PLUS: HEALTHCARE CURES ‘GARBAGE JOBS’ RISE THE NEXT TECH TSUNAMI

ON EDGE... TO CUTTING OEDGEn Skills leaders use to deal with Edgetoday’s constant changes The Skills Leaders Need in Today’s Crazy Times $14.95

ISSUE 42 WHO’S BEHIND ME? EVERYONE.

Goals. We all have them, but ambitious people know that hitting them is faster and easier with the support of others. Korn Ferry is a leading organizational consultancy in the business of supporting people and organizations to be their best. Now you don’t have to go it alone.

Korn Ferry. Business Advisors. Career Makers BE MORE THAN kornferry.com/bemorethan Click

KornFerry.com/Institute

Gary Burnison Chief Executive Officer

Jill Wiltfong Career Chief Marketing Officer Jonathan Dahl Advancement Editor-in-Chief

Has your career hit a wall? Russell Pearlman Managing Editor What salary should you ask for? See Korn Ferry Advance for Nancy Wong Bryan Copy Chief complete career guidance. Jeff Anderson Copy Editor Check out → kfadvance.com

Creative Directors Robert Ross Roland K Madrid Jonathan Pink

Art & Production Goliath, Meet David Candace Dodds

How do some small emerging Marketing & Circulation Manager businesses outrun their much larger Erica Shannon

rivals? Listen to insights from key Project Manager small-business leaders in Korn Ferry’s Tiffany Sledzianowski

new podcast series. Digital Marketing Manager Edward McLaurin Find episodes at → kornferry.com/ Marketing Coordinator podcasts-goliath-meet-david Nadia Bianchi

Contributing Editors David Berreby Simon Constable Patricia Crisafulli Daniel Goleman John Kimmelman Leadership News, Peter Lauria Renee Morad Every Week Richard C. Morais Adam Penenberg Korn Ferry’s experts reveal Glenn Rifkin leadership lessons from the news Annamarya Scaccia Chana R. Schoenberger each day, be it on the latest CEO Chris Taylor successions or a major merger, Meghan Walsh summarized in our “This Week in Contributing Illustrators Leadership” email on Thursdays. Peter Horvath Richard Montoya Sign up at → kornferry.com/institute Contributing Photographers Paul Mitchell Randall Cordero

/ 2 / Think about this... Fast- Tracking IT WAS ALWAYS TOUGH Care Talent No one, it seems, TO BE CEO. BUT IT’S How to engage employees in an age when a growing number of new jobs is happy with TOUGHER TODAY. are “low quality.” 10 healthcare, but the CEO of a Technology fast-growing Companies need a 5G strategy nonpro t sooner than they think. 12 believes he has some answers. Purpose 36 Why aren’t rms that are driven by social good making diversity and inclusion a top priority? 14 The Race History for Lithium Pan Am’s hard landing. 16 The auto industry’s massive Simon Constable The Global Economy transformation COVER STORY has suddenly The gray sides of On Edge... going green. 18 made the hunt for this metal To Cutting Edge critical. 42 Elections. Trade wars. Loreto Montoya Suárez Political unrest. The Latin America Cover Artwork There’s unrest in the streets, skill sets business leaders by Paul Mitchell but another crisis is brewing From need for what may in the workplace. 20 Antiquity to AI: A Stoic become the most volatile Renaissance Daniel Goleman year of the 21st century. 26 On Purpose An ancient Can purpose help people philosophy has live longer? 22 found new life in the most unexpected PLUS Downtime place: corporate boardrooms. Interests Outside the O ce Starts on page 59 But why? 50 On Leadership

Gary Burnison CHIEF EXECUTIVE OFFICER

‘Tell Me About Yourself’

Four words, simple but so revealing: “Tell me about yourself.” ♦ It’s an icebreaker for starting conversations from job interviews and client meetings to your first Illustration by Peter Horvath time meeting anyone. This open-ended question invites responses that can take any number of directions—as long as that direction leads to making a connection. wait to dive deeply into the details of who they know The fear is understandable—nobody really gets out Of all the responses I’ve heard over the years, couldn’t even contemplate. Instead, she smiled and and what they’ve done. One person I interviewed of sixth grade. Back when we were 11 or 12 years old, the best and most memorable was “I’ve climbed the said, “How the heck am I going to get down?”— didn’t even wait to be asked. The minute we sat down our biggest worries were: Are the other kids going to like highest mountains on every continent, including showing her ability to engage others with humor together, he ended all small talk and launched into a me? Will they want to be friends with me? Will they want Everest.” Obviously, it’s a rare person who conquers and humility. (No surprise, this candidate recently canned speech name-dropping who he knew, where me on their team? Now tell me—has anything really the Seven Summits, considered the pinnacle of joined our firm.) he had worked, and what his titles and responsibili- changed? Meeting someone new, whether socially mountaineering. But that’s not the reason this You don’t need to be a world-class mountaineer ties were. He repeated everything that was on his or in business, brings up those same fears. The more answer stood out from all the rest. to stand out in an interview or any other encounter resume—a copy of which was on the table where we vulnerable you feel, the more tempting it is to avoid By responding this way, the person told me she with a person who wants to get to know you. Your sat. In his 12-minute filibuster, he said nothing that reaching out to someone new. is adventurous and response to “tell me indicated who he was as a person. And when the Don’t worry about having a killer opening line insatiably curious—clear about yourself” should interview was over, I felt I didn’t know him at all. like you’re Chris Rock or Dave Chappelle doing indications of having be grounded in your A lot of people, I’ve noticed, struggle with mak- stand-up. Just go back to the basics. Everyone has learning agility, which It’s so easy with a dog— ACT: being authentic, ing a real connection. I even experience it while something interesting to say. Korn Ferry considers and no pressure with a forging a connection, walking my dog Charlie. Over and over, people come There are many aspects to you, and how you to be the number one baby in a stroller, either. and giving others a up to Charlie, asking “What’s your name?,” “How old respond to “tell me about yourself” can and should predictor of success. I taste of who you are. are you?,” and “Can I pet you?” without a word or eye vary from conversation to conversation, based on the could also see that she By sharing a very contact with me—even though I’m standing there at context. I’ve interviewed Navy SEALs, fighter pilots, is disciplined and goal-oriented—an indication that short anecdote or brief bit of personal information— the other end of the leash. and professional athletes, some of whom have dis- she’s largely intrinsically motivated. Anyone who 30 seconds or less—you allow someone to get to know It’s symptomatic of a much bigger problem: peo- cussed their backgrounds in detail and others who spends years conditioning and training to climb the you. For example, when someone asks me about ple don’t know how to make a first-time connection focused on something else instead. Neither is right highest mountains in the world is clearly driven by myself, I tell them that I was raised in McPherson, with others. It’s so easy with a dog—and no pressure or wrong. Go with your gut as to what feels most achievement. Kansas, went to college in California, and have five with a baby in a stroller, either. They’re happy with appropriate and meaningful in the moment. But that’s not all. When I asked her, “What did children. I can’t tell you how many times my small- everything you say. But when it comes to breaking So the next time someone prompts you, “Tell me you think about when you reached the summit of town Kansas background makes a connection. the ice and starting a two-way conversation with about yourself,” just remember: it’s an invitation, not Everest?” she didn’t wax philosophical or dwell Unfortunately, most people don’t approach “tell me someone they don’t know, many people freeze up, a pop quiz. All it takes is a very brief story to give a on the fact that she’d done something most of us about yourself” as an invitation. Instead, they can’t clam up, and back up into a corner. little insight into who you are as a person. 1

/ 6 / / 7 / We might be heading toward a future of either a low-quality job or no job at all for some people.

TALENT 10 TECHNOLOGY 12 PURPOSE 14

Scott Macfarlane David Barnette Kate Shattuck Senior Client Partner and Sector Lead, Senior Client Partner and Global Account Lead, Financial Technology, Professional Coleader, Impact Investing, Learn more at KornFerryAdvance.com Services, Korn Ferry Search, Korn Ferry Korn Ferry VOICES ON... Talent of jobs are they? Not good ones, according to a the hours worked, coupled with a wage increase report by Cornell University and the University and the opportunity to obtain new skills, could of Missouri, Kansas City. The study tracked job lead to the increased productivity that firms need. creation—excluding management roles—and cre- To be sure, many large corporations are increas- ated an index that categorizes a “low quality” job ing wages to their lowest-paid workers in a bid to as any with pay falling below the mean for that better recruit and retain talent. Bank of America, The New Challenge: work. The result: six in 10 new jobs, 63 percent to for instance, is raising its minimum wage to $20 be exact, are low-quality roles. per hour nationwide this year. “When you see large Engaging the Disengaged “We are not producing jobs in the right indus- employers taking those positions, it will have out- tries fast enough,” explains Jeff Ferry, one of the ward pressure on everyone else,” says Scott Macfar- researchers and the chief economist at the Coali- lane, a Korn Ferry senior partner and global account Six in 10 new roles are now low in pay and high in boredom. tion for a Prosperous America. Instead, most of the lead for the firm’s Financial Services practice. Why no company can ignore the risks of a disengaged workforce. new job creation is in low-paying, labor-intensive, Experts say companies also can make low- high-stress sectors like leisure and hospitality, pri- quality jobs feel like high-quality ones even if the vate education, and healthcare services. In most of pay is modest. Effective job and organizational By Peter Lauria these cases, prospects for career advancement and design, clarity in purpose, and an energizing work the opportunity to add new skills are low. climate will lead to more engaged and productive t’s only a few short months into a new ever since the dawn of The A similar dynamic is playing out in Europe, employees, says Tom McMullen, a Korn Ferry decade, and already some leaders are becom- artificial intelligence and Takeaway ing alarmed that a recent trend may last for machine learning. But that I the rest of it. The problem would have been was supposed to be a prob- Too many unheard of at the start of the century—but it has lem years away, and many jobs are losing arrived unexpectedly early. thought the introduction purpose faster While concern about low-quality jobs grows, companies globally have been boosting pay better The issue is jobs—that is, jobs that are engaging. of robots would only than anticipated. than before. A look at pre- and post-inflation increases expected around the world in 2020. Most barometers are showing that while finding a introduce more intrigu- job hasn’t been too difficult in recent years, getting ing positions for some humans. What’s more, all NORTH AMERICA 2.8% • 1.1%* 6.2% a good one has become a true challenge for millions the economic news in recent years has focused on % ASIA 5.3% • 3.1%* 2.5 % across the globe. Some critics call the work “low the steady creation of jobs, presumably ones with EASTERN EUROPE 6.2% • 2.6%* 2.8 5.3% quality”; others say they are “lifeless” or “garbage” career development opportunities. WESTERN EUROPE 2.5% • 1.2%* 3.6% roles. But by any name, workforces that Indeed, through at least the start of the AFRICA 7.9% • 2.3%* are disengaged can threaten the year, the US economy has been LATIN AMERICA 4.9% • 2 .0%* success of any company. adding close to 200,000 MIDDLE EAST 3.6% • 1.6%* 4.9% 7.9 % THE PACIFIC 2.5% • 0.8%* Certainly, the fear new jobs a month since % AUSTRALIA & NEW ZEALAND 2.5 of boring jobs has 2015. The question Real wage growth * been looming is, what kind

where companies have fallen big time for temp senior client partner and a leader in the firm’s work, which now accounts for about one in seven Global Rewards and Benefits expertise group. (14.2 percent) of all jobs there. A key concern The irony, of course, is that AI and machine about these jobs—and those of low quality in the learning were supposed to pave the way for more United States—is shorter hours. Low-quality roles high-quality jobs, not increase the supply of low- are only about 30 hours a week, eight hours a quality ones. That’s why Hockett believes organi- week less than higher-quality roles. zations and governments need to work together But that presents an opening to change the tide, to reorient education and economic policy to experts say. “Employers may be able to get more train and upskill people. “Not all labor moves up engagement bang for their buck from raising the the ladder to skilled labor,” says Hockett. “In the number of hours worked,” says Robert Hockett, absence of readily attainable higher education, we another of the index researchers and a law professor might be heading toward a future of either a low-

Source: Korn Ferry at Cornell University. Hockett says that increasing quality job or no job at all for some people.”

/ 10 / / 11 / VOICES ON... Technology

On the one hand, 5G could inject $12 trillion What’s more, there will be privacy implica- into the global economy by 2035 and add 22 mil- tions. Rochon says companies will easily be able lion new jobs in the United States. On the other, to track whatever their employees and consul- many of these jobs will require specific skills, and tants are doing at any time. “Because of geofenc- there may not be enough qualified personnel. In ing, you can know if anyone is beyond the bounds Preparing for the long term, the machines may take over the of where they should be, so that helps covers your planet, but in the short term—say, the next 30 liability,” he says. “Instead of floors, offices, and years—there may not be enough humans in the cubicles, businesses will have far less overhead. a Tech Tsunami By Adam Penenberg workforce. You go to the office to get that energy and synergy Take the sheer number of devices (including from people. The actual tasks, you stay home to the Internet of Things, or IoT) that will plug do them.” As game-changing as 5G tech may become, into 5G networks. “We As 5G networks spread across the US, experts The expect the number of say companies should plan for the incoming tech it is widely misunderstood. A primer, just in time. Takeaway connected devices to go tsunami. First, they should create a 5G strategy Companies up a hundredfold,” says so that they aren’t caught with their digital pants need a 5G David Barnette, sector down. They need to budget for investment in 5G strategy leader of technology in hardware so they have 5G-ready equipment for sooner than Korn Ferry’s Professional when there’s a full-scale launch. They should be they think. Search practice. Indeed, on the lookout for corporate leaders who under- estimates state there will stand the changes that 5G will bring as well as be 21 billion devices by fortify their data analytics divisions. Finally, they 2025. But each one is a point of entry into the need to plan for a new wave of automation and network, which will spawn a security challenge artificial intelligence and work with engineers to and a new class of security professionals, whose reassess operations where machines can be auto- numbers are already short. Plus, all of this inter- mated and artificial intelligence can be integrated. connectedness will generate unseemly amounts Companies that do all this, pros say, should be of data. “It creates a crunch within data science— able to ride the 5G wave. “Within 20 years, we’ll data science security, for example, areas that are have widespread artificial intelligence because already hot,” Barnette adds. “Companies will have of 5G,” Rochon says. “We’ll have to transform

trouble filling these positions.” our economy.” Therefore, Barnette proposes, “you can try to outbid talent competition, or you can create acad- emies to develop that talent.” Whatever the case, companies will need to invest in ongoing education. Are You Ready? The only problem? “Even if companies have a bud- A 5G Corporate get for retraining, they are often reluctant to use it,” says Dr. Rikin Thakker, a research assistant profes- Checklist sor in the Department of Electrical and Computer Engineering at the University of Maryland. A budget for 5G hardware t sounds like some fantastical Blade Runner-esque future. Fleets of autonomous Nevertheless, Sylvain Rochon, who markets investment driverless cars flowing effortlessly under a neural net that controls traffic. 3-D holographic himself as a futurist, prefers to view the big pic- Imeetings among employees across the globe. Swarms of messenger drones buzzing through ture. Because of 5G, labor, he says, could be more Superagile corporate leaders adaptable. Remoteness is enabled, so workplaces cities to deliver packages. Smart glasses that let users instantly identify anyone, anywhere. will become collaborative social spaces because New privacy policies As communications systems go, 5G may be oddly named, but the hype about its potential is no workers could do their jobs from anywhere in the Plans to integrate machines exaggeration. In short, experts say, 5G adds the instant to instantaneousness, a true step up from what world. That will likely translate into fewer full- with AI anyone can imagine today. But what technology giveth, technology can taketh away, and for now, time employees and more contract workers— more consultants, and far greater reliance on companies appear barely able to grasp either its potential opportunity or the nightmare scenarios. Large-scale employee training the gig economy.

/ 12 / / 13 / VOICES ON... Purpose

who have become CEOs of major US corporations took, on average, four years longer than men did to Purposeful Gains reach the top job. At the same time, black leaders told Korn Ferry researchers that they had to take for the Purpose far bigger career risks to get promoted than white Movement employees did. “These leaders felt like they had to prove themselves in ways that they perceived their colleagues didn’t have to,” says Michael Hyter, 1977 A German academic laments that a managing partner at Korn Ferry and a project “business has seldom enjoyed so much leader on the firm’s report The Black P&L Leader. power with so little responsibility.” Experts offer several theories as to why diver- sity is still not a top-line focus for companies. Race and gender are deeply emotional flashpoints, Murphy says. “For business leaders seeking to advance D&I, the result is an especially challeng- ing, high-risk, and complex operating environ- The Purpose ment,” she says. Other factors that slow this change, while Movement’s Blind Spot making some economic sense, are disturbing nonetheless. Despite studies that link having a 1984 diverse leadership team with improvements in R. Edward Freeman’s book Strategic Management: A Stakeholder Approach Why aren’t firms driven by social good both decision-making and profitability, experts say describes management systems where few if any for-profit companies believe that creat- making diversity and inclusion a top priority? By Russell Pearlman more than just shareholders count. ing a diverse, inclusive organization is the ultimate goal. Many firms don’t see having a diverse, inclu- 2006 ithin a few short years, the be cautious about putting themselves out there sive leadership and workforce as being a unique Rules are established for becoming a purpose movement has gone because we have so far to go,” says Courtney Mur- competitive advantage, says Virginia Harper Ho, B Corp, a firm that is a force for good, from a series of academic phy, director of strategic partnerships for Chief a law professor at the University of Kansas who not just profit. W working papers to something Executives for Corporate Purpose, a group that has researched the purpose movement extensively. even hard-driven investors are supporting. By the help firms improve relations with all stakeholders. Company leaders often pick a purpose that not thousands, companies now run operations with Certainly, the need is there. Few companies only is based on a deeply felt conviction but also everything from the environment to better work have been able to reach equality of opportunity for makes them stand out. “If you pick a mission like conditions in mind—while making a nice profit all groups. Women make diversity, you might think that well, every firm doing it. In the United States alone, there are up nearly 45 percent of The should be behind that,” Harper Ho says. nearly 3,000 Class B corporations now, firms that all employees at S&P Takeaway To be sure, countless companies, purpose 2018 have committed to prioritizing social purpose over 500 companies but driven or otherwise, say that improving diversity Investment giant BlackRock urges that firms be run with social good in mind. profitability. hold only 12 percent of Firms may is important, and many organizations have both Yet for all the commitment to social good, the senior leadership be improving hired and retained top talent. But at least for there’s one area where the purpose movement positions. Blacks make diversity, but now, companies, even the ones whose top goal 2019 More than 180 CEOs agree lacks focus: diversity. According to purpose up 14 percent of the most are still is social good, aren’t making it their top priority. not making it their firms should exist for more experts, few if any companies, public or private, US population, but And that—just making it a priority—would be a their top priority. than just making money. have made being a diverse, inclusive organization less than 10 percent good start, experts say. The effort needs to be part their stated purpose. Plus, there’s no evidence that of Fortune 500 senior of the company’s “deep-seated values,” says Kate purpose-driven companies are any better at creat- operating executives, and only 4 percent of com- Shattuck, a Korn Ferry senior client partner who ing diverse work environments than any other pany CEOs, are black. works with purpose-driven firms. “The kind of type of firm. It’s been a difficult path for the small percent- values that are nested not with just one hire but “There’s been exponential growth in aware- age of women and people of color who have with the organization’s strategic culture work ness, but it’s an area that any company would achieved leadership roles. Indeed, the women across the enterprise.”

/ 14 / / 15 / VOICES ON... History 5 Legends in the Air Key visionaries who’ve led airlines: The Grounding of

a ‘Sky God’ By Glenn Rifkin Juan Trippe Robert Crandall Frank Borman Herb Kelleher Michael O’Leary Founder and chairman of CEO and chairman of Famed NASA astronaut; Founder and CEO of CEO of A 1988 crash and a stubborn founder helped accelerate Pan American World Airways American Airlines CEO of Eastern Airlines Southwest Airlines Ryanair (1927–1968) (1985–1998) (1975–1986) (1971–2008) (1994–present) the sad end of the world’s most iconic airline. Credited as a Launched the first Made desperate bids The iconoclastic leader Pioneered the low-cost pioneering force in frequent flyer program to save the company, introduced the low-cost airline model in Europe the creation of and oversaw the creation which filed for bank- business model to air and built Ryanair into global commercial of the industry-changing ruptcy three years travel, which popular- Europe’s largest budget airlines. Sabre reservation system. after he left. ized the airline. carrier. he flying public would become terrorist bomb had, in fact, caused the disaster. terrified. On the evening of December 21, Within three years, the most iconic of airlines was 1988, Pan Am flight 103—a Boeing 747 out of business; and while many other factors were government permission to fly domestic routes. in Los Angeles—and the US government refused to Tjumbo jet named Clipper Maid of the Seas— behind its demise, few doubt that the Lockerbie Trippe insisted on spending lavishly, building a intervene. In 1978, when deregulation rocked the took off from London’s Heathrow Airport bound crash was a mortal wound. “It was the day the heart skyscraper near Park Avenue in New York to house airline industry, Pan Am was left reeling. for New York. As the plane full of holiday travelers of Pan Am died,” said one pilot. Pan Am’s headquarters. A visionary with bad tim- “The biggest factor in Pan Am’s demise was ascended to its cruising altitude of 31,000 feet and Credited with almost single-handedly creating ing, Trippe in 1970 invested millions to acquire a deregulation,” says Madhu Unnikrishnan, editor crossed over the Scottish border, an explosion blew the commercial airline industry, Pan American fleet of the first Boeing 747 jumbo jets, just as the of Aviation Weekly. “They had this beautiful inter- the giant aircraft out of the sky over a rural village World Airways dominated it in the mid-20th worldwide recession of ’69 to ’71 dried up interna- national network back when the Civil Aeronautics named Lockerbie. All 259 passengers and crew, century. It was the first airline to fly across both tional air travel. The financial Board told airlines where they along with 11 civilians on the ground, were killed. the Atlantic and Pacific Oceans, and, in 1947, the burden of the 747 investment could fly and what they could After initial speculation citing structural failure, first to offer round-the-world service. Pan Am crippled the airline for years charge.” Scottish authorities announced that an exploding brought the Beatles to America in 1964, and its to come. The 1974 crisis in the Pam Am sold The Airline Deregulation famous blue globe logo emblazoned the Pan Am Middle East, which led to an oil Act of 1978 opened the skies skyscraper in Midtown Manhattan. Charles Lind- embargo and skyrocketing jet- $20 deposits for to a wave of new competitors bergh sat on its board. fuel prices, added to the finan- with a spider’s web of domestic The airline was founded by Juan Trippe, a cial woes. “I compared Trippe future lunar flights, routes. Pan Am had long been former naval aviator who started out with an to modern-day entrepreneurs attracting 93,000 barred from entering domestic air taxi service in Long Island. A pioneer whose like Bill Gates and Jeff Bezos,” routes—now, all of a sudden, reign lasted half a century, Trippe landed on the says Robert Gandt, a former customers. “they couldn’t feed traffic cover of Time magazine in 1933. Pan Am pilot and the author from domestic locations to Decades later, he scored a marketing of Sky Gods: The Fall of Pan Am. their international flights, and coup when Stanley Kubrick depicted a “Pan Am was Trippe.” domestic carriers were sud- Pan Am lunar shuttle in his sci-fi masterpiece Trippe resisted grooming a successor, so when he denly competing on international routes. Pan Am 2001: A Space Odyssey. That prompted Pan Am to stepped down as chief executive in 1968, the com- scrambled to create a domestic network through sell $20 deposits for such future flights, attracting pany endured two decades of ill-equipped leaders acquisition, but they never caught up,” says Unni- 93,000 customers. who alienated employees, unions, and regulatory krishnan. “They had crushing financial problems, But for all his high-flying success, critics say agencies. Trippe remained on the board and kept and then Lockerbie happened and they could Trippe could be an abrasive and hubristic leader, an office in the Pan Am building, so his presence never recover from that.” unable to win friends in high places, such as the was palpable until his death in 1981. Pan Am found For his part, Gandt compares the carrier to a White House, which would prove critical. After itself in a constant financial crisis. It was being great prehistoric dinosaur, the pterodactyl. “It alienating presidents, starting with FDR, both Pres- extorted for outlandish landing fees in foreign ruled the sky for a long time and then the climate idents Johnson and Nixon refused to help when airports—a Pan Am 747 paid $4,200 to land in Syd- changed and it couldn’t adapt,” he says. “So it Pan Am desperately needed influence in acquiring ney while a similar Qantas flight paid $178 to land perished.” 1

/ 16 / / 17 / The Global Economy

Simon Constable

carbon credits based on reduced energy use. “The viable alternative. “It’s just economics; even the The Gray Sides return on investment is huge,” Brusuelas says. US is using renewables because it’s cheaper,” Lea- Wall Street’s getting in on the green business ton says. Still, there’s a problem. When a coal-fired too. In the past, lenders wanted to know whether power plant becomes obsolete, the corporation of Going Green the borrower could pay back the loan. Increas- must mark down the value of the assets, Leaton ingly, being green matters just as much. Six years says. Put another way, the balance sheet immedi- ago, raising money for environmentally sound ately takes a financial hit because the old assets “I’m off to see the nuns Of course, not everyone agrees that environ- projects was a nonevent on Wall Street. In 2013, become near-worthless. down south, see you in a couple mental matters are dire enough to warrant radical sales of so-called green bonds totaled a paltry And yet what counts as green is still a of days,” said my colleague at a changes, and some who willingly fight climate $4.2 billion. By 2019, it had grown around sixty- little fuzzy in the financial world. Terrible giant industrial multinational. change say there can be overkill. However, studies fold to $250 billion. environmental His day job involved designing show that rising global temperatures caused by pol- While money stewardship is executive compensation, but he lution are making weather increasingly dangerous managers continue often apparent, was assigned a curious add-on role: charming an across the world. Texas, which became blighted by to push companies to “The greening of industry such as dumping order of nuns that served as advisors to investors killer floods in 2019, is a case in point. grow green to attract toxic chemicals seeking environmentally conscious investments. In reaction to increased flooding, savvy home more investors, is hitting every ecosystem.” into a water table. In this case, he’d have to show the upside to staying builders have adapted, says Brusuelas. Once a there’s also the threat But what’s in invested in a company viewed widely as a rust-belt mainstay of luxury Texas housing, hardwood floor- of more government between green and fixture, with all the associated environmental bag- ing has given way to manufactured composites, intervention. Car companies must meet statutory not green isn’t clear. “There is a gray area in the gage. Even that partial attention to green matters he says. The reason is that the increased risk of targets for vehicle emissions or face hefty fines middle,” Leaton says. counted as forward-thinking circa 1999. It’s a lot flooding and the associated costs of repair are now in the European Union, says James Leaton, a vice That gray area is made fuzzier by the lack of different now. significant. “People will sue if the floor gets messed president and senior credit officer at the rating a single set of metrics to evaluate what counts These days, environmental matters are upend- up,” he says. agency Moody’s. He looks at how companies miti- as best practice in being green. “There are ing business in ways that weren’t considered half a Business is also finding it cheaper to go green gate those risks and avoid heavy fines, which can 160 frameworks regularly used,” says Martina decade ago, and the changes are pervasive. That’s due to the plummeting prices of technology. State- also hurt credit ratings. Macpherson, senior vice president for strategic even as many corporations have embraced ways to of-the-art heating, ventilation, and air-conditioning Switching to green won’t be financially partnerships and engagement at Moody’s. While cut pollution. “The greening of industry is hitting systems pay for themselves because not only do comfortable, either. The good news is that power- there is financial-industry talk of a single agreed- every ecosystem,” says Joe Brusuelas, chief econo- they reduce pollution, they are more efficient generation companies are quickly finding that upon approach, so far that hasn’t happened. “There mist at the professional services company RSM. to run. On top of that, savvy companies can sell ditching coal and other carbon-based fuels is a needs to be more consistency,” she says. 1

Constable is a current fellow at the Johns Hopkins Institute for Applied Economics and a former Wall Street Journal TV anchor.

/ 18 / / 19 / Latin American Affairs

Loreto Montoya Suárez

A Work Culture Crisis At the same time, a wave of corruption scandals from mistakes. An influx of multinational firms has exposed how some economic elites play by into South America understands this leadership their own set of rules. mindset, and they’re already taking away market You could argue the firm company was left wondering whether it should be Companies in the region are going through share from local companies that don’t know—or didn’t stand a chance. Recently, doing the same within its own walls. a similar crisis: many family-owned firms built don’t want to know—what it takes to attract top a major South American Even in a world absorbed with one political up their businesses driven by hard-charging, young talent. company looking to enlist new drama after another, South America’s hit-the- command-and-control bosses, and most are still Obviously, no one here can kid themselves talent from the United States streets torment is striking. Pick just about any accountable to one man or one family. They make about the impact of the unrest across the continent. brought down two up-and- country in the region and the news is alarming, the decisions and Corporate leaders coming leaders eager to add international experi- from the unrest in once-stable Chile to the stream don’t feel the need complain—justifi- ence to their resumes. The only problem was that of demonstrators calling for a shutdown of Peru’s to communicate the ably—that their their arrival in Santiago, Chile, coincided with congress. Protests were so bad in Ecuador that the reasons why. They’re workers don’t want a wave of massive street protests, of such a scale government fled the capital. Did I mention that inflexible and The talent pressures companies to work late for fear that the president declared a state of emergency. the Bolivian president was forced into exile? unwilling to make are facing won’t go away when of what can happen Given the circumstances, it was hardly Not surprisingly, all this turmoil is hardly changes. on the streets after surprising when the executives called to say what corporate leaders need as they search for However, in the protestors go home. dark. Some have thanks but no thanks. What did shock the new talent. How can people do their best work today’s world, busi- even asked their South American firm, however, was why the surrounded by violence in the streets? But South ness success hinges workers to relocate candidates decided to backtrack their move. American firms are finding out that corporate on the ability of com- temporarily. It wasn’t because of the size or the violence of culture is a fairly big obstacle too—it’s simply out panies to develop, attract, and retain agile, curious, But the talent pressures companies are fac- the demonstrations—rather, it was what they of touch with what younger leaders value. And and driven leaders. That applies to organizations ing won’t go away when the protestors go home. revealed of the company’s corporate culture. The that’s something that CEOs do control; unfortu- in Santiago and La Paz just as much as it does to Unless senior executives here make their com- US candidates saw workers chained to a tradi- nately, not enough senior executives are doing firms in Beijing, Brussels, and Boston. And unlike panies more attractive to younger, more agile, tional Monday-to-Friday work schedule, bosses anything about it. their predecessors, those types of leaders are more innovative leaders, they won’t have to be unwilling to take risks, and a lack of commitment What’s happening in South America right now looking for new, flexible work environments that concerned about the negative impacts of political to creating a diverse, inclusive workforce. So is a social crisis. Citizens, particularly millennial- encourage a diversified workforce and promote unrest—they will have already lost their business while hundreds of thousands of people demanded age and younger, are fed up with differences in differing opinions. Today’s young leaders want to to competitors offering a more appealing corpo- reforms across the country, the South American treatment based on gender, class, and ethnicity. be empowered to move fast, take risks, and learn rate culture. 1

Santiago, Chile-based Montoya Suárez is a Korn Ferry senior client partner and a member of the firm’s Latin America Global Technology Market group. / 20 / / 21 / Daniel Goleman

Finding Reasons The evidence for the life-preserving power of purpose to Live Longer has been mounting for years.

“My goal is to die young as shows, the strongest predictor of good health late in life as possible.” That and longevity turns out to be having a sense of The biological advantages from purpose go calls eudaimonia, or flourishing. It just may be that was the credo of the late anthro- purpose in your life. beyond better habits like eating well and exercise. having a strong sense of purpose signifies a life pologist Ashley Montagu, who In studies using the medical methodologies In fact, some studies have found a sense of pur- that flowers. Studies of folks who flourish reveal passed away at the ripe age of 94. deployed by epidemiologists, for example, purpose pose has stronger health benefits than these two payoffs in how their brain operates. Such people, One exercise that kept him going turns out to be a surprisingly strong inocula- much-vaunted salutary habits. the data shows, have stronger and longer activ- so long: he and his wife danced nightly. tion against risks to brain and body in later life. The biological mechanisms at play here are ity in the brain’s reward circuity in response to Your list of ways to up your odds of staying Purpose offers protection against neurological mysteries at present. But the medical studies have whatever makes them happy. That brain pattern, healthy—or as we like to say, dying young as late diseases like Alzheimer’s as well as the delay of turned up some clues. For instance, people with other studies show, predicts a person will gener- in life as possible—no doubt includes eating well, normal cognitive impairments in attention and a strong sense of purpose secrete fewer stress ate less of the stress hormone cortisol while they working out, and not smoking. Now you can add memory that even healthy people experience hormones than do others under extreme pressure; sleep—which suggests they will be more “cooled to these having a sense of purpose. as they advance through the decades. Purpose and they are more stress-resilient, recovering out” during their day. The evidence for the life-preserving power of seems to protect against heart disease and even more quickly from upsets. Their genes for chronic But amid all this data suggesting that a sense of purpose has been mounting for years. In a review stroke. And perhaps most unexpectedly, a sense of inflammation—a causal factor in a host of dis- purpose may be life-extending, there seems to be of decades of findings, Carol Ryff, a psychologist purpose in life minimizes the chances of someone eases, from asthma to arthritis and cancer—are a paradox: if extending our lives is our main pur- at the University of Wisconsin and a leading developing osteoporosis. less active. Their metabolism better regulates pose, that may not cut it. A worthwhile purpose researcher on the topic, rounded up the evidence It’s no surprise then that having a sense of pur- glucose, lessening the risk they will develop dia- focuses us beyond ourselves on a greater good. for purpose as a path to good health. pose predicts a longer life. And not just longer, but betes. Their levels of cardiovascular risk factors, The health impacts are side effects of this wider Ryff specializes in the emotional ingredients richer: scientists invoke the Japanese concept of like triglycerides and “bad” cholesterol, are lower lens, not the main point. of well-being, which include positive relation- ikigai, which translates as “what makes life worth than expected. So reaching for the best within us and making ships, self-acceptance, and the like. But of all living.” The longevity benefit has been found true All these biological assets may be a side effect that a central focus for our lives may be, by the these psychological dispositions, the research around the world. of what Ryff, borrowing from the ancient Greeks, way, life-extending. Salud!

Goleman is author of the international best seller Emotional Intelligence. See keystepmedia.com for his new series of primers, “Building Blocks of Emotional / 22 / / 23 / Intelligence.” Chronographes. A stainless steel bezel mounted on ceramic ball bearings is bearings ball ceramic on bezel mounted steel Astainless Chronographes. and is the first multiple time-zone multiple of BRM watch automatic first history the the is in and 46 mm Grade 1 titanium case with black PVD coating, water resistant coating, PVD with black case 1titanium Grade mm 46 is designed for the quintessential globetrotter, quintessential the for designed is GMT6 BRM new The adorned with 24 country flags instead of traditional city names, city of traditional instead with flags 24 country adorned a colorful way world. the to tell around time a colorful to 100 meters, black or beige nubuck strap. nubuck beige or black meters, to 100 USA @ BRM-Manufacture.com

© 2019 BERNARD RICHARDS MANUFACTURE COVER STORY BY ANNAMARYA SCACCIA ON SKILLS LEADERS USE EDGE... TO DEAL TO WITH TODAY’S CONSTANT CUTTING CHANGES. EDGE IMAGINE THIS:

For six decades, your family’s bank was the go-to financial institution in the neighborhood. But four years ago, an edgy local start-up launched, promising better banking through mobile apps. You’ve noticed your client list start to dwindle, which means lower profits and suddenly fewer resources to get ahead of this new competition.

Or maybe your health-food company is only a decade old, but new state regulations are threatening its viability. The stricter rules call for changes to your products, which would mean altering your entire supply chain. The modifications will be too costly to make, but

THE SOLUTION New research is laying out the skill sets CEOs if you don’t make them, then you’re out of need, including many their predecessors didn’t. business for good.

If such scenarios sound familiar, it’s because as any corporate leader has discovered, each year, if not each month, seems to bring a new “crisis” for one company after another. It wasn’t always this way—in fact, firms of the previous century

WHY IT MATTERS were lauded for creating stability in their Firms caught flat- footed rarely make it. businesses. But in today’s world, it’s reasonable to assume that the power of, say, artificial intelligence or 5G technology will upend your business—if not today, then tomorrow. Or that a certain giant retailer will summarily decide that “one-day delivery” is now the order of the day, flattening one competitor after another. All of

THE PROBLEM which, like a looping nightmare you can’t wake In too many cases, experts say the C-suite hasn’t adapted to the swirl of changes in their industries. up from, is familiar in C-suites across the globe. What is less known: how to deal with it.

28 ON EDGE... TO CUTTING EDGE

Naturally, there are tomes on leadership that preach prin- take, including the $550 million purchase future but to also be curious about it. “I had the curiosity gene ciples that can apply even to a volatile culture. But experts say THE CRUCIAL of Kensho Technologies in 2018, the since I was 5 years old,” he says. “One of the things that has that much of the advice has become a little too quaint. With largest AI acquisition at the time in the grounded my career is that I always want to be learning.” unprecedented technology and mounting expectations from CURIOSITY United States. This acquisition is playing Indeed, curiosity, like the ability to anticipate, is becoming both workers and customers, the speed of all things in busi- an important role in S&P Global’s contin- a coveted leadership trait in today’s economy, experts say. And ness is accelerating: organizations are innovating faster, con- GENE ued development of AI, cloud, machine that curiosity translates into results: Research by the Korn sumers are spending faster, and systems are crumbling faster. learning, and robotic tools to help its Ferry Institute (KFI) has found that midcap companies with “It’s always been tough to be CEO, but it’s tougher today,” says WITH ROOTS DATING BACK TO THE clients make timely and well-informed highly curious CEOs tend to post operating profits 32 percent economist Linda Hill, a founding partner of Paradox Strate- 19th century, S&P Global is the foremost decisions. Along these same lines, Peter- higher than companies with less-curious leaders. What’s gies and a professor at Harvard Business School. “CEOs are provider of financial information. It oper- son also recognized that the upskilling of more, CEOs who are curious and learning agile have a strong realizing the way things worked in the past doesn’t work in ates the well-known ratings agency, is the employees is core to the company’s suc- advantage over competitors because they’re better at building the future.” primary source of research and real-time cess. In 2019, S&P Global employees com- up the digital literacy needed to fully understand and deploy One thing they’re realizing is that their staying power is data to institutional investors holding pleted tens of thousands of technology emerging technologies. Without that understanding, experts not what it used to be. Although average CEO tenure is slowly billions in assets, and is the world’s largest courses, giving them vital new in-demand add, few organizations can survive. increasing, a recent Conference Board report found that the resource for indices—the most common, skills and helping solve important busi- “It’s not the technology that causes the disruption. It’s appli- rate of CEOs fired from S&P 500 companies increased by of course, being both the S&P 500 and the ness problems. But when asked which cation of it,” says Vivek Wadhwa, a technology entrepreneur 38 percent in just a one-year period, from 22.1 percent in 2017 Dow Jones Industrial Average. But today, skills may have mattered the most during and professor at Carnegie Mellon. “Companies either have to to 30.5 percent in 2018. Meanwhile, a medium-sized firm is disruption spares no business, which is this period, Peterson says he and his team learn about these advancing technologies and how to survive about four times larger, on average, than it was 20 years ago, why the company’s CEO, Doug Peterson, needed not only the ability to view the them, or they’re going to be out of business.” according to the Harvard decided a few years ago that he Business Review. And in this needed to, in his words, “transform rapidly changing business the business” from a conglomerate landscape, a new kind of Midcap with publishing and financial infor- LEADERSHIP leader needs a new toolbox of mation assets to one narrowly focused PLUS skills and traits. “CEOs need companies with on the financial markets. to build organizations where highly curious Peterson knew that to transform they’re not leading people CEOs tend to S&P Global, a comprehensive strategy Agility: check. Emotional intelligence: check. Flexibility: check. Leadership skills into the future, but cocreating would need to be created that elevates are being reviewed and disrupted as much as many businesses are today, creating the future with them,” says post operating customer orientation and technol- several new attributes leaders must consider. New research and interviews with Hill. “That requires different profits 32% ogy to completely new levels. So he muscles.” took the challenge to his Operating CEOs suggest four more traits that fit today’s challenges: To see this kind of modern higher than Committee. “First and foremost, we was viewed as a weakness. improved workforce and leadership in action—the collectively agreed that to continue CURIOSITY Today, experts and business better customer engagement. companies with leaders consider humility “Communication skills are at kind that will likely get less-curious to be successful we must put the cus- Being curious is not a a necessary component of a premium,” says Dan Kaplan, firms through the newborn tomer first in everything that we do. characteristic that often authentic leadership. “CEOs a Korn Ferry senior client decade—Korn Ferry inter- leaders. And every single scenario we looked springs to mind when thinking are no longer this rarefied, partner. about high-powered CEOs. But elusive persona,” says Bill viewed three CEOs who at ended with a strong focus on data it’s one that’s becoming more Gisel, CEO of Rich Products. each pulled through their own unique challenges. Among and technology as a core strategy,” he says. common among today’s most “They need the ability to relate DECISIVENESS them were the head of the world’s premier provider of credit Artificial intelligence, machine learning, successful leaders. “Being to people, and create context curious about other people and meaning.” Stalling is just not an option ratings, benchmarks, and analytics in the global capital analytics, automation, and robotics—these helps you understand them,” in the C-suite in an age of and commodity markets; the founder of a rising Canadian data-driven technologies kept coming up says Eric Frazer, author of lightning-fast changes. technology firm; and the leader of a giant food-products firm in the situations that the organization The Psychology of Top Talent. GREAT COMMUNICATION But quick thinking must with 11,000 employees. Each CEO, we discovered, has had examined as necessary capabilities to be And that, he adds, fuels high SKILLS still be prudent, experts performance. say, especially as the risks their share of “on edge” moments—and each said they came successful in the future. The old guard, and many in business become more out ahead by tapping into skill sets their predecessors might All of which would ultimately shape current leaders, used to leave uncertain and volatile. “CEOs never have needed. the acquisition strategy Peterson would HUMILITY communications to their PR don’t have time to look at department. Now, CEOs are things in depth as in the past,” Certainly not a trait that great opening their doors, with the says Padma Thiruvengadam, CEOs of the past bragged understanding that greater CHRO at Takeda. “They need to about—for some, being humble communication leads to an make decisions quickly.”

30 NOV OCT DEC SEP JUN DEC 1965 1973 1993 1999 2007 2007 THE PEANUT THE ENERGY THE DVDs KILL CORPORA- THE GREAT Business leaders have been BUTTER SHOCK FELT FREE-TRADE THE VIDEO TIONS PICK RECESSION GRANDMA AROUND THE DEAL THAT STAR PURPOSE OVER NEARLY dealing with disruptions for ages. GOES TO WORLD CHANGED PROFITS DESTROYS WASHINGTON MANUFAC- Netflix intro- THE ECONOMY But the rate of such challenges has The Organiza- TURING duces monthly B Lab certifies Ruth Desmond, tion of Arab subscriptions for its first 82 B jumped since the 2008 recession. known as the Petroleum President Bill its mail-order Corp companies “Peanut Butter Exporting Coun- Clinton signs the DVD rental ser- based on their Grandma,” tries (OAPEC) North American vice. The Silicon social sustain- takes on the US imposes an Free Trade Valley–based ability and Food and Drug oil embargo, Agreement—or start-up’s busi- environmental Administra- causing oil NAFTA—into the ness model performance. The collapse of tion (FDA). The prices to sky- law. The legisla- topples the These certifica- the US housing homemaker rocket 350%. tion expands video-rental tions plant the market and sub- turned consumer The higher trade among industry and seeds of the sequent credit PICKING advocate pushes energy costs set the US, Canada, will eventually modern purpose crisis triggers the agency to off an economic and Mexico, shake up cable movement, one of worst standardize the downturn and creating the companies. as more com- economic down- definition of eventually force world’s largest panies begin turns in modern peanut butter companies to free-trade area. to seek out B history. The in order to limit lay off As a result, Corp status by Great Recession UP THE the amount of workers. manufacturing, focusing on pur- lasts two years, chemical addi- particularly pose and social costing the US tives organiza- within the auto good. nearly 8.7 mil- tions put in their industry, begins lion jobs. PACE products. to transform.

MAY NOV SEP MAY JUN OCT JAN APR 2011 2012 2014 2015 2016 2017 2018 2019 THERE’S A THE FIGHT CONSUMERS EQUAL THE BRITISH A RECKONING PLAYING AMAZON NEW WAY TO FOR $15 GETS DECLARE WAR PAY FOR ARE LEAVING? BEGINS IN THE TIT-FOR-TAT WANTS CATCH A CAB U N DE RWAY ON CLIMATE EQUAL CORPORATE WITH TARIFFS TO MAKE CHANGE WORK The United WORLD ONE-DAY The ride-hailing More than Kingdom US President DELIVERY app Uber rolls 200 fast-food More than votes to leave Several Hol- Donald Trump A REALITY out in New York workers in New 300,000 people, the European lywood actors imposes his first City, a year after York City walk including top Union. But the come forward round of tariffs Amazon an- launching in San off the job to business leaders, impending exit, with allega- on Chinese nounces plans to Francisco. The demand union march in New known as Brexit, tions of sexual goods. The make free one- start-up’s pres- rights and an York City to de- Boston-area is shrouded in misconduct ensuing trade day delivery the ence sends New increase in min- mand action on investment firm uncertainty, against film war with China default option York’s taxicab imum wages to climate change. Arjuna Capital with no real producer Harvey rattles investors for its Prime industry into $15 an hour. The Protestors take starts the pay- clarity around Weinstein. This and business customers in a frenzy and is strike launches corporations to equity disclo- its impact on the encourages leaders alike, as North America. the beginning a global move- task for their sure campaign, UK’s economy. other women to the economic Leaders in the of many show- ment spanning role in pollution, prompting British business publicly share volatility creates logistics, dis- downs among more than 300 and challenge corporations to leaders become their own sto- challenges for tribution, and Uber, drivers, cities across six leaders to make release annual more anxious ries of sexual organizations. transportation and cities. continents, and sustainability pay-gap reports. and risk-averse harassment industries begin leads to leg- a key focus of The campaign as a result. and assault in to sweat about islative action their missions. sheds a brighter the workplace. how they may that raises the light on the Organiza- handle this new minimum wage gender pay tions begin to shipping option. for 22 million divide, which grapple with workers. organizations their leaders’ begin to address inappropriate more seriously. or criminal behavior. ON EDGE... TO CUTTING EDGE

day, [a CEO’s] most important responsibil- THE REACH OF ity is making decisions, and the underlying derivative of making those decisions is EMOTIONAL based on your emotional intelligence.” Though growing in prominence now, INTELLIGENCE emotional intelligence wasn’t considered a big deal in most C-suites a decade ago. removed—would have been set by regulatory requirements. But CLIENTS WERE RAVING ABOUT THE Instead, the emphasis was on whatever CEOs today need a wider vision that looks beyond profits or firm, saying “It saved our business” or traits it took to improve the bottom line. legal directives. Unsure whether other batches were affected, “Please, don’t hire them, because they are But, experts say, the changing business Gisel decided to expand the recall scope far beyond federal reg- ours!” And it was easy to understand why: environment is placing a higher premium ulations to ensure all Rich products were 100 percent safe—a MonetizeMore, a decade-old ad-tech firm on so-called “soft” skills like adaptability, potentially costly measure. “I knew in the short term that it based in Victoria, British Columbia, had communication, and EI. These skills are would hurt, but in the long term, it reinforced the values of the found the technology and creative team to gaining a bigger spotlight in boardrooms company,” he says. And it did hurt: expanding the recall created help publishers with their long and critical and corner offices. And studies seem to extra work for staff and negatively impacted incentives, he says. struggle to optimize digital ads. support this importance: One recent KFI Still, he adds, “We never, ever heard one whisper of a complaint, But CEO Kean Graham knew that none study found that reflective, self-aware because they recognized the sincerity of that was going to matter if he couldn’t leaders ran 62 percent of the most highly behind the decision.” figure out how to help his clients navigate effective teams, translating into higher Unlike the days of Jack Welch, the a new European Union law known as profitability. Those with low EI ran more legendary honcho at General Electric, the General Data Protection Regulation than half of the lowest-performing teams. this type of authentic, purposeful “Business is (GDPR). The law, implemented two years “It’s about authentic relationships with leadership has become more of a key placing a higher ago after a public uprising over privacy each other and as a team,” says Padma differentiator for CEOs than tradi- premium on leaks on the web, set out a series of man- Thiruvengadam, chief human resources tional skills like strategic thinking, dates requiring key disclosures and greater officer for Takeda Pharmaceutical Com- experts say. In fact, according to other ‘soft’ skills like protections. Fines alone could run as high pany. “It goes beyond a transaction.” KFI research, 67 percent of investors adaptability, as 20 million euros, or $22 million US. “It surveyed across 18 economies believe was very definitely a scrambling point,” that legacy leadership is not fit for the communication, says Graham, “something that we needed future. Instead, being able to trans- and EI. These to take head-on.” form constantly, adapt quickly, and skills are This is what the now and the future LEADING lead with a compelling purpose have can look like—the need to reinvent a become enablers of success for CEOs. gaining a bigger sizable portion of your business, and fast WITH A “For the first time, people are wor- spotlight.” enough to keep up with competitors. ried about if the CEOs are coming in Graham and his executive team created a PURPOSE and asking what companies are doing consent-management platform that made about social issues,” says Bernhard Raschke, a senior client it simpler for MonetizeMore’s clients to FOR HIS PART, BILL GISEL’S “ON partner leading Korn Ferry’s EMEA Supply Chain Center of become GDPR-compliant, a task that took edge” moment wasn’t related to tech or Expertise. In other words, organizations need to have purpose- some obvious solutions-oriented mindsets, new laws. Instead, in 2013 the CEO of the ful leaders at the helm if they want to stand out in today’s among other skills. But Graham believes large food maker Rich Products initiated a hyper-changing business landscape, with studies supporting that a high level of emotional intelligence, recall of a dough-based ingredient after the the notion that when it comes to profits, purpose pays. or EI, may have mattered even more. The company discovered a serious contamina- But it only pays, experts say, if that value-driven leadership is term, popularized by best-selling author tion in some of its consumer-branded more than lip service. Leaders, like Gisel, have to live and breathe Daniel Goleman 30 years after its formula- retail products. Rich Products came to the their purpose—and make sure their companies do too. “A lot of tion, represents a capability that allows for decision that the potential contamination organizations pride themselves as having core values that reflect deploying level-headed empathy during came from a raw material and pulled all of their principles,” says Eric Frazer, a psychologist and the author frenzied times. “Emotional intelligence is the affected food items from store shelves. of The Psychology of Top Talent, but many lack the comprehensive so far-reaching amongst everything that The scope of a recall—that is, the follow-through. “Companies that have parity between their you do,” Graham says. “At the end of the amount and kind of product to be programs and values are doing the best,” he says. 1

35 THE PROBLEM FAST-TRACKING

The speed of medical advancements is tremendous. The ability to implement them is not. CARE

WHY IT No one, it seems, is happy MATTERS with healthcare, but Atrium Health

Few people feel President and CEO Gene Woods believes the nation’s his nonprofit has some answers. $3.2 trillion healthcare system is effective. By Russell Pearlman

THE SOLUTION WAS A STANDARD CAREER FAIR AT Woods believes Penn State, and Eugene A. Woods, a sophomore at the school at the time, Atrium can fast- went to hear about international business, the field he was planning to track medical pursue.IT And for the first 15 minutes, he listened intently as a speaker explained that every advancements firm needed bright young minds, that the industry was going through a huge transforma- to reach those tion, and that anyone pursuing the career could make a huge impact on communities. who need them, It all sounded fantastic to Woods, except for one thing: the speaker wasn’t talking regardless about international business. He was an administrator at the local hospital. Woods had of a patient’s mixed up his days and wandered into the healthcare career fair. But then something insurance status. magical happened. Instead of feeling embarrassed, the young student became inspired. “Right after, I said, ‘I’ve found my career,’ ” Woods recalls. “In 1950, it took 50 years The Nonprofit for all medical knowledge Healthcare in the country to double. Hurdle Today, it’s 73 days.”

FEW CEOS WOULD BE HAPPY IF MANY OF THEIR CUSTOMERS DIDN’T PAY, BUT THAT’S PART OF THE NONPROFIT BUSINESS THAT WAS MORE THAN 30 YEARS AGO, MODEL, INCLUDING ATRIUM HEALTH’S. and today Woods, the president and CEO of Atrium Health, finds himself a leader in the industry he wandered into—and at a time when all eyes are focused on it. After all, healthcare matters to everyone, but with Expenses ballooning costs and government leaders waffling over the best government plan, leaders like Woods are taking in several strategies to provide the right prescription for care. With more than 40 hospitals and 900 care centers, Charlotte, North Carolina–based $ 363 million lost caring for Medicaid patients Atrium is one of the biggest healthcare firms in the southeast United States, and it’s growing fast. As Woods sees it, one of the more critical missions is transforming $ 852 million lost caring for Medicare patients healthcare into so-called “value-based care,” in which doctors and care providers focus on preventive care instead of just on giving (and being paid for) procedures that treat $ 381 million lost because patients didn’t or couldn’t pay illnesses. That, and effective growth within the organization. Within the three short years of his tenure, Atrium has acquired a slew of healthcare $ 339 million to subsidize uninsured patients providers, bolstering its revenue from $9 billion to $12 billion. The most noticeable combination is with Wake Forest Baptist Health and Wake Forest University, a tie-up $ 133 million spent on other community outreach efforts that gives Atrium an academic research lab and a medical school. Woods hopes the Wake Forest deal can help fast-track medical innovations to patients. Atrium also is building Total value of uncompensated care: a medical school near its headquarters in Charlotte (the city’s first), so the firm can produce the continuous pipeline of agile, $2.07 billion, results-driven medical professionals the new value-based care model needs. 20.7% of operating expenses Such moves by the CEO haven’t gone unnoticed; Woods’s name now shows up on a variety of “most influential healthcare executive” and “top minority executive” lists. And Penn State hasn’t held his sophomore slipup against him: the school’s alumni association gave him its top annual award. Katie Bell, Korn Ferry’s senior client partner and global account lead for healthcare, sat down with Woods in Charlotte to talk about healthcare’s rapid transition, the challenges of buying other healthcare providers, and how to diversify the industry’s leadership.

FAST-TRACKING HEALTHCARE 39 “We do believe that SO HOW DO YOU HELP KEEP THAT SENSE OF COMMUNITY INTACT? There’s this calibration that occurs on an ongoing basis between enterprise-wide initiatives that healthcare is a right, build system-ness with making sure that we’re hearing the voice of the local community in a real, not a privilege.” authentic way. Part of why we’ve grown so fast is that the message resonates with the communities. HEALTHCARE IS A MASSIVE ISSUE IN THE 2020 PRESIDENTIAL ELECTIONS. WHAT WOULD HEALTHCARE LOOK LIKE IN YOUR IDEAL WORLD? I think people who want healthcare certainty are going to be woefully disappointed. Where that leads us at Atrium, it makes us say there’s so much we can do while politicians make up their minds. So we focus on quality, community, making sure we make investments in core business lines. We do believe that healthcare is a right, not a privilege. Whatever model is adopted, it has to include taking care of those who are uninsured. Among the options, the most attractive to me is a Q&A Medicare-like option, not mandatory, that people under 65 can select.

HEALTHCARE ISN’T ALONE IN STRUGGLING WITH PROMOTING EVERY INDUSTRY IS DEALING WITH CHANGE. WHAT’S HEALTHCARE GOING THROUGH? WOMEN AND PEOPLE OF COLOR INTO LEADERSHIP In 1950, it took 50 years for all medical knowledge in the country to double. Today, it’s 73 days. POSITIONS. WHAT’S ATRIUM DOING? Wake Forest University, whose medical facilities we are combining with, is growing kidneys in We’ve built some internal systems to help promote women and “The folks the laboratory. They have a 3-D printer that’s printing noses and ears. This will revolutionize our people of color, and when we work to fill out leadership posi- capabilities. But how we’re training this next generation of clinicians has to evolve, too. tions, we ask for women and people-of-color candidates. But the who are board has to set the tone for the organization, and if you look WHAT’S ATRIUM’S PARTICULAR PLACE IN HEALTHCARE? now, one out of three members here is a person of color. Our mission is to improve health, elevate health, and advance healing—for all. The “for all” part On the national level, at the American Hospital Association choosing is central to our DNA. We’re the number one Medicaid provider in North Carolina, providing we got 1,200 hospitals to pledge to diversify leadership and the $5 million in community benefit each day. But also, for those who have insurance, we want them to board. There’s also dealing with disparities of care. healthcare as select us for our clinical excellence. We’re investing $1.5 billion in renovations and modernizations to make sure we can have the type of healing environment that people want to continue to come to. HOW DO YOU IMPROVE THAT CARE GAP? a profession You have to understand it first. A lot of times the challenge is YOU’VE HAD ATRIUM EMBARK ON A SLEW OF ACQUISITIONS. collecting the right demographics of the person that’s coming in know it’s WHAT’S THE STRATEGY THERE? for care. I refer to myself. When I show up and you don’t ask me The year I joined, 2016, had the highest number of acquisitions in healthcare history. The board about my ethnicity and race you might assume that I’m African changing asked me if that was a blip or a trend. My conclusion was that it was the beginning of a trend. And American. But I’m actually half Spanish. Not having quality data in 2017 and 2018 we saw even more mergers, including megamergers of insurers. I saw what we may not help you understand the disparities in care. fast.” had—strong clinical capabilities and a strong cadre of physician leaders—and felt that those traits are scalable and transferable. We felt if we were to come together with like-minded partners that we WITH ALL THE CHANGES IN HEALTHCARE, WHAT WILL could come together with something unique in this region and beyond. ATRIUM LOOK LIKE THREE TO FIVE YEARS FROM NOW? I want us to be known for leading the transformation the field is going through now. We want to WHAT’S MADE OTHER PROVIDERS WANT TO SELL TO YOU? be a modern academic healthcare system. That includes folding in the innovation quarter that We actually don’t use the term acquisitions or mergers. We use the term strategic combinations, and I Wake Forest University created that has over 170 medical start-ups (ironically, most are based in the don’t think we use that euphemistically. former headquarters of a tobacco company).

REALLY? YOU’RE GOING TO NEED A BUNCH OF TOP TALENT FOR THAT, RIGHT? The number one challenge, especially in the nonprofit world, is the loss of community control. Some The folks who are choosing healthcare as a profession know it’s changing fast. The question is of the people that work at these places will say that their mothers, fathers, grandparents were all whether our training will keep up with that. It’s why we’re building a medical school. There will born in this particular facility. We want to convey that we are including them in the family but that be an appropriate focus on basic science. But we want to get people out into the field, into the they will be participating in deciding what we will be, together. communities—translational science, if you will. We aim to make sure our training facilities, teach- ers, and capabilities match the young folks who are coming in looking for that kind of thing. 1

FAST-TRACKING HEALTHCARE 41 Electric Vehicles:

Lithium is not a rare mineral, but thanks to the growth 3 in electric vehicles it is suddenly an Li in-demand Lithium one. Can producers keep pace?

By Peter Lauria

43 Thacker Pass

a desolate part of the northern Nevada desert, more than 60 miles from the nearest town, In lies a major key to the United States’ ability to compete in the electric-vehicle market of the future. Thanks to a volcanic eruption millions of years ago, the area is considered the largest known lithium deposit in the US—and it is the proposed new site of what will ultimately be the largest lithium mine in North America. Make no mistake; the race to procure lithium is on. While the mineral is Known as Thacker Pass, not rare, the expected growth in electric vehicles, energy storage units, mobile the mine is budgeted at more devices, and other technology that uses it in batteries means that lithium is suddenly hot. The International Energy Agency estimates electric-vehicle sales than $500 million, and upon of between 23 million and 43 million annually by 2030, for instance. “The industry its completion in 2023 it is has moved faster than lithium development has,” says Seth Steinberg, a principal with Korn Ferry’s Supply Chain Center of Expertise. “There’s concern amongst our expected to produce just less clients about their ability to meet demand.” than 44.1 million pounds of The Problem There’s no question that the electric-vehicle market is only going to get bigger. Growth in electric vehicles is The question instead is how fast. Volkswagen, for instance, plans to make more than lithium hydroxide annually. outpacing the supply of lithium 70 electric models by 2030. Amazon is already on record with a commitment to buy “The time required to line up the available to power them. 100,000 electric vehicles over the same time frame. Part of the reason for the United financing and build a mine and Automobile Workers strike against General Motors in 2019 was the company’s plans Why It Matters to shift more production toward electric and autonomous vehicles. chemical plant takes years,” says Competing in the electric-vehicle “The change in the mix of vehicles is going to change how the market works,” says Jon Evans, president and CEO of market requires contract and Evans. “The US and Europe don’t have the kind of supply chains needed for electric- vehicle production at scale right now.” Lithium Americas, the Vancouver, relationship management to keep the lithium supply chain running. Canada–based company that is “The electric-vehicle industry building Thacker Pass. The Solution Create business and talent has moved faster than lithium strategies to ensure a robust supply of lithium at the right price. development has.”

44 6045 The World of Lithium Lithium mineral spodumene showing fluorescence in ultraviolet light Global lithium production is concentrated in just a handful of countries. But as this map shows, the race is on to construct more plants.

Lithium Assets: The Global View Map of operational production assets

between the US and China, as well “The US and as general apprehension about each other’s technology policies and prac- Europe don’t tices, lawmakers in both countries consider the development of the have the kind of electric-vehicle market a national security issue as well. supply chains Feasibility “Competing in electric vehicles needed for Construction will require creative strategies as pertains to strategic sourcing and Production electric-vehicle supplier relationships,” says Steinberg. That means forming joint ventures, production at Source: Bloomberg NEF profit sharing, and co-owning ven- tures, which hasn’t been a strong suit scale right now.” in relationships between the US and other countries. It’s worth noting that Tesla’s massive Nevada “gigafactory”—a partnership with Japan’s Panasonic— accounts for most of the electric-vehicle battery manufacturing in the US. (Tesla is The very first lithium extraction occurred in California in the 1930s, and the also building a new factory in China.) US ranked as the world leader in lithium production until the late 1980s. After the This security consideration is also part of the reason the US government is trying nuclear arms race ended, however, the market shrank and most of the functioning to promote and support lithium production activities. A Department of the Interior mines moved overseas, closed, or shifted focus to other, more lucrative minerals. regulation finalized in May 2018 includes lithium on a list with 34 other minerals Of course, leaders of that age could not have foreseen the market for mobile devices deemed critical to national security. European countries are taking similar steps to and electric vehicles of the future. But leaders of today could have seen it coming a ramp up lithium manufacturing over the next five years. “Capacity expansion takes lot sooner. After all, mines don’t turn back on with the flip of a switch. years, and the US and Europe are trying to figure out how to keep supply churning,” Four countries today dominate lithium production: China, Argentina, Chile, says Steinberg. and Australia. Thanks in part to some friendly government policies—namely a To be sure, according to the Financial Times, China will control 56 percent of the requirement that foreign automakers use locally produced batteries—Chinese world’s lithium-ion battery capacity by next year, with Europe and the US following makers of lithium batteries exert a great influence over the global market. Moreover, at 19 and 14 percent, respectively. In Australia, no fewer than half a dozen new mines China ranks as the largest seller of electric vehicles, with more than 50 percent of have begun operations since 2017. the market. Part of the reason for the lag in the US is that companies are hesitant to commit US and European business and political leaders have raised concerns over China’s to the capital investments required, especially since the projected return on invest- position as the top seller and battery maker in the burgeoning electric-vehicle ment won’t be realized for years. While growth projections for electric vehicles are market, and not just because of supply-chain issues. Given the ongoing trade battle strong, they are still just projections, and some boards of directors prefer to take a

6046 6047 wait-and-see approach to the market’s development before signing off on hundreds To build up their talent pipelines, of millions of dollars in investment capital. Consider, for instance, that Warren organizations are pulling seasoned Buffett’s Berkshire Hathaway wants to develop a lithium mine in California’s Salton veterans who spent time in the industry Sea but is having trouble securing partners and funding commitments. Or that during its heyday—which would put electric-vehicle sales in the US and Europe combined don’t add up to those in China them at the tail end of their careers alone (fewer than 500,000 units annually for the US and Europe versus more than today—back into the field. Think of 1 million in China). it like a sports team signing a proven Recent market volatility and differing views among analysts and industry experts veteran to a free-agent contract to make about whether or not lithium pricing has reached a bottom are further complicating a final run at a championship. Experts new investment decisions. James Bardowski, who follows the lithium market as the say demand remains high for seasoned chief investment officer at GLJ Research, says new projects are being held up and professionals in both technical and non- expansion has stalled because of the confusion. Bardowski, who thinks lithium technical roles. pricing will continue to decline until at least the second half of the year, points to a Since many lithium jobs are located couple of companies that have said they would review expansion plans or have filed in rural areas, organizations also partner for bankruptcy protection. with local colleges and tech schools and “There is a lot of lithium inventory sitting in China that needs to be digested offer incentives such as rotational train- before pricing can change,” says Bardowski. “Right now there is enough capacity to ing to students who stay to work on-site. supply nearly all the demand for electric vehicles until 2025.” Lithium Americas actually created its own class at a college in Argentina to train The relative newness of the lithium market, combined with the nuances in students in lithium-related work who then graduated to working at its location in pricing and supply chains, presents talent-pipeline challenges for leaders. “Organi- that country. zations need strategies to ensure a robust supply of lithium at the right price, and Two factors working in favor of lithium companies when it comes to recruiting there’s a finite universe of people with the skills and knowledge who can do that,” younger talent to the industry are its growth prospects and sustainability features. says Korn Ferry’s Steinberg. Lithium mining is less damaging to the environment than other forms of mining, for instance. “Lithium mining and chemical purification is poised to take over the smokestack part of the economy,” says Lithium Americas’ Evans. Of course, there is a downside to that—workers in traditional auto and energy plants could see their jobs moved overseas or lost without reskilling to transition to new energy roles. Sales Spark Still, with many lithium mines being either retrofitted or built from scratch, they

Electric-vehicle sales (forecast here in millions of units) are expected to take off over the next decade, sparking concerns that the supply of lithium won’t keep pace with the demand. “There’s a finite universe of people with the skills and knowledge to

Source: Bloomberg NEF BNF Forecast for Note: Europe includes ensure a robust supply of lithium Annual Passenger EU + EEA + Switzerland 9.6 EV Sales (In Millions) at the right price.” 7.7

United States offer young engineers an opportunity to create innovative and sustainable features Europe

5.0 that can limit environmental damage. Mines are being built away from ecologically 4.7 China sensitive locations, such as areas that are susceptible to wildfires. Designs also call for them to be as close to carbon-neutral as possible or to minimize the use of fresh

2.4 water through recycling. Studies also show that a greater proportion of electric 1.6

1.9 vehicles relative to gas-consuming ones will reduce pollution, and that the recycling 1.1 of the lithium batteries used in electric vehicles will ultimately reduce reliance on .07 .05 0.4 0.3 new mining. “Lithium chemical companies can do well and do good by leveraging smart 2021 2018 2019 2027 2022 2023 2025 2028 2024 2026 2029 design and community relations to create an auto industry that is more environ- 2020 2030 mentally sustainable than the one we have today,” says Evans.

60 48 49 FROM ANTIQUITY TO AI: A STOIC RENAISSANCE

Best-selling books. A following among some corporate heads. An ancient philosophy is making a comeback. But why?

By Meghan Walsh says Hansson, who also authored the programming language Ruby on Rails, which powers web apps like Airbnb, Hulu, and Twitch. “Most businesses go out of business. When I can remove the fear that it’s all going to end, the calmer my life is.” It’s a practice ancient philosophers termed “negative visualization,” which Hansson learned after entrepreneur and author Tim Ferriss recom- mended he read A Guide to the It was early November 2018, Good Life: The Ancient Art of and the Woolsey Fire hurtled through Stoic Joy by William B. the Santa Monica Mountains, devour- Irvine. Stoics also dabble ing hundreds of structures with stun- in self-imposed ning ferocity. As the fire drew closer austerity as The Problem and gusty winds changed direction a means of Different guiding principles can be confusing unpredictably, David Heinemeier honing oneself for managers and corporate chiefs. Hansson, known as DHH, imagined against the his Malibu Hills home going up in hardships of Why It Matters flames. It wasn’t a morbid hallucination. life. So when Leaders are more effective when their world Instead, the Danish programmer turned Hansson finds is in perspective. tech darling deliberately envisioned himself impa- with pixelated precision the flaky ash tient that his The Solution For some, looking centuries back can his home might become; he played out Uber is taking be helpful. the years of battling insurance adjusters five minutes that would inevitably follow. Without instead of the regret or yearning, he simply said good- quoted two, he takes the bus. He eats bye to the hazy sunsets and crystalline cheap cheeseburgers and ventures into memories unfulfilled. the cold underdressed. “This modern Though in this instance the flames life that we’re living is smothering us in were real, it wasn’t the first time the comforts,” he says. 40-year-old cofounder of Basecamp, a Sure enough, now it’s Stoicism that’s project management software company, catching fire. 52 had fantasized losing that which is most A growing number of people, from precious to him. For years, Hansson has gilded elites to everyday folk, are shed-

A STOIC RENAISSANCE A STOIC been imagining worst-case scenarios ding the 21st-century accouterments of as a way to channel the anxieties that comfort in exchange for a Hellenistic come with running a growing business. philosophy born almost 2,300 years (He’s also a father, a successful race car ago that extols the virtues of detach- driver, and a New York Times best-selling ment and discipline. Stoicism is the author.) “As I acquire things, I keep in antithesis to the overly accommodating, mind these things could be temporary,” snowflake culture of recent generations.

FAST-TRACKING HEALTHCARE 53 It urges adherents to identify what is on intention and action. This may within their control—essentially only sound familiar if you’ve ever heard the personal character—and to let go of closing prayer recited at 12-step meet- worrying about all that is external, ings: “Grant me the serenity to accept whether that be a natural disaster or the things I cannot change, the courage another’s expectations. Proponents say to change the things I can, and the eudaimonia, the Greek word for prosper- wisdom to know the difference.” ity and well-being, can be found in the After the fall of the Roman Empire, virtues of courage, justice, and wisdom, Christianity and theology eclipsed Sto- rather than worldly success. icism and philosophy. But throughout Of course, the philosophy does have its critics; some call it outmoded, others a hollow life hack. But advocates point Executive coaches who follow out that today’s modern brand of Sto- icism has spread broadly and briskly— it say the philosophy can reduce from its Silicon Valley adopters to the anxiety and make for more worlds of sports, military, and media, to name a few. Almost every week a new nimble leaders. book is released on the topic. But why, after two millennia, is Stoicism seeing a the centuries, countless leaders and resurgence now? And does it deliver on artists, from George Washington and its promise of greater purpose? Bill Clinton to Shakespeare and J.K. Rowling, have returned to its teachings for guidance. While many Greek and hile today the Roman philosophies from antiquity word “stoic” is most remain frozen in the past, this one has often employed as proven to be easily adaptable. aW lowercase synonym for emotionally Seven years ago, a small group of aloof, the term originates from the academics and psychotherapists in Greek name Stoa Poikilê, which refers London organized the first Stoicon to the muraled porch in Athens where conference in an attempt to bring Sto- the intellectual seeds of Stoicism first icism into the modern era. The annual germinated. Around 300 BC, in the meeting has since traveled to New York, wake of Plato, Aristotle, and Socrates, Toronto, and Athens, growing year a philosopher named Zeno of Citium after year. There are dozens of Stoic began holding public discourse on the Facebook groups, with tens of thou- veranda’s steps. Stoicism would go on to sands of members looking for advice spread to Rome as the reigning school on parenting, teaching, dating, and of thought for half a millennium, greatly athletic competition. Ryan Holiday, the influencing Christianity. former marketing director for American The Stoics taught that virtue is Apparel, has published several New York 55 the only good worth striving for and Times best-selling self-help Stoic adapta- everything else—whether it be health, tions, attracting a cult following among RENAISSANCE A STOIC wealth, or other worldly pleasures—is society’s highest rungs. indifferent. Preferable, perhaps, but “Stoicism is roughly one part theory not worth chasing. Since outcomes are and nine parts practice,” says Massimo uncontrollable, the emphasis is placed Pigliucci, a biologist turned philosophy A DAY IN THE LIFE O F A STOIC professor at City University of New York, who earlier this year published A Almost every week a new book Handbook for New Stoics: How to Thrive in a World Out of Your Control. “It’s is released on the topic. explicit. You don’t have to have a background in philosophy to lose all of my wealth? As Epictetus, she wrote in an op-ed. Others say some incorporate it into your life.” the freed slave and notorious Stoic, of the more well-to-do adherents are wrote, “It is not events that disturb simply inauthentic, allowing those at people, it is their judgments concern- the top to dismiss the impact socioeco- ithout doubt, ing them.” The argument is that when nomic circumstance has on well-being. Stoic-esque tech- we can reframe the minutiae of life in It’s one thing to fast for 24 hours, but niques circulating a broader context, it helps to bring into try telling someone without access to SiliconW Valley have garnered the most focus what matters most. clean water, healthcare, or housing that attention, including fasting, cold show- When entrepreneur and venture those are just trivial externals. ers, and silent meditation retreats. For capitalist Brad Feld, cofounder of Still, scholars say the Stoicism some, these practices can serve a pur- Foundry Group, a large venture capital renaissance is understandable if you pose in building resilience; others firm in Boulder, Colorado, began sink- compare modern times to when the say they can also amount ing into a deep depression, he says philosophy reigned. In the centuries Dr. Alkistis Agio, a former corporate to little more than his life preserver came in the form of before the fall of the Roman Empire, banker, incorporates Stoicism virtue-signaling Stoicism and therapy. He later sent there was cultural transformation and when Instagrammed Holiday’s book The Daily Stoic to all the distemper that in some way resembles into her leadership training and from a multimillion- CEOs in his portfolio. “It completely the current zeitgeist. There was uncer- authored a manual called The dollar Victorian. changed my relationship with what is tainty. Massive inequality. A series Stoic CEO. She offers a few daily Pigliucci started his career happening, what I think is happening, of ongoing and controversial wars. practices Stoic followers rely on: studying how genes interact and what I want to happen,” Feld wrote Flourishing religious fanaticism and with the environment. He waltzes in an email. anti-intellectualism. between the worlds of nature and Executive coaches have also begun Whatever the reason, advocates MORNING nurture, which is where Stoicism has incorporating Stoic frameworks into say a form of Stoicism appears to be Visualize what might go wrong— come to reside. It’s about controlling their work with clients, saying it reaching the very top of corporate including your own death—in the day base reactions and stripping away reduces anxiety and makes for more structures, especially as the so-called ahead, Agio says. Ask yourself, “Have I external values that put us in conflict nimble leaders. “The trouble is most purpose movement expands. An exam- closed the circle?” with ourselves and others, so that it’s people want to change it, control it, ple may be the well-publicized letter possible to, as the Stoics say, “live in avoid it. The last thing they want to that nearly 200 CEOs signed earlier DAY accordance with nature” internally, do is accept it,” says David Langiulli, this year that redefined “the purpose Constantly identify what is socially, and physically. To update who, from his base in Naples, Florida, of a corporation” away from just share- within your control and what is not. Let Stoicism for a contemporary audience, specializes in nonprofit leadership holder value. Instead, the leaders say Pigliucci and others simply swap its development. “When you accept, you companies must have higher guiding go of good and bad. “Amor fati,” Agio divine cosmology for evidence-based can take powerful action.” principles, such as protecting the envi- says. “Learn to love your fate.” If you find research. ronment and treating employees and yourself particularly attached to some What Stoics call “turning the suppliers with dignity. comfort, go without. obstacle upside-down” and “the view ot surprisingly, Or as Hansson—who in the end 57 from above” are reframing techniques, some big names have didn’t lose his house in the fire—puts

EVENING which form the foundation of cogni- criticized Stoicism, it, “If my purpose is simply to make my RENAISSANCE A STOIC Agio reviews the day using this tive behavioral therapy, one of the Nincluding Sandy Grant, a University of business as big and profitable as pos- quote by the Stoic statesman Seneca the most scientifically proven and widely Cambridge philosopher. “The problem sible, that’s a terrible guiding principle Younger as a benchmark: “What evil of practiced psychotherapies. So what with this attitude is that it can lead us for why I’m on earth. Stoicism helps us 1 yours have you cured today?” Where, if I don’t make my numbers? Or if I to accept things that we shouldn’t,” answer the question: Why are we here?” Agio asks, did you act with wisdom and courage? What could be done better? LEADERS IN THE MIST YOU DREAM IT... BY PATRICIA CRISAFULLI WE MAKE IT COME TRUE. & PAT COMMINS www.discover7travel.com 212.822.8998

WE TREK TO RWANDA TO SEE—AND LEARN FROM—RARE MOUNTAIN GORILLAS.

trudge through towering bamboo, stinging nettles, and vines that cover WE the steep sides of Mount Karisimbi, a dormant volcano in northwestern Rwanda. Our excited conversations fade to only quiet murmurs due to the exertion of hiking at nearly 10,000 feet and something else—nervous anticipation. Looking around, all we can see is more and more green—thick, twisting, and seem- ingly impenetrable. Then suddenly, Augustin, the lead guide, stops us with a command: “Get back, get back now!” We scramble off the freshly macheted path and out of the way of a 400-pound silverback mountain gorilla that passes right where we were walk- ing just moments before. The male gorilla stops and assesses us with a glance, then sits down five feet away and munches on a stalk of vegetation. We’ve come to the Virunga Mountains on a remarkable 11-day trip to Rwanda, a tiny landlocked nation the size of Maryland that sits just above the equator. Here, our eyes were opened to this species of great ape, which few people know about and even fewer have seen. Only 1,000 mountain gorillas (a subspecies of the eastern gorilla) still exist. >

/ 59 / People have been studying primates and mak- rustle of leaves. A mischievous adolescent gorilla ing comparisons to humans since Charles Darwin slaps one of us on the knee with an uncannily in the mid-1880s. Given that gorillas share about humanlike hand before scampering away. 98 percent of our DNA, making them our closest rel- Make no mistake: these gorillas are not tame, atives behind chimpanzees and bonobos, it’s hardly although they are habituated to humans. There surprising. Yet on our trek we came away with a few are no fences or barriers here. We came on observations about the gorilla leaders in action. foot—our safari jeep and driver are more than an hour’s hike away. Yet we and the gorillas are all calm. Part of it, of course, is the confidence and Our mission starts in knowledge of our well-experienced guides and Musanze, the fourth largest trackers. But a great deal of our comfort comes, city in Rwanda and home to a research surprisingly, from the fact that gorillas turn out to Population in the Virunga Mountains campus named for the late primatologist have leaders. Mountain Dian Fossey, whose life was dramatized in the Indeed, this group is led by three silverbacks​— Gorillas by the 2003 → 380 2010 → 480 2018 → 604* 1988 movie Gorillas in the Mist. From there, in the so named for the shaggy, silvery hair that covers Numbers towering Virunga Mountains, we begin to follow their backs at maturity. As our guides tell us, *In addition to approximately 400 in the Bwindi Impenetrable National Park in Uganda, one of the social groups of gorillas—the Igisha the tone of any group is set by the dominant for a total population of 1,000. Source: The Dian Fossey Gorilla Fund International Group, which is unusually large with 30 gorillas. silverback’s distinct personality—or “leadership As the gorillas forage for food, the rain forest fills style.” And among the gorillas of the Virunga with the snapping of twigs and branches and the Mountains, there have been three iconic leaders: Shinda, Titus, and Canisbee, silverback takes the high ground to the rear. A human leaders can survive VUCA challenges and according to Felix Ndagijimana, third positions himself closest to us at the entrance even thrive in them. The same can be said for the first Rwandan director of the to the bamboo thicket, where the group shelters the mountain gorillas that are coming back from Karisoke Research Centre that from a sudden rain shower. feared extinction and must continuously adapt to Fossey established. Shinda was His watchfulness is palpable. Although this sil- changes in their environment. a very strict leader who “did not verback hardly moves, his eyes scan left and right. “They are intelligent and highly flexible,” says tolerate any nonsense”; not sur- We had been told to expect such quiet vigilance Dr. Tara Stoinski, CEO of the Dian Fossey Gorilla prisingly, his group reflected that among silverbacks by Dr. Russell Tuttle, a profes- Fund International. One example of their adapt- discipline. Titus was more laid sor of anthropology and evolutionary biology at ability is living in larger groups with multiple back and did not get involved in the University of Chicago: “Watch his eyes. He’s silverbacks, which would have been unheard of minor conflicts among his group. aware of every little bit and blip. He’s very astute decades ago. As researchers observe the growing “But as a leader,” Ndagijimana and alert.” gorilla population adds, “Titus was there whenever As long as there is no threat to the group, the within a limited The tone of any group there was a danger such as from silverbacks allow the other gorillas to carry on as habitat, it appears large a snare nearby or another silver- normal—feeding, resting, playing—as if we’re not groups are becoming is set by the dominant back from an outside group.” even there. Ndagijimana, who is also country direc- the new normal. silverback’s distinct Canisbee distinguished his tor in Rwanda for the Dian Fossey Gorilla Fund, Rwanda plans to personality—or leadership by managing the believes human leaders can learn a thing or two expand the Volcanoes largest gorilla group ever known: from the silverbacks. “Be there to provide support National Park and the “leadership style.” 65 members, including seven and supervision and be laid back at other times.” gorilla habitat. But or eight silverbacks. “The fact there is a delicate balance here between protect- that Canisbee was able to keep ing the gorillas’ habitat and the need for arable everyone together showed he What is their future? land in Rwanda, Africa’s second most densely had some remarkable leadership The mountain gorilla population has populated country. At the local level, protecting skills,” Ndagijimana says. been increasing steadily through con- the gorillas means educating communities that In the wild, this is actually servation efforts, but threats remain. are the gorillas’ closest neighbors and providing quite easy to see. The primary It is no overstatement to say the mountain gorillas jobs such as porters for gorilla treks, as well as silverback in the Igisha Group are being disrupted, and their ability to adapt is additional opportunities for growing food and moves the farthest away from paramount. In leadership terms, mountain goril- making money. Still, human support and philan- us to protect a newborn and las face what may be the ultimate in “VUCA”—a thropy aside, most agree the mountain gorillas get delegates authority to the two business acronym that stands for volatile, all the credit. As Stoinsky says, “We are very lucky other “lieutenants.” The second uncertain, complex, and ambiguous. The best of to work with such a charismatic species.” WATCH OUR VIDEO ABOUT THE MOUNTAIN kornferry.com/institute GORILLAS / 61 / DOWNTIME

It might surprise many glued-to-their-desks employees that some people take their time off—and then some. In fact, according to a report >> Christophe Convent, a Belgian by the Society for Human Resource Manage- The publishing professional, has taken ment, some 5 percent of employees surveyed took a paid sabbatical in 2017, many vacations, but none quite and 12 percent more took an unpaid like the one he did two years ago. sabbatical. Some firms even specialize Sabbatical in it: Convent’s trip was arranged by the It involved spending time with his Cape Town–based sabbatical travel com- 24-year-old daughter, who wanted pany Timeless Africa Safaris. “The experi- Solution to see Africa with him. And they ence completely changed my daughter’s and my life,” Convent says. “It also helped went all out, covering, to name me a lot to plan for the next 15 years to come.” A SURPRISING NUMBER OF EXECUTIVES just a few places, Tanzania, With summer not that far off, we decided to ARE NOW TAKING LONGER BREAKS Kenya, Rwanda, Kivu, Namibia, check in with the firms that are arranging these AND TRAVELING THE GLOBE. extended trips, which run the gamut from special- and South Africa. Total time: ized solo experiences to group programs with By Renee Morad nine weeks. other professionals. Timeless Africa Safaris BASED IN CAPE TOWN, SOUTH AFRICA Laterallife The tour operator’s sabbatical specialists plan BASED IN LONDON, UK journeys that span from a month to two years. It This agency specializes in completely tailor-made all depends on the client’s needs and desires. The sabbaticals. Destinations cover the globe, though trips range from unwinding and relaxing close to some of the more popular spots have been in nature to tracking gorillas, sleeping in the Kala- Australia, South America, Africa, and India. The hari Desert’s salt pans, or training for a marathon firm specializes in sabbaticals for law profession- with a Kenyan runner. Convent, who is 61, says he plans to return to als, as well as career-break sabbaticals for those Africa within a year to check on a charity that he who want to take time to travel and reflect before started while he was there. Apparently, he isn’t making their next professional leap. Options done, saying he hopes to go on another sabbatical range from partaking in a physical challenge, like to check off a few more bucket list items, like hik- cycling across Costa Rica, to mixing volunteering ing mountains in the Democratic Republic of the with a luxury experience. Congo. “Next time, I’d like to bring my son,” he says. Remote Year Original Travel BASED IN CHICAGO, ILLINOIS BASED IN LONDON, UK For travelers interested in taking a sabbatical with This travel agency offers a three-month sabbati- a group of other professionals, Remote Year offers cal in Peru that takes travelers on a voyage from a variety of experiences, from a four-month Shanti Machu Picchu and the Peruvian Amazon to the sabbatical in Asia to a one-year journey throughout hurried cities of Lima and Arequipa. The trip Latin America, Asia, Europe, and Africa. The pro- includes an opportunity to volunteer in the Sacred gram allows travelers to work remotely throughout Valley. The company also offers a sabbatical where their time abroad. The caveat: travelers must apply travelers can explore archipelagos and majestic and be selected to participate in the program. More fjords during a 42-day expedition around Norway than 1,000 people from 40 countries have partici- and Sweden. pated since the company was founded in 2014.

/ 63 / DOWNTIME

hubris. “Captains Fantastic and hedge fund manager Steve believe they have the answer, Cohen, the show is a great so they stop listening to the example of learning agility. people who are the closest to the Bobby Axelrod (Damian Lewis), business problems,” Cast says. the hedge fund manager, didn’t At a minimum, the show will go to the “right” schools but is teach real-life executives and constantly learning new tech- board directors that the value of niques, skills, and strategies to having a clear, transparent suc- Halt and Catch Fire outperform his competitors (and cession plan is priceless. (AMC) stay ahead of the feds). The show In this 1980s period drama, also provides an entertaining Undercover Boss (CBS) three former IBM employees focus on game theory as every Each episode of this reality set out to make their own “IBM character tries to best the others. Binge- series features a different com- clone” computer, eventually pany leader working in disguise launching a tech giant. The in an entry-level job at his or her enigmatic leader, Joe MacMil- firm. The companies are often lan (Lee Pace), is mesmerizing, Watching billion-dollar businesses, and giving real-life leaders who over eight seasons, senior-level watch the show a glimpse of By Pat Commins managers and CEOs of Waste the power of charisma. But CEOs Management, Norwegian the show is really about the tsunami of changes brought about by digital transformation. MacMillan and his colleagues Silicon Valley (HBO) Succession (HBO) struggle to shape—or at least Created by the writer-director It isn’t surprising that bosses This satire-drama follows patriarch not be swamped by—personal of the workplace comedy Office Logan Roy (Brian Cox)—who critics say computing and the internet. Space, this lampoon of the get a bad rap—just look how bears some resemblance to a certain The tech may be different 30 fast-paced, ever-evolving world media mogul from Down Under—and years later, but the need to of tech start-ups has lots of they’ve appeared on television. his attempts to keep control of his media effectively harness the power of in-jokes for industry players. They’ve typically been cast as secondary characters, and conglomerate, sometimes working with, technology is still a challenge Led by anxiety-filled coder almost always as awful managers. But more recently, but often against, his own children. Roy for all CEOs today. Richard Hendricks (Thomas mirrors an archetype Cast calls “Captain Cruise Lines, and Chiquita Middleditch), a small group of CEOs are taking center stage on the small screen, and Fantastic,” an ego-driven character whose Brands have shown up. Often, Billions (SHOWTIME) programmers faces situations perhaps more surprisingly, some of these bosses are rise to the top builds overconfidence and they learn firsthand of workers’ Loosely based on the battle and dilemmas that are all too actually pretty good at their jobs. Indeed, modern-day personal and professional strug- between the federal government familiar to anyone who’s worked CEOs might enjoy watching the highs and lows of their gles. This show captures Cast’s at a start-up or a giant tech firm. in-the-spotlight TV counterparts. “A good story is much observation about the best TV One of the best lessons involves more memorable than a set of facts, so a great way to portrayals of executives: “There choosing your business partners. drive home a message is through a good story,” says Carter isn’t just a villain, there’s a saint Early on, the main characters Cast, a professor at Northwestern University’s Kellogg in there, too,” he says. Each are figuring out how to finance week, the CEOs are reminded of Hendricks’s idea without giv- School of Management and author of The Right—and the value of being in touch with ing up control. On the show it Wrong—Stuff: How Brilliant Careers Are Made and Unmade. their employees and customers, leads to some hilarious results, We recently binge-watched some network and cable TV keeping employees engaged, but the lesson of finding and and discovered several series that feature CEOs and other and setting goals that serve a maintaining the right partners

business bosses front and center. Sucession and Silicon Valley: Courtesy HBO; Undercover Boss: Dan Littlejohn; Halt and Catch Fire: Courtesy AMC; Billions: Jeff Neumann/Showtime purpose, not a process. is anything but silly.

/ 64 / / 65 / / 1900 Avenue of the Stars, Suite 2600 Suite AvenueStars, 1900 the / of Briefings Additional copies:Additional

PURSUING PLEASURE.

PURSUING LIFE. [email protected] Los Angeles, CA 90067 CA Angeles, Los Endgame by Jonathan Dahl VP, CHIEF CONTENT OFFICER Born in Southern California. Where design, technology and imagination come together.

For people who think the status quo is not status at all. Reprints: Advertising: A Working Playlist ( +1 Service:CustomerCirculation

Prove yourself

Tiffany( Sledzianowski+1 The all new electric Revero. You are the move you make Take your chances, win or loser ( +1 Shannon Erica See yourself You are the steps you take You and you and that’s the only way

46

It doesn’t take a genius to know that the 310 9

310

)

257-0063

iconic rock band Yes didn’t quite have the )

556-8502 )

world of corporate work in mind for these 226-6336 lines in the hit song “Owner of a Lonely Heart.” But work is so intertwined with all we do that you don’t have to be a DJ to enjoy some curious links between the songs that move us and our own will to be inspired by, But the one that really hits me comes from or make sense out of, our work lives. Sara Bareilles. It couldn’t possibly have been You see, if you can just ignore the song’s on her mind, but a Korn Ferry–Rockefeller

title—and intended meaning—you’ll be Foundation study gained national attention and environmentally responsible manner. Produced utilizing solar power in a sustainable PRINTED IN THE U.S.A. amazed how many tunes will speak to you for interviewing and analyzing the traits this way. There I was, for example, head- of all 57 women who ran Fortune 1000 and phones on firmly, dancing and crooning to other big firms. Among the findings: Sur- “Lonely Heart” (fair warning: a sight you will rounded by a world of men running the show, not want to see) before a big presentation. only 12 percent of them said they always You and you and that’s the only way. knew they wanted to be a CEO. More than

Of course, you can just as easily go half gave no thought to the job until someone dark—very dark. Who among us hasn’t had explicitly told them they had it in them.

a terrible boss who couldn’t make up his or Now please skip to “If I Dare” and turn it her mind and tormented everyone in the up really loud. None of this works without the process? That’s where “Barely Breathing” wonderful gift of music ringing in your head. by Duncan Sheik—fifth on my playlist—

becomes a cathartic moment. If I dare to ask it, then I dare it to be true 1 949 ISSN If I dare to risk it, then I know that I’m willing to

I believed in your confusion If I dare to want this, to want more than I have Copyright2020,KornFerry © -8365 You were so completely torn Then I dare to believe I’ll have it in the end Well it must have been that yesterday Was the day that I was born See what I mean? 1

KARMAAUTOMOTIVE.COM

/ 66 /