Una gran revolución sacude a las entidades bancarias y su relación con los clientes al calor del desarrollo de las nuevas tecnologías. Aunque la transformación no implica que vaya a desaparecer la actividad financiera, sí existe “un proceso de desintermediación” y empiezan a surgir nuevos actores que obligan a la reflexión para sobrevivir, ser eficientes y encontrar nuevas oportunidades en un entorno en el que el cliente lo quiere todo y lo quiere “ya”. De todas estas cuestiones habló Jorge Soley, profesor de Dirección financiera del IESE, durante una sesión de continuidad dirigida a antiguos alumnos. 

Algunas entidades financieras han asumido ya este reto y se esfuerzan en “hacer algo que no habían hecho antes: dar respuesta a las necesidades de los clientes”. En este sentido, la banca, arrastrada por las dinámicas de los contratos de “adhesión” —los que redacta una de las partes y la otra se adhiere o no— en este terreno “va muy por detrás de otros sectores”. Pero la elevada competencia actual lanza definitivamente a las entidades a una carrera tecnológica. 

El modelo de los contratos de adhesión salta por los aires y se impone una nueva relación, más personalizada y que responda a un tipo de demanda que va más allá de la tradicional: las personas acuden a los bancos buscando confianza, seguridad en las operaciones, transparencia, productos atractivos y precios ajustados. En este contexto, según Soley, las entidades bancarias serán valoradas por su capacidad de adaptación a la mentalidad de cambio. 

Un cambio que se ha acelerado en los últimos ocho años y que obliga a seguir actualizándose. “Solo podrán sobrevivir las entidades bancarias que alcancen un buen nivel de digitalización, siendo eficientes y dando al cliente el servicio que quiere”. En esta carrera no todo el mundo está capacitado ya que, precisó Soley, “son muchos los millones que hay que poner detrás” para que el back office tenga capacidad de reacción y pueda desarrollar estrategias tecnológicas móviles. Es un proceso que augura una reducción en el número de entidades bancarias: “Y esto —subrayó el profesor Soley— no sé si es bueno o malo para las empresas, porque antes tenían cierta capacidad de negociación con un mayor número de entidades”. 

Clientes más autónomos y exigentes

Las entidades financieras no solo se enfrentan al reto de la digitalización para ser rentables sino también a nuevas regulaciones que pueden afectar en el futuro los resultados, así como también a procesos demográficos que ponen en cuestión productos como los planes de pensiones. Pero además, los bancos tienen que satisfacer a clientes que han dejado ser como los de antaño: “Nuestra sociedad es más autónoma, exigente y crítica, antes la gente callaba y ahora no dejan pasar ni una”, dijo Soley, que insistió en “la capacitación del personal bancario” porque mientras antes “usábamos los bancos para hacer cobros y pagos, ahora queremos que nos den su opinión y ayuda”. 

Soley consideró que el nuevo escenario requiere que las entidades sepan también reinventar el trato en las oficinas, ir más allá de la banca transaccional, mejorar la confianza con el cliente y buscar la manera de ganar clientes entre los millennials. Para conocer mejor al cliente, animó a explorar más el big data y precisó que en la actualidad los bancos solo utilizan el 30% de los datos que tienen a su alcance. 

Esa fuente de información abre la puerta a aprovechar unas operaciones de las que ya están sacando partido otros actores en el sector y que afectan cada vez más a los resultados de los bancos. Soley se refirió por ejemplo al crecimiento del shadow banking, por parte de entidades que tienen una menor presión por parte del regulador y que por ello pueden ofrecer productos competitivos, disminuyendo la actividad bancaria. “De momento se trata de cifras pequeñas —alrededor de un 7%— pero hay que tenerlas en cuenta”, advirtió Soley.

Achieving greater economic sustainability for health systems at a time when life expectancy continues to increase, being present in the global market and taking advantage of the possibilities offered by big data. These are some of the major challenges posed by the transformation of the healthcare industry, according to the experts at the 22nd Healthcare Industry Meeting recently hosted by IESE in Barcelona.

The debate focused on the major trends currently identified in this area: financing of health systems in countries where resources are limited, formulas for improving efficiency and the potential benefits of big data analytics for the development of new products and services.

A Demanding Environment

Belén Garijo, CEO of Merck's Healthcare Division, pointed to the evolution toward a "multi-client" business model—an increasingly demanding one—as the first topic for reflection: “Regulatory agencies, public and private financiers, healthcare professionals and increasingly informed patients require business to be conducted differently,” she said.

For his part, Víctor Grífols, President and CEO of Grífols, S.A., said that globalization brings certain advantages, such as the possible "alignment of criteria at the pharmaceutical level." Grífols underlined the significant progress made with the centralized registry of the 28 European Union countries and the plans to align criteria between Europe and the United States.

The Importance of Emerging Markets

The risk diversification allowed by the global stage forces companies to "learn how to manage emerging markets," said Garijo, taking into account the differences between countries. This is vital in order to "compete and diversify more strategy and anticipate your future business risk profile," she added.

Grífols said that the differences between Western countries and the rest of the world are so vast that "we must give more time" to those that have not reached an advanced level of development: “It will be quite a while before we can implement our healthcare policy and health criteria in countries that don't even have enough to eat.” Furthermore, he said, "there are many ways to improve the health of a population and a country without incurring too many pharmaceutical costs.”

More Research for More Cures

It will remain essential to stimulate progress in R&D, although this area also poses questions.

“We have improved the survival prospects for patients who previously could not be healed, because this is not just a financial issue: we're talking about healing more—that's our mission," explained Garijo. In this field, "precision medicine is a huge opportunity for the future to adapt and better identify the areas in which we are going to produce greater value for the same money," she said.

Grífols noted that the healthcare industries are increasingly more efficient and "able to solve problems that used to be extremely costly." Nevertheless, he said the debate on the cost of healthcare is not going to change: “No matter what you do, the state will never be satisfied.”

The issue of whether welfare is sustainable emerges amid an environment of continuous progress. In Grífols' opinion, in the future someone will have to determine if progress toward increased life expectancy is good or bad and how far it can be taken. Because, as he sees it: "What's the point of living longer if countries cannot ensure people's well-being?"

According to Garijo, "we have to move away from the political and populist environment and start talking less about generalizations and more about business plans.”

The Case of the United Kingdom

Andrew Dillon, Chief Executive of the National Institute for Health and Care Excellence (NICE) in the United Kingdom, discussed the issue of healthcare spending in the British health system.

Dillon addressed the dual challenge facing the health system to improve results by offering guidelines based on the science of evidence: first, in making decisions about resource allocation and, second, on the new strategies in healthcare, which are revolutionary and provide incredible improvements but, at the same time, present new challenges.

According to Dillon, the health systems in many countries face a period of significant financial constraints, while the ambitions of the population are growing in this field and we continue to see the development of technologies that are increasingly innovative and expensive.

Opportunities for Big Data

According to Luis Campos, Managing Director of GE Healthcare for Spain and Portugal, no one denies that there is a challenge as far as the sustainability of the health system. “But the good news is that this sector still has major opportunities for improvement when it comes to management,” he said. In this respect, big data and "the processing of information will be the fundamental catalyst for improving and trimming the extra fat that we are still carrying.”

Campos stressed that currently only 3% of the available information is used in a meaningful way. He wondered aloud about the possible improvements that could be made if 10% or 25% were used, as opposed to 3%.

In the same vein, Jordi Martí, Vice President and Director General of Celgene Spain and Portugal, said that "science is not enough to succeed in the market" so it is imperative to strive for "mainstreaming.” “The only way to gain value is to measure things by taking advantage of data.”

Haig A. Peter, Executive Consultant and Cognitive Computing Ambassador at IBM Research in Zurich, offered some statistics about the data revolution. According to Peter, we are no longer dealing with big data, but rather "a real tsunami" of information whose potential has yet to be tapped into.

He said that each person during their lifetime will generate 1.7 megabytes of data on their health history, the equivalent content of 300 million textbooks.

Despite the magnitude of the challenges posed by this massive amount of information, Peter concluded: “Welcome to the cognitive age. This is just the beginning of something exciting, so here we go.”

Some 91% of IESE MBA 2015 graduates have found employment across 40 countries within three months of graduation. And 85% of them have taken their career in a new geographical and professional direction.

Asia has risen from 13% last year to 21%, while Africa and the Middle East have leapt from 1% to 8% in choice of job location. A total of 31% will remain in European countries outside Spain, and employment in Latin America is up from 9% to 13% this year.

In 2015 the sector spread is more varied than ever. 29% have opted for consulting and 22% for finance. There is a strong trend towards tech. E-commerce is at the top of the corporate sector with 11%. Healthcare comes in at 6%, followed by Consumer Goods with 4%. Retail and the industrial sector are also popular destinations for graduates.

Essential Element for Employment

The MBA Career Forum is key in terms of many students’ job search. It regularly accounts for more than 70% of each year’s MBA graduates job placement. And internship. Some of the 40 companies found on site looking to recruit our 550 MBA students are: Amazon, Camper, EON, Lidl, Opel, Novartis, Microsoft, Möet Hennessy, Nike, General Electric, OTB, Merk, Bertelsman, Citi, Barclays, Deutsche Bank, American Express, McKinsey, Accenture, BCG, Siemens, Deloitte, Indra, Roland Berger and Bain & Co.

Andrea Hayem (MBA ’16) from El Salvador who has already secured herself a position at Morgan Stanley shared her experience with us. “The Career Forum and Career Services helped me find the perfect job after the MBA. From facilitating the networking, to reviewing my CV and cover letters, to coordinating mock interviews, IESE provided me with all the tools to achieve the internship I wanted.”

Executive Networking and Interviews

Second-year Konstantin Kozin (MBA ‘16), from Russia, found his experience evolving over the two-year course. “Last year was sessions, presentations and networking. These provide direct communication with the top managers from international companies – something that I didn’t have access to before the MBA. This year it’s interviews. On Monday I had seven.”

First-year Karen Crisostomo (MBA ‘17) is from the Philippines. She stressed the range of companies – and opportunities – the Career Forum offers. “I’m really excited about meeting with some of the retail and luxury goods companies that are here. There are so many companies from such a wide variety of industries. I guess I’m trying to keep my options open as you never know where your path might take you.”

When facing such a range of top employers, it pays to do your homework, as Spanish David Pardo (MBA ‘16) makes clear. “Be proactive. The Career Forum helps with networking and to meet companies. But at the end of the day you own your professional career. Research the companies you’re interested in beforehand. Stay in touch with the people you meet at the career fair. And prepare yourself thoroughly for the application process.”

How do you grow from national to global? To do so and achieve annual net sales of €12.5 billion is quite an achievement. For LIXIL’s Executive Officer and Executive VP in charge of HR and General Affairs, Yosuke Yagi “change” is “easy.” He shared his vision of how to go global with MBA students at IESE Barcelona in October.

Since joining LIXIL in 2012, he has been at the helm of an international and global revolution and has seen the company transform from a Japanese national company into a worldwide operation.

From National Heavyweight to Global Leader

It’s an “ongoing process” that Yagi describes as metamorphosing “from a dinosaur to a phoenix.” In effect, the company has globalized itself by purchasing a range of foreign operations including American Standard Brands, Permasteelisa and GROHE.

The goal, for LIXIL, said Yagi, is to become “the world’s most valued, innovative and trusted living technology company by 2020.”

Positive Perspective for Success

Having set the bar so high, it perhaps seems surprising that Yagi describes the transformation as “easy.” Nonetheless, he sees it simply as a matter of attitude. “If you think change is going to be difficult – then it certainly will be,” he said.

Overturning opposition to change and the corporate norms of continuity, conformity and seniority are all part of LIXIL’s transformation strategy. The new international flavor of the company is exemplified in its new board, which contains members from outside Japan. A “far cry” from a few years ago, said Yagi.

Leveraging Diversity and Synergy

The new blood in the company has come from embracing outside expertise – mostly from its new acquisitions. Harnessing the diverse talents and skills across LIXIL has been key for its global success. And that includes leveraging leadership and an international outlook from new arrivals to the LIXIL fold, because, as Yagi says, “our biggest acquisitions already have a global outlook.”

Redressing the balance when it comes to diversity and women in leadership is also top of the agenda for Yagi. LIXIL is committed to increasing the number of women in management positions.

Complementary expertise shared across different functions within the company also makes for great synergies. Marrying GROHE’s flair for design with LIXIL’s expertise in technology and exacting quality standards, for example, has created potential for new product lines, Yagi said.

Making One LIXIL

The company may now be promoting diversity – but it also needs unity to flourish. The “One LIXIL” strategy is key to the successful integration of the distinctive companies acquired by LIXIL. And while there is great diversity across the organization’s 150 territories, the 80,000 LIXIL employees should coalesce around the same operational structures, code of conduct and values, said Yagi.

This boils down to employees “doing the right thing.” He also said that it means employees should feel encouraged to take the initiative where they can, and to play an active role in the company’s fortunes.

Training for Leadership

Another important aspect of the “One LIXIL” strategy is a global HR platform that, among other things, has been designed to promote leadership earlier on. This contrasts with Japanese corporate traditions, where seniority and time served often trumps young talent.

“When I worked at GE, we calculated that for every 1,000 employees, there was one great leader. That means that we have 80 great leaders at LIXIL whose talents we need to develop,” said Yagi.

Part of LIXIL’s commitment to this has been to partner with IESE to create a Custom Program “Global Executive Leadership Training: Leading the change, building our future.” Spanning three continents and three modules, the first module took place last week at IESE Barcelona.

A fragment of concrete from the Berlin wall sits in Konrad-Adenauer-Foundation Director for Spain and Portugal Thomas Bernd Stehling's office in the heart of Madrid. In November 1989, when thousands of Germans gathered around the wall that divided the city (and the country), Stehling climbed to the top and with his own hands tore off a piece of the grey stone that had divided Europe for decades. That block of granite serves "to not forget what happened," he said.

Today, nearly 26 years after that pivotal moment in history, Europe is going through some tough times. “We're still in the middle of one of the worst crises in our history and we're already facing another: millions of refugees are fleeing war and poverty. We as Europeans must work together to solve the problem," said Stehling during a special session on Europe organized by the Center for Public Leadership & Government at IESE.

New Challenges for the Old Continent

Well versed on the intricacies of German politics and the EU, Stehling urged European influencers and decision makers to do some analysis. And seek solutions to the new challenges facing the continent. For Stehling, these include solidarity, democracy and the defense of human rights "while staying true to the principles that have defined Europe. There is no other system in the world that safeguards our security and values like the EU. That is why we must work to improve it," he insisted.

The refugee crisis is not the only problem afflicting the old continent. The long list includes: Greece, Ukraine, the looming referendum in the United Kingdom on remaining in the EU, nationalism in Scotland and Catalonia, the threat of the Islamic State and global terrorism, the rise of populism and xenophobia, high unemployment rates in some countries and the general public’s aversion toward the political class.

"The only possible response to an increasingly complicated world is to make the European system viable. We must strive to improve the EU, because weak governments will not guarantee a strong European Union. Leadership is vital, and Europe cannot shrug that off," he said.

Alliance With the United States

In the opinion of distinguished lawyer and jurist Antonio Garrigues Walker, in a world that is increasingly volatile, uncertain, complex and ambiguous, Europe must find its place. To do so requires, among other things, new democratic and ethical values. And strengthening its position as ally and friend to the United States. “Europeans have an inexplicable anti-American sentiment. But if we distance ourselves from the US, we are goners. The Pacific region is increasingly important for American interests, to the detriment of Europe," he explained.

As Garrigues Walker sees it, Europe is currently facing two major problems: demographics and refugees. "We are an aging continent and this issue is not part of the political agenda," he said. He spoke clearly on refugees: if the EU countries do not establish common rules to welcome refugees, the issue will never be resolved. “These days, people don't want charismatic leaders — they want effective leaders," he said.

“Without ethics there is no future, and the change will always be whatever creates opportunities. We must put an end to the greed, which has been — and still remains — at the root of this terrible crisis. And work hard on regeneration," he said.

Garrigues Walker stressed how important it is for civil society, which is "vital to the quality of democracy," to get involved with these issues. He also called for a return to forward-thinking politics, “without a solid political foundation, democracy will die.”

A select group of 15 participants from diverse sectors and seven countries gathered in Singapore for the Focused Program “Digital Mindset: How to Innovate Your Business for the Future.” The first of its kind in Asia, some of the companies represented were: Accenture, Honeywell, HP, Intellipath Games and Medtronic.

The ideation center ACE (Action Community for Entrepreneurship) and the accelerator space BASH (Build Amazing Startups Here), provided the perfect backdrop for the two-day course. The program brought together digital transformation and traditional innovation, presenting participants with the necessary analytical models and tools to take advantage of the vast field of new opportunities that digital transformation is bringing to the business environment. Led by IESE Professors Evgeny Káganer and Paddy Miller, participants grappled with the why, what and how of digital transformation, focusing on its basic building blocks to establish a long-term vision.

Getting to Grips With the Why

Prof. Miller opened by highlighting the key to understanding digitalization. It’s about asking the right questions and changing focus. “We’ve gone beyond the initial generic questions. It’s time to start asking ourselves: what are the big issues? It’s about reframing the problems and our vision instead of reframing solutions,” said Prof. Miller.

“The challenge is that the pace of change is quite significant. There are changes coming from the outside and from all sides, from customers and new competitors. Most executives are forced to respond before they can even make sense of what’s going on. There are a lot of issues to address, regardless of industry,” said Prof. Káganer. “Companies need to start thinking about how to rethink and remake the ways in which they add value to their customers. I’ve seen a lot of young people that know a lot about digital tools but can’t connect the dots and don’t understand the business ramifications. You don’t need to be young to get it. You need to be willing,” he said.

Identifying the What and How

On day one, participants focused on thinking about the what of digitalization: how their business was going to look like in a world where everybody and everything is interconnected. Next on the cards was converting their vision into a portfolio of specific ideas for how they could start taking advantage of digital within the context of their business. This entailed rethinking the value proposition of their companies, drawing up ideas to compete through digital business models, taking into account the scope and timing of impact.

Guest speaker, Laurence Smith, managing director HR, group head of learning & talent development of DBS, one of the largest banks in Singapore with which IESE is currently doing some research, later joined the group to tell his story about the digitalization process at the bank.

Day two tackled the how of digitalization. Participants were asked to come up with a 60-day action plan, looking at the pros and cons of their business models. Most participants agreed that this was the most challenging part. Establishing a new mindset throughout the organization, starting with the top, was easier said than done.

For participant Ilona Simpson, group IT head of Aston Martin Lagonda in London, “digital is a phenomenon that over the years has become more complex, and the veil of mystery around has become opaque. The course was a very intense experience but helped to demystify it,” she said.

“Digital came to the fore at IESE five years ago. Back then I had to convince executives that this was something worth paying attention to. Today, everyone across all sectors, whether media or luxury goods, wants to talk about it. Yet while there is tremendous awareness in the C-Suite, there is still a lot of confusion as to what it actually is, and how to make sense of it. In Asia, digital is different than in other parts of the world. And there are a lot of exciting things happening here which we can learn from,” concluded Prof. Káganer.

Over 90% of foreign companies expect to maintain or increase their investments, number of employees and revenues between 2015 and 2018. And the average rating of the country for engaging in their activity went up from 2.7 to 2.9 out of 5.

These are some of the data featured in the 8th edition of the "Barometer of the business climate in Spain from the foreign investor's perspective," a report co-produced by ICEX-Invest in Spain, the conglomeration Foreign Multinationals for the Spain brand  and the International Center for Competitiveness (ICC) at IESE.

The Barometer shows the rating and importance given to the business climate in Spain by more than 500 foreign companies. It provides insight into the strengths that need to be maintained and the central areas of activity to focus on.

According to the study, the key future prospects for investment by foreign companies in Spain are:

• 94% of the foreign companies surveyed expect to increase or maintain their investment levels in Spain in 2015. This figure rises to 95% in their forecasts for 2016-2018.
• The percentage of companies expecting to increase or maintain their workforce in Spain has gone from 87% in 2014 to 91% this year.
• In terms of revenues, 64% of companies are anticipating an increase. Only 9% expect a drop in 2015, and that percentage falls to 4% in the forecasts for 2017-2018.
• As for exports, just 3% expect to see a reduction in 2015, and 2% in the following years.

The Barometer also shows the trends identified by the source of funding for companies. In terms of investing in Spain, the plans of German, British and French companies are slightly above the average of the companies surveyed. Germany and Italy have the highest percentage of businesses with plans to increase or maintain their workforce in 2015. Companies with funding sourced from Germany and the United States are the most optimistic about increasing revenues in the coming years.

Infrastructure and Human Capital – Key Strengths

For foreign investors, infrastructure remains the most highly rated area, followed by human capital and quality of life. It is interesting to note the positive rating of airports and high-speed rail in relation to infrastructure. In terms of human capital, the availability of skilled labor and the quality of business schools are the aspects most highly rated by investors. All the areas studied show improved ratings compared to the 2014 Barometer.

The Barometer also highlights the areas that investors feel should remain priorities. This year, the cost of electricity takes center stage when it comes to finance-related aspects. This replaces previous years’ focus on the main opportunities for improvement.

The areas considered as priority are those with a greater difference between the importance and the weighted rating ascribed by investors. Along these lines, language skills is still considered the main problem, while adaptation of labor laws to the needs of the company is no longer one of the main concerns.

Cars are not yet quite as Robert Zemeckis imagined they would be by now in Back to the Future Part II.

“I'm sure cars won't be flying in 30 years' time, but they'll be doing pretty much everything else,” predicted José Luis López-Schümmer, president of both Mercedes-Benz España and the Spanish Association of Car and Truck Manufacturers (ANFAC).

He was speaking at IESE’s 30^th Automotive Industry Meeting, which, as in previous years, was co-organized by KPMG and brought together some of the sector's leading players along with IESE professor Pedro Nueno. The aim of the event was to anticipate how things might be 30 years from now. This was no easy task, not least because, as López-Schümmer observed, “the industry could change more in the next five years than it has in the last 50.”

Cars of the Future

Experts envision a future in which cars serve a multitude of functions. They’ll be crash-proof, thanks to autonomous driving technology. And emission-free, thanks to alternative drive systems (electricity and hydrogen fuel cells). They’ll also be connected, thanks to the Internet of Things and the proliferation of devices and networks.

With Tesla, Google and Apple already making waves in the market, new competitors will emerge over the coming years. There will also be new practices, such as car sharing and other “imaginative” initiatives that do not necessarily involve buying vehicles.

These changes will come about in response to the private mobility needs of a world population largely concentrated in megacities, as well as increasingly demanding emissions regulations that will require manufacturers to press on with research into alternative technologies.

All the above makes abrupt changes in business models a very real possibility, says López-Schümmer. For some time now, the industry's main companies have been preparing for the model based on vehicle manufacturing and sales to evolve towards a greater focus on smart mobility solutions.

Zero Accidents, Zero Emissions

In terms of technology, prioirities for manufacturers are putting an end to fatal road accidents and doing away with polluting emissions.

López-Schümmer believes that “autonomous cars” hold the key to reducing emissions. “The technology is practically ready,” he said, “although there's still some way to go in terms of legal and ethical aspects.” These include whether an autonomous car's driver or manufacturer would be held liable in the event of a collision.

IESE professor Pedro Nueno also built on this idea. “Billions and billions of dollars are being pumped into these technologies,” he said.

Nueno cited the example of Volvo, which is aiming to make deaths in its vehicles a thing of the past by 2020. The Swedish firm's confidence in its technological advances is such that it has announced it will accept full liability for any accidents involving its driverless cars.

Nissan's goals are similar. “Zero accidents, zero emissions,” said Frank Torres, CEO of Nissan Motor Ibérica. He stressed his comment and emphasized his company's commitment to autonomous driving and the manufacture of electric cars.

Speaking at IESE’s Barcelona campus last week, Antonio Llardén, executive chairman of Enagás, set out how unpredictable the energy business is – and how despite the challenges, the Spanish gas company has transformed itself and its fortunes.

The company has increased its share price by 53 percent, while at the same time the IBEX average shrunk by 26 percent. It has also upped both its Standard & Poor and Fitch ratings have gone from BBB to A-. All in just eight years.

From National to Global

One of Europe’s leading energy companies, Enagás is now the world leader in liquefied natural gas (LNG) and the main gas carrier in Spain, with operations in seven other countries in Europe and Latin America.

This is all the more impressive considering the recent volatility that the energy business has experienced. Volatility that Llardén’s company has met head-on, by breaking out of a reliance on Spanish shareholders, banks and markets, and going global.

Achieving this took firm decision-making, and no small amount of humility, said Llardén. The first step was an understanding of the energy business within the context of wider social, political and technological change.

Global Perspectives for a Business Without Borders

According to Llardén it’s impossible to be a leader in the energy sector without understanding the socio-political context. And you need a worldwide vision, as energy is a business without borders.

A good illustration of this is the current warming of relations between Iran and Europe. “This could lead to the country exporting oil and gas westwards in a matter of years,” says Llardén.

Another development in the pipeline is the proposed common European energy policy. Currently, the European Union member states get 40 percent of their natural gas piped from Norway and Russia.

In order to reduce dependence on these suppliers, the new policy is suggesting an increased use of LNG, Llardén explained. Liquefying natural gas reduces its volume 600 times, making bulk transportation of the fuel more practical and allowing Europe to import it from anywhere in the world.

As Enagás owns and operates six out of the eight plants on the Iberian Peninsula that convert LNG back to natural gas, it is well positioned to take advantage of this.

Unpredicted Developments and Humility

The case of shale gas is an example of sudden technical change affecting the energy market. In 2006, when Llardén was chair of the World Energy Congress, only a handful of people knew anything about the subject. Yet only a few years later it had profound implications for their sector.

Another event that caught the industry by surprise was the drop in oil price from around 80 dollars to the current price of about 50 dollars per barrel. The key is to be “humble,” said Llardén, “no-one was able to predict this.”

Need for Decisive Action

But rapid and often unforeseen developments affecting an industry don’t just require humility – they require decisive action. “The energy business is seen as having a lot of inertia,” he said. Enagás shook off this perception by transforming itself – without shedding staff.

Enagás’ reaction to the volatility in the energy industry and the financial crisis was to “become more efficient, look for markets outside of Spain, attract foreign investment and shareholders, and modify the company’s internal structures,” Llardén said.

Seeking Shareholders and Markets Worldwide

Previously, Enagás had been highly dependent on Spanish shareholders, the goodwill of Spanish banks and the health of Spanish energy markets. As the global economic crisis took its toll on all three, the company took action.

It wooed foreign investors. With the result that 90 percent of its share capital is now free float, with investors spread worldwide. Expansion into other European markets, plus Latin America, means the company is now a genuine global operation.

Corporate Pride, Collective Effort

Llardén stressed the need for collective effort within a company and the value of teamwork in the face of challenge. “Clear, strategic thinking is a result of teamwork, rather than individual geniuses,” he said.

The Enagás Executive Chairman was joined by an audience of MBA and EMBA students at IESE.

“Family companies are more long-term oriented than other public companies. And I personally believe that a long-term orientation of capitalism is one of the most important contributions we can make in the world,” says Fabrizio Freda.

Freda, President and CEO of the Estée Lauder Companies and a member of the Company’s Board of Directors, was a guest expert — along with President of Exea and ex-Chairman of Puig Mariano Puig (PDG ’64) — at the MBA 50th anniversary celebration at IESE New York this week.

“Family companies are authentic,” he said, “and this authenticity is increasingly valuable in today’s flat world. We don’t need more commodities — the Internet has made everything available in developing countries. But because there is a story behind these products, that adds value for people. Family companies are so much more interested in long-term quality because their name is on the door or the product, or in the history of the company.”

A Sense of Purpose

The anniversary celebration was opened by IESE Dean, Professor Jordi Canals, who likened IESE’s values to those that characterize family business: “We have a purpose, a wider vision of what we want to do. We want to develop leaders who have a positive, lasting impact on other people, working for companies and society at large with a sense of professional excellence, integrity, and service.”

“I think that when you try to translate those ideas into the world of family businesses, you see that family businesses like Estée Lauder, and Puig also have a long-term sense of purpose. I think this sense of purpose has helped us become a special business school.”

Mariano Puig, whose father began importing perfumes to Spain 100 years ago, echoed Canals and Freda’s words: “We have generated wealth for our society, our company, and our shareholders by adding value to our products; we want buying our products to be a pleasure for people.”

“In 100 years, we’ve had good and bad moments. When the company was losing money, our suppliers, backers, and employees carried on because they saw that the family was involved and committed. The same family and same principles have run the company from the beginning, and that gives security to all the people working there.”

Moderating the discussion was Ivan Lansberg, an organizational psychologist in New Haven, Connecticut, and academic director of Family Enterprise Executive Programs at Northwestern University’s Kellogg School of Management.

“Wall Street is catching onto the long-term value of family-controlled companies,” he said, pointing to new research, which indicates that they outperform their competitors, in part because of “the trust level between multiple stakeholders that allows for fluidity in implementation of strategy.”

Getting the Professional Mix Right

“Family companies do well to understand when the moment has arrived to join forces with professional managers who can do what the company can’t do internally,” says Freda.

He credits the special partnership, built on mutual trust and admiration, between himself and the Lauder family for the firm’s booming success. Worth 6 billion when Freda joined seven years ago, the company is now worth 11 billion.

The Lauder family, he says, respects his “experience” (he is a former executive at Procter and Gamble) while Freda deeply appreciates both the general advantages of a family firm and the particular strengths of the Lauders. “You have to be humble enough, as an external leader, to understand that if the business is strong, it’s because the family has done a wonderful job.”

From the family perspective, Puig recalls taking the reins along with his siblings after his father’s death. It was, he says, a question of “putting people around us who knew more than we did.”

Puig is a graduate of the IESE Executive Education PDG Program. The school, he says, prepared him to make the “right decisions at the right moments,” throughout his career overseeing brands including Nina Ricci, Carolina Herrera, Prada, and Valentino.

From Familiar to Global

“Family companies tend to be very strong in one area. Unfortunately, the world is so volatile today, the only way to manage that is to add more agility, more speed, and to diversify, so there is no one single thing that could happen around the world that could damage your business. Estée Lauder has become global, well diversified, and rooted in the strengths of the past,” says Freda.

Whereas 65 percent of Estée Lauder’s business was based in the U.S. seven years ago, now that figure is 37 percent. “Becoming global is about developing the ability to be locally relevant wherever you are in the world,” he says. “We put in local management wherever we are, and we don’t standardize — we listen to local consumers.”

Passing on Family Values

As the ranks of family members swell, how can the older generations make sure the values that made their name so prestigious are sustained?

“The dining table, where my father talked about his successes and his failures, was a very important place to learn how to do things,” says Puig. “We received from the older generation a sense of responsibility — that we’ve been entrusted with a legacy, and our job is to grow that legacy. My wife and I have continued to do this in our house.”

As he travels to the company’s offices around the world, a priority is to share the ethical values and culture of the family to employees. Puig and relatives have created a governance body to “help us make good, objective decisions in order to pass the torch to the next generation.”

Partly an effort to “professionalize” within the family as well as reach outside of it for expertise, the fourth generation, while they are shareholders, have not been granted automatic entry as employees.

“We decided that they should find their own lives, and then later, if some become excellent business people, we will see.”

"The economic growth in the coming years is going to be driven by Asia, so there is a real need to develop a pipeline of Asian leaders to rule effectively", says Su-Yen Wong, CEO of the Human Capital Leadership Institute (HCLI), at the IESE MBA 50th Anniversary event in Singapore.

Transforming Leaders

"When you think about the programs that we develop for leaders, it's really about bringing in multiple voices and multiple perspectives. It's about bringing in views from business and from academia, as well as from policy makers. This provides a holistic view of what it takes to lead effectively in an Asian environment," said Su-Yen Wong.

Fellow panelist Sunny Verghese, co-founder, group MD and CEO of Olam International, also shared his insights into developing and transforming Asian world leaders. In particular, he said the shortcomings need to be addressed.

"Asians are already excellent at execution and very good managers. But they need to work on the capacity to inspire and motivate," said Verghese.

Entrepreneurial Mindset

Olam International was established in 1989, trading cashews from Nigeria to India. In the past 25 years it has grown to be a leading agri-business, spanning 65 countries with 23,000 employees. During his time at the helm, Sunny Verghese has successfully navigated the challenges of cross-border growth. While he recognizes the need for context within individual cultures, he also firmly believes that the principles of great leadership transcend borders.

Central to Verghese's work ethos is a need for employees to be entrepreneurial, and to choose company leaders that thrive within a risk-taking environment.

"We are growing above market growth rates. And this is only possible if your team is willing to be creative, innovative, inventive and entrepreneurial in the way they go about identifying those opportunities, and finding pathways to profitably grow their business," he said.

The Singapore MBA 50th Anniversary celebration was the latest in a series of global alumni events. Associate Dean of MBA Programs, Professor Franz Heukamp, mediated the panel. He reflected on the importance of continued discussion.

"In countries across the globe we have been gathering thought leaders and business leaders alike,” he said. “We want them to reflect precisely on the impact that leadership has on the economy and on organizations. And share their findings with us and organizations around the world."

In the digital world, change moves at a breakneck pace, and managers have to be more willing than ever to adapt their business model and leadership style. In this area, IESE faces a double challenge: engaging in rigorous research on these developments and adapting its services to the needs of the new digital manager, without sacrificing the hallmark of its identity – a human approach to business and leadership.

The digitalization of all areas of human life is progressing very quickly, producing more and more information and increasing the degree of connectivity. For example, experts say that in 2020 more than 40 percent of the digital content in the world will be linked to the cloud, and therefore interconnected.

In terms of business and society, the impact of this new era is still difficult to predict in many areas. But, with careful handling, it can improve efficiency and productivity and generate limitless business opportunities.

Professor Javier Zamora says that the Internet of things, big data and 3D printing “are some examples of the digital density in which we live. In this new era, everyone can be a consumer and a producer of value. This presents many opportunities for companies and for the society at large.”

The fundamental change in companies occurred with the arrival of the Internet. According to Josep Valor, “With its emergence, the potential impact of ICTs on companies is greater. It affects business models and the organization of work,” he says. “Today almost everyone interacts using digital tools. When technology affects society in a significant way, business is affected. Both our objectives and our ways of organizing ourselves change. Success will only come if we know how to integrate technology in order to achieve real competitive advantages.”

Read the complete article here

“Learning how to mobilize your people and get what you need to get done under difficult circumstances – that’s a sign of great leadership.”

So says Romaine M. Seguin, president of UPS International Inc. in the Americas region.

Seguin addressed alumni this week in Miami, to mark the 50th anniversary of the IESE MBA.

Responsible for UPS International’s operations in Canada and Latin America, Seguin took the opportunity to reflect on the characteristics that undergird strong leadership, and drive success in the global economy.

She urged future business leaders to be “open-minded” about opportunity.

“The foundation of my own leadership, and the one piece of advice I give to up-coming managers and students is this: never say no to an opportunity. You never know where it will take you.”

“Get the Best Education You Can”

Introducing Seguin and opening the evening’s celebration was IESE Dean Jordi Canals, who added that a sense of “mission, worth and purpose is what truly drives us.”

The MBA program, he said, is “the engine” that has driven the internationalization of the school – an expansion that has taken IESE’s reach both in MBAs and executive education to “cities and countries all around the world.”

Seguin, herself a graduate of the IESE MBA, echoed these sentiments, emphasizing the importance of education in her own journey towards senior leadership.

“Education is about discipline. And I believe you should aspire to get the best education you can for yourself,” she stressed, adding that her own education had helped her prepare for and understand what she would be “putting herself through” in terms of personal and professional growth.

“You need a powerful sense of commitment. That’s essential in developing a successful career in any company.”

What Makes a Future Leader?

Seguin’s own professional trajectory has taken her from driving and unloading trucks at 3am, to the ranks of senior executive. Over the last three decades, she says, it’s the bedrock of education, unerring commitment and a willingness to embrace opportunity, that has seen her make this extraordinary transition. The leadership journey, she says, also hinges on being able to develop strong communication skills.

“When I am with managers who are looking to make the transition to more senior leadership I want to understand from them how they will add value in our vision for the future.”

“I want to see how their minds work. How they communicate. And where the next 10 years of thinking is.”

A Meeting Point for Business and Education

Seguin is clear that she and other business leaders have a duty to pay back the benefits of their knowledge and experience to future generations. Her plan, she says, it to go into education when she leaves the company.

“I think the business world owes that to academia; that you should use your experience to the benefit of business schools, universities or colleges – go back and serve the community.”

It is key, she says, for businesses and academia to work together and find a meeting point to share experience, insight, innovation. “IESE,” she said, “is doing a great job at this.”

Thanking her for sharing these thoughts, Dean Canals took the opportunity to express gratitude to “the entire outstanding community of alumni that exists throughout the world.”

A community, he said, that is “here for the long term. And a community that reflects the IESE mission.”

“We are here because we want to help future business leaders who seek to have a deep, positive and lasting impact on people and on society.”

The 2007-08 financial crisis led to myriad regulations and strategies for preventing a repeat of such a collapse – including macroprudential policies, which seek to strengthen the resilience of the financial system as a whole.

Many questions remain as to how these interact with monetary policy and microprudential policies at individual banks, whether tools (such as stress tests) have been designed and used adequately, and what their long-term consequences (both intended and unintended) will be.

To address these complex questions, IESE and Columbia University’s School of International and Public Affairs (SIPA) jointly gathered a distinguished group of banking executives, regulators and academics from around the world at Columbia’s Italian Academy in New York this month.

Under the heading, “Next Steps for Macroprudential Policies,” the event followed on the heels of the IESE-hosted conference, “Challenges for the Future of Banking,” which was celebrated in London last year (read news article).

Among the speakers were Nellie Liang, director of the Office of Financial Stability, Policy and Research with the Federal Reserve Board, Paco Ybarra, global head of markets at Citigroup and Mervyn King, governor of the Bank of England.

IESE Professors Jose Manual Campa and Juan José Toribio participated in panels.

In his opening remarks, IESE Dean Jordi Canals, said: “This is a fascinating time, where pressing issues like macroprudential policies will be organized for the next few decades.”

“It’s a privilege to do this with SIPA this year. Building a solid banking system is a challenge for us all.”

To promote free interchange of ideas, the event was held under the Chatham House Rules.

Buffers Against Cyclical Busts

It was agreed that though macroprudential policies are increasingly used, especially in emerging markets, a full framework for these policies, which can be “fuzzy” and hard to define, is still far from being established.

The industry’s ambition to identify and design macroprudential tools currently exceeds its understanding of how they work.

One speaker shared a data point indicating that the policies are “buffers against cyclical busts,” but are seldom sufficient to stop them, as it is difficult to sustain the tools and “lean against the wind.”

In weighing systemic risks, regulators and policy makers must decide if it is better to use “proactive” tools to prevent shocks to the market, or “reactive” ones that act as absorbers.

Several of the banking executives in attendance agreed that macroprudential policies have made their institutions safer and better poised to withstand system-wide upheavals. Minimum standards for capital requirements have left banks with more assets and cash, and policies in place to “pay for their own funerals,” without interruption of service to companies or financial injections from the government. It is now both “difficult and safe” for big banks to die.

The “sticky issue” of governance was repeatedly raised. With macroprudential policies being focused exclusively on banking, as opposed to other sectors, there is a lack of international governance, and no systemic approach to analyze results.

Stress Tests Under the Microscope

Stress tests, which run scenarios to see whether banks can withstand adverse conditions are the most widely-used macroprudential tools. In the U.S., some are mandated by law under the Dodd-Frank Act. One aim of the tests is to prevent bubbles, particularly in the housing market, a frequent actor in economic upsets.

Speakers debated whether stress tests are technically accurate and helpful. The so-called “fetishization of bank balances,” leaving out other factors in revenue risk, was called into question; while the risks built into stress test models were themselves seen to be “at risk of changing.”

Concerns included the “Kafkaesque” nature of the more qualitative stress tests, a secretive process seen as insufficiently insulated from politics; and a fear that firms will “back-engineer” their processes to pass tests, while ignoring other risks.

Suggestions included employing a “multiple ratio approach including leverage ratio” when building models – using market indicators of risk, and publicly disclosing data from regulators.

While regulators can’t be expected to be “completely prescient about the next crisis,” it was decided, they nonetheless have an important role in identifying the early signs of one.

For global banks, geographical diversification is a key goal, meaning they are subjected to stress tests from individual countries, which may not assess their overall strength around the world.

Still, one executive claimed that, given the implementation costs of the stress tests, he strives to make them useful for his own management purposes.

Prudent or Risky?

While some speakers praised the “stability” generated by macroprudential policies, they shared serious concerns about other consequences resulting from their deployment.

There was consensus that regulations discourage diversification, encourage the “homogenization of balance sheets,” and decrease trader confidence – all of which were deemed risky outcomes.

Some spoke of how regulations create distortions in the market and “herd” behavior. As for capital requirements, finding the right balance was a theme of discussion, as banks must operate under some risk in order to serve their purpose.

One speaker went as far as to say that regulatory changes have severely challenged the business model of banks, and that pushing them too far could make them disappear; in turn destroying the ability of financial markets to work well.

The rise of “shadow” banks was discussed as another consequence of regulations, with many speakers predicting that the regulatory pendulum will soon swing away from the big banks and toward these other financial intermediaries.

More scrutiny of macroprudential policies is needed, attendees agreed, along with a more “forest versus trees” analysis of the financial system as a whole.

A total of four panel discussions was celebrated over the course of the day with a closing keynote from Governor of the Bank of England and Chairman of its Monetary Policy Committee to 2013, Mervyn King.

Attendees included Dong He, deputy director of monetary and capital markets at the IMF; Rafael Salinas, chief risk officer with BBVA; Matt King, global head of credit strategy, Citigroup; Stijn Claessens, senior advisor at the Federal Reserve Board; Ryozo Himino, vice commissioner for international affairs, Japan FSA; Sandie E. O’Connor, chief regulatory officer at JP Morgan Chase; Claudio Raddatz, director of financial policy division, Central Bank of Chile; Jean-Pierre Danthine, former vice chair Swiss National Bank; Paulo Vieira de Cunha, ICE Canyon LLC.

From Columbia, professors Guillermo Calvo, Takatoshi Ito and Charles Calomiris moderated panels.

The IESE community wishes to express our deepest sympathy for the victims of the Paris attacks on Friday. Only 10 months after the Charlie Hebdo tragedy, our hearts are once again with France, its citizens, and with our alumni community in Paris and across the country.

We pray for the victims and for their families and loved ones – that they find the strength to face the future with hope.

CEOs from around the world met at Shanghai's China Europe International Business School for the first module of the Global CEO Program this month.

Over the course of the week-long module, topics of discussion have ranged from ways to expand their companies’ global footprint, to leadership approaches and employee motivation.

“It’s a chance to exchange ideas with other CEOs,” says Michael O’Keeffe, CEO of Emeis Cosmetics in Melbourne, Australia. “This first module on the rapidly changing Chinese economy has been excellent,” he says. “We have really delved deep into China, building our understandings of the challenges, opportunities and misconceptions of this market.”

As the program progresses, O’Keeffe is looking to grasp the global context for his business. “I’m looking for insights into the opportunities, threats and challenges for my business in this environment in the coming years.”

Changing Perspectives

O’Keeffe is one of a diverse group of CEOs embarking on this year’s program looking to better understand the ever-shifting global context in which their organizations operate.

Taking a step back to reflect and analyze the business environment, says O’Keeffe, is a way to “explore new ways to manage an international business, improve organizational effectiveness, and develop leadership qualities.

Ajay Pal Singh Arora agrees. “It’s been 20 years since I last studied management,” says the regional director at Tata Consulting Services, an IT and business solutions company based in Belgium.

The program and peer-to-peer learning will help him understand “the fast-changing paradigms and new academic models and then implement them back in the office.”

International Mindset

The program’s international reach, with modules located in strategic global business hubs, was a key reason for joining, says O’Keeffe.

“The program itself is extremely international with classes in Europe, Asia and the U.S. This is important as the geographical location of each module broadens your perspective.”

The first module represents the Asian leg of Global CEO program.

Further modules are scheduled for the Wharton School in Philadelphia and IESE in Barcelona, later in 2016.

Bringing together CEOs to share ideas, learn from each other and reflect on their leadership abilities is an “almost unequalled experience,” says O’Keeffe.

“The exceptionally high caliber both of participants and professors creates not only a productive learning environment – but also valuable networking opportunities and the chance to help one another.”

After all, “It can be very lonely at the top,” says Arora, something the Global CEO Program looks to challenge.

“Why do we do what we do? We do what we do for the people, the memories, and the great things that we're able to accomplish when enough people care.”

This was the vision shared by SAP CEO Bill McDermott. McDermott joined associate dean, Eric Weber, on campus in Barcelona this week to share his personal leadership journey and some of the challenges he has faced down during his tenure at the German software multinational.

Making Good Better

When McDermott joined SAP in 2002, he was hardly jumping aboard a sinking ship. The company was already being touted in the early ‘noughties’ as world leader in business software.

McDermott nonetheless saw room for improvement, particularly in the area of customer relations, user experience, and human resources; all of which he believed would yield opportunities for growth.

“You can’t spend all your time on what the scoreboard says, or on where you’ve been,” he says. “You have to really analyze where the world is going.”

And analyze is exactly what he did.

McDermott realized that the world was changing – change driven by disruptive growth in mobile technology, and emerging consumer-driven economic models.

His primary objective was to align his management team around innovation by creating new architecture solutions, and prioritizing the cloud – a solution, he says, that empowers companies, clients and people to “think outside their four walls.”

“We're no longer in a ‘business to business to consumer’ economy, we're in a ‘consumer to business’ economy,” says McDermott. “Staying relevant is about identifying the trends and seeing the opportunities.”

That, and building the right teams.

Power to the People

“It’s the companies with the best talent that win,” says McDermott. “Don't underestimate the important role that your people play in your organization.”

Strong leadership is distinguished by the “people part” of what CEOs do, he says. A responsibility that should account for 80 percent of leaders’ time.

“You have to build great teams, coach people, give them direct and honest feedback, nurture them and challenge them. And you have to hold them accountable.” Responsibilities that call for a high degree of ‘emotional intelligence’ from senior management.

SAP as an organization has a high “IQ,” says McDermott. But its success also hinges on its “EQ”: “Knowing how to make the human connections is essential. Identifying and harnessing what it is that helps you connect with your customers, your colleagues, your peers and others.”

He attributes the company’s enduring success on a culture of “deep empathy for humanity. And the importance of authentic human connections.”

Lessons in Leadership

The first non-German citizen (McDermott is from the U.S.) to be appointed CEO at SAP ES, McDermott’s journey to leadership has taken him from the corner store in Long Island – a local shop he opened as a family business – to the likes of Xerox, Gartner and Sieber Systems.

He learnt the importance of human connections, trust and team work at Xerox.

“I was given the company’s worst-performing team to manage. We were based out of Puerto Rico, and right at the very bottom of the league in terms of performance.”

McDermott managed to reverse his team’s fortunes inside of 12 months. By the end of the financial year, Puerto Rico was occupying the number one spot. He credits the turnaround with connecting at a human level with his team.

“As a leader, you should realize you that don´t have all the answers, and that no-one´s perfect. You have to listen to people – they always know. Trust your people.”

Playing the Hand You’re Dealt

McDermott has faced a serious personal challenge recently, losing an eye in a freak accident that could have cost him his life.

Difficult as it was to overcome, the accident has challenged him to value his good fortune. “I lost sight, but in a sense I gained vision,” he says.

“You are the sum total of all the experiences you’ve gone though. And whether you have a lucky hand or an unlucky hand, it’s how you play it that really matters.”

McDermott left the MBAs and alumni with a thought: “Celebrate what you are, and don’t waste time being disappointed in the things you’re not.”

“Be sincere and authentic in how you connect with others. And understand that we’re better together than apart.”

Andrea Hayem, MBA’16, from El Salvador, is walking into her dream job next May.

“I still can’t believe it,” she says. “I’ll be starting as an investment banking associate at Morgan Stanley in London after graduation.”

This is the culmination of years of hard work and consolidated effort. “I graduated with honors from college in the U.S. I was a manager at a top financial services firm. I was also highly involved in extracurricular activities,” she says. “An MBA from IESE was the next step for me.”

However, it was not an easy option, she says.

“Even with savings and help from my parents, the MBA was out of my reach.” By completing the two essays in the scholarship section, Andrea brought her dream closer.

“I took a chance and applied. I was over the moon when I received the news that I had been granted a scholarship.”

IESE recognized Andrea’s potential and backed her from the start, she says. “The scholarship is a means of accessing the program and reaping the benefits. Education and scholarships make a transformational combination.”

Supporting Talent at Every Stage

Andrea is one of the many students around the world who have received a scholarship from IESE, and taken a step forward in their career.

“So far, in my business career, the most important issue that I have faced is making the transition to manager. IESE helped me do this successfully,” says Rodrigo López, EMBA’17.

This support has also meant the opportunity to study while working on his startup.

“My SME marketing and strategy company is in the early stages. As an entrepreneur I was aware of the financial burden the cost of the EMBA would have on this project.”

The IESE EMBA admissions team recognized Rodrigo’s talent –

and the potential impact an EMBA would have on his plans.

“From the beginning, IESE supported my candidature,” he said. “They understood my situation, the scope of my business projects, and helped me with the whole process.”

This included awarding him the Mitsubishi Electronics Entrepreneur Scholarship.

Having the opportunity to follow your dream and apply what you are learning to your own business is life-changing, he says.

“The EMBA changes you in more ways than one. It gives you a new way of thinking, and focusing. Your professional and personal outlook on life changes. I believe our lives are marked by our decisions. The EMBA helped me to transform my capacity to make decisions – affecting me, affecting my company.”

Supporting Career Change                                                             

Across the globe, IESE supports talent at every career stage. Scholarships are available for a broad diversity of profiles.

“The GEMBA was tremendously influential in helping develop the framework for my transition out of military life,” says Leah Wicks, GEMBA ’17.

“I’m capitalizing on both my GEMBA and previous military experiences to help business leaders solve challenges and create opportunities,” she says. Wicks, a U.S. citizen, is keen to build her own “positive social impact. I’m focusing on expanding my veteran's non-profit from a local to a national non-profit.”

The admissions team helped her take a first, decisive step, she says.

“They encouraged me to apply for a scholarship. Then they guided me through the process and kept me informed throughout both the admissions and scholarship timelines. They were a critical part of my decision to go to IESE and compete for the scholarship.”

This extra support from IESE was decisive for Leah. “The scholarship made the GEMBA financially available to me.”

“It also opened doors to business opportunities I had not previously considered, providing a peer group, network and experiences that helped me better understand the business world.”

“As well as an education that prepared me to take advantage of opportunities moving forward.” 

Andrea, Rodrigo and Leah are just a few outstanding people who have been impacted by scholarships. Working together with sponsoring companies, IESE is committed to building opportunities for exceptional students to become excellent leaders.

As Rodrigo puts it, “IESE believes in candidates who want to create value, improving the everyday life of people and companies in the business world.”

Find out more about IESE Scholarships and programs.

Get involved with #GivingTuesday and contribute to IESE scholarships & grants.

When it comes to research on Africa, there are two approaches, both of them extreme: there’s the macroeconomic approach with its broad sweeps; then there’s socioeconomic research, which is largely driven by NGOs.

African diplomats, researchers and academics joined co-Director of the IESE African Initiative, Alejandro Lago, on campus in Barcelona to explore the ‘middle ground’ – to attempt to identify what needs to be done to address Africa’s challenges in “real and practical terms,” and provide insight and knowledge relevant to managers and organizations doing business in Africa.

The IESE Africa Think Tank brought together Kenyan Ambassador, Bramwel W. Kisuya, and the Nigerian Embassy’s Minister of Chancery, Safiu O. Olaniyan. Joining them from the world of research was João Terlica, partner and MD of Sagaci Research, a pan-African research body.

Terlica pointed to the pendulum swing of perceptions about Africa as a place to do business. He described international press focus on the continent as a narrative that shifts from the “hopeless continent” to describing Africa as the “land of opportunity.”

These perceptions, he said, may be true in general terms. However the situation in Africa is not yet “equal for all companies.”

And things are further complicated by a general misunderstanding of what “middle class” means in Africa.

Defining the African Middle Class

While historically, multinationals have been seeing an increase in revenue in African countries, performance and market share remain low – their growth hampered, says Terlica, by their failure to grasp how the middle class consumer is evolving across the continent.

“Most people think that the African middle classes have happy families, buy houses and shop in supermarkets. In reality, being middle class in Africa means that you have a regular income, a decent home, you can eat a variety of food products, own a smartphone and pay your medical fees. However, you may not yet be able to buy a car, go on holidays or own mainstream appliances”.

He shared the example of Nairobi, where most householders own a TV, a DVD player, a stove and an audio system – but where only around 30 percent of people own a fridge or a car.

Ownership of appliances is a good indicator of household affluence, said Terlica.

An income of $700 a month was a typical middle class income in Nairobi – but a household income of around $1000 per month is “where affluence really starts to take off,” he explained.

Western Brands in High Demand

That said, African consumers do recognize and desire international brands, said Terlica.

In general, consumers see ‘international’ brands as higher quality products – products for which they are prepared to pay more.

He shared a number of examples of brands that are seeing high demand. European diapers, for instance, are in higher demand than local products, despite little difference in quality.

“Brand power is increasingly important,” said Terlica. “Price is not everything.”

“In our research, household names like Ariel and Ono sit at the top of the price and brand preference charts. The leaders in preference are oftentimes the more expensive brands.”

Adapting Marketing Strategy

Marketing to African consumers is not the same as marketing to other demographics. Terlica cited the example of advertising spend in Nigeria.

“Below the line activity such as events and promotions are disproportionately important in most African markets, and they allow companies to connect with consumers in a real and personal way.”

Retail models are evolving and will impact marketing strategy, he added. “We predict an 85 percent increase in shopping mall space over the next three years.”

As models and behaviors evolve, Terlica predicts “significant changes over the coming years.”

Sharing Ideas to Close Gaps Between Continents

Responding to Terlica’s remarks, Olaniyan pointed to significant changes in demographic structures and behaviors across Africa.

“Our biggest resource is our human resource and in Africa we are seeing the generation gaps being breached, which is a wonderful thing. Different generations working together will help us make the essential leap into the future. Connecting with international colleagues and networking also has its place,” he said.

“Though all networking and sharing needs to be sustained and meaningful.”

Kisuya agreed.

“My work as a diplomat is to develop connectivity and to help business people from Africa to interact with other communities to close the gap between continents,” he said.

“It is very important that we gain knowledge from each other. We need to develop new opportunities to address our challenges and we need to be creative in conquering them by bringing people with high level and low level technology together. We need to share information to bridge the gap and then disseminate it to our own communities.”

Lago described the Think Tank as “good news for us all.”

“Networking events like this allow us to take advantage of the strong programs that IESE already has in place in Nigeria and Kenya, and give us a platform to coordinate the many activities that we carry out on the African continent to support knowledge development and connectivity between businesses in both directions”.

“Leadership is about influencing people and empowering them to contribute to achieving common goals,” says Abertis Chairman, Salvador Alemany.

This is the ethos underpinning the growth of Abertis, which began as a national toll road operator and has expanded globally over the last few years.

Alemany was addressing MBA and Executive MBA students on campus in Barcelona this month. Leadership, as he sees it, is something that needs to be “incentivized on an ongoing basis.” And it shouldn’t be strictly linked to financial remuneration.

“Incentives should not ignore compensation, but under no circumstances should it be the most important factor.”

Rather, it’s the culture to be built and the “interplay of dignity and shared commitment between people” that Alemany sees as motivational for the “right type of leadership.”

Focus on the Positive

“To lead a project you need to feel it,” he says.

And this extends to leaders’ ability to understand people, determine whether or not they “possess vision,” and support them so that they can realize their vision –even if they make mistakes along the way. And they will, say Alemany.

“It’s essential for people make decisions without the fear of failure looming over them. They need to be thinking about how good success will feel and not about the possibility of failure.”

The way to do this, he says, is to focus on effort more than results. And accept occasional failure as par for the course.

“The emotional effort you exert in analyzing and learning from mistakes ultimately makes you stronger and wiser.”

This something that Alemany has experienced first-hand – not only as head of Abertis, but also over his 17 years as president of the FC Barcelona basketball team; a period where he savored “the bitter together with the sweet.”

“Overcoming the fear of losing helps us win,” he says. A maxim that can be equally applied to companies as well as sports.

Building a Business

“Making money is one thing, building a business is another,” says Alemany.

The latter, he believes, is not just about “running operations that make money.” In practical terms, building a business means “developing your full potential, committing yourself to something that will make you better.”

“It’s about applying the know-how you acquire with each project and thinking about medium to long-term sustainability. Building a business means understanding what your company gives back to society.”

Your long-term sustainability depends on this, he says: “If you’re not clear about how you are useful to society, you’ll lose your market, your reason for being, and you’ll go under.”

To be viable, a business project needs a framework to determine direction, a solid roadmap, and a set of values that undergird its purpose.

Alemany quotes Seneca: “If one does not know to which port one is sailing, no wind is favorable.”

Flexible to Change Tack

That said, business leaders also need to be flexible enough to change tack when the winds of change blow.

“The ability to react to the unforeseen is more important than planning.”

Alemany cites the example of Abertis.

“We started in Catalonia with a strip of highway, and today we’re the number one toll road operator in the world, with a presence in 12 countries. We’re growing exponentially across the entirety of our business.”

“This is something we could not have planned because we could never have imagined it”.