA MARKETS Serina Wong

A New Financial Crisis: Not Enough Talent

here’s a banking construction boom connections and experience in the region were in Hong Kong right now, and almost musts. But it’s coming as a surprise that many of none of it involves actually building the best qualified candidates are far younger. Sure, TTnew bank branches. Finance firms they have some experience, but much of it is in tele- from across the region are racing to set up virtual communications, technology or consulting. Indeed, banks, online-only worlds where customers can many have never worked in a bank. do anything they can at a normal bank, from the Welcome to the current state of banking in simple (deposits, money transfers, bill payments) Asia. Big innovators there are light years ahead of to the considerably more complex (taking out a big banks in most other parts of the world, espe- loan, getting a credit card, financial planning cially on the payment side. While banks in the services) without ever having to wait in line or United States and elsewhere still duke it out over speak with any bank employees. The Hong Kong prime real estate to attract customers, in China Monetary Authority, the local bank regulator, and the rest of the Asia-Pacific region, tellers, expects as many as 50 finance firms to apply for bank branches and even ATMs are rapidly becom- the first set of virtual bank licenses before the end ing relics. Many of the region’s 4-billion-plus of the year. customers are banking without going to a branch. Naturally, these firms need some executives But while the technology to power all this is to run these branchless banks, and if it had been in abundant supply, the humans to manage the five years ago, that would have meant seeking out products are not. In the past, banks could just look someone older than 40 with at least 15 years of for potential employees who checked the right boxes. climbing up finance’s corporate ladder. Strong client A degree in finance from a prestigious university?

20 Check. Several years of banking experience? Check. customer-focused leaders will need high amounts But with the confluence of finance and tech, many of empathy (something that hasn’t been necessary folks who have only worked at a bank aren’t actually for many banking leaders in the past). qualified for those new jobs. Banks need their new Banks also have to modify their culture, or at least recruits to connect the dots from disparate places, be more welcoming of this new wave of employees. often between the tech world and the finance world. The average age of bank employees in Asia is around And they are finding that they’re having to compete 35. The people the banks want to attract, however, are with retailers, hospitality firms and tech companies mostly younger than 30. Those new workers are also for people who understand how to improve client used to business moving faster. A typical bank might experiences and create whole ecosystems. And it take six to nine months to develop a new product. could get a lot worse. According to a recent Korn These new employees, many of whom may have Ferry study, financial hubs such as Hong Kong and worked in tech, are used to developing, launching and Singapore could lose out on nearly $100 billion of retiring a new product in the same amount of time. unrealized revenues, strictly These changes are not because they don’t have enough COST OF TALENT impossible to achieve. Some high-skilled labor. SHORTAGES IN THESE banks have hired chief innova- Instead of relying on degrees COUNTRIES’ tion officers, giving this new FINANCIAL SECTORS and prior work experience, executive a team of young, banks are realizing they need agile workers to develop to test their current employees Country/Region Unr ealized new ideas. Other banks have and job candidates for the Output (billions) farmed out innovation to traits and skills that portend China 147 smaller, nimbler vendors, great leadership. For one figuring the firm can pay for thing, banks need employees Japan 113​ new ideas while it rethinks its with high energy levels since own organization. But it’s clear Hong Kong ​​ 66 finance is a fast-paced business that while new products may in Asia. They also need people Singapore 29 all involve technology, banks who are agile and can deal have to keep upgrading their Indonesia 9 well with ambiguity. And the human capabilities, too.

*Estimated annual amount by 2030. Source: Korn Ferry Wong is Korn Ferry’s global sector leader, wealth management, and regional sector leader, asset management, in the Asia-Pacific region.

21 EMOTIONAL INTELLIGENCE Daniel Goleman

A Winner in the Battle of the Sexes

ith all the attention these days than men did in the same positions. Sadly, no on women in the office, from surprise there. the boardroom to hiring ratios, But I was intrigued to see that specific distin- Wa difficult question arises: Are guishing traits found in women CEOs resonate women actually better fit for leadership positions with my understanding of emotional intelligence. than men? In other words, based on gender alone, The women CEOs were excellent at managing should there be more women leaders in business? themselves, as evidenced by competencies such After all, studies show companies led by women as resilience in the face of stress and agility in outperform others. responding to changing demands. And they were One line of reasoning goes something like this: outstanding at leveraging relationships and team- If emotional intelligence (EI) makes leaders more work in achieving business results. effective, and women on average score higher EI, remember, consists of at least four compo- on those abilities, then more women should be nents: self-awareness, self-management, social leaders. But, as we know, statistically women are awareness and relationship management. Nested underrepresented in the higher ranks of business. within those four domains are workplace and That’s a contentious issue—one that touches on leadership competencies that make someone an forces like gender bias, to be sure. outstanding performer. Unlike IQ, there is no There were six main drivers of success among single “EQ” score. Instead, we each have a profile the women CEOs in Korn Ferry’s study, “Women of strengths and limits across the range of 12 EI CEOs Speak.” To bust through the glass ceiling, for competencies. example, women CEOs worked harder and longer Assessing all 12 of these competencies,

22 research by Ruth Malloy, formerly of Korn Ferry, may be as able to handle upsetting emotions as and Signe Spencer, a Korn Ferry client research well as most or all men, and some men may be as partner, found that women who have reached empathic as most or all women. the top ranks of corporations often outdo men at In selecting someone for a given post, a pro- the same levels in their emotional intelligence motion or further development, you don’t look competencies. That comparison was made using at that person’s group average. You look at the executives’ scores on the Emotional and Social person. So when it comes to how fit an executive Competence Inventory (ESCI), a 360-degree might be as a leader, the answer depends on the assessment of the full range of EI competencies. particulars of that man or woman, not on his or Analysis of data from 18,000 executives revealed her gender. that women executives outdid men in competencies essential for effectiveness in WOMEN EXECUTIVES OUTDID MEN IN A a matrixed organization, such as empathy, conflict management and influence. RANGE OF COMPETENCIES ESSENTIAL FOR On most assessment instruments for EFFECTIVENESS AT MATRIXED ORGANIZATIONS. emotional intelligence that I’m aware of, women’s norms on average are higher than men’s. Women, for example, tend to score Still, the kicker comes when you look at star higher on indicators of empathy and social skill. performers, leaders identified by their own But other research finds that men tend to do companies as “outstanding,” based both on hard better than women on average with regards to financials as well as “soft” indicators like people reports of their own self-confidence and ability to wanting to work for them. In other research handle emotional upsets. by Malloy, the groups of outstanding men and These differences between genders are for women on average had the same ESCI scores. group averages. If you did a scatter plot of how But women at the top of the house had a wider men and women score on tests of EI, you’d get range of scores on emotional intelligence than did something like two largely overlapping bell men in similar positions; when they were good, curves. That overlap means that some women they were very, very good.

Goleman is author of the international best-seller “Emotional Intelligence.” See keystepmedia.com for his new series of primers, “Building Blocks of Emotional Intelligence.” 23 WINNING NUMBER 59

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COVER STORY

The differences in styles between millennials and baby boomers could crush a company’s productivity.

How savvy leaders are building bridges.

BY CHRIS TAYLOR The Problem The stereo- types are exag- gerated, but there are clear differences between how millennials and baby boomers work.

Why David Walker finds himself cross- Worry? These two ing a 40-plus-year generation gap. groups are As the CEO and co-founder of sharing workspace the real estate firm Triplemint, for another he oversees more than 100 employees whose ages range decade. from as young as 22 to as old as 65. Step one: trying to figure out what they’re each talking about. “Generation The gaps really show when you’re talking about areas of Solution New York City. Some agents remember the West Village Redesigning office space before it was called the West Village,” says Walker, 29. He and work schedules can also finds himself shaking his head at certain references help. So will a about movies “made long before I was born.” heavy dose of empathy.

In the United States, out of a labor But that’s easy compared to force of 161 million people, around figuring out how best to communicate 56 million are millennials, ages 22 with the team members, individually through 37. At the same time, there or as a group, about work projects. His are 53 million Generation Xers, ages baby boomer–aged agents don’t feel 38 through 58, and another 41 mil- much of anything can be accomplished lion baby boomers, ages 58 through without a phone call or speaking 72, according to Richard Fry, a senior face-to-face. Meanwhile, for some researcher at Pew Research. There’s a of his youngest, millennial-aged smattering of “silent generation” folks employees, phone calls and voicemails ages 73 or older still on the job. “Years can seem like holdovers from an era ago, some futurists were predicting of horse-and-buggies and candle- that there would be four generations sticks. “Millennials definitely feel in the workforce at the same time. At more comfortable texting,” he says. the time, people were saying ‘How Welcome to today’s workplace, a is that even possible?’ And now here modern Tower of Babel filled with we are,” says Haydn Shaw, author people of all nationalities, backgrounds of “Sticking Points: How to Get 4 and, perhaps most commonly, ages. Generations Working Together in the

28 COVER STORY 12 Places They Come Apart.” three invaluable skills of leadership. Of course, these multitudes of On the job, boomer leaders prefer a generations have fueled a ton of ste- hierarchical structure, a clear and reotypes that exaggerate some of the defined path, and a desire to be loyal to differences. Still, in 2018, few would an employer for the long haul. And they question a gap between millennials (a don’t need constant feedback. group with members both entering the It’s why, on the surface, boomers workforce and assuming management and millennials seem to have plenty positions) and baby boomers (many of of reasons to clash professionally. whom have reached traditional retire- Millennials came of working age in ment age but are putting off leaving the 2000s and 2010s, a time of extreme the workforce for a variety of reasons). disruption across all sectors of work. And the two groups have considerably Global financial crises and layoffs of different takes on how work should, long-tenured employees are some of well, work. But for the next decade or the most enduring professional impres- more, millennials could be answering sions for them. to a boomer, or vice versa. Teams where So perhaps it isn’t surprising one team member is two generations that millennials, while they share removed from another won’t be uncom- many of the same professional goals, mon. Managing people is already overwhelmingly favor a flatter difficult—so how can leaders understand workplace structure, where skills and the unique psyches of each generation, performance are valued over age or and foster a workplace where everyone tenure, according to research from feels appreciated and productive? Korn Ferry and others. Millennials want—and thrive on—collaborative work. Plus, they want regular, honest communication and frequent The baby boomer generation feedback, and don’t respond well to didn’t just climb the corporate ladder, being out of the information loop. they made it an art form. Their working “Millennials in the workplace are lives during their 20s through 50s were very much about feedback and coach- defined, mostly, by economic expan- ing,” says Valerie Grubb, author of sion worldwide and huge rewards for “Clash of the Generations: Managing leaders who diligently worked their the New Workplace Reality.” “They way to the top. The average age in the have an expectation that they will be C-suite is now 54, according to a Korn told how things are going every step Ferry analysis of America’s largest of the way.” Millennials value flex- 1,000 companies by revenue. And the ibility and project-based work. And average age of CEOs has actually been they aren’t looking for a gold watch going up in recent years. after decades of work for one firm. The boomers haven’t gotten there Only 10 percent value loyalty from an just by sticking around, of course. employer, according to a recent Research shows that baby boomer Korn Ferry study. executives are generally better The differing traits of boomers and than any other generation at self- millennials can certainly set up dicey development, attracting top talent situations for managers of any age. to join them and managing conflicts, Even something as simple as when the

30 COVER STORY For the next decade or more, millennials could be answering to a boomer, or vice versa. Teams where one team member is two generations removed from another won’t be uncommon. the world’s changing demographics The rise of millennials isn’t an American phenomenon. It’s a global one.

workday begins and when it ends: Scott their experience, lacked respect and Bender is the 47-year-old vice president was unwilling to change. Another of growth for Austin-based fintech survey by the American Society for start-up Pei Technology, and he prefers Training and Development found that to start working at the crack of dawn. a whopping 90 percent of employees The firm’s millennials, meanwhile, reported that workplace generational might stroll in around noon in shorts conflicts resulted in wasted time and and sandals, but keep on trucking lost productivity. until 1 a.m., maybe with a happy hour The most obvious generational clash thrown in along the way. “Conflict only that is looming: Boomer execs who comes into play when someone says don’t want to go anywhere. Whether ‘You’re leaving? But it’s only 6 p.m.!’ ” they are simply good at their jobs, want Bender says. “I have to point out, ‘Hey, to rack up a few more years of 401(k) I’ve been cranking since 7 a.m. You savings or just can’t envision life at the need to step back.’ ” shuffleboard court, they often want to The conflict isn’t just anecdotal. keep running the show. That can be a Indeed, the data backing it up often problem for younger staffers stuck on sound like the two generations are the ladder. As a result, 25 percent of locked in a bad marriage. One survey by CEOs over age 65 had to be forced out the Association for Talent Development within the five years following the found that both boomers and millen- financial crisis, according to a study by nials report that the other dismissed The Conference Board.

32 COVER STORY COUNTRIES COUNTRIES WITH THE MOST WITH THE MOST MILLENNIALS BABY BOOMERS

China → 429.2 million China → 246.5 million India → 426.5 million India → 145.1 million Indonesia → 83.8 million United States → 67.4 million Brazil → 68.4 million Japan → 33.7 million Pakistan → 60.6 million Indonesia → 27.9 million

COUNTRIES WITH COUNTRIES WITH THE THE HIGHEST PERCENTAGE HIGHEST PERCENTAGE OF MILLENNIALS OF BABY BOOMERS

Qatar → 57% Japan → 26% United Arab Emirates → 53% Bulgaria → 26% Oman → 51% Malta → 25% Bahrain → 45% Finland → 25% Kuwait → 41% Hungary → 25%

Source: United Nations. Populations as of 2015.

likely to switch employers. The potential for a generational John Petzold, himself a millennial conflict at work has made for some who became the youngest senior client innovative attempts to not only play partner in Korn Ferry history, sees peacemaker, but also make the two three huge traits that the two genera- groups work better together. There’s tions share: a desire to achieve success been a concerted attempt by many through measurable impact, to be heard to dispel the most exaggerated ste- and appreciated, and to maintain a reotypes about millennials (entitled, reasonable (though perhaps more flex- needy, addicted to technology) and ibly integrated) work-life balance. “In boomers (stubborn, uncaring, live our daily lives, we interact with people to work) on the job. One study by of different ages all the time—and researchers at George Washington the workplace should be no different,” University found that generational dif- says Petzold. “You just need to have a ferences in the workplace were “moder- respectful, situational understanding ate to small, essentially zero in many of someone else’s point of view.” cases.” Meanwhile, the IBM Institute At the same time, there are plenty for Business Value found it was largely of boomers who have adapted to a untrue that millennials’ career goals changing environment. Joel Hull may are different from boomers’; that they have been born in 1964, near the tail need constant acclaim; that they are end of the boomer generation, but when digital addicts; or that they are more he recently became Pei Technology’s

COVER STORY 33 vice president of engineering, working millennials alongside Scott Bender at the start-up founded by two millennials, he adjusted boomers his game. Instead of phone calls or + email, he now typically sends colleagues on boards updates or reminders using text or Slack. He quickly absorbed all the modern Boardrooms remain the domain acronyms and texting conventions. And he got used to coming across a wide vari- of baby boomers, but the ety of political views, which didn’t use millennials who have become to be the case in the workplace. As he directors have been so for says, “You aren’t in Kansas anymore.” longer than you’d might expect. Some companies have encouraged millennials and boomers to collaborate informally. IBM created in 2016 the CoachMe program for peer-to-peer men- S&P 500 BOARD DIRECTORS’ toring. Whether it’s subjects like cloud AVERAGE TENURE, BY AGE computing, blockchain or machine learning, IBM employees have a social

AGE → NUMBER → AVERAGE TENURE → platform to reach out to each other and bolster their skills. 30s 20 2.5 years Sometimes that is in the traditional mentoring sense, of older employees teaching younger ones, but these days 60s 2,488 9 years reverse mentoring is on the rise, too. “Experienced IBMers can request men- toring support from colleagues more junior in the company but savvy in a S&P DIRECTORS BY AGE particular skill,” says Patrick Brossard, an IBM manager who helps lead the AGE NUMBER % OF TOTAL program from Paris. The CoachMe program now has 55,000 participants across 80 countries, with around 2,000 30s 20 → 0.4% coaching sessions a month. Generational differences are also 40s 256 → 4.8% affecting the architecture of how work- spaces are being designed. If boomers 50s 1,583 → 29.7% are used to walled-off offices, and mil- lennials tend to gather in gigantic open 60s 2,488 → 46.7% areas, Boston-based financial giant Fidelity Investments decided to give them both. “We are rolling out new → 70s 910 17.1% workspaces across Fidelity that reflect the flexibility a multigenerational 80s 70 → 1.3% workforce requires, from collaboration

Source: Investor Responsibility Center Institute. “We interact with people of different ages all the time—and the workplace should to quiet spaces,” says spokeswoman be no different. You Kate Taylor. Fidelity knew that the just need to have a actual office environment was a pres- sure point for millennials, and modify- respectful, situational ing it could help enable them to lure and understanding of keep unique talent. But what may be the biggest way someone else’s to get millennials and boomers to point of view.” work together well is creating flexible work arrangements that both genera- —John Petzold, Senior Client Partner, Korn Ferry tions can appreciate. “The workforce that was coming to us wanted a different kind of work environment with more flexibility, and they were vocal about it,” says Anne Donovan, the people innovation leader at Grubb says. After all, promoting “age PricewaterhouseCoopers. The result: a diversity” can be just as helpful as 2 firm-wide initiative called Flexibility . other types of diversity, like race or The cultural shift wasn’t instanta- gender, in being inclusive of a wide neous—it took about “six or seven range of viewpoints. And that kind of years to turn the ship,” she says—but attitude starts at the top. the new setup allowed employees to “If you only have one age perspective work “anytime, anyplace, anywhere.” in the office, then chances are you’re Younger employees loved it, boosting missing out on some success,” says retention numbers, and older employ- Triplemint’s Walker. “By hiring and ees got used to the idea of “not having managing across multiple generations, to drive to one place in order to work you make sure that everyone brings together,” says Donovan. “We don’t something a little different to the table.” have to do that anymore.” The key point: Having a generational strategy, instead of just winging it, can have very real results for your organiza- tion in terms of attraction, retention Some estimates suggest and productivity. “You can cut your that millennials will make up about generational turnover in half with two three quarters of the global workforce central ideas,” says Shaw. First, millen- by 2025. At that point, most boomers nials are like canaries in a coal mine, should be out of the workforce, but in that they will actually leave if they experts say minding the gap between don’t get certain things. “So manage boomers and millennials now will be to them, and you will become a better good training for the next potential manager for all generations.” gap, between millennials and the group The second idea, according to Shaw: behind them: Gen Z. Don’t just guess what employees of Creating a consistent, company- each generation need—ask them. “Get wide strategy right now will ensure curious, have that conversation and that all managers can become adept, they will tell you.”

COVER STORY 35

As the world becomes less tolerant of bad behavior, should firms that are hiring look beyond job applicants’ past transgressions? The answers can become wrenching for those who apply—and those who judge.

ideo clips of Richard Bistrong talking at eth- ical compliance conferences and on other cor- porate stages show a man who carries himself with the confidence of a former corporate vice president. Tall, tan and trim, it isn’t hard to imagine him traveling the world negotiating million-dollar deals for a military and police equipment manufacturer. His rectangular spectacles and gray-tipped burr portray an educated 55-year-old with a master’s degree in international affairs, who was once married to an ambassador in the Clinton administration and lived in Va 6,000-square-foot mansion in an exclusive seaside resort town south of Jacksonville, Florida. To the unknowing eye, Bistrong appears to be a polished former executive turned suc- cessful compliance consultant. But upon closer inspection, the neatly defined image, as it does for so many, proves to be a mirage. The sprawling estate, you will learn, was financed through illicit dealings abroad and more than a million dollars in kickbacks from sup- pliers. Bistrong, in addition to being terminated by his employer, eventually plead guilty to charges of bribery, which he used as a means of securing contracts to supply helmets, armored vests, pepper spray and other gear to United Nations peacekeeping forces and foreign law-enforcement agencies. After spending five years as an FBI informant, the clean-cut Florida businessman would serve 14 months in prison. Bistrong’s case is certainly extreme. Few professional transgressions are so severe as to wind up in federal court. But the aftermath provides a textbook example of how to perform career triage, whether it’s coming back from a criminal offense, a failed business venture or other unsightly resume mishap. It turns out that the path to redemption takes a similar route, regardless the gaffe.

The question is: Where do you go from there? ... There’s a lot of hard work that has to happen.

To err is human, to forgive divine. Today’s workforce is navigating a particularly tenuous time period when empathy seems to be more abundant than ever but second chances harder to come by. While addiction was once seen as a moral failure, it’s now understood to be a diagnostic disease. Science spells out the adverse effects that stress, childhood trauma and genetics can have on adult behavior. Yet zero-tolerance policies are the new standard and social media is more often a platform from which to cast stones than grant pardons. “There’s no doubt, it’s tougher to get a second chance today than it was 20 years ago,” says Ron Porter, a senior partner in Korn Ferry’s Human Resources Center of Expertise. Tougher but, as Bistrong attests, possible. “Not everyone wants to hear what a former felon has to say about ethics,” Bistrong says from his new home in New York City. “I paid the price to society through the loss of liberty. The question is: Where do you go from there? You don’t go straight to corporate engagements. There’s a lot of hard work that has to happen in between.”

39 ost people have heard F. Scott Fitzgerald’s famous adage that there are no second acts in American lives. But read the entire sentence in its original form and it’s clear that’s not actually what the author of “The Great Gatsby” espoused. “I once thought that there were no second acts in American lives, but there was certainlyM to be…” wrote Fitzgerald in the 1932 essay “My Lost City.” Particularly in the United States, where experts say as a society we’re more forgiving than many others, it isn’t hard to find prominent career comebacks. Jamie Dimon was fired from his post as chief financial officer at Citigroup before joining Bank One (now JPMorgan Chase) as chief executive officer two years later. During his first term as senator, John McCain was embroiled in the Keating Five corruption scandal, which he has since called his “asterisk.” However, the Arizona politician would go on to run twice for president. The Indianapolis Colts hired Tony Dungy just days after he was fired by the Tampa Bay Buccaneers, a decision that eventually rewarded the organization with its first and only Super Bowl title.

THEY’RE LESS LIKELY TO BE AS CONCERNED ABOUT REPUTATION AND MORE LIKELY TO TAKE A RISK.

But, alas, research suggests that such returns to glory are the exception. In their book, “Firing Back: How Great Leaders Rebound After Career Disasters,” Jeffrey Sonnenfeld, the senior associate dean of leadership programs at the Yale School of Man- agement, and Andrew Ward, an associate management professor at Lehigh University, analyzed more than 450 CEO successions at large, publicly traded companies. They found only 35 percent of CEOs returned to an executive post within two years of being forcibly ousted, while 43 percent saw their careers come to an end. Another 22 percent settled into advisory roles. There is one outlet, though, that hasn’t always existed in the way that it does today, and that is private equity. “They’re less likely to be as concerned about reputa- tion and more likely to take a risk,” Porter says. Outcomes vary across industries, Ward points out. In sports, for example, coaches will be rehired within days of being fired and despite a losing record. “It’s about how the setback impacts your reputation and how it can be repaired,” Ward says. In politics, comebacks also abound. “More often in politics the setback doesn’t have to do with the job—it’s a personal indiscretion, so it doesn’t speak to the confidence of the politician.” In business, on the other hand, it’s more often the case that failure affects job performance or a company’s reputation. Consider Mark Hurd. He was dethroned as CEO of Hewlett Packard in 2010 after the board fired him for using company resources to pay for a series of intimate encounters with an adult-film actress, among other improprieties. Yet Larry Ellison hired him shortly after as president of Oracle Corporation, where he now serves as CEO and has had immense success. “Most people wouldn’t have touched him,” Porter says. But had that same scenario taken place today, less than a decade later, it may have had a very different ending. With the proliferation of social media and the moral reckoning that the #MeToo movement has unleashed, misdeeds that were once overlooked are now being accounted for.

41 Hiring Practices Korn Ferry interviewed more than 100 executives to ask for their current views on job candidates in today’s environment.

If a candidate discloses a past ethical violation, should % % companies be more forgiving 46 55 when considering hiring NO YES that person?

24% istrong turned himself in to the United States Penitentiary, Lewisburg in Pennsylvania in the fall of 2012 determined to make the most of his imposed sabbatical. So, with his newfound free time, he read and he wrote. He studied behavioral research, reflecting with pen and paper on the emotional drivers behind his own Breckless conduct. The man who once took digital marketing courses at New York University and executive education at Columbia now sought out books about rebranding a tarnished image. Meanwhile, Bistrong schooled himself on the Federal Corrupt Practices Act. Several months after his release, Bistrong published his first blog on a DIY WordPress template and established Front-Line Anti-Bribery LLC. Lawyers and professors focused on the FCPA’s legal challenges, but Bistrong, who in his previous life spent some 250 days a year jet-setting to remote locations, positioned himself as an insider expert. He talked about what companies could do to prevent employees like himself from straying. From human resources officers to psychologists to image consultants, everyone starts with the same advice: Own your mistakes. “The public is willing to forgive a lot, but they’re not willing to forgive someone who is unrepentant,” says Dorie Clark, author of “Reinventing You,” one of the books Bistrong turned to. Case in point: Martin Shkreli. Far worse financial crimes have been met with lighter sentences, but because of the “pharma bro’s” defiance and the immense vitriol he engendered, Shkreli will spend nearly seven years in prison simply for lying to investors. The first sentence of Bistrong’s LinkedIn profile reads: “I bribed foreign officials, coop- erated with international law enforcement & went to prison.” And the second: “Today, I share that front-line experience for the benefit of others…” The key is walking the fine line between owning your mistakes then shifting the conversation in a positive direction. As the joke goes: “Where do you hide a dead body? On Page 2 of Google results.” When Starbucks came under fire this year after an employee was accused of racial profiling, the company announced it was closing all of its stores for a one-day racial-bias training, masterfully reframing the media narrative. Clark goes as far as to say that mistakes can become building blocks for an even

42 In your opinion, what policy changes (if any) should your company make on hiring candidates who have violated an ethics code at a prior employer or been convicted of a crime?

Keep the policy Make it zero % % Loosen it % Tighten it % 31 the same 14 32 24 tolerance

Over the past year, do you think your company has become stricter about hiring candidates when % % it discovers a candidate has broken the law or violated a past employer’s ethical policy? 68YES 34NO

Do you think your company should conduct more % % comprehensive background checks on candidates? 78YES 22NO

stronger personal brand if handled correctly. “Human impulse is to sweep mistakes under the rug,” Clark says, “but if you do that, you’re always operating from a position of weak- ness. It leaves you playing defense.”

n a world where the scales of justice are perfectly balanced, second chances would be meted out based on repentance, worthiness and, perhaps, intention. But in the real world, redemption is more often determined by whom you know, how much value you offer and the prevailing moods of the day. In both the courtroom and the boardroom, Iwhether it’s the book thrown or a slap on the wrist depends largely on public sentiment. Former McDonald’s CHRO Rich Floersch, currently a senior strategic advisor for the Human Resources Policy Association, says he’s more forgiving now than 35 years ago, and he’s actually more drawn to candidates with a career blip. “If they show that they’ve learned from their mistakes, it can actually make for more humble executives who aren’t going to walk into the same trap,” Floersch says. But in today’s climate there is zero tolerance for any sort of discriminatory record—and he’s never hired someone with a moral breach. The measure that corporate gatekeepers often use to evaluate behavior is this: 1) Was the offense directly related to the performance of duties (e.g., embezzlement vs. affair)? 2) How much did the mistake impact other people or the business? 3) Was there criminal malice or simply bad judgment? And, in the end, the reality is that “performance buys you time, if not a complete pass,” Porter says. Bistrong has had to learn to let go. Not everyone is willing to look past his indiscre- tions. He doesn’t push it. Instead, he works to keep his ego in check. But there has been some redemption for former inmate No. 30079-016, who today finds himself traveling the world again, featured in The Wall Street Journal and Forbes, and named one of the top minds in the compliance industry. “Having gone through this crucible, I’ve learned making amends is a lifetime experience,” Bistrong says. “Forgiveness is not a yes-or-no equation, it’s being receptive to the idea that real change is possible.” ● But remember this: Those changes better stick. There are no third acts in America.

43 The leaders of the tECH revolution are starting a new revolution against thEIR OWN INVENTIONS THE PROBLEM WHY WORRY The solution

Public opinion is calling for There’s great uncertainty It may turn out that some change in how the Internet about what lies ahead as past tech leaders, now is used, controlled and paid stakeholders will deal with concerned with the web, for. Firms haven’t settled concerns about privacy, know the best answers for on a response. political interference and the industry they spawned. governance.

quarter-century ago, when the Internet seemed like a fun, free “bridge to the 21st century” (as politicians called it), Ethan Zuckerman was working at a web start-up with a problem: how to scale the company up from “cool idea” to “sustainable business.” After five years trying one thing and another, he and his fellow pioneers finally hit on a solution investors liked: targeted advertising. The site, Tripod.com—a web-hosting platform and early social network—would deliver ads based on the information users were sharing on their sites.

There was a hitch, though. Advertisers worried that their brands might appear to endorse whatever screwball content ap- peared on the same page. After a carmaker complained about its message appearing next to a message sexual in nature, Zuck- erman wrote some code. It allowed an ad to appear in a new, separate window. Facebook, then in the midst of the Cam- He’d invented the bridge Analytica scandal, took the most pop-upThat’s ad—aka, right: as he himself describes severe hit, dropping 28 points. it, “one of the most hated tools in the ad- That wave of dissatisfaction swiftly vertiser’s toolkit.” He never meant to irri- overtook the leaders who’d invented, tate, confuse and hobble millions of web perfected, marketed and financed the surfers. But no one could have foreseen digital infrastructure of modern life. But how decisions made in those scrappy for a certain group of them, something early days of the modern web would lead, curious happened: Instead of fighting the years later, to outcomes nobody wanted. revolution against the web, they joined “I’m sorry,” Zuckerman later wrote. “Our it. Indeed, now there is practically stan- intentions were good.” dard operating procedure for key people At the time he published those words in tech to say, in effect, I’m sorry. Our in 2014, Zuckerman stood out like a flip intentions were good. phone in an Apple store. Back then the Consider Tristan Harris. He was far industry’s vibe was, “We cracked the from the first person to suggest, as he has code, you’re welcome, world,” (as writer put it, that “the job of these companies Alec Berg, creator of the HBO satire is to hook people, and they do that by “Silicon Valley,” has described it). Astute hijacking our psychological vulner- outsiders criticized the assumptions and abilities.” But Harris once worked at structures of digital life (Zuckerman, Google, helping to create a number of web who is director of the Center for Civic services himself while observing others Media at MIT, had become one of them). being made. Or take Tony Fadell. When But Facebook, Amazon, Google, Apple, he recently said smartphones and their Microsoft, Twitter, Uber, Instagram, apps are alarmingly addictive, he wasn’t SnapChat, LinkedIn and many other the first. But Fadell helped design the digital firms simply and constantly cooed iPhone. Skeptical that some tech services that they weren’t just making money; knowingly exploited people’s psycho- they were making a better world—freer, logical vulnerabilities? Consider Sean more equal, more open, more under- Parker, Facebook’s former president. He standing, more connected. The public and other tech creators, he told a forum seemed, mostly, to agree. sponsored by Axios, “understood this No more. consciously. And we did it anyway.” Over the past year, doubts about this And, of course, not all the critics and dogma turned from a trickle into a global callers for reform are former members of tidal wave. Suddenly fear, anxiety and tech’s elites. Credit everyone from Face- anger—about the power of tech over book CEO Mark Zuckerberg, who went society and its effects on our politics, on record saying social networks might livelihoods and even our souls—are need to be regulated, to Apple’s Tim everywhere. When the news site Axios Cook, who endorsed other regulations compared Americans’ views of tech firms to protect privacy, with offering some in polls taken in October 2017 and March serious soul-searching. Society, says 2018, it found a vast drop in most tech Zuckerman of pop-up ad fame, is “having firms’ net favorability ratings (that is, a public health moment, and we’re asking the percent of people favorable to a brand questions about individual health, we’re minus the percent who are unfavorable). asking that question about civic health.”

47 “I’m sorry,” says the man who invented the pop-up ad. “Our intentions were good.” Today he’s advocating giving users new rights on the web.

It may be a little disorienting to see Worries about tech’s effect on an people who created the tech agreeing individual mind, though, aren’t all that that it has sometimes done harm, but it troubles the public. Last winter and makes sense that they would want to join spring brought reminder after reminder this conversation. that many forms of digital tech can One aspect of tech’s revolt against be exploited by bad actors—hackers its own culture is deeply personal, even stealing personal information, trolls and private. It involves a mounting concern bots deliberately spreading distrust and about the effects of digital hardware disinformation, ordinary people choosing and software on our minds and our to egg each other on as they expressed close relationships. Last autumn, for their ugliest sides. Social networks have example, Harris and other people with responded with greater vigilance against long experience at big tech firms joined attempts at manipulation. But how can together to found the Center for Humane they defend users against their own Technology. The nonprofit was estab- worst instincts? lished on the premise that smartphones Even as the industry tries to change, and other digital tech have been designed there is widespread recognition that to undermine people’s ability to achieve governments will be involved in the their own goals. (The Center for Humane changes to come. In the giddy early days Technology did not respond to requests of the commercialization of the Internet, for an interview.) many governments tried to stay out of The Center promotes strategies for tech’s way, wary of killing the goose that reducing tech’s hold on your mind (for promised to lay so many golden eggs. individuals) and aims to promulgate This consensus is now about as popular ethical design principles (for companies and relevant in politics as the divine to create less-distracting tech). Together right of kings. Regulations are already with Common Sense Media, a nonprofit tightening around the world, and more organization that guides parents on rules are coming. This is especially true media choices, the Center also has now that the titans of tech have accepted launched a “Truth About Tech” campaign their inevitability. with $7 million in funding and $50 mil- One benchmark for rules on data use lion in free media from Comcast, DirecTV has already come into force. It is the Eu- and other firms. Aimed at some 55,000 ropean Union’s General Data Protection American public schools, the campaign’s Regulation, which went into effect last goal is to educate children and teens May (prompting a flood of “how we use about the hazards of smartphones, online your data” emails into all our inboxes). It networks and other tech. gives EU citizens much more control over 49 Three Ex-Tech Greats, Three New how tech companies collect and use, as the regulations state, “any information Views relating to an identified or identifiable natural person.” Organizations now have to spell out why data is being collected and whether it will be used to create Tristan profiles of people’s actions and habits. HARRIS Moreover, consumers have an unques- tioned right to see data that a company has about them, as well as the right to Then [2011] Google’s “product philosopher” correct any mistakes they find. Many observers expect, though, that Founder of the Center future regulators will look beyond con- for Humane Technology. cerns about protecting users’ data. In the NowTech, he said last spring, “became this longer-term future, for example, regula- kind of puppet-master effect, where tors could decide to require that users of one service be able to link easily to users all of these products are puppet- of other services. This would remove the mastering all these different users.” lock-in effect that benefits today’s giants because they have so many users. “I’ve got something like 50,000 Sean followers on Twitter and I’ve probably PARKER got 1,500 friends on Facebook. I can’t just leave those networks,” Zuckerman explains. “Yet I need to have a way that Then [2004] First president of Facebook I can start interacting with new net- works.” So he advocates giving users two Has declared himself a new rights. “One is the right to aggregate “conscientious objector” and the other is the right to federate.” toNow social media. “God only knows The right to aggregate means a user can collect different services into a what [social media] is doing to our single gateway. The right to federate children’s brains.” means that the user can link herself easily to whatever services she wishes, old or new, familiar or experimental. TONY Given the amount of our lives that cur- rent tech giants occupy, these rights are FADELL essential if new alternatives are to have any chance of mass adoption, he says. Then [2000-2015] Key player in creating the iPod, iPhone, Nest thermostat and Google Glass a lot of today’s currentMany unease believe is rooted in the fun- Wants tech companies damentals of the world’s information to give users detailed infrastructure—choices made long ago by people whose intentions were good, Nowaccountings and more control of their which haven’t worked out as they’d digital behavior. “The success of these devices has also brought unintended consequences.” Be it incremental tweaks to a utopian revolution, any discussion over the Internet change has one common thread: the need for more information from tech companies.

hoped. Such critics aren’t calling for As you might expect, companies’ improvements in the current order of openness to changing their ways does things—they want a new order, with not extend as far as the undoing of their new assumptions about information and business model. And, to be fair, they can the people who use it. defend the model as the best and fairest They’re looking at one keystone of the way to make their services available to digital world as it is now constructed: all. Millions of people around the world, the incentive so many companies have after all, can’t afford $5 a month. “I don’t to collect, store and analyze data about think the ad model is going to go away,” people. That is the business model that Facebook’s Zuckerberg told The New Zuckerman and many other Internet York Times last March, “because I think pioneers discovered a generation ago: fundamentally, it’s important to have targeted advertising. a service like this that everyone in the Advertisers ultimately support world can use, and the only way to do Google, Facebook, Twitter and myriad that is to have it be very cheap or free.” other services (making them “free” to In any event, as discussions over the users) because those advertisers can use Internet evolve among options from information the services collect. It gives incremental tweak to utopian revolu- them the ability to target their ads to the tion, one common thread will be the people most likely to respond. Zuckerman need for more information from tech calls it the “original sin” of the modern companies. Despite the headline revela- Internet. It creates a need for companies tions about big tech, there is much about to gather data on users and to sell it to its operations that remains secret. “We third parties (or at least to tell investors don’t know enough yet,” Zuckerman that they will, and thus make a profit). says. “And in part we don’t know enough This commits many tech companies to because we don’t really have access to all harvesting, storing and leveraging per- this data that probably knows us better sonal data in ways that users often don’t than we do.” Whatever the long-term understand or approve. consequences of this moment, then, its Another world is possible. Millions of greatest short-term consequence could people could decide, for example, to pay be opening up the hidden practices for search capacities or social networks and troves of data that tech companies so that the incentives to surveil them have so jealously guarded. As society go away. If Instagram is valuable to discusses the way forward, Zuckerman you, wouldn’t you pay, say, $5 a month says, “it’s a conversation that probably for it, especially if that payment meant shouldn’t be locked within a corporation you could be sure that your privacy was that ends up being pretty secretive about secure? what it does.”

51 After years of development, China’s top business school has vaulted onto the global stage. Its dean tells us how.

Yuan Ding had just taken a break from his lecture in financial analysis at China Europe International Business School (CEIBS) when a Dr. group of executive MBA students approached him. The analysis sounded fine in theory, they commented, but would it really work in practice in China? The professor answered with a question—“Has anyone ever tested it?”—and a hypothesis was born. Ding and his students began a case study of analyzing publicly traded companies in China to identify the top performers. And then Ding himself went one step further, launching in 2011 the Ding Yuan Index Neutral Fund, investing in the best Chinese companies, with an offsetting short position in the newly listed Chinese index futures. The result: a steady diet of double-digit gains, and in 2013 it was named the best hedge fund in China for generating a stable investment return. The fund has since closed due to new regulations, but such exercises in real-world relevancy have been a key ingredient behind CEIBS’ re- markable vault onto the global MBA stage. Virtually unknown outside of China a decade ago, the Shanghai-based school moved this year to No. 8 on the Financial Times Global MBA Ranking, besting many hal- lowed names, including Northwestern University’s Kellogg School of Manage- Yuan Ding ment (No. 12), Yale School of Manage- ment (No. 15), and Dartmouth College’s Tuck School of Business (No. 16). It was quite a leap for a school founded only in 1994. “In a remarkably brief time, CEIBS has established itself as one of the world’s prestige players,” says John A. Byrne, CEO and editor-in-chief of Poets & Quants, the leading website on graduate management education. “It’s an incredibly ambitious school.” Given China’s size and economic clout, the country has clearly needed a powerhouse B-school for some time. But for years, CEIBS focused on partner- ships abroad at prestigious schools, where it sent students and attracted visiting professors. Today, as the coun- try’s own economy expands—opening doors to more multinationals and developing more homegrown innova- tive talent—so too has CEIBS shifted its own model of education. Yet how does a school manage that, and how did it pull up its rankings so fast? We looked for some of the answers from Ding, who was appointed dean of the school three years ago, after nearly two decades of teaching in France and China. In fact, he was among the first Chinese nationals CEIBS recruited as full-time faculty. Here’s an edited ver- sion of our conversation with him.

First business school in mainland China to offer full-time 75% international faculty MBA, executive MBA and executive education programs 18 research centers

chair professorships 19 Only Asian business school to achieve global ranking for 20,000+ alumni around the globe all three simultaneously What attracted you to business education? “[The Chinese market] is becoming far more I studied accounting in college, and then went to work attractive. The opportunity in Hangzhou in the early 1990s in an accounting role, tracking is huge—a market that will foreign investment in the city. I also learned English, basically teaching myself. I applied to be three times larger than a China-France collaboration project in Beijing to study for a the US market in 10 or 15 master’s program, but totally in French. At the time, China years.” —Yuan Ding, Dean of CEIBS had just opened the door to foreign companies, and French companies were coming to China to set up businesses. I had a very nice offer to be the CFO of a joint came the big decision in early we are sitting on such a huge venture established by a big 2006. I resigned from HEC [he domestic market, we still multinational from France, but I already had tenure] and moved have a predominantly Chinese also received a scholarship from back to Shanghai. It was a great student body. the French government to go to opportunity for my family and France to pursue my PhD studies. me. With the expansion of the Chinese economy, CEIBS was changing its business model, with a main goal of establishing its Without CEIBS, these And you chose the own full-time faculty instead of Chinese students might having mainly visiting professors. academic option. be going to Europe and the United States for their education. I went to France and studied in Bordeaux. [Ding received a doctorate in accounting from How has the student When our program started, the Institute of Enterprises body changed over the the biggest demand for business Administration at the University education was not from young Montesquieu Bordeaux IV, years? talent, but from well-established France.] I then got an offer in 1998 professionals who were already from HEC Paris to teach courses in When I taught in this in executive positions. At the both French and English. program in 2003 [as a visiting time, some Chinese universities

HEC professor], almost all the were teaching political

MBA students were mainland economics, but there was no real Chinese. They all spoke English business education through the deliberately to signal the high 1990s and even into the middle What brought you back quality of the education and to 2000s. Seeing that big demand, to China, and specifically meet the needs of multinational CEIBS developed an executive companies that wanted MBA program in Chinese. Every to CEIBS? [English-speaking] talent. But year, we admit about 700 top as of this August, 30 countries executives [average age is about will be represented in our MBA 40]. While it’s the largest EMBA In 2002, I saw an program. The students are program in the world, it is still announcement within HEC about 60 percent Chinese and the most selective, taking about for faculty in China. I spent 40 percent non-Chinese now, one out of three on average. In summers in Shanghai, teaching and we are seeing a big shift addition, about 200 students a at CEIBS, while keeping my toward internationalization year are enrolled in our full-time full-time job in HEC Paris. Then of the program. But in China, MBA program.

55 Reach

More than half of CEIBS MBA students are sent to almost 30 partner schools for international exchange programs. These schools are located in: CEIBS also has as advisors and board collaboration and members in the business Thereto is a fundamental exchange programs community. How does difference in ownership structure. Even today, the with schools such as this benefit CEIBS? majority of Chinese companies HEC, the University have a single, large shareholder, whereas most of the large of Pennsylvania’s My colleagues gain a lot of multinational firms have more Wharton School and insights and material that they dispersed shareholding. But can use in their classes—for an interesting phenomenon is Harvard. How does example, the difference in impacting that. In Southeast that enhance the leadership styles between Chinese Asia, most companies remain and non-Chinese companies. under the control of the MBA experience? Many Chinese companies follow founding family for two or a paternalistic leadership model. more generations because they This is an advantage for making tend to have large families. These programs have been decisions quickly, but it can But in China, the one-child operating for more than 10 years, increase the risk if the boss makes policy is creating a shortage of and they really helped us to build a mistake. Typically, in Western successors if the son or daughter a reputation in China. When we companies that is very different. does not want to take over the partnered with Harvard and company. That could lead to Wharton, for example, that gave us more companies being publicly credibility. But notice I’m using the listed and more dispersed past tense—that was 10 years ago! shareholding, as well. Now the CEIBS brand is premier. What advice do you have for Westerners who want to do business in Do you see opportunities China today? As dean of CEIBS, and for more collaboration having taught in France, with other institutions? China is a totally different what is your perspective place today. The market is on the millennial becoming far more attractive. The generation, whether in We have a new program with opportunity is huge—a market the École Hôtelière de Lausanne that will be three times larger China, France, the US or in Switzerland, which allows than the US market in 10 or 15 other places? students to earn both our EMBA years. That will be the biggest and their degree in hospitality. market in human history. But Chinese competitors move very This is really tackling the new The differences within the quickly, and Chinese consumer needs of the Chinese economy, Internet-born generation are tastes are unique. To compete, which is moving quickly from mostly superficial. Young people non-Chinese companies need to being driven by investment everywhere are very well linked, create products with strong local in infrastructure toward a thanks to the Internet awareness appeal, which means conducting consumption-driven service of what is happening in other applied R&D in China. economy—not just hotels, but parts of the world. That makes big service concepts. We are also them more synchronized. They exploring partnership with US are more idealistic around issues schools for new ventures. such as the environment and social responsibility. In China, How are boards of the younger generation has China-based firms suffered few of the hardships suffered by the previous As dean, you encourage different from generations, and they are more generous. I am deeply touched by your colleagues to serve Western-based firms? ● their bigger hearts.

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7.9 in wide

THE NEW DEAL-CLOSING PERKS Sports gifts and fancy boat trips cement business today.

BY CHRIS TAYLOR ILLUSTRATIONS BY ISABEL ESPANOL

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ime for a little thought “Giftology” and head of St. Louis-based experiment. Let’s say you Ruhlin Group, which is in the business of have a big deal to close, with gift-giving for big-name clients—among someone you really want to them 25 pro sports teams. “If you learn impress. Where do you go, or to do it well, you stand so far above your Twhat do you give, to accom- competition that they won’t even know plish that mission? Here’s a hint: The what hit them.” traditional methods just don’t stand out With that in mind, we talked to a few anymore. Take someone to lunch? Been company founders and presidents to find there, done that. Send a decent bottle of out what places and products are really red? You can do better. You need to up moving the needle these days. What we your game. found: Creating a moment that will be You might think—in this hypercon- remembered for a lifetime, or a thought- nected world with every possible product ful gift that will be treasured instead of and service at our fingertips—that we tossed, doesn’t have to break the bank. have all become better at giving gifts But it does require you to be strategic and creating memorable moments. But and thoughtful, and to know exactly you would be very wrong. what makes a person tick. Here are a few “People still are very bad at this,” unique ideas to make you stand out and says John Ruhlin, the author of the book get that deal done.

Create it into 400 Bluetooth speak- Supersize it. a historic ers—individually numbered and never Sometimes, a round at the local artifact. to be replicated. The bar might be enough to seal an reaction from diehard When the Chicago Cubs wanted important deal. Other times, you Cubs fans? “They flipped out— to reward their most valuable have to think considerably big- even the [team-owning] Ricketts fans—suite owners and sponsors ger. Thomas Cornwall, the head family, who are worth billions of collectively worth many millions of London-based strategy shop dollars. That’s because it was an of dollars to the club—the base- Behave, got a panicked phone call antique artifact, with real history ball team wanted to give gifts so one morning. A museum client to it, and something people would special that they could strengthen was struggling with a sponsor that actually use every day.” relationships and get everyone to was planning to pull out of a deal re-up their lucrative deals. worth upwards of $400,000 per So Ruhlin, who works with year. What could the museum do? the team, stepped in. When the “The obvious thing is beg, Cubs were remodeling Wrigley plead or try to explain the ratio- Field, their century-old ballpark, nale for the deal,” Cornwall says. builders had to remove all the old “But emotion beats reason every lumber, which was destined for time.” So, he asked the client the dumpster. “Send it to me,” to tell him a bit more about the Ruhlin said. decision-maker and what that He tapped his in-house design individual personally got from the museum. She said he loved studio, relaminated the old Wrig- Photo Credit ley Field wood, and fashioned coming to the sponsored events

60 and drinking a glass—or seven—of Bridgewater’s Connecticut head- planner-approved wisdom, “Thou champagne. quarters to hang out, and eventu- shalt not invade thy principal.” Cornwall suggested sending the ally published “Principles” as a All that business from a single sponsor a magnum bottle of Pol bestselling book, thanking the evening on the boat, with the sun Roger Reserve, the champagne the CEO in the acknowledgments. setting in the west and the full museum served at events, along Vidas didn’t envision the fix-up moon starting to rise. “Everyone with a simple note: “We hope you as a business transaction, but the still talks about that night,” Ten have happy memories of your time CEO subsequently became a cli- Haagen says. “You get out on the with us.” ent and they have done business water, and all of a sudden everyone Bingo. The “applied behavioral together ever since. Says Vidas: is best friends.” science” worked like a charm. “These days, if you genuinely want “Hours after the champagne to build a relationship, you have to arrived, the man called up, apolo- do something different. Everything gized and agreed to the deal. More else is noise.” than $400,000 per year for a Tap childhood cost of less than $200, including memories. delivery.” There are certainly Curate an plenty of CEOs and experience. corporate presidents who can come across Happiness may be an elusive as intimidating in thing. But the latest research is in any setting. But no near-universal agreement: What matter how Type A an makes people truly happier are executive is, there is one not things but experiences. master key to opening That is why Long Island financial his or her heart: The sports planner Jon Ten Haagen takes team that this person followed as friends, clients and prospects out a child. Those ingrained memories on his 34-foot sailboat for a cruise reduce pretty much everyone to around Long Island Sound. With a wide-eyed 7-year-olds. Arrange a gentle breeze, a picturesque sunset That’s why, when Toronto’s meeting with and a few beers, is anyone really Sulemaan Ahmed is closing a deal or going to turn down your business? thanking a contact, he always goes a hero. Case in point: Ten Haagen once way back in time. One big client took the staff of the local yacht of his, an executive vice president No matter how big or success- club out for a spin. Among the of a bank, was a childhood fan of ful you are, everyone has a hero group were a young waitress and hockey’s Buffalo Sabres. So, Ahmed, whose footsteps they worship. her boyfriend. At the time, the founder of the consulting firm Servo For one CEO friend of Aaron Vidas two didn’t have much, but they Annex, had an idea. He ordered (and for Vidas himself), it was subsequently married, had kids, a special jersey with the name of Ray Dalio, the famed hedge-fund became clients and made multiple Gilbert Perreault, one-third of the manager and head of Bridgewa- referrals to him in ensuing years. Sabres’ famous “French Connection” ter Associates. His friend was Every referred client, in turn, got forward line, on the back, compete enamored of Dalio’s “Principles,” a personalized gift: a wine glass with Perreault’s number and “C” a philosophy of business and life. hand-etched with the financial (Perreault was the team captain). “Principles” exists only in PDF When the client opened the gift, “his form, but his friend was so in love eyes just lit up,” Ahmed remembers. with the work that he had copies “Now, whenever he wears that jer- printed up and bound. sey, he remembers us.” That gave Vidas, the Ahmed also wrangles clients head of Vancouver-based and prospects into so-called marketing analysis firm “alumni rooms,” where retired StrategyBox, an idea. sports greats sometimes convene He happened to during games. For instance, he got know a few people one client into a gathering before at Bridgewater, a Montreal Canadiens game, where which led to get- the client got to hang out with ting the unique multiple Stanley Cup winner Yvan bound edition into Cournoyer. the hands of Dalio “Grown men and women himself. Dalio, who become like kids again,” says was blown away, Ahmed. “They are like children in invited the CEO to a candy store.”

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DAVID BERREBY

Wearable Tech Why carry when you can now wear digital accessories?

ost people know how much biotech has changed the world, leaving the laboratory to give us home DNA-testing Mkits, genetically modified vegetables and (soon) meat grown in petri dishes. And it’s easy to see how computers have changed daily life, when they left our desks behind and melded with all our tools—from phones and cars to refrigera- tors and vacuum cleaners. Now comes the next big stage: a converging of both the digital and biological revolutions, which are showing up, of all places, in clothes and accessories. Indeed, the line is blurring between tools that track our health and productivity and garments we wear to express who we are. In the future, both those kinds of items will be fashionable, electronic and biologi- cal all at once. Already in stores are designer clothes and accessories whose “leather” is made by converting specially cultivated mats of FROM TOP mushroom roots, or by genetically modi- STELLA MCCARTNEY FALABELLA BAG This purse’s sturdy fying yeast to produce the same protein “leather” is made of mushroom roots, which normally form tangled underground mats. Biofabric start-up Bolt Threads fibers that form animal skin. One gadget grows the cells, then compresses, tans and dyes the sheets monitors your sleep and wakes you up at into a leather substitute. the right moment with a zap of electricity, PAVLOK The wrist-worn Pavlok device interacts with while another tracks your health by ana- your biology in the most direct way possible: It zaps you with a jolt of 50 to 450 volts. It’s designed to help you lyzing your sweat then beaming the results break bad habits. in real time to your smartphone. ZOA BY MODERN MEADOW Leather accents in this T-shirt And, as some of the bolder experiments were made by yeast, which start-up Modern Meadow in wearable tech show, this is only the genetically engineers to make collagen. That’s the protein

that gives animal skin its structure and feel. Pavlok: Mark E. LaMoreaux; Zoa: Sara Kinney beginning.

62 ABOVE BEHNAZ FARAHI’S “CARESS OF THE GAZE” Cameras in this artist’s cloak detect other people and their eyes. Then, thanks to wiring designed to imitate muscles, the garment changes shape and texture depending on who is looking (and where). CHECKUP BELOW IRIS VAN HERPEN AND JÓLAN VAN DER WIEL’S ON A CHIP MAGNET DRESS A mixture of iron filings and resin creates a material that can be “grown” into a dress by magnetic force. It’s amazing what our bodies can reveal to a computer. This is why we’re seeing a rush of products that meld software, hardware and sensors to glean detailed personal data about the people who wear them. In three years, researchers say, such wearable sensors will be a $68 million busi- ness in the United States alone. Aren’t aware of them yet? One particularly clever example is the Spire (right), which analyzes your breathing. If it isn’t calm, the device vibrates to tell you to take a deep breath. A con- nected smartphone app focuses on the longer term, with reports like: “Yesterday, Spire sensed 47 minutes of focus, 1.3 hours of calm and 10,156 steps. Nice work!” Then there’s sweat, which contains electrolytes, metabolites, small molecules and proteins, all of which reveal a lot. Several start-ups offer wearable sweat-monitoring patches, which alert you if your glucose level is too high or low, if you’re dehydrated, if stress hormones are running high or even if you’re reacting badly to medication.

63 Hollywood Museum, Los Angeles

The Henry Ford Rouge Gallery, Dearborn, Michigan

Halim Time & Glass Museum, Evanston, Illinois

The Neon Museum, Las Vegas

A Specialty LEEDS INDUSTRIAL Museum Sampler MUSEUM AT ARMLEY MILLS, LEEDS, NORTHERN ENGLAND COMPUTER HISTORY KYOTO RAILWAY The Industrial MUSEUM, MOUNTAIN MUSEUM, KYOTO, JAPAN Revolution is on VIEW, CALIF. More than 53 trains, full display with Artifacts and including an 1880s textile machines, displays from the steam engine and trains and heavy abacus to the one of the world’s manufacturing supercomputer. fastest bullet trains. equipment.

MUSEUM OF AMERICAN HOLLYWOOD MUSEUM, THE HENRY FORD, FINANCE, NEW YORK CITY LOS ANGELES DEARBORN, MICHIGAN A public museum Exhibits on the Largest indoor- showcasing the development outdoor museum country’s relation- of the film and complex in the US, ship with financial cinema industry in focuses American markets, money and the US. innovation. banking. DOWNTIME PATRICIA CRISAFULLI

puncture holes, evidence of Incan Museums, Minus practices in cranial surgery. The span of medical history is the Masterpieces captured in the Hall of Immortals, showcasing a dozen larger-than- How a little-known world of specialty life stone statues of the greats in the field; in the Hall of Murals museums offers a glimpse into hang paintings showcasing medi- innovation of the past. cal developments through the years. “It’s not just an overview of medical history, but many hicago’s Art Institute an important technological break- thematic exhibits that go really houses several of through: Chronometers solved deep into the specifics,” explains Monet’s “Water Lilies” the mystery of how to determine Michelle Rinard, the museum’s Cpaintings. Da Vinci’s longitude, the east-west global manager of education and events. “Mona Lisa” sits in the Louvre in positioning that eluded seafarers But what if surgical devices Paris. Beijing’s National Museum for centuries and caused many a and clocks just aren’t your thing? has priceless treasures from devastating shipwreck. This 18th- We capped our tour in, of all China’s imperial dynasties. But century technology ultimately led places, Las Vegas, to see The Neon what about being inspired not by to the digital mapping and satellite Museum, a two-acre outdoor Van Gogh but by, say, the original imaging we have today. space that houses more than 250 Stardust Casino sign housed in Real estate investor Cameel signs and symbols that adorned an outdoor lot of neon relics? Or Halim established the museum the city’s casinos and other perhaps one of thousands of his- from his private collection of businesses. “The Boneyard,” tory’s most fascinating medical clocks. For busy executives, as it is called, delivers a unique devices? And don’t forget getting studying time is an existential perspective on how this gambling an up-close view of trains, textile reflection. “You need to slow mecca has used a combination of machines or even the abacus. down and think about time, the art, advertising and technology We are talking, of course, earth going around itself in one to reinvent itself multiple times about the innumerable specialty day,” Halim says. “It is important over its relatively brief history. museums that may be off the to think what time is.” The most prominent display is cultural radar for most, but each A few miles south in Chicago the massive Stardust Casino with its own intrinsic value. is the Eleanor Robinson Countiss sign—11,000 light bulbs and 7,000 Indeed, many offer leaders an House, a massive early 20th- feet of neon tubing. Plus, there eye-opening window into just century mansion overlooking are smaller, neon-filled wedding how breakthrough innovations Lake Michigan and home to the chapel and motel signage from really occur. International Museum of Surgical the 1930s through the ’60s. This Our own three-museum tour Science. Its extensive collection is “Old Vegas,” when a bright neon took us to the heartland of America of more than 7,000 artifacts sign was a big deal in the desert and an unusual destination: the includes rare medical texts, some sky. At night, museum visitors Halim Time & Glass Museum dating back to the 15th century, can see several of the signs in Evanston, Illinois. Here, we scary-looking early surgical tools, restored to their former brilliance. marveled at a room dedicated to as well as ultramodern diagnostic Sure, it isn’t Michelangelo’s chronometers. What may look to tools for detecting cancer. A “David” or a Gutenberg Bible, but the untrained eye like brass clocks macabre favorite is a collection it’s all a reminder that “art” can Clockwise from top left: Walter Bibikow/Getty Images; Batman; The Neon Museum, Las Vegas, Nevada; Courtesy of Halim Time & Glass Museum in wooden cases actually represent of ancient Peruvian skulls with certainly have many definitions.

See our own tour of a handful of specialty

museums at kornferry.com/institute

65 THE 2600 Suite AvenueStars, 1900 the / of Briefings Additional copies:Additional ENDGAME

Jonathan Dahl [email protected] Los Angeles, CA 90067 CA Angeles, Los VP, Chief Content Officer, Korn Ferry Reprints: Advertising: A Mirror Image 556-8502 (310) +1 Service:CustomerCirculation Tiffany Sledzianowski +1 (310) 226-6336 Tiffany(310) Sledzianowski+1 Stacy Levyn +1 (310) 556-8502 (310) Levyn+1 Stacy he says. Instead of recognizing, accepting and ou look in the mirror appreciating someone’s differences, they will each day and you feel assume their colleagues think exactly as they Y do, with the spillover being misunderstandings certain you know and misconceptions. who you are. Biased against “Fit,” meanwhile, is a common barometer for hiring. Who can argue against consider- certain people? Of course not. ing whether a candidate will fit well into the That’s someone else. And you company’s culture? Except, if that culture is heavily male or dominantly one race, the doors move on with your day. will never open to hires who don’t fit the mold. Study after study shows that we have a natural But as companies scramble to react to tendency to like those similar to us, and view today’s many longstanding inequities, they’re them through a softer lens. “We’ll say, ‘She’s installing a host of robust diversity and inclu- not ready because she lacks the experience,’”

sion (D&I) programs that must be making at Tapia says. “But then for someone else, it’s inks, in a sustainable and environmentally responsible manner. Produced utilizing solar power, recycled paper and soy-based PRINTED IN THE U.S.A least some people uncomfortable. To some ‘He’ll rise to the occasion.’” degree, experts tell me, there is a seed of Even the word “diversity” can make you unconscious bias in almost all of us. The chal- rethink your world. In a compelling recent lenge is accepting and adjusting, not column at the Korn Ferry Institute website, turning away. Barry Callender, a principal also in our I can only just scratch the D&I practice, discusses the paradox surface here, but ask any exec- that hiring “diverse” individuals . utive, for example, if he or is not the same as having a truly she treats everyone the same diverse organization. Labeling and nearly everyone will say anyone that way can be inad- they do. Color blind? Yes. vertently exclusive, he writes, But to Andrés Tapia, a senior “implying an unfair preference in client partner in Korn Ferry’s hiring, lower employee standards, D&I practice who has a rich his- and the idea that only women and tory of upping companies’ diversity people of color are diverse.” His solution: KornFerry Copyright2018, © 1 949 ISSN game, that’s a red flag. “The bottom line Look to hire and promote “talent from under- is if this person really believes they are totally represented groups,” addressing imbalances -8365 color blind, they have an unconscious bias,” instead of favoring race or gender.

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