KORN FERRY KORN TALENT + LEADERSHIP BRIEFINGS ISSUE 19 IS BITCOIN FOR REAL? WAR ON CYBERTERRORISM EVIL IS EVERYWHERE BRAZIL’S BIG PARTY VOLUME 5 VOLUME 2014 AN OASIS OF CALM AN ICONIC BRIDGE. A HIDDEN PARADISE. www.KornFerryBriefings.com A LONG BREATH OUT. THE WHISPER OF FOUNTAINS. THE SCENT OF HIBISCUS. THE COMPLETE ESCAPE. HOTEL BEL-AIR. LIVING IN A LOS ANGELES | +1 310 472 1211 l DORCHESTERCOLLECTION.COM $14.95 US / CAN Spy vs. Spy TM & © E. C. Publications, Inc. CYBERWORLD HBA_AD_8.125x10.875.indd 1 14/12/2012 16:20 19 ON TALENT +LEADERSHIP ON TALENT KORN FERRY BRIEFINGS FERRY KORN SPY vs. SPY TM & Illustration Peter by Kuper Courtesy of Marketing and Circulation Manager Circulation and Marketing Visit: Visit: © Stephen Bruyant-Langer Stephen 1 Trachtenberg J. Stephen E.C. Publications, Inc. Tiffany Sledzianowski Tiffany Christopher R. O’Dea 2 • From the CEO www.madmag.com Lawrence M. Fisher Adrian Wooldridge Adrian Chief Marketing Officer Chief Executive Officer ON THE COVER Stephanie Mitchell Mitchell Stephanie Web Comm. Specialist Michael Distefano Edward McLaurin Byrne Mulrooney Roland KMadrid 3 Averbach Sergio MAD Magazine Robert Hallagan Contributing Editors Contributing Joe Griesedieck Joe Jane Stevenson Victoria Griffith Joel Kurtzman Chris Bergonzi Chris Creative Directors Creative Gary Burnison Board of Advisors of Board Cheryl Buxton David Berreby P.J. O’Rourke Dennis Carey Dennis 4 Manager Project Robert Ross Stacy Levyn Dana Landis Glenn Rifkin Indranil Roy Editor-In-Chief Bob Damon Katie Lahey 5 6 • The Latest Thinking 7 Living 8 Living 9 10 • Predictive Analytics 11 16 12 or Me vs.I? Spy vs. Is itSpy 13 14 15 16 17 18 19 20 21 22 23 24 Michael Hayden Profile: General 24 25 26 27 in in 28 29 30 31 32 33 34 a a 35 36 37 38 Cyberworld 39 Cyberworld 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 65 69 70 71 72 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 a a Digital Wars Fighting 34 35 36 37 Cyberworld 38 Cyberworld 30 39 40 for Real? Is Bitcoin 41 42 43 44 45 34 46 47 42 48 Bugs in Boardroom 49 Makes PeopleMakes Happy Q 44 50 & 51 Puck Wolfgang A: 52 53 54 55 56 57 58 59 52 60 Is Golf in Retreat? 61 60 Brazil’s Big Party Cup: World 62 63 64 65 66 67 65 69 70 • In Review 71 72 • Parting Thoughts 1 “The GARY BURNISON leaders must Leadership in the Cyberworld: have an When That Late-Night answer.” Call Comes In othing good happens after midnight. When your home phone rings, star- tling you at that hour, you automatically Nleap to a worst-case scenario, as you take an instant mental inventory of your life: Where is everybody? Are the kids at home? Did someone die? The same thing happens when a CEO gets a call off-hours or on the weekend. When the caller ID is the corporate attorney’s number, you can count on it being a problem so big, it can’t wait until the next morning. In my career as a CEO, I’ve had nine of those calls. I can recall every one of them. Despite what some people may think, all organi- zations face their share of challenges and even the occasional crisis. The larger the organization, the more likely it will face a problem—somewhere in the world. Look no further than what General Motors is going through because of faulty switches in cars manufactured nearly a decade ago, which are now being recalled—and causing PR and legal headaches for the automaker’s current leadership. Today, life in the cyberworld has made for some insidious situations that come, seemingly, out of no- where. Late last year, a massive data breach at Target affected tens of millions of the retailer’s customers after credit card, debit card and personal information was stolen. Every day, 800,000 new pieces of malware, mali- cious software designed to cause harm, are discov- ered. Among the latest threats is Heartbleed, which is making pulses pound with panic because of vulner- ability in encryption code used by many popular Web sites—and not just social media. Regulators have told banks to plug the Heartbleed hole. Makes you wonder the next time you use your smartphone to transfer money out of your account. Is someone else doing the same—with your money? Those ubiquitous devices we use to surf, search, post, comment, fan and fave—so indispensable, 192 BRIEFINGS FROM THE CEO we spend a full two years of offensively or defensively. The our lives staring at those little leader weighs the options of screens—suddenly make us all possible solutions—while feel vulnerable every time we taking into account all the per- log in (or attempt to change mutations. Strategizing means a password). Just watch the preparing for the worst-case sce- average airport security line, nario—with alternatives when where the conveyor belt looks there are further “surprises” on like a sidewalk sale at Best Buy, top of the unexpected. It’s not and spot the passenger who enough to have a Plan B. suddenly can’t find her iPhone or his Android. It’s a While cybersecurity is a relatively new entry on mad scramble until device and owner are reunited. the list of all the things a CEO must worry about It’s worse than losing your wallet. these days, the response to it boils down to timeless The risks of cyberattacks have never been leadership principles. As a CEO, you are always greater—or more common. going to face new challenges. Your leadership, in In the late summer of 2012, I was enjoying a fact, will be defined by how you lead through the quiet evening at home after a hectic schedule of most difficult times—for you and your organiza- international travel, when I received an urgent call tion. Clarity and confidence come from prepara- from our corporate counsel. At that time of night, I tion, from knowing what you will do and how you knew this wasn’t going to be good news. I was right, will respond when that call comes in—long before unfortunately. Korn Ferry had been the target of a the phone ever rings. cyberattack. For that reason, we focused much of this issue “What?” I nearly shouted into the phone. of Briefings on Talent & Leadership on the cyberworld “We’re under cyberattack.” – its malevolent underbelly, This rapid-fire exchange that is. In this issue, we inter- Gary Burnison went on for 30 seconds, as I is CEO of view Gen. Michael Hayden, a wrapped my brain around what Korn Ferry and former director of the National was happening. Then it was author of the Security Agency. The NSA is at time for action. new book LEAD the center of controversy with LEADthebook.com When the unthinkable oc- revelations that it has been curs, there’s no time to lose. The listening in on conversations leader must trigger a launch sequence of response in held around the world. But it is also the subject of accordance with leadership principles that were de- a security breach of its own, as the story of Edward fined long before a call comes in. The more mentally Snowden indicates. This creates a new tension—the prepared a CEO is for how to respond “when that call watcher who is being watched. comes,” the more confident and clear the leadership David Berreby’s article, “Is it Spy vs. Spy or Me vs. in a crisis. I?” sums up that dichotomy clearly. In the new world A CEO is always going to face unfamiliar prob- of digital vulnerability, all of us play more than one lems and be put in tough first-time situations. Simply role. We are defending our privacy while organiza- stated, there is always going to be something that you tions we directly or indirectly support might be haven’t faced or dealt with before. Good leadership, taking it away. though, adapts; applying previous experiences and This issue also looks at Bitcoin, the controversy lessons learned to the newest challenge (the essence surrounding it and the mystery of who started what of learning agility, which Korn Ferry considers a key is rapidly becoming a global currency. predictor of leadership success). There is more to this issue than cybersecurity During business hours or off-hours, onsite or and new currencies. We also look at Wolfgang Puck’s offsite, on the job or on vacation, a CEO is always culinary empire—and the attention he pays to the “on.” The buck stops on the leader’s desk. Even when experience of dining. We also examine new ways of a CEO is caught off guard on a Sunday night, he/ hiring relying on analytics and Brazil’s preparations she can’t say, “I don’t know.” The reality is the leader to host the World Cup. must have an answer. Leaders and their teams must Even in this world of Spy vs. Spy, we are certain be adept at setting and executing strategy, whether this issue of Briefings will surprise you. TALENT+LEADERSHIP 3 Great potential, ignited. We design, build, attract and ignite greatness. At every level of an organization, there is potential for leadership, growth and knowledge.