Board-level decisions
#002 - Wednesday 2nd Aug 2023
A lot of focus on change management this week exploring the role a CEO has, how cyber security affects business strategy and how HR can approach employee retention post acquisition. Let’s jump in.
Spotlight
Industry
1. Retail - Richard Dickson's tenure as president and COO of Mattel was marked by strategic ingenuity and a commitment to innovative leadership. His development and launch of the Mattel Playbook, a brand-building approach, not only strengthened Mattel's power brands but accelerated the company's transformation in a competitive marketplace. As he steps into his new role at Gap Inc., one can anticipate that Richard will once again apply a thoughtful blend of foresight, strategy, and operational acumen to forge a path towards growth and success. His ability to align innovation, design, and brand marketing with an overarching corporate vision reflects a leadership style that is both adaptive and grounded in principle. CEOs and business leaders would do well to study the nuance of his approach, where strategic leadership is not just about charting a course but cultivating a dynamic ecosystem that thrives on creativity and execution.
2. ESG - ESG ratings, have again been called into question with Scientific Beta's revelation in the Financial Times which demonstrates inconsistencies and misconceptions, where even highly-rated companies are not necessarily aligned with lower pollution. Aside from an overhaul of the rating systems used, companies really shouldn’t see this as a deterrent but as a calling to elevate ESG commitments beyond what is in essence, just window dressing and into the very essence of business strategy. I often see successful leaders embrace a comprehensive approach that integrates environmental, social, and governance considerations, aligning them with their organisation's core values; this integrity is what resonates with all stakeholders.
Technology
AI - In yet another turn of the generative AI screw, step forward Gen-2 from Runway Research. An image to video AI that if executed effectively, could lead to the creation of higher-quality content at potentially reduced costs across many organisations with mid to high content marketing budgets. The allure of reducing the need for extensive human intervention, time-consuming manual design processes, and expensive equipment. In a commercial context, it may allow businesses to produce more engaging and visually appealing content, thus potentially attracting more viewers or consumers.
In turn, this could lead to increased revenue through more effective advertising, greater audience engagement, or new product offerings based on the refined technology. It may also provide a competitive edge to those who adopt it early and integrate it effectively within their business models. The ability to produce smoother and higher-quality videos with better control and lower latency could redefine industry standards and expectations, fostering innovation and potentially reshaping the economic landscape within content creation sectors.
The images below was originally generated using MidJourney before being turned into a video using Gen-2. As you can see the possibilities for marketing are near endless.
The Leaders Digest
What's weighing on the minds of those leading the organisations of today.
Reviewing cyber security strategies
In an era marked by interconnectivity and ubiquitous digital transformation, the pressing concern over cybersecurity stretches beyond the borders of traditional high-risk sectors.
A great piece in the HBR on 4 Areas of Cyber Risk That Boards Need to Address looks into the issues of pursuing comprehensive cyber security above all else and off the back of that, I had the chance recently to catch up with Joshua Gibbs, Chief Executive Officer of Tribe Security who shared some ideas on some of the misconceptions organisations tend to have when facing security threats.
Today, industries once believed to be immune or of lesser interest to cyber attackers, such as healthcare, manufacturing, and hospitality, find themselves grappling with the realisation that it's not the nature of the business, but the vulnerability that entices malevolence.
In the pursuit of comprehensive cybersecurity, many companies have found themselves heavily constrained by limited resources and talent. A common fallacy, and a "hallmark of Cybersecurity marketing," is the packaging of a single tool with the lofty promise that it offers 'Complete protection.' This perception is not only misleading but dangerous. Joshua was very clear. "an effective cybersecurity strategy relies on competent personnel, a solid understanding of the uniqueness of the organisation, and board-level buy-in."
It's a grievous misunderstanding, particularly within sectors not traditionally seen as cyber-targets, I’ve seen first-hand how poorly cyber security strategies are pulled together at many mid-market organisations. In large part because they are mid-market. Particularly so in sectors where the perceived threat of breaches and attacks are lowest. Some organisations operate under the misconception that they "are of no interest to attackers." As Joshua put it, the reality, however, is that attackers, especially those motivated by financial gain, "build their strategy not around individual sectors, but around vulnerability." No matter the industry or service, if the underlying IT and technology can be exploited, it becomes an attractive target.
The emphasis, therefore, must not be on finding a one-size-fits-all solution but on crafting strategies that recognise the unique challenges and risks inherent to each organisation and sector. The focus must shift from illusionary complete protection to a holistic approach that embraces understanding vulnerability, education at the board level, investment in competent personnel, and an adaptable strategy that evolves with the changing landscape of cyber threats.
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Your Questions Answered
Have a burning question? - hit reply or email us here.
Just the one this week - but a great one!
“What are some good steps to consider when trying to retain employees post acquisition?”
In the wake of acquisitions, an undercurrent of unease often stirs within the workforce. Employees' eyes wander to external opportunities, their minds open to new professional landscapes. It becomes incumbent upon the leaders within an organisation to swiftly act, anchoring these key individuals to the company's future.
The process of retention, although conceived at the organisational level, must resonate on a personal note with each employee. It's a grave misunderstanding to think that financial incentives alone will tether talent to your firm.
Inclusion in the integration journey, empowerment within their roles, and thoughtful, individualised attention frequently carry more weight than mere fiscal rewards. Such an approach recognises the multifaceted nature of professional fulfilment and anchors employees not only with financial bonds but with ties that touch upon deeper, intrinsic values.
Calling from our Employee Retention Playbook....Navigating the unsteady seas of an organisational merger or acquisition, it's vital to establish firm leadership roles with alacrity. Indecision on the structural helm can render alternative employment a siren's call. Bearing this in mind, we have outlined a measured, three-phased approach to integrating and retaining key personnel.
Phase 1 (Pre-Close)
The earliest dialogues shape the leadership's horizon, usually defining the roles for the top two to three individuals within each organisation – possibly extending to five to ten in larger firms.
Prior to the public announcement, the identification of the executive ensemble is pivotal. These leaders will stand on the public stage on announcement day, heralding a new era. As part of the intricate architecture of the deal, specialised retention strategies and packages will be devised for these pivotal players.
Before closing, the senior leadership will delineate their direct reports and forge a retention strategy, enlisting the expertise of HR.
For Phase 2 (15 Days Post-Close) and Phase 3 (30 Days Post-Close) feel free to reach out and we’d be happy to discuss further.
The Nugget
Information flows rapidly and seemingly without boundaries, the thirst for knowledge, unquenchable. Enterprises, both large and small, are on a constant quest to unearth insights that could fuel their growth and innovation. Here, Open Source Intelligence (OSINT) emerges as a protagonist.
OSINT is the collection and analysis of publicly available information from various sources, such as websites, social media, government publications, and more. It's a practice deeply rooted in the philosophy that knowledge should not only be sought behind closed doors but also in the open arena where collaboration thrives.
The OSINT framework, a systematic approach to gathering and analysing this publicly available data, acts as the compass guiding this exploration. With structured methodologies, it sifts through the vast ocean of information, making the complex appear not only manageable but extraordinarily lucid.
For businesses, the implications are profound. In a real-world setting, the OSINT framework can be a lifeline for market intelligence, risk management, and competitive analysis. Picture a scenario where a company leverages OSINT to uncover market trends, thereby steering its product development in a direction that resonates with consumer demands. Or consider a firm that utilizes these insights to gauge potential risks in an emerging market, equipping itself with the foresight to navigate unseen obstacles.
Feedback is always welcome.
See you next Wednesday.
// N
P.s. This Sunday we’ll be exploring the moves Alex Cruz took at British Airways back in 2016 to turn around the struggling national carrier, increasing passenger numbers by a third and revenues by nearly as much. Unheard of in the airline industry.