Indholdsfortegnelse for 14. June-August 2024 i I by IMD

My arrival in London in 1997 for my first academic job coincided with Arundhati Roy winning the Booker Prize. As a scholar of culture industries, I became curious about the prize's undeniable influence on post-colonial literary fiction. During my research, I was astonished to discover that the Booker Prize was created by British publishers to promote fiction written in English by Commonwealth authors to fend off American competition. The curious worlds of art and creativity that had appeared to orbit a different sun to planet “business” were, in fact, interconnected! It prompted me to think about what we might discover as leaders and organizations if we explored this fascinating intersection between art, creativity, and business. In the June edition of I by IMD, we asked a cast of experts from…

In May, the sale of a surrealist painting by Leonora Carrington fetched $28.5m, setting a new auction record for the British-born artist who spent most of her adult life in Mexico City. This milestone places her in the top five most valuable women artists at auction, alongside Louise Bourgeois, Frida Kahlo, Georgia O’Keeffe, and Joan Mitchell. Les Distractions de Dagobert, estimated at $12m to $18m, sold after 10 minutes of bidding to Argentinian developer and businessman Eduardo F Costantini, the founder of the Museum of Latin American Art in Buenos Aires. As he headed for the exit, Costantini said: “This is a superb piece in the history of Surrealism…I was the underbidder 30 years ago for this picture, and I didn’t want to miss it this time.” What made the…

[ The art of business ] Making sense of the unknown is fundamental to human beings – and a critical skill for leaders. Faced with the complexity of intersecting social, technological, economic, environmental, and political trends, it is more important than ever for leaders to possess the tools to help them make sense of the unknown and discern the implications for their businesses and industries. The abundance of data and an increasing reliance on artificial intelligence tools, such as GenAI, make accessing and collating information straightforward. However, that is only the first step in sensemaking: data analysis can only get us so far. When engaging with and finding effective solutions for the complex and systemic challenges that humankind faces, it is vital to balance both the analytical and creative skills…

We each have a wealth of untapped potential at our fingertips: the power to DRAW. Why not give it a go? D - DARE TO TRY Instead of approaching drawing as a foreign task with lots of inbuilt barriers, dare to pick up a pencil and experiment. Tackle it as if it were a game that may just result in your ability to access new realms of knowledge, unknown, unarticulated, or undiscussable until now. R - RELEASE YOUR INHIBITIONS Being overly focused on the aesthetic of what is being produced is counter-productive. Becoming less critical of your skill at drawing and more willing to sketch ideas is key. Sketching is a quick rough draft to represent an idea on paper so that it can be developed. The artistic quality of…

A recent headline on Artnet proclaimed: “An unexpected player has begun providing auction guarantees.” The specialist art and auctions website highlighted the “unprecedented” decision by the Toledo Museum of Art (TMA) to purchase, in effect, call options on works of art coming up for sale at So-theby’s and Christie’s. The nature of the transactions was straightforward: TMA was interested in buying two artworks that supported its collecting strategy and whose estimates were lower than expected. The museum offered a form of insurance – a minimum bid corresponding to what it believed was a fair price. In return, it received a share of the upside if the artwork sold above the floor price. TMA would either acquire the work for an affordable sum or get its money back. As it happens,…

‘You'll see that up until about 2014, the driver of our energy conservation was: how do we save money? After that, the whole conversation changed. It switched from money to carbon, and we started to take a much more rigorous and scientific approach to sustainability. And, digital started to become a much bigger piece of that, first sub-consciously, then consciously.’ Boston Scientific executive ‘We see a dual responsibility: we have to reduce our emissions by 90% over the next 17 years, but we also see digital as part of a wider solution. Digital capabilities can drive about a 15% reduction in other industries by changing how we work, making buildings and networks more efficient, and increasing productivity in transportation infrastructure.’ Cisco Systems executive This article is based on a study…

Working with the CEO and executive management team, board directors can provide valuable oversight, guidance, and accoauntbility by asking questions about the organization’s strategy, structure, and capabilities that will assess its ability to deal with risk and uncertainty. Strategy Strategy questions focus on the company’s long-term direction, including market positioning, competitive advantage, investment policies, and new business models. Risk-focused questions: • How do we assess and manage risks associated with our strategy? • Have we adequately diversified our client base, products, and investments to mitigate potential losses in volatile markets? Uncertainty-focused questions: • How do we proactively identify and assess signs of disruption in our industry and major geographies? • Have we considered the potential of technological innovation to disrupt our business model/to create new market opportunities? Structure Structure questions…

When Margherita Della Valle, a 30-year veteran of Vodafone, advanced to the CEO role in April 2023, she knew business as usual wouldn’t cut it. With the British telecoms group seen to be underperforming, experiencing a slump in its share price, and a poor return on capital employed, Della Valle, who joined the company as a marketing analyst in 1994 and climbed the ranks to become CFO in 2018, did not allow her “insider” background to stand in the way of delivering immediate, painful, but necessary change. “I didn't want to have any misunderstanding that because I am the ‘usual Margherita’ things will continue as normal,” she tells IMD President Jean-François Manzoni. “In my first message to the organization, I had to say straight away, ‘Make no mistake, things are…

[ Inclusion ] If you can see her, you can be her. This philosophy underpins my dedication to reshaping the portrayal of women and girls in the media. The media acts as society's mirror, influencing our perceptions of possible futures. Yet frequently, when we search for leaders or professionals, male figures predominate. This imbalance significantly affects how genders perceive available roles and ambitions. In 2016, I co-founded the SeeHer movement, aiming to enhance the depiction of women and girls in the media by collaborating with the Association of National Advertisers (ANA) and leading Fortune 500 companies. Our Gender Equality Measure (GEM) has since been embraced by over 100 major advertisers, boosting the accuracy of female portrayals by 82%. SeeHer set a new benchmark, holding content creators and marketers accountable for…

Navigating the complexities of circular ecosystems often requires neutral facilitators or governing bodies to build trust among different parties. These orchestrating bodies can serve as catalysts and be key in shaping the strategic direction, joint action agenda, or co-funding mechanisms for ecosystems. Systemiq is a change company focusing on sustainable energy, nature and food, materials, urban areas, and finance. As a think-and-do-tank, Systemiq helps businesses leverage the power of orchestrating bodies and collaboration for circular innovation and transformation. Battery Pass One such body is Battery Pass, a consortium working to advance the implementation of the digital battery passport based on requirements of the EU Battery Regulation and beyond. Led by Systemiq and co-funded by the German Federal Ministry for Economic Affairs and Climate Action, the consortium comprises 11 leading international…

Deep expertise has long been seen as important for supporting progression to more senior roles. Research has shown that expertise is linked to sustained superior performance and innovation, helping leaders to create value through exploiting current organizational capabilities and exploring opportunities for new sources of revenue. Whether depth of knowledge in a discipline such as finance or cybersecurity or a sector such as construction or luxury retail, a robust understanding of the context in which the leader is operating has traditionally been seen as a prerequisite for success. However, rapid changes in the environment mean that expertise and skills are becoming redundant more quickly. Skill obsolescence is running at the fastest rate ever, with some areas of expertise becoming irrelevant within 18 months, according to the EU’s European Centre for…

Assessing a company's future isn't just about looking at today's bottom line. It's about understanding how prepared it is for the challenges and opportunities of tomorrow. With the IMD Future Readiness Indicator, we measure companies on their "future readiness" – an assessment of their current performance for transformation and potential growth. So, how do we size up a company? Think of it as a full-body MRI for your business, but instead of diagnosing diseases, we're predicting future potential. We start with the basics: are its finances healthy, and can it invest in the future? But we also dig deeper. Is it innovative, launching exciting new products and services? Does it have a diverse leadership team with the vision and flexibility to adapt to change? Is it running an efficient and…

[ PREVIEW ] Will any skills last long enough to make it worthwhile learning them? How can organizations evolve to capture the true power of their talent? What does human potential mean in the age of AI? What kind of leaders will keep pace with unprecedented disruption? In the September edition of I by IMD, our diverse cast of experts will demystify the future of talent development to explore how to harness individual and organizational potential in turbulent times. In the meantime, join us online daily at ibyimd.org, where you will find articles, videos, podcasts and learning exercises that will spark conversation and help you and your teams excel. Scan the QR code to visit ibyimd.org…

1. What is your personal motto? I love this quote from Picasso: “The meaning of life is to find your gift, the purpose of life is to give it away.” 2. Name three traits that make a great business leader. I’ll name five: hard work, determination, integrity, curiosity, and humility. 3. What experience had the greatest influence on your leadership? Spiritual experiences increased my awareness and empathy. Engineering school, McKinsey, and Meta sharpened my analytical and strategic skills. 4. How do you balance well-being, personal life, and leadership? I see these things as a holistic system. If one part does not function, others also fail. I am disciplined and structured in all aspects of my life. 5. What advice would you give to an aspiring CEO? Strategy, execution, and people…

[ In good company ] Apple announced in February that it was exiting the auto industry after a decade of development. You may be surprised to learn that Apple was ever in the auto industry – but you may be even more surprised at just how many US companies are, at least nominally, carmakers. The Wall Street Journal reported that 43 electric vehicle (EV) and battery companies went public in the US between 2020 and 2022, with names like Lucid, Fisker, and Faraday Future. It has been a rough ride for many of them, and most will not last, but some may thrive – like Tesla, the most valuable car company on Earth. For an industry dominated for generations by the “Big 3” in Detroit – General Motors, Ford, and…

174% The percentage increase in spending on works by women between 2008 and 2021, according to Sotheby’s. 109% The percentage rise between 2012 and 2022 in the total value of the works sold at auction by late women artists. 1,600 The approximate number of bidders in competition for artworks of Latin American origin since Sotheby’s launched its strategy to integrate Latin American art into the global modern and contemporary auctions in 2018. $1bn The total value of artworks sold at auction by women artists in 2022. $9.7bn The total value of artworks sold at auction by male artists in 2022.…

[ In the mind‘s eye ] When LEGO Chairman and former CEO Jørgen Vig Knudstorp was asked about the culture he wanted to build as the maker of toy bricks, he had a simple answer: “The culture I’m trying to create is one where every year, when we celebrate another record result, I get up on the beer box and say, ‘Thank you for doing all of the things I never asked you to do.’ I don’t want to control. I want to create context. I want to create clarity of culture and strategic choice, but then I want people to surprise me.” His message is clear: if you want your employees to express their creativity, you need to build corporate playgrounds where people feel empowered and are given time…

While most companies shifted between quadrants, some stayed put for the entire period under observation. After laggards, the second most common quadrant was the eco-warriors. Toy manufacturer Mattel was consistently part of this quadrant. The company has committed to using 100% renewable energy in its operations by 2030 and has significantly increased its use of recycled, recyclable, and bio-based materials in its products and packaging, with the aim of eliminating all single-use packaging by 2030. It recently launched the Mega Bloks Green Town building set, the first certified carbon-neutral toy sold at mass retail. Mattel also launched the Mattel Supplier Code of Conduct, which outlines ethical, social, and environmental standards for suppliers. The company conducts regular audits to ensure compliance and promotes sustainable practices throughout its supply chain. Specific initiatives…

[ Brain Circuits ] When facing uncertainty, effective leaders ask smart questions. But what does this mean? Through extensive research and collaboration with executives, we’ve identified five types of questions for better strategic decision-making. Our research reveals that strategic questions can be grouped into five domains: investigative, speculative, productive, interpretive, and subjective. Each unlocks a different aspect of the decision-making process. Together, they can help you tackle key issues that are all too easy to overlook. Here’s a brief rundown of the types of questions that make up our frame work and how to formulate them: 1. Investigative: what’s known? First, clarify your purpose as you face a problem or opportunity. What do you want to achieve? What do you need to learn to get there? Successive “Why?” and “How?”…

As a leader, you face complex and intricate challenges every day. At times, pinpointing or even articulating these challenges can be tricky. But until you can fully address and resolve them, they have the potential to stall your career, professional and personal growth, and your team’s success. This is where professional coaching comes in. In this series, we share real-world cases from our work with leaders. Read on to discover the specific challenges that face each of the leaders we have coached and the insights that have helped them navigate their own multifaceted challenges and find their own solutions. How might these insights and questions apply to you?…

As part of the leading German startup hub UnternehmerTUM, Circular Republic works with companies and startups to help them realize circular economy innovations and develop new business models. The initiative focuses on connecting organizations to create circular economy solutions, with the aim of changing the system along the entire value chain. “By the 2030s, there will be no successful company that has not embraced circularity into its business model,” says co-founder Matthias Ballweg. “Just as there is hardly a company that can be successful without embedding digitalization into its DNA, the same will be true for circularity in a few years.” He notes three reasons for this shift: resilience, ecology, and regulation. The need for resilience reflects current trends, which see value chains breaking increasingly often and with increasing severity.…

[ The forecaster ] What is common sense is not commonly practiced, and best practices are often pursued only by the best companies. The reason is simple: successful companies labor through the slow work, and that requires a lot of people enduring the emotional pain necessary to get through the hump. In the sweltering heat of Singapore in 2014, Piyush Gupta, the CEO of DBS Bank, felt the walls closing in, not from the tropical humidity but from a chilling realization. His bank had emerged relatively unscathed from the global financial crisis and was in a strong position. But the rapid rise of fintech companies, especially in China, sent shivers down his spine. He watched with growing unease as tech giants like Alibaba made bold forays into financial services in…

In today’s highly interconnected and increasingly complex world, one thing is certain: dealing with uncertainty is a topic boards must tackle head-on. The tangled web of relationships between nations and economies, growing geopolitical tensions, complex supply chains, and massive technological change are increasing the incidence of “Black Swan” events – a term coined by Nassim Nicholas Taleb for low-probability events that catch us off guard and have far-reaching consequences. Think of the global financial crisis or COVID-19. Worryingly, even ordinary events are becoming increasingly challenging to predict and quantify. Against this backdrop, how can boards effectively govern and cushion their organizations from the far-reaching consequences stemming from risk and uncertainty? Firstly, it’s important to differentiate between risk and uncertainty. Risk typically involves known and measurable probabilities. For example, the impact…

The Challenge Jules is VP of a global team that spans India, Latin America, and Asia Pacific. Although Jules is a veteran of the organization and has led multiple teams, this is a new challenge. Team members are in different geographies and time zones and work in different markets and cultures. What’s more, the performance of the team has declined in recent months, and Jules’s appointment comes with a degree of scrutiny and expectation around enhanced productivity. A first and critical objective is to build better connectivity within and across this team, but it’s not easy as the team has historically worked in silos. Individual groups perform exceptionally well in their markets, but they have struggled to work together as a unit and fully align with an organizational culture built…