APRIL 2019 / NO. 2
TAGS: MANAGEMENT, ENVIRONMENT, INVESTORS, ANALYSTS, EXTERNAL, DISRUPTIVE LEADERS, ANTOINETTE RIJSENBILT, SUPERSTAR

Top management is not prepared for the challenges in the business environment

“The current generation top management is not ready for the challenges in the fast changing business environment their companies will face the next couple of years”
– research by Korn Ferry, April 2019
This quote is the key conclusion from research conducted by the international consultancy firm Korn Ferry amongst 800 international investors and analysts. Two/third of top management lacks the competency to manage successfully their companies through the ever changing external business environment. In additon they are not able to inspire and motivate their staff and employees. Over 80% of investors and analysts tell that leadership and vision are “leading” for their future investment strategies. Investors see leadership and vision as far more important than the financial performance during the past three years.
Based on research of 150.000 senior management profiles Korn Ferry tells us that the ‘disruptive leaders’ must rethink renewed future-driven company strategies, inspire their employees in such a process, have to act much faster and have to identify new ways of cooperation. The famous Dutch “polder consensus model” lacks the accellerator to boost things. The publication of our book ‘Big Boys Big Ego’s and Strategic Intelligence’ in 2015, based on international research of co-author Dr. Antoinette Rijsenbilt of Erasmus University, confirmed that strategic intelligence is the key solution to identify the dynamics of future change across the business environment. That’s the only way to countervail the lacking competences to manage the business environment.

The superstar phenomenon

McKinsey conducted research amongst 5.750 of the world’s largest public and private companies, each with annual revenues greater than US$ 1 billion. Key metric for superstar companies is economic profit which reflects the economic value. Superstar companies beat their markets and spend 2-3 times more on R&D than their peers. Strategy becomes ever more relevant. Since the 1980s Michael Porter confirms again-and-again how competitive strategies make the difference between the status-quo and future success: “strategy is about setting your company apart from the competition”. But how much does management really know about their counterparts in their markets. They think they know, which in fact isn’t so. How are you able to compete if you don’t have a continuous watch on competition, 24/7?

 

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