Sharing insights from Brunswick colleagues around the world on a SP TLIGHT medley of topics

n 1899, a parliamentary candidate from Oldham stood I to address a local church gathering. “Never before in the history of Oldham have so many people had so much to Of TIME & PLACE eat,” he declared. As a junior minister nine years later, the same politician stood beside an irrigation project in Africa and said, “Never before in the history of Africa has so much water been held up by so little masonry.” Before he became the greatest orator in British history, before he won the Nobel Prize in Literature, Sir Winston Churchill gave speeches that surely generated some mirth. “He was renowned throughout his career for lavishing verbosity on issues that simply didn’t warrant it,” said Philip Collins, the author and speechwriter for former British Prime Minister Tony Blair. Appearing on an Intelligence Squared panel called “Words that Changed the World,” Mr. Collins argued that the perfect context for Mr. Churchill’s grave tone and tenor arose only when he was in his 60s, and serving as British Prime Minister amid the Nazi invasion of western Europe. Of Mr. Churchill’s speeches in 1940, Mr. Collins said, “What gives them their real gravity is the fact that the peril is real.” For me and for others who work with words and who love the Churchill legacy, Mr. Collins’ lesson is worth remembering. If we try to emulate the great orator on behalf of a brand or product, we could succeed – and sound as cartoonish as Mr. Churchill did at

PHOTOGRAPH: MILITARY HISTORY COLLECTION / ALAMY STOCK PHOTO ALAMY STOCK / COLLECTION HISTORY MILITARY PHOTOGRAPH: that Oldham event.

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That isn’t to say Mr. Churchill isn’t worth studying for routine tips about words and writing. “Short words are the best, and the old words best of all,” he said. In an unpublished 1897 piece called “The Scaffolding The point of corporate tell it as often as needs be – but of Rhetoric,” Mr. Churchill communications is repeat the same message on the identified what he thought not to entertain, but to same facts. There is no need to were the principal elements of tell the truth improvise, nor to elaborate. As a great speech: correctness of pressure rises, the same truth diction, rhythm, accumulation of Exacting HONESTY can be repeated. This is now argument and analogy. commonly done, for example, in Deliberate writers will also take he leader of a public corruption cases. particular comfort in knowing company has a duty to “The Board will not allow that Churchill was slow. He T inform the public of material corrupt behavior in this company estimated one hour of work for events that an investor, actual and will sort it out at once,” is a every minute of a speech. or prospective, would consider typical example. This statement Obviously, those traits alone significant in deciding whether is fact. It tells the market what don’t account for his brilliant flair to buy or sell the shares. He or the view of its Board is, and with words and thankfully he she must tell the truth – and shows their determination to offers other hints. As a film-maker, tell it as soon as is reasonably deal with it. I’m especially interested in how practicable. He has no duty It is tempting to shift from he described his writing style as to spin, nor to comment, nor the provision of necessary a “rapid succession of waves of entertain, although in the information material and sound and vivid pictures.” pressure of the moment, many useful to the market and, under go down this path. pressure, stray into the realms “Short words are The audience, in the form of entertainment – “feeding the of the media, have much more beast” may be the function of the the best, and the old freedom. They can comment, media, but it is not the function they can entertain, they can of the company. words best of all” write, or broadcast, from a point The CEO is concerned with of view: left or right, capitalist or what the public needs to know. Winston Churchill communist, young or old. Some He may wish to elaborate One hopes that circumstances public-service broadcasters have and expand, according to his never arise to emulate Prime duties imposed by the state; the temperament, but he would do Minister Churchill in his BBC, for example, has a duty to well to always bear in mind the moments of greatness. The most be “impartial” in its coverage. But questions, “Am I informing or eminent Churchill historian, Dr. while many in the private media am I entertaining?” and “If I Andrew Roberts, says, “An awful strive mightily for accuracy and comment, why do I comment?” lot of people thought that it was have strong ethical standards, One last word – on apologies: impossible to beat the Nazis, yet they are entitled to select what It can be hard to When disaster strikes, an apology what Winston Churchill did, by they report, and decide upon is often necessary and usually constantly putting Britain’s peril which particular facets in the stick to the mantra welcome. It shows ownership, in the greater historical context diamond of truth they wish to courage and sympathy. It need of other times that Britain had shine their light. of “FACTS ONLY” not become an admission of legal nearly been invaded, but had A chief executive has no such liability; lawyers’ fears in this area been ultimately successful, he luxury. He has to tell it like it in a fast-developing, are overdone. managed to tell the British people is, and dangers surround him unexpected One can be very sorry that that this could happen again.” if he launches into the areas of something has happened, Or, as US President John F. comment or entertainment. and unwanted whether an explosion or a share Kennedy said of Mr. Churchill: “A storm in a teacup,” “a minor price collapse; saying sorry “He mobilized the English incident,” “a forgivable error” can situation and expressing sympathy with language and sent it into battle.” be claimed by the commentators, the victims is a proper human Churchill’s greatest legacy may but less easily by the miscreant. instinct. Sympathy and sorrow be his assurance that victory can It can be hard to stick to the straightforward. First, find and a determination to put be achieved against all odds. As mantra of “facts only” in a fast- the truth. (This is not easy in things right are not the same as Churchill himself once put it, developing, unexpected and complex organizations that have professing guilt. Apologies need “Never flinch, never weary, unwanted situation. lost their way.) When the truth not be about fault or liability – never despair.” Viewed this way, however, has been found, if it is materially they are about empathy. Sonal R. Patel is an Executive communication becomes different from market knowledge Rob Webb QC is a Brunswick Senior

Producer for MerchantCantos. much simpler; the rules are or perception, tell it; tell it all and Adviser based in London. BLOCH SERGE ILLUSTRATION:

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global economic alignment. Between 2004 and 2014, Sub- Saharan Africa became the world’s second-fastest-growing region after Asia Pacific, driven in large part by the voracious demand for natural resources created by China’s rapid industrialization. However, structural changes – the direct result of political shifts toward democratic accountability and good governance – played a critical role. Applying these trends across broad sections of the continent would be an oversimplification. Among the Eurasia Group’s top 10 global risks for 2018 is rising terrorism in Africa, with the Western powers increasingly Cape Town’s Table Mountain distracted by their own domestic carries its “table cloth” of clouds – a sign, legend has it, politics. Among the best of a smoking contest between performing economies on the a local pirate and the Devil. continent, Ethiopia and Rwanda aren’t exactly model democracies. But they are predictably governed of defense. Yet early evidence risk for inbound mergers last year and focused on trying to AFRICA bucks suggests that João Lourenço, was almost exclusively due to the prioritize economic development technocratic general and newly most sophisticated democracy on over political squabbling. the political elected president, deserves his the continent: South Africa. However, in key economies, corruption-free reputation – South Africa accounts for private markets are growing risk trend almost immediately he pushed nearly two-thirds of Africa’s M&A and thriving. While the decade back against military cronyism activity by value and about half of growth was not driven by ociologist daniel bell, and nepotism. by volume. Political uncertainty manufacturing, early signs show writing in the 1950s about In Liberia, the winner in brought inbound deals by it may be on the rise, aided S mid-20th century ideologies, the country’s first democratic volume down 45 percent in the again by China’s expanding observed, “the old passions presidential election invited first quarter of 2017 – though appetite. Combined with are spent.” That turns out to members of the losing party to measured by value, that activity Africa’s technology leapfrogging be wrong, as recent political join him in a unity cabinet. Africa was up significantly. in areas such as fintech and contests for the souls of major is full of surprises. The hype about South Africa’s communications, this might just western societies shows. The Political risk, once considered institutional arrangements sustain the continent’s promise as brutal rebellion against liberal purged everywhere but in Africa, is proving warranted. This is the world’s next major market. values and globalization in major is for the third year the primary encouraging and should help the Itumeleng Mahabane is a Western democracies is a potent threat to global trade. But across region be more resilient to inward Partner and Head of Brunswick’s reminder that societal change is Africa, the significant political investment at a key moment of South Africa office. a predictable force – constructive change is not. African countries are doing HIGH-TECH MARKETING their own up-ending of the world SANDWICH SIGN goes viral has been humbled recently view, but landing in a surprisingly by the good old-fashioned sandwich board. Propped on a more positive posture. Last year, sidewalk or hung from a human being, the classic ad form hit Zimbabwe saw something as close peak popularity in the 19th century, then faded into irrelevance. to a legal coup as you can get – Until early this year, that is, when a lowly sandwich board and suddenly, a place that pretty outside a Denver coffee shop made national headlines, including much everyone had written off on the front page of The New York Times. Shared widely on is on an all-out charm offensive social media, the board’s message – “Happily gentrifying the neighborhood since 2014” – drew hundreds of gentrification with Western investors. opponents to the coffee shop, temporarily forcing its closure. In Angola, many were cynical In Manchester, England, meanwhile, a sandwich board outside about elections and the transition a café noted that an online reviewer had criticized its porridge. of political power from a colonial The board made national news by inviting passers-by to give the revolutionary leader to his disparaged porridge a try. Lesson: A punchy message can break

PHOTOGRAPHS: DAN ROWLANDS / TOP, ROBERT MUCKLEY/GETTY IMAGES MUCKLEY/GETTY ROBERT TOP, / ROWLANDS DAN PHOTOGRAPHS: comrade in arms and minister through the limits of any medium.

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Brexit remains messy at Depending on the manner best and its costs, of its departure, Britain faces an unclear, says Brunswick economic or a political price. Geopolitical’s Pascal Lamy The more the UK leaves the EU, e’re approaching the the steeper the economic price two-year anniversary of tag. A softer withdrawal reduces W the Brexit vote. economic costs, but increases And still the mechanics of how political ones. Britain can, of the UK will leave the EU, and at course, leave and negotiate new what cost, are unclear and hotly trade agreements. But can they debated. I expect we’ll see more do better with a market of 60 talk than progress for a long while. million consumers than they I’ve compared the UK trying did in a market of 500 million to leave the EU to a chef trying to consumers? I’m not so sure. In remove an egg from an omelette trade negotiations, you gauge that’s been stirred since 1973 – difficult, frustrating and almost certainly messy. A painful SEPARATION As someone who has been in trade negotiations for more than three decades, it is difficult the weight of a market – making to overstate the technical and more concessions for a large regulatory challenges that market than a small one. Brexit poses – challenges that Exiting enough to satisfy are further complicated by Brexit supporters, but not political calculations. so much that it damages the Take financial services. How British economy – that’s a they’ll be regulated between the delicate compromise, and one UK and EU is a key part of the that doesn’t appear to be on the Brexit discussion, but I doubt table in London. It might take will be part of any trade something akin to a political negotiation. So even if a trade spasm in the UK before such a “more complicated,” he said. scenario that should keep CEOs negotiation is reached – an compromise gains real traction. Neither metaphor is perfect, but awake at night on both sides of ambitious goal in and of itself Rather than a decades-old at least the professor’s offers the the Channel. – how banks can operate and omelette, a German professor hope of a smooth landing. equated the complexity of the Pascal Lamy is a Principal at firms will be regulated remains a A hard one, which Brunswick Geopolitical, and former separate issue to be resolved and UK leaving the EU with the first unfortunately cannot be totally Director General of the World then implemented. Moon landing – only Brexit was excluded at this stage, is the Trade Organization.

system that broke global banking, SWEARING but for bad language. Despite the aversion to Are curse words an swearing, evidence suggests it can unforgivable scourge or a help teams bond. Far from artless healthy way to build trust? and vulgar, research shows that n her book swearing is good swearing in small groups demands for You, Dr. Emma Byrne argues social skills to express differences I that new research reveals how between teams and nuances we might be better off to invite specific to each member’s role. profanity into the office. But In addition, Dr. Byrne’s she’s also clear that trying to research shows swearing reflects implement a pro-swearing policy on credibility: The greater the will be an uphill battle. rate of swearing, the less likely the Dr. Byrne tells how during person was to be dishonest. the 2008 crash a Goldman Sachs Ultimately, there’s no simple senior manager described a sub- answer. Though it risks giving prime mortgage transaction in offense, it seems that at the right an email as “one shitty deal.” moment, a well-turned expletive When the emails were released can work wonders. to the public, Goldman Sachs Laura Templer is Content

apologized – not for supporting a Production Manager in London. CONSOLI FABIO TOP, BLOCH; SERGE LEFT, ILLUSTRATIONS:

10 brunswick review · issue 15 · 2018