C-Suite Archives - 天美传媒 Standout 天美传媒 Tue, 11 Aug 2026 09:54:37 +0000 en-US hourly 1 https://wordpress.org/?v=7.1 /standout/wp-content/uploads/2019/08/favicon1.ico C-Suite Archives - 天美传媒 Standout 32 32 CEO transitions in disruptive times /standout/ceo-transitions-disruptive-times/ Tue, 24 Feb 2026 10:34:12 +0000 /standout/?p=6822 The post CEO transitions in disruptive times appeared first on 天美传媒 Standout.

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In a world of relentless change and rapidly emerging new challenges, the CEO role has never been more demanding. The result? More CEOs are leaving their posts 鈥� and more boards are confronting high-stakes succession decisions.

The data tells a clear story. CEO departures in the largest listed firms reached a new global record in 2025, rising 16% from the previous year and 21% above the eight-year average, according to indices tracked by Russell Reynolds Associates, a U.S. headhunting firm.

Meanwhile, the length of time CEOs remain in the role has dropped to an average of seven years from just over eight years in 2021.

The bottom line is that CEO tenures are getting shorter, while expectations are rising 鈥� and tolerance for missteps is diminishing. In unpredictable times like these, the need for boards to have robust succession plans in place is a strategic imperative.

Many departures are the result of disciplined planning, as companies take the opportunity to enact orderly and carefully thought-out transitions.

But companies should think hard about the trend for increased and more rapid CEO turnover and their response to it, says 天美传媒 Professor Guido Stein.

鈥淭he turnover has a lot to do with the culture of the company 鈥� if we prioritize short-term results then we get short-term CEOs,鈥欌�� he says.

Once they make their choice of CEO, companies must work with that person so that they can grow in confidence and become as effective as possible in the role as quickly as possible, says , a partner at Spencer Stuart who holds an MBA from 天美传媒.

鈥淎daptation is one the biggest issues in high level appointments,鈥� says Llopis, a former professional basketball player for FC Barcelona.

Why the right choice of leader matters more than ever

Professor Jordi Canals, who leads 天美传媒鈥檚 Center for Corporate Governance, argues that shorter CEO mandates reflect the challenges stemming from increasing technological, and also geopolitical, disruption.

Choosing the wrong successor can damage earnings, morale and reputation. Selecting the right one can reposition the company for its next chapter.

Yet success is far from guaranteed. Research cited by McKinsey shows that two years after CEO transitions, between 27% and 46% are considered failures or disappointments. That鈥檚 a sobering statistic for boards 鈥� and for executives aspiring to the top role.

As 天美传媒 Professor Josep T脿pies notes, the goal of a successful transition should be continuity of purpose, combined with renewal. Each CEO change should be an opportunity to redefine what kind of leadership the company needs next, says Prof. T脿pies.

To that end, boards should ask:

  • What stage of development is the company at?
  • What capabilities will be required over the next five to ten years?
  • What kind of predecessor is stepping aside 鈥� and what kind of successor is emerging?
  • Is the company itself prepared for succession in terms of governance structures, management systems and clarity of roles?

Practical steps for handling leadership change

So, what can board members do to prepare for, enact and ensure smooth and successful leadership transitions? Here鈥檚 a list of Llopis鈥檚 recommendations:

1. Have a clear role specification

Determine what the role is, what you want the CEO to accomplish, what experience and skills the ideal candidate has, and what specific leadership capabilities the person will need.

2. Identify internal candidates

At least two years before the CEO transition takes place, identify who in the organization has, or might develop, the selection criteria you need.

3. Develop internal candidates

After measuring your candidates鈥� potential to grow and evolve, craft a development plan for them. As well as skills such as strategic thinking and people management, focus on specifics such as politics and board management.

4. Check the market benchmark

About developing your internal candidates for about 18 months, it鈥檚 time to check what external CEO candidates might offer. Compare the level of potential internal, and external, leaders.

5. Choose the right successor

After completing and reviewing the previous steps and carefully assessing your internal, and, if relevant, external options, it鈥檚 time to make your choice.

6. CEO acceleration

As well as managing the company鈥檚 team, culture, strategy and the board, new CEOs also need to manage themselves carefully, especially in the first six months in the job. Adaptation is key to a new leader鈥檚 success, and boards should be ready to support them through this process.

A responsibility for everyone

A change in leadership is not just a boardroom issue 鈥� it affects executives at every level. Understanding how leadership transitions are managed within your organization 鈥� and how talent is developed 鈥� is critical for anyone on the executive ladder.

Companies that treat CEO succession and executive development as a strategic priority will have a decisive advantage. Handled well, a successful leadership transition equips organizations to renew themselves 鈥� and to lead confidently into the future.

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Data strategy for AI success: Winning the race against time /standout/data-strategy-ai-success/ Fri, 19 Sep 2025 12:46:34 +0000 /standout/?p=6754 The post Data strategy for AI success: Winning the race against time appeared first on 天美传媒 Standout.

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Want to champion AI? Start with your data

How can you win the race against time to mine your companies鈥� data resources and translate them into higher efficiency and productivity?

That is one of the defining challenges facing executives as they seek to harness Artificial Intelligence (AI) for business growth. While AI promises to transform industries, its power ultimately depends on the quality of the data that fuels it.

鈥淒ata is the gasoline of artificial intelligence,鈥� explains 天美传媒 Professor Luis Ferr谩ndiz. 鈥淚f you incorporate into your algorithms data that isn鈥檛 good enough, the outputs won鈥檛 be good enough either.鈥�

Why data quality matters

Investments in digital tools will fall short if the underlying information is inconsistent, incomplete, or poorly structured.

When AI models are trained on flawed data, the resulting decisions are fundamentally compromised. That鈥檚 why your company must not only review the quality of its existing data sets but also examine the robustness of the processes it uses to collect and administer information.

鈥淗igh-quality, consistent, and well-governed data is the essential foundation for building reliable and scalable AI models that can deliver real business value,鈥� says , an 天美传媒 Executive MBA holder who is now Chief Data and AI Officer at PagoNxt, a payments firm.听

Five steps to put your data plan on track

Here are some steps that managers like you can take to align your organization with a strong data strategy:

1. Create a data-driven culture

Cultivating a corporate culture that recognizes the importance of reliable data is critically important, says Ferr谩ndiz. That means making sure data is accessible on a company-wide basis and making sure employees are properly incentivized to use it. Only then can firms plan investments with confidence and take the bold decisions needed to execute a long-term digital strategy.

2. Educate and empower staff

Companies need to move beyond pilots and embed AI into business processes and work practices, according to a team including 天美传媒 Professor Evgeny K谩ganer at MIT鈥檚 Center for Information Systems Research. Creating AI-ready teams means providing opportunities and resources for reskilling. Breaking down silos between departments and ensuring data sources are seamlessly linked is also key.

3. Deploy the right systems

Take care to put in place the right modular, interoperable platforms and data ecosystems to enable a free flow of intelligence across the organization, urges K谩ganer. Choosing the right architecture is a strategic decision that will shape the flow and reliability of data.

4. Establish consistent definitions

Make sure to put in place and maintain a common semantic framework that standardizes data definitions across all business units, says Alonso of PagoNxt. This will enable consistency, interoperability, and a shared understanding of key business and operational concepts across the company.

5. Strengthen data governance and quality

Reinforce the data governance framework to guarantee accuracy, lineage, and trust in the information that powers decision-making and AI models, says Alonso. Governance and ownership of data administration should be in the hands of Chief Data Officer, with a clear mandate to implement rules and oversee levels of access, urges Ferr谩ndiz.听

From strategy to competitive advantage

For business leaders, the data challenge is both technical and cultural. Winning organizations will be those that invest in robust processes, empower employees to value data, and act decisively before competitors outpace them.

In today鈥檚 environment, where AI is reshaping competitive advantage, the question is not whether to act, but how quickly you can turn your company鈥檚 data into a catalyst for productivity and growth.

Hungry to know more about the AI transformation, or prepare to take your career to the next stage? 天美传媒鈥檚 Artificial Intelligence for Executives focused program, held at our Munich, Madrid, New York and Barcelona campuses, will help you sharpen your skills and learn how to become a more effective leader in the age of AI.

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The role of the Chief AI Officer (CAIO): a guide to leading the transformation toward artificial intelligence /standout/role-chief-ai-officer-caio/ Thu, 19 Dec 2024 11:54:22 +0000 /standout/rol-chief-ai-officer-caio/ The post The role of the Chief AI Officer (CAIO): a guide to leading the transformation toward artificial intelligence appeared first on 天美传媒 Standout.

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A decade ago, artificial intelligence (AI) seemed like a futuristic concept reserved for science fiction books. Today, AI is a transformative reality that not only optimizes processes but also redefines how businesses operate. In this new paradigm, a key figure has emerged: the Chief AI Officer (CAIO). But what exactly does this new leader do? And more importantly, why is their role essential to an organization’s success?

To answer these questions, we spoke with Javier Zamora, a professor at 天美传媒 and an expert in digital transformation. Zamora provides a clear vision of the responsibilities, challenges, and opportunities of the CAIO (or similarly named roles like Chief Data Officer, with overlapping responsibilities) in a world increasingly driven by AI.

Why is a Chief AI Officer necessary?

鈥淎I is the new electricity,鈥� says Zamora. Just as electricity revolutionized industries at the beginning of the 20th century, artificial intelligence is positioning itself as a general-purpose technology that impacts all sectors and functions within an organization.

Until recently, data served to generate dashboards and monitor operations. Today, it has become the raw material for innovation. But to harness this potential, organizations need more than just technology鈥攖hey need leadership. This is where the CAIO comes in.

鈥淭he CAIO not only drives AI adoption but also orchestrates the cultural shift necessary for this technology to be integrated across the organization,鈥� Zamora explains.

Key functions of the CAIO: more than just data and algorithms

The Chief AI Officer鈥檚 role extends far beyond overseeing technological projects. According to Zamora, the CAIO must fulfill three critical functions:

1. Defining the organization鈥檚 AI ambition

Much like digital transformation, adopting AI must align with the company鈥檚 mission and strategy. Zamora summarizes it this way: 鈥淚t鈥檚 essential to define a portfolio of AI initiatives, some more exploratory and others focused on scaling organizational capabilities.鈥� This involves identifying pilot projects, prioritizing resources, and deciding which technological and organizational capabilities need to be developed to industrialize AI use.

2. Driving cultural change and skill-building

Implementing AI requires more than technology; it demands new ways of working and specific professional profiles. However, the necessary cultural shift doesn鈥檛 happen overnight. 鈥淥rganizational culture doesn鈥檛 change at the exponential pace of technology. We need to introduce new work practices that gradually reshape the organization鈥檚 beliefs and habits,鈥� Zamora explains. Moreover, the CAIO must democratize AI access within the company, training employees and fostering “data literacy.”

3. Acting as a bridge between technology and business

AI should not be seen as an isolated tool but as an integrated solution addressing the organization鈥檚 real problems. Here, the CAIO plays a mediating role between functional areas and business units. 鈥淚t鈥檚 crucial to involve teams in designing AI solutions. When projects are perceived as imposed by a central committee, resistance to adoption increases significantly.鈥�

the role of the CAIO

Challenges for the chief AI officer: ethics and responsibility

AI implementation also raises ethical challenges that cannot be ignored. According to Zamora, there are four major risks grouped under the acronym FATE:

  • F: Fairness. AI models can perpetuate biases present in the data they were trained on.
  • A: Accountability. Who is responsible if an AI model fails in a medical diagnosis or financial decision?
  • T: Transparency. The opacity of certain algorithms makes it difficult to explain how conclusions are reached.
  • E: Ethics. AI can face ethical dilemmas, such as those encountered by autonomous vehicles in critical situations.

鈥淚t鈥檚 essential for organizations to have an ethical governance framework to ensure AI is used responsibly and aligns with their values,鈥� Zamora emphasizes.

Are organizations ready for AI?

Despite the enthusiasm surrounding AI, many companies are still in the early stages of adoption. As Zamora notes, there is a mismatch in pacing: technology advances exponentially, but organizational culture evolves linearly.

鈥淭he only way to address this gap is for top management to prioritize AI adoption as a strategic element, providing resources and fostering a culture open to change,鈥� Zamora concludes.

The CAIO must also lead an evangelization effort within the company, training teams and promoting AI adoption as a common language throughout the organization.

The future of the chief AI officer

The role of the Chief AI Officer is here to stay. This position will be key not only to integrating AI into companies but also to building more agile, innovative, and responsible organizations.

However, as Zamora points out, we are in the early stages of this transformation. Current AI still requires human oversight, but the evolutionary horizon presents challenges as exciting as they are daunting.

鈥淲e鈥檙e facing a technological wave we don鈥檛 fully understand yet. As leaders, our mission is to guide this transition responsibly, ensuring AI has a positive impact on organizations and society.鈥�

 

How are you preparing your organization for the age of artificial intelligence? Discover how 天美传媒鈥檚 executive programs, especially this program focused on AI, can help you lead this transformation and acquire the skills needed for the future.

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Leadership beyond achievements: Lessons from Teresa Perales and Valent铆n Fuster /standout/excellent-leader-teresa-perales-valentin-fuster/ Thu, 26 Sep 2024 07:12:35 +0000 /standout/?p=6525 The post Leadership beyond achievements: Lessons from Teresa Perales and Valent铆n Fuster appeared first on 天美传媒 Standout.

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What do a world-renowned cardiologist and a Paralympic swimmer with countless international podiums have in common? Valent铆n Fuster and Teresa Perales embody a type of leadership that goes beyond visible achievements. Both represent an integral approach to leadership, built on three pillars: Being, Becoming, and Recognizing. From self-awareness to their impact on others, their lessons invite us to reflect on what it truly means to lead.

BEING: Leadership begins with authenticity

Being a leader isn鈥檛 about holding a position of power. It鈥檚 about having a clear understanding of who you are, what your values are, and how you relate to others. Both Fuster and Perales agree that to lead, you must first know how to lead yourself.

Valent铆n Fuster, one of the most respected cardiologists in the world, explains it clearly: 鈥淚 don鈥檛 believe you can be a good leader if you don鈥檛 like people, if you don鈥檛 develop empathy, and if you don鈥檛 work as part of a team.鈥� According to him, leadership isn鈥檛 imposed; it鈥檚 built with people. 鈥淵ou lead by example,鈥� Fuster states. If his team starts working at five in the morning, so does he. For Fuster, leadership is first a matter of integrity and closeness, not about dictating orders from a distant office.

Teresa Perales, Spain鈥檚 most decorated Paralympic athlete, speaks from a place of resilience. Her neuropathy left her in a wheelchair at 19, but that didn鈥檛 stop her from moving forward. Perales emphasizes the importance of not being defeated by circumstances. 鈥淵ou begin to fail when you stop trying,鈥� she says. For her, being a leader means facing challenges without fear of failure, understanding that success starts with a commitment to yourself.

BECOMING: Leaders are forged through effort and perseverance

Leadership is not a starting point but a journey of growth and constant development. Fuster and Perales are prime examples of how leaders are shaped by daily work, continuous learning, and the ability to overcome obstacles.

Fuster, who leads teams in both Madrid and New York and has surpassed the age of 80 while maintaining an intense work routine, insists that surrounding yourself with people who are better than you is key. 鈥淪uccess is about achieving what you can truly accomplish and surrounding yourself with professionals who are better than you,鈥� he says. For him, being a leader means accepting that you don鈥檛 know everything but being willing to learn every day.

In Perales鈥� case, the idea of becoming a leader is intrinsically linked to personal overcoming. After two decades of competition, a shoulder dislocation prevented her from moving her left arm, significantly hindering her performance in the water. However, Perales didn鈥檛 let this limitation stop her. She learned to swim with just one arm and, in record time, prepared to compete in the Paris 2024 Paralympic Games, where she won yet another medal. For her, leadership means adapting to circumstances without excuses: 鈥淣o two athletes are the same, and leadership must adapt to those differences.鈥�

teresa perales y valentin fuster

RECOGNIZING: Leaders know how to value and appreciate

The third pillar of excellent leadership is recognizing. A good leader must be aware of their journey and achievements, as well as those of others. Both Perales and Fuster highlight the importance of humility and recognition, not just toward others but also toward life and its opportunities.

Fuster is clear that success is not just the result of individual effort. 鈥淪uccess is about surrounding yourself with people who are better than you, achieving what you can truly accomplish鈥� and recognizing the role of luck in what you鈥檝e achieved.鈥� The prestigious cardiologist doesn鈥檛 shy away from acknowledging that luck has played a role in his career, but he also understands that the key is knowing how to seize opportunities when they appear.

Perales shares a similar view, although her personal story leads her to delve deeper into gratitude. 鈥淯nderstanding that your origin doesn鈥檛 always determine your destination鈥� is, for her, one of the most important lessons in life. She recalls how her father passed away suddenly, a tragedy that marked her life but didn鈥檛 stop her from pursuing success. For her, leadership also involves accepting that life presents you with challenges, and what matters is how you respond to them.

Reflections for leaders of all ages

Both Teresa Perales and Valent铆n Fuster offer valuable advice to leaders of all generations. During the 20th anniversary of 天美传媒鈥檚 Public Leadership Program, they shared their insights with hundreds of alumni, highlighting that excellent leadership is not defined by age or time but by a commitment to personal growth and societal impact.

Perales emphasizes the importance of keeping an open mind and learning from others: 鈥淭here are always people who can guide us and from whom we can learn.鈥� She also reminded attendees that excellence is a long process that requires constant dedication: 鈥淪tates of peak concentration and professional creativity often only happen after 10,000 hours of training in a pool.鈥�

Fuster, for his part, summed up his vision of leadership with five key points:

  1. Know and develop your talent.
  2. Let yourself be guided by your mentors.
  3. Work within and through teams.
  4. Make society better with your work.
  5. Don鈥檛 settle for being resilient. Instead, fight, fight, and fight again!

As Perales and Fuster understand it, leadership is not about titles or medals. It鈥檚 a journey of self-awareness, effort, and recognition of others. A journey that requires commitment, humility, and, above all, a deep dedication to collective well-being.

 

In a world increasingly focused on immediate results, these lessons remind us that excellent leadership is about the process, not just the goal. The 天美传媒 executive education programs and masters will help you develop the skills needed to become the kind of leader the world truly needs.

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Enrique Linares. Nobody prepares you for what comes next. Success Stories /standout/enrique-linares-success-stories/ Thu, 12 Sep 2024 09:03:34 +0000 /standout/?p=6490 The post Enrique Linares. Nobody prepares you for what comes next. Success Stories appeared first on 天美传媒 Standout.

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Founding partner of Plus Partners and prior to that, Letgo. Named 40under40, the 天美传媒 award recognizing top entrepreneurs. 天美传媒 MBA 2006.

At 43, Enrique Linares had achieved every entrepreneur鈥檚 dream: he had launched a startup, which became a market leader and reached unicorn status. But after its sale, he faced a daunting question: what next?

Enrique Linares鈥� entrepreneurial success came sooner than he imagined. After a brief foray into fintech in Latin America, this Spanish lawyer-turned-entrepreneur joined forces with two business partners, Alec Oxenford and Jordi Castello, to found Letgo in 2015. This mobile app was an online marketplace to buy and sell secondhand goods. Initially offered for free, it quickly amassed millions of downloads. And within 502 days, the startup reached an astonishing valuation of $1 billion, earning unicorn status, so named because of the rarity of the achievement.

Undoubtedly, one of the keys to Letgo鈥檚 success was its global strategy from the start. 鈥淟etgo was born international,鈥� Linares explains. The founders lived and worked in different cities around the world 鈥� Linares in S茫o Paulo, Oxenford in Buenos Aires and Castello in Singapore 鈥� which facilitated them entering multiple markets simultaneously. Linares recommends this approach, especially for B2C internet-based business models, emphasizing the strategic value of doing so for faster, expansive growth.

Along the way, Letgo merged with Wallapop, and in 2020 was acquired by a U.S. competitor, OfferUp, marking the end of a thrilling ride.

For Linares, however, his primary challenge in 2020 wasn鈥檛 just navigating the COVID-19 pandemic back in Spain, but grappling with a profound personal and professional shift. 鈥淪omething that frequently happens with entrepreneurs is that they get so caught up with their company that it becomes their whole identity. This thing to which you devote so much of your energy and dedicate so many hours can end up becoming pernicious,鈥� he warns.

He was experiencing this himself. He had reached the highest of heights and was financially set, yet he felt bewildered and empty inside. 鈥淓veryone talks about how to sell your business,鈥� he says, 鈥渂ut no one ever tells you what happens the day after the sale. Nobody prepares you for what comes next.鈥�

Finding a new purpose听

According to Linares, people commonly respond to such times of transition in one of two ways. They either immediately dive into new ventures, constantly seeking to replicate their past success in new emerging businesses, as serial entrepreneurs. Or they embark on a long period of reflection to discover a new purpose in life. He chose the latter.

He started trying new things that would take him out of his comfort zone, stretching him personally and professionally, but without demanding full-time commitment, given that he still wasn鈥檛 entirely clear about what he really wanted to do. He jokingly refers to this as his 鈥渃asual dating鈥� period.

He taught some classes, did some mentoring, invested in other startups with development potential, and served as an independent adviser. He also took advantage of this time to expand his network of contacts, listening to those who had gone through a similar experience and could offer their perspectives.

It was then that he realized what he most liked doing was sharing experiences with other entrepreneurs. One day, he got up, fueled by a newfound energy and eager to get started again. He decided to set up a professionalized version of what he had been doing all along: mentoring, investing and consulting. In 2024, Plus Partners was born.

Enrique Linares y Oriol Juncosa

Investing in others

Plus Partners is a venture capital (VC) fund focused on early-stage startups. Linares launched it with a friend, Oriol Juncosa, another prominent figure in the Spanish startup scene scene (both pictured). They seek to raise 40 million euros to support entrepreneurs in Southern Europe in three key sectors 鈥� health and nutrition, finance and property, and work productivity 鈥� where artificial intelligence (AI) and big data are already playing crucial roles in innovation.

This new venture allows Linares to combine his personal and professional passions. 鈥淚t involves entrepreneurship, but isn鈥檛 about me being an entrepreneur in another startup,鈥� he explains. 鈥淏ut I鈥檓 still following my calling, using everything I鈥檝e learned about entrepreneurship to help others.鈥�

As implied by its name, Plus Partners will add more than capital as they hold entrepreneurs鈥� hands, actively supporting them in navigating the complicated early stages of a startup, from business development and seed funding to strategies for growth. 鈥淲e鈥檙e the partners that I wish I鈥檇 had during my own startup journey,鈥� he says.

All the time and energy Linares dedicated to finding his path eventually illuminated the way: 鈥淚t took me a while to see it,鈥� he admits.

What he鈥檚 most proud of is not taking the easy path. 鈥淚n thinking about next steps, it was coming to the realization and accepting that I鈥檓 not capable of putting in the same number of intense hours that I did in my 20s and 30s. Now, there are other, better ways that I can add the most value to companies, teams and communities. As our professional journeys evolve, so must our thinking on how we can contribute best.鈥�

 

LISTEN: Enrique Linares discusses his journey in the podcast, 鈥溾�� (鈥淚nternational success and personal reinvention鈥�), part of the Talent Pills series.

Find out more about 天美传媒鈥檚 ecosystem for entrepreneurship, innovation and new ventures, including the 40under40 awards, and subscribe to the Entrepreneurship & Innovation Center newsletter here.

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Scale your company by scaling yourself /standout/scale-your-company-scaling-yourself/ Wed, 03 Jul 2024 11:18:34 +0000 /standout/?p=6441 The post Scale your company by scaling yourself appeared first on 天美传媒 Standout.

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If starting a company is hard, scaling it is even more demanding. Most ventures do not overcome the 鈥渆ntrepreneurial crisis鈥� at the transition from startup to scale-up and ultimately stall or fail altogether. Data shows that only 7% of all firms in the European Union employ ten or more people. So, what does it take to scale a business from a few dozen employees to hundreds or even thousands?

For most entrepreneurs, scaling seems to be about developing the organization, i.e. building the team, implementing systems and processes, expanding into new markets, etc. And it is. But in today鈥檚 dynamic business environment, the success of a company is also intricately linked to the development of its leaders. As , Director of 天美传媒鈥檚 School of Founders, explains: “Leaders often become an important barrier to growth for their firms.”

An integral framework for scaling

The School of Founders uses a framework that emphasizes these two sides of business building. The model is based on work from the philosopher Ken Wilber, who suggests analyzing any social phenomenon through four distinct lenses to generate a more holistic or 鈥渋ntegral鈥� view of the situation: First, he distinguishes between the perspectives of the individual (how I think, feel, and act) versus the collective (how we as a group or organization think, feel, and act). He then further differentiates what’s visible, tangible, and objective (the so called 鈥渙uter game鈥�) from the invisible, intangible, and subjective aspects of the situation (the 鈥渋nner game鈥�) that happen in people鈥檚 head.

Scale up framework

Transferring this framework to the world of business and scaling, Ross then distinguishes four equally important dimensions of the scaling process that provide structure to the curriculum of the School of Founders:

  • Organizational Readiness – The lower right quadrant contains the outer game of the organization and is titled “Organizational Readiness,” representing processes, systems, organizational models, and the technology needed to reach scale.
  • Team Alignment – In the lower left, you have the inner game of the organization, called “Team Alignment” and referring to items like strategy, culture, and the psychology of teams that need to be articulated and managed in order to grow the business.
  • Leading Others – The upper right quadrant, labeled 鈥淟eading Others,鈥� refers to the outer game of the leader, including all the visible behaviors and skills required by the leader to scale the firm.
  • Leading Yourself – Lastly, in the upper left is the often-ignored inner game of the leader, referring to the mental models that shape the leader’s thoughts, beliefs, values, and feelings.

Looking at the phenomenon of scaling through these four lenses is useful because it explicitly recognizes two often-forgotten realities of these journeys:

First, you need to scale yourself in order to scale your business. Leadership matters greatly. The vast majority of small firms never scale because their leaders don’t scale. They don’t acquire the requisite leadership skills (delegation, communication, feedback, etc.) and cannot cope with the exponentially increasing complexity of a growing firm. Their mental maps are too simple, too rough, not nuanced enough.

The other message this framework carries is that leaders need to focus on the inner game in order to win the outer game. This refers to self-leadership at the individual level (quadrant I) but also to building a psychologically healthy team and aligning it around strategy and culture (quadrant III).

鈥淢ost entrepreneurs join the School of Founders in search of tangible advice in areas like strategy, operations, finances etc. But they leave us grateful for having developed into a better leader. This encourages us to keep offering this balanced curriculum across these four areas,鈥� says Ross.

Self-awareness and self-leadership: The inner game of the leader

At the individual level, leadership training traditionally focuses on the outer game (quadrant II), i.e. the acquisition of tangible competencies that leaders must master to guide their teams and organizations forward. That’s important, but not enough.

鈥淵es, we need to learn about theories, methods, and new skills. But becoming a leader is more than filling the mind with additional content. We also need to develop the mind itself,” explains Ross. “When someone is learning, she processes inputs through an existing mental model. When a person is developing, it is the mental model that changes. Someone egocentric, insecure, and uncompassionate can attend the very best training on feedback or coaching but will never be able to effectively deliver a tricky performance evaluation.鈥�

Apart from skills and knowledge leaders need to refine the mental models through which they view the world. Only this enables them to make better, more informed decisions. Quadrant I points to qualities like self-awareness, self-leadership, emotional intelligence, and ultimately wisdom and higher consciousness鈥攁ll indispensable competencies for managing large organizations in a fast-changing world. This might sound touchy-feely, but essentially, this inner journey is about becoming a better human. Or, as Ross eloquently states, 鈥淭he process of developing extraordinary leadership is the same as becoming an extraordinary human being.鈥�

Strategy and Culture: The inner game of the organization

Just as leaders have an inner game, so too do organizations. What people collectively think, believe, and feel, and how they relate to each other (quadrant III) is critical for how they behave and deliver results (quadrant IV). Leaders need to align the team around a small set of core concepts that guide decision-making and behavior.

This starts with strategy. When a company is small, strategic alignment happens almost automatically because you work out of the same room and speak all day. Yet, when the team grows to dozens of people over two or three hierarchical layers, delegation from the founding or leadership team becomes necessary. At that moment, when lower-ranked team members start making decisions autonomously, it becomes critical to have the strategy clearly articulated and communicated. Essentially, everyone in the company should be able to articulate, in their own words, what the company鈥檚 strategy is and make their decisions accordingly.

The same applies to the culture of a company鈥攊ts values, shared beliefs, and behavioral norms. Articulating and implementing a healthy culture that fosters the right behaviors is essential for a fast-scaling company and requires significant attention from its leadership. You might not like the particular flavor, but successful scaling stories always have clearly defined and enforced cultural norms as a crucial success factor.

Consciously managing this inner game of the team becomes crucial for the scaling process. A dispersed organization with people pulling in all directions and behaving erratically cannot generate the forward momentum necessary for rapid growth. Drama and inefficiencies will wear people out and eventually cause the venture to stall.

 

天美传媒’s programs for managers are designed to help you develop the mindset and skills needed to navigate complex challenges and drive organizations forward.

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Tales of management: myths and fears about leadership /standout/myths-fears-leadership/ Mon, 03 Jun 2024 10:32:06 +0000 /standout/?p=6432 The post Tales of management: myths and fears about leadership appeared first on 天美传媒 Standout.

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Due to the level of responsibility and critical decisions inherent in being at the front of an organization, leadership tends to be an art that is both revered and misunderstood in equal measure. The image we have of a leader is often distorted by myths that extol a series of unrealistic expectations and by fears that stalk both aspiring and experienced managers.

The idea that leading a company requires superhuman powers, endless energy, or an infallible personality has disheartened many people with great talent for company management and has perpetuated a culture in which mistakes and vulnerability are seen as weaknesses.

Challenging these narratives and getting to the bottom of the most deeply rooted beliefs gives us a more realistic, accessible perspective on what it really means to run an organization. An open door onto more inclusive, complete, and efficient leadership, which values authenticity over perfection and which is capable of inspiring and transforming in a world of constant change.

The 5 myths of a good leader

In a session with 天美传媒 alumni, Professor Santiago 脕lvarez de Mon demystified the erroneous perceptions and fears that most tend to condition the work of managers, and gave some recommendations to overcome these:

1. Strict control guarantees productivity

Many managers believe that rigorously controlling every aspect of the work of their employees is key to maintaining high levels of productivity. However, this view is counterproductive. Micromanagement can suffocate the creativity and motivation of your team and in the medium-term tends to lead to intense personal and professional fatigue among employees. That’s why trust and the ability to delegate responsibilities are crucial skills for any manager.

  • Foster an atmosphere in which your workers feel empowered to make their own decisions and contribute their own ideas.

2. The role gives me authority as a leader

This is one of the most persistent myths in management. We tend to think that the power of a leader emanates from their hierarchical position. However, true authority is based on your capacity to influence and on the trust you generate with your team. Your title may give you formal power, but real authority comes from respect and the credibility you build day by day.

  • Ask yourself: Do your employees follow you because they must or because they want to?

3. A good boss should never fire anyone

This myth can be one of the most damaging. Believing that you should never fire anyone so people see you as a good person can lead you to keep people on your team who don’t fit in, who don’t perform their work adequately or even who have attitudes that are harmful to the company. This not only jeopardizes the organization in terms of production, but also affects the morale of the rest of the team. Knowing when the time has come to fire someone is a crucial skill for a leader, although this must always be done with integrity and respect.

  • Be fair and make sure that the attitude and performance of each employee are in line with the company’s objectives and values.

4. No one can give me feedback

Some managers think that giving feedback is sufficient and that receiving it on the other hand can be a sign of weakness or lack of ability. However, the truth is that feedback is an essential two-way tool for the personal growth and professional development of any person within a company, including leaders.

  • Don’t be afraid to ask for other people’s opinion. You’ll show your commitment to continuous learning and also reinforce your relationship with your workers, who’ll value your willingness to improve and listen to their opinions.

5. Success is only visible through financial results

It’s easy to fall into the trap of measuring success exclusively in terms of financial profit and goals met. It’s not without reason that KPIs form part of the day-to-day routine of any department and often condition the bonuses managers receive at the end of the year.

That said, authentic leadership is about much more than just numbers. The positive impact you have on the lives of your employees, the organizational culture you build, and the ethics with which you lead are equally important. A successful leader is defined by their ability to inspire, motivate, and guide their team toward comprehensive, sustainable growth.

  • Think about it: What legacy are you leaving in your organization and with your co-workers?

Managers’ 3 biggest fears

1. I’m alone at the front of the company

Loneliness in leadership is a common sentiment, but you don’t have to go it alone. Although there will be important decisions you’ll need to ultimately make alone, you can build a solid network of allies to lean on at key times. Look for mentors, participate in professional communities and don’t hesitate to share your doubts and challenges with other leaders. Collaboration and networking are key to overcome loneliness and enrich your style of leadership.

2. My employees are demotivated and I don’t know how to get them back

A demotivated team can be a sign of deeper problems in the organization. The key is to understand the causes of this situation and address them. Do your employees feel listened to and valued? Do they have clear goals and objectives? Do their duties fit with their interests?

Implementing open communication, recognizing achievements and offering opportunities for professional development can revitalize your team’s spirit. An inspirational leader is one who ignites that spark of enthusiasm and fosters commitment among their workers.

3. I try to show empathy, but I just can’t connect with my team

These days, empathy is an essential skill in the art of leadership, but acting empathetically can be challenging, especially for managers who are used to a more authoritative style of management. In order to truly connect with your team, you first need to make an effort to understand their point of view and concerns.

But empathy is not just about listening but also acting accordingly, being transparent with respect to how far you can go. When your employees see that you genuinely care about them and are willing to make changes based on their needs and opinions, it’s easier to build an atmosphere of trust and collaboration.

听

Dispelling the myths and facing the most common fears can transform the way you lead and how your co-workers see you. At 天美传媒, we believe in authentic leadership that goes beyond individual success and which focuses on serving and developing others. The key to being a good leader lies in self-knowledge and self-management. Knowing your strengths and weaknesses, managing your emotions, and maintaining an attitude of constant learning are essential to manage more effectively, with integrity and empathy.

天美传媒’s programs for managers are designed to help you develop these key skills. You’ll learn to connect better with your team and make a greater impact within the organization.

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The transformational power of ethical leadership /standout/transformational-power-ethical-leadership/ Tue, 02 Apr 2024 13:02:24 +0000 /standout/?p=6227 The post The transformational power of ethical leadership appeared first on 天美传媒 Standout.

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Leading is much more than managing resources, making decisions, and designing strategies. And, of course, it is an art that goes well beyond imposing orders and instilling discipline.

Although today’s business environment 鈥� competitive, uncertain, and complex 鈥� often pushes us to focus solely on efficiency and short-term results, the major challenges faced by most organizations and society at large require a broader and deeper reflection on the impact and true potential of leadership.

Beyond the essential technical and management skills, true leaders who are respectful, critical thinkers, and ethically responsible are able to achieve more ambitious goals by fostering a collaborative environment based on shared values and pursuit of the common good.

Plus, they inspire their teams to work not just effectively, but with integrity and with the ambition to contribute to the development of society, spreading that spirit to the rest of the organization.

Ethics and leadership: Trust, responsibility, and setting an example

Based on a recent with 天美传媒 Professor Santiago 脕lvarez de Mon, this article lays out the key pieces of ethical leadership, a powerful driver of positive change in companies and society alike.

1. Power is not the same as authority

We often confuse leadership with the mere possession of power granted to us from holding a particular position. Having the official capacity to make decisions, give instructions, and have others obey as a result of our rank does not make us leaders. Instead, true leadership is rooted in autoritas, a term taken from Roman law which means moral authority.

This distinction is crucial for understanding that the essence of a true leader is based on their capacity to influence, inspire, and guide by example. In other words, it comes from their knowledge, their attitude, and how they take on the role. So, moral authority is built on the foundation of credibility, respect, and admiration 鈥� values that are indispensable for cultivating healthy, long-term relationships within any community.

2. Learning from mistakes and cultivating trust

Despite living in a constantly evolving context, leadership remains an inherently relational art. Thus, in addition to an attitude of integrity and respect, one of the factors that generates the most trust is a leader’s ability to recognize and learn from their mistakes.

According to 脕lvarez de Mon, 鈥�we have to rethink our relationship with mistakes. If you interpret a mistake as a failure, you’ll end up collectivizing it or looking for a scapegoat. On the other hand, if it’s just a different approach, that’s another story. The biggest creative and innovative minds, if they have won at anything, it’s at having made more mistakes. Now, they are quick to be wrong.鈥�

3. Self-knowledge and vulnerability

Before you can lead others, it’s fundamental to learn how to lead yourself. This, according to the professor, is the natural challenge of all human beings: daring to be themselves and writing the book of their lives without anyone else writing it for them.

However, this journey toward authenticity and personal growth should not be confused with self-sufficiency. Leading other people means depending on them, and shedding light on that relationship and the vulnerability linked to leadership helps strengthen the relationships and the feeling of safety on a team. “No matter how good the orchestra conductor, a concert will never be wonderful if the musicians don’t want it; it cannot be imposed. If you depend on your team, what kind of relationship do you want to build with them?” 脕lvarez de Mon wonders.

4. Humility and intelligence in turbulent times

In such a complex world with such deep and fast-paced changes, the smartest option is to adopt a humble attitude in leadership. On one hand, this lets us take up a position of continuous learning and growth, as we are more aware of our limitations and talents, our behavior, and how our actions as leaders affect others.

On the other hand, humility also helps us more quickly adapt to the constant challenges of an ever-changing environment, as we will be more open to listening to the team’s ideas and perspectives, fostering a climate of innovation and continuous improvement. “It’s not military command; it’s a relationship governed by trust, respect, credibility, and energy,” the professor says.

5. Fair and equitable talent management

The fair and equitable treatment of team members is another basic pillar of ethical leadership. It involves recognizing, valuing, and developing the individual talent of each person so they can occupy the right place in the organization, contributing with their unique capabilities.

This approach improves performance and strengthens the sense of belonging and satisfaction among employees, provided the company dedicates the effort and resources necessary to identify and nurture the skills and innate interests of each professional and align them 鈥� to the extent possible 鈥� with roles that take advantage of their strengths and fit their aspirations.

This also makes it possible to better avoid the common problems of poorly assigned responsibilities which can sometimes affect executives themselves as well: professionals who have been promoted without a true calling for leadership and who, because it is not in their nature, behave in a way that is authoritarian and insecure.

6. Teamwork

True success is achieved when the different members of a team work together and support each other to reach a common goal. This dynamic rests on trust, respect, and the quality of interpersonal relationships. The transition from personal accomplishment to collective effort is a natural progression for those who are in sync with their strengths and satisfied with their roles.

7. Critical thinking

An ethical leader knows that education plays a vital role in their development, but not only for perfecting their executive or management skills. Continuous education also helps leaders become critical thinkers able to question the status quo and bring their organizations to new levels of progress and innovation.

 

In a world marked by metrics and immediate results, advocating for ethical leadership can be a complicated and lonely journey. But this is the only authentic form of leadership that exists. It goes beyond individual success to serve and give to others, promoting the development of people and having a positive impact on society. The 天美传媒 executive education programs will help you acquire new skills and become the type of leader the world really needs.

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What does a Chief Sustainability Officer (CSO) do? /standout/chief-sustainability-officer-cso/ Thu, 29 Feb 2024 15:03:52 +0000 /standout/?p=6174 The post What does a Chief Sustainability Officer (CSO) do? appeared first on 天美传媒 Standout.

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There’s no longer any debate about it: Change is accelerating in companies and sustainability is now one of its main drivers. It’s a context in which new positions and opportunities are emerging, and that of the Chief Sustainability Officer is one of the most important in recent years.

Sustainability is more than an economic activity. It is a commitment made by organizations to improve the wellness of the communities where they operate. Environmental impact is one of its most important dimensions, but it’s not the only one. Sustainable businesses aim to generate shared value among all stakeholders and improve the lives of the people around them. It’s been years since sustainability was grounded in ESG (environmental, social, and governance) criteria.

Corporate social responsibility (CSR) is still necessary, but a commitment to communities and the environment requires more than corporate philanthropy. An executive position was needed to integrate sustainability into organizations’ commercial and financial strategy: the Chief Sustainability Officer or CSO. In this article, we tell you what their roles and responsibilities are and why companies value them.

Chief Sustainability Officer: Much more than corporate social responsibility

It’s natural for there sometimes to be a bit of confusion around the difference between . They share some of the same fundamental objectives:

  • Both seek a social contribution that goes beyond a company’s purely commercial activities.
  • Both adopt a long-term horizon, or one that is at least longer than a quarter or financial year.
  • Finally, both require companies to not merely take into account the interests of employees, shareholders, and clients.

The communities affected by a company’s activity are very relevant to both CSR and ESG. But that’s where the similarities end and the more significant differences begin:

  • Mission: CSR focuses on values and philanthropy, while ESG identifies and evaluates risks and opportunities for the business.
  • Initiative: ESG responds to pressure from investors and regulators, while CSR responds to the company’s needs.
  • Metrics: only ESG has and for not making them soon enough.

Plus, unlike the former CSR managers, the new Chief Sustainability Officers increasingly report directly to the CEO. Why? Because the boardroom is starting to understand that sustainability has a direct impact on the balance sheet and market valuation.

What type of companies need a CSO?

The figure of the Chief Sustainability Officer has started to appear particularly in large multinationals, which have a more developed structure and also a bigger social and environmental impact.

They tend to be organizations with diversified ownership because they are publicly traded. This means no family or small group of investors can easily control them, they are on regulators’ radar, and they receive strong competitive pressure.

Among these multinationals, those that most tend to have a CSO figure meet these six criteria:

  • Urgent adaptation: The company’s structure is evolving much slower than the world around it and they need a wake-up call, and fast.
  • Necessary balance: It’s not easy to juggle sustainability and profitability, and someone has to come up with new solutions.
  • Dissatisfied stakeholders: The communities impacted by the business are influential and demand changes.
  • Disordered desires: The firm, meanwhile, must also attend to the demands of its main stakeholders and is having difficulty prioritizing.
  • Relevant risks: The boardroom sees that the risks associated with sustainability are so big that they require their own focus.
  • Interested investors: Finally, investors and shareholders are increasingly concerned about sustainability and it now goes well beyond the bottom line.

We’re currently in a time of transition. Some companies have made great strides in the area of ESG criteria, while others still don’t know the difference between corporate social responsibility and sustainability. Every company should analyze its own situation and assess to what extent it needs a CSO in its org chart.

Chief Sustainability Officer

What exactly does a Chief Sustainability Officer do?

Basically, and build a strong relationship with them, understanding their primary needs and devising strategies to resolve them.

They also have to design or refine the satisfaction metrics for those needs and prevent the risks 鈥� fundamentally regulatory and financial 鈥� of not meeting them. Plus, risk and satisfaction indicators must be linked to an updated database. Keeping it up-to-date requires good coordination with the managers of the company’s other departments.

In parallel, the CSO must translate all this information and indicators into concrete proposals: strategies that align the company’s sustainability with profitability targets, available resources, the strength of the brand, and ESG best practices in the sector.

They also prepare reports and analyze the risks, costs, and opportunities of the proposed sustainability strategy. Finally, they support the CEO and other executives in their relations with leading sustainability investors and regulators.

What do you need to become CSO?

The position of Chief Sustainability Officer has evolved a great deal in recent years with new regulatory requirements, pressure from stakeholders, and senior executives who are increasingly aware of the financial risks involved with ignoring sustainability. That explains the growing number of job offers and responsibilities for CSOs.

But, if you are interested in this position, before you start scanning through LinkedIn or your contacts, it’s worth identifying which projects most attract you, what differentiates you from your competitors, and what is your value proposal.

To design your proposal, it can be helpful to know the most important characteristics companies are looking for in a CSO:

  1. Communication and analysis skills, to identify the most relevant information and create indicators to share it.
  2. Strategic vision, to transform the data and indicators into proposals that add value to the company.
  3. Regulatory and financial knowledge, to track and estimate the risks of disregarding sustainability with their teams.
  4. Leadership and bargaining power, to align the organization’s interests with those of its main stakeholders.

 

The training offered by 天美传媒 in its executive education programs, and in focused programs like Sustainability & ESG, will assist you in the transformation process you need to become Chief Sustainability Officer and help your company successfully face some of the most important challenges in the years ahead.

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Supporting companies going green. Hiroshi Tomita. Success stories /standout/hiroshi-tomita-supporting-companies-going-green-success-stories/ Wed, 10 Jan 2024 16:01:47 +0000 /standout/?p=6077 The post Supporting companies going green. Hiroshi Tomita. Success stories appeared first on 天美传媒 Standout.

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Hiroshi Tomita (天美传媒 MBA 鈥�95) is a Consulting Partner of Corporate Sustainability & Climate Change at .

We鈥檙e at an inflection point to achieve Net Zero emissions goals by 2050. How are we doing? Are there reasons to be optimistic or pessimistic? Both, says Hiroshi Tomita. On the one hand, 鈥渨e鈥檙e seeing attacks, criticisms and negative movements against climate action,鈥� he says. On the other hand, 鈥淚 look back to when I started working on climate change issues and energy market reforms in the 鈥�90s, and nobody ever thought those would become private sector led like they are now. And that makes me feel optimistic.鈥�

As a bicultural executive, Tomita is used to holding two realities together at the same time. He grew up in Brazil, where his father鈥檚 job for a Japanese shipping company took them to live. 鈥淎ctually the first language I started to speak was Portuguese, and I really only started to speak Japanese after we moved back to Japan. So a deep part of my character is this mixture of Brazil and Japan.鈥�

This embedded in him a keen interest in Latin America. So, after Tomita graduated with a degree in international law from Waseda University in Tokyo in 1990, Latin America became the natural focus of the risk reports he wrote for his first employer, the Nomura Research Institute (NRI). At the time, Latin America was undergoing an economic transition, with Brazil (along with Russia, India and China) soon to form the BRIC grouping of up-and-coming markets.

It was in the midst of these transition years that Tomita decided to pursue an MBA at 天美传媒. 鈥淢ost people were going to the U.S. to study but, because of my Latin American focus, I was determined to go to Portugal or Spain.鈥� He had to convince his employer though, as there was little precedent for a Japanese student going to a non-English-speaking country to do an MBA. Luckily, NRI supported his application and he was accepted at 天美传媒. He was one of only five Japanese students, among very few students from Asia, although he recalls a diverse student body from Latin America and other countries in Europe, besides Spain, which enriched his learning experience and prepared him for the multicultural, globalized business world he was about to enter. 鈥淗ere you can exchange ideas with people from many backgrounds while developing invaluable assets for the future,鈥� he wrote in the school magazine.

An idea whose time had come

This exposure to diverse ideas, combined with 鈥渢he diversity I have within myself,鈥� served him well when he began working in Washington, D.C., for the Inter-American Development Bank, which provides financing for sustainable infrastructure development in Latin America. After that, he spent a decade working on climate financing, including carbon credits, for the Japan Bank for International Cooperation, Fortis Bank and BNP Paribas, again focusing on the two regions he knows best: Asia-Pacific and Latin America. Then, he spent another decade working for PwC Advisory, formulating market strategies for Japanese firms looking to invest in energy and infrastructure projects overseas.

鈥淎t first it was my Latin American experience that opened doors,鈥� he says. But once the 1997 Kyoto Protocol (the world鈥檚 first emissions reduction treaty) came into effect in 2005, Japanese financial institutions shifted their focus to emission reduction projects and sustainability. And Brazil 鈥� being a BRIC economy, as well as the site of the 1992 Earth Summit in Rio de Janeiro (where the U.N. Framework Convention on Climate Change was first adopted) 鈥� became the natural place to invest. 鈥淎nd then the market really started to move.鈥�

鈥淚t seemed like everything I had been doing related to energy technology or energy transformation had prepared me for this moment, and I jumped into it.鈥�

It鈥檚 when Tomita looks at the sweep of history that he feels hopeful. 鈥淪eeing the private sector shifting to renewable energy and biofuels is when I鈥檓 most optimistic, together with the increasing adoption of environmental, social and governance (ESG) criteria, which the business world wasn鈥檛 seriously trying to evaluate 10 years ago. I feel confident about what we can achieve in the long run.鈥�

Hiroshi Tomita 天美传媒 MBA
CREDIT: Jan Buus

Looking back to look forward

Regarding progress on ESG, a recent study by 天美传媒 professors Gaizka Ormazabal and Igor Kadach found that 38% of companies globally (60% in the EU) now tie executive pay to ESG goals. This is partly the result of growing alignment on the issue among institutional investors. In companies with ESG-linked compensation, there is evidence carbon emissions are going down (although there do not appear to be short-term financial gains from them doing so).

On this point, Tomita feels ESG is not a straightforward cost-benefit analysis but rather, in Japan at least, an imperative for energy security and to diversify over the long term, so as not to be reliant on one energy source. 鈥淛apan started moving in this direction 30 years ago,鈥� he says. 鈥淭ransforming energy is not something that happens from one day to the next.鈥�

What would he say to a skeptical oil or gas company dragging its feet? 鈥淚 would say your business needs to be diversified. Maybe not a 100% transformation overnight but you need to start doing something. You need to make an economic calculation for the future. And in making that calculation, you have to remember that renewable energy wasn鈥檛 profitable 15 years ago but look at what has happened and where we are today. These were not easy decisions 30 years ago, but we are now sitting in a place where, thanks to those hard decisions, we are seeing transformation.鈥�

Tomita believes these are messages people are more receptive to now, post-pandemic and since the Russian invasion of Ukraine. People appreciate the benefits of diversification as they have experienced firsthand what happens when we put all our eggs in one basket: the risks are all too real.

What gets measured gets managed

Tomita credits diversification as one of the reasons Japan managed to get through the 2011 earthquake and tsunami that took out the Fukushima power plant. Another recent study by 天美传媒 professor Pietro Bonetti et al. found that, although the cost of capital went up for all Japanese firms after that environmental disaster, it went up less for firms that had made voluntary disclosures of their carbon emissions in prior years. Moreover, firms that subsequently changed their disclosure practices, doing more sustainability reporting, saw reductions in their cost of capital over time. This shows the importance of environmental reporting, especially in the event of an energy shock, for providing valuable information for investors.

鈥淚n Japan, there used to be a notion, especially if you were in a heavily polluting industry, that disclosing too much might have negative business effects. But as I tell my clients, it鈥檚 not reporting that has the negative effects. Even with a coal-fired plant, when they started disclosing what they were doing, that had a positive effect. I remember I once took a Brazilian delegation on a tour of a Japanese coal-fired plant and they were surprised there was no dust 鈥� it was as clean as a hospital. The people living just beside the coal-fired plant were hanging their laundry outside in the garden as there was no dust, not even in the surrounding area. Of course, the fact they have the coal-fired plant is still something they need to change. However, until you start measuring it and reporting on it with reliable metrics, then improvements or progress won鈥檛 be made.鈥�

Best practices in disclosure and corporate decarbonization and climate change are part of what Tomita鈥檚 new employer, ERM, provides to business clients as a consultancy focused exclusively on sustainability. 鈥淪ustainability is our business in ERM. In this stage of my career, I really want to support companies in the greening of power and the introduction of renewables and new energies such as hydrogen and biofuels.鈥�

Oil and gas companies, in particular, need a roadmap to transform themselves. 鈥淭hey need to understand the risks and the global frameworks that exist, such as carbon credits and carbon markets, to achieve Net Zero goals, which not everyone fully understands.鈥�

One group who does seem to grasp that sustainability is the way ahead for business is the new generation of future business leaders coming through. 鈥淵oung people have a big interest in sustainability and the idea of business as a force for good,鈥� Tomita finds.

And there鈥檚 no standard profile, as Tomita鈥檚 own career path attests. With the rise of sustainability financing and big capital pouring into climate projects, a background in banking can be helpful, as could 鈥渟omeone who has been working in a coal-fired plant for 10 years 鈥� we need people who understand energy. People with a background in engineering. Or trade.鈥�

In other words, we need diverse profiles able to tackle the climate challenge from multiple angles and 鈥渃ontribute to the development of this exciting new market we are experiencing.鈥� And that鈥檚 a reason for optimism.

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