CLUSTER 12 St. Gallen Symposium 2011 Just Power Programme st 41 St. Gallen Symposium University of St. Gallen, Switzerland 12–13 May 2011 12–1341 MAY 2011 1 2 Editorial At the 41st St. Gallen Symposium, the International Content 3 Students’ Committee (ISC) addresses a topic of particular importance: “Just Power”, a subject that Just Power promises to be particularly rewarding, because “power” is a truly global force with relevance to Cluster A: The power of politics and arms many of the economic and political fields that the St. Gallen Symposium has been championing for Cluster B: The power of money and ownership decades. The first part of this brochure offers you Cluster C: The power of voice indepth insights into the topic of the 41st St. Gallen Symposium, a theme subdivided into five clusters. Cluster D: The power of leadership and authority Differentiated comments and statements from speakers and Leaders of Tomorrow of the upcoming Cluster E: The power of values and ideas “3 Days in May” offer a thematic glimpse of the topics addressed and present various opinions on “Just Power”. The second half of this brochure People 17 contains the detailed programme which provides an overview of the sessions and the respective speakers Topic Leaders at the symposium. In pursuing our goal of supporting and Leaders of Tomorrow enhancing intergenerational dialogue, this year we are particularly proud to present St. Gallen Connect, a web platform which allows you to easily get in Programme 12–13 May 2011 19 touch with our Leaders of Tomorrow. Furthermore, St. Gallen Connect provides you with an intuitive Programme interface to organise your individual stay at the St. Gallen Symposium. Thursday, 12 May 2011 The long-lasting success story of the St. Gallen Symposium would never have been possible without Friday, 13 May 2011 the faithful intellectual and material support of our numerous patrons and benefactors both at home Background Sessions and abroad. We would like to take this opportunity to express our cordial thanks for their enormous commitment. General Information 31 st On behalf of the 41 International Students’ Committee (ISC), we would like to wish you a St. Gallen Connect fascinating and exciting read, and we look forward to welcoming you to St. Gallen in May. Symposium Site Dominik Biedermann International Students’ Committee (ISC) Garry Spanz Christoph Stübi St. Gallen Foundation for International Studies Head of the Organising Committee 2010/11 Circle of Benefactors Donators Get to know our new platform in this brochure on page 31 or on connect.stgallen-symposium.org 41st ST. GALLEN SYMPOSIUM 12–13 MAY 2011 3 Just Power Just Power 4 like mining. The third factor is the increasing role of government and the importance of managing a broad array of stakeholders – business leaders are spending a lot more time on regulatory issues and broader stakeholder management. On the internal side, the old adage it is lonely at the top is more true than ever – as organisations become larger and more global, many CEOs struggle to find people they can really trust to counsel them. And the world seems to be constantly full of surprises, so how do you deal with volatility and make sure «There is a real that you are agile enough to respond. A key part of sense of a new the job of a leader in an organisation is to provide stability, but you also have to be able to be flexible era dawning.» in this volatile period. Dominic Barton, Focusing on the first point, this sense of a new era McKinsey & Company dawning. How different will it be? We have at least four or five major forces out there which will all come together in the next ten years and are causing some CEOs to step back and say, “we better really challenge ourselves, because all these major changes are happening at once”. The first force is the rebalancing of the global economy and the dramatic and significant growth of the emerging markets. It is almost certain that the bulk of global growth will now come from these markets. There will be 900 million new middle class consumers in Asia over the next ten years. The second force is technological changes that are happening incredibly fast. This has profound implications for how you serve and interact with your customers and organise yourself. Or think about cyber security. It has become a big issue as companies become more data driven. Then there are growing constraints on natural resources and requirements for increased resource productivity “What comes across my desk’’ was the title of to fuel the dramatic of emerging markets. I am your session at last year’s St. Gallen Symposium. talking about the oil, iron and copper and all the Just Power Looking back at the last twelve months, what are basic materials that will be needed to fuel this your key takeaways from all the topics that crossed growth. Another force is demographics and the your desk? aging of many societies across the planet – I was There are three trends that are common to many told that by 2050 there will be more 60+ year olds Power relations are at the basis of all social interaction, economic activity and topics coming across my desk. First, there is a real than children under 15 years of age. political thinking. Whether we like it or not, power is a defining force on which sense of a new era dawning, that the next decade is going to be very different to any decade we have Speaking of rebalancing, what do you expect from people thrive. But power has ominous connotations and “Just Power”, the had over the last hundred years. I hear more and Asian economies in the future? st headline topic of the 41 St. Gallen Symposium, picks up on this ambiguity. The more leading organisations say we need to really Overall I am bullish, but I do not believe in “straight title alludes to the necessary, but legitimised use of power within the various challenge some of the fundamental assumptions lines”. There is an underlining force which is positive, areas of politics and economics. But at the same time, it leaves no doubt that it we have about our business because so much because urbanisation and a rising consumer change is occurring. The second factor is the pace society will create demand and growth. But it is is essentially power that defines social interactions. In a lead interview, Dominic of technological innovation. Its rate is three times going to be more volatile than we think. The idea Barton, Global Managing Director of McKinsey & Company and a familiar of the faster than that with which management can that economies can keep growing at 8%, or 10%, or St. Gallen Symposium, sheds light on power relations in the context of current keep up. I see that right across the board, in every 11% for the next 10 or 15 years, I just don’t buy it. I affairs and long-term strategies. industry, from banking, to retail, to even industries cannot think of any country that has gone through 41st ST. GALLEN SYMPOSIUM 12–13 MAY 2011 5 Just Power Just Power 6 “Just power”, the topic of this year’s St. Gallen yourself. Thirdly, it is about being vulnerable, which Symposium, refers to both a realistic and a idealistic very much goes against the old model of leadership. school of thinking. Which one is likely to prevail in I think you need to know what you don’t know or politics and economics over the coming years? what you are not good at or be prepared and open I think the idealistic school will dominate. I think for not knowing some things and being transparent we are looking at a much more dispersed model about what you are not good at doing. on every dimension in terms of how organisations are run. For example, in business, in the old model From the Middle East to Wikileaks, we have seen you had a very strong visionary CEO at the centre that the power of voice can embarrass or even of thriving things. That model is outdated. There topple regimes. How should we adapt to this new are just too many issues, too many opportunities, era of extensive communication? too many things happening for one person to Firstly, we should just acknowledge that the Dominic Barton (CA) handle. You need a broader leadership group to separation of public and private risk is over. is Global Managing be able to get things done. I think that, in terms Politicians, business leaders, academics – everyone Director of McKinsey the 10,000 Dollar GDP per capita level without a lot of real value creation – that creates the poten- of organisational leadership, we will see a shift has to realise that the kind of separation which & Company. In his 25 some sort of financial or economic crisis. They are tial for bubbles or collapses. Thirdly, you have polit- towards the more idealistic view. If you look at existed before no longer exists. We will continue to years with McKinsey bound to have challenges. And those challenges ­­­­­­­­­­­i cal and business elites who are unresponsive or trends in innovation, things are moving much more see people using technology, e-mail, Facebook and & Company, he has given tighter global interconnections will affect all unaccountable to the needs of the broader popula- towards open architecture than doing it internally. all of that. However, in some important discussions advised clients in a of us. tion. These are some indicators of tension spots – it We are also trying to do that in McKinsey ourselves.