OWP 2022: Leading For the Future

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1 OW P 2 2 LEADING FOR THE FUTURE DRIVING RENEWAL AND GROWTH

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110 114 118 124 132 Stakeholders 136 144 People 148 152

160 A CRASH COURSE ON EQUITY, DIVERSITY, AND INCLUSION STRATEGIES Robert Hooijberg

08 14 Keynote 22 Keynote 30 Keynote 38 Keynote 46 50 Strategy 54 58 62

66 70 74 78 82 86 90

FOREWORD Jean-François Manzoni & Misiek Piskorski

CRASH COURSE ON ESG Julia Binder

DRIVING CHANGE: HOW TO CHAMPION SUSTAINABLE BUSINESS TRANSFORMATIONS Julia Binder DIGITAL TRANSFORMATION: BEST-IN-CLASS IMPLEMENTATION Michael Wade

168 Self 172

THE THREE LEVERS OF SELF LEADERSHIP: AUTHORITY, ROLE, AND BOUNDARIES Ben Bryant

LEADING TRANSFORMATIONS WITH ARTIFICIAL INTELLIGENCE Ayesha Khanna

PLATFORMS AND ECOSYSTEMS: HOW TO BUILD AND PROFIT

FROM THEM Mark Greeven

CONDUCTING LEADERSHIP Jason Lai

WHAT WILL HAPPEN IN CHINA NEXT? Mark Greeven

DESIGNING AND LEADING THE AGILE ORGANIZATION Stéphane JGGirod

LOOKING BACK AND LOOKING FORWARD: REVIEWING AND RENEWING YOUR PURPOSE AND VALUES AS A LEADER Ben Bryant

176 LEADING SELF AS EXPLORER: EMBARK ON A DISCOVERY EXPEDITION TO PREPARE FOR YOUR (LEADERSHIP) FUTURE Katharina Lange 180 LEADING SELF: GROWING YOUR LEADERSHIP PRESENCE AND INFLUENCING FOR IMPACT Ric Roi

LEADING SUSTAINABLE TRANSFORMATION AT SHELL Aw Kah Peng

FUTURE OF ASIA: IMPLICATIONS FOR YOUR ORGANIZATION Mark Greeven

DIGITAL TRANSFORMATION: HOWCAN IT HELP YOU TO IMPLEMENT YOUR SUSTAINABILITY STRATEGY? Julia Binder NON-MARKET STRATEGY: ALIGN EXTERNAL STAKEHOLDERS FOR COMPETITIVE ADVANTAGE David Bach

THE FUTURE OF THE WORLD ECONOMY: THE PRICE OF OUR VALUES Arturo Bris

SENSORS, ANALYTICS, AND DIGITAL STRATEGY Amit Joshi

184 192 Impact Story

THE 5S2 EXECUTIVE PERFORMANCE MODEL

WEB 3.0 AND THE METAVERSE: HYPE VS REALITY ANDWHAT IT MEANS FOR YOU Michael Wade

YOUR PATHWAY TO THE C-SUITE: ALL THE RIGHT STEPS Ric Roi

LEADING THE DYNAMICS: HOW TO “READ THE ROOM” AND SHAPE THE DYNAMICS OF TEAMS AND ORGANIZATIONS Ben Bryant A BETTER INDIVIDUAL AND A BETTER LEADER ABSA Group

COMPETITIVENESS OF NATIONS: WHAT DOES IT MEAN FOR YOUR ORGANIZATION? Arturo Bris

UNDERSTANDING THE WORLD OF NFTS Arturo Bris

LEADINGPEOPLE AS ACOACH: CORE LEADERSHIP SKILLS FOR YOUR FUTURE, ANDUSING INFORMAL POWERAND INFLUENCE TOCOACHAND DEVELOP PEOPLE Katharina Lange

198 Reflections

98 Execution

THE FUTURE OF GLOBAL CONFLICT David Bach

FASTEST INTRODUCTION TO AI AND ML Amit Joshi

LEADING PEOPLE THROUGH STRATEGIC TRANSFORMATIONS Katharina Lange

EMBRACING COLLABORATION AND DIVERSITY

102 APPLYING AND SCALING AI IN YOUR ORGANIZATION Amit Joshi 106 CLOSING THE KNOWING DOING GAP: HOW FUTURE READY ORGANIZATIONS TURN KNOWLEDGE INTO ACTION Howard Yu

BECOMING FUTURE READY: PREPARE YOUR ORGANIZATION FORWHAT LIES AHEAD Howard Yu THE BUSINESS CASE FOR SUSTAINABILITY: HOW TO MANAGE RISKS AND SEIZE OPPORTUNITIES Julia Binder

FUTURE OF WORK: HOW TO LEAD YOUR TEAM IN A

HYBRIDWORLD Robert Hooijberg

156 PSYCHOLOGICAL SAFETY: HOW TO LEAD YOUR TEAM TO LEARN AND PERFORM Robert Hooijberg

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242 EXECUTIVES 35NATIONALITIES 26 INDUSTRIES 15WORLD- CLASS FACULTY 5 INSPIRING& INTENSE DAYS

Fore word

“NEURONS THAT FIRE TOGETHER, WIRE TOGETHER.”

We encourage you to make time in your busy schedules in the coming weeks to revisit your OWP notes and take-aways so that you can reap the rewards of this unique development experience.

OWP22 Singapore highlights

As we like to say: neurons that fire together, wire together. The more those neurons fire together as you return to what you have learned, the stronger they wire together and the more likely they are to have a lasting, meaningful impact on your behavior and thinking. This post-event report, based on many of the leading-edge insights shared by our faculty in Singapore, seeks to provide an additional support for you in this continuous leadership development process.

IMD’s purpose is to “challenge what is, and inspire what could be”. Through that lens, we develop leaders who transform organizations and contribute to society. This has been in our DNA for decades, but it has never been more relevant to the needs of business today. Participating in OWP, we hope, has provided food for thought as you shape your own solutions to this complex challenge. But attending OWP, in itself, is only a first step. Now that you’re back in your working environment, please do not under-estimate in the weeks and months ahead the importance of continuing to reflect on everything you learned and absorbed during this OWP week. This cycle of ongoing revision will help to embed your OWP insights and bring them to life, so they can have real impact beyond the confines of the program.

Dear OWP participant, We hope you found the November 2022 edition of our Orchestrating Winning Performance (OWP) program rewarding and inspiring. It was a privilege for us and our faculty to share five memorable and thought-provoking days of learning and networking with you in Singapore. During an intense and energizing week, held for the first time at IMD’s new Executive Learning Center in Singapore, we explored how you can lead for the future and drive renewal and growth. Achieving this dual goal calls for courageous and responsible leadership, and this edition of OWP was designed to give you – and your team – the tools and insights to support you on that crucial journey.

We hope you will find it a useful companion for your post-OWP journey. With warm regards and until next time,

JEAN-FRANÇOIS MANZONI Nestlé Professor of Leadership & Organizational Development and President, IMD MISIEK PISKORSKI Professor of Digital Strategy, Analytics and Innovation and Dean of IMD Asia and Oceania

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“MY PERSPECTIVE HASCHANGED. I HAD FORGOTTENHOWREFRESHING AND INVIGORATING IT CANBE TOBE IN SUCHAHIGH-QUALITY ACADEMIC ENVIRONMENT” Vice President of Group Governance for Risk and Compliance DKSH

Key notes

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KEYNOTE

LEADING TRANSFORMATIONS WITH ARTIFICIAL INTELLIGENCE

Artificial Intelligence (AI) is affecting every aspect of our lives fromhowwe build our homes, grow our food, and get medical advice to our relationships. In her keynote speech, Ayesha Khanna, Co-founder and CEO of Addo, sets the scene about what the future will look like as AI transforms the way we live, work, and interact with others. A future that is already here.

Keynote highlights

Khanna delivered the keynote address “Leading transformations with artificial intelligence” at IMD’s Orchestrating Winning Performance program in Singapore. She took participants on a journey to showcase the potential that AI offers – and the impact AI is making as it penetrates more aspects of our lives.

AYESHA KHANNA Co-founder and CEO of Addo

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KEYNOTE

“IF YOU ARE NOT COMMITTED TO SUSTAINABILITY AND YOU ARE NOT USING INFRASTRUCTURE IN A SMARTWAY, YOUARE GOING TO LOSE BOTHAS ACOUNTRY AND AS A COMPANY – AND YOURCUSTOMERSWILL WALKAWAY.”

The “cities of the future” already exist, said Khanna. For example, there is Tengah district in Singapore and Neom in Saudi Arabia. These areas are notably greener with fewer cars, and they show that smart cities are the way of the future, where any space can be used and be multifunctional. PRECISION FARMING IN UNEXPECTED PLACES By 2050, it is expected that 10 billion people will live in cities and 80% of all food will be consumed in cities. Bringing farming closer to the city will be increasingly critical, and this is already happening in the world’s biggest urban centers. Farming in the city significantly reduces supply chain transport costs. “You can find sustainable urban farming in unexpected places. For example, in London, farming is taking place in an old World War II refugee tunnel.” The tunnel, 33 meters below London’s Clapham High Street, is an urban farm, and an example of the brilliance of precision farming.

FUTURE CITIES MADE OF NATURAL MATERIALS AND INNOVATIVE SPACES “When we think of future cities, we think of Wakanda, where there are amazing buildings and it is very science fiction and made from all these interesting materials, but actually the future city doesn’t look very exciting. It is more important that future cities are sustainable,” Khanna explained. “In Japan, work is already underway to construct a 70-storey building made out of 90% wood. This is the reality, because futuristic thinking and climate-friendly thinking are needed when developing the cities of the future to ensure sustainability. Cities of the future will move away from concrete heavy buildings; more and more buildings will be built of sustainable materials like treated wood.” Increasingly, living spaces will become more fluid and multi-purpose, she argued. “Buildings will no longer be dumb cement only. They are going to be alive, laced with AI that is going to constantly change and be multifunctional and dynamic.”

“The farm is already 12 times more productive than a regular farm,” Khanna explained. “It uses AI and a network of onsite cameras to ensure optimum growing conditions, resulting in bumper harvests. By precisely controlling the environment, 70% less water is used and the farming is pesticide free.” COLLEAGUES AND FRIENDS OF THE FUTURE “Our colleagues will be AI, and it’s going to change the way we work,” said Khanna. “If you don’t have an AI colleague, you are going to be in trouble.” Khanna, whose company Addo builds AI assistants for telecommunications companies, logistics companies, governments, and healthcare companies, also shared the story of how three entrepreneurs used AI to shake up the Chilean mayonnaise market (the third largest market for mayonnaise in the world). Khanna explained how the startup NotCo’s founders set about making a plant-based mayonnaise.

“They hired Giuseppe, the AI chef, and became a best-selling mayonnaise supplier in Chili.” Giuseppe is an algorithm that has a database of more than 400,000 plants. He analyzes the animal-based product at a structural level and then gives a variety of formulas that could be replicated in the laboratory and at speed. “This could not have happened without Giuseppe because no human laboratory technician or chef could go through that many recipes at such high speed, Khanna explained. “Not only is it more efficient, it only gets more efficient with time. The ability of the company to use AI to develop a range of products attracted the attention of Kraft Heinz who partnered with NotCo because of their patented AI technology.” She says that thinking about how to use AI to accelerate and enrich your products and services is critical. “AI is there to amplify human potential.”

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By speeding up processes, AI allows humans to be more creative, thoughtful, and strategic and leaves the less interesting and time-consuming tasks to AI. Giuseppe is not the only AI colleague making an impact. AI companions are also filling the gap for people who are lonely and who just want a friend. Replika is a personal chatbot powered by AI which offers companionship for people seeking a friend ‘with no judgement, drama or social anxiety.’ Eight million people in the US have downloaded it and millions elsewhere, said Khanna. “Young people are talking to Replika a lot.” INTERACTING IN A PHYSICAL AND VIRTUAL WORLD “Don’t focus on the technology, focus on the human behavior,” said Khanna.

To understand the relevance of the metaverse, consider that there are 3.21 billion gamers in the world who are interacting online and in a virtual world every day. “A metaverse is any place where people get together in another altered reality,” she explained. “Half the world’s population go in and out of digital and physical spaces comfortably, trading in game coins, buying skins, candy, farmlands using non government issued currency. “Don’t think about the technology, think about the underlying tsunami of people that are spending more time in metaverse-like behaviors … Already in places like Korea, government officials such as local mayors are engaging with citizens in the metaverse, as it is a country where people are very comfortable with operating in that sphere.”

company in a well-regulated industry, then it should be fine. If not, citizens need to say stop.” She cited the example of a Canadian city which put a stop to the development of a smart city when citizens discovered that the data would be stored across the border. “Privacy, sustainability, and ethics will make everything that I say possible, and more innovation will come out of it,” concluded Khanna. “If that doesn’t happen, then companies will suffer from loss of trust. You have no choice but to use AI because your competitor will otherwise leave you in the dust. That is the exciting and scary future.”

WITH GREAT POWER COMES GREAT RESPONSIBILITY

Wrapping up the session, Khanna reminded participants that while AI offers tremendous opportunity, there is a “dark side”. She explained that currently 1% of global electricity is used to power data centers. This will only increase as we produce and consume more data every day as over 50 billion connected drives are coming online. “Ensuring that these data centers are as sustainable as possible is critical,” she warned. “Already innovation is coming out that will address this concern.” It is also important, said Khanna, to always ask the question: “Where is all the data going?” “The problem is not the AI, it is who owns the AI and what are they doing with it? If it is a good

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“THIS IS THE SECOND TIME I HAVE ATTENDEDOWP; I CHOSE OWP BECAUSE THE PROGRAM IS FOCUSED ONDEVELOPINGWINNING PERFORMANCEMINDSETS. IWAS IMPRESSEDBY BOTH THE DIVERSIFIED TOPICS AND THE DIVERSE COMMUNITYHERE.”

MABEL LU Group Vice President, Digital Ecosystem & Transformation, Danone, Hong Kong

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KEYNOTE

CONDUCTING LEADERSHIP

To lead an organization successfully, you cannot just rely on data – you need an emotional connection with your teamand with what you are doing, says world-renowned conductor Jason Lai.

Keynote highlights

During his keynote address on “Leading self and others as an orchestra conductor” at IMD’s Orchestrating Winning Performance program in Singapore, Lai gave participants the experience of leading from another angle. He did this by allowing them the opportunity to conduct a 16-piece orchestra on stage. His objective was to give them the sense of what it takes to get the orchestra to work with you to achieve a common goal. He used this experience to highlight to participants the importance of moving beyond their cognitive center when leading a team or organization. Instead, he encouraged them to concentrate on other aspects of themselves, their emotions, and their body language to get the best out of their team and, in doing so, drive performance and results.

Lai, who is the Principal Conductor at the Yong Siew Toh Conservatory, has conducted orchestras globally, including the BBC Philharmonic, Singapore Symphony Orchestra, London Symphony Orchestra, and New Japan Philharmonic. As a conductor, Lai admits to having had a steep learning curve, “having had fantastic performances and feeling like leaping off the stage in the end to at other times feeling that performances could have gone much better, which made me feel very down.” This led him to think long and hard about what separated the success from the failure and to his work as an executive coach where he applies the learnings from 25 years in conducting to help executives become better leaders. This coaching involves making them aware of all parts of themselves to get the best out of the people around them.

JASON LAI Principal Conductor at the Yong Siew Toh Conservatory

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KEYNOTE

“WHEN YOU ARE STUCK IN YOUR COGNITIVE CENTER, YOU DON’T REALIZE YOU HAVE YOUR BODY. YOU HAVE TO TAP INTO THIS. I HAVE TO FEEL THAT SENSE OF BEETHOVENWHEN I AM UP THERE, I NEED TO UNDERSTAND THE EMOTIONS OF THE SCORE AND USE MY BODY TO TRANSLATE THAT WHEN I AM CONDUCTING. WHENWE TAP INTO OUR EMOTIONS AND INTO OUR BODIES, WE HAVE THE POSSIBILITY OF RELATIONSHIPS.”

“But when you are leading teams in business and corporations, you need a sense of connection with your team. How do you connect? You cannot just rely on data, that is not going to work all the time. You need an emotional connection with your team or with what you are doing – your project.” He also points to the importance of connecting with your body, and of being aware of how what you do and how you move impacts others.

TAPPING INTO OUR EMOTIONAL AND COGNITIVE CENTERS “We have a cognitive center, but unfortunately we spend too much time up here. We are data driven, in fact, we are obsessed with it. We live in a society that rewards data, that rewards aiming for breaking records, earning as much profit as possible,” said Lai. Lai points out that many people forget about what other tools we have at our disposal to lead successfully. “Some of us don’t tend to realize that we have real estate below our neck; we ignore the emotional body because, in business, emotion is bad.”

“As a conductor, I know that the real power comes from the orchestra, they make all the sound. So I have to keep my orchestra happy, keen, ready to work, and energized to keep my audience happy. If I don’t, the orchestra will not give a high-quality performance and the audience will simply not come back. This is why it is so important for me to understand them and to have a relationship with them,” said Lai.

A HAPPY CUSTOMER DEPENDS UPON AN ENGAGED TEAM Comparing a CEO’s relationship with his or her team and consumers to that of a conductor with his or her orchestra and audience, Lai emphasized why connecting with your team is so important in driving results.

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Lai explains that the relationship is determined by how the conductor interacts with the orchestra, how engaged he or she is, and how the conductor looks at them, responds to them, and relates to them. To demonstrate this in action, he invited participants to conduct an orchestra in situ, offering real-time feedback. He urged them to look at what was going on from an emotional and cognitive perspective and within their bodies during the experience, pointing out the importance of asking these same questions in a work environment. For Lai, what his years as a conductor have made clear is that to give the audience what they need, it is important to have a deep understanding of self to build a relationship with the orchestra.

Without this, he is unable to clearly communicate and connect with the audience. The same goes for a CEO needing to build a deep relationship with his team to adequately respond to the needs of the consumer. “It is important as leaders that you don’t try to hide,” said Lai. “I know there is a lot of talk about being vulnerable, but it is important. If we are trying to be less transparent, difficulties can arise. I hope you have seen today some of the leadership qualities that are required to be a conductor – and have noted the importance of having that sense of your cognitive center, your emotional center, and your body center, and the role they must all play to lead successfully.”

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“WHAT I LOVE ABOUT OWP IS THE FLEXIBILITY TO CHOOSE WHAT YOU ARE MOST INTERESTED IN AND THE DIVERSITY OF PARTICIPANTS. I LEARN FROM TALKING TO THE PEOPLE THAT YOU MEET ALMOST AS MUCH AS THE PROFESSORS. I WANT TO MEET EVEN MORE PEOPLE, LEARN MORE STUFF, I WANT TO HEAR ABOUT THE CHALLENGES OTHERS FACE, AND WHAT DRIVES THEM ANDWHAT THEIR PASSIONS ARE, BECAUSE WHEN YOU HAVE SUCH A GROUP OF DIVERSE PEOPLE IT IS FERTILE GROUND FOR NEW IDEAS.”

AYE WEE YAP Head of L&OD, OCBC Bank, Singapore

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KEYNOTE

LEADING SUSTAINABLE TRANSFORMATION AT SHELL

Setting Shell on a path to sustainable transformation in Singapore has required a cultural transformation, says Aw Kah Peng, Chairman of Shell Companies in Singapore. For Kah Peng this has involved fostering collaborative leadership, building trust with both partners and customers, and embracing a learner’s mindset.

Keynote highlights

Kah Peng, who has been driving Shell’s energy transition in Singapore since January 2019, outlined the company’s global energy transition strategy in a fireside chat with Misiek Piskorski, Professor of Digital Strategy, Analytics and Innovation, and Dean of IMD China. She also shared her insights with participants on what it takes to make this level of change possible.

AWKAH PENG Chairman, Shell Companies Singapore

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KEYNOTE

“WE HAVE GROWN ALONG WITH THE COUNTRY; WE HAVE BEEN PART OF SINGAPORE’S ECONOMIC DEVELOPMENT FOR MORE THAN 130 YEARS AND EMPLOY AROUND 3,000 PEOPLE. FOR US TO GO THROUGH CHANGE IS MASSIVE BECAUSE WE NOT ONLY HAVE TO RETHINK HOWWE ARE SET UP, WE HAVE TO FINDWAYS TO TRANSFORM A LARGE PART OF THE ENERGY ECOSYSTEM WE ARE PART OF.”

part of to ensure that we hear and address their concerns as we transition to a cleaner future. The fourth pillar is achieving net-zero emissions, which is, as far as I am concerned, our most important priority,” explained Kah Peng. Getting to net zero involves new business models and areas of operation. This has seen Shell cut its crude capacity in Singapore by half in 2021. Instead, it will look to build low-carbon businesses of significant scale over the next decade, with a focus on increasingly offering low carbon circular, and bio products and solutions, such as biofuels, charging for electric vehicles, and renewable power.

SHELL’S POWERING PROGRESS STRATEGY Launched in February 2021, Shell’s “Powering Progress” strategy sets out how Shell will accelerate the transition of its business to net-zero emissions to meet the challenge of climate change. This strategy is aligned with the more ambitious goal of the Paris Agreement – to limit the increase in the average global temperature to 1.5 degrees Celsius above pre industrial levels. “Shell’s energy transition strategy is focused on four pillars. The first pillar is generating shareholder value; this is what we do to continue to deliver on the shareholder returns we have promised. The second part of it is what we call respecting nature, which involves how we are considering our impact on the environment. Our third pillar is powering lives; how we contribute to the communities we are

Shell’s net-zero target includes not only the Scope 1 emissions, which are directly from its operations, and Scope 2, from the energy purchased to run its operations, but also the emissions from the use of energy products it sells (Scope 3). “The vast majority of our emissions (over 80%) comes from Scope 3 – the emissions that come from our customers when they use our products,” said Kah Peng.

Therefore, to meet its emissions targets, Shell needs to work with its customers to reduce their emissions too. This involves changing from a product focus to a sector focus as it looks to accelerate the transition of the entire energy system.

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“We need our partners and customers to trust that we have their best interests at heart when we say that we want to help them decarbonize. We have to work with governments that are also learning and trying to roll out policies so that we can all work on this together. What is clear is that we can’t do it by ourselves,” explained Kah Peng. Another important element of enabling sustainable transformation has been embracing a learner’s mindset,” she added. “To enable a transformation, we need a culture where everyone is open to learning and to making mistakes, right up to the CEO level. You can’t ask people to take risks if they are going to be slapped on the wrist for doing so.”

A CULTURAL TRANSFORMATION “I can’t emphasize enough the cultural transformation that we have to put our own organization through to drive a transition of this scale, breadth, and depth,” said Kah Peng. This involves seeking out leaders who are both collaborative and integrative as the company seeks to work more closely with its customers than ever before in meeting and defining their energy needs. It’s also about building trust with all stakeholders.

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“I FOUND THIS PROGRAMTOBE EXPLOSIVE, RELEVANT, ANDREVEALING.”

STEPHAN SIBILANT Commercial Banking Relationship Manager, Absa Bank, Mauritius

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KEYNOTE

THE FUTURE OF THE WORLD ECONOMY: THE PRICE OF OUR VALUES

What does the future of the world economy look like? In his keynote address, Arturo Bris, Professor of Finance and Director of the IMDWorld Competitiveness Center (WCC), unpacked the three key trends that have emerged globally: technology, sustainability, and a new geopolitical landscape – and the trade-offs that policymakers have to grapple with to achieve equitable economic growth.

Keynote highlights

Bris delivered the keynote address “The Future of the World Economy – the price of our values” at IMD’s Orchestrating Winning Performance program in Singapore. He spoke of the biggest challenges facing the post pandemic global economy as countries look to reignite economic growth. The solution to the challenges we face, he believes, will require international coordination.

ARTURO BRIS Professor of Finance and Director of the IMD World Competitiveness Center

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KEYNOTE

“THIS DILEMMA REQUIRES US TO PRICE SUSTAINABILITY IN TERMS OF TECHNOLOGICAL ADVANCEMENT AND THE REVERSE. WE CANNOT DO EVERYTHING TOGETHER.”

INFLATIONARY PRESSURES AT PLAY The global macro environment is characterized by a new wave of inflationary pressures. For the first time in decades there is a combination of two different phenomena: demand pressures and supply pressures. Demand pressures, driven by monetary policies during the pandemic, has resulted in consumers in some countries spending at rates not seen in recent years as economies have opened up. In parallel, the war in Ukraine has negatively impacted supply chains and access to energy. The two types of inflationary pressures require different governmental policies, but these have very different macro-economic impacts. It is not possible to know which of the two inflationary types will dominate and this is causing further market uncertainty. “Different countries in the world are impacted in different ways,” said Bris. “This is important to take into account because inflation becomes a global phenomenon, and it triggers different responses in different countries.” Central banks are intervening and using tools of monetary policy to curtail inflation; however, he explained that this may trigger a further recession and inflation may be here for the long-term.

A NEWGEOPOLITICAL LANDSCAPE “Global inflation and the war in Ukraine are triggering a reorganization of world geopolitics,” Bris said. Goldman Sachs has called this “neobalization”, which is a new type of globalization in which two different blocks are emerging which have both social and economic implications. One of the economic implications is that countries are looking for closer markets. The economic problems are triggering a new set of international relations, which will have profound implications. “Neobalization is going to make economic growth harder,” said Bris. “There will be new economic blocks and more protectionism. The challenges for economic growth for countries depending on the external sector are going to be much harder. We are not going to be better off in the coming years, levels of prosperity will not improve.” Bris explained that geopolitical turmoil negatively impacts sustainability. “When European countries did not have access to energy as a result of geopolitical problems, we saw sustainability sacrificed from one day to the other.”

should be sustainable in our companies and our countries, and when it comes to technological advancement, it is a key differentiator for the future, both at a corporate and a country level. But there are trade-offs and difficult choices that will have to be made.

AN UNCERTAINWORLDWITH CONFLICTING MACRO TRENDS “We live in a very uncertain world, and uncertainty now is much bigger than ever,” Bris said, setting the scene for his thought-providing 45-minute keynote discussion. He explained that there are three key trends at play globally when considering how to ignite economic growth: technology, sustainability, and a new type of global realignment. “We know certain things, but the things we know are not compatible with each other,” He said. Bris said that the importance of each of the three trends, when taken in isolation, is obvious. For example, there is no question that we

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“The digital divide is very problematic across many levels,” said Bris. Technology creates massive income disparities across countries. The United Nations has identified that 35% of the world’s population does not have access to the internet and, for many, internet access is unaffordable. The divide also impacts gender inclusion with a marked divide being seen in many countries in access to technology by gender, further exacerbating inequality.

Yet, while the digital divide is problematic, to make the world more sustainable requires investing in more technology, especially when combatting climate change. “Data shows that investment in technology, such as green or blue hydrogen, is necessary to provide those emerging markets, that are producing significant carbon emissions, the ability to transform their sources of energy,” said Bris. THE WAY FORWARD Bris said that he believes that individual actions cannot resolve any of these dilemmas. Instead, the world needs some type of international coordination or central authority to address bigger issues. “If you leave individuals to make these decisions, you will land up with a suboptimal social result.”

Bris said that policymakers have a very problematic set of choices. “You can’t do everything [focus on technology, sustainability, and economic growth] at the same time. If you make the country more digital, you exacerbate digital inequalities and you may lose the next election. If you focus on sustainability, it can come at the expense of economic growth and then you are going to lose the next election anyway. And if you don’t focus on either of these, then you are not doing the right thing. So, you are left with a compromise that you need to settle, and here political leadership is exceptionally important.”

TECHNOLOGY, SUSTAINABILITY, AND ECONOMIC GROWTH AT CONFLICT “If we look at technology, sustainability and challenges to growth, they are at odds with each other in many different ways,” Bris said. “With technology you create value for a few, you produce more with fewer people, but those left out of the market become poorer.” “We cannot have digital nations that remain at the same time sustainable,” said Bris, as he argued that it is not possible, at a country level, to excel at technology and sustainability. Why is this the case? Digital transformation is creating massive inequalities within countries. For example, consider that for one successful wealthy tech entrepreneur in Silicon Valley there are at least ten peopleworking in basic income jobs.

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“OWP IS A FANTASTIC TRAININGPROGRAM. IT IS DIFFERENT TOOTHERCOURSES DUE TO THE DIVERSITYOF THE PARTICIPANTS, THEMULTIPLE TOPICSCOVERED, AND THE CONTINUOUS DIALOGUE. I LEARNT A LOT ANDBELIEVE THAT ITWILL HELPME IN MYROLE.”

MOHAMMED AL-FARES Operations Manager, Saudi Kayan Petrochemical Company

→The5s2ExecutivePerformanceModel

The OWP Singapore sessions were structured around the 5s2 executive performance model. The model, based on extensive IMD research, shows that, to be successful, senior leaders need to master five areas: strategy, execution, stakeholders, people and self. In each of these areas, leaders must master two opposing classes of behaviors, as detailed below, which we often refer to as ambidexterity.

OWP participants who took the 5s2 assessment before attending the program were able to identify areas of strength and development opportunities. They then worked with coaches to identify the best selection of OWP sessions to develop their leadership skills.

LEADINGSTRATEGY LEADING EXECUTION LEADINGSTAKEHOLDERS

Ambidextrous leaders frequently undertake adjustments to take advantage of short-term opportunities within the current strategy while devising long-term transformational plans which may render the current strategy obsolete. Ambidextrous leaders devise precise plans and contingency plans to achieve quarter by-quarter performance while frequently experimenting, and failing, to discover better ways of executing on strategy. Ambidextrous leaders are adept at using formal power to ensure alignment with stakeholders at the same time as building social networks to exercise informal power to accelerate the process of transformation. Ambidextrous leaders frequently direct others to achieve extraordinary performance, while being aware of when to step back, coach, and ask questions to enable others to develop their own execution plans. Ambidextrous leaders know how to maintain calm and confidence in the face of adversity at the same time as dealing with anxiety that they are not working hard or fast enough to achieve their and their organization’s goals.

LEADINGPEOPLE

LEADINGSELF

Strat egy

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UPDATE COMPETITIVENESS OF NATIONS: WHAT DOES IT MEAN FOR YOUR ORGANIZATION?

Knowing what’s going on in the world by incorporating a global view of external events and current affairs is key to better leading your company.

Two key events in the recent corporate history – the COVID-19 pandemic and Russia’s invasion of Ukraine – are external, global, geopolitical phenomena. A company’s fate is dictated today by such events, and in particular by the success of the countries in which it operates. Events and forces like these can spark a change and can shape your business. All business leaders need to understand how and why.

know that business and broader macroeconomics are intimately linked; for that reason, a country’s national competitiveness can make or break companies.

SHAPING DECISIONS There is no question that we are entering an uncertain and divided decade, and there are many factors – from globalization, anti globalization, COVID-19, climate change, and technology – that have all had an impact. Doing business in any country is influenced by its social and political structure and stability. We

ARTURO BRIS Professor of Finance and Director of the IMD World Competitiveness Center

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ACTION POINTS 1

A BALANCING ACT Be able and willing to balance your moral dilemmas.

IT’S TIME TO MAKE CHOICES Understand that sustainability, digital transformation, and economic growth are not all possible at the same time. Prepare yourself for a future where societies will have to make choices.

Ensuring that your company is prepared for all outcomes requires a continuous assessment of how social, political, and economic crises could impact your strategic objectives, both regionally and globally.

BUSINESS-READY ENVIRONMENTS

POWER TO SHAPE DECISIONS For any company, the efficiency of a country’s national economic strategy is a key element to factor into your business strategy and it is crucial to understand that one size does not necessarily fit all. A different approach might be required when working in an economic giant, for instance, as opposed to an emerging economy.

So, which countries are best positioned to navigate the future? How do we measure a country’s success? Is GDP the right metric? By analyzing the IMD World Competitiveness Rankings, it’s important to understand and explain why it is more likely for a company in the US to succeed, relative to an identical business in Argentina or Indonesia.

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THE FUTURE OF GLOBAL CONFLICT

Focusing on the present and future of global conflict – and why business is increasingly stuck in the middle.

A news headline: The West ejects Russian banks from global financial systems and Moscow turns off the flow of natural gas to Europe. In the cycles of history, there seems to be another shift taking place in the established order of things. We are entering an era of power rivalry with geopolitical jostling involving not only major powers asserting themselves, but smaller actors too.

Business leaders today need to be in touch and in tune; they need to understand why and how the interconnectedness of economies and societies (that was meant to foster peace and prosperity) is now being increasingly used as a powerful tool as global conflicts intensify. This has far-reaching implications for businesses that create, operate, or leverage these networks.

UNITY OR FRAGMENTATION? Traditional views of

international relations hold that a more interdependent and more interconnected world is also a more peaceful world, since the cost of conflict is simply too high. An alternative view holds that interdependence can be ‘weaponized’ by powerful actors.

DAVID BACH Professor of Strategy and Political Economy, Dean of Innovation and Programs

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ACTION POINTS 1

NAVIGATING THE MODERNWORLD Great power conflict is back.

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OPPOSING FORCES A sorting of countries into rival camps is already underway. However, it will likely be less far reaching than during the Cold War. SHAPING OUR FUTURE Businesses will have to balance global supply chains and global operations with increasingly fractious politics.

For this reason, you should scrutinize the networks on which your company critically depends, identify the key network hubs that could serve as chokepoints or panopticons, and carefully monitor how key governments might be affecting your operations. Understanding current affairs can shape your company’s present and future.

SAFETY FIRST Leaders must appreciate that governments will increasingly prioritize national security when it comes to regulating business activities, especially with cross-border activities – even if it means a marginal loss of economic efficiency.