IESE Business School

Becoming a leader isn’t just about accumulating knowledge; it’s about developing as a human being.

This was one of many key insights shared by a panel of distinguished IESE alumni celebrating the MBA 50th anniversary on campus in Barcelona this week.

Prominent senior executives from the worlds of banking, finance, consultancy and recruitment, the alumni shared personal insights into how to make the most of the MBA, and what it takes to become a successful business leader.

Introducing them was Dean Jordi Canals who said: “We are convinced that through good management we can have a transformational impact on people, companies and society.”

This positive impact was illustrated by Cristina de Parias (MBA ’91), head of BBVA Spain and Portugal and president of Catalunya Banc.

Her return to IESE after 24 years, she said, had reminded her of a valuable lesson. “You have to be open to guidance from every source during your two years as an MBA. It’s not just about being a straight-A student; open yourself up to be a straight-A person.”

Personal integrity was a concept also taken up by Cristina Badenes (MBA ’98), partner at private equity fund management firm Meridia Capital.

“It’s simple but essential,” she said. “When I am recruiting I’m aware that there are specific skills or knowledge that can be taught; but you can’t teach people to be good listeners, or good people.”

Antonio González-Adalid (MBA ’75), CEO of investment company Cartera Industrial Rea agreed, and said that although he now only recruited at board level, the selection criteria remained the same: to identify “good people who will be behind you when you need support.”

And while an emphasis on functional skills remains valuable, it’s the emotional intelligence and insights gained from working alongside peers and faculty on the MBA that were deemed “more important” by Kristoff Puelinckx (MBA ‘96), co-founder and board member of TMD industry advisory firm Delta Partners.

“You’re not just coming to a center of business but a center of human values,” he said.

Smart but not Humble Enough?

While most MBAs are “smart,” not everyone is “humble,” said de Parias.

“In fast international markets you need to change strategies quickly. You may need to lead or follow, depending on the moment.You need values, passion and flexibility – the ability to compromise and work in teams.”

IESE had helped her prepare for the reality of managing international teams, she said.

“Teamwork was the main driver of my growth. What you learn is humility, flexibility and respect for the full scope of diversity.”

Pablo Sagnier completed his MBA in 1990. Now a partner at executive search firm Egon Zehnder International, he said that teamwork had also driven his career and helped him to grow as a person: “I learned to be humble, to listen, to collaborate with others and to know myself better.”

Alejandro Beltrán (MBA ‘98), managing partner at Mckinsey & Company Iberia agreed. “IESE puts emphasis on people. It’s a journey and it starts here,” he said.

“The first step is building foundations: problem solving skills, trustworthiness, teamwork. Develop them here at IESE and apply them afterwards.”

The Growth Mindset

Having the potential and desire to keep learning was described by Beltrán as key to success in business.

“I don’t care if you’re the smartest person on Earth,” he said, “You need to be open, to have a ‘growth mindset.’ We all have unconscious biases and see the world through our own lenses.”

This point was expanded upon by Pablo Sagnier, who said that leaders have moved on from the ‘kill or be killed’ survival instinct, through the era of expertise in sectors and functions, and now on into an era of strategic vision.

The next era, he said, would be one that prioritized growth potential: the ability to adapt to change in a dynamic, flexible world. Developing this would be rewarding, he said, but not easy. “Know yourself,” he advised, “Be curious, and always ask for feedback.”

Ask The Right Questions

Formulating the ‘right questions’ is fundamental to success in business, said Alejandro Beltrán.

“You see people working and going in a direction but they haven’t thought about the ‘why’.”

Cristina Badenes was keen to point to the value of the case method in developing curiosity and critical thinking capabilities.

“Many people are taught to learn but IESE taught me to think critically. We sometimes put a lot of time and energy into solving the wrong things but after hundreds of business cases, you learn to always ask, ‘What is the real problem?’”

IESE MBAs, said Kristoff Puelinckx, have already opted to play in the “Champions League” by choosing a top-ranked business school.

Now, he said, it’s a question of setting longer-term objectives.

“Go for your objectives and keep going for them without calculating or measuring their efforts.”

“Making things happen is good. But making a difference is better. Ask yourself every week and every year: If I weren’t here, would it make a difference?”

“Brazil is a wonderful country with thousands of opportunities – but it is also challenging. Each country’s business environment has its own peculiarities. And Brazil is no different.”

So says Neuri Frigotto Pereira, director of operational planning at Coca-Cola FEMSA.

Pereira was on campus recently for the Barcelona module of the Advanced Management Program (AMP) which he is pursuing in Sao Paulo.

“Geopolitical volatility, complex tax codes and restrictive labor laws make doing business in Brazil complicated,” she says. “Understanding how to navigate and stay focused is essential.”

David Sanchez, technical director for Brazilian real estate company, Developing Incorporadora, was also on campus for the Barcelona module of the Sao Paulo Program for Management Development (PMD).

“Many companies have tried to do business in Brazil and have failed because they didn’t pay the necessary attention to these elements – the result is impatience from shareholders,” says Sanchez.

Country Director for AkzoNobel, Heder Frigo, is completing his AMP together with Pereira. He agrees with Sanchez.

“Prepared, creative and resilient leaders are mandatory for unstable environments such as that of Brazil,” he says. “There is no room for mistakes.”

All three opted for IESE Executive Education programs in Brazil, with a view to meeting specific professional challenges.

Choosing the Right Path

Last year, Frigo was given a life-changing opportunity. “After over 20 years in finance, I was offered a new role in AkzoNobel Brazil, as a country director. I realized that my management toolkit required updating. The AMP is providing me with the necessary tools.”

Pereira says that for her, enhanced business acumen is only part of what the AMP program has to offer.

“The diversity of opinion and perspective is enriching,” she says. “The opportunity to engage in case studies, interacting with fellow executives that are working in leadership positions in different sectors, with different perspectives, it all really counts.”

For David Sanchez, a functional manager looking to make the transition to senior leadership, the PMD was the perfect fit. And the choice of school, he says, easy.

“The more I learned about IESE, the more I was impressed.”

Global Perspectives

The executive education team in Sao Paulo welcomes participants into programs from a broad diversity of sectors, backgrounds and functions every year.

Program Director for the PMD Sao Paulo, David Zanata, highlights the benefits that difference brings: “For our participants it’s a chance to experience and learn from a genuine breadth of insights into doing business globally; best practices and real business cases; emerging trends; and the interchange of diverse perspectives.”

“This is what people are looking for from an IESE program in Brazil.”

AMP Sao Paulo Director, Paulo Vendramini, agrees.

“The AMP and the PMD are the only two certified business programs delivering this range of benefits, and backed by a top international business school in Brazil,” he says. “The impact on participants is enormous.”

For Rodrigo Malho e Simonato, who manages regulatory affairs and institutional relations at Coca Cola Brazil, the PMD experience is proving nothing short of “transformational.”

“It’s the variety and depth of the issues debated on the program that is so key to forming that essential, broader perspective.”

Key tourism industry confirm its going from strength to strength at present. Its healthy growth and bright prospects are thanks to momentum from China, innovation and the new trends millennial tourists are setting.

The main drivers of the industry's growth and change were analyzed at IESE's 4th Tourism Summit. Organized in conjunction with Cornell University's School of Hotel Administration, the summit took place at IESE Barcelona campus.

China: Opportunities in Both Directions

China is the world's largest domestic market with an emerging middle class increasingly inclined to travel and spend. China is also its top source of tourists – 120 million per year. And its leading investor, with a growing involvement in the tourism industry. It is no surprise, then, that one of the summit's most eagerly anticipated sessions focused on China's impact on the tourism industry. And vice versa.

“There are opportunities in both directions,” said Eric Wu, CFO and board director of Plateno Group. “Firstly, the number of Chinese tourists visiting Europe is set for a very significant rise.” Forecasts for China's tourism market indicate an average annual growth rate of 8 percent over the next decade. Yet, said Wu, “Only 11 or 12 percent of Chinese tourists travel to Europe, with the majority opting for destinations closer to home, such as Hong Kong, Macao and Taiwan.”

Secondly, more and more large Chinese firms are establishing strategic partnerships with, or buying into, European companies.

“The aim is twofold,” said Jordi Martí, co-founder and managing partner of Drac Capital. “It’s not only about seeing more Chinese tourists in Europe. It’s about acquiring the brands, know-how and technology developed by the more established and mature European tourism sector. Then transferring this to China's emerging national tourism market.”

The case of Plateno Group illustrates both trends perfectly. Its recent merger with Jin Jiang created China's biggest hotel group, a giant boasting more than 6,000 hotels and 640,000 rooms. It instantly became one of the world's ten largest hotel chains. A ranking currently headed by Marriott (whose purchase of Starwood has propelled it into first position), IHG and Hilton. Given the constant trickle of Chinese capital into European tourism companies, this ranking could soon be led by a Chinese group.

The partnerships of Plateno and Jin Jiang with the Spanish hotel chains Barceló and Meliá respectively highlight this trend. Further examples are the Chinese group HNA's majority holding in NH Hotel Group; the joint venture between the Chinese online agency Ctrip and the Norwegian firm Royal Caribbean to form SkySea Cruises to serve the Chinese cruise market; and the Chinese conglomerate Fosun's acquisitions of 51 percent of Thomas Cook and 100 percent of Club Med.

“High-value strategic agreements between major operators are not the only opportunities available,” said Marti. “We're talking about smaller deals in different parts of the value chain too.”

“There are great opportunities involved in developing very specific niche markets,” said Wu. In particular those targeting Chinese millennials. Unlike previous generations, their language skills make them more comfortable travelling. They also value spending more time getting to know the countries they visit, rather than touring a dozen countries in ten days. And they seek unique experiences, for which they are willing to pay more.

“European operators entering the Chinese market should concentrate on a very precise segment,” said Steve Qi, managing partner of Eatonbridge Capital. “Plateno controls the low-cost hotel market. And competition is very fierce where five-star hotels are concerned because all the major luxury chains positioned themselves some time ago”.

Enterprising Chains

Established European tourism operators, meanwhile, are looking to make the most of their presence and experience in the industry. Not only through strategic partnerships with Chinese investors, but also by means of intrapreneurship aimed at seizing opportunities for growth stemming from sociological changes, such as the sudden emergence of millennial tourists. Technological progress – digitization, e-commerce, mobility services – and the market's globalization, the internationalization of supply and the provision of complementary services, are also tools European tourism operators hope to harness.

Hotusa, HotelBeds and Grupo Satocan all show the benefits of such opportunities. They lead to the creation of business units specifically designed to cover new areas and segments (for internal use or for offering services to third parties), investment in start-ups related to the investor's business model, and other corporate venturing initiatives that pave the way for cooperation between entrepreneurs and major corporations and help bring innovation into the sector.

“For corporations, access to innovation has huge potential and costs very little,” said Ángel García, founding partner of Lanta Digital Ventures. “And none of Airbnb, Booking.com or Uber was a sector corporation's brainchild.”

The lessons of life are, according to Anu Aga, inextricably tied to the lessons of loss.

Addressing the MBA 50th Anniversary in New Delhi this month, the former chairperson of Indian engineering giant Thermax observed: “From a young age it’s helpful to internalize that loss, separation and failure are built into our lives.

“At some stage we will have to face them. Every so-called misfortune, every rejection or loss teaches us profound lessons, if we allow life to be our greatest teacher.”

To put her ideas into context, Aga, explained the story of her own life, beginning with her childhood in Mumbai, when she was told to think only of getting married and having children, despite having higher grades at school than her two elder brothers who were encouraged to join the family business.

Her husband, Rohinton Aga, joined the family company instead, and took over as chairperson when Anu’s father retired. Anu studied a post-grad in social work then joined the company and worked her way up over five years to become head of Human Resources in 1990.

Facing Down the Challenges

It was then that she faced the first of what she described as “three great challenges” when Rohinton suffered a massive heart attack, followed by a stroke that “wiped away all his knowledge and intelligence.”

“He suffered brain damage,” said Aga, “but through determination he learned to write again, starting with ABC and 123. Within two years he led delegations from a business association, he authored a book. The lesson was: never take an expert’s opinion as final, but have faith in yourself. I also learned that nothing is permanent, and that you have to take care of your health.”

As head of HR, Aga said that she knew little of “hard-core business” but had already resolved to learn when her husband suffered a second massive stroke and died, in 1996. Two days later, the Thermax board named her as Executive Chairperson.

It was a “difficult time” – the company share price dropped to 35 rupees from a high of 400 rupees due, in part, to a national economic downturn. Shareholders were furious and Aga suffered self-doubt, believing that she had been appointed only because she owned 62 percent of the company’s shares.

“I had to face the second great challenge of my life: to wallow in self pity or to take charge of my life,” said Aga.

Building Confidence to Make Decisions

Against “great resistance” from other board members, Aga brought in an outside consulting firm, reconstituted the board and cut out many non-core businesses, which, she said, added to the top line but eroded the bottom line.

“In the ones we stayed in, we brought in a performance culture, rekindled innovation and customer focus.”

In 2002, Thermex turned around. In 2004, she retired as executive chairperson, a role that was taken up by her daughter Meher.

So why leave while the going was good?

“I’d always advocated smooth succession planning when I was in HR. Now I had to walk my talk.” Aga also said that she wanted to leave while she still had the energy to get back into social work.

Changing Tack

Aga is now active through the Thermax Social Initiative Foundation and she is involved with Akanksha, an NGO that promotes education for underprivileged children in Mumbai and Pune. She was recently nominated as a member of the Indian parliament.

Her decision to return to social work was in some ways motivated by what she described as her greatest challenge: just 18 months after the death of her husband, her son Kurush was killed in a traffic accident.

“The pain I’d felt when my husband died receded into insignificance compared with how I felt when my son passed away,” she said. “But by then I’d learned that pain is inevitable after such an event. But suffering, which lasts forever, is optional.”

Aga took inspiration from her son’s example to pursue new changes and challenges in her own life.

“My son was very concerned about poverty in India. He tried to get us to give a large percentage of our personal earnings to charity. I resisted at first but now we give 30 percent.”

Doing Business With Purpose

“A business cannot survive without growth,” says Aga, “but if growth is its only purpose then it should die, for it no longer has a reason to exist.”

“A business cannot succeed in a society that fails,” she said. “It cannot sustain itself. Growth without purpose is like cancer – it does not help the body. Aim high, challenge yourself, invest in yourself and live a life rich in experiences and deeper meaning.”

“Gender balance, diversity, and inclusion are simply good for business.” So said Professor Nuria Chinchilla opening the panel session “Breaking the Glass Ceiling - Empowering Women Leaders” in Hong Kong recently.

Over 200 IESE alumni and friends gathered for the event organized in partnership with the Hong Kong General Chamber of Commerce and the Government of Catalonia.

Family and professional reconciliation and the advancement of women in leadership positions have been gaining in terms of political and corporate focus – especially in Asia.

“We need women in the workplace,” said Chinchilla. “We differ greatly from men. And our traits are complementary. Companies cannot afford to neglect them. Diverse gender and cultural perspectives allow for greater innovation.”

The Glass and the Concrete Ceilings

“Women have two ceilings to break through – glass and cement,” says Chinchilla.

“The glass ceiling is a barrier to advancement brought about by male-dominated structures. Albeit an unconscious bias, men tend to hire people like them,” she says. This can hamper a woman’s career. The “boy’s club mentality” spills over into not only the hiring, but the training, evaluation, promotion and remuneration process, says Chinchilla.

This is quite different from the “cement ceiling” – a denser and not so easily shattered barrier which women often impose on themselves. “Fear of failure, low self-esteem, perfectionism, poor networking and negotiation skills are but a few of the traits,” says Chinchilla.

Yet worldwide data shows that 60 percent of all university students across all disciplines are women. And that only 20 percent of the world’s women prefer not to work and stay at home; while 20 percent would choose a career over domestic life. A majority of 60 percent of all women want both.

“IESE’s Corporate Family Responsibility model’s index helps promote women in the workplace,” says Chinchilla. “Companies are committing to flexible leadership, culture and conciliation policies, which allow for the integration of work, family, and personal life. This more humane model helps companies become more productive, competitive, responsible, inclusive and sustainable.”

Chinchilla was joined by four inspiring Asian-based women leaders for the panel who shared personal insights on how they overcame barriers, breaking through all the “ceilings,” while maintaining balanced personal lives as well.

Four Women to Watch

“I was a ten-year old immigrant with language problems,” said panelist Cindy Cheng. “I suffered from a self-imposed barrier which meant I focused on math instead. I went on to study IT and became a programmer. But I never felt good enough,” she says. The threat of being led by an incompetent manager was the push she needed to finally break through her cement ceiling of low self-esteem.

Cheng is now General Manager of SOS for Hong Kong and Macau and Vice-Chair of the Women Executives Club at the Hong Kong General Chamber of Commerce.

Yet Cheng wasn’t prepared to take the more senior roles abroad to help her up the corporate ladder – she chose to stay in Hong Kong with her husband. “That was a barrier to success, but my family values came first.”

Inma Díaz is Managing Director at Morgan Stanley and an IESE alumna.

“My mother was my biggest fan,” she said. “I had the fortune to be born into a family of assertive women.” Her husband also gave her the backing that she needed to succeed. “My husband provided me with the psychological support to get to where I am today,” she says.

Díaz broke through her English language barrier by applying for investment banking jobs on graduating.

After a lot of hard graft, she made it to the top. Another ceiling was the fact that she was a woman, a mother of four, and had to perform in a highly challenging environment. “I had to face people saying that I landed jobs just because I was a woman. That and accusing me of being a neglectful mother.” Fortunately for Díaz, she was in a company with the “right culture.”

“Someone told me luck is about looking for opportunities, persevering and trying harder each time,” said Mari Kuchinishi, Head of Oversight of Operational Risk and Permanent Control with BNP Paribas in Japan and APAC.

Kichinishi’s own personal barrier was raising her two toddlers (one with health issues) without the support of helpers or relatives while working full-time at JP Morgan. “I always have a plan B for any decision I make and I can justify why I made a choice,” she says.

Associate Dean at HKUST, Emily Nason, comes from a “traditional family, where studying a PhD was unheard of. And even more so for women.”

Like Díaz, Nason was also subject to outside criticism. “Going on to work in academia, in the same environment as my husband caused even more of a stir. People said that my success was down to my husband.”

A mother of three, she often thought of quitting. It was her mentors and husband who encouraged her to stay on. “I chose to be in education because teachers are mentors and they can touch your life and make a difference,” she says. “I had my share of both bad female and male bosses. But those challenges helped me think about what I was trying to achieve and why I should keep going. Carry on despite the bureaucracy and bad bosses because they eventually get moved.”

Empowering Women in Asia

Chinchilla also met with senior women executives in Hong Kong and Japan to discuss work-life balance and women’s empowerment in Asia.

While in Hong Kong, Chinchilla also met with a select group from the Women Executive Club of the Hong Kong General Chamber of Commerce. The conference, “Masters of our Destiny” – based on her book of the same name – focused on how to achieve professional and family conciliation.

“It requires a will to improve our reality. To strive towards a harmonious equilibrium between what we give and what we receive from society,” says Chinchilla.

“Diversity and Inclusion” was the topic of Chinchilla’s networking lunch and discussion with 60 senior executives from HSBC, one of the world’s largest banking and financial services institutions.

In Japan, Chinchilla met with the diversity and inclusion directors of two large companies in Tokyo, Lixil and Nissan.

Both have programs promoting diversity and inclusion. She also met with alumni to discuss corporate family responsibility as the way for more female leadership and sustainable growth.

More than 13.5 million working days are lost every year due to stress in the UK alone. This costs employers £370 million yearly. Companies need to take action, not only for their employee’s well-being, but their bottom line too.

Second-year MBAs are preparing themselves for the road with a new course, “Stress Management, Focus and Well-being” taught by medical doctor and mental health expert Professor Alberto Ribera.

“Our MBAs need to be able to maintain a stable and focused mind, even in turmoil.” says Ribera. “We are giving them the tools to bring greater calm and clarity to get results.”

Finding Your Inner Balance

After undergoing a series of stressful professional and personal challenges, Norwegian MBA student, Magnus Johansen, realized managing stress was an area he could really improve in.

“Unless I figured out how to deal with living and working in such a stressful environment, my life would most likely be significantly shortened,” he says.

The course has a unique, personal approach. “We all assess stressors differently,” says Johansen. And there’s not just negative stress.

“I’ve learned how to gauge whether certain ‘stressors” are really negative. It’s about how I choose to interpret them,” he says. “Ultimately, performance comes from within. Without a balance from within, performance will be shaken in times of challenge.”

MBA student and U.S. citizen, Jessica Engels, sees the course as a means to “build the emotional tools we need to handle the difficulties and pressure that will surely come with our post-MBA careers.” Engel’s self-awareness has grown thanks to the course tools and exercises.

“What will really set us apart when faced with stress is how we choose to deal with it. Developing good coping habits now, puts us ahead of the curve and helps protect our companies, our jobs, those around us, and – most importantly – ourselves.”

The class includes lectures on the scientific understanding of stress, case discussions to illustrate strategies to prevent burnout, and tools to build resilience and healthy habits.

50 percent of the course is dedicated to practice different physical and mental exercises such as sophrology and mindfulness based techniques for stress reduction guided by qualified experts.

“We spend half the time actually putting the techniques into practice – and that makes them stick,” says MBA student Sam Glasswell, U.K. “The students really appreciate this. The practical element really helps and gives you something to put into practice outside of class.”

The students were given a test at the beginning and the end of the course to measure anxiety. At the end of the six weeks, scores for anxiety had been reduced by an average of 30 percent.

Advice for Executives in the Field

Though the course is for students, Ribera offers advice for executives out in the field. “A great misconception is that we are able to multitask. Switching attention between tasks has a great cost in stress, time, errors and memory.”

Self-awareness – we are all human. We all get tired. Take care of your body, mind and spirit. And recognize initial symptoms of stress. Don’t compromise on fundamental healthy lifestyle habits: sleep, exercise, diet, etc. Develop routines to make sure you invest in what is needed to renew your physical, psychological and spiritual state. Learn about techniques that help to disconnect and relax.
Mindfulness / Focus – be in the moment. If you focus your attention, dealing with a multitude of problems becomes somewhat easier. Do one thing at a time, and do not start the next one until you finish. Turn off digital disruption to your day. Many studies show that dividing attention due to technology decreases productivity – and increase stress. So switch off phones, tablets, computers, email alarms and the like – unless you need them for the meeting or the task you are dealing at that moment.
Learn to say NO – say no deadlines you cannot fulfill. Say no to subordinates and colleagues that delegate back. Say No to urgent things that prevent you to take care of important ones.
Connect with others – we all need contact with others. Connect with your family and loved ones first.
Seek help – ask for help whenever needed

“After all,” says Ribera, “stress is related less to the external environment, but to our internal world and our perception of reality. One leader’s stress is another’s idea of relaxation. So we have to train our internal abilities and our self-regulation to cope with pressure.”

Massive loans by financial institutions, deficit accumulation and inadequate corporate governance. This dangerous combination nearly provoked the collapse of Spain’s economy – and caused the “longest, most painful and deepest crisis.”

So said Minister of Economy and Competitiveness, Luis de Guindos, at the 10^th anniversary tribute of the death of Professor Rafael Termes (1918-2005). Termes was honorary president of IESE in Madrid and first president of the Spanish Banking Association (AEB).

“Economic recovery hinges on the banking sector appearing solvent,” said de Guindos. Now the brunt of the recession is almost over, Spain’s financial system is hardly recognizable as that of four years ago, he said.

“We can feel confident going forward because the sector has undergone profound restructuring. I hope that we have learned our lesson in the last few decades,” said the minister.

He also stressed the banking sector’s need to maintain its transparency, values, prudence, austerity and relationship with the real economy.

Thought and Action

Professors Antonio Argandoña and Juan José Toribio noted that the virtues listed by de Guindos also characterized Rafael Termes, a key player in the 1980s reform of the Spanish financial system.

Both paid homage to his work as a humanist and his staunch support of the market economy. In addition to his work at IESE and the AEB, Termes was also managing director of the Banco Popular Español from 1966 to 1977.

“He always stood out for the consistency of his faith, thought and action,” said Argandoña. He also highlighted two pillars Termes’ life and work: his defense of human dignity and his defense of freedom, which he understood as subject to truth and to the rights of others.

“Fortunately, the things that Termes taught us are still reflected in today’s society – and in life,” said Argandoña.

Professor Toribio considered the role Termes played in the reform of the Spanish banking system as president of the AEB, a post he held from 1977 to 1990. And his contribution to the reputation of the banking sector.

“He always said that a bank is a financial company. And that as a company, it should both generate wealth for the people that participate in it as well as provide a service to society,” he said.

“The Father of Spanish Finance”

Toribio attested that if Termes had been alive four years ago, the world’s economy would be different. He would have avoided the risky real estate and financial bubbles that took the world to the brink of financial collapse. “He’d have identified the problem quickly, and he wouldn’t have kept quiet,” said Toribio.

He emphasized that Termes advocated transparency as an essential value of banking culture.

“The example he set as an academic, a businessman and a servant of the state and society has continued to grow in importance over time,” said IESE Dean Jordi Canals.

Canals defined Termes as “the father of Spanish finance.” He concluded that “As one of our first professors of finance back in 1958, Termes introduced all of these concepts – adapting them to the European and Spanish context.”

Transparency and reputation are two of the big business trends that IESE professors have highlighted for 2016, making the latest issue of IESE Insight magazine – on the topic of Integrity – a must-read for all executives to start the new year on the right foot.

The cover dossier, titled “Walk the Talk: Managing With Integrity,” says that legislation can only go so far to address the management shortcomings that dominated headlines at the end of 2015. “Numerous countries have passed laws to toughen the penalties for executives guilty of mismanagement,” states guest editor Antonino Vaccaro, associate professor of Business Ethics at IESE. “But this needs to go hand in hand with an effort to raise the level of integrity in management.”

“Indeed, no amount of legislation will ever be enough if executives don’t also change their corporate cultures and managerial practices to favor integrity and responsibility. Ethical awareness needs to become part of everyday decision-making, always mindful of the impact on stakeholders and society at large.”

An Ethical Approach Deeply Rooted in Values

The first article by IESE’s Joan Fontrodona and Pablo Sanz challenges an approach that would rely solely on legal compliance to right all the world’s wrongs. Compliance is important, they say, but only when taken in tandem with an ethical, integrity-based approach, deeply rooted in values that promote the moral development of organizational members.

Compliance officer Enrique Aznar and professor Antonino Vaccaro explain the current challenges facing the compliance function in multinational companies. They recommend a more expansive conception: the Chief Integrity Officer. And though “integrity” is in the job title, “integrity” has to be everyone’s job, they insist.

Executive readers, particularly those working multinationally, may say these ideas are good in theory but not in practice, as the ground-level realities are rather distinct. However, the fact that these recommendations need to be made relevant to each business context does not negate the underlying values that inspire them. Integrity is universal, and the final article by Matthias Kleinhempel of IAE Business School offers advice and examples for putting it into practice wherever your business operates.

Helping Leaders Deal With VUCA Conditions

Also in this issue, IESE’s Fred Krawchuk urges the creation of Strategic Integration Units to help leaders deal with VUCA (volatile, uncertain, complex and ambiguous) conditions, based on his military experiences in the Middle East.

In an interview with Pedro Videla, chairman of the Economics Department at IESE, Jaime Caruana, general manager of the Bank for International Settlements, elaborates on the main risks facing managers today. “It’s in everyone’s best interest to think about the repercussions of what you do,” he stresses.

Sometimes this requires reassessing your existing organizational structures, as Adam Galinsky and Maurice Schweitzer point out in their article. Is your company’s hierarchy facilitating efficient interactions and setting clear expectations – or is it suppressing the voices of those whose perspectives need to be heard?

If you sense change is needed, don’t wait until the pain is so great that you have no choice but to change. Although this is the tendency of many companies when it comes to adopting innovation, Igal Aisenberg reveals six keys to effect positive social change before it’s too late, based on his experience with drip irrigation systems in Israel.

What are you waiting for?

Members of the Alumni Association and subscribers to IESE Insight – a quarterly research-based magazine, published in separate English and Spanish editions – can read all these articles using their membership credentials.

Those who are neither Alumni nor subscribers can access the premium content either by subscribing to the magazine or buying the articles.

This Christmas take time out to catch up on the latest thinking on leadership development and sustainability strategies.

Two new titles from IESE faculty shed light on the importance of the entrepreneurial mindset in business leadership, and thinking ahead in terms of sustainability.

Shaping Entrepreneurial Mindsets: Innovation and Entrepreneurship in Leadership Development
Jordi Canals Margalef
Palgrave Macmillan, 2015

The formal process of developing innovation in management is still lagging the demand for it, argues IESE Dean Jordi Canals. The threat of disruptive innovation, especially from digital transformation, is real. At the same time, the population is aging, demand is slowing and global competition is heating up. Stability is not an option for even the most successful companies today. They have to innovate with the agility of a startup, getting new offerings to market quickly and nimbly.

So how do you lead your company with an entrepreneurial spirit? That is the main question behind the 2015 book edited by IESE Dean Jordi Canals, which brings together deans and professors from leading business schools to set the course for developing managerial capabilities that encourage innovation and entrepreneurship – as the times require.

Along with fellow IESE professors Pedro Nueno, Antonio Dávila, Julia Prats, Bruno Cassiman, Joan Enric Ricart, Pankaj Ghemawat and Eric Weber, Canals provides CEOs and senior managers at established companies with the innovation and entrepreneurial competencies to navigate through uncertain times. If the future looks uncertain, make sure you can greet it with the agility and forward focus of an entrepreneur.

More information / Buy book

Strategy and Sustainability
Mike Rosenberg Dale
Palgrave Macmillan, 2015

Many CEOs would prefer that sustainability issues would disappear. Yet they are here to stay and avoiding them is becoming impossible. The main question for today’s leaders is “how do we focus?” Prof. Mike Rosenberg’s new book, Strategy and Sustainability, is a direct response to this question aimed at C-suite executives in this dilemma.

Most books about sustainability never entertain the possibility of breaking the law or taking the low road on environmental issues. But this book speaks directly to business leaders who cannot ignore issues of sustainability, even if they'd like to. What executives need to do is face the issues strategically, in Rosenberg's view.

After laying down the groundwork for understanding what is at stake in sustainability efforts from many angles, Rosenberg takes an unconventional look at an array of different approaches and possible outcomes. From “taking the low road” – with minimal compliance – to more corporately engaging yet challenging strategic options such as “thinking ahead”.

CEOs and senior managers will continue to focus on the evolving demands of shareholders, employees and customers. This looks likely to bring questions of business strategy and sustainability closer together.

More information / Buy book

In a busy year for business ideas, transformation, turmoil and renewal, which insights from IESE faculty attracted the most online readers?

2015’s top 10 list features new approaches to marketing, strategy, operations, finance, and leadership and people management. Our diverse list of articles summarize books, studies, academic publications and technical notes for teaching produced by IESE professors this calendar year.

Below find the countdown of the year’s most widely read ideas:

# 10. New Marketing for a New Era
Nueno, José Luis

The 21st century is marked as the era of scarcity. Companies must change their marketing strategies to adapt to the times. José Luis Nueno argues in his book that marketing's mission is no longer to showcase a product or service in order to sell it, but rather to support sustainable consumption based on realistic expectations in a society of scarcity.
Read article

#9. Predicting a Product's Success Internationally
Gelper, Sarah; Stremersch, Stefan

Predicting new product growth internationally is a hotly debated subject. Does a country's urbanization level matter? Its media reach? Individualism? Using a sophisticated model to crunch the numbers for a wide array of country characteristics, IESE's Stefan Stremersch identifies the most powerful predictors of growth for six products launched in 55 countries.
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#8. Say Goodbye to Just-in-Time, Lean and Agile Management Models
Muñoz-Seca, Beatriz

Many cultural institutions ought to streamline their operations to increase efficiency. But what's the best way to go about it? Using Spain's National Institute of Performing Arts and Music as a case in point, IESE's Beatriz Muñoz-Seca presents an innovative model for service companies looking to optimize operations.
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#7. What Is the Ideal Price of a Product?
Villanueva, Julián; Segarra, José Antonio; Ferrer, Iciar

How can you optimize the price of a product or service? Julián Villanueva, José Antonio Segarraand Iciar Ferrer outline the variables to keep in mind and explain how to tailor your pricing policy. For starters, remember that most buying decisions are far from rational, as they are influenced by certain psychological factors.
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#6. 25 Keys to Take Control of Your Professional Life
Chiesa, Cosimo

"Be the change you wish to see in the world," as the inspirational saying goes. Cosimo Chiesa embraces that maxim in his book on personal leadership, which runs through 25 keys to self-management -- from taking the reins of time management and learning to say "no," to looking after one's relationships with others.
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#5. Where to Invest? Ranking 120 Countries on Their Private Equity Attractiveness
Groh, A.; Liechtenstein, Heinrich; Lieser, Karsten; Biesinger, Markus

The United States remains the most attractive market in the world for private equity investors, based on its risk/reward profile. It is followed by the United Kingdom, which has climbed on the charts in recent years. Meanwhile, emerging economies are making strides, as revealed in the 2015 Venture Capital and Private Equity (VC/PE) Country Attractiveness Index.
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#4. Are You a Genuine Leader?
Stein, Guido

If you search for books on "leadership," you will find hundreds of thousands of titles. But are their theories tested? Is anything new being said in each year's releases? IESE's Guido Steindiscusses four levels of leadership and argues that influence, connection, commitment, vision and authenticity are among the essential and time-tested ingredients.
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#3. It's Not How Old You Are, But How Old You Feel
Kunze, Florian; Raes, Anneloes; Bruch, Heike

Especially during times of change, a young workforce can help a company grow and maintain a long-term view. But what if your company's workforce is no longer young? A study by IESE's Anneloes Raes and co-authors finds that certain HR practices can help employees feel young and reap the productive benefits of youth.
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#2. Business Model Innovation: Designing the Process
Zott, Christoph; Amit, Raphael

Innovation usually means a new product. But what if it meant a new way of doing business? Christoph Zott of IESE and Raphael Amit of Wharton examine the enormous implications that business-model innovation can have, and they derive a business-model-innovation process from the world of design for how best to go about it.
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#1. London Tops the Ranking of the World's "Smartest" Cities
Berrone, Pascual; Ricart, Joan Enric

One European, one North American and one Asian city claim the top three spots as the world's smartest cities, while a resounding 15 of the top-25 list hail from Europe. Under the direction of IESE Professors Pascual Berrone and Joan Enric Ricart, the latest edition of IESE's Cities in Motion Index also reveals that rapid progress by the likes of Hong Kong, Singapore, Boston and San Francisco threatens the old world rule.
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“Birth is a lottery: you don't choose where you’re born, nor do you choose your circumstances. I have been fortunate to have opportunities in life. And as an IESE MBA student, it's my duty to help society in some way.”

These are the words of Ali Hassan, a second-year MBA student from the U.S., and an active member of the IESE Social Action Club.

And they’re more than just words.

In a little over a month, the MBA program's Social Action Club has raised more than €23,000 for solidarity organizations like ASPASIM, Mary's Meals and the Daydream Foundation, which provide funds for various social causes.

“Life is a gift that you receive without having done anything to deserve it,” says Juan Jacobo Sarrado, a fellow MBA and member of the Social Action Club.

“Every moment in life is an opportunity to do things the right way or the wrong way. So why not do good for those who have not had the same opportunities as you?"

IESE MBAs have taken this sentiment very much to heart and between the end of September and November they have undertaken a number of social activities to raise funds.

Baking a Difference

Cake baking may not feature on the MBA curriculum, but students baked up a storm earlier this year. “Giving back cakes” were the fundraising vehicle for ASPASIM, a nonprofit entity focused on caring for persons with intellectual disabilities.

The Beautiful Game

Jointly organized with IESE Football Club, this year’s charity tournament in October brought together more than 70 participants, including students from the MBA and Executive MBA (EMBA) programs, faculty and staff from the school. In total, the event raised almost €1,000, also for ASPASIM.

The "Movember" Phenomenon

IESE's "Movember" team was third-ranked nationally, raising over €8,000 for the Movember Foundation's annual campaign. The aim is to raise awareness and funds for the fight against the cancers most common among men.

Thanksgiving Day Auction

A jersey signed by Leo Messi and a paintball game between students and professors were the two "items" that brought in the most, with bids of €1,700 and €3,600, respectively.

The funds raised in this charity auction went to:

The Movember Foundation.
Mary's Meals, an organization in the United Kingdom that works in 12 countries in Africa, Asia, Latin America and the Caribbean to help at-risk children.
The Daydream Foundation, which for more than 14 years has focused on the social integration of children and young people from dysfunctional families.

Run4Africa

Organized by MBA and EMBA students, in collaboration with the African Business Club and Run Bike Swim Club, this 5 km run raised almost €3,500 for Mary's Meals Social Volunteering

The Social Action Club does more than just raise funds for causes. It also engages in social volunteering.

More than 25 MBAs took 35 children from the Daydream Foundation to Barcelona's emblematic amusement park, Tibidabo.

The experience was significant for second-year student, Andrea Briones: “By the end of the day language barriers had disappeared and each child was beaming."

“It's nice to see how after spending just a few hours with children from families with issues, the time that you devote to them has such an impact on them."

Students also volunteer at local organizations such as Braval and Terral, which run socio-educational support programs for young people, women and immigrants and promote social integration and cohesion.

In IESE's DNA

Juan Jacobo Sarrado opted to take his MBA at IESE, in part, because of the school’s commitment to "developing responsible managers who will make a positive impact on their surroundings."

Leadership with integrity was also key to Ali Hassan, who places high value on IESE activity in the field of social engagement.

“I hope to keep social engagement a real part of my professional life,” he says. “Giving back should be a constant thing. It’s a way of life.”

What does 2016 have in store?

It’s going to be a decisive year for the economy, international relations, new technologies and business, say IESE professors.

Javier Díaz Giménez, Africa Ariño, Sebastian Reiche, José Luis Nueno and Sandra Sieber highlight some of the coming trends.

International Relations

China: Javier Díaz Giménez predicts growth slowing to around 6 percent for Asia’s powerhouse.

Africa: Increased purchasing power will create diverse business opportunities across the continent, says Africa Ariño. Kenya is poised to rival countries like China and India in manufacturing. And with China and the U.S. losing something of their allure, more multinationals will be turning their attention to Africa this year.

Latin America: Díaz Giménez warns that 2016 may see growth impacted in countries with debt in U.S. dollars, due to interest rate hikes by the Federal Reserve.

Economy

Cheap oil: Díaz Giménez also predicts that continued fracking will keep the price of crude low, which presents opportunities for high energy consumers but also challenges for oil producers and environmentalists.

Geopolitical tensions: investment could be affected in countries most influenced by the uncertainty caused by the migration crisis in the Middle East, says Díaz Giménez.

The Sharing Economy: collaborative consumption will continue to grow throughout 2016. Companies would do well to analyze how this might affect their business, warns Ariño.

New Technologies

Data-based models: Trust and transparency will be the major issues facing business models based on big data, says Sandra Sieber.

Industry and technology: the era of the Industrial Internet will see large companies deploying consumer technology within their own industrial environment – and reconfiguring their ecosystems to connect not only with their clients, but with their clients’ clients.

Mobile payment taking off: Sieber stresses that banks will need to use data responsibly to undergird mobile payment strategies.

Companies

Millennials: Businesses need to be all about innovation, sharing, personalization and omnichannel if they want to connect with a new and highly demanding generation of always-connected, digital and mobile natives, says José Luis Nueno.

Cultural intelligence: The future of business is about hiring people with “multicultural diversity,” says Sebastian Reiche; and leveraging their knowledge, skills and competencies.

Integration and the glass ceiling: Reiche highlights the value of using diversity as a source of innovation and competitive advantage. It’s time to accelerate the progress of women into senior positions, he says.

Reputation: Sieber highlights the need to understand consumers’ needs; and to respond to concerns over privacy and security. Businesses need to earn their consumers’ trust.

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Women leadership and gender balance at work – issues concerning most companies. This year, the school hosts a variety of activities for women in business around the globe.

Below are some of the upcoming sessions, conferences and networking events that will be held this trimester.

Two International Conferences

One of the most important conferences to be held in Barcelona next January 27 is the IESE Women in Leadership (I-WIL) Conference.

Topics for debate will include how to find the right role model and mentor – and connecting with the right people in your sector. The conference will also examine how to lobby for gender balance in senior management.

Speakers include: Former Minister for Education and Women of Chile, Carolina Schmidt; General Manager of Poland & Baltics, The Coca-Cola Company, Ania Jakubowski; Iberian Zone President, Schneider Electric, Patrick Gaonach; Director, Europe Africa Russia Caspian CWI, Baker Hughes, Eghosa Oriaikhi; and Partner, Institutional Relations & Corporate Development, Meridia Capital, Cristina Badenes.

Participants will be inspired and empowered through the exchange and sharing of personal stories of success in breaking the glass and cement ceilings.

The international tenor of both the conference and the school doesn’t end here. Another indispensable stop is the Women's Leadership Conference that will be held in Sao Paulo (Brazil) next March 9.

Women leaders will gather from across the continent to build debate, share insight, experience and build networks.

More Networking Opportunities

There are frequent opportunities for women in business to meet and network at IESE.

Executives looking to hone their leadership communication skills can sign up for the “Optimize Your Authentic & Charismatic Communication” session on Thursday January 21 at IESE’s Barcelona campus.

Communications expert and coach, Liliana Cabal, will share the inside track on persuasive communication together with cutting-edge techniques and tools for immediate implementation.

This session is tailored to the needs of women MBA and Executive MBA students and alumnae.

On February 17, IESE’s Barcelona campus will host the trimestral breakfast on Women in Leadership. On this occasion, the school welcomes International Women’s Entrepreneurial Challenge 2015 award winner, Regina Llopis, CEO, president and founder of MAIA Mexico and board member of the International Women Forum Spain.

Values are a key asset to family-owned businesses. A new report, led by IESE professor Josep Tàpies, analyzes how values are kept alive and passed on to succeeding generations in family businesses from Spain, Portugal and Latin America.

In Spain, 85 percent of companies are family owned, according to the Barcelona-based Institute of Family Business (Instituto de Empresa Familiar). Together, family businesses generate nearly 14 million jobs — that is, three out of every four private-sector jobs in the country.

Faced with such figures, no one would question that family businesses are a pillar of the Spanish economy. But where does their strength come from?

In most cases, the core values that first launched the company continue to be key elements of the organization. But it can be difficult to keep these values alive under the pressure of generational differences, geographical distances between family members and the challenges presented by the company's growth.

These are the conclusions of the new report published by the Chair of Family-owned Business, run by IESE and Atrevia. It is based on qualitative and quantitative analyses of interviews, discussion groups and surveys conducted with managers of family businesses.

Participants included members of global companies such as Grupo Pascual, Damm, Gaes, Simões, Miguens and Proeza.

Handing Down Values

Most participants in the study agreed that belonging to a family-run business not only increased worker commitment, it also helped the business itself stand out. The family element, indeed, formed a basic part of the company's prestige and visibility.

In the survey, 70 percent of respondents considered that their company's status as a family business helped them to get ahead of the competition. Nearly 84 percent believed it to be beneficial to the firm's reputation, and almost 88 percent felt it added to the image held by the client or final consumer.

Communication at Family Headquarters

Even though family values are clearly defined (most companies have some sort of document that lays them out), it is often more difficult to make sure that everyone — family insiders and outside employees alike — follow them.

Communication is an indispensable tool for keeping these values alive, both within the family nucleus and throughout the wider business culture, as well as for spreading them beyond the limits of the firm.

Communication is also necessary to keep family members informed of the company's progress. Almost 60 percent of family enterprises lacked formal communication tools to inform other family members (who, when they were informed, often received the information at family gatherings) of how the company was doing. This lack goes some way to explaining the 42 percent of those surveyed who were not aware even of their firm's volume of business.

This absence of established channels was particularly striking given that survey respondents were well aware of their importance. A clear majority admitted that the existence of formal communication mechanisms influenced the level of family commitment to the company (79 percent), assurance of continuity (72 percent) and growth (69 percent). Moreover, 81 percent believed that such mechanisms helped pass on the family values that sustained their companies.

Communication Stops at the Door

Most of the companies surveyed also lacked strategic communication plans and protocols. This was in spite of the fact that almost all of the interviewees agreed that the family element was something to highlight in external communication. Indeed, 41 percent of companies used their identity as a family business to add corporate value.

Notably, over half of participants reported that their firms' public representatives had not received any training nor instructions on how they should communicate with the media. Only a quarter had a designated spokesman for times of crisis.

As a result, although many of the companies in the study invested resources in promoting their brand and their business, corporate communication received short shrift.

Inequality and TTP – two words worth noting. They might just affect your business more than any others you hear in the press this year. IESE professors have been debating and musing over these words and more in our blogosphere.

Inequality and Unemployment

Oxfam’s latest report on world poverty and inequality was released this week, warning of the ever-widening gap between the world’s rich and poor. Just in time for the World Economic Forum (WEF) in Davos.

The WEF president’s prediction that 7 million jobs world-wide will be lost due to economic changes and robotization has added to the polemic.

Last term Sandalio Gómez, Eduardo Martínez Abascal and Antonio Argandoña made clear that these are not just Southern European issues. Unemployment is one of the main reasons behind increasing world-wide inequality in society. Especially in the United States – featured last month in Xavier Vives’ blogpost.

How can we reverse this trend? And what can countries creating employment teach us?

Energy

Crude oil at 25 US dollars a barrel. Iran is back in the game after years of sanctions. And the U.S. is exporting for the first time in 40 years.

The global energy panorama is rife with economic, geopolitical and environmental disparity. It’s not just our economics professors who are writing about this. In his blog Doing Business on the Earth, Mike Rosenberg also touches on the topic.

The remaining questions are what – and when – the tipping point will be. And how this will impact the different crude oil import and export economies. In the coming days we will delve deeper into this issue.

Immigration and Refugees

The conflict in Syria has caused the displacement of tens of thousands of people. Many of whom have chosen Europe as their destiny – bringing with them many new issues for the European Union.

Regulation and patrolling of the Schengen zone, humanitarian drama and how to welcome and treat immigrants and refugees. And last – but by no means least – how do we integrate so many displaced people into the workforce and business? As well as integrate them into society in general.

During recent months, Sebastian Reiche’s blog has been charting this sorry tale of geographic mobility. War, conflict, discrimination – just some of the words on an ever-growing list associated with forced expatriation.

Women in Leadership

For the first time in 30 years a women was voted Person of the Year by Time Magazine in 2015: German Chancellor Angela Merkel. Above and beyond her political profile, Merkel has epitomized just what today’s women leaders are capable of.

From the blogosphere, IESE has analyzed the effect of women on boards of directors and advisory boards. Fresh perspectives and creating a more humane working environment are not all that women leaders bring to the table. Increased profits and performance are also par for the course.

This year, IESE Professors Nuria Chinchilla y Mireia Las Heras will continue to analyze the measures needed to shatter the glass ceiling – and smash the cement one – so that women directors can serve on executive and advisory boards with the same conditions as men.

Paris

After the tragic attacks in November, Paris has become a symbol of the war on terrorism. It was also the host of the XXI U.N. Conference on Climate Change (COP21). Foundations were laid for subsequent agreements to favor putting the brakes on global warming – essential for future sustainability.

The COP21 brought to the fore the complexities of multi-country negotiations. In his highly recommendable podcast, Kandarp Mehta commented on this – and the need for companies to take environmental sustainability more seriously in terms of strategy. Mike Rosenberg has also published extensively on these issues.

China

The world’s attention turned to China in the new year, in wake of the recent stock exchange earthquakes.

Are these stock market storms due to slowing growth – or are they preludes to a crisis? Could they be the effect of an economic policy bent on finding better stability at any cost?

In his recent podcast,Pedro Nueno analyzes the situation and whether we’re facing a crisis or just a simple retuning.

TPP and TPIP

Development of the commercial Trans-Pacific Partnership – TTP – between the U.S., Japan and 12 other South-Pacific countries will be in the spotlight over the next few month. Barak Obama hopes this agreement will assure the loyalty of his Atlantic and Pacific commercial partners.

Will Europe end up joining the TPIP - Transatlantic Trade and Investment Partnership version?

Mike Rosenberg’s post and Víctor Pou’s blog explore these issues.

European Union

With the Greek Crisis under control, the E.U. turns its attention to incoming immigrants and refugees, dangerous voluntary and involuntary exits, and its ever-delicate economy’s health.

There have been – and will be – electoral processes putting in jeopardy the natural law of Germany’s ruling hand. It’s clear that 2016 will be an intense year, with the E.U. continuing to hit the headlines and providing material for many posts.

The future is hurtling towards us at an unstoppable speed. IESE faculty will continue to highlight the key issues, and analyze how they’ll affect you, your business and society in 2016.

The IESE MBA has been ranked 16th in the world by the Financial Times.

The program has achieved an excellent position in the ranking for international course experience (3rd worldwide) and is first among the top 20 business schools in terms of student salary increase (121%).

The Financial Times also highlights strong satisfaction levels among IESE’s MBA students three years after graduation, some 85% of whom reported they had achieved goals.

Analysis of the ranking data reveals that across all criteria, the IESE MBA has maintained its position; with the exception of weighted salary.

Improvements on previous years include:

Women in the classroom: 28.
Salary increase: 121% (1st place in the top 20 business schools.)
Student satisfaction: 85% objectives realized.
International experience offered by the program (3rd place): 60 nationalities.

IESE’s MBA program is unique in its global focus, thanks to the immersion of the students in real business situations via overseas modules in Shanghai, New York, Nairobi and Sao Paulo.

This international scope is reinforced by a strong exchange program, which gives students the option of studying in 30 leading business schools across Asia, Europe, Latin America, Middle East and the U.S.

Over the course of this year IESE is celebrating the 50th anniversary of the MBA – a program which has delivered world-class training to more than 10,000 executives around the world.

By the time you’ve finished reading this article more photos will have been taken than the entire 19^th – and 20^th – century. But digital transformation stretches way beyond photography. In recent years economic activity in all sectors has felt its impact.

Today we’ve gained enough perspective to look back and learn from the best – and worst – examples.

With over 25 years experience in the field of digitalization research, Prof. Josep Valor gave the inside track in 10 key lessons during his session at IESE New York. His conclusion was clear: “Companies need to develop a digital transformation strategy to survive.”

Clients’ user habits are changing. New digitally-led business models are popping up. And the underlying threat of an onslaught of digital competitors forces traditional companies to innovate – while being more efficient, says Valor.

Here’s a rundown of Valor’s 10 digital business lessons:

1. Good Times for the Long Tail

Reduced search costs has led to the long tail model – sell less units more often – gathering force. It’s easier for clients to find and buy products that satisfy specific needs. This prevents them buying a generic alternative.

For example, take the 54.000 million US dollars worth of publicity sold by Google on a yearly basis. Most isn’t from big brands like Proctor & Gamble or General Motors – but long tail companies.

It’s estimated that the biggest Google advertiser invests less than 500 million US dollars on search publicity.

2. Stand out From the Competition

The online entertainment company, Netflix, ended up competing for its price with other intermediaries which offer the same service, such as Amazon and Hulu. If you’d rather not die trying, you need to generate your own assets. Netflix did this by producing their own series – for instance House of Cards.

You need to create active leverage which makes you stand out from the competition. Products and services that don’t deliver reduce your profit margin.

3. Instantly Capture Generated Value

In the past, record labels only made money when they sold records. Managing artists and creating brands brought no revenue. Which is why some record labels now manage artists and organize concerts for profit. This way they capture value when it’s created – instead of waiting to sell records.

In an ideal world, artists would reward record labels for their groundwork – and later on find other ways to recoup this investment.

4. Watch out for Aggressive Neighbors

Sharing clients with another company – when yours is the marginal product – runs the risk of them cutting you out of the market.

Spotify only sells music. It shares most of its clients with Apple iTunes. Given that this is a marginal product for Apple and crucial for Spotify, when Apple launch streaming Spotify is in danger of being ousted from the system due to the low cost streaming package strategy offered along with other products.

5. Cutting Costs Isn’t Enough

Business models based on reducing transaction costs alone are in trouble. In the case of the Lending Club, the business model consisted of finding people willing to lend other people small amounts of money – with no guarantee of getting it back. This system had the company moving millions of US dollars.

Examples like Lending Club pose a threat to companies who base their business on reducing transaction costs (search and coordination) between different parties. It’s time to rethink their value.

6. Ensure Your Platform Delivers Value to Your Customers

How did Blackberry go from being the biggest player in smartphones to a company in freefall? Their users didn’t have many options. While Blackberry focused on producing the best device on the market, Apple and Android were one step ahead. Not only were they selling phones, they were creating ecosystems with applications to add value to their platforms. Making them much more attractive for the users.

We must ensure our products are of value to our customers. A platform’s perceived value lies in the accessories – not the product. Just think of Mattel’s Barbie doll.

7. Use Your Data

IBM Watson is an intelligence system that helps oncologists and other specialists in cancer diagnostic and treatment. It cross-checks the data of each patient with thousands of case histories and scientific articles to help doctors make more accurate and faster decisions.

In the business world, big data allows us to understand our clients’ needs better so we can offer products and services tailored to their personal preferences. It even gives rise to new business models.

8. Digital Transformation Can Render Your Business Model Useless

Kodak’s business model was based around charging a percentage for each and every photo taken in the world (through the sale of film, developing photos etc.). Digitalization changed everything. It multiplied exponentially the number of photos taken globally – but not the profit.

Technological evolution can render business models useless to the point that they have to be completely overhauled and reinvented. Continual updating and improvement is essential for survival. Also, we mustn’t limit ourselves to thinking only about the digital version of our product and service.

9. The Best Technology Doesn’t Guarantee Success

Webvan was launched as a supermarket able to deliver goods purchased within 30 minutes. Over optimistic sales projections coupled with vast unsustainable investment in infrastructure were its downfall. Not only that, the project had serious flaws in its business model, such as selling in areas with a scattered population.

Webvan’s failure stands as testament to the challenges online companies face when it comes to transporting consumers’ shopping preferences. And the internet’s limited capacity to change consumers’ habits.

Business models which combine a deep understanding of the sector and technological possibilities have the potential to prosper.

10. Remember: Anyone Could Be Talking About You

It’s worthwhile working on a digital communication strategy to manage social media for positive interaction with customers and stakeholders. And monitor who says what. This helps avoid cases like Nestlé. In 2010 they suffered serious damage in social media when they weren’t prepared for Greenpeace accusing them of malpractice in the elaboration of their products.

Reduce the gender gap in the workforce, and GDP will increase by 0.6 percent every year. And this rises to a full 12 percent growth in GDP for OECD countries in just over a decade.

The business case for fully integrating women in the labor market could not be clearer, says Carolina Schmidt, former Chilean minister for education and women in the Piñera administration.

Businesses are missing a “great opportunity” to increase competitive advantage, Schmidt told an audience at the IESE Women in Leadership Conference yesterday.

“Where you have gender balanced teams in senior management you see significant impact on return,” she said. “Analyst research shows that companies with higher proportions of women at board level outperform their competitors by 42 percent.”

This, said Schmidt, at a time when women are also making more of the purchasing decisions in the market than ever before. A significant 70 percent of household incomes are managed by women, she told the conference.

“Women are making the decisions about how money is spent in the home and outside. Key things like buying a car are increasingly being decided by women.”

Global demographics in education are also changing, said Schmidt, with women now outnumbering – and outperforming – men in tertiary education; some 47 percent of women in OECD countries are achieving university degrees, compared to 31 percent of men.

Time to Mine the Hidden Wealth

So what are businesses doing to “mine this hidden wealth?”

Not enough, says Schmidt.

“In OECD countries we’re still seeing less than 30 percent women in senior management positions. Demand for female talent continues to suffer from a generalized perception of women’s lack of capacity for leadership and stereotypes about women leaders who have no personal life.”

The supply chain too is being affected by legacy preconceptions, stereotypes and a real lack of female role models, warned Schmidt.

Concrete measures, she says, are needed. And the onus is on companies to understand the value women represent and make the changes necessary.

“Businesses can drive this by understanding the potential loss of competitiveness and making the business case for gender diversity. It’s time to measure and set goals; implement policies, sponsorship and training to tackle attrition; and reshape our corporate cultures.”

Provoking Change

One IESE alumnus doing just this is Carlota Pi, co-founder and CMO of Spanish energy startup, Holaluz, and graduate of the IESE Executive MBA.

“Our value proposition is ‘changing things,’” she told the conference.

For Pi and her fellow founders, workplace conciliation is “a thing of the past.”

Corporate culture at Holaluz, she says, is predicated on “being yourself.” In practical terms, this means starting from the bottom up, to ensure that equality and balance are built into every design decision.

Pi shared a number of key initiatives that her company is driving to build collaboration and create a “balanced ecosystem for women as well as men.”

Among these are a 90-day objective cycle; flexible working hours; and the addition of a crèche for male and female employees with children. Fruit too of this balanced ecosystem is the ratio of men to women employed at Holaluz, which is currently 50:50.

“Change doesn’t come by itself,” says Pi, whose operations are set to expand into Portugal, Italy and Latin America. “You have to provoke it. “

Bringing Men to the Table

Provoking change is also central to the vision shared by Eghosa Oriaikhi, director of Europe, Africa and Russia with energy multinational, Baker Hughes, and graduate of the IESE Global Executive MBA.

"Speaking out for change is not just a women’s issue, however," says Oriaikhi. "Men also need to be part of the conversation."

With male-dominated boards, executive roles and key jobs, the imperative is that men, too, adopt a proactive approach to reducing the gender divide.

“The analogy I use is about parties. You know there’s a party going on, but you’re not invited. Someone has to take the decision to open the door and invite you in.”

Key to this, she believes, is that men understand and think about the issues that women face, and the loss to business that lack of diversity represents.

“Gender balance is essential, not only in terms of return on capital or risk assessment, but in the broader context of how we advance socially and politically. The problems women face remain huge. We’ve come a long way, but we still have to address issues like pay gap, inequality in leadership and power, opting out of careers and finding no way to come back in – barriers to becoming who we want to be.”

Oriaikhi called for men in business to “break the silence,” and become a voice for change.

“Men can and should be models for change. They can widen the circle, share the issues, bring other men into the conversation. Change comes when people come together.”

IESE Women in Leadership – I-WIL

The I-WIL Conference welcomed an international audience of MBA students, executives and academics, including IESE ProfessorNuria Chinchilla and Kathleen McGinn, Cahners-Rabb Professor of Business Administration at Harvard Business School, who congratulated the speakers and the IESE MBA Women’s Club for organizing the conference.

The conference forms part of a raft of activities, sessions and networking events that IESE will stage over the course of this trimester to explore issues in gender balance, the issues affecting companies and measures to address the underrepresentation of women in business.

The Year of Women in Leadership

Last year it was 30. This year more than 50 MBA students signed up for the two-week international module in Nairobi, Kenya. Why the surge in interest?

“Africa was unknown to me – Kenya in particular. I wanted to experience the drivers of economic growth in that part of the world firsthand,” says MBA student Nils Eigenbrod from Germany.

“Africa used to be seen as the ‘final frontier’ in terms of developing business,” says Prof. Alejandro Lago, director of the Africa Initiative, who accompanied students to Nairobi.

“This is the module’s fourth year. Word of mouth is spreading. Africa is rising – and our students are part of it.”

The two-week module – delivered in conjunction with Strathmore Business School – is an opportunity to get a deeper understanding of doing business in Africa. And adapting to the local business and social cultures. “One of the first things we learn about business culture in Africa is that people matter more than schedules,” says Lago.

A Business Culture Built on Optimism

This is a sentiment echoed by Eigenbrod.

“Coming from Germany, I had to get used to the fact that in Africa, business is more about the personthan about the rules and contracts,” he says. “Everyone is very friendly and respectful. And they expect the same from us – and from their business partners.”

“You also have to be very flexible,” adds Lago.

“Time in Africa is elastic. This is a culture shock at first, things do eventually turn out as planned – just not when you expect. Doing business in Africa is about managing your expectations.”

Over the course of the module, students meet peers from Strathmore Business School Executive MBA and get to grips with the cultural differences – and similarities.

“Students are always surprised at just how professional and personal aspirations are the same. Entrepreneurs have the same aspirations. And values,” says Lago.

Something that both Lago and the MBA cohort find striking is the culture of optimism in African businesses. “Local businesses are keen to learn, and listen,” says Lago. “This is perhaps different to the perception of the African public sector which often projects a negative outer-image.”

Broadening Perspectives, Building Global Business Skills

Eigenbrod found the Nairobi module a truly hands-on experience – one that adds layers of knowledge and capabilities to traditional “classroom learning.”

“You need to experience the consumer reality in Africa yourself in order to truly understand it.”

Part of this experience sees IESE MBAs take on the role of project manager and consultants in local SMEs to help develop strategies for the coming year. These are oftentimes small companies without the resources to contract a top consultant.

“It’s amazing to watch our students adapt their acumen to the local market and to African culture. They are acquiring truly cross-cultural business knowledge and capabilities, while doing something positive for the local economy. Doing business in Africa with medium-sized businesses, helps develop African society too,” says Lago.

For Eigenbrod the main take-home is Africa’s huge potential. “This is one the most interesting regions to do business in. Now and in the coming years.”