Business Transformation Requires Transformational Leaders

Klaus Meyer and Saul Estrin focus on a decision tree approach to managing exit strategies. The authors use Russia’s invasion in Ukraine as an example of complex situations that arise from major geopolitical disruptions. As companies try to extricate themselves from a country, they may need to consider whether a buyer can continue using its global names, what to do about promises to current customers (e.g., access to the App Store for Apple phones), and potential harm to the parent company from a sale. They must also consider the sticky issue of how the new owner will use critical assets (e.g., will they supply the military organizations deemed responsible for human rights abuses?).

Joo-Seuk Maing brings us his perspective on an era in which emerging countries and societies no longer blindly follow the West. Based in Seoul, South Korea, Maing is the Korea/Vietnam CEO for a German manufacturer of the wire harnesses that connect automotive components. From his vantage point, he sees several things executives should be paying more attention to, including energy prices, the investment outlook in China, and the need for strong business continuity plans beyond those for natural disasters (i.e., geopolitical tensions or unrest). Maing also believes companies doing business in Asia should consider more local talent for top positions.

Yuriy Adamchuk delves into repercussions from an actual, ongoing war — in Ukraine. The author’s company, Avenga, has 11 offices and 1,300 professionals in the country. Knowing the risks of an attack (based on the 2014 invasion and subsequent expert predictions of escalation), the company developed its Service Endurance Plan. Adamchuk tells us why the implementation and execution of that plan were so successful that no employees were seriously physically hurt in the war and operations continued without interruption. He also describes how the company has taken steps to emerge from the current crisis stronger than before the war began.

Douglas B. Fuller takes on the US’s chip “war” with China. Fuller says the US’s efforts in reshaping the global semiconductor industry by shifting activity away from China proves we are moving away from globalization and into de-risking. In other words, national security and supply chain resiliency now get (or should get) at least equal consideration from major economic powers. The author describes how the battle began (with Huawei’s efforts to expand its 5G infrastructure outside of China), the US’s multipronged regulatory response, and how companies should prepare for this new paradigm.

It is imperative to identify and explore the ways businesses navigate and excel in the face of geopolitical risk. In this issue of Amplify, our contributors explore the challenges raised by geopolitical risk through a variety of angles. This diverse perspective from a group of academics and practitioners provides insights into the impact of geopolitical risk on supply chains, leadership, business planning, and share price.

Why should business leaders develop strategies focused on biodiversity? First, businesses rely on ecosystems to produce and reproduce the variety of life that enables economic and social systems. Second, biodiversity decline (or collapse) poses reputation risks to businesses, and business leaders must anticipate and mitigate the risk of being targeted by activists. Third, life on Earth has inherent value that managers should help preserve rather than destroy. As we explore in this Advisor, biodiversity mini-publics can help managers successfully engage on all three issues.

Over the last four decades, there has been a proliferation of corporate diversity policies. By one estimate, more than 95% of organizations with more than 1,000 employees have some sort of diversity program. Generally, this push toward diversity has largely been prompted by a few interwoven factors. This Advisor takes a closer look at three of those factors.