NETWORK LONDON / NEW YORK LEADERSHIP ISSUE
Chevron’s Strong Corporate Culture Edelman’s Trust Barometer Limitless Leaders – Virgin Atlantic N OV E M B E R 2 017
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Contents A Fundamental Shift Old Model: For the People Elites manage institutions to do things ‘for’ the people
Current Tension
Influence & Authority
New Model: With the People
Influence & Authority
Influence & Authority
Influence has shifted to the people; people using influence to reject established authority
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Corporate Culture
22
World Class International Theatre
2 3 5
Welcome from our Global Executive in Charge New IAB and Board Members Meet The New Members 60 Seconds with Oliver Griffiths
Cover Stories 6 Innovation from the UK North Sea 10 The Year of the Peer 12 Being True Limitless Leaders
Features 14 How do we Prepare the Leaders of Tomorrow, Today?
Trust Barometer
10
Limitless Leaders
12
Transatlantic Business Awards Dinner Huge Success
27
Upcoming Events
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15 Here Come the Everyday Leaders 16 Balancing Corporate Leadership and Corporate Responsibility in an Increasingly Political World 18 Developing Future Global Leaders 19 Leading Legal Through Times of Change 20 Managing the Triple Overload Challenge 22 The National Theatre: From London’s South Bank to Broadway 24 International Touring Article
London Staff
BritishAmerican Business
Wendy Mendenhall Global Exec. In Charge wmendenhall@babinc.org Emanuel Adam Director of Policy and Trade eadam@babinc.org John Adam Office Manager, Accountant jadam@babinc.org Theo Bachrach Public Affairs and Policy Manager tbachrach@babinc.org Rita Davids Esat Membership Assistant rdavids@babinc.org Anna Doherty Events and Marketing Manager adoherty@babinc.org
New York 52 Vanderbilt Avenue, 20th Floor New York, NY 10017 Tel: +1 (212) 661 4060 nyinfo@babinc.org Editor Tim Horan Assistant Editor Rachel Spadaro
www.babinc.org
Insight 25 Tackling the cyber challenge Immigration insecurities vis-à-vis Brexit?
Policy
26 Leadership in 2017/2018: Must Business Lead Now?
Events
Culture
Office Address London 12 Phillimore Walk West Wing, 2nd Floor London W8 7RX Tel: +44 (0)20 7290 9888 ukinfo@babinc.org
Institutions working with the people; institutional silos dissolved
27 New York Event Highlights 28 London Event Highlights 29 Events Calendar: London
Sherry Dolatshahi Executive Assistant sdolatshahi@babinc.org
Silvia Rizzo Trade and Investment Manager srizzo@babinc.org
Jillian Gable Events and Marketing Manager jgable@babinc.org
Lindsay Walker Member Relations Manager lwalker@babinc.org
Tim Horan Communications Manager thoran@babinc.org
Get Social
Jon Kudlick Director of Membership and Communications jkudlick@babinc.org
@BABLondon
Alice Mount Director of Events and Marketing amount@babinc.org
“BritishAmerican Business”
bab_london
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Global Executive in Charge I BritishAmerican Business
Welcome
Wendy Mendenhall I wmendenhall@babinc.org
Defining leadership is never an easy task, particularly at a time when those who purport to be leaders – whether in commerce, politics, the law, or entertainment – fall short of the mark with examples of abuse that shake the confidence of the very people they lead. Throughout my tenure at BritishAmerican Business, I have long believed that leadership is only as successful as the people we lead, whether in the work and goals we achieve for our members or examples they have shared with us through the Innovation Conference, our CEO Roundtables, and our Leadership Forums. Two examples quickly come to mind: our hugely successful Transatlantic Business Awards Dinner in New York and the Annual Women’s Network Conference in London, the culmination of BAB’s innovative and topical year-long programme of events. Each of our Transatlantic Business Award Honourees (Ann Sarnoff, BBC Worldwide, John Pettigrew, National Grid, Steve Denning, General Atlantic, and Rich Daly, Broadridge Financial Solutions) spoke of the importance of learning that takes place between leaders and employees, the trust they place in their staff to push forward on innovation, identifying new business opportunities, and taking risks that ultimately play into rewards for their respective companies. At our Women’s Network Conference, our guests including Linda JoJo, VP United Airlines, Amanda Borthwick, Executive
Account Partner, IBM and Baroness Ruby McGregor Smith among others, shared their thoughts and strategies on the workforce of tomorrow and the challenges in leadership that will fall to many CEOs as we continue to strengthen global business opportunities. In this issue of NETWORK, we continue the conversation by exploring different ideas of leadership emanating from some of our members including Todd Levy, President Chevron Europe, Eurasia and the Middle East, Exploration and Production, who looks at the strong corporate culture at Chevron and how that drives their work in the North Sea. And Emma Jones, Vice President of UK Sales at Virgin Atlantic shares her ten tips for being a truly ‘limitless leader,’ while Ben Roback, Account Manager at Cicero Group, explores ideas around balancing corporate leadership and corporate responsibility. I encourage you to explore their ideas and I urge you to review the list of events BAB hosts each year, from our CEO Roundtables to our black-tie events, all of which provide you with great opportunities to meet and network with your peers and establish significant business connections. And, on behalf of BAB’s Board of Directors, our International Advisory Board, and our staff, I wish you and your employees the happiest of holidays and a festive New Year and I look forward to working with you and your companies in 2018.
New Board and IAB Members BritishAmerican Business (BAB) is governed by a transatlantic Board of Directors, led by our Chairman Christopher Perry, President Global Sales, Marketing & Client Solutions, Broadridge Financial Solutions. The Board’s active support and commitment to BAB and its objectives are important to ensuring our continued success as an organisation. We also enjoy strong support from our International Advisory Board, consisting of Chairmen and CEOs from more than 100 major multinational companies. We are delighted to announce that the following new members have recently joined our Board of Directors.
NEW BOARD MEMBERS Hélène Alunni-Botteri Senior Vice President, Cross Border Strategy & Governance, Wells Fargo & Company 2
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Corneel Koster Senior Vice President, Europe, Middle East, Africa & India, Delta Air Lines
Maria Sebastian Senior Vice President, Brand EMEA, Starbucks Coffee Company www.babinc.org
New Members
www.10eighty.co.uk 10Eighty are experts in increasing employee engagement. We use a strengths-based philosophy to increase career resilience and enhance career success. 10Eighty delivers a range of career management and leadership development interventions. Using our unique and innovative tools such as the CareerCENTRE, Strengthscope and the Leadership Cloud, we deliver one to one coaching, workshops and support for career transitions. Michael Moran, CEO and Founder michael.moran@10eighty.co.uk Warnford Court, 29 Throgmorton Street, London EC2N 2AT +44 (0)20 7947 4130
www.chg-meridian.co.uk We are experts in the areas of IT, industry, and healthcare, with a wealth of experience across these sectors. Since 1979, we have been minimising our customers’ workload, reducing their costs and risks, while maintaining full transparency – by providing customised leasing concepts. Our customers can rely on our comprehensive, unbiased advice, which covers all technical and commercial aspects. Scott Linley, Country Service Manager scott.linley@chg-meridian.com Barons Court, 22 The Avenue, Egham, Surrey TW20 9AB +44 (0)17 8447 0701
www.bynder.com More than 250,000 brand managers, marketers and creatives use Bynder’s brand portals every day to collaborate globally, produce, review and approve new marketing collateral, and circulate company content at the click of a button. Mike Kingston, UK Sales Executive mike.kingston@bynder.com 45 Leather Lane, London EC1N 7TJ +44 (0)20 7043 2555
www.eukconsulting.com EUK is a specialist consultancy of 15 years standing offering research, intelligence, planning and support on stakeholder engagement to clients who wish to inform and shape the regulation of their business by national, European Union and other trans-national entities. We aim to build mutual understanding between our clients and those who regulate and influence their business environment in a way which leads to sustainable and mutually productive outcomes. David Saer, Research Manager dsaer@eukconsulting.com 34 Smith Square, London SW1P 3HL +44 (0)20 7630 0001
www.babinc.org
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New Members
www.evernote.com Evernote is the multifunctional app that empowers you to be your most productive. From little details to big ideas, anything that matters can be captured in a note and synchronized across your devices. Powerful textand handwriting-recognition capabilities, easy-to-use annotation features, and a one-click Presentation Mode make Evernote an indispensable tool for productivity and collaboration in the modern workplace. Walchestrasse 9, CH-8006 Zurich Switzerland Beat Buhlmann, General Manager EMEA bbuhlmann@evernote.com
www.parker.com Parker Hannifin is a Fortune 250 global leader in motion and control technologies. For 100 years the company has engineered the success of its customers in a wide range of diversified industrial and aerospace markets. Graham Ellinor, Finance Director UK, Ireland and South Africa graham.ellinor@parker.com 55 Maylands Avenue, Hemel Hampstead, Herts HP2 4SJ +44 (0)1442 458116
www.jumeirah.com/jct Located on Sloane Street with the world-famous department stores of Harrods and Harvey Nichols right on its doorstep, Jumeirah Carlton Tower has been a luxury establishment in London’s Knightsbridge for over 50 years. The hotel features 216 bedrooms and suites, many offering stunning views across London; Club Room and Chinoiserie lounges; and The Peak Health Club & Spa, including 20m swimming pool, state-of-the-art gym, sauna, steam room, Jacuzzi and fitness studios. Catherine Hewitt, Director of Sales catherine.hewitt@jumeirah.com Cadogan Place, London SW1X 9PY +44 (0)20 7235 1234
www.westletondrake.com With offices in the UK and Switzerland, we are a firm of US and UK tax advisors who specialise in assisting Americans living abroad and other overseas nationals with ‘nondom’ status in the UK. We can look after your US and UK tax affairs, and those of your businesses, to ensure a coordinated approach to your tax compliance and advisory needs. We work with individuals and families living and working in the UK, Switzerland, Australia and the US. We also specialise in assisting those running entrepreneurial businesses and we are experienced in assisting US owned asset managers operating in Europe. Catherine James, HR Business Partner catherine.james@westletondrake.com 85 Gracechurch Street London EC3V 0AA +44 (0)20 3141 2754
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www.babinc.org
Feature
60 Seconds With Oliver Griffiths
Director UK-US Trade Policy, Department for International Trade (DIT)
Can you tell us about your role at the Department for International Trade? Since February I have been overseeing the UK’s trade and investment dialogue with the United States. Our team in DIT coordinates the dialogue with the US, drawing on expertise from across Government departments and our embassy in Washington to deepen our trade and investment relationship with the US. The DIT counterpart in the US is the Office of the US Trade Representative (USTR). We are in regular contact with USTR to chart the way forward.
What is a ‘typical’ day? One of the attractions of the role is that there aren’t many typical days! The sheer breadth of the trade agenda means that I spend a lot of time engaging with companies and civil society to hear what is important to them, as well as checking in with other government departments on progress being made and working with USTR to drive progress in the bilateral dialogue.
What is the Department for International Trade doing to support UK businesses? A lot! Our International Trade and Investment (ITI) directorate helps businesses make their first steps into new markets, offering businesses of all sizes tailored support. This includes hosting business delegations around the world, facilitating introductions to customers, profiling products and services and offering practical help to navigate market regulation and entry. ITI activity in the US alone has directly helped over 1,000 British companies secure export contracts worth over £3bn. www.babinc.org
We also offer export finance to ensure that no viable UK export fails for lack of finance or insurance. In 2016/17 UK Export Finance (UKEF) provided £3bn in support, helping 221 UK companies (79% of which were SMEs) sell to 63 countries around the world. Finally, there’s our GREAT campaign, which champions the breadth and quality of UK exports and the UK as a destination for businesses and investors.
Are there opportunities for UK companies in the wake of Brexit? Our exit from the European Union offers the opportunity to establish an independent trade strategy for the UK, boosting our trading relationships with old friends and new allies alike. There undoubtedly remains untapped demand for British goods and services around the world. At the moment only around 11% of UK firms export, which is why the work of DIT is focussed upon supporting a renewed culture of exporting. Our website Great.gov.uk offers specific export opportunities, published in a searchable list by sector and market exclusively for UK businesses, as well as a ‘Find a Buyer / Find a Supplier’ service – a searchable list of UK businesses allowing overseas buyers to find a preferred trade partner.
Lighthizer launched the UK-US Trade and Investment Working Group in July, with a view to meet roughly every quarter. The working group is focussed on four key areas. First, we want to prevent any cliff edge when we leave the EU by transferring existing trade agreements between the US and EU, so they are in place between the US and UK. Second, we want to strengthen the trade and investment ties between the UK and US. Third, we are laying the groundwork for a future free trade agreement. This means that when we are in a position to open negotiations, we do so with all the information and understanding we need to make progress quickly. Finally, the working group allows us to discuss common trade policy interests.
Can you tell us about your favourite experience working with the DIT? At risk of sounding corny, it is a privilege to be working on an issue that is so important to the future prosperity of the UK – the US is already the destination for almost a fifth of UK exports and we have $1 trillion invested in each other’s economies. My children also found it endlessly amusing when BBC News kept running a clip over the summer with me accompanying Liam Fox for the first working group in Washington DC.
PM Theresa May was the first foreign leader to meet with President Trump. What’s happened on UK-US relations since that meeting and what might the future hold? I am best qualified to talk on trade policy, where we have made good progress. Liam Fox, the Secretary of State for International Trade, and US Trade Representative Robert
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Cover Story
Innovation from the UK North Sea By Todd Levy President, Chevron Europe, Eurasia and Middle East Exploration and Production
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Decades working in challenging environments around the world have taught me the first principle of high performance: No organization can deliver exceptional results over a sustained period without a strong corporate culture that values its people and empowers them to reach their full potential. Without strong value systems and a willingness to respect diversity and to support inclusion, organizations can be doomed. I am fortunate to work within a company governed by a strong system of corporate values. My company Chevron has been in business since 1879. We have ridden the commodity cycle many times over our 14 decades of operation. Yet some essential ingredients are at the core of Chevron’s staying power: our values, our business conduct and, particularly, the strong relationships we have established over the decades. Values like trust, integrity, partnership and mutual respect, coupled with an operating philosophy committed to delivering high performance and placing real responsibility and accountability in the hands of our local people on the ground, have helped us earn and maintain our reputation. At Chevron, we see our diversity and our inclusive culture as competitive advantages that position us for success. These ideas are central to our corporate value system, The Chevron Way, a set of beliefs and behaviors that guide us to deliver results in the right way. By fostering trust and respecting the cultures in the places where we operate, we build the foundation to undertake complex and demanding missions to unlock value for our partners. Diversity spans much more than gender, yet there is undoubtedly much value in having females in leadership. Gender diversity helps to drive better business
outcomes from diverse perspectives and also attracts the best workforce possible. In the UK, several critical business segments within our producing operations are led by female leaders. A strong culture also strengthens companies to navigate periods of adversity. The current downturn in oil and gas prices is one such period. The collapse in prices imposed a strict capital discipline and an intense focus on portfolio management. As the industry adapted, it took a range of actions. It engaged its supply chains to collaboratively identify cost savings and efficiencies. It lowered its cost structures. It optimized project economics. It was forced to make difficult reductions in staffing, with a heavy impact being felt in Aberdeen. And it has grown increasingly selective in vetting the internal projects that advance to reach final investment decisions. Upon navigating this downturn, the successful companies are more competitive, more innovative and more capable of efficiently extracting resources. The North Sea model offers a good
microcosm of the broader trend within our industry, as companies respond to a climate of lower commodity prices. Sound policies create certainty which encourages investment, which unleashes creativity and innovation, allowing us to capture value that would have otherwise been inaccessible. Under the directive of the Oil and Gas Authority to maximize economic recovery, the UK has in place a policy framework conducive to offshore development. The UK’s oil and gas industry remains one of the nation’s largest industrial sectors. Despite the recent downturn, the industry supports 330,000 jobs and we have long been an engine of economic growth through our investments in the supply chain and wider economy. Beyond the UK, the world will continue to need the energy we provide. Well over a billion people do not have access to electricity and close to three billion people must still burn solid fuels to cook their food. As these people achieve the means to elevate their living standards, just about every advancement – from light, heat and refrigeration to mobility – involves the consumption of energy. Trillions of dollars will need to be spent to keep the world supplied with energy in the decades ahead. According to the International Energy Agency, the majority of the world’s coming energy investment will be spent on fossil fuels. Oil and gas are expected to continue to provide around 70% of the UK’s total primary energy from now until 2035. The UK’s Continental Shelf could meet almost half the UK’s expected oil and gas demand in 2020, continuing to create energy security, revenue and jobs. Clearly, the UK energy sector’s role will be vital to meeting global energy demand, but are there necessary conditions to realize our potential? Ensuring a sustainable future for the industry lies in a renewed focus on operational excellence, ingenuity and partnership. We work in an industry defined by the consequences of our activities. Our license to operate in the North Sea and elsewhere depends upon maintaining our reputation and holding the trust of our stakeholders. Our industry certainly cannot survive without safe and reliable operations. Protecting people and the environment, and with it the social and political license to operate, is in the mutual interest of both the energy industry and the government. This is also a core value in The Chevron Way. At Chevron, we are analyzing how people, processes, tools and technology come together to reach our target of zero incidents. We are making good progress. Last year was one of our best years in terms of operational excellence, including safety, here in the North Sea. Constant vigilance is critical to high performance in operational excellence and sustaining confidence in our industry. The next element is ingenuity and the application of technology. Ingenuity and new technology can help us unlock the value in difficult to develop challenging resources, like remote deep-water resources in the North Sea or just help us increase the recovery from our existing assets. And technology holds great potential to help us use energy more efficiently – lowering percapita costs and emissions from energy use.
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Cover Story When I think about the critical role of technology I am reminded of something I heard early in my career that has always stayed with me. The best place to find a new oil field is in the oil field you already have. In the North Sea, we know where much of the resource is – we just need to unlock it by increasing the recovery of existing resources from current assets and advancing technology to enable hard to reach resources. There is a huge opportunity – for every 1% increase in recovery, we get 300 million barrels. At Chevron, we are trialing new technology like polymer injection to increase the recovery factor from our mature Captain field. Further south, in the central North Sea, the development of Chevron’s high-pressure, high-temperature Alder field, which came online last November, took decades of advances in technology to make it possible. We delivered Alder safely without a single incident or injury. We were able to do it by applying advanced technology that came out of strategic partnerships with our own technology company and with the local supply chain. 70% of Alder’s spend was with UK suppliers and we also had seven technology firsts for Chevron on the project. Advances in technology, like sensors, robotics and drones are enabling more efficient and safer offshore inspection work to be carried out, eliminating potentially hazardous situations. But we also need to think differently about technology, given our operating environment. We cannot invest in every technology. We must focus on the efficient application and adoption of technologies that bring the highest value to our assets. And we need to be mindful that technology does not have to be big mega projects or shiny hardware. Technological innovation also means managing data more effectively to enable smarter decisions. For example, our Integrated Operations Centre is improving the efficiency of our UK operated assets. The Centre saved us close to $50 million in its first two years of operation and has helped raise our production efficiency rates to some of the highest in the UK Continental Shelf (UKCS). It is not simply the software that is making the difference – it is the ability to bring together the right people with the right data to make the right decisions at the right time. Doing so builds effective working partnerships both offshore and onshore. We need to build partnerships that match the challenges before us in the North Sea, such as maximizing the economic recovery of the billions of barrels still left in the UKCS much of which remains technically challenged. 8
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We also need strong partnerships to develop a world class offshore decommissioning sector. Based on the industry leading skills and innovation that exist in the UK, we can build on a solid foundation. In the coming decades, the 470 offshore installations in the North Sea’s UK Continental Shelf will need to be decommissioned. Based on current estimates that task will require an expenditure of around £35 billion. But those cost estimates will come down as we work together to improve efficiencies and technologies. Established 16 years ago, Chevron’s Environmental Management Company (EMC) leads Chevron’s global remediation, reclamation and asset retirement work. EMC supports the company’s global businesses in more than 35 countries around the world in decommissioning onshore and offshore assets as an essential part of Chevron’s long-term stewardship of its assets. As an example, we have for years followed this approach in the US Gulf of Mexico. There we worked collaboratively with the supply chain to solve technical challenges, we supported meaningful R&D at a commercial scale to lower costs and we built strong partnerships to meet the expectations of our stakeholders in the local community, regulatory agencies and elected representatives. But the greatest challenge to the industry in the North Sea remains the safe, efficient and economical capture of the remaining hydrocarbons. The key to this is engineering our hardware, our business practices and our partnerships toward being open to new ideas and changing the way we work. New approaches to risk sharing can help. We can also achieve greater economies of scale through standardization. It is the nature of our business to involve multiple stakeholders – from national governments, universities, local communities, NGO’s, industry groups, startup technology companies and private-sector partners in all our projects. To realize our full potential in the North Sea, collaboration on a grand scale is in order. The UK oil and gas sector, with the commitment of OGA, has the wisdom and practical knowledge to make this work by forging effective and mutually beneficial partnerships and embracing a commitment to collaboration. The UK government has the ability to drive increased new investment in exploration and new capital projects by continuing to evaluate fiscal terms for this much-needed new investment. Chevron’s purpose is to provide safe, reliable and affordable energy responsibly, while supporting the local communities where we work and the global economy. We take our responsibilities seriously. We expect our employees to act with integrity and to help create an inclusive working environment, whilst also respecting local communities and the environment. www.babinc.org
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Cover Story
The Year of the Peer: By Michael Stewart Global Vice Chairman, Edelman
The Dispersion of Authority from Traditional Leadership to “Someone Like Me” A Fundamental Shift Old Model: For the People Elites manage institutions to do things ‘for’ the people
Influence & Authority
Current Tension
New Model: With the People
Influence & Authority
Influence & Authority
Influence has shifted to the people; people using influence to reject established authority
One thing is clear amid the many troubling headlines this year: 2017 has seen complete crisis of confidence in leadership. From data breaches to sexual harassment scandals to false claims from those in the highest leadership positions (more than 1,300 false claims and counting from President Trump according to the Washington Post), the news cycle has become a virtual referendum on leadership itself. This has left the public in search of both credible information, and inspiration. At the heart of this crisis is an understandable breakdown in the public’s trust in institutions (and the people who run them) simply to do what is right. We saw this earlier this year in our annual Edelman Trust Barometer, and if current trends continue, suspect a similar sense of distrust may reign when our next study is released in early January. A global study that has spanned 17 years, the Trust Barometer looks at public trust across four key institutions: government, business, media and non10
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Institutions working with the people; institutional silos dissolved
governmental organisations. This year’s study of more than 33,000 people in 28 countries was the first time we ever recorded a decline in trust across all four institutions. Two-thirds of all the countries studied are “distrusters” – meaning that on average, under 50 percent of respondents trust the four institutions to do what is right. Media in general took the biggest year-on-year trust hit and is now distrusted in a staggering 82 percent of countries surveyed. Behind this lack of trust in institutions is a complete mistrust in those who lead them. Just 37 percent of the general population say CEOs are credible – a 12-point drop over the prior year – and a paltry 29 percent say the same about government officials. This distrust has manifested itself in a shared belief among the majority of people we interviewed that the system overall is failing them. The Trust Barometer asked questions about individuals’ confidence in leaders, their hope for the future and desire for change. The summary finding was that 53 percent www.babinc.org
believe the system is failing them. In fact, in 19 countries, the sense that the system is not working has become the prevailing sentiment among the general population – including in the United States and the United Kingdom. And it is important to note that this sentiment is shared by elites: nearly half of informed public respondents – those in the top quartile of income, who have attained a college degree or higher, and who regularly follow business and public policy information – also believe the system is failing them. The media echo chamber is feeding this sense of distrust. As platforms like Facebook and Twitter have become primary vehicles for accessing news and information – and trust in mainstream media declines – people are turning to their feeds to validate their own opinions and block out differing points of view. The Trust Barometer found that people are nearly four times more likely to ignore information that supports a position they do not believe in, and 53 percent of people don’t regularly listen to people or organisations with whom they often disagree. As further proof of the fall of the public’s faith in media as an institution, more people trust search engines than human editors, and 64 percent of the general population say they find leaked information more believable than press statements. And for the first time ever, the study has shown that “a person like yourself” is an equally credible source for information about a company as a technical or academic expert, giving rise to the “year of the peer”. Navigating the new normal One beacon of hope is that business is the second-most trusted institution – just one point behind NGOs. But this may not be all good news. The survey reveals a connection between the public’s fears about the future and business’s role in worsening them. For example, 60 percent of the general population say they’re worried about losing their jobs due to foreign competitors, and 58 percent say they’re worried about immigrants who will work for less competing for their job. Half said that globalisation is taking us in the wrong direction, and 49 percent worry that technological innovations are “happening too quickly and are leading to changes that are not good for people like me.” These fears may sow the seeds of anti-business policies. For example, 82 percent of respondents say the pharmaceutical industry needs more regulation; 69 percent believe the interests of their own countries should be prioritised over those of the rest of the world. In a more positive vein, respondents have high expectations for business to take positive actions. Three out of four general population respondents agree that a company can take actions that both increase profits and improve the economic and social conditions in the community where it operates. And among those who are uncertain if the system is working, business is the most trusted institution. www.babinc.org
To maintain that trust, however, business must address the anxieties of the general population and demonstrate how it will be a partner in addressing the societal effects of disruptive forces like artificial intelligence and globalisation. Specifically, the three most important attributes for companies to build trust are treating employees well, offering high-quality products and services, and listening to customers. As the current climate continues to change at pace, there are a few imperatives leaders must consider in navigating this new normal: Be transparent and leverage your employee base. In a world where people trust “people like me”, there is no more important audience than your employees. Keep them informed and engaged, and they can be your best brand ambassadors. Ignore them or appear to hide things from them, and they can spur your worst trust nightmare. Determine where to take a stand. While expectations are clear for business to play a role in solving today’s challenges, business leaders must be judicious regarding which issues to engage in. They should focus on issues that align with their companies’ missions, values, business objectives and track records. And they must recognise that “one-offs” are not sufficient, they need to play a visible, active, ongoing role in shaping the issues they select. Communicate “with” not “to.” The era of top-down engagement with stakeholders has passed, two-way conversation is key. As online communities such as Fish Bowl, Glassdoor and Trip Advisor offer up candid commentary about a company, leaders have the opportunity to listen directly to their customers and stakeholders, act on their insights and ultimately engage them as advocates. Co-create sharable content. This more participatory model also requires a more inclusive way of creating content, where stakeholders are invited in to share their views and in some cases co-create content. Information needs to be made easy for people to share, and its tone should be human. Anything that sounds overly scripted will seem inauthentic and therefore less trustworthy. Hope for the best; prepare for the worst. In this new world order, leadership is proven – or not – at moments of crisis. Successful crisis response takes preparation. Leaders must ensure that there is a three-dimensional map that clearly plots out potential risks, outlines clear and agile decision-making processes and governance, and is underpinned by a company’s mission and values. Anything less runs the risk of further eroding trust in an already critical situation. In a world where doing the right thing seems in short supply, leadership is not a given. Rather, in a world of peer influence, the license to lead can only be earned by building trust. And trust can only be built through proactive, transparent, ongoing, two-way communication with key stakeholders built on a foundation of shared values.
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Cover Story
Being True Limitless Leaders By Emma Jones VP UK Sales, Virgin Atlantic
Believing in yourself is everything. Trusting yourself is paramount. Like the wonderful Sheryl Sandberg, CCO of Facebook, once said “Being confident and believing in your own self worth is necessary to achieving your potential.” She also asks “What would you do if you weren’t afraid?” Releasing those deep fears helps you to realise your true, full potential. If you allow fear to get in the way, you’re simply a limited human being and to be a true leader, we need to be limitless. Take the initiative Always lead the way. Don’t wait to be asked to do things. Take that next step. Take the opportunities that you feel would better you and business in some way, no matter how small or big. Show your whole self It’s important to be brave and show your whole self at work. People want to see the real you. Who you really are. They don’t want to see the ‘work’ you, the ‘corporate’ you or another face or mask. But you, as
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you are. Being your true authentic self isn’t easy. It’s about dropping anything that you feel is not really you. By doing this, you reveal your true self and it’s something that is deeply appreciated by others. Leadership belongs to leaders It sounds obvious, but many people don’t really know it. Being a true leader is about taking responsibility, taking the initiative and leading. To actually step up, take on a challenge, learn from it, grow from it and lead. True leaders lead. Never stop learning Some thought leaders over the years have said ‘Never stop thinking’. But you can think a lot and not necessarily learn much. What’s more important than just thinking – is actually learning. Never stop learning. Through learning you grow as a person and as a leader. It’s important to develop key skills like listening to teams and really hearing what they’re saying; to suspend judgement, your own internal thoughts and your opinions, to just listen.
Be courageous, determined and confident There’s a difference between being brave and courageous. Courage comes from your true self, it’s heart centric and it takes a lot to be courageous. Be determined. Determination gets you further and opens doors. Being confident is a big carrier. It can carry you through your career and your life. If you’re not confident everything can seem more difficult, more challenging, but anyone can work on their confidence. Own it Be accountable and feel empowered. The two go hand in hand. By taking responsibility and accountability, you’re empowering yourself even more. The more empowered you become, the easier it is to take on more responsibility. Quite literally, you own it. And you’re in control of it, no matter what it is. And that’s incredibly empowering. Be self aware Awareness and consciousness is important. Are you aware? Are you slowing down enough to look at yourself and the world around you to become truly conscious? We’re all human and humans have flaws – areas of weaknesses. It’s key to identify areas within yourself to change and improve. And only from doing this, you can then make real differences in your work, in business and out in the world.
remember us and recommend us because of the way we made them feel, not just because of our products or the destinations we fly to. Don’t be afraid to try. When you’re not afraid to try, you inspire others to try too. Put your people first If your own people aren’t put first, then how can they put customers first? Communication, motivating your team and inspiring success are all strong attributes of strong leadership. Richard Branson is often quoted as saying “It’s all about putting your people first and having the desire to want to change the world of business for the better.” And he’s done just that, and at Virgin Atlantic, we’re doing just that. Dream big Never stop dreaming. And then turn those dreams into reality. Focus on what you can achieve at first and then dream bigger and achieve bigger. Richard Branson did just that. He had an idea, a dream and he brought it to life. And today 33 years on, Virgin Atlantic is still flying high. And each year we fly more than 5 million people that have the potential to realise their dreams to do business and leisure across the world’s best destinations.
Be a role model Lead by example, don’t just talk the talk, but walk your talk. There’s a common saying, ‘Does the audio match the visual?’ Is someone’s behaviour mirrored by their words? Maya Angelou, American poet and activist has said “People might forget what you said or what you did, but they’ll never forget how you made them feel.” Virgin Atlantic has a strong history of leading by example and being pioneers; it’s in our DNA. It makes us who we are. Our customers
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Feature
By Bryan Nixon Head of School, TASIS The American School in England
How do we Prepare the Leaders of Tomorrow, Today? Governments, corporations and schools around the world are grappling with this question. Despite cuts to educational spending in many developed countries, schools are still held accountable to create the “leaders of the future” and to produce the skilled workforce that we will need to continue to grow and develop. Inherently linked to leadership are the concepts of innovation, empathy, cultural sensitivity, and many, many more. Leadership is already a complex mix of attributes and skills, and it will become increasingly so in the future. Facing the challenge So, in the current climate, how do schools face this challenge? It is in exactly this climate that schools can thrive. As students from my current school experience educational trips in 10 different global locations, I cannot help but think of the opportunities being provided for our students in terms of a phrase coined by the International Baccalaureate (IB) as “Internationalmindedness.” International-mindedness can be defined as the ability to interpret and analyze issues from different perspectives through the lens of intercultural understanding and a respect for others. The IB furthers this definition by providing a list of attributes known as the Learner Profile. Students who engage in a curriculum that promotes international-mindedness are: Inquirers, Knowledgeable, Thinkers, Communicators, Principled, Open-minded, Caring, Risk-Takers, Balanced and Reflective If we think about the attributes that our future leaders will require, many are contained within this Learner Profile. These attributes challenge us to think about a school curriculum beyond subject-based learning outcomes. A curriculum that prepares our leaders of the future must delve into and grapple with issues that have personal, local and global relevance and significance. If such a curriculum builds from Primary School, students will have developed an awareness of different cultural perspectives and an appreciation for the commonality and the complexity of human experience. Above and beyond Schools must purposefully continue to shape our culture to not only focus on student academic
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achievement but also to go above and beyond to provide our students with the competencies that they, as global citizens and leaders, are going to need to confidently embrace the challenges and opportunities of our world. Schools can develop international-mindedness by educating the human spirit and focusing on the importance of relationships. Poore (2005)1 stated that to educate the human spirit, administrators and teachers “should be doing more to actively teach compassion, respect and gratitude.” Many schools attempt this by offering varying degrees of service, from food collections through to visits to those who are old, infirm, or less fortunate than ourselves. Schools must now go beyond this by offering long-term reciprocal service opportunities. This means that the service is not only about serving others but also about the long-term learning that the service provider engages in. Educating the human spirit also relies on developing respect for others and on the importance of relationships within our schools. Communication between all stakeholders at our schools is at an alltime high, but we must go beyond connecting through digital devices and cell phones. Schools must not lose sight of the power that direct faceto-face communication has and the importance of developing meaningful and positive relationships between all members of our various communities. By actively promoting the ideal of enduring relationships we build a true sense of community and an open-mindedness to the beliefs, thoughts, and opinions of others. As we look to define our future through the quality of the leaders we will produce, schools must go above and beyond academic achievement. They must create vibrant and challenging learning communities that embrace differing perspectives and engage our students with real-world problems and issues throughout their learning journey. Paul Poore (2005) School Culture: The space between the bars; the silence between the notes, Journal of Research in International Education Volume 4 (3)
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Feature
Here Come the Everyday Leaders By Michael Moran CEO and Founder, 10Eighty
It’s time to bring leadership development to life. As a subject, it can be hard to talk or write about, because every organisation has its own story. It wants its leaders to behave in a certain and unique way, while the leaders themselves will understandably have their own ideas for their development. This brings a sense of complexity, yet it also heralds a new and exciting era for those who get it right. The new utopia is embodied in what we at 10Eighty call Everyday Leaders – we’ve recently launched a page about it. A true Everyday Leader understands what the organisation wants, has clear personal plans that balance the needs of the business and their own careers and, crucially, knows how to embed good leadership habits in themselves and others through what they say and do – not just for today and tomorrow, but for the rest of their working lives. Everyday Leaders are a reflection of the cult of the individual we see in society. As consumers, we are now so used to the personalisation of sales to our specific needs that perhaps we only truly appreciate it on the increasingly rare occasions when it is not on offer – choice is now the expectation, not the aspiration. Yet the personalisation of leadership development has lagged a long way behind, more talked about than practised. This is because the traditional views of leadership development have become bogged down in the premise that there is a single “right” way to lead and succeed – and that this can be applied successfully in a single intervention.
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Today’s truth is very different. Leadership develop ment can only be brought to life by understanding the unique context to which it needs to be applied, the personal development that each leader needs and wants, and the assurance that leadership learning is becoming fully embedded through daily practice. To understand the context is essential. There are perfectly good leadership models to work with, as long as the organisation can use them to state clearly what it is that it uniquely wants from its leaders. The resulting customised leadership development programmes need to match strategic needs and be delivered in a style that fits the culture. Then the successful delivery of leadership development requires a careful balance between business needs and the personal needs of each leader. The latter in turn needs to develop the self-awareness to know how to apply their development productively both to their job and their career. Finally, the Everyday Leader is only truly born when learning is embedded by daily practice. This means action plans that embed new skills and knowledge - and which encourage organisations to make it easy for them to do so. Leadership development has never felt so complex – yet neither has it felt so rewarding to us when delivered well. Go and have a look at our web site to find out why the potential for those Everyday Leaders who get it right have never been more exciting.
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Feature
By Ben Roback Account Manager, Cicero Group Member of the US Embassy’s Young Leader’s UK program
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Balancing Corporate Leadership and Corporate Responsibility in an Increasingly Political World In both the United States and the United Kingdom, political developments over recent years have forced business leaders to confront – often publicly – highly charged issues. Studied neutrality was not always an option in the Scottish Independence and Brexit referendum debates, while the US presidential election and the White House’s direction of travel since has forced business leaders to take a stand on social debates that had previously been confined to the world of politics. The challenge for business leaders to balance corporate leadership and corporate responsibility in this politically charged environment has never been greater. The nexus of politics and business at the highest level is usually limited to business forums and councils, with governments seeking the corporate advice of CEOs. They are rarely a platform for political activism. Transatlantic businesses face challenges on both sides. As firms based in the US consider how to best engage with an administration that is more sensitive to criticism than its predecessors, global companies anchored in the UK continue to navigate the unique challenges of Brexit. In a business climate that is becoming more and more affected by political decisions, corporate leaders are forced to ask themselves questions against which their customers and the public will judge them: What does my business stand for? Is this issue important enough for me to speak out on? How do I balance consumer and employee activism with the risk of becoming engaged in high-profile political rows? In the United States, those tough questions were put to the test in the aftermath to the events in Charlottesville, VA, bringing corporate America directly into a highly charged political debate. Business leaders who sat on the president’s advisory councils voiced their opposition to the White House’s handling of the racially motivated political violence in Virginia, but faced a public backlash
and a wave of calls to resign their business council memberships. The scale of public outcry prompted a quick response. Within a space of just two days, the Manufacturing Council and Strategy & Policy Forum had been disbanded by the president in order to avoid putting pressure on their members. The tone was set for a more vocal and politically active business community that we can expect to last the duration of President Trump’s tenure. It reflected a similarly testing period for business leaders in the UK, who have tried to balance their business needs with a desire to avoid becoming embroiled in domestic political issues. For the majority, the business community stays out of political debate but it has become active in more recent one-off events, most notably the EU referendum and the direction of government travel since. With the political debate since the Brexit vote having been reduced to binary camps of ‘Hard Brexiteers’ and ‘Remoaners’, companies have sought a balance between articulating the real-world impact of Brexit on their operations and being accused of frustrating or ignoring democracy. Highly charged political events should not necessarily be a deterrent to business engagement. There is a balance to be found between activism and becoming overtly political. But certain events and occasions demand political intervention from business, as much as there are times when speaking out is not appropriate. Corporate leaders deemed important enough to sit around the table with political leaders have a responsibility to their company values, employees and customers. Big business cannot be a silent backseat passenger in political issues that impact the very fabric of the societies in which they operate. Globally, we see an environment ripe for political outsiders and those willing to challenge establishment structures. Looking forward, as a company that helps craft political messaging and www.babinc.org
engagement strategy, we expect business leaders to be judged increasingly on their strength of character in political debates, not just on the dividend they deliver to shareholders. Political courage and a sense of corporate direction will become more important as business leaders follow the lead of President Trump and President Macron and transition from the corporate world into the political arena. Despite reputational risks stemming from taking a clear stance on the most important political issues of the day, corporate leaders should not shy away. At Cicero Group, we advise principled activism and not political antagonism. Corporate leadership is vital, creating the framework for an honest debate that challenges deeply impactful decisions. On both sides of the Atlantic, the business community is cautious of overreaching. Corporations are not political parties, nor should they be. But on the issues that fundamentally impact their day-to-day operations or the lives of their employees, big business must continue to show courage and find its voice.
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Cicero Group is an integrated full-service communications and market research agency. We deliver award-winning campaigns across all major business sectors from our principal offices in London and Brussels, advising clients on political strategy and advocacy.
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Feature
Developing Future Global Leaders By Mark London Head of Marketing, ACS International Schools
According to the 2016 PwC Global CEO survey, 75 per cent of CEOs said that a skilled, educated and adaptable workforce should be a priority for business, with nearly half making changes to how they develop their leadership pipeline.
be inquirers, knowledgeable, thinkers, communicators, principled, open-minded, caring, risk-takers, balanced and reflective, all of which are qualities that embody the qualities associated with well-rounded, strong global leaders.
In today’s diverse and complex marketplace, leaders must be equipped to tackle thorny societal and international issues, be able to operate in a world with multiple stakeholders and different values and attitudes, be culturally competent and globallyminded – all in an increasingly unpredictable worldwide context.
An equally important aspect is personal development, which is nurtured through the creativity, action and service (CAS), a core element of the IBDP. The CAS Programme seeks to develop students who are intellectually, creatively and physically balanced and understand how the world works and their ability to affect it.
And with CSR no longer viewed as an option but an imperative, multi-national corporations must look for leaders who will have the ethical and cultural awareness to thrive in an international marketplace.
CAS encourages students to put their awareness of local and global issues into practice, helping them develop teamwork and time management skills, and gain experience of social responsibility.
Before university and work experience, schools play a formative role in helping students see the world through others’ eyes. A 2016 survey of UK Business leaders highlights the importance of a well-rounded education in preparing young people to become the next generation of successful global leaders. A curriculum to prepare future global leaders One education programme that undoubtedly develops globally aware young leaders is the International Baccalaureate (IB). Founded in Geneva, Switzerland, in 1968, the IB approaches all subjects with an emphasis on pursuing cross-cultural and inter-disciplinary links, beliefs and traditions, equipping students with a broad appreciation of foreign cultures and citizenship. The programme spans ages three to 18 and is split into the Primary Years Programme (PYP); the Middle Years Programme (MYP); the IB Careerrelated Programme (IBCP) and the most well-known Diploma programme (IBDP) at post-16 level. Developing essential leadership skills The IB Learner Profile provides the qualification with an overarching concept of how to develop international mindedness, encouraging students to 18
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IB students at ACS International Schools, for example, have used their CAS hours to perform at local community events, fundraise and engage in charitable international projects. Proven pathway for global leaders Research has proved just how tangible the qualities of an international education really are. In a survey of University Admissions Officers carried out this year, the IB was rated as a far better preparation to thrive over other traditional UK and US curriculums, not least in recognition of the key skills students develop through their learning. Admissions officers believe that IB students cultivate vital leadership aptitudes including self-management skills, open mindedness and the ability to cope with pressure. Seven in ten university officers also cite the IB as the qualification most likely to develop students’ intercultural abilities. Encouraging students to broaden their horizons, be articulate and principled thinkers, and appreciate different cultures, the IB helps develop future leaders with the skills to compete in a global workforce. And in an increasingly globalized, CSR-conscious world, these skills are only going to become more sought after. www.babinc.org
Feature
By Nina Gray
Managing Consultant, Major, Lindsey & Africa
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Leading Legal Through Times of Change Leading the legal department in any industry comes with daily challenges, from keeping up with regulatory requirements, to addressing budgetary concerns, but when an organisation is faced with a period of change due to the economy, acquisition or divestiture, how can a general counsel gracefully navigate a turbulent situation and still keep morale high? From the moment the mention of a change is announced – or even just when rumours begin to swirl – the general counsel, like any other leader, needs to be prepared to keep the situation from getting out of hand, address employees’ concerns and mitigate attrition – all while keeping the team engaged and focused on the job they have to do. The key to managing change is communication – about everything and anything – in a strategic and consistent manner. Lawyers are trained to pick apart a situation and make certain assumptions. As the legal leader, the general counsel needs to minimise the uncertainty. This begins with being open and honest. The legal and other teams will want to see transparency and never feel like they are in the dark or feel undertones that something is being hidden from them. For obvious reasons, there will be times when some matters cannot be discussed – and that is fully acceptable at all levels; however, if the leaders can share that certain topics cannot be discussed at this time and updates will be shared as soon as possible, then teams of employees, whether they are lawyers, sales people or in supportive roles, will appreciate that they have been included. Ideally, a strong leader will create a communications plan that is based on the larger organisational plan. This will help to ensure consistent messaging and a realistic timeline for disseminating that message. Confidential matters are challenging to keep confidential. We asked Lars Sjobring (Group Vice President of Legal Affairs, Global General Counsel and Company Secretary at Autoliv, Inc., a NYSE-listed company), his suggestion on how to navigate this issue. Lars explained that based on his historical experience as a general counsel and with leading teams: “I think we all agree that it often is best to keep the number of people that initially know about a significant
confidential change extremely small until a larger internal announcement is released. But while people often can accept that a very small group of individuals were ‘in the know’ before them, it is often demoralizing if you are not in the next but the third group to know. Balancing the need for continued confidentiality against the need to make those you will need to rely on in later stages feel part of the ‘in the know’ team is the difficult trick.” Once a communication plan is strategised, make sure the communication is being listened to accurately and appropriately. Pay attention to what is going on around you. Notice internal conversations and body language. Individuals will have concerns, so give them opportunities to voice concerns whether through open forums and meetings or anonymous questions or comments – then address the issues and concerns. Employees and team members will want to understand how the changes affect them individually, so as much information and clarity that is possible is best. When more information is able to be shared, deliver a clear vision of the future and the impact. Changes – in most times and places – make things different. Effective and good leaders will prepare their team for newness – whether that is new job responsibilities, new processes, new reporting structures or new leadership. They will also encourage and excite the team about what is coming and celebrate positive elements of the existing and future environment. How evolving and changing environments and situations are handled, especially if of a sensitive and confidential nature, will show true leadership abilities. Strong leaders will put themselves in the team’s shoes and show interest, concern and connection. Silence and secrecy are not generally effective, can be counterproductive and can affect loyalty and commitment to the team and the organisation as well as alter dedication to a specific role. A team should never feel like it is an ‘us versus them’ situation. The goal should be one of bringing people together for future success – whatever that may look like. And, showing that the leaders of an organisation have the best interests of their teams in mind will create a positive direction for the future.
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Feature
By Beat Bühlmann General Manager EMEA, Evernote
Managing the Triple Overload Challenge Being successful in today’s digitized world partially requires new approaches and a new skill set. What has worked in the past may not always work again. While the digital age offers many opportunities arising from new data, it also poses a significant challenge with regard to constant distractions and multiple areas of information and data overload. Digital Transformation Is Nothing Special, Or? Over the last few centuries, we have seen constant changes in the business environment. The First Industrial Revolution (steam and mechanical production) started around 1780, when companies and leaders had to adapt to new circumstances and, hence, had to learn new skills. The same occurred during the Second Industrial Revolution (electricity and mass production) as well as the Third (IT and automation). At first sight, there is nothing new or special nowadays. According to Klaus Schwab (2016), “now a Fourth Industrial Revolution is building on the Third, the digital revolution, that has been occurring since the middle of the last century. It is characterized by a fusion of technologies that is blurring the lines between the physical, digital, and biological spheres.” Yes, the current revolution looks like it involves more changes happening at once, but it is still not unique. So, why is there such a hype about the Fourth Industrial Revolution, especially about the digital transformation? Is digitalization just another management fad? Or are companies and leaders required to understand a crucial difference to survive? The Difference: Speed, Number of Changes and Trend Scouting The industrial revolution happening now has one significant difference compared to the previous ones: speed. Constantly increasing computation power and storage capacity at a lower cost are allowing researchers to make greater progress in shorter periods of time. Such progress leads to more changes and new trends that need to be evaluated. Those changes impact our businesses and private lives with increased frequency. Who has not heard
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the phrase “change is the only constant”? Fifty years ago, a board member had to deal with a maximum of one large, truly relevant change during his or her tenure. But now, a new breakthrough seems to occur every four to five years (e.g., the Internet, Wi‑Fi, mobile phones, robotics, artificial intelligence, and machine learning, just to name a few). What are the business implications of the massive number of changes we all have to undergo? How do we deal with this situation of constant information overload? Changes are interconnected with emerging trends. Ignoring megatrends may hurt a business significantly or even lead to bankruptcy. However, trend scouting is complex. Often, trends are overestimated in the beginning and then underestimated after the initial hype fades. A great example is the print newspaper industry. You might recall how, around 1998, scholars claimed that in a few years, there would no longer be any printed newspapers. In his Harvard Business Review (HBR) article (2014), Roger Martin said “It’s only in the last ten years that the Internet has really started to kill newsprint and newspapers.” As changes do not manifest overnight, constant trend scouting and trend weighting are essential. The Triple Overload Challenge Besides speed, there is another major difference between the current and the former Industrial Revolutions. There is an increasingly significant challenge that is often underestimated or not even dealt with at all: the triple overload challenge (data, communication, and cognitive) of the First World business environment. 1. Data overload How much time do workers spend each day looking for information? Research suggests the average knowledge worker wastes about 2.5 hours per day searching for information, which is not productive at all. Given the vast data growth expected, investing in an efficient information-retrieval solution for your company is essential for future success. Furthermore, finding information is key to preventing duplication of work. www.babinc.org
WHAT
SITUATION
IMPACT
Data Overload
Data Doubling Curve: • today at 14 months • 2020 below one month
2.5h searching for information per day
Communication Overload
80% of working time spent for communication (meetings, email, chat, WhatApp, etc.)
Not much time left for actual work (Deep Work)
Cognitive Overload
Maximum 5 minutes of time between two interruptions – GTD* not possible at all
Makes people tired and exhausted without real output. Going home frustrated.
*ML: Machine Learning / AI: Artificial Intelligence / GTD: Getting Things Done
2. Communication overload Today’s workers spend about 80% of their labour time communicating or collaborating (e.g., through emails, meetings, and texting). As a result, not much time remains to do deep work. 3. Cognitive overload Research shows that a knowledge worker gets interrupted or switches tasks every 3-5 minutes on average, leading to a very unhealthy cognitive overload that ultimately results in exhaustion. All three forms of overload together represent a serious challenge, be it for productivity or health reasons (i.e., burnouts). Successfully Tackling the Challenge Thanks to the increasing amount of data available, today’s business environment allows leaders to do less guesswork. This might be considered beneficial, but it requires a fundamentally new approach to management in order to turn it into something positive. Measuring and testing repeatedly have to become our state of normalcy. Learning quickly is more important than finding a perfect solution that is outdated at launch. Moreover, it is crucial to have key performance indicators (KPIs) at all levels which are, ideally, shared with the entire company. Such transparency is a strong signal of inclusion for employees. Of course, speed is instrumental when it comes to working with data, too. One often overlooked but important step towards the path of digital transformation is setting the correct communication expectations. To put it simply: if a house catches on fire, do you email the fire department? Decide as a team which communications should happen via video conference, phone calls, chat or email by creating a team communication charter. Having such a document in place can go a long way towards building cooperation, meeting deadlines, and creating an atmosphere of trust and accountability in our digitized society. For more tips on a successful digital transformation, consult the accompanying checklist. www.babinc.org
CHECKLIST FOR A SUCCESSFUL DIGITAL TRANSFORMATION Powered by Evernote
1. For a successful transformation, board members and CEOs need to lead. 2. Working with internal and external data should be a natural part of your company DNA. 3. Create performance dashboards at all levels and share them with employees. 4. Regularly scout for new trends and analyze them. Try creating “Do Not Disturb” or “Deep Work” hours in your calendar. 5. Create a culture of failure at all levels of your organisation and talk about it publicly. 6. Think strategically, but act short-term (ie. 2-3 tests per quarter): try fast, fail fast, and apply what you learn. 7. Address the information overload challenge and lower unproductive communication. 8. Don’t think and operate in online and offline silos; there is no separation anymore. The world is now “noline”. 9. Remember that speed beats perfection: companies most adaptable to change survive. 10. Bring on a CIO with the right can-do attitude: your IT department should be an enabler.
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By Kathryn Marten Director of Development, National Theatre
The National Theatre: From London’s South Bank to Broadway At the National Theatre we make world-class theatre that is entertaining, challenging and inspiring; and we make it for everyone. We work with some of the world’s greatest theatre makers to create around 25 new productions for our stages each year, and one of the core aspects of our mission is to ensure that our work reaches as many different locations as possible. What might be surprising to some is the fact that we are very much an international theatre, reaching audiences not only in the UK but also around the world.
Denise Gough (Harper) and Andrew Garfield (Prior) in Angels in America Perestroika, photo credit Helen Maybanks
Through NT Live our productions are broadcast to 60 countries, and with live theatre our productions tour around the world, attracting huge audiences in the
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US in particular. Our iconic production of War Horse played to 1.2 million people in 68 locations across the US, and The Curious Incident of the Dog in the NightTime has just finished a 30-city tour after becoming the longest running play on Broadway for 20 years. To further develop the US-UK relationship, the National established NT America in 2012, a production company that works alongside the American Associates of the National Theatre in New York. These two organisations further expand our relations with American theatres, artists and supporters. This includes the recent transfer of People, Places & Things to St Ann’s Warehouse in Brooklyn and the upcoming blockbuster Angels in America to the Neil Simon Theatre in the heart of Broadway*. When a National Theatre show travels, we feel strongly that the NT values should travel along with it, particularly in regards to affordable ticketing and appealing to broad audiences. We are fortunate to work with donors and sponsors who support the NT’s mission by underwriting discounts for audience groups who would not usually be able to come to the theatre. For example, we held relaxed performances of The Curious Incident of the Dog in the Night-Time, allowing those with additional needs to be welcomed to a performance without the pressures of adhering to usual theatre ‘rules’ of being silent and sitting still during the show. We regularly hold events in the US that showcase our work. For example Vogue and Anna Wintour recently hosted an elegant gala for People, Place & Things, along with co-hosts Nathan Lane, Damian Lewis, Sophie Okonedo and Andrew Garfield. But the most fascinating thing for me is to see how an American audience can respond differently to a British audience. For One Man, Two Guvnors, the laughs landed in quite different places in contrast to our experience with UK audiences. The privately educated ‘toff’ character joking about his boys’ school dormitory antics was rather lost on www.babinc.org
Current NT Production Follies, photo credit Johan Persson
photo credit James Bellorini Photography
Culture
Broadway, whereas the immoderate character desperately keen to demonstrate his acting credentials brought the entire house down! On a more serious note, taking People, Places & Things to St Ann’s feels really exciting. It is an important play about drug addiction – a theme that resonates in cities across the globe – yet it is far from bleak. We hope that this inventive and entertaining play will find a responsive audience in Brooklyn. Following hot on its heels is our US transfer of Tony Kushner’s brilliant epic Angels in America. Set in 1980s New York against the backdrop of the Reagan administration, Angels in America charts the AIDS crisis, grappling with identity, illness and what it was and is to be an American. It might seem bold for a British company to take a very American story to US audiences, however the show originally premiered at the National in 1993 before it was produced on Broadway a year later. Our cast features some of America’s best acting talent with Nathan Lane as Roy Cohn (whom we were recently reminded was Donald Trump’s lawyer for many years) and www.babinc.org
Andrew Garfield. Although essentially a historical piece, Angels in America still engages and resonates profoundly with contemporary audiences. The National enjoys partnerships with a number of BritishAmerican Business members including Bank of America, Bloomberg, Delta Air Lines and The Wall Street Journal. Through our partnership with Delta Air Lines (an introduction made at a BAB event), theatre fans were able to enter a ballot for a chance to book for the sold-out London run of Angels in America this summer. Initiatives such as this are only possible with private support. The US and the UK certainly have a strong connection at the National Theatre and we look forward to many more fruitful years ahead. If you are interested in finding out about how you could work with the National Theatre please contact Kathryn Marten at kmarten@nationaltheatre.org.uk. * Angels in America on Broadway is sponsored by American Express.
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Culture
International Touring Article By Neil Constable Chief Executive, Shakespeare’s Globe
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Shakespeare’s Globe, based on Bankside in London, is a unique resource dedicated to the exploration of Shakespeare’s work and the playhouses for which he wrote, through the connected means of performance and education. Twenty years after the opening by Her Majesty Queen Elizabeth II in 1997, we now welcome over 1.25 million visitors a year, have grown our income to £27million without any annual government revenue funding, and have cemented our role as an iconic and international cultural attraction. As the world’s leading theatre centre for the research of Shakespeare’s plays, our ambition is to share the work we do across all continents. In 2016 we saw the return of our Globe to Globe Hamlet: an incredible two year project to perform Shakespeare’s most famous play to every nation on earth. The production travelled 193,000 miles, played 293 performances at 202 venues in 197 countries. Some of the most memorable and challenging performances for the company were to people from nations displaced in refugee camps – to Yemeni refugees at the Obock camp in Djibouti to Syrian refugees in the camp at Zaatari. As a fitting conclusion, the company performed their final performance at Kronborg Castle in Helsingør (Elsinore) in the presence of HM Queen Margrethe of Denmark and then were welcomed home to the Globe with a visit by President Obama. Never has any theatre production reached a broader audience. Last year, we were proud to bring our muchacclaimed production of The Merchant of Venice, directed by Jonathan Munby and starring Jonathan Pryce as Shylock, to the USA and China. The company performed in New York, Washington DC and Chicago, before embarking on an extended tour of China. In China, we were able to establish a full programme of Globe Education workshops for school students and, since, we have begun developing our plans for a Globe Education Centre in China. Globe Education’s work also continues in the States, where we are working with the School of Education at the University of California Davis (UC Davis) to develop our Continuing Professional Development programme for teachers and establish the Center for
Teaching Shakespeare in the American Classroom. We also annually welcome students from Rutgers University to the Globe for their third year of the MFA Acting degree programme. A bit nearer to home, last summer saw Shakespeare’s Globe’s co-production with Liverpool Everyman & Playhouse, The Two Gentlemen of Verona, travel across the UK before heading to Europe. This was the first outing for this play since the Globe’s Prologue Season back in 1996. Over 75,000 people attended our overseas touring performances in 2016, and 5,350 participated in overseas educational outreach. This is an incredible achievement, considering this will have been many attendees’ first contact with Shakespeare. This December, the Olivier nominated Farinelli and the King opens at the Belasco Theater on Broadway in association with Sonia Friedman Productions and Paula Marie Black. Academy Award winner Mark Rylance will revive his role as Philippe V, a Spanish monarch on the brink of madness, following sold-out runs at both Shakespeare’s Globe and on London’s West End in 2015. Our presence also continues to grow in China this year, after the launch of Globe on Screen in eight major cities, including Beijing and Shanghai in September. Screenings of past Globe productions include 2012’s smash-hit Twelfth Night, starring Mark Rylance as Olivia. Chinese audiences are now able to stream films through China’s biggest online platform for video content, iQiyi, which has over 200 million subscribers. Through the next few years, we will see the Globe’s productions continue to travel far and wide. People come to the Globe because there is nowhere else quite like it, but of course, not everyone can come to London. Our touring productions and outreach programmes are therefore incredibly important to us, because they take the Globe’s unique offerings out to diverse audiences. We aim to lift the words of Shakespeare off the page and recreate the wonder of the Globe through our tours, but of course hope some of our audiences will be inspired to visit the Globe itself in their future travels. www.babinc.org
Industry Insight
By Jonathan Jordan Senior Partner, Sermelo
Tackling the cyber challenge from a communications perspective The perfect storm of digital transformation, globalisation and populism has made safeguarding corporate reputation significantly more challenging. But it is the emergence of cyber threats that most businesses rightly fear, as an operational issue can quickly become an existential crisis for the unprepared. Many high-profile scandals this year relate to some kind of cyber-attack or data breach and a recent cyber security report predicts global annual cybercrime costs will grow from $3 trillion in 2015 to $6 trillion by 2021. Cyber is a unique threat because it’s intangible, difficult to quantify, and has a wide range of consequences, from operational downtime, to potential litigation from customers. As with any potential issue or crisis though, the response is absolutely crucial, and can greatly impact how that organisation recovers and restores trust. When facing a cyber threat, an organisation must respond quickly, even though it may not know the facts, and demonstrate empathy with the customers and other stakeholders who have been affected. Clearly stating which facts are known, and recognising those that are not, helps prevent potentially damaging speculation. In this digital age, it is humans that should play the most active role from the outset, both internally and externally, in communicating the actions that are being taken to resolve the issue. Typically, law enforcement agencies and other third parties will be involved and crisis plans should anticipate this. All partner communications through traditional and social media should provide consistent and timely updates. Message delivery is absolutely critical; all communications should cascade through the organisation and converge on the agreed positions and not diverge based on speculation in traditional and social media. Ultimately how you respond to a cyber threat becomes the key factor in determining the effect it will have on your reputation. Having a good crisis plan helps, but the speed and ambiguity of a cyber-attack means you can’t learn on the job. There is no substitution for experience, and in the same way pilots don’t learn how to make emergency landings through trial and error, management teams need to find the time to participate in crisis simulations which prepare them for the unexpected. Let’s not forget the word ‘cyber’ is derived from a Greek word meaning ‘skilled in steering or governing’ and business leaders must learn to be at least as skilled and prepared as the perpetrators of the attack.
Are there immediate immigration insecurities for businesses vis-à-vis Brexit?
By Rahul Batra
Managing Partner, Hudson McKenzie
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On 18th January 2017 at Lancaster House, Theresa May declared in her Brexit speech that “you cannot control immigration overall when there is free movement to Britain from Europe.” Evidently, this suggests that there is a serious concern regarding the EU principle of free movement of people for those remaining within the UK. Several proposals have arisen, such as the UK to adopt an Australian-style points based system, in which resident permits that can last from three to five years and work permits that last for as little as two years, and this has evoked considerable concern. This is because a staggering 6.6% of the workforce in the UK is already made up of EU nationals, immediately depicting that the UK’s economy heavily relies on foreign labour. Not only this, but there are also startling statistics surrounding areas such as hospitality, in which firms are requiring at least 60,000 new EU workers to fill vacancies, according to KPMG. These forms of controls could destroy the UK Hospitality industry, as well as retail and hotel industries. As described by the Head of Employment Skills at the Institute of Directors, Seamus Nevin, controls on immigration could prove to be a “bureaucratic nightmare” for firms all over the UK. Therefore, it could be questioned: Is there a positive future for business profitability in the UK, amid Brexit negotiations? We have already seen net migration drastically drop to 246,000 – its lowest level within three years. In knowing full well that business providers pivot majorly on the labour of non-British nationals, this is not a positive outlook. With Theresa May’s pledge to reduce net migration to a lower amount of 100,000 and not forgetting to mention the cloud of uncertainty over Brexit negotiations, the commercial future looks unstable. Furthermore, immigration controls will no doubt have a negative short-term impact on business profitability. Therefore, although there is the need to “prevent a massive influx of people”, as according to Chris Grayling, May must tread carefully when negotiating with the EU as to immigration controls.
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Policy
Leadership in 2017/2018: Must Business Lead Now? Emanuel Adam
Director of Policy and Trade eadam@babinc.org Follow Policy on Twitter @BABPolicy
Ismini Tsakiris
Policy Assistant, BritishAmerican Business
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Over the past 18 months, several countries on both sides of the Atlantic have seen a public sentiment turning against established political leadership. Whether it be the UK’s vote to leave the EU against the hope of the sitting Prime Minister, the US election outcome, or the rise of right wing parties in some countries across Europe; trust and confidence in established political leadership has reached a new low. In fact, the Edelman Trust Barometer, which assesses the general population’s trust in government, reports the lowest trust in established political leadership since it started its survey in 2012. The result is concerning for business, because the revolt against the established political leadership resulted in a move away from liberal, globalist trade policies. The US, for example, has seen a considerable change in the way it wants to lead the world on trade. The withdrawal from the Trans-Pacific Partnership (TPP) agreement and the Paris Climate Accord have reversed American leadership in the promotion of free trade and globalisation. The UK, by contrast, wants to participate in a globalised world with its vision of a ‘Global Britain’; yet the Brexit vote will in the end still most likely mean leaving the biggest trade zone in the world. Those drastic changes create enormous uncertainties for business. So, in the absence of established political leadership, must business lead now? On a number of occasions, business has proven that it can take on a leadership role. After President Trump decided to withdraw the US from the international Paris Climate Accord, hundreds of companies, including US tech giants Apple, Google, Amazon and Microsoft, expressed their disappointment and re-affirmed their commitment to the climate goal despite the US withdrawal. In the wake of protests and concerns around trade, leading businesses and business organisations, including BritishAmerican Business, advocated and supported a new approach to trade: More transparent, more sustainable and fair. Yet, public perception of business leadership still has its limits. While trust in business is generally higher than trust in government, people seem to be
uncomfortable with the way businesses often act. As pointed out in this edition’s cover story, just 37 percent of the general population say CEOs are credible. The overall public would favour more regulation and anti-business policies. The findings, however, also reveal an opportunity. 75% of respondents believe that businesses can take more specific actions that both increase profits and improve economic and social conditions in the community where they operate. This finding is also reflected in a survey conducted by BAB member Deloitte, which showed that the majority of millennials, 87%, believe that business should base the measure of its success in terms of more than just its financial performance. An example of such an approach is when Larry Fink, the CEO of Blackrock – the world’s largest asset owner and biggest investor with $4.6 trillion – followed up a letter to S&P 500 CEO’s and large EU corporations with an appeal against companies looking at short-term goals, and instead obtaining a long-term strategy that addresses environmental, social and governance issues. The US company also issued a climate change warning, in which they told their investors to adapt their portfolios to combat global warming. It is examples like this that show how business can lead. It may be time for more. If business wants to step up and take on full leadership, the Blackrock example is a step towards that direction. By communicating a vision that is based on long-term action and goals, and a continuous process of development and innovation, leaders can transform their businesses into sustainable operations which function on qualities and disciplines that seek to drive the sustainability agenda for future generations to come. In this way, new business model innovations can transform industries and steer our global economy into a path of systematic change to build new advanced markets. It is the chance for business to take on a stronger leadership role and be at the forefront in these turbulent times. Combining good initiatives that drive businesses, with a long term sustainable approach, could set the basis for future business leadership in times when it is a necessity for civilisation.
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Event Highlights New York
Innovation Conference Members in New York attended the third edition of the Innovation Conference series, The Resilient Future: Cities | Finance | People, sponsored by Arup, Turner & Townsend, Willis Towers Watson, Osborne Clarke, United Airlines, in partnership with NYCEDC and hosted by Hogan Lovells. #ResilientFuture trended at #3 on Twitter.
Transatlantic Business Awards Dinner On October 18th, BritishAmerican Business honoured John Pettigrew, CEO National Grid, Steve Denning, Chairman General Electric, Richard Daly, President and CEO Broadridge Financial Solutions and Ann Sarnoff, President BBC Worldwide for their leadership in transatlantic business.
Young Professionals Networking Members of BritishAmerican Business’ Young Professionals network, employees with under 15 years of professional experience, gathered for a networking reception hosted by Weber Shandwick.
Ambassadorial Briefing Permanent Representatives from Belgium, Germany, Ukraine and United Kingdom joined Reuters Breakingviews Editor-In-Chief, Rob Cox, for a discussion on the largest challenges and opportunities facing global businesses during the Ambassadorial Briefing sponsored by KPMG. The program was held in partnership with the European-American Chamber of Commerce and was hosted by Thomson Reuters in New York.
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Event Highlights London
Women’s Network Conference 2017 On 1 November, BAB Women’s Network brought together an all-star line-up to share insights, practical tips and real life examples of how one can be better informed and best prepared to leverage opportunities and challenges that arise in the future. Sponsored by United Airlines. Hosted by Chicago Booth.
TransAtlantic Growth (TAG) Awards Our panel of speakers for the first TAG Awards networking reception spoke about their own experiences as SMEs.
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Young Professional Speed Networking Event On 18 October, members of BritishAmerican Business’ Young Professionals network, employees with under 15 years of professional experience, gathered for a speed networking reception. Sponsored by United Airlines. Hosted by Buzzacott.
Annual Gala Dinner 2017 On 19 September, the Annual Gala Dinner celebrated the UK-US transatlantic relationship with business leaders and senior UK and US government representatives.
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Events Calendar London
November 2017
December 2017 Thanksgiving Reception Tuesday 21 November 2017 6:30pm – 8:30pm Sponsored by King & Spalding Hosted by BT
2017 Christmas Luncheon Tuesday 5 December 2017 12pm – 3pm
January 2018 TransAtlantic Growth Awards (TAG) Networking Event Tuesday 23 January 2018 6pm – 8pm Sponsored by Barclays Hosted by Grange Hotels
Tax Forum Meeting feat. The Office of Tax Simplification Wednesday 29 November 2017 8:30am – 10am Hosted by Deloitte
February 2018 Future of Work: Disruptors Wednesday 29 November 2017 6pm – 8:30pm Sponsored by Evernote Hosted by Steelcase
Brand Marketing & Trust in a Post-Truth World Thursday 1 February 2018 Time TBC Sponsored by Said Business School, University of Oxford
View both London and New York’s full events calendar at www.babinc.org/our-events www.babinc.org
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