BRAZIL: Booming, Busting … and Now? TALENT + LEADERSHIP

ISSUE NO. 3 0

Are Leaders Doomed?

The Coolest Jobs

$14.95 US / CAN / $14.95 US Will Humans Matter? IT’S WHERE YOUR GREATEST SOURCE OF VALUE CAN DRIVE YOUR BUSINESS PERFORMANCE. Maximizing performance in your organization today and tomorrow comes down to releasing the full potential of your greatest source of value. And, contrary to what many may believe, technology isn’t it. At Korn Ferry, we conducted in depth, quantifiable research to uncover the truth about the future of work. Are you placing your bets wisely?

Get your organization to UP. Kornferry.com/futureofwork IT’S WHERE YOUR GREATEST SOURCE OF VALUE CAN DRIVE YOUR BUSINESS PERFORMANCE. Maximizing performance in your organization today and tomorrow comes down to releasing the full potential of your greatest source of value. And, contrary to what many may believe, technology isn’t it. At Korn Ferry, we conducted in depth, quantifiable research to uncover the truth about the future of work. Are you placing your bets wisely?

Get your organization to UP. Kornferry.com/futureofwork Gary Burnison Thought leadership. Timely insights. And more. Chief Executive Officer UP. IT’S WHERE STRATEGY AND kornferryinstitute.com Michael Distefano PURPOSE MEET PEOPLE Chief Marketing Officer & President, Korn Ferry Institute AND EXECUTION. The Toughest Job to Fill Jonathan Dahl The improving economy has made qualified Editor-in-Chief You’re looking for new pathways to drive talent harder to find. You’ll never guess the sustainable, profi table growth. role that thousands of the world’s top talent Russell Pearlman acquisition professionals say is now the toughest Managing Editor to recruit. (Hint: it isn’t tech-related.) See our You need a sound strategy, fi nancials, and Nancy Wong Bryan new series, “Talent Forecast.” Copy Editor operating model but ultimately these don’t create change—your people do. Melissa McCoy Copy Editor But for too long HR has oŠ ered piecemeal views VIDEO: The Luxury of Talent of people based on inconsistent processes, What leadership skills are needed to keep Krug, technologies, and metrics. Cartier and Hermès USA on top? In this video series, Michael Distefano, chief marketing officer, Creative Directors and Melanie Kusin, vice chairman, Board & CEO Until now. Korn Ferry has connected the dots, Robert Ross allowing us to apply a holistic eŠ ort to your Services, chat with the CEOs of each of the three Roland K Madrid brands about executive leadership and how to win people so that you can release the full power over a new generation of consumers. Art & Production and potential of your greatest lever for success. Daniel Botero Candace Lockley See how you can get to UP at kornferry.com Marketing & Circulation Manager VIDEO: Buzzworthy Stacy Levyn Rozen

Learn teamwork and leadership skills from Project Manager bees in our web-exclusive video, “Bee Experts.” Tiffany Sledzianowski You won’t get stung. Digital Marketing Manager Edward McLaurin

Marketing Coordinator Naz Taghavi

PLUS

Contributing Editors D.C. Talent Turnover Lexie Barker Read our continuing articles about the change of leadership David Berreby in Washington, D.C., including figuring out where to go Simon Constable next after you’ve spent time working in the White House. Martin Coyne Patricia Crisafulli Lawrence M. Fisher William J. Holstein Doron Levin Christopher O’Dea Glenn Rifkin P.J. O’Rourke Shannon Sims Executive Search | HayGroup | Futurestep Meghan Walsh Peter Zheutlin

4 Briefings On Talent & Leadership UP. IT’S WHERE STRATEGY AND PURPOSE MEET PEOPLE AND EXECUTION.

You’re looking for new pathways to drive sustainable, profi table growth.

You need a sound strategy, fi nancials, and operating model but ultimately these don’t create change—your people do.

But for too long HR has oŠ ered piecemeal views of people based on inconsistent processes, technologies, and metrics.

Until now. Korn Ferry has connected the dots, allowing us to apply a holistic eŠ ort to your people so that you can release the full power and potential of your greatest lever for success.

See how you can get to UP at kornferry.com

Executive Search | HayGroup | Futurestep CONTENTS “We believe that if men have the talent to invent new machines that put men out of work, they have the talent to put those men back to work.” —JOHN F. KENNEDY, 1962

COVER STORY

The Future of Work: 2030 / 28 Clothing with built-in computers, suborbital commuting, artificially intelligent appliances. Innovations like these aren’t too far away. So how will it all change actual work?

By Russell Pearlman, Karen Kane and Hazel Euan-Smith Cover art by Peter Crowther

6 Briefings On Talent & Leadership FEATURES

ON THE HORIZON Shiny Objects / 38 THE LATEST THINKING / 9 New, fast-changing economic “weather patterns” can The luxury market is reveal capital flows into and out of countries. sputtering, but the CEOs behind three famous luxury brands TALENT SHOW / 12 have plans to stand out. What midlevel leaders need to get ahead (and what C-suite leaders need to stay there). By Michael Distefano and Glenn Rifkin HIRING LINES / 14 Hong Kong and Singapore turn to unusual methods to attract fintech talent.

HISTORY LESSON / 16 Booming, Sony’s co-founder, Akio Morita, built a technology empire by Busting ... climbing up the marketing ladder, not the tech ranks. and Now? / 48 How Brazil manages all the turmoil COLUMNS Q&A by keeping its talent pipeline intact.

By Shannon Sims THE KORN FERRY BRIEFINGS FOR INTERVIEW / 18 THE BOARDROOM Bee The Inner Circle: LESSONS / 22 The CEOs and CCOs, Martin Coyne together, at American Bee Airlines and Kaiser momentous decision hangs in the balance: Permanente. Lessons / 56 where to move the entire organization. Diverse opinions are aired and all options aevaluated intensely. Finally, a decision is made— They may be facingnot by fiat or majority vote. Everyone agrees, PATTERNS a worldwide decline,eliminating dissension. This could be, of course, a lean tech companyIN THE but bees can still whose efficiency would make any start-up owner DOWNTIME proud. Or a flat organization that steadfastly WORKPLACErefuses / 24 teach us a lot aboutto follow any hierarchy to foster creativity. Actually, leadership. it’s a scene that takes place among critters that humans have both feared and loved for centuries:Signe the humble honeybee. By Patricia Crisafulli The insect, which fosters a $15 billion pollinationSpencer industry, has probably gained most attention in GROOMING / 65 recent years for a mysterious decline in population. Indeed, since the mid-2000s, beekeepers have CEO haircuts reported sudden disappearances and disturbing shortages of honeybee colonies. But while researchers work hard to figure out the problem, GADGETS / 68 research on bee behavior has grown only more TRAINING Biofeedback devices GROUNDS / 26 ON MY CALENDAR / 70 Adam Conferring Penenberg on conferences 59

PLUS FROM THE CEO / 6 Gary Burnison ENDGAME / 72 Jonathan Dahl “I don’t know anybody who was “Should we ever inspired by their smartphone. return to That takes a human being.” communicating by pulp?”

Issue No. 30 7 FROM THE CEO

BY GARY BURNISON Without People, There Is No Show

can still remember riding my bicycle through my I hometown on that day in July 1969, and hearing the shouts and cheers coming through the screen doors of the houses in our neighborhood. “The Eagle has landed!” “We did it!” The Apollo 11 mission proved that the sky was no longer the limit. Rockets and technology that had been unheard of only a decade before had taken us all the way to the moon. But the humans left the footprints behind. For all the technological wonder, people had made the difference. Today we stand on the threshold of another technological era, where ever-increasing digital inroads seem to raise the question: Have employees become irrelevant? A surprising number of CEOs apparently hold that view, as revealed in Korn Ferry’s interviews of 800 leaders of multimillion-dollar global businesses:

l More than two-thirds of CEOs (67 percent) believe technology will create greater value in the future than people.

l Nearly half (44 percent) think that robotics, automation and AI will make people “largely irrelevant” in the future of work.

l When asked to rank what their organization’s top five assets will likely be in five Artwork by: Ken Orvidas

8 Briefings On Talent & Leadership years, the company’s workforce did not even make the global economy—more list. Instead CEOs named (in order): technology, inno- Manufacturing than twice the value vation, product/service, brand and real estate. manager of tangible assets such Well, as a CEO, I guess the bright spot is technology Posting on LinkedIn, as technology and real doesn’t talk back (as people do). But wait, that’s not in response to Burnison column estate. even true—thanks, Siri. The debate should Nevertheless, the findings above are, quite frankly, “Technology, R&D, not be either-or, tech- shocking to me. A LinkedIn post I wrote on it created products and services, nology versus people. quite a stir with some 120 comments—many of them brand and real estate It’s obviously both. The emotionally charged responses to the leaders surveyed are all products of bigger dilemma is the who see technology people. Lose the future of work. How right people and it as more crucial to the Management will we deal with a labor all fails.… A balance future of work than consultant force that is increasingly people. between AI and porous, specialized and Posting on LinkedIn, employing people has Although people in response to Burnison column transient? spend as much as to be reached.” The future of work one-third of their day “The one thing that looks something like staring at their hand- technology will never this: At least 50 percent of the labor force will be held screens, I don’t demonstrate or freelancers—not outsourced or insourced but self- know anybody who was unleash is the power sourced, applying highly specialized skills to multiple ever inspired by their of enthusiasm. When companies simultaneously. People will more routinely smartphone. That takes people feel they are work into their 70s and usually into their late 60s. In a human being. being invested in fact, it will be common to hire or “rent” a 64-year-old This is not to they become a much first-time employee. Moreover, people will work for dismiss the fact that greater force than any as many as 25 different companies during their life- technology is a potent amount of technology time and enjoy multiple careers. (As a baby boomer, differentiator. Show me investment.” I will have worked for four companies; my daughter, a company that isn’t in who is 24, has already worked for two organizations some way a “tech firm,” and I’ll show you a company post-college.) And knowledge will determine a worker’s that’s largely irrelevant. Technology has unleashed pro- earnings for life. ductivity and changed the way we work and live—all Yes, technology will continue to disrupt the labor the way back to the Industrial Revolution. In the 1800s, force. But we have to remember, rockets didn’t take us 90 percent of people lived on farms; today in the U.S. to the moon; it was the engineers and the dreamers. that number is a mere 1 percent. The Internet didn’t create a globally networked But too much reliance on technology at the expense economy; it was the innovators and creators. of talent is shortsighted. An economic analysis com- From sports to entertainment to business, it’s still missioned by Korn Ferry found that human capital pretty simple: The team with the best talent usually represents a potential value of $1.2 quadrillion for the wins. •

Issue No. 30 9 MEET YOUR EQUAL.

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THE LATEST THINKING The Weather Economy

BY SIMON CONSTABLE

Savvy corporate leaders are homing in on the increasing rate that capital flows into—and out of—countries.

t’s late fall in New York City. The weather is cold, wet and windy— normal for the time of year. Forecasters see frigid air bringing the first big snows of the season to the Midwest. Come June, across the globe, Indians will expect the monsoon to drench the land. Atmospheric thermal systems, Iwhich vary considerably from day to day and year to year, determine the local weather. In turn, the weather affects crop yields, making the difference between drought-induced disaster or a year of abundance. No matter how ripe the land is, the weather changes everything.

11 ON THE HORIZON

THE LATEST THINKING

$ $$ $ $$$ $ $$ $ $ ay attention, corporate $ $ $ $ leaders, because it turns $ $ $ $

out that in the world of $ $

$ $ P $ $

global economics, the same is true.

$ $

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Economists say no matter how $

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much potential a country may $ $

$

UNITED $ $

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$ $ hold, it needs capital to grow, and $

$

$ $

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STATES $ $ $ just like the weather systems swirl $

$ $ $ around the atmosphere, capital $ $$ flows from country to country. Call $$$$ $$ it the “weather economy.” Business $$ BRAZIL

$ $ $

leaders, from savvy CEOs to chief $ $ $ $ $

financial officers who rely on -rev $ $ $

$ $ $ $ $ enue forecast models, know all too $ $ $ $$ $ $ $ $$ $$$ well the importance of knowing $ $ $$$$ $ $ $

which countries are losing cap- $ $ $

ital—and which ones are gaining $

$

$ it. Only now there is evidence that $ the pace of capital or investment sunk a remarkable $2 trillion into to find investment from outside the coming in—and leaving—countries that economy in 2010 alone. country,” says Acalin. The whole has picked up, creating a whole Though not quite the center thing comes down to a very simple new need to follow the weather of attention in most boardrooms, idea: Capital is the cash that people economy even closer. these kinds of capital flights and have saved, now being put to use To some degree, the mere influxes play a huge role in how in growing the economy. It heads existence of a much more global companies perform. It determines where it’s treated best. economy, with more trade and how much investment goes into For most countries, capital bigger multinational companies, a country’s infrastructure, and comes from investors or lenders. is causing the shift. Julien Acalin, to a large degree employment The past few years have seen mas- a research analyst at the Petersen opportunities. Retailers will do sive floods of foreign cash heading Institute for International Eco- great internationally if they know into Latin America’s biggest nomics, also cites fewer currency where to focus their efforts and economy, Brazil. The high growth, controls in many countries and the inventories; manufacturers will fueled by commodity exports and rise of electronic transfers. a rising population, made it Either way, the numbers attractive. In 2015 the country are fairly astonishing: In “Just like the weather saw $70 billion, or 14 percent just under two years ending of total incoming capital, late 2016, non-residents systems swirl around from bank loans. On top of yanked $1.2 trillion in cap- the atmosphere, that there were investments ital from China, according in stocks and securities, for to estimates from the capital flows from a further $115 billion inward Institute for International country to country.” purchases of securities. But Finance. That’s around 10 that turned sour in a trice. percent of China’s economy. Over staff accordingly. It’s what creates In the first half of 2016, foreign in the United Kingdom, $906 bil- the ability to buy equipment locally, investors got spooked: Bank lion was pulled out in 2013. And it increase hiring and raise capital in loans contracted and foreigners isn’t just money going out the door: the stock market. dumped Brazilian stocks—the Brazil saw an influx of at least $500 At a bare minimum, a country total outflow from the two types billion in foreign capital every year needs to save in order to grow. But of investment: $40 billion. Why? from 2010 through 2015, up almost if it wants to expand at an even Blame a corruption scandal, a tenfold from a decade earlier. Ever faster rate, then it needs foreign falling currency and a fiscal crisis. wonder why the U.K., pre-Brexit, capital. “When you have higher (See “Brazil: Booming, Busting … was so robust? Foreign investors investment than savings you need and Now?” on page 48.)

12 Briefings On Talent & Leadership $$$$$$$ $ $$ $ $ $ $ UNITED $ $ $ $ $ $ KINGDOM $ $

$ $

$ $

$ $ $

$ $$$$$

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$ $ $$ $ $

$ $

$ $ $ $

$ $

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$ $ $ $ $ $ CHINA $

$ $ $$$$$ $$$ $ $$ $ $ $$ $ $ $ $$ $$ $ $$ $$ $ $$$$$$ $ $ $ $ Annual Inflow and $ $

$ Outflow of Capital $

$

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$ $ BRAZIL IN BILLIONS $

2010 > $619 it would upgrade its 2013 > $534 factory in Sunderland, 2016* > $116 England, into a “super plant,” according to the CHINA Guardian newspaper. It means more jobs, more 2010 > $229 growth for Britain. 2013 > $280 It should be obvious that Nissan’s money will 2016* > –$542 flow into Britain’s economy. But flight from both China and Brazil it isn’t always so clear. “It is very when their currencies plunged. UNITED KINGDOM unusual that you can measure (Would you keep money in a bank 2010 > $2,016 exactly how much capital is account that shrank your balance flowing,” says David Ranson, over time? Not likely.) 2013 > –$906 director of research at HCWE & There is one plus to a country 2016* > –$55 Co. Government statistics don’t losing a lot of investment; the cover everything, and they aren’t sooner the cycle ends, the UNITED STATES all created equal. U.S. government sooner more money tends to data is different from those from return. But the faster-changing 2010 > $4,248 China. The information available movements of today can make 2013 > $3,740 is an estimate. But there are other investors nervous and, thanks clues about what is happening. to better technology, investors 2016* > $475 “One of the major indicators and lenders large and small can *Partial data for 2016. we look at is the balance of transfer funds in a nanosecond, Source: Institute for International Finance payments of countries: The which only adds to more frequent trade deficit or surplus,” says and larger capital flows. It’s the Another type of capital is Ludovic Subran, chief economist weather economy’s own form of foreign direct investment (FDI). at business-to-business credit global warming. It’s not so flighty as other capital, insurer Euler Hermes in Paris. If “The long-term trend of the in part because some capital is a country imports more than it increasing global financial open- simply hard to move, like new exports, as does the U.S., then ness is likely here to stay,” says Bill factories. “FDI is based on other countries lend the money. Adams, senior international long-term commitments, and Currency stability is another economist at the PNC Financial it tends to last,” says Petersen’s indicator: A stable currency is Services Group, in Pittsburgh. “It Acalin. In October, Japanese more likely to attract capital—and means more fast global moves in carmaker Nissan announced vice versa, which helps explain the capital is the new normal.” •

Issue No. 30 13 ON THE HORIZON

TALENT SHOW

Finding the Keys to the Corner Office

What midlevel leaders need to get ahead (and what C-suite leaders need to stay there).

t matters in wars, in most among C-suite types than brashness away once you’ve made sports and, to some extent, in midlevel managers, and those it to the top. Managing ambi- games of chance. But does it in more successful or engaged guity, instilling trust, planning, really take courage to get into top executives. In other words, a persuading—these are the top Ithe upper echelons of a company? guide to getting into the corner traits for highly engaged versus Slowly but surely, science office—and staying there. low-engaged C-suite types. is finding ways to measure the Looking at these traits by Of course, no guide is perfect, traits and skills that tend to industry, it turns out fortune and few people can pull off a per- succeed in corporate hallways, does indeed favor the bold, with sonality makeover. The takeaway: and it’s getting more exact by the courage the top trait in the Try. “It’s not easy for someone day. In fact, based on executive financial services sector, and the who doesn’t innately possess responses from Korn Ferry’s second highest in professional specific competencies to start Four Dimensions of Leadership business services. It’s also in the exhibiting them,” says Stu Cran- Assessment (KF4D) tests, it’s top five of at least three other dell, senior vice president, Korn possible to rank the skills in major fields. But a bit of advice Ferry Institute. “But proper devel-

two ways: those more common for C-suite executives: tuck that opment and practice can help.” • O’Ferrall More Zoe by: Illustrations

14 Briefings On Talent & Leadership BY JAMES LEWIS

GETTING AHEAD The top five competencies seen in C-suite executives versus midlevel managers.

PROFESSIONAL ADVANCED CONSUMER FINANCIAL GOVERNMENT BUSINESS SERVICES TECHNOLOGY GOODS SERVICES

Builds Effective Balances Communicates Courage Being Resilient 1 Teams Stakeholders Effectively

Courage Global Perspective Being Resilient Global Perspective Manages Ambiguity 2

Action Oriented Builds Effective Builds Effective Being Resilient Builds Effective 3 Teams Teams Teams

Develops Talent Courage Courage Interpersonal Courage 4 Savvy

Engages & Inspires Drives Ensures Action Oriented Develops Talent 5 Results Accountability

RANK

STAYING AHEAD The top five competencies in highly engaged C-suite executives compared with their lower-engaged peers.

PROFESSIONAL ADVANCED CONSUMER FINANCIAL GOVERNMENT BUSINESS SERVICES TECHNOLOGY GOODS SERVICES

Manages Ambiguity Plans & Aligns Instills Trust Persuades Self-Development 1

Being Resilient Nimble Learning Strategic Mind-set Manages Ambiguity Engages & Inspires 2

Interpersonal Savvy Strategic Mind-set Manages Ambiguity Being Resilient Develops Talent 3

Ensures Manages Ambiguity Values Differences Ensures Manages Ambiguity 4 Accountability Accountability 5 Nimble Learning Being Resilient Being Resilient Nimble Learning Being Resilient

RANK

Based on executive responses from Korn Ferry’s Four Dimensions of Leadership and Talent Assessment (KF4D).

Issue No. 30 15 ON THE HORIZON

HIRING LINES

Playing in the ‘Sandbox’

Two rival Asian cities reduce regulations for fintech firms—but still face talent challenges.

hether they But leave it to the competitive safe space where would-be finan- are based in spirit of two longtime rival cit- cial technology moguls can try Silicon Valley, ies—Hong Kong and Singapore— out new ideas—everything from Austin, Texas, to put those budding Steve Jobses Bitcoin-like payment systems to Wor Mumbai, tech entrepreneurs at ease. In a move that has raised crowdfunding—under relaxed tend to be a breed unto them- some eyebrows but seems to have regulatory constraints. In the selves. And this particular breed had a successful impact, both cit- lingo of the day, is no fan of government—at least ies have created a sort of digital not government regulations or bureaucracy that can dampen the start-up culture.

16 Briefings On Talent & Leadership BY CHRISTOPHER O’DEA

these so-called sandboxes are senior client partner at Korn Ferry aimed at encouraging innovation Hong Kong and leader of the Global Technol- and facilitating access to pre- and Singapore ogy Markets & Digital Practice, cious seed capital. China. The average age of tech Both cities see an opening are competing employees is 25 to 30 years, com- here because the Internet finance pared with 35 to 50 at traditional industry has been mushrooming to become financial firms, which drives a in Asia, with giants like Tencent, financial tech very different pace and style of Alibaba and Baidu offering to day-to-day work compared with the enormous population there a centers. Will banks. What’s more, Zheng says, host of new ways to bank, invest entrepreneurs “at tech firms the leaders are or shop that have been common usually visionaries,” requiring in the West. The result: China come? other executives to respond with leads the world in fintech users actionable strategies. and market potential, according remains subject to risk manage- According to Serina Wong, a to one study, with a market size ment controls. global sector leader for Wealth of over $1.8 trillion in 2015 alone. Such moves, of course, are Management at Korn Ferry Inter- That has spurred global interest tricky because they can scare off national in Hong Kong, the criti- in the region and convinced consumers expecting airtight cal leadership attributes for such Hong Kong and Singapore to protections. But observers say talent include “extremely strong look for ways to open their doors that’s turning out to be a sec- and polished communication to fintech entrepreneurs. ondary issue. The problem—one skills,” coupled with “the ability Sandboxes are not new, of facing Asia in general—isn’t on to deal with ambiguity.” What’s course, but the idea contrasts the customer side, but more on more, she adds, “especially when with the generally strong finding the right talent to match they go global, they need the abil- regulatory regimes that govern this new order. ity to deal with regulators.” banking in Singapore and Hong “Both cities are competing to Ultimately, the battle for Kong. For its part, Singapore last be the fintech capital of Asia, but talent may partially be decided year began allowing banks to try both are having a hard time,” says by whichever city seems “hotter” out their new fintech products Matthew Blume, director of client in fintech. This fall, Singapore without needing full government technology for ASEAN at Thom- got some attention for holding compliance. Not to be outdone, son Reuters in Singapore. The its inaugural fintech festival—but Hong Kong a shared challenge: “There’s quite Hong Kong already had its own few months later a shortage of technical talent conference, which it held just introduced similar such as developers with domain days before. The race is so tight rules, allowing knowledge in financial services.” that some surveys put Singapore banks to pilot Not surprisingly, one of the ahead, others Hong Kong … all of new technology, key challenges for candidates which may mean reducing more provided it has moving into the fintech world is regulations for newcomers—more been tested and the cultural fit, says Ed Zheng, sand in the sandbox, if you will. •

Two cities, FUNDING FORSAKING PARTYING Singapore, Both easing Each holds its two efforts. $225 million in restrictions own weeklong commitments over on some extravaganzas One five years; Hong banking or conferences Kong, $300 million services on for fintech winner? already spent. a pilot basis entrepreneurs.

Issue No. 30 17 ON THE HORIZON

HISTORY LESSON

The Greatest Marketer You May Not Know

BY GLENN RIFKIN

efore there was Apple, there was Sony. And before there was Steve Akio Morita built Sony into Jobs, there was Akio BMorita. A marketing genius who the world’s top brand. built Sony into one of the world’s best-known and widely respected brands, Morita and Sony almost he was intent on forging strong Given the abject destruction single-handedly shifted the business relationships in North of Japan during the war (when negative, second-rate connota- America, Europe and elsewhere. the nation had lost a quarter of tion of “made in Japan” and Under Morita, Sony became its wealth), Morita’s achievement demonstrated that the nation, a glittering household name was extraordinary. Always devastated by World War II, around the globe; at its height fascinated with gadgets and could become an economic force it was a better-known brand appliances, Morita studied in the world. than Coca-Cola. As recently as physics in college, and in 1946, Under Morita’s 43-year watch, 2006, a Harris Poll showed that amid the rubble of postwar Sony created a remarkable string Sony was the No. 1 brand among Tokyo in a bombed-out depart- of industry-changing products American consumers, ahead of ment store, founded the earlier that range from the first home- Coke and General Electric. version of the company with his use VCR to the groundbreaking “He was probably the greatest partner Masaru Ibuka. While Sony Walkman and the compact marketer of the 20th century, right Ibuka handled the technology disc. He even took Sony into up there with Steve Jobs,” says development, Morita became the movie business by acquiring John Nathan, professor of Japanese the front man, raising money Columbia Pictures in 1989. A cultural studies at the University and becoming the company’s visionary who believed in global of California, Santa Barbara, and chief salesman. A dozen years markets, Morita understood that author of “Sony: A Private Life,” later, he would coin the name for innovation and marketing would a look behind the scenes at Sony the corporation, combining the drive profits and growth, and during Morita’s tenure. word sonus, Latin for sound, with

A REMARKABLE STREAK OF “FIRSTS” Landmark products and events during Sony’s Morita era include:

The company, under an earlier name, Now called Sony, becomes first Japanese Trinitron 1950 introduces Japan’s first tape recorder 1961 company to offer shares in the U.S. 1968 color TV

Japan’s first Enters the music industry in a joint 1955 transistor radio 1968 venture with CBS, CBS/Sony Records

18 Briefings On Talent & Leadership “sonny boy,” an English phrase that connoted energy and youth. Morita often told the story of his first trip to Germany in 1953, when in a Düsseldorf restaurant he was served a bowl of ice cream decorated with a miniature umbrella. The German waiter, attempting to be kind, informed Morita that the umbrella was made in Japan. Morita was infu- riated that “the world associated ‘made in Japan’ with trinkets and cheap imitations,” according to his obituary in The Economist in 1999. “For the rest of his life “The public he sought to prove to foreigners does not know that ‘made in Japan’ meant origi- nality, quality and value for what is possible, the money.” but we do.” As Sony grew, Morita felt the —AKIO MORITA pull of the U.S. marketplace and Morita demonstrating the Betamax in 1979. moved his family to New York. With his blue eyes and shock of white hair, he was handsome, Apple’s iPod, required the use of home videocassette recorder. flamboyant and charismatic, a earphones, which were considered Within a year, competitor JVC perfect figure to spearhead the anathema because they were introduced the VHS format—a globalization of Sony through used primarily by deaf people. cheaper, more versatile product— the 1960s and ’70s. “Our plan Undaunted, Morita unveiled the but Morita refused to give in and is to lead the public with new Sony Walkman in 1979 and it fun- spent years marketing a format products rather than ask them damentally changed how people people wouldn’t accept. “He what kind of products they listened to music. got blindsided by his passion,” want,” Morita said. “The public But if there is any cautionary says John Nathan. Still, though does not know what is possible, lesson in Morita’s story, it’s how chastened, the Betamax fiasco but we do.” the power of marketing has did little damage to Morita’s One of his greatest examples its limits. In 1975, Sony tried legacy, and when he died in 1999 was the Sony Walkman. The to revolutionize how people at age 78, he was hailed as “the Walkman, a portable audio cas- watched television and movies engine that pulled the Japanese

Portrait by: Ullstein Bild / Contributor, Getty Images sette player and a forerunner to by unveiling Betamax, the first economy.” •

Morita appears on the Betamax home CDP-101, the world’s first Discman, the world’s first 1971 cover of Time magazine 1975 video recorder 1982 compact disc player 1984 portable CD player

Wins an Emmy Award for Walkman, the world’s first Acquires Columbia Pictures 1973 the achievements of Trinitron TVs 1979 personal stereo 1989 Entertainment, renamed Sony Pictures

Issue No. 30 19 THE KORN FERRY INTERVIEW

At two Fortune 500 firms, we put the CEO and CCO in a room— The and got an earful on the critical Inner partnerships they have now. Circle BY JONATHAN DAHL

Sitting with his family at his San Francisco home that now-famous November night, watching state after state turn red, Bernard Tyson,

the CEO of health care system giant Kaiser Permanente, turtles would have to wait for another day. knew he needed to take action. He’d need to send out a Once upon a time, someone in Uchida’s role wouldn’t message the next day to the company’s 200,000-plus have played a role in Kaiser Permanente’s response employees and 19,000 physicians, assuring them the until after the big guns in the C-suite figured out the company would be ready for any change. And he’d need next move. But these days the chief communications his best minds to prepare a strategy for the likely new officer has become a big deal, too. In a growing number order of things in health care. of companies, the job has evolved into part strategist, Off went a text for help to Donna Uchida, his chief part modern-age communicator and part designer/ communications officer—and one of his most trusted implementer of plans corporate-wide. And the number of advisors. hats for the role only keeps growing. Only as luck would have it, she wasn’t nearby. Some “The change has been radical,” says Roger Bolton, 1,500 miles away on a beach near Cabo San Lucas, president of the Arthur W. Page Society, which represents Mexico—and unaware of the results—Uchida was digging top communications executives globally. “It’s not just eggs out of the sand as part of a sea turtle conservation the person down the hall you call to handle a crisis, but project. “Oh my,” she remembers thinking. Saving more a trusted advisor and strategic leader who integrates a range of functions in a company.” To some degree, of course, this change is evolving, as companies rewrite their rulebooks regarding the The Great Communicators traditional roles. Some CCOs serve on executive According to a Korn Ferry survey of CCOs committees; others are integrated into key digital at Fortune 500 companies: operations; some even oversee HR to ensure internal messaging. Gary Sheffer, the former vice president of communications and public affairs for General Electric, 91% “Providing leadership” is becoming recalls CEO Jeffrey Immelt gauging him for his thoughts a bigger focus in their job on buyout targets. “You have to be persuasive inside the C-suite,” he says. “It’s a role with greater influence and 47% “Defining company character” is more collaboration across the enterprise.” becoming a bigger focus in their job But how much more collaborative? We wanted to know how deep CCOs were moving into the inner circle, Wilfredo Torres, courtesy of American Airlines 48% Oversee corporate advertising so we put two of the nation’s most prominent CEOs in their offices with their CCOs and let them just talk about Oversee marketing the shifts in corporate communicating. 17% Photo by:

20 American Airlines Group tepping into the office of Doug Parker, CEO of a former TWA flight attendant turned MBA grad, the largest airline on the planet, we find an enor- to come to America West Airlines. She retorts her mous 10-foot birthday card leaning on a cabinet. role is “kind of to tell him what’s going on.” His communications officer, Elise Eberwein, has Both airline lifers, they share a survivalist’s a satisfied smile on her face. “Yesterday was his mentality that comes from being immersed in 55th. He was very happy about that,” she quips. an industry long traumatized by one merger and Her own office is just down the hall in the com- bankruptcy after another. But while huddling in pany’s somewhat antiquated headquarters in Fort the trenches together, the two have quietly con- Worth, Texas, decorated throughout with photos cocted one of the industry’s more unusual and and models of half-century-old planes. (A renova- ahead-of-the-curve mandates for the CCO. tion is in the works.) That’s just far enough to give Just check out her title, a mouthful by itself: them some breathing space—but close enough for Executive Vice President, People, Communica- the one-on-one meetings that are as routine as tions & Public Affairs. It’s a job that comes with a their constant e-mails, texts, cell calls, and most staff of more than 500, including not only internal importantly, a lively banter on full display today. and external communications and social media, “I knew I wanted to hire her, and then she made but also the HR department. “Frankly, I couldn’t it hard,” says Parker about convincing Eberwein, imagine the communication function not working

Doug Parker and Elise Eberwein have worked together through years of industry turbulence.

21 The Inner Circle

together with the HR,” says Parker, who counts Eberwein as one of only six direct reports. “It’s not just communications but setting the policy about what you want your culture to be. And Elise is the best person we know about understanding airline employees.” This in itself turns out to be a critical asset, not only because airlines are so service- oriented but because communications has proven critical during Parker’s unusual success at a key strategy: creating turbulence-free mergers. Typically airline mergers are a nightmare that can destroy a CEO’s career, but Parker pulled off two of the biggest— America West/US Airways and then US I said, ‘Look, you’ve got to talk to the Airways/American—to create the larg- frontline employees, including the pilots.’ est airline in the world. He credits that in part to communicating better with airline unions and employees, a process Eberwein helped guide him on. “I said, ‘Look, you’ve got to talk to the frontline employ- ees, including the pilots,’ ” she recalls, “They fly really expensive airplanes and they want to understand the business.” Hence began a series of employee town hall meetings that ranged from friendly to feisty—which created far more transparency. “We decided a long time ago that our job was to get information out to employees [about mergers],” says Parker. “It makes a huge difference as opposed to letting them guess.” Yet, even now, as this combined giant enjoys record profits, those town hall meetings continue every month. Parker believes that most airlines will be able to afford new planes and technology, so keeping morale up he hopes will be American’s distinguishing factor. Yet among battle-scarred employees, it isn’t always easy. “I had one of our customer ser- vice agents and I could tell she wasn’t excited by some of the company-wide raises,” he says. “And she said, ‘Well, I’m just waiting for you to take it away.’ ” Together, Parker and Eberwein feel confident that rebuilding trust will keep the airline flying high.•

At Eberwein’s urging, Parker holds regular town hall meetings with employees.

22 Photos by: Cordero Studios, right; Wilfredo Torres, courtesy of American Airlines Kaiser Permanente T ing him sometimes if he even needs her. “He always says, ‘It’s a team sport.’ ” sport.’ ” ‘It’s a team says, her. always “He needs heeven if sometimes him ing ask her leaves Which says. she spoken,” well so heis of meand ahead alittle be even Pleasures.” of Life’s Simple ACelebration Things: Little “Just gift: a as us to gives she book asmall sits desk her On calmness. remarkable with handle to appears she that position atense in consultant, acommunications as years several hesays. out, speak to topics” on certain obligated feel “I audience. global of the front out in themselves putting Davos. at spoken hehas once than More panels. major to gatherings community small from everywhere at ayear, 70 speeches than more gives job. He his role in public Tyson important an sees Washington. in administration new a now with change of major cusp on the clearly is industry care health the dation, consoli and mergers their accomplished have mostly airlines While roles. differing the reflects industries companies’ two the he says. 24/7,” access the needs she and 24/7 focus messenger. aone-way of merely instead he says, executives. Tyson to key coach other and as well as strategies, main company’s the of of some integrator and implementer key a to polisher tweet and speech aide—from right-hand his role as awide-ranging plays she Instead, member. not aformal is she meetings, executive national company’s the attends she while And floor. another is on office her and traditional more is her. to title Her reporting of employees number the hand on her count can Uchida comparison: by here universe alternative an like it seems fact, In American. at Eberwein’s role for than her structure different entirely an But hecreated hesays. source,” my trusted is “She on Uchida. andrelies values out he how much you flat tell Bay, will Francisco San of the view tling She says she and her boss think uncannily alike. “He’s often where I am; he might hemight Iam; where “He’s often alike. uncannily think boss her and she says She serving after ago years six about only Kaiser at arrived who Uchida, leaves Which shield,” of the “myth the Tyson what calls behind hide nolonger can CEOs Modern between difference To the degree, some her Ineed significant, so role is “The street, atwo-way as operates job The speak freely?’ ” she says. says. she freely?’ ” speak I ‘May saying, #NoFilter. “It’s basically items Tyson some tags she Bernard to or texts e-mails In code: own her devised Uchida Donna CEO. So her to sible pos as bluntly as something say to had she if felt she as times just were here And clearly she does. Tyson, whose 27th-floor corner office offers a star a offers office corner Tyson, 27th-floor does. she whose clearly And - and she needs the access the 24/7. needs she and 24/7, focus her I need THE KORN FERRY INTERVIEW THE • - - - trusted source.” Donna Uchida“my Bernard Tyson calls 23 BRIEFINGS FOR THE BOARDROOM Dead-Weight Directors: Is There an Answer?

Their company actions, or inactions, of he board of direc- was facing potential some corporate boards obsolescence, yet the can make news, as they tors knew some- board members were did in 2016 over some thing had to be more worried about their high-profile corporate T legacy than doing what snafus. It’s also poten- done; its medical services was best for the firm and tially a bigger problem shareholders. as a director ages and his company was under threat In today’s world, or her time on the board corporate board directors grows. About 45 percent from a new software struggle with many of S&P 500 directors are issues, such as evaluating between 61 and 70 years system within the indus- management plans, old, and more than 800 being good stewards for are over the age of 70, one try. The CEO effectively shareholders, advising on survey says. the company’s strategic The behavior of dead- showed how investing in direction and creating a weight board directors strong CEO succession. shows up in a few ways, new digital technology But there’s one issue that but being scared may be tends to get much less the most common. Boards would counter the immi- attention: There are a are under an increasing lot of less-than-stellar amount of scrutiny and, nent threat and position board members. You unfortunately, some might in fact call some directors have become the firm for long-term “dead-weight direc- too afraid of risk because tors”—they can act like a of it. In the case of that growth. millstone, methodically medical services com- It made sense to every- grinding down the CEO pany, the two recalcitrant and management team. directors, fearful of any one … except two timid These board members changes, delayed any are excellent at sowing major decision-making. board members. “What if dysfunction and terrible After many months, at governance. one of the directors we fail? What will happen Of course, this is a grudgingly supported perennial concern—any the plan, while the other to our reputations?” these board can have some bad quit the board. The delay apples. But it’s a bigger frustrated other board two consistently asked. deal in an age when the members and the CEO,

24 Briefings On Talent & Leadership Coyne is a board director, advisor and governance evaluator for a diverse group of public and private BY MAR TI N companies. COYNE

Difficult directors can act as millstones, crushing the very value of the board. but most important, the destructive behaviors the relationship the CEO independent third party company lost an oppor- serve only to slow meet- has with the lead inde- often can uncover many tunity for competitive ings to a crawl. pendent director or non- issues and suggest recom- advantage. It’s often difficult executive chairperson. mendations for improve- Another surprisingly to get rid of these The second important ment that a typical board common issue: being dead-weight directors tool is having force- assessment cannot. unprepared. It’s part of a immediately, but there ful board evaluations. There are millstones director’s job to stay on are two effective ways Anonymous annual board in every workplace who top of the firm’s business, to handle them. First evaluations and director can grind progress to but watch several board and most important, peer assessments will a halt, but not dealing meetings and you will be the CEO needs to be make it clear to bad direc- with millstones in the able to point out the ones able to tell directors tors that their behaviors boardroom can crush the who haven’t cracked open about their behavior and are being noticed and will very value of the board. the board book. This lack offer opportunities for not be tolerated. Those Directors should aspire of preparation wastes improvement, without evaluations can help to be the building blocks valuable time and dents fear of getting fired. cut loose a consistently for a strong foundation the effectiveness of the This can occur in an unprepared director. of company growth and entire board. executive session or via At the same time, an CEO support. • But one of the worst dysfunctional REVIEW YOUR BOARD behaviors on boards is when directors become more interested in Individual director reviews winning arguments could help root out % with rival directors problem directors, but not every company does them. 32 over doing what’s best Boards that perform for the company. The Corporate board review individual reviews of directors board ends up dividing policies of the Korn Ferry % Market Cap 100 68 itself into unproductive Boards with no factions. Instead of stated individual review policy solving problems, sidebar Source: Korn Ferry Market Cap 100, 2015 conversations degenerate into score settling. These

Issue No. 30 25 PATTERNS IN THE WORKPLACE A Problem Worth Losing Sleep Over

way down the list of done, right? But many here was a time priorities. studies show that when What we know about people routinely work very when the idea of this sleepless life is how long hours, fatigue and getting eight hours’ bad it is for our health. In mental fog set in and pro- T fact, one well-publicized ductivity per hour drops— sleep was, believe it or not, study by the University for all the hours, not just of Michigan dubbed it a the “extra” ones. So that’s an accepted part of life. “global sleep crisis,” while strike one against the some health experts put businesses that encourage Doctors recommended it. the issue right up there the extended labor, since with obesity and smok- they probably aren’t get- Executives practiced it. ing. Much is also being ting any extra value. This was, of course, a long, said about the dangers of drowsy driving. 2. Less strategic long time ago. But there’s another thinking kind of risk to sleepless- This is a big one. Both Nowadays you have to ness that barely gets any acute and chronic sleep attention. It’s the risk to deprivation cause losses ask yourself what success- the very companies that of higher and longer-term are driving all these exec- cognitive functioning. ful business leaders sleep utives to pull all-nighters. In business terms, Indeed, this is actually it’s strategic think- that long? (If they do, own kind of crisis, with ing diminishes. This they certainly wouldn’t billions of dollars at stake leads to more reactive, at major corporations and shorter-term thinking. brag about it.) Instead, the ultimate success at It means neglecting the smaller ones. Wake up! longer-term and wid- we all know the expected I’ve jotted down a few of er-perspective strategic the effects: thinking that provides routine of the 21st cen- significant added value in 1. Diminishing leadership roles. tury: exhausting hours on returns We see this in our planes, crack-of-dawn con- It isn’t the most dramatic own deep interviews result, but let’s think of executives: Often ference calls and midnight through the whole idea their thinking is simply of why we are putting in not as strategic or for- texts that shove sleeping extra hours. To get more ward-looking as their

26 Briefings On Talent & Leadership Signe Spencer is a client research partner at BY S I G N E Korn Ferry. SPENCER

jobs require. Taken to creates direct business extremes, the leader’s costs from excess churn in judgment can be The growing the executive suite. There impaired, or they will are also lost opportunities prioritize short-term during the changeover. work pressures over long- ranks of In addition, some of term health and personal our clients hear talented consequences, creating a sleep-deprived junior people express a permanent mind-set of reluctance to advance, short-term planning that saying to senior execu- hurts the business. executives pose tives, “I look at your life and I don’t want it.” 3. Negative impact little-noticed People assume that on the team’s “discretionary efforts” ability to perform risks to the on the part of success- The flattening of the ful employees means organization and years working more hours and of layoffs have left a lot financial health forgoing sleep. But that of firms with classic isn’t necessarily the case. type-A leaders focused on of companies. Discretionary effort can performance measures mean using your time and competition. When wisely, being fully “there” stressed and tired, this whole company grows as the crisis well, or every- when you are at work. group tends to follow a the subordinates’ value thing else gets dropped in It can mean making the pattern of overly directive diminishes—and the a hurry. Mishandled crises mental effort to prioritize leadership. (Directive is leader’s stress from can seriously damage, or your work strategically, the “do what I tell you, that grows. even destroy, the business. not just do whatever now!” style but with little comes across your desk. It context or explanation, 4. Loss of emer- 5. Executive can be taking the risk to and often with an irritable gency reserves turnover speak up and advance a tone). That style has value If leaders are already Lack of sleep can lead to new idea. And it extends in small doses and in a stretched to the burnout, serious health to outside the work- crisis, but overuse leads limit, there is no “emer- problems, strained family place—causing many to to subordinates fearing gency reserve” to call relationships and, in mull over work problems their leader and avoiding on when a real crisis extreme cases, a need to instead of relaxing. making decisions or occurs. The business then step away from the job. Put it all together and taking initiative. The has little spare execu- While this is a serious it’s enough to keep us domino effect on the tive capacity to address personal loss, it also awake at night. •

Issue No. 30 25 TRAINING GROUNDS The Gamification of Corporate Training

specific volume with to one study, the hen you teach a sheet secreted away. serious-games industry Scanning a barcode could will reach $5.4 billion graduate direct them to the next by 2020. Indeed, the courses, you question, which might Entertainment Software W require them to text a Association found learn quickly that research photo of a 300-year-old that 70 percent of cookbook, convert to major employers use tests are never popular. a PDF an obscure 1927 interactive software article in the New Yorker, and games for training. Assigned 10 challenging or listen to a speech by Such games are used to Amelia Earhart and fill in motivate employees to questions that required the missing words. acquire new skills, train hours in the library, my Turns out, gamifica- factory and warehouse tion works great on workers in safety, incent students rebelled. Some left students. And apparently employees to help improve employees like it just as massively complex questions blank or asked much. Companies that software products and train large volumes of nudge managers into for extensions. Others staff are rushing to use completing training games, in a variety of programs in the first place. didn’t bother to hand in forms. The goal is the Cisco, for example, same: turn a boring, has developed a simula- anything at all. The course repetitive and difficult tion program called evaluations were rotten. series of tasks into an myPlanNet, in which enjoyable, interesting players become CEOs Then I came up with the activity that gets better of service providers, results. Games provide while Canon’s repair idea to create a high-tech, intrinsic motivation— technicians learn their that is, people play trade, in part, by drag- gamified version of the test: them because they want ging and dropping to—as opposed to bribing components into their an interactive treasure hunt someone with a raise (an proper places on a virtual on smartphones. Students extrinsic motivation). copier. FedEx, as well as The so-called serious virtually every airline, still hit the library stacks, games business, spurred depends on simulators on by corporate training, to train pilots. Not to but now it was to find a is booming. According be outdone, UPS uses a

26 Briefings On Talent & Leadership Penenberg is a professor at New York University and author of “Play at Work: How Games Inspire Breakthrough BY ADAM Thinking.” PENENBERG

simulator with game-like applied the training to dopamine, a hormone in than those who do not. features to train drivers. the job. According to the brain that encourages They can also improve One “sim” even mimics Korn Ferry Hay Group us to explore and try new levels of competence. the experience of walk- benchmarks, only 63 things. Since we like the Perhaps most import- ing on ice. percent of employees feeling we get when our ant, games appeal to the The motives for believe that the training brains are awash in it, fastest-growing segment all this training are they receive helps them we’ll do whatever it takes of the working-age popu- fairly simple. In an age perform in their current to get more of it. lation—millennials, who with so many complex roles, and just over half Video and computer grew up on a steady diet regulations and detailed of employees (51 percent) games, as well as slot of video games. tasks, training matters believe that the training machines, are par- Of course, gamifi- more than ever before. they receive helps them ticularly good dopamine cation has limits. You

A game is a structured experience providing clear goals, a set of rules that induce players to overcome challenges.

It doesn’t take much for qualify for a better job. generators. Video games, can’t gamify your way ill-trained employees to This is where gamifi- in fact, uncork almost out of a crappy job. set operations back. Plus, cation can help, because double the levels of Somebody has to input all these games have a a game is, at its root, a dopamine experienced numbers into a spread- surprisingly great effect structured experience by humans at rest. It’s the sheet and work the on morale. One survey providing clear goals, a same system that drives customer-service help found that a whopping set of rules that induce compulsive gamblers and desk. Gamification can’t 92 percent of employees players or participants cocaine addicts—without make a subpar employee are more loyal to compa- to overcome challenges, the downside. Research a good one, nor can a nies that have invested in and instantaneous by the Office of Naval poorly designed game their training. feedback. Because they Research found that help your bottom line. Certainly, companies offer clearly articulated people who play video But it has been working need to improve how they rewards for each point games process informa- in my classroom, and, do it. A 24X7 Learning players score and new tion faster and have as a growing number of survey found that only level they achieve, they superior reasoning and companies are learning, 12 percent of learners trigger the release of problem-solving skills it can also work for them. •

Issue No. 30 27 28 COVER STORY

THE VERY HUMAN FUTURE OF WORK CEOs ARE BETTING TECHNOLOGY WILL RULE, BUT ARE THEY IGNORING THEIR MOST IMPORTANT ASSET?

our typical workday in 2030 may begin with the smell of bacon. You haven’t left the bed in your London home yet, but your implanted biochip told the appliances in the kitchen to start making breakfast (with extra crispy bacon, please). After you get dressed, the heads-up display embedded in your suit informs you the car taking you to the airport has arrived. While on the four-hour suborbital flight to Shanghai for a face-to-face meeting with a key client, you beam into a holoconference to talk with your Brazilian colleagues about a possible regional acquisition. After your Shanghai meeting, you fly back to London to be with your spouse for dinner, a stir-fry your smart kitchen started preparing the moment you landed. The technology to make all these things pos- sible is either here now or isn’t that far off. But how important are you, the human, in this whole picture? Maybe your client’s computer could have talked to your computer—or even your suit’s computer—without your ever having to leave your bed. Meanwhile, a software program could determine that a South American acquisition would be a money-losing proposition, and then inform your Brazilian colleagues. In a world where cars can drive themselves, hospitals can perform surgeries with robots and computers can negotiate corporate mergers with one another, do you really need humans to get work done? BY RUSSELL PEARLMAN, KAREN KANE AND HAZEL EUAN-SMITH ILLUSTRATIONS BY PETER CROWTHER

31 It’s a legitimate question. Since the 1980s the share of the U.S. economy devoted to labor has fallen precipitously, a trend seen across the world, particularly in devel- oped nations. Much of that decline can be attributed to businesses’ substituting workers with computers or other technolog- ical replacements, according to a study by valuable will University of Chicago economists Loukas that human Karabarbounis and Brent Neiman. And in talent be? 2013, Oxford University researchers Michael As part of a study commissioned by Korn Ferry, A. Osborne and Carl Benedikt Frey said that the Centre for Economic and Business Research, nearly half of U.S. jobs could be done by a leading British economic consultancy, reviewed machines within 20 years. the financial contribution workers make toward But as it turns out, there’s a strong and the economy, comparing it with other assets. The findings: Globally, human capital—people, labor, emerging case that the future of work knowledge—will be worth as much as $1.2 quadril- is going to involve humans. In fact, the lion over the next five years. In contrast, physical evidence suggests we’re indispensable. It’s capital—inventory, real estate and technology—will human talent, not capital or technology or be worth an estimated $521 trillion. Human talent anything else, that is the key factor linking and intelligence is 2.33 times more valuable than innovation, competitiveness and growth in everything else put together. The study spans eight the 21st century, says Klaus Schwab, founder countries, and each nation tells the same story (see and executive chairman of the World Eco- “The World’s Most Valuable Asset,” page 37). Even nomic Forum. Work, he says, shouldn’t be a in the United States, the home of Silicon Valley and race between humans and machines, but a the mantra “Innovate or Die,” human capital will be part of life that helps people recognize their worth $182 trillion more than physical capital. full potential. The study cites two reasons people outperform And, in a twist, experts say human talent even the most sophisticated technology: potential becomes only more valuable as technology and appreciation. An individual’s potential is not grows. It will be humans, not robots or arti- fixed—it can be influenced, enhanced and unleashed ficial intelligence software, who will brain- to the benefit of the organization. As people grow in storm new ideas, inspire others and drive knowledge, experience and seniority over time, they organizations to succeed. That’ll be the case bring even more value to the business. In contrast, on factory floors in Shenzhen, corporate machines typically operate at a limited maximum output and depreciate over time. boardrooms in London, clothing studios in Yet many of today’s business leaders suffer from Brooklyn and everywhere else there’s work a technology blind spot. Faced with increasing pres- to be done. “Computers are good at the jobs sure to generate increased performance and greater we find hard, and bad at doing the ones gains for shareholders, CEOs are attracted by tech- we find easy,” says Michael Priddis, CEO nology’s claims of greater performance, done faster of a soon-to-be launched AI research and and cheaper. In a separate Korn Ferry Institute study, development agency in Australia and former 800 leaders shared their views on people’s place in leader of Boston Consulting Group’s Asian the future of work. Two-thirds said that technology Digital Ventures practice. will create greater value than people will. Some busi- Briefings investigated the future of work ness leaders went even further; 44 percent said they from the ground up, from jobs that will believe the prevalence of robotics, automation and AI grow the fastest to the impact of technology will make people “largely irrelevant.” in the C-suite and boardroom. In each case, Perhaps those high figures shouldn’t be a surprise. machines will play supporting actors, but A listless global economy has leaders scrutinizing human talent still has the leading role. every asset to uncover new ways to boost perfor- mance. Plus, companies that appear to be successful “ASKING TECHNOLOGY TO DO ALL THE WORK AND EXCLUDING PEOPLE IS A

MISTAKE.” “Talent Trumps Tech” idea applies THE to the executive suites, too. Yes, the boss likely will be able to use thanks to technological innovations are getting technology to instantly get real-time data about rewarded in the marketplace. For example, the online the firm’s pipeline of sales, cash flows, threats from home-sharing site Airbnb has been around for less competitors, even the value of individual customers, than a decade and has fewer than 3,000 employees perhaps all from that previously mentioned heads-up worldwide. Yet Airbnb’s estimated valuation of display in a suit. At the same time, it will be easier for around $30 billion is about the same as its largest CEOs to get concrete business options from intel- bricks-and-mortar competitor, Marriott Interna- ligent software. These AI-infused programs can use tional, which has been around since 1927 and has current data and past experiences to identify trouble more than 100,000 employees. spots or opportunities and make recommendations And yet those valuations are masking a more to improve the business. universal truth: Technology alone likely won’t deliver However, no app or robot is going to make the the uplift in performance that organizations seek. final decision on what business strategy to pursue, or Smartphones, data-collecting industrial parts and other whether to open a new office in Austin or Amsterdam, innovations of the Digital Age are amazing, but none or whether to merge with a rival firm. “I’ll never say of them pack the productivity-boosting power of the never, but I can’t imagine CEOs giving up those deci- lightbulb or the telephone. Indeed, apart from a short sions,” says Nels Olson, vice chairman and co-leader burst between 1996 and 2004, the digital technology of Korn Ferry’s Board & CEO Services practice. “Artifi- revolution actually hasn’t boosted overall productivity. cial intelligence will be there to provide input.” “Asking technology to do all the work and Even if robots could make decisions in 2030, a excluding people is a mistake,” says Jean-Marc Laou- human workforce likely wouldn’t take orders from chez, global managing director of solutions for Korn them. The toughest future job for a CEO is one that’s Ferry Hay Group. “In the future of work, leaders must tough today: getting the most out of the workforce. recognize and capture the value of all their resources CEOs will have to motivate four distinct generations: to succeed.” Indeed, the Korn Ferry study found that Generation Xers, millennials, Generation Zs and, every dollar invested in human capital generated surprisingly, a large number of baby boomers. In the more than $11 in economic output. U.S. and many other countries, the workforce also Airbnb offers a strong example of what can will become more ethnically diverse. “Never have happen when people are enabled rather than replaced CEOs had to lead such a diverse group,” Olson says. by technology. The firm might have fewer than “You’ll have all those different generational issues, 3,000 people on the payroll, but it depends on tens of plus a machine weighing in. It will be the Wild West, thousands of creative, ambitious and talented human and agility will matter even more.” hosts to supply those 2 million rooms worldwide. At the same time, successful CEOs also will have Technology may connect hosts to potential guests, to be more transparent in their words and deeds but Airbnb has no business without the hosts. because the world’s information is at everyone’s CONTINUED ON PAGE 36 33 Baristas expected to know Nurse to detect faint signals in both air the terroir behind each coffee Future nurses will be valued for and water, tomorrow’s supply- one of their most traditional chain professionals will be as they brew? Mechanics with character traits: empathy. comfortable in a factory or a Intelligent machines may finance meeting as they are adept math degrees? Mapmaker give medical professionals at gleaning critical insights from as the hot job to have? information about diseases the troves of product, customer and diagnoses in real time, but and other digital data. “The We talked to a host of labor they lack any bedside manner. company recruiters that come That opens the doors for nurses to us are still looking for leaders pros, perused government to become empowered to to run an operations group or a analyze the new info and inform planning department,” says Bruce statistics and used our patients. “Nurses are perfectly Arntzen, executive director of placed to be the interface the supply chain management own Korn Ferry database between an artificial intelligence program at Massachusetts system and the patients and Institute of Technology. “But of 20 million jobs to see their families,” says Graeme they want leaders who can do what 2030 might hold. Codrington, founder of the the math—who are comfortable strategy firm TomorrowToday. swimming around inside a large database.”

See more details on future cool Barista jobs at kornferryinstitute.com Do you really a need a human to Cartographer/ serve you coffee in the morning? Photogrammetrist Some insist technology will It may be the biggest boom for automatically order and serve mapmakers since the discovery that mocha latte venti. But of the New World. The U.S. Aircraft Jacob Morgan, author and host Bureau of Labor Statistics Technician of the Future of Work podcast, predicts a 30 percent growth by Airline mechanics are most says the number of people who 2024 for cartographers and the often associated with dreaded appreciate artisan, handmade like, or four times faster than the flight delays, but keeping planes coffee is going to increase, broader job market. flightworthy and meeting and people want humans who Modern cartographers use government standards is going knows their beans. “We could data to help visually track to be a premium skill over the see the rise of the superbarista, disease outbreaks, identify coming years. someone like a sommelier,” traffic bottlenecks or model Soon every part of a major Morgan says. In a world getting a company’s orders from aircraft will have a relationship increasingly more complex, customers. Combine that with a major computer system, experts say there will be a large with the constant demand for says aviation industry expert group of java drinkers craving reliable, up-to-date maps on Mike Boyd of the consultancy the small, simple personal phone apps, and cartographers Boyd Group International. To touches a barista can provide. will be in demand for years interpret all the data, an aircraft to come. Photogrammetry mechanic will need to be as is a similar skill, taking handy with software code as he measurements of physical or she is with a wrench. “Instead Logistics Officer objects from film or radar of an aircraft tech getting hired By 2030, logistics and supply and creating mathematical from a Ford dealer, you’ll have chain professionals will resemble location models, a skill used in someone getting hired out of dolphins. Not physically. But just architecture, engineering and MIT,” Boyd says. as Flipper’s hearing is adapted even police detective work. 34

EVERY DOLLAR INVESTED IN HUMAN CAPITAL

fingertips. Bill George, senior fellow at Harvard Busi- ness School and onetime CEO of Medtronic, tells the GENERATED MORE Harvard Business Review that authenticity is key to connecting with all those disparate groups. “If people see their leaders as trustworthy and willing to learn, THAN $11 IN followers will respond very positively to requests for help in getting through difficult times,” George says. Finally, the future CEO needs to help that human ECONOMIC OUTPUT. workforce manage change. How people work is being altered not only by all the technological innovations, but also population demographics, the emerging global middle class, even climate change. Social AI can give corporate board members the infor- skills—such as persuasion, emotional intelligence mation and time they need to evaluate strategic deci- and teaching others—will be in higher demand sions and senior leadership. But being able to bring across industries than narrow technical skills, context to a company’s vision and mission remains a according to a survey of chief human resources offi- very human quality, says Thomas Davenport, a fellow cers by the World Economic Forum in 2015. Investing of the MIT Sloan Initiative on the Digital Economy in skills, rather than just hiring more workers, is the and a professor at Babson College. “Executives who key to successfully managing disruptions to the labor see the big picture are able to answer the critical market for the long term. Many leaders, although not questions that will guide their organizations’ future.” everyone, already understand that; 65 percent of the The humans on successful future boards will look CHROs surveyed said their CEOs are investing in an different than today’s group; they won’t be mostly effort to reskill employees. old white men, experts say. They won’t always meet in the same room at the same time to make deci- sions, either. The directors also will have different the company CEO will still be human skill sets to keep pace with the changes in business SO in 2030, but what about the board of competition, government, security and technology. directors? Board members who just use Tom Cheesewright, a futurist and author of “The anecdotal evidence and 30 years of gut experience to Applied Futurist’s Manifesto,” envisions board evaluate major decisions aren’t going to cut it in today’s directors taking on roles such as “agility coach,” a environment, says Warren Stippich, who advises director responsible for helping companies realign corporate boards as a partner in Advisory Services at to meet changing needs, and “technologist at large,” professional-services firm Grant Thornton LLP. In a director who alerts the board to the threats and many cases, adding an artificial-intelligence tool to opportunities of new technologies. the boardroom, Stippich says, could help synthesize However, while the composition of boards may the massive amounts of data board members are being change, a director’s core mission won’t. In a world of asked to review and help improve decision-making. hypercompetition and increased shareholder activism, Robots on the board isn’t that uncommon of a board directors have to provide good governance, says dream. In another World Economic Forum survey, Sarah Hewitt, an attorney who helps entrepreneurs nearly half of executives said that there will be an AI establish boards at their companies. “I hope people will appointed to a firm’s board of directors by 2025. Already, be more anxious to jump in and participate.” • IBM Corp. is using an algorithm to help its directors evaluate potential acquisition targets. (Big Blue hasn’t yet put a supercomputer on its corporate board.) Additional reporting by Shannon Sims and Christopher O’Dea. 36 THE WORLD’S MOST VALUABLE ASSET VALUE OF CAPITAL (IN TRILLIONS OF DOLLARS)

The value of human capital is significantly higher than that of physical assets across the world, even in nations such as China and India, where agriculture remains a significant part of the economy.

SOURCE: KORN FERRY

UNITED STATES Human Capital $244 UNITED KINGDOM CHINA Physical Capital $62 Human Capital $27 Human Capital $110 Ratio 3.92 Physical Capital $6 Physical Capital $49 Ratio 4.23 Ratio 2.23 FRANCE Human Capital $24 Physical Capital $8 Ratio 2.93 INDIA Human Capital $80 Physical Capital $48 BRAZIL Ratio 1.67 Human Capital $32 SOUTH AFRICA AUSTRALIA Physical Capital $13 Ratio 2.48 Human Capital $7 Human Capital $12 Physical Capital $4 Physical Capital $5 Ratio 1.77 Ratio 2.31 F R O M T H E VERY TOP

38 AN ALL-STAR TRIO OF CEOs —

FROM CARTIER, HERMÈS USA

AND KRUG—TELL US HOW THEY

ARE EVOLVING THE LUXURY SECTOR.

BY MICHAEL DISTEFANO & GLENN RIFKIN HEN CARTIER, THE LEGENDARY LUXURY JEWELER, CELEBRATED THE REOPENING OF ITS LAVISH MANHATTAN LOCATION LAST SEPTEMBER, IT PULLED OUT ALL THE STOPS. LONG RED CARPETS LINED FIFTH AVENUE AS CEO CYRILLE VIGNERON GREETED EACH GUEST, MANY OF WHOM WERE LOYAL CLIENTS AND CELEBRITIES FLOWN IN BY CARTIER.

For Cartier, this wasn’t just another retail according to a luxury market report from Bain store, it was the 170-year-old company’s illus- & Company. Some of the factors hurting the trious New York mansion. History has it that business have been tied to short-term events, such Pierre Cartier, the grandson of the company’s the terrorist attacks in Paris that slowed high-end founder, bought it from the wife of a railroad tourism in Europe. But a series of fundamental tycoon in exchange for a $1 million white pearl changes, from a sharp slowdown in the Chinese necklace she fancied. Now, nearly a century later, economy to the growing resentment against exu- French architect Thierry Despont has redesigned berant personal spending in the U.S., appears to the building and created a 44,000-square-foot be catching up on a once insulated business. retail space like no other—a breathtaking venue “The reality is that the market is consoli- befitting the globally admired brand. dating,” says Claudia D’Arpizio, a Milan-based Yet for the Paris-based purveyor of luxury partner at Bain and lead author of the luxury goods, the evening was as much about its storied study. And as it does, so does the need for past as its challenging future. To a surprising high-end purveyors to find new ways to stimulate degree, the luxury industry had managed to have demand. “Every brand needs to find a pattern of a resilient run despite the onrush of the digital innovation to really wow customers,” she says. world, relying on top, high-priced quality and But exactly how do the brands pull this personal, face-to-face service with well-heeled off, especially in an age when the Internet lets customers for whom money was no object. But newcomers in so easily? And what happens within the span of a year, this glitzy and glam- when younger customers want more luxury orous world found itself in new territory: a bit experiences instead of high-end goods? “That’s of a rut that appears longer lasting. As Vigneron a challenge for luxury brands,” says Grace Nida, himself puts it, “Most of the brands of Korn Ferry’s senior client partner the luxury world are facing a transition and managing director for the Global that is not so easy.” Luxury sector. “The traditional luxury Indeed, though still an enormous brands are fighting for customers’ dis- sector with $1.1 trillion in revenues, See our multipart cretionary income.” the worldwide market for personal video series with In the end, as with any industry in the CEOs of Cartier, luxury goods, from jewelry to fashion to Krug and Hermès transition, the challenges ultimately fall hospitality, has softened dramatically. USA, interviewed by into the hands of CEOs, who must help Michael Distefano, Over a 20-year run into this century, the Korn Ferry’s senior design and oversee a response. We talked industry had enjoyed an average annual vice president and to three of the biggest in luxury you chief marketing could ask for, to hear their stories and growth of nearly 6 percent. But last year officer, and Melanie it hit negative ground, falling 1 percent, Kusin, vice chairman their take on what luxury really needs. of the firm’s CEO & Board Services practice.

kornferryinstitute.com

LUXURY’S LEADERS

CYRILLE VIGNERON Joined Cartier in 1988. CYRILLE Been a lifer there all but two years. One profile suggested Vigneron has VIGNERON CEO, CARTIER “the air of the cleverest boy in the class.” An urbane French national, he is also a hen Cyrille Vigneron was Acknowledging the power of devotee of Japanese named CEO of Cartier the Internet and e-commerce, he culture. in January 2016, his points out that the world is so fast- excitementW at landing the top spot at paced with change that brands risk ROBERT the iconic luxury brand was tempered becoming “a bit too neutral, too quiet” CHAVEZ by stark market realities. Few brands and not distinctive and local enough. are as iconic and respected, but the Leading in this environment is a Born and raised 54-year-old knew he needed to spark challenge, and Vigneron is traveling in San Antonio, the brand from a global perspective. around the world to meet with Texas. The son of He set out to better understand Cartier employees and spread the two first-generation the regional and global implications brand gospel. He does town hall Latin American of a shrinking planet, where exclusive meetings at every venue, where no immigrants. At 17, shopping districts, from New York to question is taboo. “You have to grow attended Princeton. Paris to Hong Kong, were becoming from within,” he states. “People must Credits his teachers far too similar and far less exciting to understand deeply the esthetic codes and multicultural customers. “We want to learn what is of a brand and the maison, and how to roots. “For me, the specific to each city,” Vigneron says. constantly reinvent that.” most important thing “What makes that city special and For mature brands like Cartier, about being a leader what should we find there that we part of the challenge is to attract in a luxury company don’t find in other places, even with younger customers such as is being present and the brand we know?” millennials. Vigneron believes the staying close with A strong advocate of physical answer isn’t to design products Hermès employees retail space, Vigneron is banking on specifically for a certain age group, but every day.” refurbishing the company’s iconic to allow each generation to find the “maisons” such as Fifth Avenue, as value and beauty in these objects of MARGARETH well as its flagship location on Paris’s timeless art. “It’s like classical music,” HENRIQUEZ Champs-Élysées and in Tokyo, Seoul he says. “At the beginning they may and London. He wants each location find it boring, but when they start to A native of Venezuela. to build off Cartier’s signature brand like it and feel its emotion, it will stay As a Hispanic woman attributes, offering a specific allure to with them forever.” in a global business both local luxury shoppers and well- world, says she knew to-do tourists. she had to travel to fulfill her dreams. In all, she has spent two decades as president or CEO of multinational companies. Gets inspiration by riding her bike through the streets of Paris. “People must understand deeply the esthetic codes of a brand and the maison, and how to constantly reinvent that.” “People must understand deeply the esthetic codes of a brand and the maison, and how to constantly reinvent that.”

43 ROBERT CH AVEZ PRESIDENT AND CEO, HERMÈS USA

mid the industry’s recent Champagne or watches, there is standing Hermès men’s store in the struggle, Hermès has a recognition at Hermès that in world along with the first Hermès remained a success as a globally interconnected world, perfumery, both in New York. And Aradiant as its lovely scarves, with comfort in the status quo is a losing he forged a partnership with Apple sales in the first half of 2016 up strategy. According to Chavez, to produce an Apple watch with 7 percent. Robert Chavez, president “There is a deep curiosity by the Hermès watchbands, a collabora- and CEO of Hermès USA, believes family and the company to always tion that had customers waiting it comes from a corporate philos- find newness, something different, in line outside Hermès’s Madison ophy that emanated from family not resting on our laurels but Avenue boutique when the watch control of the company’s entire always pushing the envelope.” went on sale. 180-year history. To that end, Chavez has made “It was a way for both compa- Though most luxury brands some bold moves that have helped nies to really push into the next are focused on classic, traditional fuel Hermès’s success in the U.S. level of innovation,” Chavez says. styles and designs, whether for He opened the first and only free- Indeed, Hermès is ranked No. 32 “Our philosophy has always been that less is more in every way, shape and form.”

on the Forbes list of the 100 most accessories, the Princeton-educated States. Under his watch, Hermès innovative companies in the world. Chavez was shocked when he was now has 28 U.S. retail locations— “Retailing is changing so quickly offered a chance to become the U.S. not many compared to large retail today, you have to be on your toes,” president and CEO of Hermès, one chains, but the right number to he says. of the world’s iconic luxury brands. retain the allure and mystique of When Chavez was a boy growing “One thing led to another and the Hermès brand in one of its key up in San Antonio, Texas, he could I found myself in Paris, and the markets. never have dreamed of a career path next thing I knew, they offered me “Our philosophy has always that would lead him from Texas to the position. I couldn’t believe it,” been that less is more in every the haute couture of New York and Chavez recalls. way, shape and form,” Chavez says. Paris. Even after successful stints at That was in 2000. Over the next “Twenty-eight stores is not a lot in Bloomingdale’s and Macy’s, and as 17 years, Chavez would spearhead a country with 350 million people, CEO of Etienne Aigner, a producer dramatic growth and innovation but the strategy has worked very of moderately priced footwear and for the luxury goods maker in the well for us.” MARGARETH HENRIQUEZ PRESIDENT AND CEO, KRUG CHAMPAGNE

46 t first, Margareth Henriquez best. What was needed was luxury thought she had the communication—a new and potent problem well in hand. Sure, connection to Krug’s devoted cus- Athe company she had taken over as tomers. So, in 2011, Henriquez launched president and CEO, Krug Champagne, the Krug Lovers program, using its was struggling badly in the midst of website to create a platform for stories a deep industry decline in 2009. But and inspiration about Krug. The Krug the executive, known to all as Maggie, Ambassades network includes 150 figured on a quick turnaround. After ambassadors—noted chefs and somme- all, she had managed some stiff liers who help promote the brand. corporate challenges both at Seagram As part of this effort, Krug and Moët Hennessy’s Chandon brand. embraced the idea that music and “I thought this was going to be Champagne are deeply connected, and easy,” Henriquez recalls. “I thought, music appears to have a significant ‘We can turn this around fast because impact on the enjoyment of drinking it’s a small house.’ ” But within a year, Champagne. Based on research done with Krug’s results no better, she had at Oxford University’s Crossmodal learned her first lesson: “Never under- Research Lab, Krug has invited musi- estimate the problem,” she says. cians such as violinist Joshua Bell and British vocalist Beardyman to Luxury is not simply a higher price extensive tastings. She requested point but a “real, living being.” playlists inspired by what they tasted. Her response from there was to At the same time, Henriquez ini- learn what luxury was all about. tiated the Krug ID program, in which Ruminating in her office at Krug head- every bottle of Krug Champagne has quarters in Reims, the commercial a six-digit number on its back label center of France’s Champagne prov- designed to tell the story of that ince, Henriquez realized that luxury bottle. Sommeliers, collectors and is not simply a higher price point but customers alike can not only learn a “real, living being,” and in order about the wines and vintages, to understand that living being she but also get a playlist geared for would need to learn about the compa- drinking the Champagne. ny’s founder, Joseph Krug. She came To be sure, Krug would be across his personal notebook that helped by an industry revival had been locked away for a century— in Champagne, but Hen- which helped her launch a two-year riquez’s unique effort clearly odyssey to marry the founder’s vision helped orchestrate the com- with the modern-day brand. “Today I pany’s return to stardom; know Joseph Krug better than my own it’s now ranked No. 6 on father,” she says, smiling. Drinks International mag- The problem wasn’t in the produc- azine’s list of best-selling tion. Krug Grand Cuvée Champagne, Champagnes for 2016. “We a blend of more than 120 wines from are having the best year in 10 or more different vintages, has long the history of the house,” been considered among the world’s Henriquez says. • Brazil: Booming, Busting ... How this beloved country manages turmoil to keep up its talent pipeline.

Booming, Busting ... and Now?

by SHANNON SIMS

was mid-2015 and Sid Ramtri was hitting one of those career crossroads. Then almost 30 years old, he had checked off the right boxes: a position working in the It Houston energy scene, a researching stint at Goldman Sachs in New York, an MBA degree in Europe. Now, scanning the globe, he considered his next home base—and went with as unlikely a choice as you could imagine: Brazil. “Unlikely” because for two years the country had been choking beneath a seemingly never-ending political crisis, with corruption scandal after corruption scandal as well a presidential impeach- ment. Street protests had become regular Sunday fare in the country’s major cities. Economically, a crushing recession was evaporating the job market, which sent many foreign executives who had hoped for great opportunities fleeing. Indeed, by the time Ramtri arrived in the first half of 2016, foreign worker permits had dropped more than 20 percent from the year before. Even more tellingly, out of 45 countries in a 2016 HSBC survey of favorite destinations for expat workers, Brazil placed dead last. But Ramtri, who had been practicing Portuguese and had done some con- sulting work in South America, wasn’t deterred. “Contrary to a lot of the advice I received,” he says, “I decided to go ahead and still cast my lot in with Brazil.”

“I didn’t come here because it was booming, but because it was a challenge.” BRAZIL

Maybe he was on to some- thing. Brazil’s present situation may still be a long way from anything someone might call a “turnaround.” But whether it is an uptick in consumer confidence some ways, Brazil weakening currency, runaway reports or robust numbers from has always held a inflation and downgrading of the manufacturing sector, a quirky station in the country’s investment grade variety of economic indicators the global business status. In all, it would become give reason for cautious opti- In market. It’s often one of the swifter shifts in a mism. These days, business labeled an emerging economy— major country’s fortunes in leaders in Brazil are optimistic the B of the famous BRIC coun- recent memory, with its GNP that the dust from the past sum- tries (alongside Russia, India and falling into negative territory by mer’s political unrest and presi- China). But with its enormous 2014. And, no, not even hosting dential impeachment is settling. land and coastal mass yielding a the 2016 Olympics could help. Harvard Business School pro- host of rich commodities, from Not surprisingly, the acute- fessor Tarun Khanna, a renowned oil to iron ore to soy beans, the ness of this collapse had a direct authority on emerging market country has been a hotbed for impact on a talent pool that had countries, tells us that busi- multinational companies for come to Brazil hoping for the best ness-wise, this may be “one of the more than a century, dating of both worlds—surfing before better times” to come to a country back to the days when Henry work and living in a hot job like Brazil. It’s a view shared by Ford hacked his way through market. Now it was a nightmare Dominique Virchaux, president of the Amazon jungle in search of for those who had invested their Korn Ferry South America. “We’re rubber trees. Brazil’s economic lives there. “The crisis spared no seeing signs of a turnaround,” he fortunes have meant that Brazil one,” Grover Calderon, president says. “Two-thousand seventeen is has maintained a steadily of the National Association of going to be a key year to see how growing gross national product Foreigners and Immigrants in much happens.” rate, attracting both large com- Brazil, told a local newspaper. Still, as the country tries to panies and start-up investment. “Not even the very qualified move from kneeling to standing, But boom times have never foreigners [were spared]. Many Brazil’s rapidly changing for- come easy for Brazil. This is a of them lost their jobs because tunes—booming, busting and country where economic growth their companies were in hard now trying to recover in two to was long stalled by staggering financial situations.” Indeed, in three years—has left hundreds of import limits, a byzantine tax expat circles, despedidas—Bra- CEOs there asking the same per- system and more than its share zilian going-away parties—were gunta: How do today’s business of political instability. Somewhat getting double-booked by fleeing leaders best attract talent in such quite suddenly, the bottom began foreigners. Korn Ferry’s vice a climate? It’s a question that to fall out about three years ago chairman for South America, bugs CEOs all around the world, when its popularly elected pres- Sergio Averbach, says that it is in countries where volatility is ident, Dilma Rousseff, became hard to overestimate how bad more the norm than stability. embroiled in a corruption things were. “I have been working When global conditions turn scandal that spooked foreign in this profession for 25 years,” stormy, how do you protect the investors. A chain of economic he says, “and I have never seen a talent pipeline? events followed, including crisis as deep as this one.”

CONTINUED ON PAGE 54

51 ON THE REBOUND

other countries, like Brazil, that learned to endure swaying fortunes:

THAILAND

BOOM 1987 – 1996 Fueled by a surge in manufacturing, the country’s economy grew 9.1 percent per year on average.

BUST 1997 The Thai baht plummeted and the country’s market crashed 70 percent, creating financial woes throughout Asia. SOUTH KOREA

BOOM 1986 – 1996 With government backing, banks funneled money into select manufacturing firms, creating a global powerhouse.

BUST 1997 It worked, until it didn’t. Neighboring recessions crushed the banks, requiring $57 billion in foreign aid. HUNGARY

BOOM 1989 – 2007 The country transitioned from communism to capitalism relatively easily and confidently took on debt to spur spending. BUST 2008 A plummet in the Hungarian forint left the country unable to pay its debts. The economy contracted 6.8 percent and Hungary became the first EU nation to receive bailout money.

ICELAND

BOOM 2000 – 2007 Banks were liberalized, spawning a boom in assets and a 40 percent jump in stock prices, on average, for seven years.

BUST 2008 The world financial crisis crushed three banks that accounted for 85 percent of commercial bank assets. UnEmployment hit 9 percent in 2009. UNITED STATES

BOOM 2001 – 2007 Average home prices rose more than 40 percent, and banks, investors and homeowners made increasingly risky financial bets that the surge would never stop.

BUST 2008 The U.S. housing bubble’s bursting wiped out the finances of millions of Americans, contributed to the Great Recession and nearly took down the entire global financial system. BRAZIL

Macagno says back in 2012, business in Brazil is the ability to when he first arrived in Brazil, adapt to the country’s business wealth was all over the place, culture, which puts a high value and he says he saw that that on relationships. He notes, for kind of scenario “tends to create example, that he quickly learned as the a lot of fat and unproductivity to devote the first few minutes cliché in your business.” He sees of meetings to people’s family goes, that changing now during the issues or local soccer games where hard times, creating stronger “because that will actually bump BUT there companies. He even sees how it up the productivity of the whole is despair there is hope. Meet has strengthened his own career. meeting.” Brazilians, he says, Luciano Macagno, 38 years old “I didn’t come here because it “know how to be successful.” and the Brazil country director was booming but because it For his part, Korn Ferry’s of Delta Airlines. A rising star was a challenge,” he recalls. “It Virchaux says the country’s in his field, he came to Brazil was easy to be successful in the long rollercoaster past has the and found himself at the helm boom times, but for the ones advantage of empowering the of a major multinational’s who are successful right now, local ranks. “Brazilian executives Brazil office during the deep this is the ultimate chance to have lived through long periods recesses of the hard times. But swim with sharks.” of volatility,” he says. “They had Macagno actually views those Macagno, an Argentinian, to adapt fast.” difficult years with optimism. says the key to success in One adaptation: Attracting Post-boom periods may be a better time to come to a country, says one Harvard Business School professor.

and a willingness to navigate this country is too difficult; the unpredictable situations. United States is so much more comfortable.” Still, while knowing swaying he is swimming upstream, Ramtri fortunes thinks that Brazil can make for of Brazil, a “comfortable introduction” to of course, emerging market economies. The offer some He says companies are looking important lessons on how to pivot for talent, and that the talent in the world of emerging markets. drain of the past has created Having tracked such countries for opportunities, particularly for years, Harvard’s Khanna cautions upper management. “Depending managers not to overpromise on the professional perspective the future to candidates. “That of what kind of platform backfires,” he says. But he also you come in with, you could foreigners while still cutting sees a silver lining in economic actually position yourself into costs in belt-tightening times. turmoil. “The trickier time to an opportunity in the midst of a That’s possible, some HR pros weigh a move to an emerging crisis here in Brazil.” say, by recruiting foreign workers market is when everyone is Is he right? There is no who are either single or whose tripping over each other and shortage of wide-ranging children have already grown, going crazy about how exuberant predictions for a country as thus avoiding offering pricey things will be. In those settings, unpredictable as Brazil. Matthew child care or full family health- expectations are inflated, Taylor, adjunct senior fellow for care packages. managers are a bit too ‘rah-rah’ Latin America Studies at the And when we talk about and prone to overcommit, and Council on Foreign Relations, foreign workers moving to people make statements to says that while he is cautiously Brazil, we’re mostly talking stakeholders that end up being optimistic about Brazil’s about Americans: The U.S. sends foolhardy.” Rather than seeing the economy in the long term, “I almost double the number of boom times as the best time to think the short term is going to workers to Brazil compared make a move, he says that times be tumultuous.” Still, it’s worth with any other country. So like now in Brazil, for example, “is noting that already by the late fall the key to bringing talent one of the better times.” of last year, the São Paulo stock back to Brazil really hinges That’s how Ramtri, now based market had returned to its 2012 on bringing American talent in São Paulo, sees it. He says he levels. “The macroeconomics are back to Brazil. Averbach says still gets peppered with the same positive,” says Averbach. “But in that calls for looking for talent list of questions: “Why are you Brazil, you never know what can with deep-seated flexibility here? It doesn’t make sense … happen next week.” •

55 BeeLESSONS They may

be facing a

worldwide LESSONS decline, but bees

can still

teach us a

lot about

leadership.

STORY By

Patricia Crisafulli

BeeLESSONS

momentous decision hangs in the balance: where to move the entire organization. Diverse opinions are aired and all options aevaluated intensely. Finally, a decision is made— not by fiat or majority vote. Everyone agrees, eliminating dissension. This could be, of course, a lean tech company whose efficiency would make any start-up owner proud. Or a flat organization that steadfastly refuses to follow any hierarchy to foster creativity. Actually, it’s a scene that takes place among critters that humans have both feared and loved for centuries: the humble honeybee. The insect, which fosters a $15 billion pollination industry, has probably gained most attention in recent years for a mysterious decline in population. Indeed, since the mid-2000s, beekeepers have reported sudden disappearances and disturbing shortages of honeybee colonies. But while researchers work hard to figure out the problem, research on bee behavior has grown only more

59 sophisticated. And by all accounts, it isn’t something to swat away; these little stingers can offer some surprising leadership lessons. “Everybody is on the same page in a honeybee society. They are all rowing for the same team,” says Gene Robinson, Ph.D., who leads genomic biology research at the University of Illinois at Urba- na-Champaign as the director of the Carl R. Woese Institute for Genomic Biology and its bee research facility. “Honeybees all have a shared stake in the hive. How does one engender those same feel- ings among the members of a human organization?”

own research on bees discovers that Only a few hundred or so of the honeybees are OUR while most people might think the visible, most of them clustered around the entrances world’s bee capital would be in some tropical forest, and exits of the human-made wooden hives, the size it’s actually in Bruce, South Dakota (human popu- and shape of a two-drawer filing cabinet. Reader fits lation: 204). There, Adee Honey Farms, the world’s each hive with thin pieces of wood that restrict the largest honey producer, boasts more than 82,000 area through which bees can enter and exit. These honeybee hives that produce four million to five “entrance reducers” help winterize the hive while million pounds of the sweet substance each year. But keeping out insect intruders. As he toils, many of you can find much more modest beekeepers, the kind the bees returning to the hives are carrying yellow who oversee a handful of hives, almost anywhere; patches of pollen on their rear legs, like saddlebags of indeed, it’s the hobbyists who make up the majority supplies to sustain honey production. of the 115,000 to 125,000 beekeepers in the U.S., It’s about now that one of our leadership lessons according to the National Honey Board. emerges: The importance of purpose. The honeybee One of them is Jeff Reader, an affable, soft-spoken is iconic for productivity—consider the cliché “busy man who tends about 35 beehives in Illinois. A as a bee.” And while not widely appreciated, the paramedic by profession, Reader has kept bees since payoff for that hard work will be enjoyed only by the back-to-nature days of the 1970s. His operation, the next generation (and the humans who harvest a Reader’s Apiaries, does a brisk trade at local farmers’ portion of the honey). “Their work will help the new markets, selling honey and honey-fruit spreads. bees survive,” says Reader. “Their purpose is all about On an overcast fall day, Reader took three the next generation.” brimmed hats draped with netting from the back As Reader packs up his tools and surveys the of his van. “It’s a good day to visit the bees,” he tells hives, he contemplates the balance between the us. “It’s cloudy and cool, so the bees aren’t likely to individual and the team: “The colony needs each bee, be too aggressive.” That is good news—given that and a single bee, itself, will die without the colony.” between 30,000 and 50,000 bees live in each of the He takes this lesson into his work in emergency dozen hives at this wooded location, off the beaten medical services, including for events at the United path at a nature center near Schaumburg, about 30 Center. Doing his job well means keeping others safe miles from Chicago. and healthy.

60 Bees encourage the full expressions of ideas, determine the best

and work toward full buy-in. we are on our way to the missing. That absence triggers young bees to step Next University of Illinois at Urba- up their own development to fill the gap. na-Champaign. Beyond the barren cornfields, on The most fascinating type of bee communi- a gravel road past grazing cows, is the school’s bee cation is so-called “waggle dancing,” which was research facility. As a single bee flies figure-eights first documented by Austrian zoologist and Nobel overhead, Robinson explains his 40-year fascina- laureate Karl von Frisch. As he observed, bees use tion with these tiny creatures. “Bees are not little the honeycomb as a kind of dance floor to act out a people, and people are not big bees; series of movements to communi- we have a lot more complexity. But cate such information as the direc- we can learn a lot by looking at and Everybody tion and distance of a food source. learning from nature.” There’s no competition among the The primary lesson from bee is on the foragers; rather, shared informa- society is the power of the decen- tion means cohesion and a better tralized hive. While there is a queen, same page in chance for the group to survive. she’s no command-and-control Nowhere is that democratic leader. Bees all have specific jobs, power displayed more profoundly from foraging for pollen and nectar a honeybee than when it’s time to swarm, a to tending the eggs laid by the behavior observable among bees queen. But all operate in an inter- society. in the wild. When a colony gets dependent ecosystem that requires big enough and strong enough to information to be disseminated broadly, in complex split, one group of bees leaves with the old queen, and interactive ways. For example, University of while a new queen stays in the original hive with Illinois researchers found that about 20 percent of the remainder. the foragers in the hive account for about 50 percent First, the departing swarm takes off for an of the foraging. If these elite foragers are removed, interim place, such as a nearby tree. Then a small that information hits the hive like a news flash. number of scouts (fewer than 5 percent of the Suddenly the pheromones (essentially a chemical swarm) fly off in all directions in search of potential perfume) emitted by these superforagers are sites for a new hive: a hollow tree, a chimney, the

Bee-haviors FOR A SUCCESSFUL HIVE Information in the Air

Here are some Pheromones, a kind of chemical perfume, are used to spread information quickly across the of the keys to hive. A reduction in certain pheromones may signal a shortage of foragers, for example, bee society encouraging the development of more. and habits. The Decentralized Hive

While there is a queen, this egg-laying matriarch is no command- and-control leader. Bees live and work in a decentralized society, in which information is disseminated broadly. space between two walls or another enclosed cavity. more than one million hives to be Returning to the group, the scout bees communi- brought in each year from as far cate their site assessments through waggle dances. away as Maine. One after the other the scouts waggle their bodies, But the honeybee is in with the longer and more vigorous dances given trouble. Populations declined Bee Watching for the more favorable sites. Soon, all the swarm is mysteriously in the mid-2000s, Watch video of our visit with a beekeeper and buzzing in favor of one location, and off they fly to when honey-producing bee col- leading researcher. their new home. onies dropped below 2.5 million kornferryinstitute.com “They play out in the marketplace of ideas so from a peak of about 3.5 million that one emerges as the winner. That’s the process in 1989. About 2.7 million colonies were reported of consensus building in a beehive,” Robinson in 2015, according to published statistics. The explains, adding there is an obvious parallel for beekeeping industry blames “colony collapse dis- human organizations: encourage the full expres- order,” which threatens the health of the insects, sion of ideas, determine the best, and work toward as well as commercial beekeeping and pollination full buy-in. operations in the U.S. The causes of the decline As bee researcher Thomas D. Seeley, Ph.D., remain unknown, although diseases and parasites wrote in his book “Honeybee Democracy”: “These that weaken the bees are thought to be contrib- little six-legged beauties have something to teach uting factors. us about building smoothly functioning groups, For his part, Robinson is dedicated to helping especially ones capable of exploiting the power of protect honeybees from the “4 P’s”: pesticides, democratic decision making.” parasites, pathogens and poor nutrition. Among the Yet many people overlook the humble honeybee, culprits are urbanization that turns open fields into Robinson believes, because their efforts are indi- malls and housing developments, and mechanized rect. Apples obviously come from apple trees, but farming that reduces flowering weeds. Although bees must pollinate the apple blossoms. It’s a fact honeybees are not endangered, the threat to their well appreciated by farmers who grow crops from numbers is a serious problem that scientists and avocados to zucchini. California’s almond crop, for agriculturists take seriously. Humans can help, as example, is totally dependent on bees, requiring Robinson suggests: “Plant more flowers.” •

Waggle Dancing

Bees communicate using a kind of symbolic, movement-related language—specifically “waggle dancing.” It’s used, for example, to map the location of new food sources, setting direction and distance. Navigation by Sight and Democratic Sun Decision-Making

When making new hives, waggle dancing also serves Bees navigate by the sun, researchers found, to “debate” the best new location. Scouting bees, while relying on memorized landmarks and which are responsible for investigating sites, waggle distances. As a result, though less than an inch dance to the swarm, with the most vigorous dances long, bees can travel up to six miles. attracting enough support to build a consensus. explore. restore. repeat.

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Locks of Leadership How Top Bosses Wear Hair

BY MEGHAN WALSH

t’s the first detail people take in, even before the tailored Isuit and smiling handshake. Whether kept on a close leash or given room to grow, left to blow in the wind or held in place with Göt2B Ultra Glued Invincible Styling Gel, a single luscious—or misplaced—lock reveals personality, values and, for the leader, ability. Except for executive women. Her cut, of course, isn’t about her but society’s impossible expectations. Either way, never underestimate the power of the do. It’s not the suit that makes the executive. It’s the hair.

Issue No. 30 65 DOWNTIME

2 3 1 4

Maybe it’s the infusion of young blood, but for the first time, perhaps in history, CEOs are straying from the tried-and-true tapered side part. Dan Price, the CEO who made headlines slashing his salary at Gravity Payments, inspires envy from men and women alike with his shoulder-length chestnut tresses. Marc Benioff, founder of Salesforce, hasn’t just revived the slick-back,

he’s joined the growing number of beards in the C-suite. Research shows appearance influences boardroom. And of course no conversation about how women leaders are perceived, so they often hair is complete without mention of billionaire opt for a neutral look. In a study funded by Sir Richard Branson’s bleached-out surfer look. Procter & Gamble in the early 2000s, Yale psy- Rather than opting for a wash-and-wear, chology professor Marianne LaFrance, Ph.D., more business leaders are experimenting with found: “Within seconds of meeting you, people barber cuts that require TLC. “Eight years ago begin forming a first impression about the type you did not see CEOs spending time in the of person you are; and it’s not your face that morning grooming themselves,” says Genevieve gives you away, it’s your hairstyle.” Strazisar, a stylist at Ted Gibson salon in New Thus, the bob. More than half of female York City, known to serve society’s elite. But Fortune 500 CEOs wore a version of it last year. all top execs, regardless of style, she says, stay You can curl the ends, like Hewlett Packard’s cleaned up, scheduling trims every two to three Meg Whitman, or push the boundaries à la GM’s weeks, which isn’t cheap. Strazisar estimates a Mary Barra by adding a few layers, but the look typical men’s cut runs about $200, compared should include a modest side part and stay above to the national average of about $14. Once they the collarbone. Blond continues to dominate: find a stylist, they don’t stray either, especially While only 5 percent of white people in the as they move up the chain. “Your cut communi- United States are naturally blond, almost 50 per- cates consistency and stability,” Strazisar says. cent of female CEOs at S&P 500 companies are, For women, though, hair is yet another according to research presented at the Academy

obstacle to navigate on the parlous path to the of Management earlier this year. Artwork by: Kyprianou Peter

66 Briefings On Talent & Leadership The Power Dos: Silver Slick-Back 1 This one pushes the limit when it comes to length and is one of the few cuts that involve using product. But those bold enough to sport it often hear another name: Silver Fox.

Businessman’s Cut 2 Ubiquitous in the boardroom, it’s conservative, inconspicuous and low- maintenance. Slight taper along the sides, with 5 the top left long enough to part. But some grow 6 it too long, in a misguided search for volume.

Bald Power 3Few men at the top shave it all off. Instead they leave a hedge around the sides or buzz it very close, a far more dignified look than the thinning comb-over. Denial is not a good look for the head of a company.

Burr 4Common among business leaders, with this cut the hair is all the same length, usually one-eighth inch or shorter. Easy to get up and go in the morning, but can require once-a- 7 week barber trips. Renegade 5Must be a tan, blond self-made billionaire “Your cut to pull off—and have a charming smile.

communicates One and Only consistency 6If you are a woman in power there is a very good chance you have a modestly layered and stability.” bob with a conservative side part and gentle blond color.

Adding to the pressure is social media. One and Only Digital impressions are generally cut off at the with a Twist shoulders. And a hundred flattering pictures 7 While the bob is the standard, there are can be erased by one bad hair day. “Image is like micromanagement; it’s putting together many variations of it. Some try layered bangs, a puzzle with thousands of pieces,” says Sylvie others curl the ends or sweep it behind the di Giusto, an executive image consultant. ears. One CEO even wears a headband. “Unfortunately though, people never notice when you are doing things right. They notice when it goes wrong.” •

Issue No. 30 67 68 DOWNTIME Briefings On Talent &Leadership Talent On T into neurofeedback. journeythe mind? Our use adevice to calm What executive couldn’t iMeditate the metrics, indicators other and feedback yourself. For the benefits all of escaping yourself …well, that is you’re alone with confusion. and under awave disappearing fast of anxiety Am Idoing this right? accepting your thoughts. Here comes one: seem calm. is so big. This forare, or how instance, your problems don’t breaths your nervous and shallow how day: you’d race your through the usual in miss BY DAVID BERREBY DAVID BY The thing about thing being aloneThe with Uh-oh. You’re focus. and Goodbye, calm You touch in getting are yourself, with just notice aspects of body and soul that notice of body soul and that aspects you and untroubled, are Your thoughts quietly. breathing youhere sit,

train brains. Interaxon’s Muse (right) aim to (above) and Insight Emotiv’s Mind Control GADGETS

that normally pound at you, having no feedback at all produce a portrait of activity throughout your brain. can leave you wondering whether you’re just fooling Emotiv emphasizes that you can also use the headset, yourself. A meditation teacher could help, but disap- combined with machine-learning algorithms, to train pearing into an ashram or a monastery isn’t an option yourself to move a remote-control car, fly a drone, play for most, especially for high-powered executives. a game or interact in a virtual reality setting. But it turns out that there are some fascinating My own interest in these devices isn’t so bleeding new options to becoming your own guru. A conver- edge; I was interested in how neurofeedback could teach gence of technical advances has spawned an industry me a highly personalized and scientific method of medi- of relatively inexpensive devices that use electroen- tation. So I acquired Interaxon’s dedicated seven-sensor cephalograph (EEG) to help people train their minds to do everything from concentrate better to control pain or de-stress. It’s a far cry from the days when EEGs With the right involved big computers and hundreds of electrodes placed on the scalp, which essentially confined neuro- technology, the mind feedback to laboratories, clinics and hospitals instead of your own home—or office. The new devices are so can be its own guru. simple they’re linked to laptops or even smartphones. One of the first companies to launch a home EEG meditation-training headset, the Muse, which you can product was NeuroSky. You can get one of their head- pick up for about $250. The headband pairs over Blue- sets, and three apps that work with its data, in a $99 tooth with a smartphone app and begins by taking some kit. The set picks up brainwaves with a single sensor, baseline EEG measurements. After that, an instructor’s located on the forehead (a typical lab EEG has 256). pleasant voice sets you up for a closed-eye meditation With a wireless connection to a computer, the device session in which you focus attention on your breathing. will show the waxing and waning of the five types of As the minutes go by, the app translates the EEG brainwaves—alpha, beta, delta, gamma and theta. To signals into a soundscape (I picked a desert, after make the data useful, scores of apps are available, not trying seaside and city). Things get noisy if you’re dis- only for meditation but for other neurofeedback uses, tracted and quiet when you’re correctly concentrating. top: John Lund/Getty Images; bottom left: EMOTIV Inc. such as managing chronic pain or developing focus. If you stay in the zone of quiet attention, you hear the Similar setups, at similar prices, are on offer from faint tweetings and chirpings of imaginary birds. After other companies—for example, the FocusBand EEG the session is complete, you can look at a line graph Photography: headset (which has three sensors) and the PLX XWave, that describes your trajectory over three possible which offers “medical-grade EEG” starting at $90. states of mind: wandering, resting and concentrated. NeuroSky’s single sensor means it only picks up Muse is not idiot-proof. It took me a while to place frontal lobe signals. That isn’t trivial—the frontal lobe the headband in the proper place. Experience also taught is most involved in planning, problem solving and me that the initial calibration can fool the system. If your making you you—but it does leave a lot of the brain in baseline is jumpy and nervous, the device then mistakes the dark. This isn’t the headset for some of the more jumpy and nervous as calm throughout the session. data-thirsty, science-fictiony neurofeedback applica- Muse gamifies motivation, offering “points” and tions, like controlling a drone with your thoughts. congratulatory e-mails for sticking with sessions and For that, you could turn to an Australian firm called meeting goals. It also invites you to share your medi- Emotiv. For $299, it will sell you its Insight headset, tation milestones with others on social media. I guess which connects to your computer via a USB dongle. these tools are simply the modern app’s substitute for Insight has five sensors, enough for the device to the traditions and routines at ashrams, monasteries and other reflective places for thousands of years—but to me Facebook and a running tally of my bird count are the kinds of distractions I am trying to get away from. Once I got the hang of it, however, I came to like the Muse routine. The data graphs give me insight over longer periods of time than I’d otherwise have, providing an idea of when and how I can concentrate more easily. And over time I am getting better at attracting those bird sounds. •

Issue No. 30 69 ON MY CALENDAR

BY LEXIE BARKER DOWNTIME Conferring on Conferences Just the idea in today’s technology-laden world seems a bit outdated. You fly to one city just to gather at a hotel or conference stage to listen to speakers, take notes and then do that rarest of business activities these days—talk to people face to face. But whether it’s to rub shoulders with the big names in tech at SXSW in Texas or learn the latest on Africa at the African CEO Forum, the $14 billion trade and conference industry is still thriving as an essential learning and networking tool. Where else is it possible to bump into Bill Gates in the hallway, as one executive told us? Or, as the same executive also remembers, the CEO of his future company? “There’s a tremendous amount of opportunity to learn at every one of them,” says Texas- based author and tech expert Christopher Meyers. But which to pick? And how to tailor these events to your needs? Below, our own guide to some of the big ones left in 2017.

SXSW AFRICA MILKEN INSTITUTE INTERACTIVE CEO FORUM GLOBAL CONFERENCE March March April–May

LOCATION Austin Geneva

Los Angeles

EXPECTED 35,000 1,000 3,500 ATTENDANCE

KNOWN Frenetic atmosphere Ever-optimistic dis- Economic forecasting FOR seemingly in lockstep cussion around the delivered by some with the pace of techno- unrealized and untapped of the world’s leading logical change. potential of Africa. politicians and business leaders.

GOOD TO Offers more than 1,000 With certain require- The quintessential KNOW sessions with 2,500 ments in place, tends professional speakers, so don’t to draw a high-caliber conference that overschedule. The con- audience and is now in attentive attendees ference prides itself on its fifth year. can use to open eyes unexpected discoveries to new business for those who wander. opportunities.

70 Briefings On Talent & Leadership What are you looking for? We’ve assessed which conferences are best for a range of purposes, from networking to seeing the top leaders.

1 = LEAST FOCUSED 8 = MOST FOCUSED 8 n SXSW Interactive 7 n Africa CEO Forum 6 n  Milken Institute Global Conference 5 n Forbes Women’s Summit 4 3 n Singapore Summit 2 n Web Summit 1 n World Business Forum

BUSINESS OPPORTUNITIES CELEBRITY SPOTTING INSPIRATION

FORBES SINGAPORE WEB WORLD WOMEN’S SUMMIT SUMMIT SUMMIT BUSINESS FORUM June TBA November November

New York Libson

Singapore New York

Hundreds 350 50,000 2,000

An awe-inspiring One-day gathering on Truly international audi- Seriously well-curated line-up of top busi- the impact of globaliza- ence focused on being panel of speakers, topics ness leaders, think- tion on Asia. there rather than being and discussions. ers and celebrities, seen there. like Sara Blakely and Jessica Alba.

Aimed at inspiring By invitation only and for With a strong start-up An uncanny number of women to take good reason—last year’s vibe, Web Summit is speakers are TED Talk leadership roles, big names included also known to be a all-stars, promising a with the mission JPMorgan Chase’s Jamie good place to get new dynamic environment. of “translating the Dimon, Siemens CEO businesses noticed, par- This year’s topic: ideas into action.” Joe Kaeser and Hitachi ticularly for fintech and “Humanification.” executive chairman artificial intelligence in Hiroaki Nakanishi. recent years.

Issue No. 30 71 Briefings / 1900 Avenue of the Stars, Suite 2600 ENDGAME Additional copies: [email protected] Do You Have a

Cyberconscience? Los Angeles, CA 90067 BY JONATHAN DAHL

ersonally, I would never get a wink of sleep from this

moment on. Who hasn’t written something in an e-mail they’d rather not have disclosed to the whole

P Circulation Customer Service: +1 (310) 556-8502 Reprints: Advertising: Stacy Levyn +1 (310) 556-8502 wide world? In business, it’s crazy to think of the possibili- ties, not only in terms of embarrassing disclosures but the corporate informa- tion competitors would love to have.

And yet, don’t kid yourself, C-suite champions. The kinds of disclosures that Tiffany Sledzianowski +1 (310) 226-6336 WikiLeaks made during the presidential campaign last year—snared directly

from e-mail accounts—could definitely creep Companies need to look at their digital chat both more into the business sector. Indeed, you may backwards and forwards. “It’s really going to mean a remember that hackers last year broke into two wholesale review of what types of communications social media accounts of no less a tech genius than should be made and through what channels,” says Mark Zuckerberg. Think fast: If you’re a corporate my colleague Richard Marshall, global managing leader, is there anything you wrote electronically director of Korn Ferry’s Corporate Affairs practice. that you now regret, that shouldn’t be disclosed for What that means, among many steps, is one reason or another? assessing what some hacker might find worth dis- Apparently, not all companies have quite closing from the past, including pesky but poten- sounded the alarm. As our own website (kornferry­ tially damaging lawsuits or employee disciplinary institute.com) reported recently, sure, many firms actions, then preparing the proper public response have put digital safety protocols in place, but most for worst-case scenarios. By itself, this type of haven’t made full-scale upgrades in how they historical review could well be pretty exhaustive communicate internally. “I’m not sure that we’ve and may require some frank internal disclosures reached a tipping point yet,” Scott Shackelford, that could result in some CEOs deciding on having

an associate professor of greater transparency. inks, in a sustainable and environmentally responsible manner. soy-based and paper recycled power, solar utilizing Produced U.S.A. THE IN PRINTED Relying on business law and ethics at Moving forward, there is the real possibility of Indiana University’s Kelley limiting what C-suite folks should put in e-mails, technology School of Business, told us. what type of language is acceptable and whether to make sure But it seems almost we need, as our own new president suggested, to technology absurd not to get ahead discuss truly sensitive material only face to face of today’s new realities. or by phone. Or at least require the pulp-only doesn’t burn Obviously, assuring Internet approach to recording some information that you misses safety is a full-time job for shouldn’t last in cyberspace forever. the point. CIOs today, so it’s great to see All of which is to say it’s a rough but necessary companies issuing internal review. And yet, I’d like to think that today’s new warnings against using public Wi-Fi or hotel devices sphere of prying eyes has one plus side: It creates a while discussing sensitive materials. Relying more sort of cyberconscience. After all, what corporate on encrypted messages or VPN helps too. And then leader doesn’t now know that even a rude or there’s the basic reminders, like don’t reuse pass- impatient e-mail to an employee could come back

words, which turned out to be Zuckerberg’s cardinal to tarnish a well-burnished reputation? And as © Copyright 2017, Korn Ferry ISSN

sin. (For those awaiting the answer to show up on the top of the organization learns to take more 1 949 - 8365 “Jeopardy” someday, the answer is “dadada.”) deep breaths before hitting the “send” button, But to some degree, relying on technology to so too may hotheaded digital behavior improve make sure technology doesn’t burn you is missing throughout the company. the point, since no security system is foolproof. So … hurry up and get to work! •

72 Briefings On Talent & Leadership IT’S WHERE EMPLOYEES AT EVERY LEVEL IMPACT SUCCESS.

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