NEW MARKETS A BOLD MOVE INTO NEW FRONTIERS. WILL YOU BE TALENT READY? Next. A strategic milestone in your organization’s journey. Whether it’s a technical revolution, expansion into new markets, a merger or acquisition, or the launch of a game-changing new product, you will need the right people in the right roles to succeed. You also need the data-backed insight, IP and the tech that will ensure you identify, attract, assess and select the talent that will achieve your strategic goals. Be talent ready for next. Discover more at kornferry.com/futurestep NEW MARKETS A BOLD MOVE INTO NEW FRONTIERS. WILL YOU BE TALENT READY? Next. A strategic milestone in your organization’s journey. Whether it’s a technical revolution, expansion into new markets, a merger or acquisition, or the launch of a game-changing new product, you will need the right people in the right roles to succeed. You also need the data-backed insight, IP and the tech that will ensure you identify, attract, assess and select the talent that will achieve your strategic goals. Be talent ready for next. Discover more at kornferry.com/futurestep Click Korn Ferry Briefings The Voice of Leadership @KornFerryInstitute.com Gary Burnison Chief Executive Officer Jill Wiltfong Watch @ Korn Ferry Chief Marketing Officer Jonathan Dahl See how sexual harassment training Editor-in-Chief videos are updated in the #MeToo era at Russell Pearlman kornferryinstitute.com/times-up. Managing Editor Plus, watch our author take on a Nancy Wong Bryan corporate leader who uses pickup Copy Editor basketball games to de-stress, at Amy Roberts kornferryinstitute.com/basketball. Copy Editor Creative Directors Robert Ross Job Hunt Help Roland K Madrid Art & Production Korn Ferry CEO Gary Burnison, author Daniel Botero Mary Franz of the new book “Lose the Resume, Land the Job,” offers his insights on Marketing & Circulation Manager Stacy Levyn Rozen career moves in a series of videos, podcasts and columns. Project Manager See kornferryinstitute.com/ Tiffany Sledzianowski losetheresume and KFadvance.com. Digital Marketing Manager Edward McLaurin Marketing Coordinator Naz Taghavi Leadership News, Contributing Editors Every Week Lexie Barker David Berreby Korn Ferry’s experts review the leader- Simon Constable ship lessons from C-suite shuffles, major Martin Coyne mergers and other news, summarized Patricia Crisafulli William J. Holstein in our “This Week in Leadership” email Karen Kane on Thursdays. Sign up for the email Doron Levin at kornferryinstitute.com. Christopher O’Dea Glenn Rifkin P.J. O’Rourke Shannon Sims Meghan Walsh Peter Zheutlin Contributing Illustrator Peter Horvath Contributing Photographer Randall Cordero 2 Built 1731, Established 1851 A luxurious experience in the heart of Mayfair 7-12 HALF MOON STREET | MAYFAIR | LONDON | W1J 7BH T. +44 (0) 20 7499 0000 W. www.flemings.co.uk E. [email protected] Ormer Mayfair Restaurant by Michelin starred chef Shaun Rankin Contents Think About This: “There’s been a tipping point among investors. Businesses can be profitable and do good at the same time.” —Virginia Harper Ho, Professor, University of Kansas Cover Story Profit vs. Purpose: The Duel Begins In surprising fashion, Wall Street is telling companies to take the long view and support social causes. Will investors fight back if profits fall? 26 4 Voices on... Features Starts on page 9 Times Up: Can Sexual Taxes Harassment The new tax laws give CEOs Training Come globally a rare opportunity to deal with a nagging topic: of Age? 10 paying talent. Seven in ten compa nies have it, Compensation but critics say this A pay-gap revolution is under key form of preven- way, but is it missing the 12 tion hasn’t changed bigger picture? much in decades. 36 Healthcare Getting teams prepared for natural disasters poses a 14 special challenge. The Future CEO…for History Farming? Nothing may have saved Blockbuster, but facing a powerful 16 The industry has activist didn’t help. an array of high- tech options, but it needs leaders who can separate The Global the wheat from Economy the chaff. A decades-old 44 business tool is having a 18 digital-age revival. Europe’s View Why retail keeps shopping 20 for new CEOs. Hershey: Beyond Chocolate Emotional Intelligence How does the Fixing your flaws without first female CEO weakening your strengths. 22 of a 124-year-old company move the firm into more ‘snacking occasions’? Downtime: 52 InterestsStarts Outside on page 59 the Office 5 On Leadership But there is another reality—one that also can- Gary Burnison not be ignored. The hard fact remains that, in order to survive, companies must grow. At the end of the Chief Executive Officer, Korn Ferry day, CEOs are judged on whether they deliver prof- its. A purpose-driven company that grows by only single digits will lose to a competitor consistently delivering double-digit growth. What may look like dueling priorities—purpose vs. profitability—aren’t really mutually exclusive. If anything, this pair is actually a “dual.” Even as leaders are urged to become more outward focused and purpose driven, profitability cannot suffer. And, as leaders deliver bottom-line growth, they cannot Is It Duel ignore that a growing number of stakeholders— investors, employees and activists—are scrutinizing their social responsibility. or Dual? Yes, purposes and the terminology to describe them come and go, like bell-bottoms and tie-dye. It n an “either/or” world, the used to be ecology—I can remember that one back only real choice is “and.” in elementary school when Earth Day was launched. I This truth can get lost, Over the years, the vocabulary changed—people now speak of carbon footprints and sustainability. though, as scrutiny goes to Corporate social responsibility (CSR) became its one side or the other. Compa- own movement, an incentive to “do good”—and the means to trumpet the positive. Socially responsible nies today are in the spotlight investment is a wave within that movement, to put increasingly for the contribu- money behind what’s deemed “positive” instead of what’s considered “negative.” For companies today, tions they make. Business this may be the harshest spotlight of all. leaders are being called upon to I don’t want to be counted among the cynics, but I think back to a decade ago, in the depth of the stand up and speak out on a vari- worst financial economic crisis since the Depres- ety of issues affecting society— sion. In the Great Recession, sustainability as a pri- ority became a luxury few companies could afford to champion change beyond just when survival was on the table and people’s houses the business landscape. were being repossessed. That isn’t to say sustainability and CSR don’t In his latest “Annual Letter to CEOs,” BlackRock’s matter—on the contrary! But profitability can never Larry Fink wrote: “Without a sense of purpose, no stop being a priority. It isn’t “either/or,” it’s always company, either public or private, can achieve its “and.” CEOs who can balance and synchronize both full potential. It will ultimately lose the license to parts will be the winners. operate from key stakeholders.” That’s very true, and At the heart of that balance is an enduring companies that ignore purpose do so at their peril. fact: It’s always about people. They are the ones 6 Korn Ferry Briefings TheVoiceofLeadership Illustration by Peter Horvath for whom movements and causes should matter most. Purpose-driven talent—and not just millenni- als—will judge their employers by the good they do in the world. And that starts “at home,” with work environments that are inclusive and fair, that allow people to be who they are and bring all of themselves to work. “People want to work for companies But that still leaves People want to work for that engage and motivate them, 30 percent who companies that engage and are not engaged. motivate them, just as compa- just as companies need employees That’s a wasted nies need employees who are who are engaged and motivated.” resource as engaged and motivated. Here, incriminating as a too, is the balance of “and”—motivation and produc- belching smokestack or a polluted waterway. tivity. As Korn Ferry studies have found, firms that Corporate leaders can’t be so focused on external engage and enable their employees have 4.5 times perceptions of what they do in the world—their more revenue growth than companies that don’t. corporate giving and other CSR—that they neglect a Yet only a little more than half (59 percent) of global truth that’s as old as time. People want to be loved. employees feel extrinsically motivated to work hard Being loved means being seen and appreciated. It and do their best. The rest (more than 40 percent) means “you matter,” genuinely and sincerely. feel that their employers’ incentives are inadequate Leaders who pull this all together will rise above to keep them motivated. the rest. They will be far more likely to endure When it comes to intrinsic motivation, the through the ebbs and flows of trends and fads to numbers are somewhat more favorable: 70 percent achieve true sustainability—in their profit and in are intrinsically driven to work hard and do well. their purpose and in their people. 7 A NEW BOOK BY GARY BURNISON PROVEN ADVICE FROM THE NEW YORK TIMES BEST-SELLING AUTHOR & CEO OF KORN FERRY ALMOST EVERYONE GETS IT WRONG. THIS IS HOW YOU CAN GET IT RIGHT. LoseTheResume.com NOW AVAILABLE WHEREVER BOOKS ARE SOLD Voices on… “The speed of the tax reform caught people a bit flat-footed.” Taxing Decisions page 10 Voices on..