As we turn to 2016, we wish to thank you for entrusting us with your most sensitive executive search, leadership effectiveness evaluations and board governance matters.
As clients and friends, be assured of our Firm’s commitment to provide the highest quality of service by, “doing the right things for the right reasons,” placing our clients’ interest well above our own.
Three observations for 2016.
Churchill commented; “It’s a mistake to look too far ahead. Only one link of destiny can be handled at a time.”
**Opportunity Knocks…Time to be bold**
In a radically reforming global economy characterized by asymmetrical events and black swans occurring at an accelerated pace, the quality and depth of senior leadership teams will be challenged as never before. And, therein lies “the treasure” for those that are bold, can execute efficiently, and relish the opportunities afforded by uncertainty.
The best CEOs don’t wait and observe. They act confidently, recognizing that upside is time-defined. Regardless of decisiveness and selecting a path for enhancing value, these leaders realize that it will not be a walk in the park…never is…too many variables. Managing through the unknowns requires foresight, discipline, continual reevaluation and true grit.
**Scale matters More Than Before**
Scale to dominate, coupled with adaptable but quick pace transforming strategies are a must for successful CEOs. To lead will require making “weighted” big bets, without fear. By all accounts, M&A transactions will accelerate this year after a record 2015. Accordingly, these leaders that successfully acquire and efficiently integrate “deals,” including weaving together managements, will win out.
**Alternatives and Innovative Strategies will place an acute premium on agile leadership and executive talent.
CEOs will place a premium at attracting and retaining top talent to assure delivering results quickly and proactively. In sum, CEOs must possess the judgment and mindset to candidly and continually assess the alignment between strategy, operational activities and the capabilities of the executive team to push through.
Boards, will face unabated pressures from institutional and activists shareholders to accrete value. Directors will be expected to transparently communicate more effectively with shareholders and with broader stakeholder communities. Boards will require frequent updates, “education” and transparency on issues, challenges and progress. Quarterly meeting updates are history!
THE BOTTOM LINE
Opportunities to unlock value have never been greater. Scale with agility is the order of the day.
Talented leaders will refine and direct top strategic priorities toward acquisition, integration and execution. To turn the odds in their favor, CEOs must be dedicated to a “deliverables” culture that is adaptable, agile and innovative.
Increasingly, Boards will demand accountability of their fellow Directors. New risks are inevitable and governance effectiveness of individual Director and Boards as a whole, will be measured on enterprise valuation, i.e., by how enterprise opportunities are seized and risks are adjudicated.
Benchmarks matter. The rope, as it should be, will be short for ineffective Directors and for CEOs who fail to deliver.
So, 2016 will be challenging but one of great opportunity.
We wish you a very successful New Year and may The Force be with you!