r search centre eReport: IBM Global CEO STUDY 2010
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The overall objective of the POWA Institute Research Centre is to share timely and valuable information about new research, surveys and case studies at the global and local level in the area of 21st Century thinking.
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This eReport focuses on information provided in the 2010 IBM Global CEO Study, in the specific area of creativity, as the priority concern for CEOs operating in the complex 21st Century knowledge economy.
4th in a series of biannual studies conducted by IBM since 2004. 1541 CEOs interviewed world-wide. 3619 students interviewed from top 100 universities throughout the world (46% MBA students). Covered North America, Europe, Japan, Asia/Pacific, Latin America.
The 2010 IBM Global CEO Study investigated: “How are leaders responding to a competitive economic environment unlike anything that has come before?� Page 8 Capitalising on Complexity
Reference Capitalising on Complexity. Insights from the Global Chief Executive Officer (CEO) Study. 2010. IBM United Kingdom Limited, UK. ibm.com/ceostudy/uk IBM 2010 Global CEO study in full CLICK HERE
The new primary challenge that was identified as having emerged since the last report in 2006 was complexity.
“CEOs told us they operate in a world substantially more volatile, uncertain a complex. Many share the view that incr changes are no longer sufficient in a wo operating in fundamentally different wa
that is and remental orld that is ays�
Page 8 Capitalising on Complexity
“consequences of any decision can ripple with unprecedented speed across business ecosystems� Page 17 Capitalising on Complexity
Increased connectivity and complex inter-dependencies, where the ultimate consequence of decisions is hard to track and therefore poorly understood is now recognised by CEOs as some of the problems they face with complex business environments.
CEOs recognise they must challenge the way they are doing things and challenge their long-held assumptions because after the GFC no-one knows what to expect next.
“This economic downturn was far more than just business cycle fluctuations. We view it as a true paradigm shift that is revolutionising not only business but global social structures as well.� CEO Page 15 Capitalising on Complexity
CEOs consider the new economic reality to be not only more volatile, increasingly more complex but also structurally different from pre-2009, one CEO pointed out “most people are looking backward, wishing it was still like it always was” another stated flatly “2009 was a wake up call”. CEOs Page 19 and Page 14 Capitalising on Complexity
Faced with a world that is now dramatically more complex with global interconnectivity of social systems, rapid technological innovation and constant unexpected emergence of opportunities and challenges, the Study found entirely new leadership styles and new business structures were needed.
Survey participants were asked to prioritise their 3 most important leadership qualities in this new economic environment and the overwhelming response was, the most important leadership competency is: creativity.
One CEO put it succinctly:
“creativity is everything” Page 4 Capitalising on Complexity
The Survey makes it clear that the complexity reality of the 21st Century requires CEOs, and by implication all business managers and people in a ‘leadership’ position within organisations, to: • adopt bold, open-minded; breakthrough thinking • be inventive • replace traditional approaches to management with fresh ideas • shake up and shed some long-held beliefs and assumptions • create original not traditional approaches • be ready to upset the status-quo • be radical in conception and execution not just marginally better • invite disruptive innovation • encourage others to drop outdated approaches
What are the best performing organisations doing?
In addition to interviewing over 1500 CEOs the Survey did a performance analysis on their organisations to ascertain which organisations were financial standouts and the difference between these organisations and the others.
The performance analysis was based on both long-term (4 years) and short-term (1 year) periods of performance relative to peers where available, with long-term performance including four-year operating margin compound annual growth rate from 2003-2008 and short-term performance including one-year operating margin growth rate from 2008-2009.
From the interviews and performance analysis there were 4 major findings: 1. Complexity is expected to increase and over half of the CEOs interviewed doubted their ability to handle it. The standout organisations had however, turned increased complexity to their advantage over the 5 years from 2005-2010. 2. According to CEOs creativity is the most important leadership competency. The standout organisatons practice and encourage creativity and innovation throughout their enterprises. To succeed creative leaders take more calculated risks, find new ideas and keep innovating in how they lead and communicate. 3. The most successful organisations co-create products and services with customers, and integrate customers into core processes. 4. Better performers manage complexity on behalf of their organisations, customers and partners. Page 4 Capitalising on Complexity
Serious creativity (authentic lateral thinking) programmes for people in Western Australian organisastions.
21st Century Executive Serious Creativity for Sustainable Innovation. CLICK HERE Programme for CEOs, Executive Directors, Managers, Small Business Owners and other enterprising individuals. Delivered as a series of private one-on-one tutorials by our Senior Cognitive Learning Coach. Includes advanced training in authentic lateral thinking tools and processes as invented by Dr Edward de Bono.
21st Century Team-based Serious Creativity for Sustainable Innovation. CLICK HERE Programme for teams and work-groups delivered in a series of weekly cogntive learning and coaching workshops for maximum transfer of serious creativity (lateral thinking) into the workplace. Š 2010 Copyright POWA Institute Western Australia’s not-for-profit Institute for new thinking in the 21st Century. www.powa.org.au
“The problems of today will not be solved by the thinking that created them in the first place�. Albert Einstein