TALENT and POTENTIAL

No. 15 OBSERVEThe Odgers Berndtson Global Magazine_ Issue 03 2018 odgersberndtson.com

Talent and potential: A global challenge For more than 50 years, Odgers Our special thanks to the following Berndtson has helped some of the world’s Odgers Berndtson contributors biggest and best organisations find their to this issue: senior talent. Alex Acland, London Mark Braithwaite, Singapore We do so by forming strong relationships with the most talented people, with those Eric Beaudan, Toronto seeking them and between our own teams Philippe Cavat, Paris globally to bring both sides together. It is Nick Claridge, London because of our deep, non-transactional Rob Cross, London and lasting partnerships that our clients can acquire, develop and retain their Michael Drew, London strongest leaders. Maria Eugenia Bias Fortes, São Paulo Euan Frizzell, London Tony Gaffney, Toronto Áine Hurley, London Ayse Öztuna, Istanbul Harriott Pinnock, London Rebecca Reed, Melbourne Basil le Roux, Berwick Partners, London Greg Santore, New York Richard Stainer, London Bengt Starke, Stockholm Elizabeth Stewart, London We deliver executive search and Paul Vella, Dubai leadership services to businesses and Jiri Vodicka, Prague organisations varying in size, structure and maturity. We do that across more than 50 sectors, be it commercial, public or not-for-profit, and can draw on the experience of more than 250 Partners and their teams in 29 countries. odgersberndtson.com

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No. 15 The Odgers Berndtson Global Magazine_ Issue 03 2018 odgersberndtson.com

INSIDE: Education | Sport Diversity | Social Talent planning Religion | Coding Succession planning High potentials DEVOTED FANS. FULL STADIUMS. ETERNAL GLORY.

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The global race to 6 Under observation secure the best talent Worldwide talent and potential stories and nurture the best potential is moving at 10 Infographic breathtaking speed. Global talent by numbers Some have called it a ‘War for Talent’. We 12 Class act think it’s much more How universities and MBA courses are subtle than that. adapting to a disrupted world It is certainly true 17 Portraits of potential I that in some sectors – ﬁntech and cyber security to name just two – Brazil’s Jonas de Barros Carvalho the dearth of excellent talent is a very real 18 High wire acts problem. But in other areas where there is an How to recognise high potential people abundance of talent, the key is to know how to separate the wheat from the chaff. 20 Game changers Much of what is contained in this, our 15th A look at the rapidly fragmenting sports edition of Observe, gives practical advice about media and esports landscape succession planning, creating an overarching talent plan, knowing how to recruit from Gen Y 25 Portraits of potential II (and Z) and identifying high-potential people. Canada’s Jennifer Magher We also look at the sensitive topic of why there + aren’t more LGBTQ+ people at executive and 26 LGBTQ and the boardroom board level. Time to speak out Not that the search for the best talent is 32 A matter of faith restricted to the requirements of MNCs. It manifests itself in other areas, too, such as Religion and the talent question religion. Our look at how three different faiths 37 Portraits of potential III have gone about their search for ‘talent’ is both Belgium’s Marthe de Proft an eye-opening and interesting insight. We hope you enjoy the range of material 38 Digital leadership contained here and the discussions that will Executives and boards must up their game inevitably lead from it. At Odgers Berndtson we are immersed in the talent and potential 44 What’s your plan? challenge every day – it is a fascinating, Tony Gaffney on boards and talent plans demanding but ultimately rewarding task to know that you can ﬁnd the right person for 46 Next in line… the right job at the right time. Do you have an active succession plan? 51 Portraits of potential IV Ayse Öztuna Bozoklar South Africa’s Raymond Ledwaba Managing Partner, Odgers Berndtson Turkey 52 Generation game Ways to recruit from the Gen Y pool

@odgersberndtson OBSERVE 54 The sweetest thing

No. 15 The Odgers Berndtson Global Magazine_ Issue 03 2018 #obobserve odgersberndtson.com Finding an outstanding board member for the Swedish confectionery giant Cloetta 58 Code red! Observe TALENT AND POTENTIAL: To read any of the great A GLOBAL CHALLENGE A look at coding boot camps content featured in Observe over the past three years, 60 Top tweets go to odgersberndtson.com and click on the ‘Insights’ tab CEOs turn to social media

@odgersberndtson OBSERVE 3/18 5 Under observation

Stories, JOBS statistics and HIRING RIGHT NOW! Forbes and online job search engine Indeed.com recently compiled events from a list of the 15 companies in the US that have the most listings for jobs that pay at least $60,000 a year. Here are the top five: around the 1. Amazon 2,407 2. Oracle 2,350 world that 3. Microsoft 2,089 affect talent 4. Dell 1,862 5. JP Morgan Chase 1,761 and potential https://bit.ly/2Ol0gr3

BOOKS ACCELERATED LEADERSHIP DEVELOPMENT: HOW TO TURN YOUR TOP TALENT INTO LEADERS by Ines Wichert, published by Kogan Page, £29.99/$38/€33. Also available as an e-book. As organisations adapt to an increasingly volatile and complex world, it is crucial, says Wichert, that HR and Learning and Development (L&D) professionals ensure that leadership development keeps pace and employees have the right skills and capabilities to operate successfully in leadership positions. Wichert shows how organisations can BOOKS accelerate the career progression of their top talent and reduce the UNLOCKING HIGH PERFORMANCE journey time from entry level to by Jason Lauritsen, published by Kogan Page, senior executive roles. £19.99/$25.75/€22. Lauritsen gives a compelling insight into how to supercharge your workforce with a practical guide to designing a performance management Women are the process that motivates, engages and empowers largest untapped staff. Lauritsen uses examples from diverse organisations such as Vistaprint, NVIDIA and reservoir of talent Farm Credit Services of America, and provides the tools needed to create clear expectations in the world. and goals, deliver feedback effectively, and develop a culture of Hillary Clinton coaching rather than criticism.

IMAGES: SHUTTERSTOCK/ALAMY IMAGES: See Eric Beaudan’s piece on high-potential talent, p18

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In technology it’s about the people: getting the best people, retaining them, nurturing a creative environment and helping to find a way to innovate. Marissa Mayer, former Yahoo CEO

DEMOGRAPHICS THE GEN Z TAKEOVER Generation Z – those born after 2001 – will account for 32 per cent of the earth’s population in 2019, compared to millennials (those born between 1980 and 2000), who will account for 31.5 per cent, according to new Bloomberg analysis. Critically, members of TECH TALENT Gen Z differ from their millennial predecessors in that they have only ever known a digital world. Throwing down Meanwhile, research by Deloitte the gauntlet also shows that Gen Z people anticipate being happier and more Odgers Berndtson has launched • Do more to allow highly skilled optimistic than millennials. These a manifesto to expand migrants in new specialist areas differences are expected to make technology skills in the UK – the right to remain and build themselves felt as Gen Z starts to urging the government to relax long-term careers in the United vote and make financial decisions. immigration controls, expand Kingdom How these changes will play out university funding and boost • Provide more collaboration in the search for great talent is public/private partnerships to with universities and the private now the million-dollar question. achieve its ambitions on sector to develop new specialists innovation post-Brexit. “It’s vital and make the UK a global hub for the UK to adopt a more • Take a lead in anticipating the holistic and far-reaching growing need for specialists to approach to developing the focus on ethical and societal specialist capabilities needed impacts of emerging to compete in the fast-changing technologies like AI, robotics market for global tech,” said and machine learning. Michael Drew, Head of the Global Technology Practice at Odgers Drew added: “It’s not just a case Berndtson. Specifically, the of keeping the borders open – manifesto challenges important though that is – but government to: taking a more societal view of • Encourage more students what technology can do and to specialise in key areas like investing on a much greater artificial intelligence and scale through regional centres machine learning of excellence and in partnership • Create regional Centres of with industry.” Excellence in AI linked to different universities leading To find out more go to: specialist areas of research odgersberndtson.com

@odgersberndtson OBSERVE 3/18 7 Under observation

Accept the fact that AI will change our work, but look at it as an enabler of your work and the future of talent acquisition. Przemek Berendt, Luxoft [software development company]

POTENTIAL A YOUNG HEAD In 2003, at the tender age of 17, Indian entrepreneur Suhas Gopinath became what was widely thought to be the world’s youngest CEO and Chairman when he took charge of Globals Inc, an IT multinational company. In November 2008, he was invited to represent the World Bank’s ICT Leadership Roundtable for adopting ICT in Africa to increase employability and fostering ICT skills in students from these countries. He was made a ‘Young Global Leader’ for 2008– 2009 by the World Economic Forum in Davos. Gopinath holds a diploma in global leadership and public policy from the John F. Kennedy School of Government and Harvard University. Today Gopinath is Founder and CEO of HappyEMI – a next-generation consumer finance company providing shoppers with instant financing at the point-of-sale in stores and online platforms, making it a “peopleless, paperless

financing platform”. He is also an advisor to the Indian CYBER SECURITY Government’s Ministry of Labour and Employment. happyemi.com SHORTAGE? WHAT SHORTAGE? According to recent estimates, there will be as many as 3.5 million unfilled positions in the BOARDROOM cyber security industry by 2021. Writing in PEPSI GENERATION? Forbes magazine Brian NeSmith, CEO and Co-Founder of Arctic Wolf Networks, said: PepsiCo announced in August that when its long-serving CEO “Organisations must look at the problem in Indra Nooyi (below) stands down later this year she will be new ways. The quickest solution would be for replaced by Ramon Laguarta, who has been with the company one person to be able to do the work of five, for 22 years. When she goes Nooyi will have easily surpassed the and AI makes that possible. It’s just that the average tenure (7.2 years) on S&P’s 500 CEOs list – the median is ‘one’ employee must be a skilled security just five years. While replacing Noori with a male CEO might raise expert of the highest calibre… and such eyebrows given the still woefully low number of female CEOs, skilled expertise is nearly impossible to find. Laguarta’s long track record with the business is likely to Solving this problem requires a different way satisfy Wall Street. of thinking. An emerging set of companies are outcome-focused and look at people, processes and technology holistically. This means getting more out of your existing security resources, not just adding more. Companies can’t do everything themselves. They must use or augment their internal resources with those of security service providers. The companies that realize this will lay claim to the most robust security and avoid the disastrous consequences of a major cyber security breach.” Talent hits a target no one else can hit; genius hits a target no one else can see. Arthur Schopenhauer, philosopher IMAGES: ALAMY IMAGES:

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TEDX PRAGUE Turning somersaults

Odgers Berndtson’s Prague office is closely collaborating with the upcoming TedX event in Prague, which takes the word ‘Somersault’ as its overarching theme. The event, which takes place on November 10, will include 15 speakers from the Czech Republic and beyond. Jiri Vodicka (above), partner in Odgers Berndtson’s Prague office and team leader for the TedX Prague event, said: “When was the last time you did a somersault? Actually get on the floor and roll, just for the fun of it? And when was the last time you experienced one in your life? Perhaps it was following the abrupt end of a long-lasting relationship or a realisation that the career you’ve spent years building is no longer for you. How has it changed you and your perspectives and how have you coped with it?” These are the questions that TedX Prague seeks to answer as we grapple with a disrupted, digital, ever-changing world where pressing issues about talent and potential abound. Adds Vodicka: “Somersaults require a change of position, a certain amount of effort and a little bit of courage. You need to put both your mind and body into it and just take a leap. It’s not that easy, but it can be both therapeutic and fun. If nothing else, a somersault might just change the angle from which you see the world – for the better.”

To find out more go to: tedxprague.cz/en NATALI YA PHOTO YA NATALI

@odgersberndtson OBSERVE 3/18 9 Insight

say 27% applicants hardlack or the soft skills Research firm they are looking for, with Gartner projects that Japan, Romania and Taiwan there will be the worst affected Talent shortages are 1.4 million at a record high, with In a survey of more than computer-specialist job 1,000 tech hiring managers openings in the US alone in the US by 2020 , creating a talent shortage that universities won’t be 9 in 10 able to fill by 45% said they find it challenging to find and hire technical of employers around the world talent. a third said it was 1 30% reporting difficulty in filling roles very challenging Global CEOS polled by the Conference Board, THE GLOBAL a New York research company, ranked a global recession as their 19th concern out of 28 choices, down from being the top worry a year earlier. TALENT SITUATION: Failure to A DATA SNAPSHOT was the number-one concern, followed by creating new business models and attract and cash-flow volatility, according to the C-Suite Challenge survey, conducted retain talent from September to November 2017

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employers are investing in training their workforce (56 per cent) compared to Twice just four years ago, an indication that employers are increasingly investing in as many building tomorrow’s talent 2

A study of the global workforce shortage in the cyber security1.8 sector million predicts the gap to hit in 2022. Some 68 per cent of cyber security experts in North America say they don’t have the talent they need on their security teams 3

A 2017 Forrester report predicted that US companies are companies that Lag behind in attracting raising more than critical digital talent will end up paying above market SUPPLYCHAIN247.COM GUIDE, 7. US 2018 SALARY 6. HAYS FINANCIAL MARKETS, 5. HAYS NCE.COM, salary rates for $1 billion 20% new hires with particularly in-demand skills such as for the recruitment of AI scientists data scientists, high-end software by 2020. These senior roles have an developers and information analysts average annual salary of $314,000, due in part to a global talent shortage 4

say they will increase headcount More than next year [2019], but three- quarters are experiencing a skills shortage in their industry. In a recent study half Skills shortages are already of 900 workers of US employers noticeably affecting business 6 and employers in the UK, The U.S. Bureau of Labor Statistics reports that 61% jobs in logistics are estimated to grow by of FinTech companies said 26% they are facing a moderate to between 2010 and 2020, while one global study extreme estimates that demand for supply chain professionals shortage of exceeds supply by a ratio of six to one 7 FinTech skills 5 SOURCES: 1. INDEED RESEARCH, 2. MANPOWER GROUP, TALENT SHORTAGE SURVEY, JUNE 2018, 3. FROST & SULLIVAN 2017, 4. TOWARDSDATASCIE 2017, & SULLIVAN JUNE 2018, 3. FROST SURVEY, SHORTAGE TALENT GROUP, SOURCES: 1. INDEED RESEARCH, 2. MANPOWER

@odgersberndtson OBSERVE 3/18 11 Education Learning Are business schools, universities and other higher learning institutions preparing the next generation of leaders in the right way? DAVID CRAIK seeks some answers 2.0 ILLUSTRATIONS: IKON IMAGES IKON ILLUSTRATIONS:

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here has never been around the globe? Do they and processes serving them,” a more critical time see the need to change staple he adds. “There is undoubted Tfor universities and courses such as the MBA with value left in the old form of the business schools as they new tools and techniques that MBA but unless programmes prepare the next generation will prepare the next wave of adapt to the new world of work of talent – and ultimately the talent for a very different world? in both content, structure and next generation of leaders – “It is about changing the delivery process we will for the disruptive world that delivery method to more struggle in the future.” awaits them. interactive, online and virtual Butler believes the USB is Old rules and old training,” believes Martin Butler, fulﬁlling rising student demand methodologies no longer head of the MBA Programme at for change. “Students want apply. Or at least they must the University of Stellenbosch relevant content for the new be combined with creative, Business School (USB) in South world of work, helping them to digital-inspired ways of Africa. “We have simulations deal with increasing complexity. learning that would have been and collaboration across The emphasis on innovative unthinkable just 10 years ago. modules, programmes and actions to deal with both There is a radical sea change even institutions. We have challenges and opportunities underway in learning augmented reality environments embedded within the changing methodologies. Business schools and are working on virtual transactional environment has and universities that don’t spaces for students to work always formed part of business recognise this fact and adapt in virtual teams.” education, but not at the to it will simply be left behind. But, he adds, responding current rate of change,” he to the new world also means says. “Students want to be Changing methods building dynamic capabilities equipped with tools and “The conversation between and hitting the cornerstone of techniques to deﬁne clear and universities, governments MBA education – relevance. “It appropriate actions within a and employers about whether is about developing the ability dynamic environment.” we are producing graduates to adapt quickly and being ready for the new world of comfortable with fragmented A global mindset work is not new,” says Alex markets as well as the systems Much of this is in line with Acland, Partner and Head the thoughts of Tiff Macklem, of Odgers Berndtson’s Dean of the Rotman School of Education Practice based in Management at the University London. “But the fourth of Toronto in Canada. Industrial Revolution is “There is no question that sharpening the focus. Is the Students want the global pace of change is next generation ready for accelerating. The world is the way work is changing?” relevant content becoming more interconnected So, how are universities and and multi-polar,” he says. “Our business schools responding for the new programmes with their enduring ¨ world of work

@odgersberndtson OBSERVE 3/18 13 Education

fundamentals of management Rotman has a Managing relations such as evidence-based analysis Tim Kastelle, MBA Director are critical in cutting through Finance Lab that at University of Queensland the noise and identifying the Business School is hearing underlying forces of change to has a simulated something similar from create more value for society. employers in Australia. “The But they also need to develop trading floor with existing MBA model’s focus on more diverse skills such as basic effective management innovation, creativity, real-life data... skills is still crucial and indeed behaviour, communications can help students feel more and persuasion.” certain in a changing world,” In response Rotman has he states. “But you have to pay introduced more specialised more attention to the big shifts programmes such as Masters in where students learn how their in society. Students need to Financial Risk Management and leadership skills can become learn about how machine Management Analytics, based more effective. It also runs a learning and Bitcoin fit into around extracting the best Global MBA for Healthcare and business models, but employers value from Big Data. It is also Life Sciences. are also asking for more collaborating with more “We generally encourage a interpersonal skills and how companies and increasing the global mindset because money, to manage people in the new amount of work experience health and climate do not world. It means giving our their MBA students have in the recognise borders,” Macklem students more problem-based ‘real world’. “These changes says. “Leaders need to better and experiential learning. They give our students more understand different ways of work on actual and specific opportunities to go deeper doing business, what local projects at real businesses. into areas of business that customers desire and how Before, only our top students really interest them,” Macklem to build global footprints.” would do this.” explains. “Business schools Macklem sees a growing Interpersonal skills and have to keep up with these demand for such skills not communication are vital changes. That means bringing just from students but also lynchpins in negotiation and new elements into our MBA from employers. “Students are this is why Tim Cullen, programmes like students increasingly digital-native and Associate Fellow, Programme working with tech enjoy experiential learning. Director, Oxford Programme entrepreneurs in areas including They know what they need and on Negotiation at the Saïd AI and working on issues such when they want it,” he says. Business School, has as designing business for “Employers expect students to incorporated key changes gender equality.” be rigorously trained, have there. “Part of my responsibility Rotman also has a Finance strong analytical skills and be is [to ensure] that we stay Lab that has a simulated trading comfortable dealing with large topical, particularly regarding floor working with real-life data, amounts of data. They also seek negotiating in a globalised and a self-development lab communication and creativity.” world,” he explains. “We have

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introduced topics such as of Degree Programs. “From cross-cultural negotiations to a methodology perspective, be more tolerant of different how can leaders best react behaviours and how to better to these changes?” manage relations with the news He believes leadership media, particularly on social courses and the MBA also media, during negotiations.” need to greater reﬂect the The school is beginning to societal impact of business. use new technology to help “The next generation is students negotiate via email questioning the status quo and even using WhatsApp. and the purpose and impact “I’ve had initial discussions on of business,” he says. “The the potential for negotiation public is unhappy with simulation using AI,” he says. business, and if we want it to Elsewhere at Saïd, students avoid the fate of the French can enrol on programmes monarchy we need to include such as ‘Blockchain Strategy’ societal impact in our and ‘Fintech’. “The school is decision making!” increasingly responding to Alex Acland of Odgers technological changes,” has his own take on the new adds Cullen. generation. “They are savvier and more vocal about what Reacting to change they want. They also back INSEAD (the graduate business themselves more than previous school with campuses in generations and are less Europe, Asia, and the Middle prepared to accept old norms,” East) also has a strong focus he says. “With the world of on digital disruption. It works work changing ever more with tech giants such as quickly with the introduction Microsoft to train staff in areas of new technologies, AI and such as sales pitching as it machine learning, we need moves to IT as a service, and to update what we mean by with senior executives of other 21st-century skills so that we businesses to help them develop leaders ﬁt for the understand new technology new age. We also need to and devise strategies to ensure that social and ethical incorporate them. “We have a implications are hard-wired focus on digital challenges and into the discussion. We must opportunities, and even how view leadership in a much the world will look in 2050,” broader sense than we’ve says Urs Peyer, INSEAD’s Dean ever seen it before.” I

@odgersberndtson OBSERVE 3/18 15 Business. Pleasure. Enjoyment.

Piece together your perfect conference or event in the sun.

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www.hotelipvpalace.com E: [email protected] T: (+34) 952 92 20 00 Fuengirola (Málaga) Portraits of potential I

Jonas de Barros Carvalho believes SHAPE OF his time spent with the CEO of a major Brazilian THINGS business was a priceless learning experience TO COME

decided to take part in the consequence. Sometimes, CEOx1Day programme especially for young Ibecause as a young people, we don’t see person I knew I needed or understand the to have the best consequences of possible experiences our actions. But in as my career unfolds. business some Being able to meet decisions have an and work with a senior immediate impact, executive of one the such as hiring and biggest companies in firing employees or Brazil enabled me to buying this or that gain a broader vision of piece of equipment. how a large company I realised very quickly operates and what you must that the decisions you leverage in order to achieve make can and will impact success. That means a focus on the business on both a macro people, consumers, results and digital and a micro level. transformation – although I prefer to call In order to have teams connected, you it adaptability. must align the vision of the company with the I spent the day with Eduardo Gouveia, then vision of each individual. If you can do that, you CEO of Cielo [Brazil’s largest payments solutions will have fewer problems. But more than that, I try company], who taught me that ideas come before to give employees a sense of belonging. It’s so things, and that those ideas come from people. important to devolve responsibility to capable So the key is to find a way of giving people the individuals. I think that giving freedom to people opportunity to blossom and express their ideas. definitely helps with retention. I learned quickly from Gouveia that leadership For me the best way to realise one’s potential is about having consistency, ethics and honesty is by being honest with who you are and what in what you do as well as having an empathy with you desire. It’s incredibly difficult to stick to it people and knowing your business inside out. To sometimes, but with patience and effort you can be a strong leader, Gouveia showed me that you make it work. I think we, the new generation, must have conviction and a natural optimism. should start asking more of ourselves: who are I am now a partner in a new e-commerce we, where are we going and what do we want to business selling high-end fashion. Unlike do with our world? If we answer these questions CEOx1Day where you are an observer and honestly, we can build a business, choose a career, unexposed, now that I am at the helm of a excel in our objectives and convince people to I ILLUSTRATION: PAUL RYDING PAUL ILLUSTRATION: business every decision I make has a help us with our goals.

@odgersberndtson OBSERVE 3/18 17 Potential FINDING THE ERIC BEAUDAN and PHILIPPE CAVAT on how to identify your organisation’s BEST best high potential talent – and what to do with it Potential

n the 1970s and 1980s, US television channels Look for future leadership potential and Iwould start their nightly newscast by asking motivation, not past performance: the ominous question: It’s 10pm, do you Performance ratings are situational and limited know where your children are? In today’s to a certain time period, with lots of external world, business and HR leaders might start contributing factors. To properly assess their strategic review sessions with a similar potential, you need to look deeper and phrase: It’s 2018, do you know where your determine what an individual’s passion and high-potential leaders are? If you can’t answer inner leadership talent truly looks like. It is that question, and can’t back it up with striking how often, once you identify and quantifiable data, the odds are against you redeploy a high-potential employee, you in the battle to attract and retain talent. multiply that individual’s contribution to High-potentials typically make up only five the organisation. to 10 per cent of an organisation’s employee population. They are often defined as Recognise diversity: Not all strong leaders who can step up one or two levels performers are alike, and likewise not all within 18 to 24 months, or sometimes as high-potentials are alike. Some high potentials individuals who can quickly switch from will thrive when presented with opportunities one leadership role to another in a different to deepen their expertise in their field. Others function and quickly add value. As McKinsey would rather sample multiple experiences and found in a recent study of 600 organisations, learn about different parts of the business. these “fast talent reallocators were 2.2 times Not all will follow identical career paths. more likely to outperform their competitors on Total Shareholder Return (TSR) than were Provide guidance and feedback: There is a slow talent reallocators.”1 general misconception that high potentials So how do you identify high-potential are self-guided rockets that can naturally individuals, and what are the qualities that achieve their goals, when in fact many are still in these individuals display early in their career? the early stage of their leadership development. With millennials slated to make up three- Structured development and coaching are thus quarters of the global workforce by the year required to help ensure that the individual 2025, being able to spot these characteristics doesn’t burn out during his or her ascent. and encourage their development will be key to any organisation’s success. Yet an Oracle One final thought: the debate over whether white paper found that “only 20 per cent of or not to disclose high-potential status to our respondents report being Very Satisfied employees is largely over. Harvard Business or Satisfied with the ability of their organisation Review authors Douglas Ready and Jay Conger to track metrics associated with their HiPos, reported that “the percentage of companies including where they are sourced”.2 that inform high-potentials of their status has Given this dilemma, we’ve gathered some best risen from 70 per cent about a decade ago to practices and lessons learned from the dozens 85 per cent today”.3 Letting high-potentials of organisations where our Leadership Practice know that the organisation values them and is has been assessing leaders globally to find willing to invest in their development is a good those rare nuggets. Here are some takeaways: indicator of how robust your ability to spot high-potential talent really is. This in turn Cast a wide net: Clients often ask us if creates a powerful plank in your talent strategy they should only assess employees who that benefits the entire organisation. I are seen as high-potential by their business 1 leaders, and invariably the answer is no. ‘Linking Talent to Value’, McKinsey Quarterly, April 2018 2 ‘Managing High Potential Employees: Managers Can People who are labelled as high potentials Make the Difference’, Oracle Human Capital White without a formal assessment are either simply Paper, 2017 3 high performers in their individual role, or ‘Are You a High Potential’, by Dougals Ready and Jay Conger, Harvard Business Review, June 2010. people who stand out from a very short talent field. In many cases, pressured business leaders nominate people who would never be selected Eric Beaudan is the Global Head of Odgers Berndtson’s Leadership Practice, based in Toronto. on a high-potential list through an objective Philippe Cavat, based in Paris, heads up Odgers

ALAMY assessment process. Berndtson’s Leadership Practice in France.

@odgersberndtson OBSERVE 3/18 19 The sports media landscape is changing in ways that were unimaginable even five years ago – and the talent needs required to spearhead GAMEthis transformation are equally formidable Sports media

edia once was it had teamed up with La Liga a simple game. to bring the Spanish soccer M Programmes league to viewers on the Indian were made and subcontinent – for free. bought and sold; advertising Given that India is Facebook’s space was carried around and largest market, with 270 million between the programmes; users, this seems a logical, if channels broadcast a unexpected, alliance. Although ‘smorgasbord’ of content in domestic soccer in India may order to attract and retain only be nascent, it signals a their share of viewership and, fundamental shift. The three- hence, advertising revenue. season deal will bring soccer That landscape still exists but to Afghanistan, Bangladesh, is increasingly disrupted. Bhutan, India, Nepal, The Maldives, Sri Lanka and Pakistan. Ballpark figures On the other side of the world, Broadband, 4, 5 and 6G, cable Greg Santore, Head of Odgers and satellite channels all mean Berndtson’s US Sports Practice, that the aggregation is no adds a further perspective: longer just in terms of content, “Legalised sports betting in the but services too. The ‘big bang’ US is another game changer. in UK sports media was the With the projected billions of launch of the football Premier incremental revenue on ad League, into which the then spend alone, it will intertwine fledgling BskyB invested heavily, with professional, collegiate and ushering in a new business other sports-related businesses. model: subscription – paying a With the extreme urgency to get premium monthly fee to watch into the marketplace quickly, the the content, and following to developing talent pool will need some extent the model set in to include experience with fan the US with the NFL and NBA. engagement, media and other For Richard Stainer, Head of disciplines and may come from Media and Communications, any one of them.” At the same Global Sports, Media and time, millennial viewing habits Entertainment Practice at have played heavily into the rise Odgers Berndtson, “that was of Netflix, Amazon Prime and a really significant moment. start-ups such as NewTV, which Although money was – and is hopes to raise $1 billion to fund – still being made through ‘bite-sized’ chunks of content advertising, the foundation of to subscribers. These content the business model became providers mean that people can much broader, one in which segment and select; just this consumers welcomed paid-for programme or just this series. content into their homes and the advertising served was at once A clearly articulated vision more relevant, while at the same The ‘talent’ question in this time not the sole source of fragmenting media landscape income. Now digital platforms is absolutely imperative. For allow people to watch any Stainer, “it all starts with a clearly content, any time, anywhere. articulated vision. The very best It’s the direct-to-consumer era.” talent wants to sign up to a To underline this, in August journey, breaking new ground, ¨ 2018 Facebook announced that leading and innovating. One of ASSOCIATION PRESS ALL PHOTOS:

OBSERVE 3/18 21 Sports media

Commercial Officer for Rugby Australia, Cameron Murray, spent more than 10 years in broadcast media and three years leading APAC media advisory The search is across traditional and new media. It is this in-depth on for people knowledge and understanding of the media space and how to who have really commercialise content that made him the frontrunner for the bold ideas... job. The AFL brought in Kylie Rogers at the beginning of 2018 for exactly the same reasons; this combination of digital, broadcast and commercial experience. The tricky thing is the reasons why Amazon has In Australia, two of that they still need to be able to been so successful is because country’s leading sports brands, broker partnership deals and Jeff Bezos is supremely Cricket Australia and Tennis secure sponsors for all their compelling – to investors, Australia, hit the headlines products, not just the elites level, consumers and co-workers – earlier this year with new so the talent pool is narrow.” about what he is going to make landmark media deals that saw happen next. The search is on both swapping Free to Air (FTA) Disruptive delivery for people who not only have broadcasters. Meanwhile, other disrupters really bold ideas, but who are Cricket’s AUD$1.2bn deal was such as Dazn and Eleven deeply talented at executing a clear demonstration of the Sports may win too. Dazn these ideas and – crucially – able new landscape, where sport describes itself as “the world’s to persuade the broader public and media broadcasters are first truly dedicated live sports to buy into them. Murdoch’s having to join forces to ensure streaming service” and is original Sky Sports vision was they are delivering the best currently available in Germany, genius but you have got to content across multiple Switzerland, Austria, Canada have execution, which means platforms. The deal involved a and Japan. Eleven Sports – “a – today – being really strong shared broadcast and streaming multinational group of sports commercially, really digitally deal between Channel Seven, television channels” – has its HQ savvy, and really comfortable Foxtel and Cricket Australia. in the UK and currently serves with companies that are not According to Rebecca Reed, Italy, Poland, Portugal, structured in the traditional Partner and Head of Sport, Singapore, Taiwan and the USA. ways. It’s not easy to find all Gaming, Media and Owners of the rights to major those things in one person.” Entertainment Practice at sporting events, such as IMG, the Amazon will of course win big, Odgers Berndtson Australia international events and talent because it makes money not and New Zealand: “Media and management company based in solely from creating content but sport continue to rely upon New York City, will themselves out of knowing its consumers each other, despite the fact own, create and provide content really well and targeting them that media broadcast deals having acquired the streaming in ever more refined ways to sell are not as substantial as they provider NeuLion. And the agile them more goods and services. once were.” consumer will also be a winner “Facebook may also be a winner She adds: “In sporting because they will be able to find but their content strategy is not organisations the Head of any content, on any device, in yet set. Certainly hiring people Commercial role has changed any territory. like Peter Hutton, who was the significantly, with the demand One of the disrupters-in-chief CEO at Eurosport, was a really now for commercially driven in this new world is Martin Anayi, smart move and signals leaders with media backgrounds formerly a commercial lawyer intention,” according to Stainer. and expertise. The new Chief with IMG and now the CEO of ¨

22 OBSERVE 3/18 odgersberndtson.com

Sports media/esport

Guinness Pro14 rugby, a from a platform, corporate and not-for-profit organisation company perspective. So that features rugby union embracing ambiguity and to THE ESPORTS league teams in Wales, EXPLOSION some extent creating ambiguity Scotland, Ireland, Italy and Who would have is important. For example, we South Africa. “We brought in imagined that made the decision to develop the sitting in an audience some really great commercial of 30,000 whooping OTT platform and go with two talent from RTE in Ireland, and spectators, watching individuals providers: one for Europe and a new finance director from or teams take on others with the one for the rest of world. That has quick-fire joystick, could generate Diageo. The total team now is so much interest – and money? created a massive opportunity to 15 people – when I joined three “People have been watching learn and, at the same time, years ago it was just three other people play video games create ambiguity in our pathway. for the past 20 years. But it’s only people,” says Anayi. started to become really popular It goes back to the leadership The rapidity with which now, with the rise of technology,” skill of wanting to innovate and technology is changing has says Caroline Lacey, esports and be eager to create the ambiguity video gaming consultant with profound implications for the Odgers Berndtson. with that sort of innovation.” kind of talent that will be The global audience for esports For Euan Frizzell, Global Sports needed in the future. The – groups of people gathering to Practice Principal with Odgers watch together individuals or prospect that the content you teams compete in video games – Berndtson, “the knock-on effect view will be determined to an will this year exceed 380 million, on the type of talent required in extent by an AI-informed app according to Newzoo, which the industry is profound. For gathers market data for the on your mobile device, which global video games market. sports organisations the knows what you have enjoyed Total revenues generated will objectives haven’t changed: grow watching, and anticipates what be more than $905 million. the sport, the audience and the Newzoo expects more than you might like to view now, will 550 million people annually will engagement even though the utilise the skills of designers, be viewing esports three years motivations may vary from coders and psychologists, while from now, and total yearly driving revenues, health and revenues will hit $1.65 billion, with at a higher level it will require 70 per cent being generated by sporting success. Technology the expertise of media-savvy sponsorship and advertising. has been disrupting and enabling talent of all descriptions. “Esports is becoming the new sports organisations for decades entertainment medium,” says “For us, in the talent space, Philip Wride, of Cheesecake and, in particular, in helping what ultimately the most valuable Digital, a specialist esports were once regional, domestic or executives are increasingly agency. “Our generation has national sports globalise. The grown up with technology. Brands those people who can help like Coke, Mountain Dew and Red interesting question is what role make that really big Bull are involving themselves in will domestic sports serve in a breakthrough with innovative esports because they see the globalised product? Cricket and opportunities of targeting a thinking in sports rights, or in specific demographic,” he adds. golf are examples of sports that original content, whether they Even the International Olympic have introduced new formats, are creating, acquiring or Committee (IOC) is considering driven by the need to make them the creation of a working group to producing,” says Stainer. explore how to get into esports. more entertaining spectacles for “There are a lot of very the next generation of viewers. Adapt or die passionate esports people who “So the impact on the sort don’t know much about business,” For Mark Waller, Executive says Caroline Lacey. “Senior of executive talent required Vice President NFL Events and executives who have a structured to thrive in this evolving and International, the impact is clear. industrial background – who global ecosystem cannot be know how to build businesses – “I think the key characteristic are starting to come into the understated. for both leaders and sports industry. We are seeing a lot of “We will see more global organisations in this current people from conventional sports talent from different sectors and moving in, people who have skill market is the willingness to at building partnerships and backgrounds enter the sports embrace ambiguity and handling media rights. They and sports media industry and recognise that the way the need help to understand how more leaders who are prepared to get their brand in front of positive landscape is evolving, nobody the audience; it’s one that has to see ambiguity in a can predict what the next five grown up using ad blockers.” way in order to gain that vital years from now will look like competitive advantage.”. I

24 OBSERVE 3/18 odgersberndtson.com Portraits of potential II

Jennifer Magher on how she is applying her experiences of CEOx1Day in her daily life at ArcelorMittal LESSONS IN LEADERSHIP

decided to take part future of their in CEOx1Day because organisation. I I was keen to see The day with close up the daily life Annick made me of a senior executive, realise that a role that fascinates becoming a me given the high leader is the stakes it entails. It result of hard turned out to be a work, of pushing really inspirational day. ideas that upset I learned many of the the status quo, fundamental facets of and of developing an industry and the relationships that challenges of the company foster and deliver the I had been paired with. company’s common I shadowed Annick Guérard, goals. I genuinely think it’s formerly CEO of Transat Tours true to say that living these and now COO of Transat [a leader in traits on a daily basis really can the Canadian holiday travel market]. The day help uncover the leadership potential was really eye-opening: very busy, with a hectic that is within us all. schedule and the need to learn fast. I am now a financial analyst at ArcelorMittal We began with a visit to the company’s Mining Canada [a division of the world’s maintenance centre, where Transat services its leading steel and mining company] where I aircraft and handles flight logistics. From there am particularly interested in the evolution of we went to the head office where we joined the iron ore mining and steel manufacturing strategic meetings of different departments, industries, and the way businesses adapt to including sales and digital. Throughout the day, face the challenges that lie ahead. Keeping Annick clearly identified the issues specific to up with the latest trends helps me practise each sector and the solutions put in place to strategic thinking on the projects I lead by achieve the company’s strategic objectives. always reflecting on the bigger picture. I learned a lot about leadership by talking to Above all, learning how to learn and to be Annick and by observing her actions. I realised willing to change constantly are the most that leadership is about people – they are the important characteristics a person, young most crucial variable when trying to translate or less young, can develop. Technology vision into reality. Indeed, vision, strategic moves quickly, and change remains the thinking and decisiveness are all fundamental common denominator across all industries I ILLUSTRATION: PAUL RYDING PAUL ILLUSTRATION: skills for leaders, enabling them to direct the and functions.

@odgersberndtson OBSERVE 3/18 25 There is an estimated 455-million-strong LGBTQ+ community globally, yet C-suite leaders who are openly ‘out’ are few and far between. And in less enlightened parts of the world the chances of there being an LGBTQ+ CEO are to more remote than ever. Observe investigates Diversity

n July 2018 McKinsey marked what it described as “another milestone in our Ijourney to advance inclusion and diversity for the LGBTQ+ community”, when it convened the inaugural meeting of The Alliance, in Lisbon, Portugal. The conference brought together more than 115 private-, public-, and social-sector LGBTQ+ leaders from 19 countries to discuss the inclusion and diversity agenda not just on a personal level and in their organisations but also in work and society more broadly.

Breaking down barriers According to McKinsey there is a 455-million- strong LGBTQ+ community globally. Yet only 27 per cent of this number self-identify, for reasons including social pressure or legal constraints. William Decherd, a partner in McKinsey’s Dallas office, said: “We all know that individuals from the LGBTQ community can face barriers – sometimes visible, sometimes invisible – in life and in work. Many organisations are already trying to promote inclusion and diversity. But it is surprising how many people, still today, are ‘out’ in their personal lives but not at work.” Of course, the fact that there has to be a special event solely for LGBTQ+ leaders demonstrates how far society – or perhaps one should say more enlightened societies – still has to go before a person’s sexual orientation is secondary (or better still, irrelevant) to their actual ability to fulﬁl the role in question. In the same way that glass ceilings need to be smashed be for women in the boardroom, so there must be no ‘glass closet’ (as McKinsey pointedly calls it) for members of the LGBTQ+ community. Leaders who shared stories of their personal journeys and discussed the issues facing the ¨ Diversity

“Having a lesbian woman in the highest position changes the perspective on everything. I appreciate that I can be a role model for women, lesbians and anyone who’s different from the stereotypes people have in their heads”

LGBTQ+ community included Patrick let alone ‘out’ senior executives – is often McLaughlin, CHRO at PepsiCo Frito-Lay, Amy frighteningly different. Taylor, President and Chief Marketing Officer Last year, Human Rights Watch reported that at Red Bull North America, and Katrin Suder, several LGBTQ+ activists from the Middle East former State Secretary at Germany’s Ministry and North Africa “expressed frustration” at the of Defence. one-dimensional international media coverage Inevitably, perhaps, the lion’s share of activity portraying the region as a black hole for LGBTQ+ regarding LGBTQ+ and the C-suite comes from rights. Such coverage fails to recognise the places such as North America, Europe and agency of LGBT+ activists from the region, or Australia where laws for same-sex marriage renders them completely invisible. “We don’t have been passed, tolerance levels are high and want the image any more of just being victims,” ﬁnding LGBTQ+ executives in the boardroom is Zoheir Djazeiri, an activist from Algeria, told a more regular occurrence. Human Rights Watch. “We want to speak about This is echoed by the number of LGBTQ+ reality, speak about violence, but also to [show executives across a wide array of industries that what is] positive.” appear on the OUTstanding Lists presented by Similar basic restrictions apply in countries the Financial Times, which annually celebrates such as Russia, where LGBTQ+ travellers going “those LGBT executives and allies who are not there for the recent football World Cup were only successful in their careers but are also advised to take extreme precautions as they creating supportive workplaces for other LGBT would “not only face the risk of violence from people”. More on this below. vigilante groups, but lack adequate protection from the state.” The chances of there being an Facing the fear LBGTQ+ business leader in Russia in the near Yet travel outside of these more enlightened future are positively remote, at least not one regions and the situation for LGBTQ+ people – that has openly declared his or her ‘out’ status.

28 OBSERVE 3/18 odgersberndtson.com Diversity

Elsewhere, Liesbeth Botha, a partner at PwC in South Africa, is one pioneer doing her best to change attitudes. Botha has been recognised on the FT’s OUTstanding Lists for her contribution and efforts to further LGBTQ+ initiatives as a senior role model. She is a co-founder and sponsoring partner for the PwC ‘Be Yourself’ network in South Africa, which arranges awareness and social events, and networks with similar outside organisations, striving to create an inclusive workplace where staff can truly “be themselves”. Says Botha: “Having a lesbian woman in the highest position changes the perspective on everything. I appreciate that I can be a role model for women, lesbians and anyone who’s different from the stereotypes people have in their heads.” Botha and her wife have been married for 10 years – ever since gay marriage became legal in South Africa – and have two children. In many other countries in the African continent Botha’s story would be not just rare, but impossible.

A culture of inclusion Jane Griffith, Odgers Berndtson’s National Diversity Leader in Canada adds: “There is much evidence that shows the negative It’s a sorry state of affairs, with no short-term mental and physical effects members of the positive developments likely. Even in those LGBTQ+ community suffer when they are countries where LGBTQ+ activism is at a high not able to ‘come out’. Our goal, both in the level – and there are a number of very high- workplace and throughout society at large, proﬁle LGBTQ+ senior executives, such as should be to create a culture of inclusion so Apple’s Tim Cook and Alan Joyce of Qantas – that people feel comfortable and can excel there is a underlying fear of a retrenchment, at being who they are. Then perhaps the turning the clock back decades. emphasis can be placed on assessing candidates based on their skills and abilities, Celebrating diversity rather than the ‘category’ they belong to.” Nevertheless, for Diageo’s Andrew Porter, the When asked what advice Diageo’s Porter global company’s Recruitment Transformation would give to young LGBTQ+ people who Lead and the Europe Lead of its Rainbow have aspirations to become business leaders, Network, which is its dedicated LGBTQ+ he replied: “Be yourself! Never apologise for employee group: “We know that for our business who you are and, most importantly, be proud to thrive we depend on having diverse talent of who that is and all the amazing things you with a range of backgrounds, skills and can offer. In my experience, no one is ‘just’ capabilities in each of the 180 countries in which the label people make you wear – we are we operate and that our employees must reﬂect all beautifully complicated, unique and our broad consumer base – and that of course different, and thankfully there is a growing includes LGBTQ+ people. We view diversity as realisation that embracing difference makes one of the key enablers that helps our business us all richer. We all have bias, but learning to to grow. Our values, purpose and standards set understand that and be conscious about it the conditions for us to respect the unique rather than unconscious means we become contribution each person brings.” more connected with people around us.” I

@odgersberndtson OBSERVE 3/18 29 ADVERTISEMENT FEATURE

From vision to execution: the importance of emotional capital

It’s no secret that leaders are supposed to have leaders should “ask, listen, and follow up”. Show vision. But too many business leaders focus the them that you’re doing so and that you value majority of their time and energy on creating their input. Observe emotions that aren’t clearly their grand idea, only to drop the ball when it articulated in words – those that are demonstrated counts. Interestingly, the primary cause for failure through actions, body language and facial isn’t lack of technical capability, poor project expressions. Mehta also stresses the importance management or any other procedural breakdown. of helping team members feel that they can be The reason most big ideas fail in execution is due open and vulnerable in front of colleagues. to simple human emotion. For most leaders, discussing emotions in the workplace is still considered a taboo topic. After all, this is business, where logic and reasoned arguments prevail. If an idea is strong and a strategy solid, there’s no reason feelings should stand in the way. The problem? Business is made up of humans, and humans are emotional creatures. Leaders can’t afford to ignore the emotional dynamics inherent in the execution of a grand vision. In fact, those INSEAD GEMBA Alumna Nadiya Lubnina, who are sensitive to these undercurrents and Head of Marketing at HoReCa.digital, adds: “I’m respond effectively to them can actually leverage always trying to watch out for the mood in the emotions to propel execution forward. According team. Even when just entering the office in the to Quy Huy, Associate Professor of Strategy at morning, I check in with my team how they are INSEAD, executives who do this increase the feeling, how the evening was and so on. This odds of successful strategy execution between builds an atmosphere of trust, and people need 20 to 30 per cent. to trust you in order to grow.” Tips on managing collective emotion For leaders who are attempting to navigate the Instead of perpetuating the business ‘norm’ collective emotions of employees, such ‘emotional of suppressing emotions, give people ample capital’ skills are essential. The stigma attached opportunity for constructive expression of their to feelings in the workplace must be overcome. feelings. In the words of Parin Mehta, Airbnb Otherwise, your organisation’s big ideas may Director for Asia-Pacific and INSEAD MBA alum, remain nothing more than just that – ideas.

Higher

How do religious organisations approach leadership learning recruitment, and what do their different methods say about the ‘talent question’? LOUISE HOFFMAN reports Religion

leadership – all backed by significant financial investment. Critics felt that some of the language and recommendations in the report belonged in the boardroom, but it also had plenty of supporters. Archbishop of Canterbury Justin Welby reminded the alentalentt acquacquisitionacquisition and retentionreten has so Church at the time: “We can’t simply go longlong been associated with the cut and on as we are if we are to flourish and thrustst of businessb at largelarge and within grow as the Church of England.” multinationaltinatio corporationcorporationss that it’s easy to forgetorget jjustust how critical iit is to other Theology and heritage aspectsaspectsects ofo societysociety – includinginclud religion. Four years on, and the Church has been Onene migmight hesitate to lilinkn the distinctly busy developing and harnessing the Tearthlyearthlthlyy ‘war‘w for talent’ withwith the energy and ideas generated by this transmundane missions m of a religious somewhat contentious document, with institution, built on faith and tradition two further reports helping to hone a – and such corporate terminology is quite new approach. understandably unwelcomed by most “The ‘Discerning and Obedience’ religious leaders. But, while finding the report, which looks at how we express right ambassadors – great people to our work theologically, has deepened support and spread the positive our understanding, particularly of messages of each faith – has never been episcopal ministry and the way in which ‘off’ the religious agenda, many of the we select people, while the ‘Cathedrals world’s main religions have, in recent Working Group’ report has underlined years, identified a need to sharpen their the importance of good leadership, focus on best practice. governance, management and team effectiveness,” says Caroline Identify and invest Boddington, the Archbishops’ Secretary It was a research report published in 2014 for Appointments, who leads the team that challenged the Church of England to responsible for supporting the think about the nature of its senior appointment and development of leadership roles. The 34-page report, bishops and deans. entitled Talent Management for Future Participation in recruitment lies at Leaders and Leadership Development the heart of appointments; the Church for Bishops and Deans: A New Approach, elects representatives to the Crown was prepared by a steering group led Nominations Commission that interviews by ordained Anglican priest and former potential bishops, and to the panels that HSBC bank chairman Lord Stephen select cathedral deans. Key to the Green – and had a mixed reception. development of the Church’s recruitment Calling for “a new approach to and training processes is a need to stay identifying and developing ‘talent’”, the true to its heritage while also looking to report stated that, going forward, “the the future. key issues for identifying leaders of the Says Boddington: “We seek to balance future will be around transformation a theological understanding of what it is impact, radical and imaginative message to be a Christian leader with the demands and a clear potential to make an impact of organisational management. That’s our in different contexts and across the constant challenge – holding those two wider agenda”. things together.” It proposed a refreshed leadership Some 160 people are currently enrolled development programme for bishops on the new leadership programme, which and deans, plus open programmes such has so far been received very positively, as a mini MBA, alongside the creation and while the selection processes for of a ‘talent pool’ for individuals who bishops and deans have drawn in best

ALAMY demonstrate potential for strategic external practice, the aim remains the ¨

@odgersberndtson OBSERVE 3/18 33 Religion

same: to find and nurture those with made it clear] that ‘we understand the the ability to communicate the gospel sensitive role of a senior imam and the message. “After all,” says Boddington, amount of pressure that’s on a senior “that’s who we are.” imam. So our role is to ensure that you In other areas of church ministry, have the full capacity to govern this talent and the approach to leadership space and, in a meaningful, successful recruitment take a different form. Behind way, be the religious and spiritual guide, the scenes in the back-office support and architect of the space. Our function of the Church of England, for responsibility as staff, as a team, even instance, Basil leRoux, Partner at Odgers as a board, is to ensure that you thrive Berndtson company Berwick Partners, in that capacity’. led the search for a Head of Senior “That sense of support and knowhow Leadership Development. “The individual of an intelligent institution that is in tune we hired came out of industry, as did with the times is what really piqued my their predecessor, so they were both interest, because you just don’t hear that commercial, public sector, not-for-profit kind of language passed around.” clients. For this particular role the requirements weren’t hugely different to Profiting from faith corporate recruitment in terms of skill set, Meanwhile, in Brazil, Maria Eugenia Bias but as with any role it’s about setting the Fortes, Partner at Odgers Berndtson context for the candidate in the early in São Paulo, has for the past 10 years stages – so, in this instance, there was a been working closely with the need to be comfortable in a faith-based education provider Marist Group – an environment,” he explains. administrative unit of the international Catholic community of Marist Brothers. Community recruitment During this time she has carried out In 2017, a report published in the USA assessments and searches for the core by the Institute for Social Policy and business as well as the back office, with Understanding (ISPU), whose mission appointments including Dean, Pro-dean is to empower American Muslims to for Higher Education, CFO, HR Director develop their communities, highlighted and board members. an altogether different approach to “Ten years ago you would seldom recruitment in a religious environment. find an executive participating on the A Community-Led Imam Search board of directors or taking on P&L Process took the Islamic Society of responsibility at a religious organisation, Boston Cultural Center (ISBCC) as its but nowadays they have executives case study to demonstrate how involving from the market as well as religious the local community in a thorough and representation,” she says. multi-tiered hiring process can achieve “Religious representatives need leadership success, at a time when many to have a very good academic American mosques are struggling to find background and are now recycling and retain suitable imams. studies to better understand In order to find a new imam who compliance, leadership and corporate would be the right fit for their specific governance, while executive candidates institution, the ISBCC carried out a must be results- and process-oriented, detailed community-needs assessment, with a long-term vision in alignment before forming an imam search with the institution. Profit is now just committee, launching a community as necessary as theology.” forum and designing a specialised With or without corporate influences, recruitment process. Importantly, the it seems that the answer to the ‘talent board chose to take a back seat and trust question’ for some of today’s religious the committee to lead the initiative with organisations is, quite fittingly, belief: the support of the wider community. not only in their traditions and divine Once selected, the new imam Sheikh missions, but in their futures – and in Yasir Fahmy reflected: “[The ISBCC their people. I

34 OBSERVE 3/18 odgersberndtson.com We understand the amount of pressure that’s on a senior imam

With 61 offices in 29 countries, we ﬁnd outstanding leaders everywhere in the world.

odgersberndtson.com Portraits of potential III

Marthe De Proft on her experiences with CEOx1Day and working at BlackRock PUSHING THE BOUNDARIES

aking part projects. I learned in Odgers about the asset TBerndtson’s management CEOx1Day programme industry and how in 2015 enabled me to BlackRock operates, gain practical insights in particular how into the daily life of a Aladdin CEO. I understood the (BlackRock’s theoretical concepts proprietary behind running a investment company and the management different skills required platform) works. to successfully do so, but In my current role as seeing these concepts relationship manager for applied in practice would be a clients who bought Aladdin, unique opportunity for a student I can combine that technical like me so I just had to apply. knowledge with my relationship- It was one of the best decisions I’ve made building and presentation skills, which to date. I shadowed Michèle Sioen from Sioen come more naturally to me. BlackRock has this Industries, the global market leader in coated unique culture where everyone is happy to help technical textiles and technical apparel. I really you or educate you; continuously striving to learn wanted to shadow her, as she was the only female and to improve is high on BlackRock’s agenda. CEO participating in the programme at the time. The challenge for my generation is that the Michèle knew every little detail about every so-called ‘war for talent’ is now fought on a global project and always asked the right questions, scale. You need to make sure you have a key while giving responsibility and support to the differentiator, or a combination of skills that is other senior members of her company. I could attractive to employers. Disruption is constantly really relate to her management style and felt very redeﬁning industry, and it is important to stay privileged to watch her leadership skills in action. up to speed with the changes. I joined BlackRock three years ago as part of its Not only is it vital to make sure you are graduate programme. Fresh out of university, the constantly educating yourself, but also the programme aims to give you the right skills to company you work for should realise this need succeed. It was a very steep learning curve as the and act upon it. team I joined was very technical, but not in the In the future it will be crucial for a manager to way we were taught at university. be able to build diverse and integrated teams. I had to learn coding languages and had to This is a very hot topic at the moment and will I ILLUSTRATION: PAUL RYDING PAUL ILLUSTRATION: apply that knowledge to drive forward strategic become even more so in the years to come.

@odgersberndtson OBSERVE 3/18 37 Crossing t h e digital divide

igital transformation Dremains an unprecedented and unstoppable evolutionary force in business today. Given the speed, scale and complexity of change unleashed by this technological tsunami, the key factor for successfully navigating these violent waters is the digital expertise of a company’s leadership. “In the next ﬁve years, we will

38 OBSERVE 3/18 Leadership

experience just as much change as we’ve seen in the last three decades thanks to a growing conﬂuence of emerging and next-generation technologies such as deep learning, a high impact strand of artiﬁcial intelligence; immersive reality, where virtual, augmented and touch interfaces merge; second Are you cultivating generation biometrics security a digitally relevant and advanced data science,” says Shivvy Jervis, an award- leadership model? winning tech futurist and a If not, says NATASHA leading innovation expert. According to Jervis, the D’SOUZA, the result could digital economy is growing at be catastrophic twice the rate of the wider GDP and, given the “several opportunities for the taking”, it serves as an imperative that business leaders must not only recognise but also respond to – now! Digitally aware leaders, CEOs and boards must be at the forefront, cultivating a digitally relevant leadership model. If they don’t, the digital divide will continue to widen and companies run the risk of fading into oblivion. Remember Kodak and how it underestimated the smartphone revolution?

The digital divide A 2015 McKinsey study entitled ‘Cracking the Digital Code’, revealed that most companies have yet to realise the full value of digital, primarily because of deﬁcits in leadership and talent – both key pillars for successful digital transformation. That same year, a MIT Sloan Management Review study found that only 44 per cent of ¨ Leadership

respondents from a pool of global managers and executives say their organisations are adequately preparing for digital disruption and an overwhelming I think most organisations recognise 70 per cent say they don’t have the skills needed to adapt as that change is imminent and that the a digital leader. In order to close the gap, strength of existing leadership, and boost revenue and ensure business sustainability, simply therefore the strength of the adding more digital roles, infusing existing roles with enterprise, depends on senior leaders a digital orientation, launching channel/function-speciﬁc being agile – not just managing digital digital initiatives and up-skilling existing senior leadership is change but learning to drive it as well no longer enough.

A new era in C-suite leadership “The mandate for digital transformation no longer rests change. “I think most was in the midst of a major purely with a ‘digital guru’ or organisations recognise that cultural reckoning and facing Chief Digital Officer or Chief change is imminent and that the crushing competition globally. Innovation Officer,” says Karen strength of existing leadership, Top CEOs at digitally forward Greenbaum, President and and therefore the strength of the enterprises are also increasingly CEO of the Association of enterprise, depends on senior proving to be younger, and more Executive Search and leaders being agile – not just so in growth markets such as Leadership Consultants (AESC). managing digital change but India and China versus mature “Digital transformation can learning to drive it as well,” adds markets in the West. “Asian no longer be a siloed activity Paul Vella, Partner and Head of companies are fundamentally in the C-suite anymore. It the Leadership Practice at more agile in the way they requires a collaborative, Odgers Berndtson in the Middle operate, in large part because intersectional approach that East. Vella points out that, in the founder still runs it very cuts across the enterprise and recent years, many C-suite entrepreneurially,” says Mark it doesn’t need a technologist executives in the Middle East Braithwaite, Managing Director leading the charge.” have been proactively reaching for Asia-Paciﬁc at Odgers Digital leadership by the CEO out to get coached in leading Berndtson. Braithwaite adds is key in order to bridge the gap through digital change. that the average age of the Asia- between a vision of digital As companies bear the Paciﬁc CEO is around 15 years transformation and its cohesive brunt of the need to rapidly less than the average CEO age result-driven execution. In fact, digitise and adapt to competitive in the US. extensive management research pressures, the most digitally emphasises that setting the tone forward companies often The digital gap for digital transformation is a bring in CEOs from different Company boards are also not top-down exercise – with its industry verticals to infuse immune to the digital imperative. chief agent being the CEO. “In the organisation with A growing number of boards, our recent AESC worldwide fresh thinking and an agile at the risk of losing competitive survey of C-suite clientele, 96 mindset. For example, Uber advantage and incurring per cent said the CEO needs to famously appointed former investor criticism, are moving change,” argues Greenbaum. Expedia executive Dara away from their dependably And it seems some CEOs are Khosrowshahi as the CEO cautious stance to address willing, even begrudgingly, to when the ride-hailing Goliath digitisation. With company

40 OBSERVE 3/18 odgersberndtson.com boards playing a key role in realities. Beyond individual visionary thinking and proven balancing risk management, improvement, these digitally deep expertise in value creation. promoting value creation forward boards are also That generation straddles the and ensuring long-term reengineering their very best of both worlds, analogue sustainability, it follows that constitution and ensuring that and digital, and is the ideal the board – not just the CEO their membership composition segue to creating some creative – must also proactively guide evolves in light of new strategic abrasion in boardroom an organisation through its imperatives. discussion: precisely the kind digital transformation. This internal overhaul may of friction that catalyses new Even with a digitally forward often mean that boards need thinking and new approaches,” CEO, an internal ‘digital deficit’ to move beyond subscribing suggests Shivvy Jervis. In this in the board can serve as a to legacy formulae when it respect, Asian companies major roadblock to digitisation. comes to the profile of an ideal appear to be ahead of the game. An increasingly common ‘quick directorial candidate, particularly “In APAC, most C-suites have fix’ for the digital gap in the when it comes to credentials someone in their late 30s/early boardroom amounts to bringing and age. Consider this: boards 40s. In boards, we have yet to in a director with deep digital of US public companies expect see this change but, with Asia expertise. In North America, members with corporate C-suite being such a digital driven there is a steady push towards experience. However, when the ecosystem that rapidly absorbs placing directors with digital pool of digital candidates is and adopts technology, this expertise in legacy companies, small, this criterion excludes change will surely follow,” such as when Facebook COO many entrepreneurial start-up says Odgers Berndtson’s Sheryl Sandberg was appointed veterans who are often the very Mark Braithwaite. to The Walt Disney Company’s individuals you need on board board in 2010. because they have amassed The talent question Several studies also point to a wealth of experience in an An MIT Sloan study revealed the fact that the digital gap is environment that demands that digitally maturing most prevalent at the board agility, risk-taking and organisations place a decisive level and often generational in collaboration. emphasis on developing existing nature. Recent research from “It’s time for younger talent and recruiting new talent: the Harvard Law School Forum individuals to have a seat on the 76 per cent of respondents from on Corporate Governance and board, particularly when they digitally maturing companies Financial Regulation indicates bring with them a history of attest to their companies that the average age of providing resources and independent directors in the WHAT MAKES A DIGITALLY opportunities to develop digital S&P 500 companies in 2017 SAVVY CEO? acumen. However, only 14 per was 62.4 years, and fewer than • A natural visionary and cent of employees at early-stage 25 per cent of companies having forward thinker companies and 44 per cent at • Tech savvy (not necessarily an an average director age of less engineer) but deeply familiar digitally developing companies than 60.6 years. Interestingly, with the digital landscape say that their organisations do. and perhaps unsurprising, is • Relational on- and offline, “The quest for talent proves inspiring and cultivating that information technology dynamic relationships in person even more competitive as firms boast the most age and via their digital network. companies seek to rapidly diverse boards, with a spread • Intelligence seekers: they identify and secure a develop a distributed of eight years. intelligence network within competitive advantage,” adds A more holistic and long-term the C-suite and their company AESC’s Karen Greenbaum. “The approach to digital and the industry most intrepid performers are the • Agile and humble: they know transformation necessitates they can’t know everything and cream of the crop and courted high-performing boards that so ask intelligent and relevant by some of the world’s most adopt a continuous questions, they accept that they formidable companies. The may make mistakes and they improvement mindset, whose are quick in recognising and question they ask in order to members constantly ramp up pivoting when they do make a decision is: ‘What’s in it their knowledge about • Open to the art of possibility for me? Does this company truly • Healthy appetite for risk digitisation and new business embrace digital opportunities? ¨

@odgersberndtson OBSERVE 3/18 41 Leadership

Do they operate in a way that daunt them. They are Integrative, intersectional and would challenge me and help persistent, fearless and collaborative teamwork is also me grow?’ And the presence unafraid to start all over again crucial, particularly in a day and of a well-enmeshed digital and they seek an environment age where hierarchies are culture is one of the first that accepts failure as part of eschewed and where diversity things they look for.” the innovation process.” and inclusion are crucial to carry The MIT study found that, a business forward to this next among digitally maturing Creating a digital DNA stage of growth. companies, 71 per cent of For high-achieving digital talent, Jervis recalls a recent advisory respondents believe their culture is the key. While the CEO engagement in which she company is significantly better should be both cheerleader and developed a mini “innovation able to attract new talent based catalyst for all things digital, an think-tank” at her client’s firm, on its digital advancement, enterprise that continuously pulling high-performers from compared to only 10 per cent evolves in the digital landscape across business lines and of those from early-stage depends on the presence of seniority levels. “The most organisations which tend to rely an entrepreneurial and refreshing and relevant ideas on short-term consultants to innovation-driven culture, set come from your people out in support their digital efforts. In in place by the CEO. the trenches, the ones cranking fact, it appears that a company’s How does a CEO drive such away at code or actually extended reliance on external an innovation-focussed culture? interfacing with customers. This short-term digital experts Greenbaum has some answers: innovation taskforce yielded a impedes long-term talent and “A culture of continuous learning fantastic funnel of ideas in eight culture development, as these and embracing failure is weeks and also massively experts conclude their important. Employees should boosted the morale of those assignments and take their feel empowered to ask involved, particularly as high digital knowledge with them. questions and encouraged to performers always want to feel As more new roles emerge try, even if they fail. Diversity challenged and appreciated.” in digitising companies, and inclusion is also vital as Greenbaum notes that positions multiple perspectives ultimately A paradigm shift such as Head of Growth and ensure a better final product.” With such a monumental Head of Innovation – roles that As this internal culture paradigm shift, when it comes evolved within the start-up develops and matures, with to enterprise leadership in the world – are now percolating more fully-fledged digital roles digital era, we’re at the tipping into traditional enterprises. in place, it concurrently acts as point. The future points to the Where will digitally ambitious a magnet for fresh digital talent exponential gains to be found organisations unearth the talent that is looking to be a part of in digitising what McKinsey they need to take them forward? an organisation that’s refers to as “the most “In Silicon Valley, or anyone committed to transformation. distinctive C-suite function”: who has worked in a similar How is this culture strategy. McKinsey’s ‘Cracking fast-paced constantly innovating characterised? Entrepreneurial the Digital Code’ report environment,” says Greenbaum, mindset, creativity, collaboration concludes that, over the next adding: “Former start-up and and the lack of hierarchy are three to five years, digitisation tech executives possess a some of the many qualities within complex enterprises will coveted blend of agility, highlighted as belonging to “the focus on “creating knowledge- inventiveness, curiosity and innovators”, in Braithwaite’s sharing and collaboration-cloud fearlessness which makes them words. Greenbaum suggests platforms at the level of a very desirable hire.” But for that, as an organisation brings in strategy.” These platforms this kind of entrepreneurial more entrepreneurial thinkers, will offer predictive insights talent to succeed at a legacy the success of digital on technology and new tools corporate, there is one transformation counts on the that the C-suite can use to important condition. enterprise culture encouraging remedy gaps, address crises “Entrepreneurial talent the ability to ideate, test, pivot, and create effective change. recognises that failure is innovate and constantly And isn’t that what every inevitable and it doesn’t communicate along the way. organisation wants? I

42 OBSERVE 3/18 odgersberndtson.com

Boardroom What’s

your

TONY GAFFNEY argues that recognising the importance of a Talent Plan that enables the effective execution of business strategies has never been more critical for boardrooms across the globe plan? Boardroom

t’s an indisputable fact evolves, it, too, has the right Active management that business strategies talent and competencies in And what about mitigating risk? Iare being reviewed on place to govern effectively. Who would the successor be if, much shorter cycles than ever Enlightened boards say, there was an unexpected before. Inextricably linked understand all of this and and unplanned emergency with these strategic reviews realise that they need to be requiring rapid replacement of a is an organisation’s Talent swift in making changes to key executive or board member? Plan (TP): one that can also their TP when circumstances or All of these elements should be be frequently recrafted to trigger events demand it, even factored into a dynamic TP. ensure the right talent is in if that is on a continuous basis. As EY put it in its recent place to tackle fast-changing report ‘Boards Turn to the Talent and often unpredictable Five top tips Agenda’: “Many forward-thinking business demands. What does a good TP look like? boards are adopting a broader In my view there are five key view of understanding a Grow your own talent elements at play. An effective company’s talent strategy and Many boards and leadership TP must be: mitigating human capital risk. teams are slow in recognising 1. Driven by the strategy or While these boards and, in this fundamental dynamic. changes to the strategy particular, compensation Where there is a TP in place 2. Informed by a clear view as committees remain focused on it is typically refreshed every to what the business model developing senior leaders and three to five years. I strongly and organisational structure building a diverse talent pipeline believe that is no longer viable requirements are going forward to fill key executive roles, many in a world where the speed of 3. Understanding of the key are also expanding their disruption, digitisation and roles that are strategically oversight to key talent indicators ultra-rapid marketplace changes important in the business for the overall workforce.” is faster than ever before. 4. Understanding of where your I would argue that the majority Although a truism, it’s also talent needs to be upgraded. of boards currently – and worth repeating that having the Be certain that the right people inevitably – spend a lot of time best talent is the lifeblood of any are involved and, if necessary, on governance and business organisation – ever more so in that new people are appointed matters but only occasionally this fluid world. And that means from within the business or focus on the strategic talent everything from recognising outside to effectively deal agenda. Boards traditionally and rewarding potential (the with rapid change focus on hiring and firing the best companies tend to ‘grow 5. On a continuous basis, CEO, executive compensation, their own’) to assessment and maximising the deployment reviewing and approving the development regimes and of your best talent to the leadership team and so on. ensuring your executive team most impactful roles. But what has changed in is adept at effectively recent years is the connection implementing talent strategies. Of course, boards also need to between the business strategy Broadening this out for a ensure that the right leadership and the TP, and the active moment, the mandate of the team is in place so that the management of that TP as the board – in addition to including company strategy is understood board partners with the CEO CEO and leadership by all; that employees in turn to drive greater agility and appointment and succession, understand their role in it and performance. It is an emerging and board appointment and that employee aspirations and practice, but it is also one that succession – should also potential are acted upon. is driving optimum results for include ensuring that a current Retaining great people is more forward-thinking boards. I TP is in place. By doing so it absolutely essential. Are you ensures that the organisation certain you have proactive Tony Gaffney is can effectively combat rapid executives in place who are Managing Partner, change. The hardest part, adept at making radical Board and CEO Services at Odgers perhaps, is often that the board changes to the TP when Berndtson in needs to also ‘look in the mirror’ strategic business needs Canada.

ALAMY to ensure that as the business demand it?

@odgersberndtson OBSERVE 3/18 45 Succession planning GROW YOUR TALENT Odgers Berndtson’s Active Succession Management enables organisations to deliver a pipeline of talent ready to fill critical roles at the right time

ny CEO – and Chair of the Board – Aremotely concerned about the long- term success of their organisation will have a succession plan in place. If you don’t have one then you should start worrying now! “But that’s only half of the story,” says Rob Cross, a Human Resources Director who has sponsored succession with multiple CEOs throughout his career. “How effective and how active is your plan? That is, are you merely paying lip service to succession by adding names to a spreadsheet, or do you have a dynamic process in place that gets the best out of your internal talent, while benchmarking them against external candidates and properly closing succession gaps?”

Setting a benchmark Liz Stewart, Head of Executive Assessment and Development at Odgers Berndtson in London, is clear: “Many organisations do a lot of plotting of internal talent, but it often fails to deliver successful outcomes.” Stewart gives an example of one of the many organisations she has worked with. It’s a common scenario. “When a big role came along, the

46 OBSERVE 3/18 Succession planning

identiﬁed internal successors were benchmarked against external candidates through the recruiting process, and an external candidate got the job. The organisation was baffled by the outcome because it felt it had selected successors with potential, but when we explored it further they had not benchmarked them through their succession planning process or provided capability development. Failing to get the job then left the executives demotivated and undermined the investment made into succession planning and talent development.” This is by no means an isolated example and demonstrates, according to Stewart, that investing in active succession management is key. Research suggests that if internal candidates do benchmark well against external candidates and get the top jobs they actually deliver a better result for the organisation in the longer term. This is at the core of the Odgers Berndtson Active Succession Management process: a particular set of actions designed to help organisations really leverage their best internal (and external) talent

ALAMY to succeed at the highest levels. ¨

OBSERVE 3/18 47 Succession planning

Comparing apples with apples of high performers are likely to be successful in How does it play out in practice? Stewart felt new, broader and more senior roles – 60 per cent it was unclear whether that particular of talent has the opportunity to improve their organisation had: performance by deepening their expertise.” • really identified individuals with the right Stewart adds that the first thing an organisation potential to progress to senior roles. should check is whether their potential model Performance provides permission to be adequately covers an individual’s considered as talent, but does not guarantee 1) intellectual capacity and flexibility success in broader roles with new challenges 2) emotional intelligence and how they use it to • invested in the development that prepares good effect interpersonally individuals for top roles. Increasing their 3) resilience and ability to deal with challenging self-awareness was a foundation to future situations, drawing on a strong inner compass and performance. But stretching their ability to delivering the sprint as well as the marathon deal with complexity, navigate diverse 4) motivation and discipline to learn and relearn perspectives and personalities, and persevere (Odgers Berndtson’s LeaderFit™ model is a key despite volatility, uncertainty and failure, tool in helping define an individual’s capability develops agility through learning – adapting on across these dimensions of potential). the job beats educationally focused learning • evaluated internal and external candidates Developing talent on a similar basis. There was no sense that While one can strike high on these four levels, “to there was a more in-depth assessment on progress, individuals also require the ambition to an equal and fair basis – providing an apples- release their potential in the roles being targeted, and-apples comparison. meaning that they have to want to be better and go further,” adds Stewart. “A critical consideration Says Stewart: “We felt that if we were involved for any individual is that they need to be available earlier in their succession and talent process, and want to take on new roles or challenges that we could have helped them identify potential are different as they arise.” more accurately, put together a development The next stage is developing talent. programme that was more stretching, while Research shows that highly also helping to track internal talents’ performing senior executives development against the broader pool: are very self-aware individuals. Active Succession Management.” “It’s a start,” says Stewart, “but then you need to help these Successful succession individuals apply their talent Active Succession Management equips the and be stretched through ‘on Chairman, CEO and HR team with an approach, the job’ experiences. Seventy processes and tools to identify accurately, per cent of our learning comes develop effectively, and retain a strong and ‘on the job’. What we offer diverse succession pipeline. It also enables is an action learning more effective external benchmarking and approach for executives market mapping to ensure comprehensive that organisations want to management of the succession pipeline, develop. These executives blending a mix of internal and external talent. take on real projects or tasks “A lot of succession management and planning that are stretching for them, has been about identifying the elite few that that they haven’t done might go to the top,” Cross emphasises. “But before, where they need to actually most of today’s MNCs realise that it’s work with others and have a very limited pool. To fully leverage the value clear personal learning of your talent, whilst preparing those with the objectives as well as potential to progress, you first need to be business goals. This type of classifying your talent appropriately and then development not only helps deploy and develop them in the right way.” prepare the individual, but “The interesting thing,” adds Stewart, “is that it also gives the business although the research is clear – only 29 per cent strategic flexibility as they

48 OBSERVE 3/18 Succession planning

assign their best people to areas where they can deliver greater value.” Receiving good feedback and coaching as they go through this process is vital. “This learning programme is appropriate for individuals with the potential to go for the top job, but it doesn’t exclude others who might go vertically upwards rather than horizontally,” says Stewart.

Harnessing potential Active Succession Management also manages the risks of losing internal ‘talent’ once they realise they have the potential. Stewart adds: “If the organisation doesn’t channel and nurture these individuals, they will quickly move on. Although I have seen this in mid-tier organisations, I have also seen it in organisations where the C-suite has been assessed for CEO succession: where there’s been a perceived lack of parity or movement by the incumbent CEO, resulting in them losing a number of C-suite directors to other organisations. Only there can they realise their CEO potential and gain the rewards.” Cross echoes these sentiments: “Making sure that you continue to set stretching performance goals according to their potential helps the executives feel they are being acknowledged and given the best chance. Making sure the CEO is sponsoring these individuals’ development and taking account of ongoing feedback as to how they’re improving, including the use of 360 surveys or coaching, is absolutely critical.” As in any other ﬁeld, managers want to see those they have invested in win in the same conditions as others. So if only 40 per cent of an executive’s performance derives from their experience and skills, assessment of leadership competencies and potential provides for a fairer competition when recruiting talent. Our in-depth LeaderFit™ assessments and Active Succession Management create not only a fair playing ﬁeld, but also equip organisations to develop individuals to realise their potential.” I

OBSERVE 3/18 49 The specialists in Watches, Jewellery and Pre-owned Timepieces

driven by time

+44 (0)1895 632100/676705 www.csbedford.co.uk [email protected]

Ofﬁcial stockists of Portraits of potential IV

Raymond Ledwaba on the invaluable experiences gained by being a young CEO LISTEN... AND LEARN

decided to take part We employ young software in CEOx1Day to get engineers and consultants Ian opportunity to who bring a youthful walk in the shoes of an energy to the company. inﬂuential business So being a young CEO leader in South Africa. is not a big challenge I wanted to get a for me from an age sense of what goes perspective, but my on in their daily lives.” biggest challenge So says Raymond with running the Ledwaba, who in 2015 business is being able shadowed Phuti to split my time into Mahanyele, then CEO of three zones. I need to Shanduka Group, a South spend time living in the African investment holding future, ensuring that we are company that has interests in working on developing the the resources, telecoms, food and business so that we create a beverage, property, ﬁnancial services, strong pipeline of deals and products energy and industrial sectors. that will take the business to the next level. Shanduka was founded by Cyril Ramaphosa, At the same time, I need to make sure I live in the the current President of South Africa. “As you can present so that we deliver quality products and imagine,” adds Ledwaba, “having an opportunity services to our clients, who expect nothing less than to spend a day with a CEO of Ms Mahanyele’s the best. Finally, I need to live in the past and ensure calibre is a once-in-a-lifetime opportunity. that we are learning from our mistakes and failures “What I learnt observing Phuti in action was and grow from them. Three time zones in one day!” that she didn’t do much talking in her meetings. Ledwaba believes there are three crucial skills She was present and engaged in the discussions at for running a small business: critical thinking and hand. Most of her contribution was in the form of always challenging the status quo; knowing when to questions to understand the issues better. This is a say ‘no’; and having the ability to take a step back, very important attribute for a leader. I try to listen see the big picture and relax. “As an entrepreneur, more and speak less in my everyday business I constantly need to remind myself that things take experience, although I will admit that this is not time – I need to trust the process!” an easy when people look to you for solutions.” Adds Ledwaba: “I think a key leadership question Ledwaba is now CEO at ITThynk, a small for young people when it comes to talent and software development and consulting company realising one’s potential in a disrupted digital age that started 12 years ago and now employs is to ask ourselves: what kind of world do we want I ILLUSTRATION: PAUL RYDING PAUL ILLUSTRATION: 35 staff. “We are a very young organisation. to live in?”

@odgersberndtson OBSERVE 3/18 51 Gen Y recruitment

ÁINE HURLEY, NICK nnovation has to start with always-connected world. recruitment. If you don’t Born in the early 1980s, CLARIDGE I and compete effectively for the their outlook, values and HARRIOTT PINNOCK best apprentices and expectations of work are graduates, your talent pipeline very different. Their access argue that will be compromised. You can’t to study, leisure, food and when it comes take out what you don’t put in. entertainment is immediate It used to be easy to recruit and transactional: online, to recruiting the best. Regular as clockwork, on the go, anywhere. talent from every summer in the UK (and A new report from the UK’s no doubt in many other parts of IGD (Institute of Grocery Generation Y, the world), well-known brands Distribution) lists what it the same old would make 150 entry-level considers to be the most ways just won’t hires, offering no more than important factors for millennials £25k/$40k, a basic car, and when deciding on a job. In cut it any more the promise of management order of importance these are: training. There’d be a long queue work/life balance, promotable and they’d take the cream. opportunities, training, company Those days are long gone. values and ﬁnally, salary. In response to this new Changing values generation with its new life By 2020, Generation Y – aka philosophy, a number of the millennials – will make up companies are trialling 50 per cent of the global millennial-friendly recruitment workforce. They have been initiatives that resonate with this raised in a constantly changing, cohort. Here are some of them: Gen Y recruitment

• When BrewDog launched its means the whole panoply of doing a store check. He US recruitment drive, it started social media), create video believes that candidates with a two-day interactive content that will resonate, share need to see and share his open house at its Columbus, images of company culture on passion for his customers Ohio facility. Candidates everything from Instagram to and the insights he gets pitched their skills and LinkedIn, and really immerse from it. He appreciates the BrewDog outlined its plans yourself in the corporate value of escaping the • Goldman Sachs ran adverts culture that you should be conventions of a stale for its graduates on Spotify demonstrably proud of. interview meeting room. • Ad agency O&M challenged Understanding how to use The lesson is clear: get out applicants to submit ‘the social media is, then, crucial: there and make some impact! world’s greatest pitch’ on deploy Snapchat for showing If you want to recruit from YouTube behind-the-scenes footage of the exciting talent pool that • The UK Armed Forces still the company in action – as it makes up Generation Y then runs recruitment ads on TV, but really is – and post videos on think like them, understand the message has changed from Facebook and Twitter to show them, resonate with them! I ‘see the world’ or ‘learn a trade’ what other employees think to one that emphasises a sense about the organisation and the Áine Hurley is a senior of belonging and comradeship. way it treats its people across member of the Board Practice the board. in the Odgers Berndtson London office, where she also Modernised media There are innovations in the leads the HR Practice, Nick To recruit top talent from interview process too. For Claridge is a Partner in the Generation Y you need to senior hires, a CEO of a food Odgers Berndtson Consumer speak their language, be manufacturing business insists Practice and Harriott Pinnock is an Associate in the present in the media that they on meeting board-level, Consumer Practice, both are familiar with (and that customer-facing hires while based in London 1

It took a collaborative team at Odgers Berndtson less than two months to find a board member for Swedish confectionery giant Cloetta Case history

Sweden, Finland, Denmark, Norway, the Netherlands, Germany and the UK, has 2,500 employees in 11 countries and has production facilities at eight factories in five countries. Last year it turned over 5.8 billion Swedish Kronor (approximately US$646 million) thanks to strong heritage brands such as Lakerol, Cloetta, Candyking, Jenkki and many others, so this was a major assignment for a major organisation. Cloetta’s Fossum Biner explains: “I had worked with Odgers before and had been impressed by their 2 extensive international network. They gave us a long list of some 20 qualified candidates for this ttracting top 1. Jelly bean role from various people in Europe talent can often production in and all were qualified on paper for Cloetta’s Dublin, be a lengthy the assignment.” Ireland factory process if securing 2. Toffelnut the right person, at the right time, production in Precision in process and in the right place is the priority Ljungsbro, Bengt Starke, a Partner in Odgers Sweden – as of course it should be. 3. CEO Lilian Berndtson’s Stockholm office with But sometimes the typical time Fossum Biner a focus on the industrial sector, frame has to be condensed when 4. Bengt Starke recalls precisely how the process 5. Lucy Harding the need is urgent or unpredictable. 6. Production unfolded. “Lilian contacted us on Just such a scenario occurred when in Roosendaal October 26, 2017 at 11am. We had Lilian Fossum Biner, Chairman of Borchwerf, the to prove very quickly that we the Board of Swedish confectionery Netherlands would be able to deliver despite 7. Alan McLean company Cloetta, contacted Raleigh the international requirement of Odgers Berndtson in Stockholm. the assignment. We managed to prove our capabilities thanks to

Seeking a specialist 3 the quick response from Lucy The brief was both clear Harding, Partner and Head of the and challenging. Fossum Procurement and Supply Chain Biner needed a new Practice in our London office. In a Executive Board member few hours, we had convinced Lilian – and she needed one that we had the network on an quickly – who was an international basis to manage a internationalist, a supply project like this.” chain specialist and In fact, Odgers provided Cloetta ideally someone with with extremely high-calibre CVs deep knowledge not 4 5 from within the FMCG industry in only of logistics but also Europe representing some of the of manufacturing. He or top supply chain leaders in the she had to be high proﬁle sector. Fossum Biner was duly and seasoned enough for impressed, not only with the a board position in a quality of the CVs but also with public company. the speed of the response. Cloetta operates in Says Starke: “We reached ¨

@odgersberndtson OBSERVE 3/18 55

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out to Odgers offices around 6 the world to seek names and received back potential candidates from Germany, Belgium, Holland, the UK, Finland and France. Even Singapore and the US had some ideas.”

The perfect fit After a thorough process, Alan McLean Raleigh, a former EVP Supply Chain for Unilever, was elected to the Board at the Cloetta General Meeting in April 2018. What was it about Raleigh that precisely fitted the bill for Cloetta? Says Fossum Biner: “Alan was selected for his supply chain Meeting the challenge experience and track record in a Although Fossum Biner is happy with similar business; his strong ability the work Odgers conducted for her, to make strategies and transform she is also aware that the talent pool them into results; his track record in is constantly changing. “Working with one UK company board where he Spotting the consumer goods and selling through made a significant impact; his high retailers,” she says, “the challenges intelligence and proven judgment; right talent and opportunities with digitisation his balanced personality. The other are formidable. This affects all parts candidates had three or four of with relevant of the business system and the talent these factors but not all of them.” requirements that go with it present Raleigh adds: “I found the experience a real challenge. Because the selection process with Odgers opportunities within digitisation are Berndtson very professional and is really tricky still developing so quickly, spotting smooth. Lucy Harding from the the right talent with senior and London office, whom I know relevant experience is really tricky.” from my professional network, Raleigh agrees: “Businesses that contacted me to explore my have a purpose that inspires will have potential interest in the an advantage as more and more Cloetta non-executive 7 employees look for reason in their role. From the brief working life. In a world where the discussion with Lucy it pace and frequency of change is sounded interesting so increasing, it is vital that Lucy connected me with organisations create environments Bengt Starke in that can adapt quickly and that Stockholm, who then support the constant development quickly followed up. I liked of relevant new skills and capabilities. Bengt’s simple, clear and The best employees want to be straightforward approach challenged and developed, and will to the selection process leave if they do not see the potential – he provided quick and for self-actualisation. Given that the constructive feedback at leaders of organisations are often each stage and was less digitally aware than many of the always available to answer new recruits into organisations, any questions I had without reverse mentoring might be required compromising client to ensure leaders understand this confidentiality.” new world themselves.” I

@odgersberndtson OBSERVE 3/18 57 Taking the fast track Critically, because the topic is intended to be covered comprehensively, qualified ATT learners will usually be able to apply for jobs in their field immediately upon completion. And that’s the attraction to young teens who want to bypass the traditional – and slow – career path in faceless ENT organisations. There are numerous opportunities out there. Take, for example, the School of Accelerated Learning (SOAL) in Hyderabad, India, which offers a full-time, 14-week ION! coding boot camp. Its Exponent %RRWFDPSVIRU\RXQJWHFKLHV Program in Web Development DUHVSURXWLQJXSHYHU\ZKHUH (TEP) helps students “master ^ 7KLVLVWKHUHDOGHDO the fundamentals of full-stack ZKHUHOLJKWQLQJWDONV JavaScript, with a focus on DQGLQWHQVHZRUNLQJDUH React, NodeJS, database WKHRUGHURIWKHGD\ design, and APIs. The School ±ZLWKELJSUL]HVDW of Accelerated Learning looks WKHHQGRILWLQWKH for applicants who are OXFUDWLYHZRUOGRI passionate about learning software development in a VRIWZDUHGHYHORSPHQW collaborative, immersive and -RQDWKDQ$UQROGUHSRUWV accelerated environment.” ` ‘Immersive’ and ‘accelerated’ are the key words here. If you’re not up for intense tech hard f you are a young, aspiring labour, you’re heading into the Imillennial with ambitions wrong career. “The core to work in the tech space elements of TEP,” say SOAL, then climbing your way slowly “include meta-learning, a up the corporate ladder for comprehensive curriculum, years on end is no longer fluid classrooms, learning by an appealing proposition. building, and exceptional What you need is a bit of faculty. Instructors are all fast-track learning. And let’s experienced software not beat about the bush here: developers and will introduce we’re talking tech boot camp. concepts through lecture, live These intensive coding courses coding, lightning talks and – either online or in bricks-and- hands-on demonstrations.” mortar buildings – aim to ‘Fluid classrooms’, ‘lightning ensure students are qualified talks’ – this is learning as quickly as possible in their 2018-style. chosen subject. The boot camps can last anywhere between a Hands-on experience few days and a few months, Techies arriving in London

PRESS ASSOCIATION PRESS depending on the subject. during August of this year

58 OBSERVE 3/18 odgersberndtson.com Training

for a one-week, full-time React, then you will be a whizz at Redux, GraphQL boot camp were Ruby on Rails, JavaScript, React. not disappointed. In a seven-day js, algorithms, advanced period expert coaches and algorithms, CSS, SQL, UX, HTML, mentors worked alongside boot design principles, JQuery… campers to master the React ecosystem in order to return to Sustainable growth? work as a React specialist. But is the coding boot camp And no, I don’t know what bubble about to burst? In React, Redux and GraphQL are autumn 2017 Reuters reported either.* What I do know is that that “closures are up in a ﬁeld the blurb for this particular boot now jammed with programs camp made it abundantly clear promising to teach students in that they were offering “extremely just weeks the skills needed to rapid, intense learning”. get hired as professional Reed UK – part of one of the coders. So far this year, at least world’s largest employment eight schools have shut down agencies – said: “Many coding or announced plans to close.” boot camps are designed to be Added Reuters: “Collectively, hands-on. So instead of lots of these boot camps expect to time spent in lectures, you’ll be graduate 23,000 students this putting your skills to the test in year [in the US and Canada], a series of practical exercises. more than double the 10,333 With the industry growing by students that graduated in 2015, 150 per cent and average according to Course Report, starting salaries of £30,000+ which says starting salaries for qualiﬁed web developers, average around $69,000.” there’s never been a better time So if you are keen to code to get into coding.” – and want a fast track to high earnings from day one – then a No job, no fee coding boot camp stint may be So appealing are these intensive just the ticket. But you’ll need courses that cio.com even stamina, the ability to cope produced a list of the Top 10 with lightning talks and coding boot camps. Number military-style intensiveness one on its list is AppAcademy, – and a wallet to match. I a full-time, intensive “full-stack developer training program” *React is a declarative, efficient, and that spans 12 weeks. No previous flexible JavaScript library for building coding experience is required. user interfaces. It lets you compose complex UIs from small and isolated “Students use hands-on projects pieces of code called ‘components’. to build Ruby on Rails and Redux is a predictable state JavaScript applications, and container for JavaScript apps and helps you write applications that learn the ins and outs of web behave consistently, run in different development in a completely environments (client, server, and immersive environment.” native), and are easy to test. GraphQL is an open-source data Interestingly, AppAcademy query and manipulation language, offers a tuition deferment and a runtime for fulfilling queries programme wherein students with existing data. GraphQL was developed internally by Facebook pay only if they land a job within in 2012 before being publicly 12 months of completing the released in 2015. programme. Which might seem Ruby on Rails, or Rails, is a server-side web application just as well, as this online course framework written in Ruby will set you back $17,000. But under the MIT Licence.

@odgersberndtson OBSERVE 3/18 59 Post Tweets from the top

Talented individuals looking to join the C-suite are turning to social media to see how a company’s ethos and behaviour plays out in the public arena Social media

hat do those individuals Providing people with an insight ABOUT Wabout to join the C-suite SHAREABLEE into C-suite culture worked look for most when Launched effectively for Cisco, who publicly considering taking up a position? in 2013, recognised those who had made Shareablee And where do they turn to get at empowers significant contributions to business least some of that insight? brands by operations in the APAC region. Thanks to social media, it’s easier providing data Rather than simply offering an that can help than ever for a prospective candidate them define and award, the company opened up to mine down into a company’s drive success on opportunities for C-suite members behaviour and look at how CEOs social media by for fireside chats, panels and arming them and other senior executives portray with metrics and webinars. It allowed them the themselves and their organisations predictive opportunity to communicate more on platforms such as Facebook, analytics that freely with the wider business, inform powerful Twitter, Instagram and YouTube. best practices. demonstrate the value they have Just a few short years ago, who It is the leading in their teams and encourage an would have envisaged a world authority on open display of corporate C-suite audience where things have evolved to such intelligence, life across social. an extent that C-suite executives competitive Diana O’Brien, Global CMO at actively use the social space to benchmarking Deloitte, and Lauren Sallata, CMO and actionable reward and recognise high insights across at Panasonic, both stress the achievement and extol the virtues of the social web, importance of C-suite executives their C-suite? It’s a radical shift and measuring more having strong relations with other than 500,000 one that can no longer be ignored. global properties C-suite executives, and they both Shareablee analysed 250 business across all major advocate these opinions on social. leaders to understand what content social platforms “Having alignment across the C-suite every day. their companies published targeted It helps is critical,” Sallata says. “We’re highly at C-suite individuals – either those marketers focused on talent, development and that are entering their first executive quantify the culture.” Being able to convey this value of their role or an experienced board audiences by message across, say, Twitter gives member with a global reputation providing C-suite candidates an insight into looking to develop his or her career. insights and that company’s values to determine data-driven The posts range from those that assessments if they personally align with them. give exposure and recognition to about how Using social media to promote exceptional individuals, to CEOs consumers corporate culture at C-suite level, are engaging outlining their own advice for with their brands companies can provide information success in these vital positions. and competitors on the type of personality that will on Facebook, make a successful C-suite member Power of social Twitter, Instagram, based on their leadership qualities. Reward and recognition plays a Google+, Tumblr Mike Preston, Chief Talent Officer strong role in building a brand that and YouTube. at Deloitte US, demonstrates this people want to work for. Whether perfectly: his message to all this is C-suite executives using their prospective leaders concerns how social media pages to give credit they can work with others and build to their team or the executive on long-term happiness in the business. the receiving end, it provides a “A healthy and positive company compelling opportunity for culture,” he tweeted, “is a top factor companies to celebrate successes in determining employee happiness.” in the workplace and give praise This becomes most effective when ¨ ILLUSTRATIONS: IKON IMAGES IKON ILLUSTRATIONS: where it is due. coming directly from the CEO.

@odgersberndtson OBSERVE 3/18 61 Social media

Outspoken leaders on social use the and actioned by senior leaders. platform to personally praise their GE, through a podcast programme C-suite team, with T-Mobile leader built around Leadership Learning, John Legere giving praise to Jeff allows aspiring executives to gain a Binder, his EVP, following a ‘Fierce 50 closer look at life in the C-suite and Executives’ award. Legere tweeted: how their actions are vital in driving “Not surprised to see you featured as growth throughout the business. one of @ﬁercecable’s 50 executives There are many other examples of reshaping the business. Can’t wait this kind of direct activity across to Un-carrier TV with you!!” Binder the social media world. responded: “Thank you @johnlegere. The key is for CEOs to embody An honor to be part of the greatest their brand and use it to build a team in wireless @TMobile and powerful team, all of whom share sooo excited as we get similar values. In a recent ready to un-carrier TV and tweet by Michael change cable for good!! Bloomberg, both he and #areyouwithus.” And so on. Tim Cook of Apple agreed that “one of your primary Embodying the brand responsibilities is to Post CEOs have become a decide what the values powerful voice in the social of your company are and space in recent years, lead accordingly”. publicly declaring what their For some CEOs, company stands for and however, the answer is why they are good at what much simpler. Jeff Weiner, they do. Ultimately, they CEOs have CEO at LinkedIn, was are an embodiment of the asked recently by an brand; they work to build a become a executive joining his ﬁrst better future, and engaging powerful voice in board: “What makes for an with their top executives effective board member?” globally is an essential part the social space His answer: “The insight of the role. to intrusiveness ratio. Inevitably each CEO in recent years How much value you or C-suite executive will contribute to discussions express this in their own divided by how big of a particular style on social distraction you are.” media. Richard Branson Social will continue to continually stresses the evolve in the recruiting importance of culture across world as new platforms the whole of the Virgin emerge to engage with Group, spending time with candidates. In the near employees on different future new forms of media initiatives that help Virgin feel such as Instagram long- like a place of value to work at. form video and the evolution of Whether this is the culture of LinkedIn could be deployed when adventure or how to incorporate giving advice. As the market matures, ‘play’ into work, he gives a compelling these platforms may well become view of not only how culture works, much more critical for those looking but also how it should be taught to progress to the C-suite level. I

62 OBSERVE 3/18 odgersberndtson.com Offices worldwide

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Observe is edited, designed and produced by Archant Dialogue Editor Jonathan Arnold For advertising sales on behalf of OB International Search Limited (OBIS) trading as [email protected] enquiries, please contact: Odgers Berndtson. Production Editor Matt Colley Head of Advertising Archant Dialogue is part of Art Editor Claire Leibrick Isobel Robson Tel + 44 (0)1603 772325 Archant Community Media Designer Matt Copland isobel.robson@ Observe Opinions expressed in are not necessarily those of OBIS/ Account Director Mel Wilcockson archantdialogue.co.uk Odgers Berndtson or Archant Dialogue. Material contained in this Account Manager Laura Stringer Advertising Sales Executive publication may not be reproduced, in whole or in part, without prior Art Director Richard Berry Rogan Twort permission of the publishers. ©Archant Dialogue 2018 Content & Brand Director Ryan Battles Tel + 44 (0)1603 772447 Archant Dialogue, Prospect House, Rouen Road, Norwich NR1 1RE, UK rogan.twort@ Agency Director Zoë Francis-Cox archantdialogue.co.uk archantdialogue.co.uk

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