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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 o 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 e 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 o 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 e 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 Ken Orvidas “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: 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.