Aalto Leaders' Insight 5, Fall-Winter 2016

A A LTO U N I V E R S I T Y E X E C U T I V E E D U C AT I O N

B I G G E R DATA – S M A RT E R S T R AT E G Y ?

Big data is not of much help if you don’t know how to use it.

How to be smartly data-driven?

Vol 5, Fall–Winter 2016

G ROW I NG PA I NS How to lead a growing startup?

SUS AN DUI NHOVE N Can she get Sanoma back on its feet?

COM M O N G O O D Urban planning is the most challenging form of leading the masses.

AALTO EX ECUTIVE SU M M I T 19 nationalities, 200 leaders meet in Helsinki

ON THE INSIDE COVERS: THE FIRST PAGE OF THE BIG DATA STORY WRITTEN IN BINARY CODE

Aalto Leaders’ Insight is published and curated by Aalto University Executive Education.

This magazine is a library of insights. The five long form articles – we call them Books – focus on different aspects of leadership, business and self-development.

Aalto University Executive Education offers high-quality executive education (Aalto EE), professional development services for specialists and managers (Aalto PRO), and creative solutions covering the entire entrepreneurship lifecycle (Aalto ENT). Aalto University brings to our offering a multidisciplinary approach, together with innovative learning methods; this provides a unique combination of practical expertise with latest research.

Vol 5: Fall–Winter 2016

CONTENTS S TA R T News, Columns and Insights Pages 10-30 Stronger Together – An Alliance as a Business Model 11-12 My View: Eeva Ahdekivi – Return to Academia 13-16 Figures: Aalto University 14 New in Science and Research 19-20 On the Joys of Not Knowing 21 Column by Mikko Laukkanen How to: How to Communicate a Changing Strategy on Every Organizational Level? 22-23 Reportage from Defending the Economy Course 25 Leadership: Riina Viitala: Mindfulness as a Tool for Developing Leadership Skills 26-28 Brexit is Not “Misbehavior” but Rather a Cold Fact 30 Column by Riitta Kosonen

LO N G - F O R M BOOK 1 Strategy Pages 31-44 Bigger Data, Better Decisions?

Big data is not of much help if you don’t know how to use it.

BOOK 2 PROFILE Pages 45-56 Direct Dutch Duinhoven CEO Susan Duinhoven was given a mission: Save Sanoma.

BOOK 3 BEST PRACTICE Pages 57-74 Growing Pains Is your startup starting to look like just another ordinary company?

BOOK 4 LEADERSHIP Pages 75-82 Common Good and the City The price of the Central Park: 40 trillion dollars. But it is not for sale.

I M PAC T & E X P E R I E N C E PARTICIPANTS AND AALTO EE FACULTY SHARE THEIR EXPERIENCES FROM AALTO EXECUTIVE SUMMIT Pages 84-98 Aalto EMBA Experiences 85-98 Figures: Aalto EE Impact in Numbers 88 My View: Mario Reich 92-93 Figures AaltoJOKO 95

— AALTO LEADERS’ INSIGHT ONLINE STREAM 101

F O R E W O R D

Let ’ s make outside r s inside r s PEKKA MATTILA , EDITOR IN CHIEF GROUP MANAGING DIRECTOR, AALTO UNIVERSITY EXECUTIVE EDUCATION PROFESSOR OF PRACTICE, AALTO UNIVERSITY

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n December we celebrate Independence Day in Finland.

Traditionally it is a combination of nostalgia and party. This year, the festivities had darker undertones due to increased political polarization. Left and right, conservatives and liberals find it increasingly difficult to understand each other. The same development can be seen in a number of Western and Asian countries.

This polarizing development has been a growing concern for many prominent economists. By looking backwards there will be no progression. By closing borders there will be no growth. In the short term, it may seem like a great idea to provoke people to take a firm stance against globalization – free trade and open borders. But in the long run, there are unrivalled societal, cultural, and economic gains in defending open societies. According to a quote attributed to Winston Churchill, when asked to cut arts funding in favor of World War II efforts, he replied: “Then what are we fighting for?”

This is why I decided to highlight just one article in this editorial. The story of Susan Duinhoven, President and CEO of Sanoma, is a fine-tuned portrayal of an outsider helping to save some of the Finnish national heritage.

How does she see us?

How do we assess her? It takes extraordinary courage to sign up for a

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turnover leadership role in a context that is partially unfamiliar and represents some of the key components of national heritage. From a leader it takes great sensitivity to learn that context, and help it to make its magic. These maverick leaders are worth a great party too.

Let’s learn how to welcome revered outsiders, and make them respected insiders. ◆

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Read Aalto Leaders’ Insight online or get the mobile reader now: aaltoee.com/insight

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S TA RT NEWS, COLUMNS & INSIGHTS

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ILLUSTRATION JARKKO HYPPÖNEN

S T A R T

S T RO N G E R TO G E T H E R As a business model, an alliance requires a whole new way of thinking and discovering a common thread with your competitor. Searching for the right partner is a bit like dating.

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n September 1989, something unprecedented was taking place in the airline industry.

“Northwest Deal Reached, but KLM Objects” was the headline in The New York Times on 29 September.

Following a trade deal between Northwest Airlines from the United States and Dutch KLM in 1989, the world’s first airline alliance was about to be born – a collaboration and datasharing agreement.

The union finally intensified,

and in 2001, The Economist writes: ”In the closest form of alliance, a pair of airlines, such as KLM and Northwest – the best example at present – completely integrated their business. The next step up from this would be a complete merger.”

But instead of deepening, the alliance broadened. In the early 2000s, Air France and Delta led the way in forming SkyTeam, which also KLM and Northwest joined. Elsewhere, competitors vol 5

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were busy joining forces under the Star Alliance and Oneworld networks.

Global competition was raring to go. There is a clear trend in the industry: by forming an alliance, companies are able to offer a more extensive network of destinations, and everyone benefits from shared customer data.

Nowadays, the three main alliances roughly divide the air travel industry into three segments, each with a slice of around 20-30 per cent of all >

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S T A R T

journeys. The dramatic structural shift in the industry has also required new business models, as private companies that also compete with each other operate within the alliances. The alliance model means a company needs to both collaborate and secure its own business.

This new thinking has also spread into other industries.

“What used to be scary – letting others on the inside – is now a requirement. It’s important to understand the ecosystem around your company: those with shared interests, and those you compete with”, Riitta Lumme-Tuomala, Head of Growth at Aalto University Executive Education, describes.

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ollaborating with chosen, trusted players now also characterizes the education field. Of course top universities around the world have always collaborated in research, but now partnerships are sought also in executive education.

“Each institution has its own signature disciplines; certain areas and themes where they excel.

An institution can complement its own portfolio by partnering with an institution with other types of strengths”, says Associate Director Riina Viitala, who coordinates Aalto EE’s own partnerships.

“Looking for a partner is a bit like dating. You have to get to

“It’s important to understand the ecosystem around your company: those with shared interests, and those you compete with.”

know the corporate culture, the people, and find shared operating methods and thinking. You somehow need the same mentality. Usually you notice whether you speak the same language quite quickly, already during initial conversations.”

Aalto University Executive Education has found a common language for instance with Darden School of Business, one of the world’s leading business schools. Darden Executive Education is ranked as number four globally in the open-en­ rollment category in the Financial Times rankings, with the faculty ranked number one in

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teaching and curriculum design.

The first joint endeavor will be the design and delivery of the Advanced Management Program for top executives in the summer of 2017.

“At Aalto EE, we always seek the best partners for each purpose, and in the domain of executive leadership Darden is an ideal match.Their long tradition of innovative methods and holistic approach is a perfect match with Aalto EE’s strengths, which include innovation and design management. In this joint program, both the participant and faculty profile will be truly international”, says Pekka Mattila, Group Managing Director of Aalto EE. “It makes sense to partner with someone who is ahead of you in one way or another, as that’s how you learn and develop.

On the other hand, it’s also important to have something to give through the collaboration.

Just one partner giving and the other one receiving doesn’t work”, Riina Viitala explains.

“With Darden, we have different strengths also geographically: Darden doesn’t operate in the Nordic countries, while we don’t in the U.S. They are really interested in Russia and the Middle East, which are our markets. Aalto EE’s global assets as far as content is concerned arise from Aalto University: innovation, design, and art.” ◆

S T A R T M Y V I E W

R E T U R N TO AC A D E M I A I N V I G O R AT I N G Eeva Ahdekivi’s DBA dissertation demonstrates that non-profits serve as a stabilizing investor type on the capital market. She felt her study leave was “a wonderful time”.

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anaging Director Eeva Ahdekivi is sitting on the top floor of her workplace Hartwall Capital along Pohjoisesplanadi in the center of Helsinki, with her newly completed doctoral dissertation lying next to her on the couch. “Writing my dissertation was a truly wonderful time. Especially while I was on study leave”, Ahdekivi explains.

She completed her disserta-

tion under the Aalto Executive DBA (Doctor of Business Administration) program on the financing base, governance, and investments of non-profit organizations. She added the finishing touches after returning from her study leave of a couple of years.“Full-time studies mean being in charge of your own schedule. You get to determine the timetables and delve into research without choppy days getvol 5

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ting in the way of concentration.”

Ahdekivi had a room for doing her research at Aalto University, and she spares no words as she praises the support she received from the academia around her. Chats along the corridors and over lunch didn’t just serve as a break from research, but gave a great deal to think about. “I wandered along the corridors in a comfy pair of jeans and slip-

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S T A R T / UNSRETEW N A/ SL FC E N F I G AS R : ITA TAIOC TU CNFEII VL &E R ? R SEI ST EY A R C H

A A LTO U N I V E R S I T Y – W H E R E S C I E N C E A N D A RT MEET TECHNOLOGY AND BUSINESS

20,000 370 3,500 students, of whom

professors

are doctoral students

THE FINANCIAL F O OT P R I N T O F A A LTO E E Through its operations, Aalto University Executive Education Ltd contributed a total of approximately

6 schools in the Helsinki Metropolitan Area, and with over 300 years of combined history: School of Business School of Arts, Design and Architecture

2.2 million euros

School of Science School of Chemical Technology

back to the Aalto community in 2015, in various forms, including dividends, lecture fees, and rent.

Over

School of Electrical Engineering School of Engineering

100

bachelor’s, master’s and doctoral degree programs.

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S T A R T

pers. I loved the nerdy atmosphere and coffee breaks with top professors. It was a really important work community.”

Ahdekivi believes that taking study leave was vital for completing her dissertation. “It was such a huge push that I don’t think it would have happened without some time off. Research requires a lengthy, consecutive period for in-depth examination of the data and research problem.”

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hdekivi is managing director at Hartwall Capital, her previous roles including investment director at state-owned investment company Solidium, and chief senior specialist at the Government Ownership Steering Department of the Prime Minister’s Office.

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he talks about her work with great passion, explaining how she has had the opportunity to be involved in a number of historical turns of events; the boom in stock listings at the end of the 80s, privatization of state-owned companies, foreign ownership being allowed in the stock exchange…

“World politics have always played a role in my work. Shares have been the common thread during my career.”

The idea to take some study leave arose at the beginning of 2013. At the time, minister Heidi Hautala had her in mind for the

W H AT I S D B A ?

The Aalto Executive Doctor of Business Administration (DBA) is a structured program in Business Administration for experienced individuals with considerable managerial experience.

The program has both real world relevance and academic rigor, and focuses on the relevance to the employer and the professional development of the candidate.

Aalto Executive DBA graduates will develop doctoral level in-depth knowledge of the latest theories and methodologies in business research.

position of director general of the Government Ownership Steering Department, but after a lengthy process, the appointment went to someone else.

“I decided that now is the time to go”, Ahdekivi states. She saw the crisis as an opportunity. “A window opened for something completely different.” Ahdekivi spent part of her study leave in the U.S. “With all of the material available online, studying is technically easier than it used to be.”

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hdekivi’s study is divided into two sections: the first part explores the connections between a non-profit’s financing base and chosen form of governance, using material from vol 5

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890 non-profits, while the second part utilizes anonymous equity portfolio data provided by 530 non-profit organizations, covering the years 2001-2013.

The dissertation serves as the world’s first empirical documentation of the behavior of nonprofit investors.

“Finland is a good non-profit lab”, she mentions. She was provided with the data of nearly 900 non-profit organizations for her research. “All the vital information and details are handily available on a spreadsheet. The data was of a high standard and statistically relevant, a real gem.And no one else had studied it.”

The study has two main observations. Firstly, a connection exists between the governance and financing base of non-profit organizations, showing that non-profits reliant on external financing (e.g. non-profits funded through donations, business, or public funds) concentrate less decision-making authority with their boards of trustees compared to those active on the stock markets.

Another important finding shows that non-profit investors can operate with a long-term focus on the capital market, and carry relatively large risk positions in their equity portfolios.

They can operate independently on the stock market, and balance occasional abnormal market movements. >

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S TA R T

“As the third sector becomes more important, non-profits are becoming increasingly interesting financial players”, says Ahdekivi.

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or Eeva Ahdekivi, returning to the scientific world was like a homecoming.

“The Department of Accounting at Aalto University – a wonderful, atmospheric place that became a second home”, she says.

She describes how the fall light lands softly through the windows in the Chydenia building, and you bump into fellow academics along the hushed corridors. If work gets stuck, someone puts the coffee on.Then you talk about the daily news and research dilemmas over a cup of coffee. Even over lunch at the restaurant, you don’t just get company, but help for instance in mathematical methods.

“It was so unique. I kept thinking I’m genuinely happy here”, she claims. She reminisces on her post-doctoral party, and the notion that came across in the speeches of science being love. “It’s not something you get over too soon”, she says. “Also having so little free time takes some getting used to.”

She taps on the dissertation that lies next to her. “I’m sure there’ll be many proud moments in the future of having completed this.” ◆

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61 F T- R A N K I N G : A A LTO E M B A RO S E 1 5 P L AC E S The Aalto Executive MBA program continues its rise in the world’s most prestigious global ranking – the annual ranking by the Financial Times. This year’s 61st place was 15 places above that of last year. The Aalto EMBA is once again the only program provided by a Finnish university to make it into the rankings.

Considerable post-program career progress played a particularly important role in the program’s impressive rise. This can be viewed as a demonstration of the program’s long term impact.

“Our own improvement was particularly gratifying because it is genuinely due to the impact and quality of our program, rather than an upswing in any one of our markets”, says Dr. Pekka Mattila, Group Managing Director for Aalto EE.“The key issue is

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what it provides for the students. This is tangibly realized in the form of networks, career paths and salary development. Ultimately, however, the key issues are greater self-understanding and awareness.”

The Financial Times ranking assesses 16 categories such as the diversity of the participants, instructor qualifications, participants’ career progress, salaries and the achievement of personal goals.

“The international character of the Aalto EMBA is one of its strengths. The program, which is provided in seven countries, is world-class in terms of diversity. We were ranked eighth globally for our number of female participants”, says Hanna-Riikka Myllymäki, Business Area Director responsible for Aalto EE’s MBA programs.

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PHOTOS

OTSO ALASKO

S T A R T

Sanna Hyyrynen

Jenniliisa Särkkä-Blomberg

Katja Ahoniemi

APPOINTMENTS AT A A LTO E E

Mari Rauhala

Aalto EE appointed S A N N A H Y Y RY N E N as Head of Solutions & Impact and Delivery & Experience and as a member of the main Management Teams starting August 15, 2016.

Hyyrynen has a solid background in resource planning and management, and she is an experienced project manager; her skills in these crucial areas will contribute to enhanced resource management and customer service in the growing global competition within the industry.

Dr. K AT J A A H O N I E M I was appointed as Associate Director of Degree programs starting August 29, 2016. Prior to this she has served as the Program Direc-

Riina Viitanen

tor of the full-time MBA program at Imperial College London. Ahoniemi’s substantial international experience and her knowledge of the academic field will enhance and support the implementation of the company’s global growth strategy.

Dr. R I I N A V I I TALA was appointed as Associate Director starting August 1, 2016. She has served as Senior Advisor since March and will continue her work on the development and design of high-profile customized solutions as well as on strategic partnerships, developing partnership programs.

Dr. Riina Viitala has extensive work experience, having served vol 5

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for 15 years in a range of leadership positions and key expert roles in Valio Ltd, where she developed a strong expertise in the areas of innovation and change management. She also has a strong background in both consumer research and product and concept development.

M A R I R AU H A L A has been appointed as Associate Director, Aalto EE Executive Programs and Networks, and JENNILIISA S Ä R K K Ä - B LO M B E RG as the Associate Director, Aalto PRO programs.

Previously both Rauhala and Särkkä-Blomberg have worked as Solutions Director within the company.

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P H OTO A A LTO E E

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A A LT O E E ’ S N E W S I N G A P O R E C I T Y C A M P U S O P E N E D Aalto University Executive Education’s programs in Asia Pacific has a new home base in Singapore. Grand opening of the Singapore campus took place in May. The traditional Lion Dance brought prosperity, good luck and success to the future. Aalto EE has approximately 3 500 alumni in the Asia Pacific region. The company has had its subsidiary in Singapore since 2000. In the picture: Kathleen Loo (left), Maevis Lee, Valentin Chernikov, Paula Parviainen, Anu Sirkiä, Pekka Mattila, Lee Teng Soh and Esther Hoon.

D E A R D I A RY… [ A A LTO M B A ]

“Studying definitely energizes!” says Kai Rönnberg, currently Vice President, Services Beneficiation Business Line, at Outotec. Rönnberg is also in the middle of his Aalto MBA studies.

Rönnberg will be giving regular updates on his studies online for Aalto MBA Journal. He promises to reflect on interesting, amusing, and also difficult moments along the way.

Rönnberg’s Aalto MBA Journal can be found from the Aalto Leaders’ Insight online stream: www.aaltoee. com/blog

SAFETY AND S E C U R I T Y M A N AG E R OF THE YEAR: R A U N O H A M M A R B E RG F RO M WÄ RT S I L Ä [ AWA R D ]

Aalto University Professional Development (Aalto PRO) and Finnsecurity appointed Chief Security Officer Rauno Hammarberg from Wärtsilä as Security Manager of the Year in connection to the 25th anniversary celebrations of the Diploma in Safety Security Management Program in November. The award was the first of its kind, granted to a commendable manager who promotes safety and security in Finland.

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“Rauno Hammarberg has worked in a demanding management position, actively promoted the strategic role of safety and security management in organizations, and engaged in developing the industry”, summarizes Senior Program Manager AnnaMaija Ahonen from Aalto PRO, one of the members of the jury.

Before Wärtsilä, Hammarberg has held similar positions at e.g.

Nokia and VR. The Diploma in Safety and Security Management offered

by Aalto Pro is something of a household name. So far, over 400 Finnish security professionals have taken part in the program, also valuing the resulting network of experts.

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A A LTO UNIVERSITY C O N G R AT U L AT E S BENGT H O L M S T RÖ M [ECONOMICS]

Aalto University Board member, professor Bengt Holmström received the Nobel Prize together with professor Oliver Hart.

IMAGE EVELIINA RONKAINEN & KSENIA AFANASJEVA

Aalto University Board member, professor Bengt Holmström, and his colleague, Professor Oliver Hart, were awarded the Nobel Prize for their contributions to contract theory. The new theoretical tools created by Holmström and Hart are valuable to the understanding of reallife contracts and institutions, as well as potential pitfalls in contract design.

Professor Bengt Holmström has been a member of the Board of Aalto University since its establishment.

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“The Aalto University community congratulates professor Bengt Holmström on his amazing achievement. The prize is a testament to his unique work.

We are very lucky to have had his expertise at the university”, says Anne Brunila, Chair of the Board of Aalto University.

Tuula Teeri, president of Aalto University, agrees.

“Holmström has long belonged to the top economists in the world. He participates actively in public debate, especially in issues regarding science and education. It has been a pleasure to build the new Aalto University together with him.”

Bengt Holmström, Ph.D., born 1949 in Finland, is Professor of Economics at Massachusetts Institute of Technology (MIT) and has previously worked as a professor at Yale University. Holmström holds a number of posts of responsibility in academies, research institutes, and in industry.

ALSO A NEW NOBELIST IN PHYSICS AT A A LT O [APPLIED PHYSICS]

The Nobel in Physics was awarded to Michael Kosterlitz, David Thouless and Duncan Haldane, who are researching topological phase transitions of exotic matter.

Kosterlitz is currently on a two-month research visit at Aalto University, working as a visiting fellow. At Aalto, professor Tapio Ala-Nissilä’s group at the Department of Applied Physics is researching the same field. Kosterlitz has collaborated with many Aalto researchers and doctoral candidates since the 1990s.

“We’re very happy to hear that the trio’s long-term and ground-breaking research has received such a valuable distinction”, says professor Tapio Ala-Nissilä.

N E W LO O K S [ A A LTO E E ]

Aalto EE’s new custom made graduation gowns and hats reflect the Aalto EE brand and its top quality.

The gowns were designed by two Aalto ARTS, Fashion and Collection Design students Eveliina Ronkainen and Ksenia Afanasjeva. Also Jane Palmu, Ilona Hyötyläinen and Jaana Beidler from Aalto University had a pivotal role in the process.

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TYPING WHILE DRIVING COULD BE MORE SAFE WITH A NEW TECHNIQUE [ I N N O VA T I O N ]

S T U D E N T S TO C O - C R E AT E FINLAND’S P U B L I C S E RV I C E S [ H AC K AT H O N ]

Aalto University is celebrating Finland’s 100 years of independence together with public sector organizations and Accenture by organizing a multidisciplinary master’s level course, #pshack100.

Organizations participating in this Public Service Hackathon are committed to transforming the public sector and creating ever better welfare for the citizens. All Aalto University students are encouraged to join the hackathon to solve digitalization challenges in the public sector.

The case organizations represent different fields of Finnish society. Students get to work with the Finnish Defence Forces, Ministry of the Interior, Finnish Customs, and the Patent and Refistration Office, to name a few.

You can follow The Public Service Hackathon online: nordic-events.accenture. com/hackathon/#/

Texting while driving – dangerous but oh so common. In a new study researchers, at Aalto University and University of Jyväskylä showed that a new text entry technique could help drivers keep their eyes on the road better than when they are tapping a touch screen.

The number of situations with the driver drifting out of the lane was 70 per cent lower.The study was implemented with a driving simulator. The test persons were driving in virtual urban and rural environments and texting sentences familiar from text messages.

“Our study was motivated by the dangerous use of smartphones during driving. Despite dangerous situations and the legislation, texting while driving or using for example navigation

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buttons is a global manner. We were trying to come up with a solution whereby the person’s driving would not be distracted”, says professor Antti Oulasvirta from Aalto University.

The researchers intended to find a solution where the driver would need to look at the keypad as little as possible and could keep eyes on the road.The same mechanism is also used to input for example GPS destinations, phone book addresses or names.

“In our tests, we used a transparent reflective film on the windscreen for the projection. It was important to position the text display so that it did not block the driver’s view of the road, but was still close enough to the road for the driver to be able to observe it while keeping an eye on the text being typed”, says Oulasvirta.

To implement promising results as a product, the researchers will need to carry out more studies. This phase of the research was presented at the international AutoUI conference in October.

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ILLUSTRATIONS JARKKO HYPPÖNEN

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On the Joys of Not Knowing

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t may seem counterintuitive for me as the Academic Director of Aalto EE, an institution very much focused on disseminating and developing knowledge, to suggest we should, as the title of this piece suggests, find joy in not knowing. However, there is in fact a rich history of respected institutions and great thinkers lauding the value of not knowing.

Before we go any further on this topic, however, it’s fundamental to make a clear distinction between not knowing and ignorance. Not knowing refers to accepting a lack of certainty or absolutes, while ignorance is simply a state of not having acquired available knowledge and information.

The first seems to be a key part of learning, discovery, and progress, while the latter is the outcome of unforgivable intellectual laziness, or as the Victorian poet Robert Browning rather succinctly puts it “Ignorance is not innocence but sin.”

Both the great bard William Shakespeare and the recent Nobel Prize winner, songwriter Bob Dylan, have echoed similar sentiments about how maintaining a childlike curiosity and open mind are measures of true intellect and maturity. Shakespeare: “The fool doth think he is wise, but the wise man knows himself to be a fool.” Dylan:“Ah, but I used to be much older then / I’m younger than that now.” Our last quote on the topic comes from the novelist F. Scott Fitzgerald (of The Great Gatsby fame), who tells us

that: “The test of a first-rate intelligence is the ability to hold two opposed ideas in mind at the same time and still retain the ability to function.”

So, it seems that in these times of information overload, increased uncertainty, and constant innovation, not knowing has arguably become more valuable than ever before. Being able to postpone jumping to conclusions may indeed be an important part of making sense of a confusing world, generating creative solutions, and being a great future leader. Why is it then that it seems to be so difficult for us to embrace not knowing?

One answer may be found in how we perceive the competence and value of those around us. A set of studies conducted by Professor Cameron Anderson and his team at University of California, Berkeley, have found that those who are assertive and confident in their interaction with team members are not only perceived as being strong leaders, but are also seen as being more competent than their objectively measured performance would suggest.

Even if you feel you must pretend to know all the answers to your professional peers, at least privately try to embrace not knowing. Next time something new and confusing comes your way don’t rush to the familiar or to your tried-andtrue go-to solutions. Rather give yourself a break, spend some time mulling over the problem, and try enjoy not knowing. ◆

DR. MIKKO LAUKKANEN is the Academic Director at Aalto EE. He is also a Researcher at the Aalto University School

of Business and frequently lectures in Aalto EE’s programs around the world.

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How to Com municate a Chang ing Strategy on Eve ry Organi zational Leve l Minna Logemann, Professor of Practice at the Department of Management at Aalto University, is an expert in change communication. “Change cannot begin until the organization adopts a shared terminology to talk about the change”, she explains. “The management’s vision is not enough, but the organization needs to be able to discuss it.”

What happens if communicating the strategy breaks down within the company?

“The sought change in line with the strategy also fails. People won’t buy into the new strategy or accept the change. According to research, as many as 70 per cent of strategic changes fail, in many cases down to a breakdown in communication.”

Where should you begin when communicating change internally?

“As you begin to shake things up in the organization and build a ‘burning platform’, areas that are deficient and require change need to be communicated. At the same time, it is important to indicate what works. Not everything is amiss. People affected by change need to know that what works is also taken care of, and the focus is on maintaining it that way.

A change process makes people flinch. It is strongly linked to an individual’s identity and place

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in the company, and sparks questions on the personal effects the change will have. It is important to provide emotional support in this situation, and understand the types of threat people feel.”

You teach that strategy communication should involve giving shared names to new elements?

“Yes. It is a question of meaningmaking. Organizations need to be taught to discuss what’s new. Many

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Finnish companies, for instance, have traditionally had a strong leaning towards engineering, with internal jargon often being highly product and technology-based.

Change needs to focus on internal grammar. An organization needs to be provided with a new, shared vocabulary and tools for discussing the change.

Change does not begin until the organization adopts a language of leadership, its metaphors and narratives and gives them meanings that make sense for the everyday work.”

How do internal and external strategy communication differ from each other?

“I don’t believe internal and external communication exist as separate entities anymore. Everyone builds the corporate image – and also customers are allowed access deep inside the company’s internal processes. It is impossible to think a message would remain strictly internal.

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Also communication within organizations has changed. Instead of management communicating the strategy in a top-down manner, communication advances in all directions, from one organizational level to the next.

Change communication is up to every member of the organization, right down to members of the lowest echelon, who communicate it to their colleagues.”

How about employees who are frustrated with constant change?

“Change shouldn’t be an end in itself. The strategy’s main elements need to be crystal clear. A solid strategy allows for continuous minor adjustments according to what happens around. A company should be steered like a racing car, without holding on to the steering wheel too tight.

You need to be able to constantly fine-tune where you are heading through small maneuvers.

Management needs to understand the difference between a major change and adjustments.

Succeeding in the afore-mentioned can be influenced by focusing on communication, while the latter is something today’s business and working life needs to be able to live with.”

Minna Logemann defended her doctoral dissertation Strategic Change under Construction: Role of Strategy Narratives in 2014.

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P R E PA R AT I O N S U N D E R WAY F O R THE FIRST S AT E L L I T E LAUNCH [ENGINEERING]

Aalto-1, the first satellite to be made in Finland, has been ready to go for a long time already. In May it was delivered to Delft, in Holland, where it is now waiting to be transported to the launch site on the US west coast at the Vandenberg Air Force Base.

Team members expect the launch to take place either at the end of the year or in January 2017.

KEEPING THE C O M PA N Y F I T [ D I S S E RTAT I O N ]

Timo Ritakallio, Aalto MBA alumnus and CEO of Ilmarinen Mutual Pension Insurance Company, defended his dissertation at Aalto University Department of Industrial Engineering and Management in September. Ritakallio’s dissertation Shaping Elements while Maintaining Fit investigates how strategic fit is developed over time and how emergent and behavioral processes might be related to the process vol 5

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“In September, we carried out the final checks on the Aalto-2 satellite and we fixed it to the Nanoracks launch adaptor in the Innovative Solutions in Space clean room in Holland. Aalto-1 is awaiting its launch in the same place, so we tested its functionality at the same time”, explains doctoral candidate Antti Kestilä, one of the satellite’s architects.

The estimated launch time for Aalto-2 is the end of 2016, when it will be launched from the US east coast up towards the ISS space station.

More detailed information about the Aalto-1 satellite online: aalto1.fi.

of developing and maintaining fit between organizational elements.

“My findings contribute to the research on the processes that allows companies to evolve toward fit”, Ritakallio, now Doctor of Science, writes.

“My conclusion is that shaping strategic core elements is an essential way for companies to maintain fit between their core elements and yet transform and grow radically during the periods of volatility and turbulence in the surrounding environment.”

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K N OW W H AT YO U M E A S U R E The Defending the Economy course (Taloudenpuolustuskurssi) arranged this fall for the second time challenged Finnish decision-makers to examine whether they are measuring what is relevant in their aim to create savings and productivity.

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When seeking to increase productivity in your organization, do you expect growth in production or lower costs?

“The general discussion often mentions productivity when actually meaning savings. But the usual scenario is that as a productivity target is set for an organization, expenditure grows instead of going down. It’s important to understand that increased outcome often means increase in costs”, stated Teemu Malmi, professor in Accounting at Aalto University, in his speech at the Defending the Economy course, which was arranged for the second time at Finlandia Hall in Helsinki in early September.

The courses are arranged by Aalto EE in partnership with daily newspaper Helsingin Sanomat. Invitees to the seminar include Finnish MPs and other policymakers.

This year’s theme was productivity. Professor Teemu Malmi’s lecture sparked a discussion on the significance of productivity and problems in its measurement.

“Usually, choosing one particular metric and monitoring it isn’t enough. Targets need to be set more wisely than that. Comparisons and measurements can be made, as long as you don’t blindly believe that a single figure is able to produce reliable results.”

Malmi encourages adopting a broad, even critical approach to indicators.When you accept that

“Education is not merely an expense in the state budget, but an investment into the future.” no individual metric offers the simple truth, lessons can also be sought from indefinite, contradicting indicators.

“Discovering a single metric is really not the point.The main thing is to find few indicators that people are genuinely eager to monitor, and targets to which they are willing to commit.”

Several of the speeches at the course highlighted how improved productivity of work does not necessarily mean an increased work pace and decrease in job satisfaction – in fact, often the opposite is true.

“It’s important to avoid slipping into a thinking that sees developing productivity as a contradiction to developing quality. Quality indicators need to be developed at the same time, and the two aspects monitored side by side”, challenged professor Malmi.

In addition to views of academics on the productivity of work, the course presented perspectives of the business world.

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the luxury hotel industry.

“It’s important to maintain a long-term perspective, rather than latching on to the near future. It’s easy to get inundated with data”, she states.

“We know our position in the face of competition on the market each day, which is the best motivator. A more extensive analysis is carried out on a monthly basis. Profitable business equals responsible business.”

Nearly 200 decision-makers took part in the annual course, which this time had a strong message of providing research knowledge and academic discourse to support policymaking.

“Education is not merely an expense in the state budget, but an investment into the future. It should not be compromised”, implored Anne Brunila, Chairman of the Board of Aalto University, in her opening speech.

Riitta Lumme-Tuomala, Head of Growth at Aalto EE, pointed out that the course is not designed to teach policymakers as such, but to foster interaction between academic expertise and political decision-makers.

“We want to provide solid research knowledge as a basis for policymaking. Political discourse often turns into an “I’m right, you’re wrong” type of discussion, which is something this course seeks to eradicate. We want to create new types of bates for decision-makers.” ◆

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SOFT SKILLS, S T RO N G L E A D E R S Mindfulness can be used as a tool for developing leadership skills, which are becoming more and more important in an increasingly complex world and fast-based business life.

People skills and emotional intelligence lie at the heart of modern leadership.

‘A

certain kind of humility distinguishes the best leaders from good ones”, states Riina Viitala, Associate Director, Customized Solutions at Aalto University Executive Education.

“Usually major leaders don’t make a big fuss about themselves. They are humble and down-to-earth, and know how to be present.”

Skills like presence and emotional intelligence are increasingly seen as key ingredients in leadership. Instead of simply being a question of talent and personality traits, these are leadership skills that can be developed.

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“Mindfulness is one way to cultivate these skills.You can exercise the mind and brain just as you can train muscles at the gym”, says Viitala.

In many companies, mindfulness techniques have become an ingrained part of internal training.

For instance, General Mills has been offering mindfulness programs for employees at its headquarters in Minneapolis already for a decade, while Target’s Meditating Merchants program was launched at the retail chain’s HQ in Minneapolis in 2010.

Technology giant Intel began its own Awake@Intel mindfulness program in 2012, measuring the results on a scale of one to ten: participants report a twopoint decrease in stress and feeling overwhelmed, a three-point increase in overall happiness and well-being, and a two-point increase in new ideas, insights, mental clarity, creativity, ability >

“You can exercise the mind and brain just as you can train muscles at the gym.”

E M OT I O N A L I N T E L L I G E N C E : THREE EXPERIENCES

“I’ve worked in management positions in two very different fields; one where people were highly driven and motivation was strongly linked to the substance of work and career advancement, while the other had a focus on the work community and relationships. However, to think the first example would not require relationship skills and emotional intelligence would be the wrong interpretation.

They are always vital, just used differently depending on the situation. No matter what the field, it is important to put oneself in the other person’s shoes, considering where the person comes from and what he or she thinks, while admitting that we can never know everything that goes on inside someone else’s head.”

CEO, male, 44

“My boss loved his personnel like an artist adores his fans.

He particularly enjoyed performing to them. Meetings involved lengthy rambles about the injustices of top management. I soon realized I had to present my ideas as if he owned them. I just about

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got through the meetings, but our final development discussion became too much.

My boss raved on about himself and his thoughts for a couple of hours, while I desperately tried to get a word in edgeways to highlight my achievements. Nothing in the discussion had relevance to my development, and I was simply trying to think of a reward for enduring the torture. It was patronizing and depressing. Finally, my boss stated that I’d attained all of my targets, but the annual bonus would be going to someone else. I handed in my notice the following week.”

Middle management, female, 39

“I used to take conflicts with employees personally, which was probably due to some of my own wounds and insecurities. Through guidance and growth in self-confidence, I’ve managed to take a more peaceful approach to conflicts, separating the personal level.

When you feel sure about yourself, you react more calmly to the emotional reactions of others.”

Executive, male, 48

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to focus, quality of relationships at work, and level of engagement in meetings, projects, and team efforts.

The Search Inside Yourself program tailored by Google kickstarted in 2007, today involving thousands of the company’s employees. In addition to mindfulness techniques and emotional intelligence, training aims to boost resilience to stress and improve mental focus.

Already four years ago, The New York Times interviewed Director of Executive Development Richard Fernandez, who was one of the participants on Google’s course. He describes his experience as follows: “I’m definitely much more resilient as a leader. I listen more carefully and with less reactivity in high-stakes meetings. I work with a lot of senior executives who can be very demanding, but that doesn’t faze me anymore. It’s almost an emotional and mental bank account. I’ve now got much more of a buffer there.”

Riina Viitala from Aalto EE knows what Fernandez is talking about. Mindfulness not only helps calm down thoughts, but also adopt a more peaceful approach to one’s surroundings and the feelings of others.

“Let’s say you find yourself in a very tight and difficult situation – this gives you a new way to look at what is going on.You have more grace towards your-

“It’s almost an emotional and mental bank account. I’ve now got much more of a buffer there.”

self, and most probably also the other person experiences the situation that way. In a sense, we are like animals who can read and sense one another.”

For a long time, emotional intelligence, mindfulness, and other “soft” leadership skills have been downplayed as phony hippy talk. Viitala is glad that the tone has changed.

“Unfortunately Finland and the other Nordic countries lag a little behind.The U.S. and many

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European countries have a broader understanding of the significance of these skills.”

Viitala sniggers how she still comes across preconceived notions of “yoga-practicing, vegan hippies” when mindfulness is mentioned in connection to leadership skills and business.

She believes that research results and actual business outcomes have the biggest impact on preconceptions.

Last year, financial publication Forbes discussed the theme in an article entitled Future of Work: Mindfulness as a Leadership Practice, quoting a study conducted

by UNC Kenan-Flagler Business School, which found that mindfulness helps employees develop in a number of measurable areas: improvements in innovative thinking, communication skills, and more appropriate reactions to stress.

“We can think about leadership in today’s changing world, where technology and the operating environment develop so fast that it is impossible for leaders to have in-depth knowledge in every area.This highlights the importance of leaders being able to help and get the most out of others. Investing in people skills offers vital competitive edge in future leadership”, Aalto EE’s Viitala believes.

Knowing how to lead others and listen to yourself – and be present in the moment. ◆

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Brexit is not “ Misbe havior ” but Rathe r a Cold Fact

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he Soviet dictator Josef Stalin once asked his economists to calculate the rate of the rouble against international currencies. He got the calculated figure, but being unhappy with the fact, he took a pen and moved the comma to the right.

This incident was not the only one in the long line of “unpleasant” facts of life denied and manipulated by the Soviet leaders.The rulers’ inability to accept facts, such as Soviet consumers’ chronic shortage of consumables, undermined the basis of the planned economy, and ultimately resulted in the collapse of the Soviet Union in 1991.

In present day Russia, President Putin struggles with a declining economy, international political tensions, and the interplay of economic sanctions and countersanctions. Attempting to showcase his actions to modernize and diversify the Russian economy, Putin resorts to state-led megaprojects and import substitution. So far, import substitution has not been efficient in either harming Western economies or boosting domestic production in Russia. The fact to be accepted would be that the drivers of new economic activity are seldom political or governed by the state, but rather draw from spontaneous grass root activity boosted by a favorable institutional environment.

Russia and the Soviet Union are not the only examples of rulers’ unconstructive

attitude towards uncomfortable facts. The European Union’s first reactions to Brexit are a flagship in this respect. Brexit is not “misbehavior” but rather a cold fact that derives from unsatisfied voters. In a free democratic world there are no “right” or “wrong” election results. Rather, every election measures voters’ trust in the rules, not vice versa.

Disappointing results display to the rulers an array of cold facts that should be better taken into account in future policy planning. And maybe even more importantly, in EU’s PR work.

In Finland, the government is trying to find a recipe for structural change where economic growth is accompanied with the “social welfare model”. So far, attempts for structural change have been largely undermined by lack of political courage of the rulers and unwillingness to change of various interest groups.What is missing is acceptance of the fact that this renovation is not about maximizing today’s benefits for all and now, but rather about controlling the damage for future generations.

Why is facing the facts so difficult? Because it is usually accompanied by the need to admit own failures on the one hand, and risk of losing power on the other. However, true leadership in business and politics is about being loyal to the overall agenda, facing the facts around it, and acting accordingly. ◆

RIITTA KOSONEN is a professor, Director of Center for Markets in Transition at the Aalto University School of Business and Program Director for Strategic Research/Academy of Finland. She is in charge of several multidisciplinary

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research projects, which provide scientifically rigorous and societally relevant research on emerging markets, especially on Russia and China, and on the competitiveness of the Baltic Sea region in the global economy.

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BOOK 1 [ S T R AT E G Y ]

B I G G E R DATA , BETTER DECISIONS? Big data was supposed to be the “new oil” and the smartest thing businesses can have. But researchers claim data is not of much help if you don’t know how to use it.

Journalist Ville Blåfield examines what type of cultural shift it would take to be smartly data-driven.

Illustrations Jarkko Hyppönen

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e call this the problem of big data”, NASA scientists wrote in their publication back in 1997.

Space technology experts had come across something they described as ”an interesting challenge for computer systems: When data sets do not fit in main memory, or when they do not fit even on local disk, the most common solution is to acquire more resources”.

As far as known, this was the first instance a phenomenon was called “big data”. The term has spread like wildfire since then – at more or less the same force as the increase of data on servers and networks around the world.

In 1999, researchers at Berkley estimated that data produced around the world amounted to 1.5 billion gigabytes.The current estimate is 2.5 quintillion bytes of data in the course of a single day – a figure you arrive at by adding eighteen (18!) zeros after 2.5.

Modern, digitalized life creates vast data masses, and obviously “big data” is seen as a problem, fascinating challenge, and an incredible opportunity.

Big data has been proclaimed as the “next oil” (Fortune magazine, 2012) as well as the “next coal” (Guardian newspaper, 2016).

Big data offers answers that were previously down to guesswork in areas like forecasting human behavior, monitoring trade, and business assessment and planning. In this respect, understanding and using big data has become self-evident in every field: of course people wanting to develop their business should use it!

But in one respect we are none the wiser than the NASA scientists back in the 1990s. Managing big data continues to be a challenge, and making use of the data masses wisely – with genuine understanding – is even harder.

There are epic success stories from around the world of businesses harnessing customer or user data to steer their strategy in a smarter way. But another recurrent story is that of companies re-

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peating the importance of big data in the boardroom without anyone in the conversation really grasping what it actually means for the company.

As the joke went at a seminar for communications experts in the fall: “Big data is like sex in junior high: everyone talks about it, but few have experimented”.

H

enri Schildt is a tenured professor with a joint appointment at the Aalto University School of Business and the School of Sciences Department of Industrial Engineering and Management. He is currently heading two research programs on data-driven management and the management of digitalization.

With a PhD and M.Sc. from Aalto University School of Science, Schildt has followed the development of information systems and the use of big data in management for more than a decade.

“When big companies like IBM began to actively advertise and sell their big data analytics tools a decade ago, little research existed on the use of big data in management.”

In principle, applying data analytics is nothing new for those operating on the interface of business and science. Science and research have always organized data and aimed to understand it.

“Statistical methods are tools for understanding the world. This began to shift from researchers to companies. Data analytics methods just transferred across extremely slowly and selectively.”

According to Schildt, an “operational” use of big data has taken root in businesses over the last decade. Similar analyzes with smaller data sets have been a mainstay of operations research for decades. Consumer purchases help forecast future sales, product development is fine-tuned according to user feedback, and areas for savings are detected. The next level of understanding would be more abstract, or tactical, as Schildt says.

“Companies usually still talk about it from an operational angle, involving practical decisions. It should not have much to do with top manage-

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O N B I G DATA … “ B I G D ATA I S L I K E T E E N A G E S E X : E V E RY O N E TA L K S A B O U T I T, N O B O DY R E A L LY K N O W S H O W T O D O I T, E V E RY O N E T H I N K S E V E RY O N E E L S E I S D O I N G I T, S O E V E RY O N E C L A I M S T H E Y A R E D O I N G I T.” – D A N A R I E LY, J A M E S B . D U K E P R O F E S S O R O F P S Y C H O L O G Y A N D B E H A V I O R A L E C O N O M I C S AT D U K E U N I V E R S I T Y, A N D F O U N D E R O F T H E C E N T E R F O R A D VA N C E D H I N D S I G H T “ I N F O R M AT I O N I S T H E O I L O F T H E 2 1 S T C E N T U RY, A N D A N A LY T I C S I S T H E C O M B U S T I O N E N G I N E .”

– P E T E R S O N D E R G A A R D , S E N I O R V I C E P R E S I D E N T, G A RT N E R R E S E A R C H “ Y O U C A N H A V E D ATA W I T H O U T I N F O R M AT I O N , B U T Y O U C A N N O T H A V E I N F O R M AT I O N W I T H O U T D ATA .”

– DA N I E L K E Y S M O R A N , A M E R I C A N C O M P U T E R P RO G R A M M E R AND SCIENCE FICTION WRITER “ I T I S A C A P I TA L M I S TA K E T O T H E O R I Z E B E F O R E O N E H A S D ATA .

I N S E N S I B LY, O N E B E G I N S T O T W I S T T H E F A C T S T O S U I T T H E O R I E S , I N S T E A D O F T H E O R I E S T O S U I T F A C T S .”

– S H E R LO C K H O L M E S “ D ATA A R E B E C O M I N G T H E N E W R A W M AT E R I A L O F B U S I N E S S .”

– C R A I G M U N D I E , S E N I O R A D V I S O R T O T H E C E O AT M I C R O S O F T “ D ATA M AT U R E S L I K E W I N E , A P P L I C AT I O N S L I K E F I S H .”

– JAMES GOVERNOR, CO-FOUNDER OF REDMONK, T H E F I R S T O P E N S O U R C E A N A LY S T C O M P A N Y “ T H E G O A L I S T O T U R N D ATA I N T O I N F O R M AT I O N , A N D I N F O R M AT I O N I N T O I N S I G H T.” – C A R LY F I O R I N A , F O R M E R C H I E F E X E C U T I V E O F H E W L E T T- P A C K A R D “ I N G O D W E T R U S T. A L L O T H E R S M U S T B R I N G D ATA .”

– W. E D W A R D S D E M I N G , S TAT I S T I C I A N , P R O F E S S O R , A U T H O R , L E C T U R E R , A N D C O N S U LTA N T “ Y O U C A N U S E A L L T H E Q U A N T I TAT I V E D ATA Y O U C A N G E T, B U T YO U S T I L L H AV E TO D I S T R U S T I T A N D U S E YO U R O W N I N T E L L I G E N C E A N D J U D G M E N T.” – A LV I N T O F F L E R , A M E R I C A N W R I T E R A N D F U T U R I S T vol 5

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DATA S I Z E S 1 MEGABYTE (1,024 kilobytes) 1 book

BYTE 1 letter

1 GIGABYTE (1,024 megabytes) 1,600 books

human 1,7 m

BIT (1/8 byte) 1/8 of a letter

1 P E TA B Y T E (1,024 terabytes) 1,600,000,000 books

1 EXABYTE (1,024 petabytes) 1,600,000,000,000 books a alto leade r s’ i n si g h t

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vol 5

Burj Khalifa 828 m

Big Ben 96 m

1 TERABYTE (1,024 gigabytes) 1,600,000 books

B I G G E R T H A N B I G DATA

Y O T TA B Y T E (1,024 zettabytes)

Z E T TA B Y T E (1,024 exabytes)

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ILLUSTRATION JARKKO HYPPÖNEN. SOURCE (PAGES 36 & 39): ADEPTIA, BIG DATA FACTS. ADEPTIA.COM

GOOGOLBYTE (theorized, 10 + 1000’s bytes)

C O M PA N I E S B Y E S T I M AT E D N U M B E R O F S E RV E R S

KEEPING IT COOL

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The performance of world’s largest server farms is typically limited by the performance of the data center’s cooling systems and the total electricity cost, rather than by the performance of the processors. According to some estimates, for every 100 watts spent on running the servers, roughly another 50 watts is needed to cool them. For this reason, the siting of a Server Farm can be as important as processor selection in achieving power efficiency. Iceland, which has a cold climate all year as well as cheap and carbon-neutral geothermal electricity supply, is building its first major server farm hosting site. Fiber optic cables are being laid from Iceland to North America and Europe to enable companies there to locate their servers in Iceland.

Other countries with favorable conditions, such as Canada, Finland, Sweden and Switzerland, are also trying to attract cloud computing data centers.

“Of course the investment climate may put companies off the idea of investing many years into the future.”

ment. Top management should be able to make use of data analytics in tactical decisions.”

In the big picture, strategy, new conquests.

“A few years ago, a major Finnish consultancy firm said that it doesn’t even try to sell tactical big data technologies to Finnish companies, as they were still preoccupied with using it on an operational level. I do believe change is on the way”, says Schildt.

“Avoiding a simple thought pattern of “show me the money”.

Instead of short-term gain, companies would look to big data as a tool for long-term decisions.

“Of course the investment climate may put companies off the idea of investing many years into the future”, Schildt admits.

But he does promise good things to those daring companies that invest in tactical data mining.

“Data analytics can be divided into first, second, and third generation big data.The first generation optimized routine decisions to create cost savings.

Second generation big data enabled completely new types of business models, such as Facebook and Google advertising. Or Trip Advisor, which centers its business on traveler reviews. Big data enabled seeing and building completely novel business types.”

And the third?

“The third generation moves from numbers to cracking text”, says Schildt.

“Cracking text data can for instance involve real-time analysis of Twitter data, and a possibility to create concept maps of the company and competitors. How do people talk about a competitor’s products? What tone do they use when discussing your products?”

Big data generated from text is even more chal-

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lenging than numerical data, as numbers rarely involve hidden meanings.

“Numbers are easy, text really tricky”, says Schildt. “Algorithms aren’t particularly good at detecting irony.”

True: numbers are clear on whether results are good or bad, whereas it is not immediately apparent whether a customer’s comment “Good job, British Airways” posted on social media is meant as praise or irony, in other words criticism.

“However, text analysis does offer huge potential, especially when thinking about all the new, free text data masses continuously available. Data cannot be used at face value, but data analytics tools uncover a great deal.”

T

he faster pace at which big data is gathered and diversifying data forms – in addition to numbers and text, the world is flooding with video material captured by individuals on their cellphones – lead to figures that are even harder to fathom.

For example: As mentioned earlier, the current estimate of data gathered around the world each day is 2.5 quintillion bytes, and it is estimated that 40 zettabytes of data will be created by 2020. To clarify: four years ago, the entire World Wide Web totaled 500 exabytes in size – i.e. 5 billion gigabytes, or half a zettabyte.

In other words, the 40 zettabytes looming in four years’ time is the equivalent of 400 billion gigabytes.

As the amount of data grows, also data management tools become more widespread. A great deal of what was pioneering data mining a decade ago is now easily and freely available to anyone.

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As business processes create big data, companies need innovative managers and other professionals who are able to systematically examine that data.

“The main change hasn’t been in what you can do with data, but in the price of data mining tumbling down”, Professor Schildt assesses.

“An airline recently announced that it was about to acquire data warehousing solutions from a specialist company at a value of EUR 3 million, but a few years down the line chose an equivalent cloud-based service for EUR 200,000. Highly sophisticated data mining can now be carried out with software that is completely free.”

In other words, anyone can mine data – it is more a question of who knows the questions to ask the data, and comes up with the best or most optimal interpretations. Big players in the field have already averted their gaze from simple number crushing to advanced text analysis.

“IBM is one of the companies to invest in text data. Prices will be coming down and a great deal of open source services will be available also in that area”, Schildt predicts.

The professor encourages companies to look beyond short-term financial optimization, and aim for wisdom for strategic questions. He also advises to make use of development trends in data mining. Processing numerical data is cheap and sometimes even free, and good to use where it makes practical sense (“analytics is a quick method for improving people’s bad decisions”).

“Polarization will take place. Basics that don’t take great understanding will be completely automated in areas with huge amounts of data that people simply cannot understand. Machines will do the job more efficiently and cost-effectively.

But as data automation spreads, also a need for genuine understanding and expertise becomes more prevalent.”

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In-depth utilization of big data – “data-driven decision-making”, nevertheless led by visionary individuals – can result in completely new innovation. Schildt mentions online bookstore Amazon as an example, which began to put both customer purchase and search data to use. Users were after all revealing a great deal about their needs even without buying!

“This is where things should be heading. People need training in it. As business processes create big data, companies need innovative managers and other professionals who are able to systematically examine that data and identify ways to improve how the company operates and even what its goals are.”

‘B

ig data is over-hyped.”

Dr. Jussi Keppo’s words startle – especially, as he utters them during his lecture entitled Leading with Business Analytics at Aalto Executive Summit.

Finnish-born Keppo is an Associate Professor who teaches risk management and business analytics at the National University of Singapore. He thinks there is too much hype around data masses – at least as far as size is concerned.

“Good data is the main thing. It’s better to have good data than big data. A company that uses the right information the right way makes the right decisions. How to find good, suitable data is a more difficult question.”

Here Keppo thinks along the same lines as Schildt: “It’s so easy to acquire big data these days, but whether you can use it is a totally different matter.”

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THE FUTURE Increased usage by companies. A 2014 study found that 94% of organizations either already are or want to make cloud computing a part of their operations.

Increased focus on security. Theft of intellectual property is the primary security threat.

Cloud technologies and increased usage of private cloud computing. Currently 7% of companies use entirely private cloud computing, while 58% use some combination of private and public cloud computing.

Increased education and employment related to cloud computing. In a survey, 42% of US and UK organizations reported having hired IT professionals because of particular skills related of cloud computing, while 43% reported difficulty in finding candidates with necessary cloud computing skills.

THE PRESENT Today, more than 2.5 exabytes (2.5 billion gigabytes) of data is generated every single day.

This is expected to continue growing at a significant rate with mobile devices accounting for much of this data. Some experts have estimated that 90% of all of the data world today was produced within the last two years.

T H E PA S T Digital storage grew annually by 23% between 1986 and 2007. Most data was stored on videotapes such as VHS cassettes in the pre-digital revolution world of the late 1980s. Paper-based storage represented 33% of all data storage on its own in 1986. 25% of all data stored in the world in 2000 was stored digitally.

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2,5 0 0 0 0 0,0 0 0,0 0 a alto leade r s’ i n si g h t

· 40 ·

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0,0 0 0, 0 0 0,0 00 T H E A M O U N T O F D ATA I S G R O W I N G E X P O N E N T I A L LY. T O D AY, O U R B E S T E S T I M AT E S S U G G E S T T H AT AT L E A S T 2 . 5 Q U I N T I L L I O N B Y T E S O F D ATA I S P R O D U C E D E V E RY D AY ( T H AT ’ S 2 . 5 F O L L O W E D B Y A S TA G G E R I N G 1 8 Z E R O S ! ) . L O O K I N G F O R W A R D , E X P E RT S N O W P R E D I C T T H AT 4 0 Z E T TA B Y T E S O F D ATA W I L L B E I N E X I S T E N C E BY 2 0 2 0 . T H R E E Y E A R S AG O, T H E E N T I R E W O R L D W I D E W E B I S E S T I M AT E D T O C O N TA I N A P P R O X I M AT E LY 5 0 0 E X A B Y T E S – W H I C H I S 5 B I L L I O N G I G A B Y T E S , B U T O N LY H A L F O F O N E Z E T TA B Y T E ! 4 0 Z E T TA B Y T E S I S , THEREFORE, 400 BILLION GIGABYTES!

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Traditionally, a thinking prevailed that only top executives had the need and the ability to analyze and use data.

Keppo sees the generational gap as the biggest bottleneck in using analytics. Boardrooms continue in the hands of baby-boomers, decisionmaking ignoring those with genuine knowledge about data analytics.

“At the moment, the top executive level is represented by our generation and older. We think we know our stuff, and we can hold on to power by keeping decisions in our own hands. But you have to be dynamic in today’s world, rather than thinking that some executive board makes all the decisions. They are not even aware of all the data and analytics opportunities that exist lower down.”

“An organization doesn’t necessarily have to be flat, but in order to fully utilize data analytics in today’s dynamic competitive landscape, decisions need to be made on every level.”

At a coal mine, you need to listen to those working underground, and in extracting oil, employees with experience of life on an oil rig need to be heard.The same goes for data analytics: more decisions should be left to those with the best knowledge of the data and analytics. Many times these employees know the current situation better than top executives because they have the data and skills to analyze that.

Or at least decision-making should involve listening to those who understand the gathered data.

Big data requires a new mindset from managers.

To grasp this, let’s return to Professor Schildt, who has spent a great deal of time examining the theme. Last summer, Schildt drew attention with his article on a “culture of secrecy” that still prevails in companies.

Although good reasons like data leak risks and privacy protection exist, usually the reasons for

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secrecy are selfish. Knowledge is power, and power makes life easier. In his time, Italian Renaissance philosopher and statesman Niccolo Machiavelli advised leaders to conceal the reasons for decisions in order to avoid their wisdom being questioned. The more information spreads, the more leaders need to justify their decisions”, Schildt wrote in his article for financial online publication Taloussanomat.

He sums up the called-for change in one word: “Transparency.”

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data overload demands transparency, also internally. Managers can no longer hide behind the data they govern.The old saying “knowledge is power” is just that, an old saying.

“This requires a major cultural shift in a lot of companies, which bosses may see as a threat. Traditionally, data analytics tools, for instance, were only available to a small circle in a company. A thinking prevailed that only top executives had the need and the ability to analyze and use data.

Nowadays, tools and data need to be shared with everyone. Everyone on every level needs to be able to use it.”

A cultural shift means both transparency and trust. The principle is in fact logical: in reality, there are less secrets, so confidential data ending up in the wrong hands poses a smaller risk. However, your rival knowing how to process its own or generally available data in a smarter way than you is a real threat.

All competence on all levels needs to be harnessed into this competition.

“Of course analytics involves major ethical questions”, Professor Schildt admits.

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Y L O TO I N U T N O IV F E V R I SI E W T

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P

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TO P M A N AG E M E N T M U S T D E C I D E W H AT B I G DATA M E A N S F O R T H E I R C O M PA N Y Associate Professor Henri Schildt

H

aving a long-term perspective to creation and use of data assets is a central part of any digital strategy. Among the first things you hear from managers who deal with big data in their daily work is that the size does not mean value. The value of data derives from its use; sometimes you have to deal with big data, but smallish data can be just as valuable.

Much of data use relates to function-specific technical questions, but managers must think how the data will shape work roles and organization.

W H AT DATA TO B U I L D ?

High-quality data assets are strategic resources that determine the ability of the firm to optimize its business processes and develop new services. Netflix, for example, collects data on the exact time if consumers close their browser midway during a TV show. This data creates valuable feedback loop for learning and further development of Netflix TV products. Finnish company Walkbase enables retailers to track how often consumers visit their stores and how long they stay. Such data allows retailers to learn about the effectiveness of their store design and product assortment.

High-quality datasets can be expensive to build, but can be easily leveraged for a number of strategic initiatives once they exist. The data resources that a firm builds shape its strategic direction. Access to a larger number of data sources that can be combined together increases the range of strategic options. Managers should proactively look for potential partnerships and

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deals that enable access to valuable external data sources.

H O W W I L L T H E W O R K RO L E S E V O LV E ?

Big data systems have direct impact on the work roles in the firm. IT allows greater collection and analysis of process and performance data, increasing the number of subordinates a superior can effectively manage. At the extreme end, employees in low skill roles are becoming managed (monitored, mentored, and compensated) by algorithms rather than humans (for which Amazon, Deliveroo, and Uber have gained notoriety).

As data allows more decisions to be automated, some human skills will inevitably lose value and become redundant.

On the other hand, big data tools can boost individual productivity in a variety of roles. Big data tools enable professionals to detect and implement potential improvements and to receive more precise and useful feedback on their work. Although corporate analytics teams or centers are useful, the analytics need to be understood and used in various levels of the line organizations and in an increasing number of functions.

It is a good idea to develop a shared understanding of future changes in work roles. When some tasks become routinized and automated, the transitions of skilled employees be more demanding roles should be planned ahead to avoid redundancies. In other roles,

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companies should plan ahead required training in analytics skills so that employees can take advantage of insights provided by data analytics.

H O W S H O U L D W E O RG A N I Z E ?

New reporting tools allow management to rethink their internal and external boundaries. A key advantage of big data systems is their ability to produce an objective view of customer-oriented processes and their performance. Sharing this view across teams and even with subcontractors and customers can have powerful benefits. By synthesizing a variety of data from business units and digital channels, firms can better understand how customers experience their

services. Unfortunately, when the company lacks a culture of collaboration, a greater transparency across teams and business units can easily descent into politicking, blaming, and scapegoating.

In a world of big data, where anyone can run analyzes to identify your every failure, companies must learn to become more collaborative and more tolerant towards failure. In leveraging big data, it helps if managers can get the members of the firm to proactively monitor business processes and collaborate across units to improve them. Big data systems thus provide an opportunity and an incentive to rethink old function-specific metrics and compensation systems.

Henri Schildt is a tenured Professor with a joint appointment at the Aalto University School of Business (Management & Organizations) and the School of Sciences Department of Industrial Engineering and Management.

“Customer and patient information require high ethical standards on data processing. It’s also important to remember that numbers aren’t reality, they just describe it.”

But even in problematic ethical questions, personnel should be approached with confidentiality, trusting that your competent employees know what to do with the data.

“Some American startups of course do first and ask later, which has its problems, too. When you head technology first and see what you can do, you wind up in problems.”

Schildt intentionally chooses the world “capability”. It is a future competitive advantage. An understanding of ethical perspectives is necessary for harnessing data wisely and efficiently in decision-making and day-to-day business.

An alternative recipe for success no longer exists.

Professor Schildt mentions two competing grocery retail chains, which practically shared the

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domestic market. One of these made use of its own big data, customer information on each purchase from loyalty cards, in its decision-making and business development. The other chain took its time, as it feared how customers would react if they used the data.

The faster chain had taken its lessons from the U.S, where for instance the transformations of Walmart and Target are seen as success stories in big data. Walmart was the first to offer customer data to product manufacturers.This way, information on product performance in stores was able to boost product development processes.

In the case of the two grocery store chains, it is quite obvious how the story ends. The chain that was slow on the uptake has conquered its fears by now.

The rivals are now engaged in a frantic data mining duel. ◆ This article in Finnish online: www.aaltoee.fi/blog

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BOOK 2 [ PROFILE ]

DIRECT D U TC H D U I N H OV E N When Susan Duinhoven was given the mission of getting Sanoma through its crisis, she began with her usual method: first looking at the figures, then hearing out the organization. “After interviewing a hundred employees, you know all there is to know�, the CEO explains.

Journalist Annukka Oksanen met with Duinhoven in Helsinki.

Photography Touko Hujanen.

I

t is 7.30 on a Thursday morning, and the short stretch of Ludviginkatu street in the center of Helsinki is deserted. The wind rustles through some litter on the pavement, and the staff of restaurant Grotesk on the corner of the street have not turned up to work yet.

Grotesk was named after the letter font as a tribute to the history of its location; it is housed in the former premises of Finland’s biggest daily newspaper Helsingin Sanomat. The newspaper’s predecessor, Päivälehti, was founded to promote the cause of liberal Fennomans in 1889, at a time when Finland was still part of Russia. For decades, the rumble of printing machines echoed from the cellars, while youngsters stood at the street corners ready for their newspaper round.

The street lived and breathed events in Finland and the rest of the world.

Over the years, the newspaper began to turn into a media empire, with newspapers, radio stations, television channels, magazines, and publishing activities in several different countries. At present, approximately half (EUR 830 million in 2015) of Sanoma’s EUR 1.7 billion turnover derives from magazine and television operations in the Netherlands and Belgium. Finland’s Sanoma Media (EUR 573 million) is the second key market, while with its focus on learning materials, smaller Sanoma Learning forms the third main area (turnover of EUR 281 million).

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oday, in addition to Restaurant Grotesk, only Päivälehti Museum, a media museum run by Helsingin Sanomat Foundation, serves as a reminder of Sanoma company’s past along Ludviginkatu street. Former Helsingin Sanomat premises are now home to new companies: a PR firm, and a real estate company that rents out office spaces.

A tall and slender silhouette crosses the street in the distance – Sanoma’s Dutch CEO Susan Duinhoven (b. 1965).

“It’s a luxury to be able to walk to work”, says

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Duinhoven, who lives nearby. We have agreed to walk together to her workplace Sanomatalo, an imposing glass building close to Helsinki’s main railway station.

Sanoma commissioned the glass construction during the height of its reign in the late 1990s, when the media empire was in dire need of larger, more modern facilities. Sanomatalo building serves as a hub for daily newspaper Helsingin Sanomat, tabloid paper Ilta-Sanomat, and online financial publication Taloussanomat, as well as houses Nelonen Media broadcasting group, Sanoma Digital consumer media company, and Sanoma’s commercial operations and headquarters.

As a media company, Sanoma has enjoyed an exceptionally strong status in Finland. Similarly to other Nordic countries, Finns are eager subscribers to newspapers, and even in these digital times, the newspapers’ own websites are by far the most popular way to stay up-to-date with the news.

The situation in Finland is in contrast e.g. with the U.S., where people mainly read news via social media. Sanoma’s publications are meant for everyone.

S

usan Duinhoven took to the helm of Sanoma in October 2015, after CEO Harri-Pekka Kaukonen was asked to step down. In July, the company had issued an unusually severe profit warning: “Sanoma will not meet its outlook for 2015. As a result, Sanoma is also withdrawing its mid-term (2016) outlook published in February 2014.”

Duinhoven was invited to join the Board of Directors in early 2015, after giving up her position at Dutch media company Wegener. Belgian media company De Persgroep had acquired Wegener in the beginning of 2015.

“I don’t usually agree to board membership, as I thrive in operational management, with my hands deep in the clay”, says Duinhoven. “But I was interested in Sanoma, and didn’t have a day job at the time, so had enough time to familiarize myself.”

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Times change, and sometimes companies fail to keep pace.

When that happens, movers and shakers are brought in from the outside – like Duinhoven.

Duinhoven joined the board a few months down the line. She was surprised to discover how rapidly profitability had taken a turn for the worse.

“It was clearly going downhill. It did come as a bit of a surprise to me, but the challenges were familiar.” Duinhoven refrains from analyzing Sanoma’s past, as management’s strategic decisions always depend on each situation at hand. But she does go on to say that, due to its strong market position, Sanoma has survived longer than other media companies by selling off chunks of its balance sheet, such as kiosks in Latvia and book printing operations in Finland. The list of divestments, or sold assets, in recent years is long.

“In other media markets with tougher competition, companies were hit sooner and harder.The world has changed a great deal. Fifteen years ago there was no Google”, Duinhoven explains, mentioning the Dutch media market as an example of tough competition.

Taking the lead of a company at a moment like this means a lot is expected of Duinhoven. This is nothing unusual as such; media companies throughout the world are in demand of change leaders. Sanoma, too, seems ripe for change.

Duinhoven is a classic example of a contemporary director of a media company. Neither gentle or high-handed mother and father figures, these are transformers all set to shaking things up, with tricks up their sleeves from the venture capital world. Saving a company takes resilience, sharp insight, and execution skills. You need to be able to divest, eliminate, and overlook some of the grumbling of employees. It is also important to be able to provide inspiration and boost innovation.

Both Duinhoven and her predecessor Harri-

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Pekka Kaukonen have a background with global, top-ranked consulting firm McKinsey.

Traditionally, media companies have been family-owned businesses, with owners patient enough to see their firms even through tough times. For a long time, media publishing has been seen as something unique, as it comes with the notions of freedom of speech, the Fourth Estate, and guarding democracy.

But things are different now. In the case of Sanoma, the grip of family Erkko has loosened, and the company now has the identity of a purebred publicly listed company.

S

usan Duinhoven is a fast mover and fast talker, but despite chatting away, her every word counts. She is quick, direct, and clearly happy to answer in the first place. So, how does a change leader begin to outline the strategy?

“I always follow the same method. I start with the data. Numbers need to be examined thoroughly in order to understand why the company is in difficulty. They also reveal what needs to be held onto during the change process”, Duinhoven begins.

For the purpose of this interview, we are sitting in a small meeting room on Sanomatalo’s second floor. “A company always has assets that need to be preserved. Usually, some of these are different to what people list when asked what should be kept.”

“Typically, people will say: “Oh, this is really important to us”. Then I take a look… yeeesss… it has certainly been invested in, but doesn’t seem so relevant for the company any longer.”

Times change, and sometimes companies fail to

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keep pace.When that happens, movers and shakers are brought in from the outside – like Duinhoven.

“You need solid background knowledge before analyzing. My experience at McKinsey may explain my method.”

After cracking the numbers, Duinhoven moves on to interviewing her immediate subordinates and employees reporting to them, which takes about 4–6 weeks. Usually, she conducts 100–120 interviews depending on the size of the company.

“I test my hypotheses on them, adjusting ac-

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cordingly”, Duinhoven says. “After a hundred interviews, you know what there is to know. People have told you what the problem is. The organization knows – it just doesn’t always know how to get moving.”

After the round of interviews, Duinhoven spends a couple of weeks fine-tuning the strategy.

At this stage, she blocks her ears from others to keep her views crystal clear. This phase might contribute to her reputation as a tough changeleader.

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“Every company has its past. I’m a pragmatist, and an outside view can bring relief in a situation like this.”

“Then it’s all about the implementation.”

Duinhoven is renowned as an analytical, determined, and tough implementer. Before her current position, she and her team prepared the Dutch Wegener media company for sale.

“After making initial changes, I get an idea of the organization’s transformation skills, and see what type of change resistance exists. Despite the change resistance, usually everyone knows what needs to be done. People are just caught in the old structures.”

This was the case also at Sanoma. She was first seen as tough, everyone knowing for sure the same old patterns could not continue. At the same time, everyone was aware it would take more than some minor adjustments. The CEO listening to her employees and seeming to know what she was doing made people feel safe.

Duinhoven is undaunted by Sanoma’s impressive past that is entwined in Finnish history: “Every company has its past. I’m a pragmatist, and an outside view can bring relief in a situation like this.”

Duinhoven does not seem preoccupied with her image, nor needs to soften edges. She is not as interested in reputation as she is with doing her job as well as possible.This self-reliant personality does not worry about what others think on the whole. When asked about her hobbies, she mentions reading, although: “I really don’t go for anything highbrow – John Grisham, Lee Child, and biographies.” Her statement is unconventional to say the least in an industry characterized by a dose of cultural snobbery.

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edia companies are textbook examples of firms operating within structures shaped

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by an outdated business model. The old business model waning without knowledge of a new one adds its extra spin to the shift that is taking place.

The former earnings logic based on advertising sales and subscription fees, which in the height of its day was more or less a moneymaking machine, simply no longer works as well it used to. Something has to be done. Duinhoven faces plenty of challenges, with dramatic changes taking place in the advertising market this year that has also seen Finnish advertising funds quickly disappearing into the pockets of Facebook and Google.

“The hybrid stage is definitely the toughest.

And right now we’re in the middle of it”, Duinhoven states. What she means is that print media continues to prevail, while at the same time media companies need to put all their energy into digital media, which is where the growth is.

This is the case despite revenue from the digital side not being enough yet to compensate lost income from the printed media. There are signs, however, that the digital revenue is beginning to gather pace.

“Two, three years is a long time in this industry.

Thinking ahead too far is a waste of time, as no one knows what the future brings. Already drafting next year’s budget is a challenge, as the industry changes so fast. We need to monitor our customers, and we are highly dependent on outside trends. ” The importance of customers is one thing Duinhoven is sure about. She wants to understand the fickleness of customers – which include both media content consumers and advertisers – as well as possible.

Everything else is uncertain, which suits Duinhoven just fine: “The plan may be clear, but it

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“I told the board that if this isn’t what you want, don’t hire me.

I can’t implement someone else’s thinking.”

needs to be revamped every three months.” Uncertainty also creates possibilities and Duinhoven certainly sees media as a successful business of the future.

D

uinhoven has a sip of water, and gets visibly excited when she begins to talk about mistakes every leader makes, including herself.

“I tell each company that if I’m an excellent change leader I might get 70–75 per cent right, while a margin of 25 per cent potentially goes wrong. But if I do nothing, 100 per cent goes wrong.”

According to Duinhoven, change processes cannot and should not be democratic.

“The change wouldn’t progress, and you have to act fast in these situations.You cannot stand still in a changing world.”

Duinhoven mentions that leaders are usually scared to admit they are wrong. “But it’s not hard.

It’s something the organization values, and helps reach the goal.”

Duinhoven’s willingness to discuss views with employees came as a surprise at Sanoma. But she does not have patience for mindless babble though: “I don’t react well when someone tries to convince me without facts. I tell them to go and talk to someone else.”

Duinhoven does understand the media’s change resistance, as the industry is so dependent on processes.

“A paper needs to be in print at 10 pm each night. If I was responsible for that, and someone came to say let’s give this a shot, I’d tell them to

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go and play somewhere else. I can’t tell them to do this because it’s what I want. I’d only get ‘why’ as an answer.”

When changes needed to be communicated at Wegener, Duinhoven suggested that the company’s business journalists interview management.

“They are used to challenging and digging out answers under pressure. Media firms have an advantage of smart, highly educated employees.”

“I try to communicate to the organization that creativity needed in product development can also be applied to the company’s processes. It’s not like there is a nice product development section, and less appealing cost section. They are one and the same.” In a media company, product development usually involves new digital products, while cost reduction areas are often seen as the production of traditional newspapers and related resources.

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ruits of Duinhoven’s strategy were already reaped last summer: since early October 2015, shares had gone up by 146 per cent by mid-August 2016. Just to compare: during the same period, the OMX Helsinki Index was up by 8.5 per cent.The improvement in the July interim report results came as a positive surprise to investors. Just a year before, the ugly profit warning meant Sanoma had tumbled into a crisis.

“Things become more flexible when the figure under the line improves”, Duinhoven notes with an air of satisfaction. “This gives us time. Now, we have more time to adjust our processes, monitor customers, and implement our Suunta transformation program. We are also able to invest.”

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Typically for a business going through tough times, the prevailing trend in media has been to cut, divest and save.

“Investments have been part of the plan all along”, she remarks.

Media companies undergoing strategy renewal have typically been chopped up. British Pearson is a recent example, which sold off its crown jewels Financial Times and The Economist. In 2017, Pearson may well be doing away with publishing company Penguin Random House, leaving only learning materials behind.

Sanoma, too, has its learning material department. Sanoma Learning, Sanoma Finland, and Sanoma Benelux do not share much in common.

“The search for synergies was in fact more expensive than the synergies that were found”, the CEO says.

“Learning and media is perhaps a logical combination for the company atmosphere, but there is no synergy there. Similarly, the media markets

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of Finland and Holland have very distinct structures, without much at all in common.”

These thoughts are likely to cheer up many at Sanoma, who have tried in vain to detect synergies, as it is the done thing these days.

“We have IT and big data in common. That’s something, but is it sizeable enough? Data needs to be country-specific, so that it is close to the customer.”

Duinhoven’s open, straightforward reflections are a breath of fresh air compared to what we so often hear from directors. In her words, she is “direct Dutch”.

“I don’t work according to a strict mandate, which would prevent from going through the process in an honest manner. In fact, I told the board that if this isn’t what you want, don’t hire me. I can’t implement someone else’s thinking. Or perhaps I can, if it is good and I happen to agree, but never against my own judgment of the situation.”

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DOUBLE RARITY: WO M A N A N D F O R E I G N E R

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t the helm of a Finnish publicly listed company,

listed companies will rise to 32 per cent this year.

Susan Duinhoven from the Netherlands is doubly rare: a woman and a foreigner.

The vast majority of directors of Finnish listed companies are male, which is a typical feature in small countries. “The same is true in the Netherlands”, Duinhoven states. According to an EU Commission report, only 5.1 per cent of directors of the largest publicly listed companies are women (April 2016). The EU statistics for Finnish companies amount to zero, as the statistics only include the largest publicly listed European companies. In summer 2016, in addition to Duinhoven, four Finnish listed companies had female managing directors, but the companies are too small to be included in the EU statistics. Outside the European Union, the share of women directors is just as modest; 4.4 per cent of S&P 500 company directors in the U.S. are women (summer 2016), perhaps most famously Mary T. Barra from General Motors, while 5.5 per cent of London stock exchange FTSE 100 company directors are women. Commensurate information from different countries is hard to attain, as companies have been included in the statistics on slightly differing grounds, and in part the figures apply to different time periods.

The boards of publicly listed companies demonstrate a slightly higher proportion of women than in the case of top management. Board membership is indeed one path to becoming a managing director.

23.3 per cent of the board members of the largest publicly listed companies in the EU are women (April 2016).

Finland Chamber of Commerce estimates that the share of women in the boards of Finland’s largest

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In other words, the glass ceiling has been broken, but has not yet been completely shattered.

In addition to the glass ceiling, the glass cliff is another term commonly used when discussing equality. Studies carried out at the University of Exeter in the early 2000s discovered that women are more likely to be appointed as directors in companies that are struggling or facing a crisis – in other words, where the director is less likely to succeed. The term was coined by professors Michelle Ryan and Alex Haslam of University of Exeter, United Kingdom.

The phenomenon also applies to politics, such as when conservative Theresa May became Prime Minister of the United Kingdom following the Brexit vote.

Female directors are more likely to hail from outside the company compared to their male counterparts. They are also prone to harsher criticism, another feature of the glass cliff. The phenomenon has been explained by companies facing a crisis having a type of mandate to appoint a woman director, which in itself is a signal for change as opposed to the standard option, a man. In Japan, crisis companies are more likely to appoint a foreigner as director, albeit male. Of course this is an alternative – but a short-lived one.

The failed “alternative” crisis manager is usually followed by a male director from the home country.

As a result, men are appointed as directors more frequently when a company is on an upswing.

After the “alternative director” has failed, the situation stabilizes once again in the hands of a man. This in turn hampers the escalation of women as directors, and once again nearly half of the population receives a blind eye as the next bright star is being sought.

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“It’s easier to stick to the facts, when I’m not completely immersed on the inside. It allows me to ask questions nobody else would ask.”

Half of the turnover of the company she leads originates from a product with its core in the Finnish language.

“It’s really irritating not to be able to read the Helsingin Sanomat. Of course I can look at the pictures and see if they convey enough emotion.

Then again it’s not me who leads Helsingin Sanomat, but Editor-in-Chief Kaius Niemi. My job is to help directors in change processes, ask the right questions, analyze the answers, and comment in case of inconsistencies.”

“It’s easier to stick to the facts, when I’m not completely immersed on the inside. It allows me to ask questions nobody else would ask. Besides, half of the company operates in Holland and Belgium.”

O Duinhoven was recruited by Sanoma’s chair Antti Herlin, whom she praises for being a “direct communicator”. In her opinion, Finns on the whole “say what they mean, and do what they say”. Currently, Antti Herlin is the largest shareholder of Finland’s most prominent company Kone, and occupies the top spot in the Finnish business world.

Duinhoven thrives in the Finnish corporate culture, which, similarly to the corporate culture in her native country, is genuine, straightforward, and low on hierarchy. It would be hard to imagine her in a very elaborate culture.

“Combining cultures can after all even be catastrophic.”

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ur chat on a Thursday morning is nearing its end. By now, the summer sun glistens high up in the sky, and the building has gradually filled up with people. It is time for Duinhoven to change-manage her employees, despite the future being unclear.

She begins her ascent up the stairs to the top floors of the building without glancing behind.

There is no way back to the shining past along Ludviginkatu street. Here, the company’s struggle in the hands of a media crisis is evident in editorial staff now occupying two floors instead of three.

The future of media and Sanoma may be unclear, but it suits Duinhoven just fine. ◆

This article in Finnish online: www.aaltoee.fi/blog

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CAREER TURNING POINTS: D U I N H O V E N ’ S PAT H TO P R E S I D E N T AND CEO OF SANOMA

S

usan Duinhoven’s career began in the lab of Dutch conglomerate Unilever, where she worked on her PhD in chemistry. Chemistry was her subject of choice because she wanted to study “something difficult and complex”.

“I was interested in natural sciences, and chemistry covers a whole range from mathematics to medical applications. I ended up delving into the more mathematical end of the spectrum – theoretical and physical chemistry.” From the lab, Duinhoven moved internally to the business side. After six years at Unilever, Duinhoven was approached by McKinsey. She considers her experience in consulting as the first major turning point in her career.

“I was fascinated by getting a new problem to solve every three or four months. I learned a great deal about business and management, as my background in chemistry was rather unusual.”

Becoming an owner was the second turning point in Duinhoven’s career; together with partners, she acquired the Dutch Yellow Pages business from Dutch Telecom. After the acquisition in the middle of the

“In my mind, power, as a word, always seems to be somehow linked to its misuse. I haven’t aimed to become CEO as such. On the other hand, I do appreciate the position, as it allows you to set the pace and process.”

“I love jigsaw puzzles, and this is a giant one. I have always looked for harder and harder puzzles to solve”, Duinhoven states when asked about Sanoma, which has a turnover of approximately EUR 1.7 billion.

Her career choices have been determined by the level of challenge and interest.

“I have no idea what I will be doing in a few years.

It is easy to see from my CV that I haven’t made career plans as such, but gone for roles that I found interesting. I hope I will be doing what I enjoy also in the future.”

“The field has to be relevant in some way, and Sanoma fits into that box”, the CEO describes.

When you think about what is going on in Turkey, it hits you hard. You want to make sure independent media continue to exist.”

Duinhoven lives by herself, and spends about 90

month, she describes the enthusiasm, excitement, and responsibility involved in having to gather enough revenue to pay the salaries of 600 employees by the end of the same month.

Duinhoven has also been managing director at Yellow Pages in Denmark, Thomas Cook West Europe in Denmark, and Reader’s Digest in the Netherlands.

She joined Sanoma after being CEO of Wegener publishing company.

per cent of her time in Finland. She also has a house in the Netherlands, visiting her home country every couple of weeks. Splitting her time between two countries is nothing new to her, but something she has done for a long time.

Duinhoven has had a taste of Finnish life for instance by learning to cross-country ski in Paloheinä, Helsinki.

“According to the instructor, I had no skills but a steady balance. I thought that at least that’s some kind of compliment”, she smiles, adding that her balance derives from Dutch national pastime, skating.

When asked about power, Duinhoven ponders for a moment. She sure has it, as CEOs always do.

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BOOK 3 [ BEST PRACTICE ]

G ROW I N G PA I N S A fast-growing startup may turn into its founder’s worst nightmare – just another ordinary company. How to run a startup without growth getting in the way of passion and creative chaos? Journalist Reetta Räty chats with Senior Advisor Dr. Hans Henrik Lund.

Photographs Touko Hujanen.

Photographer Touko Hujanen spent a day with Finnish startup company Wolt.

DIRECTORS OF A STARTUP NEED TO BE AB

I

n essence, this interview boils down to a single question: How to run a fast-growing startup where the wacky idea of a small group is turning into a stable company?

Dr. Hans Henrik Lund, Senior Advisor at Aalto University Executive Education, has solid expertize in the marketization of startups and change management. He has been a board member and held executive roles in several companies, including Jabra, Nokia, and Microsoft, and definitely the right person to turn to.

So how is it done?

Lund wastes no words: “It is so hard, so damn hard!”

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und lives in Finland, and we have arranged to meet at Aalto EE’s premises along

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Mechelininkatu street in Helsinki. Now we at least know running a startup is extremely difficult.

But why is it so hard?

Hans Henrik Lund describes a typical scenario, where a startup has managed to get through the initial stage. It has a brilliant idea, funding, a great team, and usually also what so often is seen as most important - technology.

“And then they realize brilliant technology alone isn’t enough.You need customers.”

That is the stage when someone should be talking to potential customers, whether businesses or consumers.

According to Lund, often the founders of a startup find this a challenge. “So many proceed in the wrong order.Technology is seen as wonderful – “isn’t this just great?” – instead of thinking about

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LE TO LOOK THEMSELVES IN THE MIRROR. what to offer customers. What do customers need?”

Lund is of the opinion that a startup’s key team needs to constantly critique its own competence.

“You might be the right person to create a mobile app, but are you the right person to pitch it to Apple?”

Directors of a startup need to be able to look themselves in the mirror: Am I the right person for the company’s key task?

D

espite being like other companies, startups are often seen as universes of their own.

Lund feels the distinction is justified in some areas, such as in light of their extremely rapid growth targets, which serves as a common denominator for startups. A startup can also be

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seen as a company’s particular phase, which may evolve after it succeeds and finds a business model.

Leadership during a time of rapid growth is different or at least carries a different weight compared to running a traditional, more established company.

Let’s take competence for example, which Lund touched on.Why would the risk of not having the right competence particularly apply to startups?

Lund believes it is down to their nature.Young companies are led by people who are passionate about their work, product, and idea. They are of course quite rightly excited about their idea, and work hard. But at the same time, they need to be able to move aside, or at least involve others.

“How do you do that to your own baby?” Lund

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“WE THINK TOO MUCH ABOUT TECHNOLOG asks. “It’s not something I’d like to do to my children: give them up to another father.”

Founders of startups are like family members who think they can do the job all by themselves.

But a startup family needs to expand, not just by including friends, but through targeted recruiting, Lund explains.

Being required to look for additional resources when a thousand other things are going on doesn’t make things any easier.

Startup entrepreneurs are all too familiar with the situation.

In connection to this article (pages 66–69), startup entrepreneur Juhani Mykkänen describes how his company Wolt recently hired Riku Mäkelä, former managing director at Slush, to take care of the operational side of Wolt. “We

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needed someone like Riku, who has worked in the best consultancy firms in the world.We simply didn’t have those skills within the company”, Mykkänen says.

Food delivery app Wolt is currently undergoing a strong growth spurt, and needs resources especially in global expansion. “We came to realize that our growth targets are set so high that we can’t simply figure things out as we go. Riku is experienced in areas we are still finding out for ourselves.”

L

und feels startups need a mindset of what was done a year ago no longer being enough.

Companies need new people, more expertise, and new products, while preventing turbulence at the same time. Avoiding formality and rigid processes

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Y, AND NOT ENOUGH ABOUT MARKETING.” is the ideology and working culture of many startups, which also applies to growing organizations.

This can create conflict. Companies think they should be stable, real firms, while aiming for the opposite at the same time.

How, then, can a balance be achieved?

Lund shakes his head and laughs.What was it he said right at the beginning? It is damn hard.

Let’s keep trying. What are the skills startups usually need the most?

“Marketing”, answers Lund without hesitation.

“Especially in this part of the globe”, he claims, referring to Europe.“The U.S. know how to market, they never forget. In fact, it’s the opposite there, it’s all they have.”

Marketing resources can be outsourced or recruited – as long as they exist.

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“Otherwise no one understands what you have.

What is your value proposition? What benefit does your product or service bring to customers?

What makes us the best in the world, and for whom? Who values our product and why?”

According to Lund, despite being vital, these questions are not raised.

“We think too much about technology, and not enough about marketing.”

Lund argues that startups are afraid to choose their target audience.They try to be everything to everyone instead of, for instance, selecting three companies they want to sell to, then sell like crazy!

“If your value proposition resonates with customers, and you keep fine-tuning it by selling and developing, you are sure to win. It might take years, but keep knocking on that door instead of

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“RECRUITING THE WRONG PEOPLE LEADS TO A N trying a bit of everything.You will get the deal in the end.”

Sure?

“Absolutely!”

L

essons so far: When running a startup, it is important to understand what it is you don’t know.

“Also understanding the startup’s growth stages is important; realizing that right now we are going through this phase, which involves taking care of this and this”, Lund adds.

How else can growing pains be prevented?

The second tip: peer support and networks.

“Talk to people who have been in the same situation. Listen to their experiences, mistakes, and conclusions. Build a network.”

Lund continues with a third, important pointer:

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“Don’t panic.You’ll find your way. Don’t allow the speed of things lead to panicking.”

Fourthly, Lund returns to what he calls the main initial problem of startups: a preoccupation with technology rather than focusing on customer needs.

“Instead of pitching technology, pitch its outcome.”

Lund’s fifth idea: Slow things down at regular intervals, forget your operational role, and take time to think about the future together.What will we be like in a year, if we succeed? What will the world look like then? How do we get ready for change?

“Predicting the future is impossible, but you can always think about scenarios, and how they can affect us and we affect them.”

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E ED FOR MORE STRUCTURES AND HIERARCHY.” The sixth element is linked to longevity: Even in the middle of change, certain elements should stay the same even for startups, such as values and the working culture.Those can be constantly kept under tabs.

“Be value-based”, Lund advises. “Stick to an entrepreneurial spirit. Keep it! I would also say: keep the flat organization.”

An organization’s permanent elements – its working culture and values – are directly linked to recruiting: Don’t hire people who need micromanaging. “Recruiting the wrong people leads to a need for more structures and hierarchy”, Lund points out.

One more piece of advice as a reminder that running a startup is a difficult task, yet a unique opportunity:

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Don’t copy the structures of large organizations, but think for yourself.

“A chance to build a company all by yourself is a gift.”

C

urrently airing on HBO, TV series Silicon Valley follows the path of a fictional startup that is turning into a “real company”. The series makes fun of startup clichés with the characters visiting wild toga parties, as they seek funding from freakish business angels.The tech nerds don’t have a clue how to manage employees who only a moment ago were their roommates and pals.

In its over-the-top way, the show illustrates a group of nerds trying to turn into a workplace.

Here are some of their comments: “We need to work like a company or we’ll fail.”

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“IT’S AN ILLUSION THAT STARTUPS WOULD BE W “This isn’t going to work out. Our company doesn’t have any rules.”

“We need to set up an operating culture, if we want to succeed.”

“I don’t think this Scrum works.”

Some long for clear rules and project management tools like Scrum, while others fear it is Scrum and the likes that will destroy the initial idea. This was supposed to be Silicon Valley, a counterforce to corporations!

Hans Henrik Lund is well-acquainted with this pull into different directions from the real world.

He sums up that a startup needs to be aware of areas it cannot bend despite an eagerness to be a low-hierarchy, creative workplace.

“Take all legal stuff for example. It has to be done by the book, just like in more established companies. Otherwise you end up in trouble.”

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Another element you simply cannot invent as you go along is finance.You need to be thoroughly familiar with applicable legislation and rules.

The same goes for IT solutions. “Don’t mess with it”, says Lund.

How about salaries? Startups can have a completely different salary structure compared to more established businesses. At first, they can even be down to voluntary effort.

But Lund goes on to say: “It’s an illusion that startups would be willing to work for free in the long run. It doesn’t work like that.”

People want to find work they are passionate about, but they still need money. ”Working for free is really not good for anybody.”

Also TV series Silicon Valley touches on the

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Senior Advisor at Aalto University Executive Education, Dr. Hans Henrik Lund, talked Aalto Leaders’ Insight about running a startup.

ILLING TO WORK FOR FREE IN THE LONG RUN.” subject. As people begin to quarrel over money, nothing is left of the passion and team spirit that prevailed in the beginning. Conventional contracts and a knowledge of labor legislation are necessary also in industries with a focus on freedom.

T

he ethos of startups is built on an idea of hard work, risk-taking, and the dream of wealth, as well as falling and failing. If you fall, you cannot quit, but you rise from the ashes with a new idea.

Startup stories often follow the pattern of being thrown into the deep end before finally finding a road to success.

In Lund’s opinion, this feature of startup culture is both a blessing and a problem. Nothing is born without passion. In that sense, trial and error

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and a dream of making it big are all a company has.

But passion becomes a problem when you need to stop trying.

Lund talks from personal experience. “The company hit a difficult patch. We didn’t have focus, and things didn’t move on. The company lacked potential.”

But who wants to tell their colleagues, investors, or anyone else for that matter that now is the time to quit?

“Investors keep wishing, and others wait for a miracle, too. Everyone wants to remain hopeful, as endlessly pushing through is the name of the game. But someone needs the balls to say no more money will be invested. Let’s just stop right here.” ◆ This article in Finnish online: www.aaltoee.fi/blog

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S E C R E T S O F A S TA RT U P : 7 + 1 TIPS The spring 2014 edition of Aalto Leaders’ Insight featured the success story of Supercell, when the gaming company’s net worth had rocketed from zero to EUR 3 billion in a matter of three years.

The article on what the startup scene can learn from Supercell’s success was written by Juhani Mykkänen, who was a creative entrepreneur and journalist at the time.

Soon after the article had been published, Mykkänen joined forces with five other young guys to jointly establish food delivery app Wolt.

How well does the advice from the story of Supercell apply now that he has gained his own experience in the management and day-to-day life of a startup?

Juhani Mykkänen responds: LESSON 1: P R AC T I C E “Also in Wolt’s case, a really experienced product team helped, especially as we were all under thirty years old. Our guys had been involved in branding, digital design, and back end systems in different startups. For instance, at best, the Labyrinth game invented by one of Wolt’s co-founders, Elias Pietilä, featured on one in ten iPhones around the world. He knew right from the start: ‘we should have these buttons, not these views, that’s too complicated’.

Wolt’s idea in a nutshell was a food order app.We had no experience or operational skills in the area.

Now that Riku Mäkelä, former managing director at Slush, has taken charge of the operational side, you really see the importance of experience.

Our growth targets are set so high that we’ve come

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to realize we can no longer figure it all out as we go. Riku has worked in the best consultancy firms in the world, and has a mind-blowing ability to stare at a 250,000-row spreadsheet and see where we need to be seeking extra revenue or productivity.You simply can’t do that without years of experience doing the same at the most exacting level.

Often startups don’t know what they should be doing because everything is still under creation – but experience can at least tell you what you shouldn’t be doing.”

LESSON 2: HIRE THE BEST PEOPLE, AND G I V E T H E M TOTA L F R E E D O M “We wouldn’t manage without hiring the smartest people. I’m in the middle of putting together a guide for employees on our intranet, and taken a look at the recruitment policies of well-known startups, such as the legendary culture deck of Netflix, which sums up its corporate culture. It highlights the importance of recruitment like crazy.

Netflix wants each employee to outsmart the company average. The threshold is raised instead of lowered the more business grows. A few years down the line, managers should be getting a feeling they would no longer be hired, as they wouldn’t meet the mark.

The handbook of game company Valve states that “recruitment is more important than breathing.” According to these manuals, a huge amount of time needs to be spent on recruiting, as the more you reap, the more you sow. Finding the right people is crucial.”

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Juhani Mykkänen, when did you begin to believe in Wolt?

“I ordered some Vietnamese rolls from restaurant Rulla in the gym changing room. I returned home, and bumped into the courier behind my door. I placed the rolls on a white plate and it looked damn good. I took a photo and sent it to our founder telling him to take a look, 25 minutes ago I’d pressed a button on my phone, and now I have the perfect meal under my nose for something like 15 euros.”

W H AT I S WO LT ?

Wolt is a food delivery app. The app’s perhaps best-known co-owner and founder is Miki Kuusi, the man behind startup event Slush.

Wolt currently employs 60 people and 600 food couriers. Wired magazine has listed Wolt as one of Europe’s hottest startups. In April 2016, the company raised EUR 10 million to expand into Stockholm and Tallinn, and other Nordic and Baltic cities are on the horizon.

LESSON 3: F A I L A N D S TA RT A G A I N “A year ago, we hit a rough spot and were short of cash. We put in measures like cutting one month of the co-founders’ pay. We’d been spending more than was coming in. Of course this is a usual story for any startup investing in growth.

Had we not launched the food delivery service a few months earlier,Wolt wouldn’t even exist.We began with a takeaway service. We figured home delivery would be so much hard work that we should look into it later, until it turned out that home delivery was the key to our success.

Failing in itself isn’t important for success. The way I see it is that never failing means you haven’t moved fast enough and tried enough things. Big firms have lengthy product development processes. Startups develop and fail on the market: you create, fail, improve, learn. It’s part of the business.

Knowing what you’re doing all the time means you learn nothing.”

LESSON 4: GET THE TIMING RIGHT “The average person probably thinks it’s the idea that counts for a startup. That’s not the case.

It’s down to timing. If you look at successful startups in five areas – timing, execution, funding, team, idea – you notice again and again that tim-

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ing is the most crucial. Facebook, Angry Birds, Supercell. They all had great timing.

So instead of necessarily doing something that’s never been done before, do it better and at the right time.Timing comes first, then the team. Execution is third – the way you do it. Then comes the idea, and fifthly, funding.

Wolt’s timing was about 8.5 on a scale of one to ten.

The first prototype was launched at Slush in 2014.

We felt it was the right time, but it wasn’t quite. It was a bit frustrating going to Stockholm and seeing how someone was doing better with a worse product but with good financial backing. Their timing was better. If we launched our product in virgin cities, we would most probably be… well, really big.”

LESSON 5: F I G U R E O U T W H AT C U S TO M E R S WA N T TO PAY F O R “This is the biggest lesson of all, the holy grail: finding something people are willing to pay for.

It’s where most startups fail, as was nearly the case for Wolt as well. If we hadn’t started the home deliveries, I’d be here explaining what a great team and execution we had, but hadn’t found what enough people were willing to pay for.

Now Wolt’s initial idea, the takeaway service, is considerably smaller than home deliveries. It wasn’t a big enough case.

Adding home deliveries to the mix was a big change for the company. We had a damn serious discussion: home deliveries would also make us a logistics company. Is that where my strengths lie?

No, digital is my thing. I kept thinking how soon we’d have dozens or hundreds of couriers taking to the streets, who would have to park their cars all over the place. No one at Wolt knew how to run that kind of show.

I went to Nevada’s Burning Man Festival for two weeks, and when I came back, the home delivery service had been set up.

We first collaborated with another company, who pretty soon realized they weren’t cut out

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for it. We were like no way, just what we feared.

Shortly afterwards, three of the guys who had worked in that firm came to see us, wanting to work together. We took them on and told them to get it running. These three guys were what it took to get the service up in that timeframe.

They worked incredibly hard all fall, and recruited just about all their friends as couriers. In just a few weeks, we had an operation involving dozens of couriers. It wasn’t all plain sailing. In November 2015, newspaper Helsingin Sanomat interviewed two of our couriers who were unhappy with their pay. The headline highlighted Wolt’s salary issues, and the article reported how Wolt had failed to pay Sunday extras and social and pension insurance contributions.

We were like, whoops, we haven’t paid Sunday extras! The whole operation was set up in a couple of days, and it hadn’t crossed our minds that we couldn’t agree directly with our couriers how much they get paid.”

LESSON 6: C O N V I N C E I N V E S TO R S W I T H YO U R T E A M , N OT YO U R P R O D U C T “I’d swap this for convince investors with your team, not your idea. Investors initially put their money on the team. The team remains even if all else changes. In Wolt’s case, investors had varying degrees of faith in the original idea, but totally believed in the team. An idea is valuable only after there’s a team to execute it.”

LESSON 7: S H A R E YO U R S U C C E S S “We have the same philosophy as Supercell.

Permanent employees are given options. A business isn’t a nine to five deal, and we don’t have the space for people to just come in and work.

We expect people to be passionate about what they do, so it needs to feel rewarding to them. You earn a share of the company. If the

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company’s value goes up, you need to benefit.

We now employ 60 people, and hopefully will be recruiting a couple hundred more. Only the founders having ownership cannot be the way it goes.

Joining a startup means building something new, not just becoming part of an established regime.Your efforts having an impact on the company is motivating. It’s exciting to know that the ultimate payday may be coming, if you succeed.

It’s possible, but can’t be taken for granted.” + LESSON 8 A S TA RT U P T H AT S U C C E E D S I S N O L O N G E R A S TA RT U P “I’d like to add a new piece of advice for the list.

When a startup becomes a real company, there’s a huge temptation to start planning processes and policies, as otherwise things seem chaotic.Whether you build a company with policies and everything is clear, or you create a Netflix or Valve type world without heavy processes is the choice you make.

As a company, we are increasingly heading towards a process, which I found difficult to accept at first.

My dream was always to build a company where things magically happen without six different policies outlined on the intranet. But I’ve come to see how it makes things easy for people when you don’t have to keep inventing yourself all the time.

The mainstay of Wolt in future years is to enter new cities and do the same things a hundred times. This requires processes in a totally different way than in a super creative game company centering around a small team.

In my view, a startup is a young company that aims for strong growth, which is in search of a scalable business model. It really is still searching. It won’t be a startup forever after finding a business model.When a startup begins to figure out why it exists, what it does, and what works, it also needs to start verbalizing its own process – becoming more like an “ordinary” company.There is no such thing as an extremely successful startup, as according to the definition, it’s no longer a startup.”

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I C E Y E : A A LTO C O U R S E L E A D S I N TO S PAC E “We strive to be the world’s number one service in the industry”, says Pekka Laurila, the co-founder of the space technology startup Iceye.

When Finnish financial publication Kauppalehti listed Finnish companies with the “biggest Silicon Valley potential” at Slush in 2015, Iceye was one of them. For this space technology startup, it all began at an Aalto University course back in 2012.

Iceye’s co-founder Pekka Laurila recounts how Aalto has played a crucial role not only in the company being established, but to this day.

“Initially, the founding team members met through a small satellite project of Aalto. We then drew up the first concepts for a company on a joint course offered by Aalto University, which involved professors from Stanford lecturing about technology entrepreneurship. That added a commercial spin to our venture.”

According to Laurila, Aalto was very much part of the next phase as well: “Aalto Center for Entrepreneurship supported our small team, and when we realized our venture actually made sense, Aalto supported us through funding and as an institution, as we began to develop a prototype with funding from the New Knowledge and Business from Research Ideas program run by Tekes, the Finnish Funding Agency for Innovation.”

The company was launched in 2015, and now employs 24 people.

Iceye develops a service based on microsatellites, which provides almost real-time information

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from space. In its Espoo facilities, the company has developed a radar that is capable of imaging also in darkness and through cloud cover – unlike traditional cameras.

Practical applications include monitoring sea ice or, say, monitoring ships to prevent illegal fishing.

“Or we can for instance monitor flooding in real time to allow immediate relief, rather than when it’s too late”, explains Laurila.

At the moment, Iceye is carrying out pilot projects for customers. The first satellites are being constructed, and the product is being tested on small airplanes.

“Aalto University is a part owner and key partner. We are located in Otaniemi partly so we can stay in close contact with the Department of Radio Science and Engineering”, says Laurila.

What are Iceye’s goals?

“The company aims to create a global satellite imaging service whatever the conditions or time of day. We strive to be the world’s number one service in the industry. A company of this type doesn’t even have a local market – it’s all global, with competitors coming just as well from Silicon Valley or Japan. We are all on an equal footing, which means you have to be the biggest and the best to rule the market.”

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Iceye office renovation: Johnny Finnholm (top, left) and Rafal Modrzewski are building a new wall as the company needs more room.

Test launch: Ignacio Checile at the Mojave desert, Nevada, US.

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Office work: Pekka Laurila and the Iceye staff at their office and laboratory in Espoo, Finland (pictures in the middle).

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Prototypes and tests: Touko Haunia (left) installing a radar.

Martin Neerot and Vladimir Ignatenko doing measurements at the laboratory.

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P H OTO S M E LV I N / T R I P L E X S T U D I O S

Slush Singapore was held in September at the Resorts World Convention Centre as a flagship event in connection to Singapore Week of Innovation and TeCHnology (SWITCH). Aalto EE partnered in the event that was headed by Aalto EMBA alumna Anna Ratala.

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SLUSH WITHOUT THE SLUSH – M O R E T H A N 2 0 0 S TA RT U P S C O M E TO G E T H E R I N S I N G A P O R E Singapore’s first-ever Slush was headed by Aalto EMBA alumna Anna Ratala, with Aalto EE partnering in the event.

During our skype call at the beginning of October, Anna Ratala, Head of Slush Singapore, breathes out a sigh of relief: “I’m so pleased. The first-ever Slush in Singapore that was arranged under a really tight schedule is over, and we’ve received lots of positive feedback”, Ratala comments.

In 2015, Slush attracted 15,000 visitors from a hundred different countries to Messukeskus convention center in Helsinki. Last year, Slush expanded activities to China, with Tokyo, Shanghai, and Singapore added to the list this year. Aalto EE is one of the partners of Slush in Singapore.

Anna Ratala has lived in Singapore for just over five years, where her company PineCone helps tech companies enter the Southeast Asian market.

She is also an Aalto EMBA alumna, having graduated last year.

Singapore’s first Slush was a success, and Ratala will also be leading its way in the future. “The first year was like a baptism in fire; this is where it all begins.”

Participants in the event in Singapore included 215 startups, 160 investors, and 60 media representatives. In addition to Ratala and her team, 200 volunteers made it all happen. “I received a huge amount of support from Aalto EE’s Anu Sirkiä and the team; they were always ready to help, and spread the word.This type of support is so important when arranging a completely new type of event, at times wondering how it all will work

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out”, Ratala explains. It was in fact Anu Sirkiä from Aalto EE who had introduced Ratala to Finland’s Slush team and local partner in the first place.

Recently celebrating its 50th year of independence, Singapore has been constructed in a state-led manner. However, things have begun to change in the authoritarian society. According to Ratala, people in Singapore have come to realize that a top-down principle alone is not enough, but individuals also need to take initiative and be critical.

“When you chat with students, they say that ideas arising on grass root level is how it should be.

However, initially they find it hard to believe you can do things without the government.”

Slush was organized in collaboration with Singapore’s National Research Foundation. “Singapore has an enthusiastic startup scene, but extra boost is still needed to foster initiative and direct encounters, rather than waiting for some major authority to dictate how to proceed. Slush serves as an excellent platform for this.”

For Ratala, heading Slush serves as a good reminder to seize new opportunities in business life, even if daunting at first. “The schedule was tight, and decisions needed to be made fast. Looking back, I realize how wonderful it was that I didn’t give into fear. The importance of leaping into interesting ventures and trusting oneself are something I also managed to prove to myself.”

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” S TA RT U P S A R E N OT T H AT D I F F E R E N T F RO M T R A D I T I O N A L C O M PA N I E S ” Minna Wickholm Business Area Director, Aalto EE Executive Programs and Networks and Aalto ENT

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eading Supercell’s secret ingredients for a successful startup, I started to ponder whether they differ from how a regular company should be led. Bigger companies are challenged by startups, and executive teams wait for something unexpected to happen any day that snatches their market share or totally destroys their business model, making it irrelevant.

Companies with a lengthy history in the industry have all the practice they need. They employ people with a track record of dozens of years in similar positions. Is the difference that startups are founded by multi-disciplinary teams? These teams drive for success and are ready to jump into new competence areas and do their utmost to solve challenges outside of their comfort zone.

The second lesson to hire the best people sets the bar for HR, requiring them to understand business needs and who the best people actually are. When it comes to total freedom that challenges the whole organization, we tend to hire like-minded individuals who mirror our values and ways of working. To be truly ready to be challenged every day, we need to be open to listen to and build and act on what’s new, rather than on traditional ideas. This is of course easier said than done. I fully agree that a prerequisite for success is finding the right people.

Failing and starting all over again reflects design thinking methodology that highlights solution-based thinking. I bet that in a bigger company, Wolt’s business idea would have fallen off the edge as soon as the first business hypothesis failed. Re-evaluating the idea and

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taking another point of view wouldn’t have gotten off the ground, as the idea would have been seen as a failure and the process of analyzing what went wrong would have started. A capability to react fast and choose plan B is a challenge for risk-averse organizations.

How do you know when the time is right? Applying Lean LaunchPad methods in product/service creation helps a lot – it’s all about testing, experimenting, and knowing your customer. Figuring out what customers want and are willing to pay for lies at the heart of the business model canvas. There is a lot information on how to apply the tool, and despite its simplicity, the tool highlights the key questions in any business: monetization, customer need, distribution channels, and so forth. In Wolt’s case, the speed of solving the problem in food deliveries was a stroke of genius, but also a bit of luck was involved.

Returning to the idea of hiring talent and building a team that outsmarts the average is essential in any business, big or small. Success is rarely down to an individual, but usually good leaders are followed by great teams, and miracles happen.

The lesson of sharing your success is pretty challenging, as in most cases, reward schemes in bigger companies are so complicated that it’s almost impossible for an individual’s contribution to be rewarded with other means than remuneration.

Startups are not that different from traditional companies after all: Investors and shareholders require growth and ROI at least in the long run. This is the ultimate objective for any type of company.

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BOOK 4 [ LEADERSHIP ]

COMMON GOOD AND THE CITY Urban planning is the most challenging form of leading the masses: implementing a vision in an environment where a variety of “common goods” compete over the same space.Ville Blåfield took a long look around him in New York’s Central Park and listened to what urban planning experts had to say. Illustrations Jarkko Hyppönen.

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n the corner of Manhattan’s 57th Street and 6th Avenue, a rather shaky looking pile of boards is being hoisted up into the heights.Yet another scaffolding-covered premium property getting a new lease of life. With its 8.5 million residents, New York is a non-stop construction site. The city develops constantly, Manhattan’s old grid serving as a platform for new ideas.

Well, not the entire grid. One of the landmarks of contemporary urban planning is situated just two blocks north of the shaky pile of boards. A magnificent idea (and investment) that has pointed the way for similar sites all over the world.

Namely, New York’s 340-hectare Central Park.

With each step, the sound of traffic and honking horns disappear. Suddenly there’s birdsong, and the closer you listen, the more exotic sounds stream through the ears. As many as 235 different bird species have been found in Central Park.

The park has 19,000 trees, and iconic buildings tower behind: over there a sign on the roof of Essex House, there the glamorous Grand Central Hotel.

The park stretches without interruption all the way from 59th Street to 110th on the edge of Harlem. As far as land prices go in Manhattan, the area has been valued at about 40 trillion dollars (that’s forty followed by twelve zeros).

But of course the true value goes far beyond and cannot even be measured in money.

In fact, the question is irrelevant, as the park’s value is based on the fact that it will never be sized up for construction.

Central Park was not included in New York’s

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first plan, the Commissioner’s Plan from 1811.The idea for the city’s lungs arose during the following decades, when the number of residents rose exponentially between the 1820s and 1850s. The argument behind the plan for Central Park was to create “a much-needed refuge”.

Architects Frederick Law Olmsted and Calvert Vaux looked to London’s Hyde Park for inspiration, but in the end Central Park became something far bigger. Construction began in the mid1800s, and from the very beginning the park included several ponds and 36 bridges.

Sheep grazed in Central Park since the 1850s, but during the Great Depression of the 1930s it was thought wisest to move them elsewhere for fear they would end up slaughtered by starving city-dwellers.

The plan for Central Park being put into practice and the park surviving undivided until this day is proof of the possibilities of visionary urban planning. A vast public green area sprawling across the most expensive piece of land in the world shows that at best urban development can be steered by something other than money.

A common good.

An ambiguous concept in itself.

‘ I

t is very difficult to manage a city”, says Aija Staffans, Senior Research Fellow at the Department of Built Environment at Aalto University School of Engineering.

And the job is even harder now that society is more open and takes part in the discourse. Listening to residents, neighborhood democracy, and a genuine involvement of inhabitants are fine values

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“A hard dilemma in urban leadership today is the requirement to be a strong visionary while extensively involving residents in the discussion.” in themselves, but do make visionary leadership even more difficult. No hero architects get to dictate their plans anymore.

“Implementing an urban vision is no longer in the hands of a select few”, explains Staffans.

It’s what makes urban planning such an interesting illustration of modern leadership. How to steer the masses in the desired direction – or get them to accept your vision? Which values are allowed to steer decision-making – and whose interests should the main idea, or “common good”, address?

“A hard dilemma in urban leadership today is the requirement to be a strong visionary while extensively involving residents in the discussion”, Staffans says.

“It easily turns out to be one or the other. If you are a strong leader and visionary, listening to residents can turn into a theater performance. If, on the other hand, you are a good listener, the plan may lack the masterplan, vision.”

Urban planning also involves different, competing levels of the vision. The mayor can have a political and the architect an artistic vision of the city, while the vision of residents is personal and tied to how the city can serve each family.

“It is also down to a different management theory; a differing view on whether a city should be created together or according to some daring plan”, Staffans states.

“Naturally, architects wish for city planning to be steered by great visions. It’s the way we work; we draw an image of a dream city, then create a plan that binds into fulfilling that dream city as closely as possible.”

In the Nordic countries, the process is very

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democratic – and very political.

“We have a long and strong tradition of representative democracy and corporative culture, and the processes of urban planning are closely connected to those structures”, Staffans describes.

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ere and there, the green benches in Central Park are adorned with memorial plaques.

That bench is devoted to the memory of Ed Mady, the one over there to Daniel T. Sweeney. A bench dedicated to Mike and Lauren is engraved with the words “I love you to the moon and back”.

Families relax on picnic blankets across the lawn, while benches are occupied by people taking a moment by themselves staring at a book, newspaper, or cellphone.

Wherever you look, it is easy to sense what an important haven this is for the city’s residents.

Since the rough 1970s and 1980s, the park has been efficiently ridden of crime to an extent that it now looks like straight out of a family movie by Disney.

“Faster!” a dad spurs his son who cycles ahead of him in his green helmet, as they whizz past.

“Central Park is the American equivalent of an Italian or Spanish piazza”, illustrates Timo Heikkinen, Solutions Director at Aalto University Professional Development. Among other things, he is responsible for Aalto PRO’s longest running program, the continuing education program in urban planning, which has been arranged for experts in the field already since 1968.

“The popularity of piazzas isn’t down to people being so hugely social, but to a genuine need for those types of spaces. The starting point for an

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“Believing that new is always better made dismantling what was old an accepted practice.”

Italian piazza is far less glamorous than meets the eye when thinking about those wonderfully bustling squares and cafés.

“Generally, people live in hot, small housing, cramped with other people. At nine in the evening, it’s quite nice to cool down outside. Central Park, on the other hand, is an important place due to the sheer mass of New York that sprawls around.

It’s a vital breathing space for residents.”

A much-needed refuge, as was the argument in the early 1800s.

Timo Heikkinen compares Central Park to Istanbul’s Gezi park, where locals demonstrated as they heard the plans for a new bridge that would have meant slicing off a section of their beloved park. Going against a one-off construction project flared up into a wider movement against the entire government in 2013. Urban planning was seen as just one example of an autocratic, corrupted political system.

In fall 2016, people in Helsinki have been engaging in a lively debate around Helsinki’s own central park. The city’s new master plan would allow construction in a small forested section of the park, and once again, a city’s residents take to defending their recreational area.

“The same logic applies to why touching Helsinki’s central park immediately aroused emotions.

Every city has certain sacred areas for residents”, Heikkinen says.

The challenge of urban planning is that although representative democracy allocates city management as the task of a few, that responsibility is not autocratic nor does it involve ownership.A city will always be common ground for residents.

It is easy to understand the fear of residents.

Daring urban planning has caused a great deal of

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destruction around the world. Sites with historical value that residents have loved have had to make way for new builds and traffic routes, and history has many stories to tell about decisions that have been violent to say the least. Heikkinen reflects on how the exponential rise in the number of cars has shaped the use of space and appearance of cities since the 1950s.

“Believing that new is always better made dismantling what was old an accepted practice. It did solve some problems – but created new ones at the same time. It doesn’t all boil down to the increase in personal vehicles; the only known way to increase sunlight, clean water, and heat, for instance, was to tear down old and build new.”

“Stockholm is a good example, where the entire historical Norrmalm area was destroyed with modernist plans. Now people from Stockholm travel to Tallinn to admire the kind of city they once had.”

“The recent trend has been to build densely in urban areas for ecological and financial reasons”, says Heikkinen.“Perhaps the marks left by our era won’t be as radical and rough as those of previous generations, as this type of construction is less noticeable. I find the trend fascinating, as a city gains different layers over time and new buildings are erected next to older properties, creating diverse architecture.”

Helsinki is also an example of a city where traffic planning is following a brave vision. Whether that vision is right or wrong is under constant political discussion, but the power relations between the city’s political decision-makers have enabled to drive a single chosen strategy forward.

The city’s heavily trafficked entry routes will be transformed into city boulevards that favor public

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transport, and new bridges intended solely for public transport, pedestrians, and cyclists are underway. The green trend that supports rail transport and cycling has, however, also come under attack for a predisposed aversion towards private motoring.Who knows if cars will be totally emission-free in a decade or two!

However, this argument ignores one of the key elements in urban planning: space. Although hundreds of blocks of premium housing could fit into Central Park, the space continues to be a green oasis. This is a significant value choice; space in itself is after all so valuable in a city.The way space is used is a question of values.

In urban planning, the ethos of private motoring has had the biggest effect on the use of space.

Freeways, traffic lanes, and parking lots eat up a huge share of urban areas. And even if vehicles would be totally emission-free and driven by robots, they would still take up the same amount of space on a congested freeway.

“In Holland they already realized in the 1950s that having more and more cars simply won’t work. This coincided with car accidents where children died, which gained wide attention in the press, and influenced public opinion. Dutch top officials hopped onto their bicycles”, Heikkinen describes.

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“Dutch officials reclaimed Amsterdam’s streets for bicycles, and active efforts were taken to restrict driving. There, the limit had been reached already half a century ago.

“Finland and many other countries are having this conversation really late in the game.”

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ija Staffans from Aalto University reminds that in urban planning, decision-making centers on the relationship between conserving what already exists and building something new.

Who has the power to decide what is worth preserving?

“It’s also a matter of what you believe to be right. One school of thought wants different eras to intermingle, while another would like to return to the original form of the city or building.”

For decades, a school of thought ruled in Finland that did not have much appreciation for older properties.

“It’s a modernistic idea that suits the Finnish mentality. Finland’s urbanization was the fastest in Europe. We were practically an agrarian society until World War II. But when urbanization finally took hold, it happened quickly.”

“It was a time of tearing down. Instead of bringing different time periods to the mix, people wanted to express their own era.”

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“Cities compete for global streams, while mayors are responsible for making sure neighborhoods serve their residents.”

Staffans reminisces on her own childhood in the small Finnish town of Hämeenlinna in the 1960s and 70s, which began to carry out a strikingly modern master plan in the 1950s. Old areas of wooden houses were destroyed to make way for new construction, and plans went as far as including helicopter pads for new residential areas.

As far as historical layers in urban planning are concerned, there are country-specific cultural differences. Trends have been different already in neighboring Sweden. Staffans compares Finland’s western coast and Sweden’s eastern coast on opposite shores of the Gulf of Bothnia.

Umeå in northern Sweden put a stop to cutting-edge plans arising from Stockholm to modernize its city center.

“In the 1970s, they wanted to construct a new building, a police station if I remember correctly, that had been planned at the Swedish National Debt Office and looked like a black box. Locals joined forces to put a stop to the plan. Umeå was a very attractive urban environment, perhaps without any major architectural landmarks, but charming and loved by locals. History adds character to a town.”

This is where we arrive at the core of urban planning: in order for a city to be interesting to visitors and investors and a good place to live, it must be loved by its residents. Only cities loved by residents stay alive.

“It’s a question of understanding cultural values.

Are we able to create urban space that reflects the city’s residents, and address their needs?” Staffans asks.

“Cities compete for global streams, while mayors are responsible for making sure neighborhoods serve their residents.”

Maybe the wisdom lies in realizing these are not

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opposite forces. Staffans calls for cities to be bold enough to look for answers in their own character, history, and where residents actually spend their time. Wow factor architecture and skyscrapers may not be the answer for every capital city in the world despite their crowd-pulling power.

The appeal of Berlin and traveler favorites Amsterdam, Copenhagen, and Portland in the U.S. are fine examples of how a unique environment that resounds with residents cannot be built by copying. The charisma of those areas is down to the unique character and layers that reflect residents.

Reasonable house prices and work spaces have turned Berlin into a mecca for the creative class, and artists have added an allure (and unique aesthetic) to the city that is also appreciated by others. Amsterdam and Copenhagen are famous for their bikes, and Portland for a new type of community spirit among cultural pioneers – let’s abstain from using the word hipsters.

“Naturally, cities need to succeed in the global race, but each city has the freedom to define its own strategy.”

The strategy created in New York in the 1800s has proven to be a success. The city is loved by travelers, investors, and residents themselves, not least thanks to undulating Central Park.

At the heart of Central Park, the pedestrian path takes a dive under Driprock Arch. Above it is the only vehicle road that transverses the park. But cars do not create too much of a disturbance; right there, in the middle of Manhattan, a lady in a suit is taking a nap under a tree probably on her way from work.

Underneath the bridge, a violinist wearing a black leather jacket plays Adele’s hit Someone like you. ◆

This article in Finnish online: www.aaltoee.fi/blog

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I M PA C T & EXPERIENCE PA RT I C I PA N T S , FA C U LT Y & A A LTO E E ALUMNI

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PHOTO TOUKO HUJANEN

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Tannia Paramita, Erwin Elysar and Rafal Krzys´ko.

Most of this year’s Aalto Executive Summit took place at the Finlandia Hall. One evening participants got a tour around Aalto EE’s own premises and its art collection.

Maneli Majd, Vivi Sim, Barbara Walkowska and Viqhia Rusita.

Freddy Sutanto.

MEETING POINT: HELSINKI This August, Aalto Executive Summit in Helsinki gathered close to 200 participants and alumni from all over the world, representing 19 different nationalities. On the following pages, participants and lecturers share their insights and experiences.

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re you ready to start?” Senior Program Director Kati Illikainen asks the audience at Finlandia Hall.

“Yes!” the 190 participants answer in unison.

Aalto EE’s annual Aalto Executive Summit is about to begin, which this year has drawn a record audience representing 19 different nationalities.The participants come from a myriad of industries and types and sizes of organizations, and are either current or future participants of Aalto EMBA, Aalto MBA, or Global Leader programs around the world.

Also the professors and corporate speakers come from all over the world. In addition to Aalto, participants will enjoy lectures by professors from Aalto EE’s Spanish partner, the ESADE Business School, and from the National University of Singapore.

In his opening speech, Mayor Jussi Pajunen welcomes participants to Helsinki, “the leading hub in Northern Europe”, as he describes the increasingly international vibe in Finland’s capital city.

“The map is of course the same as it has always been, but accessibility to the city of Helsinki is totally different than what it used to be 30 years ago.”

“We are delighted that the topics chosen for this year’s Summit aroused so much interest; developing leadership skills is deemed beneficial and pivotal, and today’s leaders are determined to be well prepared to lead change and transformation of organizations”, states Hanna-Riikka Myllymäki, Business Area Director for Degree Programs at Aalto EE. “Aalto Executive Summit enables the exchange of experiences with a large group of global and experienced leaders. The real strength of Aalto EE’s programs is the global reach.”

This year, the Summit’s themes include: Digitalization of Work; Perspectives for Talent Development; Leadership in the Age of Creativity; and Reinventing Management Systems, which was

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the topic of the lecture of Aalto EE’s Group Managing Dr. Pekka Mattila on the opening day.

“Serious is a good code word for being boring.

Management systems - doesn’t it sound terrible?

But it’s actually terribly exciting.”

Although Mattila prepared ahead with 140 slides, he was hoping to have time for about twenty: “Let’s keep this interactive.”

And participants were more than happy to oblige. The hall quickly filled with the sound of people chatting, as they were asked to discuss themes in small groups. People representing different cultures, industries, and companies soon identified a common issue: change.

Every sector in every country of the globe is going through a significant transformation in business, technology, work, and consumer behavior. “It’s a question of how well you adjust”, was the conclusion around the tables in Finlandia Hall.

The following pages present experiences of participants and lecturers at the Summit in Finlandia Hall. ◆

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A A LTO EXECUTIVE SUMMIT 2016 Was held in Helsinki August 22–26, 2016.

Theme: Future of Work – A Journey of Leadership Transformation.

Number of participants all-time high: 190.

19 different nationalities.

Venue: Finlandia Hall.

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Aalto EMBA participant Pawel Koscianski, Production Director, TKH Kabeltechniek, Leszno F R I E N D S A N D A WA R M V I B E

“T he p rog ram is a g reat comb i nati on of hard and s of t ski l l s”

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awel Koscianski from Poland wanted to join the Aalto EMBA program, as he felt he needed to improve his management and business skills alongside his technological competence. He works in western Poland for a Dutch-owned company that manufactures electrical harnesses.

When asked about his experience on the EMBA program, what first springs to mind are the people and warm vibe: “From day one, we have been a group. People have different types of roles in their companies, but this isn’t a place for talking about that or comparing personal success, but about friendship on an equal footing.”

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Koscianski also speaks highly about the personnel at Aalto EE:“I didn’t realize people here would treat us as friends rather than customers, and the atmosphere is so down-to-earth that we can all go to a bar or an art exhibition together.”

Koscianski’s EMBA studies are funded by his employer, and he is aware that expectations are high. “I am satisfied, and so is my company. The program is a great combination of hard and soft skills.The modules have been designed so that they can be completed alongside work.”

“I appreciate the combination of theory and practice. Often the lecturers also have practical experience in the issues they are talking about.

These days, information and experiences need to be fresh – having book knowledge from a decade ago isn’t enough.”

Koscianski took part in English courses before beginning the EMBA studies. “But the study material is easy to understand, and you can get by even if you don’t speak English at a native level.”

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A A L TI O M P EA EC TI M &P AE CX TP EI RN I ENNUCME B E R S

O V E R A L L F E E D B A C K O N AV E R A G E O N A S C A L E O F 1– 6 , Y E A R S 2 0 1 4 – 2 0 1 5

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C U S TO M I Z E D S O L U T I O N S

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E X E C U T I V E P RO G R A M S A N D N E T W O R K S

A A L T O E X E C U T I V E M B A G L O B A L LY Finland since year 1988 Poland since year 2002

Iran since year 2014 China since year 2003

South Korea since year 1995 Taiwan since year 2003

Singapore since year 1999 Indonesia since year 2012 a alto leade r s’ i n si g h t

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Aalto EMBA participant Sabrina Ching-Mei Chang, Audit Supervisor, Long Chen Paper, Taiwan

I N T E R N AT I O N A L P E R S P E C T I V E

“I wante d to unde r stand global i zation al s o f rom out si de T aiwan ”

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abrina Ching-Mei Chang, who hails form Taiwan, started her Aalto EMBA studies last fall.

“I wanted further training and skills in business, and after searching for a suitable EMBA program, I ended up at Aalto EE in Finland for a number of reasons. Firstly, I wanted to understand globalization and the internationalization of business also from outside Taiwan.” For Taiwanese Chang, the program at Aalto EE offers an international network and wider perspectives for her own work.

“People in Taiwan know how to work hard, but we still have plenty to learn in working smart”, comments Chang during her visit to Finland.“Fin-

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land is renowned as a creative and innovative country, which are characteristics that are also needed in Taiwan. We are in a strategic position regarding China, but also vulnerable, if we don’t know how to renew ourselves, and see issues also from outside Taiwan.”

To begin with, Chang carefully compared the rankings of different EMBA programs. “Aalto EE has performed well, so I know the training would be of a high standard.”

Studying alongside working is tough, but Chang explains that she enjoys learning new things and the encouraging atmosphere.

“The summit in Helsinki has been incredible!

Yesterday, we talked about the digital future. Of course it’s a familiar notion, but it was exciting to hear American and European perspectives on the topic. For instance, Rogier Van Enk, Head of Commercial Strategy, Distribution & Data Science at Finnair, was really interesting, encouraging me in my own thoughts around developing ecofriendly products.”

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Aalto EMBA participant Jacob Bojsen, General Manager, Luxxottica, Singapore N E T WO R K I N G A N D T H E L AT E S T T H E O R I E S

“ I have adde d anoth e r laye r to my knowle dge ”

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s General Manager for global leader in eyewear manufacture Luxxottica Singapore, Jacob Bojsen has a clear aim for his Aalto EMBA studies: “A desire to become a better leader.”

Bojsen felt he already had plenty of practical experience and knowledge in many areas of leadership, but lacked a theoretical background and framework.

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“I wanted to get an update on the latest also in the academic world – combine my practical experience with the theories. And I also wanted to become a stronger candidate in future career opportunities within the company.”

“I have added another layer to my knowledge”, Bojsen describes. “Also the network we have gained is an important element. Networking is definitely also one of the reasons I decided to attend the Aalto Executive Summit in Helsinki.”

Luxxottica’s globally recognized brands include Ray-Ban and Oliver Peoples. Bojsen had no previous experience in the accessory or fashion industries before joining Luxxottica, but he believes certain universal principles apply to all fields.

“Products and customer groups change, but the principles in sales remain the same in all business areas.”

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Aalto EMBA participant Vivi Herawati Sim, Finance Manager, PT Thales, Indonesia

GAINING SELF-ESTEEM

“ Now I have a cleare r vi ew of what I want to ac hi eve ne xt ”

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he Aalto EMBA studies were much more rewarding than I expected”, says Vivi Herawati Sim. She especially appreciates the way teaching and learning are organized at Aalto University Executive Education.

“It may be down to cultural differences, too. As an Indonesian, I’m used to compiling a lot of presentations and having long days. The Aalto EMBA modules are designed to be concise, and in my view have been put together more sensibly.”

“To be honest, I didn’t even know about Aalto University or Finland that much before applying for the Aalto EMBA program. But when I began to look into it, I discovered that Finland is a leading country in education. I knew I’d made the right choice!”

The Aalto EMBA program in Jakarta is organized in collaboration with leading Indonesian business institution SBM ITB, School of Business & Management, Institute Technology Bandung.

Vivi Herawati Sim’s current title of Finance Manager doesn’t fully describe her wide-ranging role, as in addition to finances, her responsibilities include HR and legal issues.

“Aalto EMBA has helped me believe in myself,

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and given me a clearer view of what I want to achieve next. I have the talent to become a leader, but it’s something you can’t rise up to without the right opportunities. The EMBA program has instilled in me that those opportunities are worth pursuing.”

Aalto EMBA coach Ben Nothnagel receives special mention.

“I’ve recommended his lectures even to a friend in Paris. I told her Helsinki is close to Paris, and Nothnagel’s teachings would definitely be beneficial.”

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“Fe e dback on Its Own Is Use le ss” During his lectures, Dr. Mario Raich presents simple models that can be easily put into practice. At the Executive Summit in Helsinki, Raich’s module offered perspectives for talent development and management.

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eedback on its own is completely useless. If at the same time employees are not told why the feedback is given in the first place, and how they can improve their work, you may as well not give any feedback at all”, Dr. Mario Raich says.

Good feedback always includes the assessment itself, an answer to why it is given, and an explanation on how to improve. This way things can be developed for the better.

Raich’s method is to combine many of his theses into recipes that can be quickly put into practical use. People who study while working are too familiar with a situation where issues mentioned in a lecture hall seem totally clear and useful: T his

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is how it goes! This is something I need to remember at work! But as soon as people return to work, routines quickly take hold, while the lessons remain in the lecture hall, and there is no change.

Raich has developed exercises and practical recipes to combat this: Do this, three steps, try these.

“I explain topics using simple techniques, which can be easily put into practice at work right from day one, reaping immediate results”, he says. Combining the academic and pragmatic sides is a conscious effort that works.

“My lectures include lots of examples from practical working life, which makes academic research results concrete.”

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At the Executive Summit in Helsinki, Raich’s module offered perspectives for talent development. He helped participants understand the development and deployment of talent in the cyber age. During the two days of lectures, participants learned how to use simple tools and instruments for the assessment of core competencies, development of competencies, and collaboration.

In Helsinki, Raich talked about talent management in the context of global megatrends. How do social changes like migration, urbanization, and aging populations impact talent management? How about disruptive technological changes, fast-growing global connectivity, and environmental changes?

The Aalto Executive Summit’s overriding theme, the future of work, was strongly present in all the discussions and pre-assignments.

Raich encouraged people to consider the following topics before participating in the lectures: ”Please describe the future of education in your industry. What is being done for talent development? Can you see life-long training and development?”

According to Raich, the fast-progressing digitalization of work leads to competition between human competencies and intelligent machines. He believes that employees – and managers in particular – need to understand themselves and their core competencies better than ever.

“You need to make an effort to understand your personal core competencies, then seek out a role that corresponds to your personal strengths.”

Especially managers need to seek out challenging situations, or can even be consciously steered into them in order to develop.What types of situations does he mean? “It could mean working for a bad boss, managing difficult employees, and leading a business in financial problems.”

The audience at Raich’s lectures is very heterogeneous, representing different-sized companies, different types of work cultures, and nationalities with

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differing views on hierarchy. Yet, he thinks everyone has a great deal in common - people need to work together also in the future, in a good spirit.

He leaves us with a recipe he uses on a weekly basis, worldwide: On a scale between 0-10, each person anonymously assesses their team in relation to three aspects: common ground, open communication, mutual trust and respect.

This is followed by a discussion: Why are the differences in the assessment so big or small? How can we improve communication? The team then makes some adjustments and agrees on concrete measures for issues that need to be improved.

“You can even try this at home with your partner – it’s a very practical model”, Raich tips.

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MARIO RAICH Aalto EMBA Lecturer, ESADE Business School Dr. Mario Raich is an international management consultant with a focus on innovation and talent management. He has been visiting professor at ESADE since 1997.

Recently, Dr. Raich has been exploring the future development of society, which has so far resulted in two publications: Beyond Business and Society in Transformation, and Cyberness: The Future Reinvented.

Dr. Raich has held top executive positions with organizations such as Xerox, Citigroup, Zurich Financial Services, and Learnità. He has also founded several companies.

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Aalto EMBA participant Najmeh Bozorgmehr, Tehran correspondent, The Financial Times

WO R L D - C L A S S K N OW L E D G E

“ I value e x pe rt s w ith g e nui ne e x pe rie nce ”

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’m a Tehran correspondent for London-based Financial Times. When Iran began to open up, I felt I needed more world-class knowledge in leadership and business.”

“Iran is in critical need of foreign investors”, Bozorgmehr states.

“Economic hardships are massive, and Iranian companies need to go trough reforms. I felt the

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need to understand these questions more deeply when covering business issues.”

The Aalto EMBA program, which is arranged in collaboration with Iranian Business School, has generally corresponded to Bozorgmehr’s expectations.

“I’ve especially valued the fact that professors visiting Tehran have experience and expertise also in the practical side of business, rather just in theory. As a journalist, I value experts with genuine experience.”

As a correspondent for a globally renowned media outlet, right now Iran is a particularly interesting base.

“I hope I will have a chance to also put my knowledge from the Aalto EMBA program to use in reporting on Iranian business stories to an international audience.

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A A L TI O M P EA EC TI M &P AECXTP EI RN I ENNUCME B E R S

A A LTO J O KO ® AaltoJOKO ® is Finland's leading business executive training program:

46 91 years of history

programs run

2,000

Over leaders and decisions-makers in Finnish business life have participated in AaltoJOKO ® and given the program top feedback

The AaltoJOKO ® has met the expectations of the participants by

91%

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Aalto EMBA participant Pauli Torikka, Director, Pulp Raw Materials, UPM, Finland S H O RT PAY B AC K T I M E

“Le ssons can be quickly put into practice at work”

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auli Torikka is responsible for pulp raw materials at UPM pulp business. Both his own role and the field in general are changing rapidly. Before joining the Aalto EMBA program, Torikka felt he wanted to gain new tools in strategic thinking, leadership, and finance.

“I’m really pleased my company was ready to invest in this, and I even got to decide on where to study.”

Before deciding to go for the EMBA program offered by Aalto EE,Torikka compared his options.

“I wanted to be sure that the invested money and time would pay back. The themes and structure of the modules on the Aalto EMBA program seemed interesting, and have proven to be so in

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practice. I don’t believe I would have gained the same learning experience somewhere else.”

In addition to Finland, Torikka has worked in Germany and Uruguay.

“The international aspect was a key factor in choosing the right study place”, Torikka says.

“A number of senior-level directors taking part in the program is also beneficial. In a way, you gain free coaching and consultation for your own business problems from professionals in other fields.”

“The program has totally lived up to expectations. Existing knowledge is combined with new information, and lessons can be quickly put into practice at work. The payback time is short.”

Torikka is now nearing the end of his studies.

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Combining family life, work, and studying has been hectic and rewarding at the same time.

“It has required self-discipline. I’ve consciously skipped some of my evening engagements, and generally prioritized my time.”

Similarly to many other Aalto EMBA participants, Torikka mentions personal growth and developing personal skills alongside gaining new technical knowledge.

“Growth is a matter of interest also for the employer - whether an employee has the ability to develop, and the motivation and commitment for renewal and learning new skills.”

The studies included carrying out a business project as group work.

“We drew up a growth strategy for a mid-sized Finnish company. It was a great experience, as we viewed a company from the owner’s point of view, with completely different resources, decisionmaking methods, and business logic at hand than in one’s own work. It made you learn, and was a good opportunity to share external views and good practices from your own sector with others.”

In the fall, Torikka will be heading to Palo Alto in the U.S. together with other Aalto EMBA participants. “It’s a great chance to take part on the lectures with Stanford profesors and see the startup culture first-hand. I am sure I can get valuable learnings that will help my company to drive transformation and growth in our business.”

In Torikka’s view, the Aalto Executive Summit has especially highlighted the significance of work culture, which was mentioned in some way or another in nearly all of the lectures.

“What is the work culture like at my workplace, how can it be influenced, how to create a healthy culture in one’s own unit? Work culture has a huge significance in achieving goals, and it is something you cannot simply copy from another company.

This leaves plenty of food for thought when returning to work after the summit.”

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Professor Dr. Jussi Keppo, National University of Singapore A S I A V S E U RO P E

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“Dive r se Group of Parti c i pant s”

he audience at Aalto Executive Summit is really diverse, both as far as nationalities and different industries are concerned. There are people from banking, human resources – experts… It’s good to hear examples from across the board.

It’s also interesting to have participants from Asia as well as Europe. Asian business culture is very hierarchical. It’s very efficient when, for instance, implementing highly conceptualized business models, which the Asian, almost regimental leadership style suits well. However, the European and especially Finnish leadership style is excellent in a less hierarchical, datadriven business culture.”

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Professor Dr. Gerald C. (Jerry) Kane, Boston College, Carroll School of Management F I N D I N G T H E R I G H T T E C H N O LO G Y

“on s oc i al m e dia, you ’re more l i ke ly to connect with pe op le l ike you ”

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any businesses see the relationship between strategy and technology the wrong way round. Strategy should be driving the decisions, not technology. Genuine needs should be understood first, then start thinking about the right technology.

Don’t be ashamed to use old school technology is something I’ve taught also here at Aalto Executive Summit. All today’s businesses use old school technologies, and there’s nothing wrong with that as long as they correspond to the need. There is more harm in adopting new technologies without a genuine need or strategy.

Email, for instance, will continue to be used for a long time. I’m not one of those who proclaims

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it dead even if I hope so in some ways. But it’s a very good tool in situations where I know who I’m talking to and what we are talking about.

Email would be even better, if in addition to the reply function it came with a like button developed by Facebook.

I’m interested in how human communication is shaped through digitalization. I used technology already in the 1980s when this interpersonal digital communication began. I loved it as a kid, and it led me where I am now.

Technology is never only a positive thing. It is a tool that can be put to positive or negative use. Social media is a good example; it doesn’t necessarily only highlight our best qualities.When social media gives you an opportunity to connect with whoever, you’re more likely to connect with people like you. These bubbles enhance our own existing ideas.

As a kid, my mother taught me two lessons: Never get into a stranger’s car, and never enter a stranger’s home. And now we have two huge businesses, Uber and Airbnb, which are based on these exact ideas.”

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A A LTO L E A D E R S ’ I N S I G H T Editor in Chief Pekka Mattila Executive Producer Riitta Lumme-Tuomala Producer Kati Kiviniemi Editors Reetta Räty Ville Blåfield

Creative Director Jarkko Hyppönen Translations Rebecca Watson

Columnists Riitta Kosonen Mikko Laukkanen Contributors Touko Hujanen Annukka Oksanen Concept Räty-Salovaara-Blåfield Ateljee Hyppönen

Publisher Aalto University Executive Education Ltd Mechelininkatu 3 C, 00100 Helsinki, Finland tel. +358 10 837 3700, www.aaltoee.com Aalto University Executive Education Pte Ltd 25 North Bridge Road, EFG Bank Building, Unit 02–01 179104 Singapore, Singapore tel. +65 6339 7338, www.aaltoee.sg Strandvägen 7A, 114 56 Stockholm, Sweden tel. +358 10 837 3700, www.aaltoee.se Printed by SP-Paino Oy, Nurmijärvi, ISSN 2342-3986 Address Register aaltoleadersinsight@aaltoee.fi

SHARE THE INSIGHTS AND FIND MORE ONLINE

A A LTO LEADERS’ INSIGHT ONLINE STREAM: Annukka Oksanen is a Copenhagen-based journalist and writer specialized in economics and politics. She has previously worked for e.g. Helsingin Sanomat and The Financial Times.

W W W. A A LTO E E . C O M / B LO G Aalto University Executive Education hosts and curates a stream of varied content online.

At www.aaltoee.com/blog you can find articles – i.e. the long-form Books from this magazine, easy to forward and share digitally – videos, columns and blog posts by Aalto EE and Aalto University faculty and alumni, as well as journalists and other guest writers invited to share their insights with the Aalto EE community.

EXAMPLES F RO M T H E D I G I TA L C O N T E N T : Ville Blåfield is a writer, journalist, and co-founder of Räty-Salovaara-Blåfield. In his work he focuses on politics and profiles, both in print and in radio.

Professor Kristiina Mäkelä: Three recipes for strategic HR Jan F. Klein: Knowing when you lose… and win Riitta Lumme-Tuomala: Talent management in the brave new world Kai Rönnberg’s Aalto MBA Journal

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