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Is U.S. Discord Reshaping the World? by Glenn Rifkin

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Is U.S. Discord Reshaping the World? by Glenn Rifkin KORN FERRY KORN Harvard's Michael Porter: Mastering Competition TALENT + LEADERSHIP BRIEFINGS PLUS: Is U.S. Discord When Powerful Reshaping the World? Bosses Lose It VOLUME 7 VOLUME 2016 ISSUE NO. 2 8 $14.95 US / CAN / $14.95 US UP. IT’S REWARDING TALENT WITH MORE THAN COMPENSATION. Your best people want more than money, they want purpose. Korn Ferry Hay Group helps you align your organization to your people—developing, engaging, and rewarding them to reach new heights. So the leaders of your business can do what they do best, apply their passion to meeting your organizational goals. Get your organization to UP at kornferry.com/haygroup High levels of employee engagement can boost revenue growth up to 2.5x. UP. IT’S REWARDING TALENT WITH MORE THAN COMPENSATION. Your best people want more than money, they want purpose. Korn Ferry Hay Group helps you align your organization to your people—developing, engaging, and rewarding them to reach new heights. So the leaders of your business can do what they do best, apply their passion to meeting your organizational goals. Get your organization to UP at kornferry.com/haygroup High levels of employee engagement can boost revenue growth up to 2.5x. CONTRIBUTORS explore. SIMON DAVID CONSTABLE BERREBY restore. For years, Constable David Berreby is a Gary Burnison was the face of The writer who focuses on Chief Executive Officer Wall Street Journal— what makes people repeat. at least for those who tick, individually and Michael Distefano tuned in to his in teams. He is the Chief Marketing Officer & regular noon- ILENE President, Korn Ferry Institute The deepest blue seas. The brightest stars. Breathtaking time show on GOCHMAN landscapes. After sailing with Princess Cruises®, you’ll WSJ.com. Ilene Gochman is a Jonathan Dahl Today, the Korn Ferry senior Editor-in-Chief return home rejuvenated and rich with new memories. author and partner and global economy lead for CEO succes- Explore our exclusive Discovery at Sea™ experiences, Glenn Rifkin expert is a sion and assessment. indulge in made from scratch cuisine crafted by award- regular con- Gochman has spent Managing Editor tributor to the the past 25 years winning Chef Curtis Stone, or get your most restful sleep Journal, as well as Bar- helping executives, author of “Us and Melissa McCoy at sea in our Princess Luxury Bed. Travel the world with ron’s, TheStreet.com, boards and organiza- Them: The Science of Copy Editor U.S. News & World tions improve their Identity,” and his work Princess and come back new.® Report and the South business effective- has appeared in The China Morning Post. ness with a special New Yorker, The New emphasis on CEO York Times Magazine, succession. Strategy & Business and many other publications. Creative Directors Robert Ross RENE Roland K Madrid MILOT Candace Lockley Working in oils or TED digitally, the Toronto- MORRISON based illustrator Rene Ted Morrison, an inter- Marketing and Circulation Manager Milot has earned an nationally published, Stacy Levyn impressive list of inter- award-winning MARTIN national honors. As an photographer Project Manager COYNE image-maker his aim in New Tiffany Sledzianowski For the past 15 years, is always to respect York City, Coyne has served the essence of the has done Digital Marketing Manager as a board director, message and convey work for Edward McLaurin advisor and gover- a visual solution that some of the nance evaluator for engages the viewer. world’s top Contact your travel consultant a diverse group of luxury brands, Marketing Coordinator or call 855.288.8083 | princess.com public, private, family- including Tom Ford, Naz Taghavi owned and early stage L’Oreal, Tiffany and companies. He focuses American Express. on helping directors, CEOs and other C-suite executives im- Contributing Editors prove the relationship Barry Adler between management and boards. Lexie Barker The aim for Briefings David Berreby Simon Constable is audacious: to provide Martin Coyne great insights to help Patricia Crisafulli Lawrence M. Fisher leaders lead. Not by telling Hank Gilman Doron Levin them what to think, but P.J. O’Rourke what to think about. Peter Zheutlin ©2016 Princess Cruise Lines, Ltd. Ships of Bermudan and British registry. From Travel + Leisure, August 2016 *Princess Luxury Bed on select ships. See website for more details. 2 Briefings On Talent & Leadership explore. restore. repeat. The deepest blue seas. The brightest stars. Breathtaking landscapes. After sailing with Princess Cruises®, you’ll return home rejuvenated and rich with new memories. Explore our exclusive Discovery at Sea™ experiences, indulge in made from scratch cuisine crafted by award- winning Chef Curtis Stone, or get your most restful sleep at sea in our Princess Luxury Bed. Travel the world with Princess and come back new.® Contact your travel consultant or call 855.288.8083 | princess.com ©2016 Princess Cruise Lines, Ltd. Ships of Bermudan and British registry. From Travel + Leisure, August 2016 *Princess Luxury Bed on select ships. See website for more details. CONTENTS “I do not expect the Union to be dissolved—I do not expect the house to fall—but I do expect it will cease to be divided. It will become all one thing, or all the other.” — Abraham Lincoln PICTURED HERE IN A DIGITALLY REMASTERED VINTAGE PORTRAIT COVER STORY Divided We Stand / 28 Is U.S. discord reshaping the world? By Glenn Rifkin COVER ART By Rene Milot “CROSSING THE DELAWARE IN 2016” 4 Briefings On Talent & Leadership FEATURES ON THE HORIZON THE LATEST THINKING / 8 The The Price of Pay Hikes All-Powerful HIRING LINES / 10 Boss / 40 A True Test of Character Bosses are under growing pressure. MONEY TALKS / 12 Guess who feels Pay Inequality in Eastern Europe it the most? By David Berreby SURVEY SAYS / 14 When Having Activist Employees Is Good HISTORY LESSONS / 16 The Boom Frank Lorenzo: Flying Far. But Was It Too Far? of the Inner City / 48 COLUMNS TEXTING IT Cities around the world are being Q&A / 26 THE reborn with an influx New Rules of young talent. GLOBAL ECONOMY / 20 of Multitasking By Lawrence M. Fisher Simon Constable DOWNTIME The NEXT Competitive IN LINE / 22 REFRESHED / 64 Ilene C-Suite Cycling Edge / 56 Gochman in the Canary Islands A Harvard prof of some fame has OPEN TABLE / 68 a new game plan BRIEFINGS Your Next Business for the U.S. FOR THE Lunch... BOARDROOM / 24 By Glenn Rifkin Martin GADGETRY / 70 Coyne Connected ... Always PLUS “When famine strikes ... shared FROM ENDGAME / 72 THE CEO / 6 Jonathan purpose splinters into self-interest.” Gary Burnison Dahl KORN FERRY ONLINE Check out the new Korn Ferry Institute website, revamped and recharged with an array of timely features and compelling profiles, as well as new kornferry.com/institute videos and podcasts. The The Man Who The Coolest in Boardroom Defined Competitive New Computer Use Crisis Advantage Remember the movie “Minority Report”? The remarkable computer You’re on the board of Goldman The author of one of the most interface that Tom Cruise used Sachs, with a half-hour to make influential books on competition, in the film is actually real and out a crucial call in the middle of Harvard Business School there today. Listen to the podcast the financial crisis. As a board Professor Michael Porter talks in interview with John Underkoffler, member for Goldman and the a two-part podcast the creator of that technology, Mayo Clinic, Bill George offers a about his concerns as he tells us about rare insider look at the need for over America’s losing the tools that board chemistry. its competitive edge. we will use. Issue No. 28 5 FROM THE CEO The Bitter Harvest of Divisiveness s this year’s U.S. presidential race kicks into high gear, the left has moved even Afurther left and the right further right. If you could graph the result, it would resemble a barbell—two clusters at the extremes and only a narrow connection between them. No matter who wins the election in November, the next president of the United States will face a heavyweight challenge: lifting a divided society out of entrenched differences and into a common mission or vision. Don’t expect that to be easy. Divisiveness in politics is certainly nothing new. As The New Yorker observed: “The strong partisanship of the American electorate has been a strain running through political science for decades … ” Abraham Lincoln is remembered as one of the greatest U.S. presidents of all time, arguably because he found a way to lead through the extreme of “a house divided.” Before his election, he faced numerous rivals who despised him (some he later recruited for his leadership team, like William Seward, his secretary of state). And let us not forget the obvious: Lincoln led during the Civil War. Now, the U.S. is waging an ideological battle against itself. Building walls in immigration policy, breaking up big banks, weighing the benefits of Obamacare, or any of the politically charged rhetoric of the day are best viewed as symptoms—not the cause of the political divide. 6 Briefings On Talent & Leadership BY GARY BURNISON This ideological battle is as old as the Neolithic poor harvest. When you perceive your livelihood and Revolution some 10,000 years ago when people first lifestyle (i.e., “survival,” as we know it) are threat- learned to cultivate crops and domesticate animals. ened, shared interest feels like an altruistic luxury No more roaming after the herds for food; suddenly few can afford. Feeling threatened, people look for there was a new option—staying in one place near someone to blame, from illegal immigrants to the a freshwater source, growing crops and storing the super-affluent “1 percent” to terrorist cells in Belgium.
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