CEOs and ‘Strategic Empathy’: Navigating a Changing World
A recent book party, held at Blackstone headquarters and sponsored by executive search firm Spencer Stuart, celebrated the release of "The Life Cycle of a CEO" by Bob Stark and Claudius Hildebrand. This insightful work examines the career trajectories of every S&P 500 CEO of this century, revealing fascinating insights into the skills needed to thrive in today's dynamic business environment. The authors' research uncovered a surprising trend: most CEOs demonstrate their strongest performance during their first year, a period they term the "launch cycle." While this finding might seem counterintuitive – suggesting a yearly CEO rotation – it sparked lively debate among attendees. The discussion highlighted the need for adaptability and a fresh perspective, even if the implications of such a finding were far from clear-cut. A separate analysis by a different firm explored the ideal CEO departure timeline.
The book party panel featured several prominent CEOs, including Piyush Gupta of DBS Bank, Glenn Fogel of Booking Holdings, Jennifer Morgan of UKG, and Doug Peterson, then the outgoing CEO of S&P Global. A common thread emerged from their shared experiences: the vital importance of curiosity, creative thinking, diverse career paths, and prioritizing personal well-being. The linear career trajectory, once considered the gold standard for leadership ascension, appears to be increasingly less common among today's most successful executives.
This observation was further reinforced by conversations with Ed Camara, CEO, and Michael Ensser, Executive Chair, of Egon Zehnder, regarding their latest global CEO study. Their research emphasized the growing need for CEOs to grasp the complexities of the geopolitical landscape and integrate these understandings into their strategic decision-making processes. This requires a level of curiosity that extends far beyond the boundaries of their own industry, demanding the ability to connect seemingly disparate dots across business, politics, and societal trends.
Ensser coined the term "strategic empathy" to describe this crucial skillset. He highlighted a significant gap in the skill sets of many executives, specifically stating, "What most executives are missing is an understanding of how politics work.” Camara added, “Adaptability, self-awareness and the ability to have empathy to situations you have not lived yourself; those were not common in the traditional way of defining who has potential, that command-and-control leadership.” Both emphasized a shift away from the traditional command-and-control leadership model towards one that values adaptability, self-awareness, and an understanding of diverse perspectives.
The importance of a global perspective and an understanding of broader societal issues— impacting all businesses, not just one's own—has been a long-standing focus. A significant event, the Global CEO Forum, will be held in New York City on November 11th and 12th, focusing on these themes. This year's forum will feature an impressive roster of CEOs, including John Stankey of AT&T, Brian Cornell of Target, Joanne Crevoiserat of Tapestry, and Chris Hyams of Indeed, alongside prominent figures from government and other sectors. Confirmed speakers include former U.S. Secretary of State Mike Pompeo, former Defense Secretary Leon Panetta, Gita Gopinath of the IMF, Jing Ulrich of JPMorgan Chase, and even Tom Brady.
Top News Stories:
Supercommuting CEOs Underperform: A recent study found that approximately 10% of U.S. CEOs engage in "supercommuting," traveling vast distances – hundreds of thousands of miles – to their place of work. This research reveals a surprising correlation: these supercommuting CEOs tend to underperform their peers. The study further indicates that this underperformance is even more pronounced if the CEO owns a boat or resides near a golf course, suggesting lifestyle choices may impact leadership effectiveness.
Salesforce CEO Critiques Microsoft's AI: Salesforce CEO Marc Benioff recently criticized Microsoft’s approach to artificial intelligence in an interview. He asserted that Microsoft has "disappointed so many of our customers" due to the perceived shortcomings and overselling of their enterprise AI products. Benioff suggests Microsoft exaggerated the capabilities of its AI offerings, leading to customer dissatisfaction.
CEO Whisperer on the Election: Jeffrey Sonnenfield, often referred to as a "CEO whisperer," commented on the upcoming election. He suggested that prominent business leaders, such as JPMorgan Chase CEO Jamie Dimon and Microsoft founder Bill Gates, are hesitant to publicly criticize a particular presidential candidate, fearing potential repercussions should that candidate win the election. Sonnenfield's insights shed light on the cautious approach some business leaders take in navigating the complexities of political discourse.
Other News:
Southwest Airlines' Decline: A detailed analysis examines the dramatic shift in Southwest Airlines' fortunes, from a beloved customer favorite to a target of activist investors. The article explores the factors contributing to this rapid decline.
American and European Work Ethics: The CEO of Norway's $1.6 trillion oil fund asserts that "Americans just work harder" than their European counterparts, attributing this difference to a higher "general level of ambition" among American workers.
Elon Musk and Political Alliances: An assessment of the potential impact of Elon Musk's political alignments on Tesla's business operations is presented, referencing the company's own risk factors.
PayPal Veteran's Bitcoin Venture: David Marcus, a veteran of PayPal, discusses his ambitious plans for Lightspark, his $175 million Bitcoin startup. He acknowledges the long-term commitment required, stating that the project might take the rest of his life to fully realize its potential.
Boeing's Potential Space Business Sale: Reports suggest Boeing may be considering selling its iconic space business, potentially to Jeff Bezos's Blue Origin. Discussions between the two companies have reportedly taken place.
Trump Media's Stock Outlook: An analyst predicts that Trump Media's stock will plummet to zero if a certain presidential candidate loses the election, potentially rendering a $4 billion stake worthless.
The New Gilded Age: An article argues that the current economic climate resembles a "new Gilded Age," characterized by significant layoffs and simultaneous increases in profits for CEOs and shareholders.
Bond Vigilantes' Election Influence: The article discusses the impact of "bond vigilantes"—investors who monitor government debt—on the election, indicating their disapproval of current economic policies.
These news items paint a picture of a complex and rapidly changing business landscape, highlighting the challenges and opportunities facing CEOs in the modern era. The need for adaptability, strategic empathy, and a global perspective emerges as a recurring theme, underscoring the importance of these qualities for effective leadership in an increasingly interconnected and uncertain world. The accountant shortage and the increasing skepticism of younger generations towards corporate leadership are additional factors adding complexity to the modern CEO's role. The rise of activist investors and political polarization further emphasizes the evolving nature of the business environment and the necessity of skillful navigation by CEOs.
