Excerpt

ABOUT THIS BOOK

The book begins by analyzing the hard facts of each megatrend and

examining the implications that each has for leaders. We then explore

the consequences of all six megatrends and set out what leaders need

to do in response.

1. Globalization 2.0.A new economic world order is emerging. Power

is shifting to fast-developing markets in Asia (China in particular)

and away from “old” economies. This will result in numerous op-

portunities and threats from highly localized market dynamics as

a new middle class materializes in emerging markets.

2. Environmental crisis. Critical natural resources are becoming

scarcer and climate change more threatening as a result of human

activity. In the face of accelerating costs and social and market

pressures, leaders will need to fundamentally rethink their oper-

ations if they are to continue to compete.

3. Individualization and value pluralism. Growing affluence in

emerging markets will drive increasingly individualistic attitudes

in more parts of the world. People will come to expect their indi-

vidual needs to be catered to, as both customers and employees.

This will create niche opportunities for customized offerings,

greatly diversify the demands of employees, and require far greater

sensitivity and agility from organizations.

4. The digital era. Living and working with digital technology is be-

coming the norm. Digital platforms are shifting power from or-

ganizations to consumers and employees—particularly younger

“digital natives”—and breaking down old divisions between per-

sonal and professional life. This generates unprecedented trans-

parency, which will oblige leaders to act with sincerity and

authenticity or see their reputations plummet.

5. Demographic change. A burgeoning and rapidly aging world pop-

ulation will transform markets and place enormous pressure on

social structures and welfare systems. This will result in a shrinking

global workforce, sparking a war for talent among organizations

on an unprecedented scale. Leaders will need to cope with the de-

mands of an increasingly intergenerational workforce, in which

each age group has vastly diverse attitudes and requirements.

6. Technological convergence. Scientific progress in fields such as

nanotechnology and biotechnology will transform many areas of

our lives, the greatest advances resulting from the combination of

these technologies. This wave of innovation will create untold new

product markets. It will also place huge demands on companies

to stay ahead of the curve and to collaborate closely with competi-

tors on complex R&D programs.

In our study of the megatrends and in compiling this book, we

have made every effort to take a truly global perspective. The mega-

trends are, after all, global in nature, and we have considered in detail

their implications for large, global organizations.

However, we are a German and a Canadian; our nationalities,

backgrounds, cultures, and social education are unavoidably Western.

To an extent, therefore, we cannot help but address the issues at hand

with Western perspectives, mindsets, and thought processes.

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Excerpted from LEADERSHIP2030: The Six Megatrends You Need to Understand to Lead Your Company into the Future by Georg Vielmetter and Yvonne Sell. Copyright © 2014 by Hay Group Holdings, Inc. Published by AMACOM Books, a division of American Management Association, New York, NY. Used with permission.

All rights reserved. http://www.amacombooks.org.