“After nearly eight decades of predictability, the world, the global economy in particular, is entering an era of upheaval and uncertainty (climate change, the sensible use of AI and geopolitical power shifts). The world will therefore need completely different political and economic leaders.”
This quote came from one of the 472 CEOs who recently shared their views in our new study: The CEO Response. The full report is available for download here. In this brief article we are highlighting a few of the major findings and some of the respondents’ open comments.
- The overwhelming majority (95%) expect significant, systemic shifts in the economy, geopolitics, energy and technology over the next decade. What concerns them most are surges in populism and nationalism, increasing military conflict, climate change and the resulting natural and humanitarian crises. We are looking at a “massive period of instability now,” according to one CEO, “Reaching stability in the future means change, challenge and compromise.”
- Strikingly, the expectation of this immense change is compelling these business leaders to accept a new responsibility beyond business, especially around issues where they see business as intrinsically interwoven with geopolitics. Eighty percent acknowledge an expanded role, positioning themselves as vital players in shaping new societal realities. As one CEO explained, “Business leaders cannot be passive observers of geopolitical developments that shape the business landscape in which they operate.” Another added, “Business leaders have voices, platforms and influence. They cannot waste these by claiming no responsibility and hiding in the background when tough issues need to be discussed and addressed.”
- CEOs are discerning which issues they can best impact. Addressing climate change and new technologies such as AI are the most intuitive areas--where they feel they will have the biggest opportunities to build common ground with others. They do stress that progress in the future will depend upon connection and cooperation. “We can only tackle the challenges ahead together” one emphasized, “truly together—by listening to and integrating divergent opinions of people from all walks of life.”
- CEOs acknowledge that effective leadership for the unknown future is highly dependent upon better relational and adaptive skills. When we asked them in the most recent survey what is the most important skill for leading through today’s challenges, they were clear: cultivating an organizational culture of openness and curiosity. It has become a business imperative for leaders to acknowledge the limits of their past experience and embrace the unknown; moreover, to build and support cultures of boundless curiosity and creativity--organizations reimagined for tomorrow’s growth and equipped with the very best talent for shaping that future. The optimal path to meet the impending challenges, explained one CEO, is by “preparing my company and my staff to take on a new paradigm, not business as usual.”
- When we asked CEOs who were their best resources for discussing and making sense of the challenges ahead, they pointed to their senior leadership team and their peers/other CEOs. Many also included the importance of retired leaders and external thought leaders at this moment in time when external pressures are so great and uncertain. What we found surprising and perhaps in need of redressing was the lower ranking of their relationship with their Chairs. The extreme nature of systemic change expected ahead is going to require careful and close alignment between CEOs and their boards in the coming years. The relationship between CEOs and Chairs will be critical to achieving this.
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Altogether, the new study indicates that not only are we are on the brink of tremendous change, but that CEOs are envisioning a new era of leadership as a result. In this emerging scenario, CEOs are positioning themselves as architects of societal progress. “One cannot put one’s head in the sand,” asserted one CEO, “relevance requires responsibility.” Above all, they are sure that fostering curiosity and openness within their own organizations will be critical to meeting the challenges ahead. As one put it, “Being able to manage ambiguity is more important than ever… everything is in flux.” In the face of massive and far-reaching societal shifts, today’s CEOs face an historic opportunity to help lead and shape the world emerging.
