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10 Things CEOs need to know to survive in 2020

The innumerable challenges and crises that arise more quickly each day are forcing CEOs to adopt a new skill set and a new mindset.

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Photo by Brooke Lark from Unsplash.com

“CEOs are facing a daunting new level of challenges around social media, technology, political standoffs, and stakeholder pressures, says Stephen Miles, CEO of The Miles Group/TMG. “How a CEO acts and reacts around these challenges and crisis events today – and gets the company on board around the changes necessary – will be the moment of reckoning for a company’s survival.”

The person in the CEO role today is very different as a whole from 10-15 years ago, says Miles. “The innumerable challenges and crises that arise more quickly each day are forcing CEOs to adopt a new skill set and a new mindset.”

Below are 10 factors Miles and his colleagues at TMG have identified as essential focus areas for CEOs entering 2020.

1. Handling “social emotional events.” 

As we move into a ‘social economy’ with leadership actions being scrutinized and judged by millions over social media, CEOs are learning the hard way the consequences of not addressing this reality – and it often translates into their leaving the company. Responding to or taking a stand on today’s ‘social emotional events’ or issues – from plastic waste to the NRA to LGBTQ issues – as well as to a company’s own crisis events requires a new CEO skill set of being able to connect with the public at a completely different level.

2. Shifting from a “know-it-all” to a “learn-it-all” company with a growth mindset. 

The story of Microsoft under the leadership of Satya Nadella is a powerful example of embracing what Stanford psychologist Carol Dweck has identified as a ‘growth mindset’ – and how this approach can save a company. Nadella took the same assets that the previous CEO had and has added more than $850 billion in market capitalization. He has focused on a cultural transformation, moving from the fixed mindset Microsoft had held onto for too long. Under his watch, Microsoft has shifted from a ‘know-it-all’ to a ‘learn-it-all’ company that is open to learning and new ideas. More companies can learn from Nadella’s model as nothing can be taken for granted any longer in today’s rapid business climate.

3. Prioritizing investment in a business’s digital future. 

Digitization of every business has been talked about for the past 20+ years, but we have finally reached the point where this is real. For companies not in the tech space, investing in digital development means focusing on the ‘business of tomorrow.’ Many of them are so focused on winning in the business of today that they risk being late or outright missing the transformation to digital. But getting a company to prioritize digitization is not like Star Trek where a CEO can just ‘Make it so.’ The CEO must make this imperative part of their drumbeat from the top so that it gets the attention and investment required. Digitization requires a real focus and investment in building the organizational capabilities needed for a company’s future success.

4. Training the company, and the CEO, as an Olympic athlete.

The pattern of a company’s adding some excess during a good run and then shedding the excess when the run was over is coming to an end. Today, many CEOs see their companies as Olympic athletes – where it’s essential to maintain a top level of ‘fitness’ at all times and it’s everyone’s role to stay focused and not allow excess to creep in. CEOs themselves are also prioritizing their own fitness to stay sharp and withstand the physical toll of working in today’s very demanding global business climate with extensive travel, 24/7 communications, and more – a far cry from the wining-and-dining CEO of before.

5. Getting ahead of ESG “fails”.

The ESG – environmental, social, and governance – agenda for many CEOs has gone from altruism to ‘license to operate.’ ESG is the new normal. With plastic, for example, the companies affected have largely lost the narrative. The story has moved from ‘waste is bad’ to ‘plastic is bad,’ with plastic becoming the symbol for single-use excess. Corporations today need to stay out in front of the narrative before it gets hijacked and then turns their entire business model on its head. It is now sport to shame corporations and build a critical public mass to drive an agenda, so CEOs must stay hyper-attuned to the emerging issues that could pushed by stakeholders anytime.

6. Adapting to “shop local” as a possible new reality for supply chains.

Most multinational corporations have set up their supply chains to be truly global, but the 25-year business model developed around free trade and the frictionless movement of goods is now under real threat through trade disputes and protectionist policies. Companies are trying to assess whether this is merely a Trump administration blip or a new era of global protectionism threatening their existing business models and supply chains. If this is the new reality, many companies will have to shift their business models to a more local approach, which will cost more and take time to fully adjust. Many arbitrage opportunities around labor and other costs will be lost if companies are limited to more local markets for production.

7. Bracing for stronger regulatory action.

From heightened privacy concerns around technology companies to the newly appointed CEO of Boeing Corporation saying that the company now welcomes oversight, regulators around the world are finding a new sense of power – supported by a growing populist movement and an increased disdain for the corporation. Taking on monopolies is another area of focus, as the technology space has shifted dramatically in the two decades since the DOJ took on Microsoft, a company far less of a monopolist than what exists in many areas of technology today. We’re likely to see more actions taking on monopolists to either break them up or regulate them with a much heavier hand of the law.

8. Building competitive muscle as growth gets harder.

Every CEO we have advised over the past decade would tell you that each year has been harder than the previous year to find growth. In a ‘hard growth’ economy, the only way for companies to grow is to take market share from others, but the relentless focus inward on cost-cutting and disciplines such as zero-based budgeting have made it difficult to find executives who have built enough of a competitive muscle. CEOs will need their teams to get out of their more internally focused thinking and embrace a market-based approach that is driven by calculated risk-taking and creativity.

9. Preparing now for the next synchronized global recession.

Many industrial companies have been feeling recessionary pressures for the past six to eight months, and this is a worry for many CEOs. While the consumer remains strong, there are signs of the next recession being closer rather than further away. The swing card is the 2020 election and the potential for the Trump administration to complete further rounds of a workable trade deal with China. A deal would take a considerable amount of uncertainty off the table and likely extend the expansion for a period of time.

10. Shifting from linear leadership to managing to an outcome.

Companies are increasingly moving away from the vertical corporation, with its silos and asymmetries of information and linear paths to achieving goals. In today’s highly matrixed organization, executives must also lead horizontally, working with others and collaborating in a way that requires a lot more range to their leadership toolkits. They must consider the direct and indirect constituencies that will influence their strategic objectives. We have moved away from linear ‘Point A to Point B’ leadership – it is now about managing to an outcome.

“What all these actions have in common is a hypervigilance to external factors,” says Miles. “The always-on, 360-degree CEO who takes in input from everywhere and adapts quickly is the one who will outperform.”

Strategies

Tips to achieve healthy headspaces for a productive workplace

Eastern Communications, one of the premier telecommunications companies in the Philippines, believes that enterprises need to support their employees to help ensure productivity while mitigating the effects of isolation and uncertainty.

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The world’s response to COVID-19 has resulted in the most rapid transformation of the workplace. Working remotely is a challenging setup in the quarantine economy, as employees struggle to balance work and personal life. Moreover, uncertainty and isolation during the pandemic have caused various physical and mental health problems among employees. 

Eastern Communications, one of the premier telecommunications companies in the Philippines, believes that enterprises need to support their employees to help ensure productivity while mitigating the effects of isolation and uncertainty. In a recent webinar entitled “Leap Forward” hosted by Eastern Communications, key opinion leaders gathered to discuss ways on how productivity can be boosted in today’s work from home setup. 

Prioritize employee well-being

Cat Trivino, MindNation Chief Marketing Officer, shared that companies that make the well-being of their employees a top priority not only create a healthier workplace but also produce a happier and more productive workforce.

According to Premier Value Provider’s Employee Mental Health survey in 2020, the highest levels of critical stress (31%), anxiety (47%), and depression (46%) were recorded during May 2020 and this was most prevalent among the younger workforce. 

“Normalize conversations around mental health and overall wellbeing, as well as advocate self-care. Seeking help during this time is important because we get to put to practice that empathy that the world so badly needs, and you need to practice that with your team. Make sure that they feel that openness and that trust to talk about these things,” she added.

A mentally healthy workforce in general will not only improve productivity but also boost employee morale and retention. 

Utilize digital tools for seamless and easy collaboration

Part of helping employees when it comes to their well-being is also giving them convenient yet efficient ways to collaborate while working from home. According to Diana Montes, Eastern Communications’ Strategic Manager, facilitating seamless communication and easy collaboration in the workplace can decrease stress levels.

Based on her experience, integrated tools like cloud-based solutions help in the effectiveness and well-being of a workforce. They also maximize the use of these collaboration apps by staying connected even for non-work-related activities.

“Here at Eastern, we’re quite grateful that even before the pandemic hit, our systems for productivity and collaboration were readily in place. So essentially, we just transferred physical meetings, discussions, and consultations virtually,” she said.

Montes also recommends using a project management tool or planner app to monitor the progress and overall productivity of the entire team on a certain project. Everyone involved has visibility and this way they can prioritize projects that need more assistance.  

“I also receive reports about the amount of time I spend using these collaboration tools and it gives me a notion of when to take on more work or slow down. This helps very much since like I said, sometimes we just lose sight of how much work we’ve already been doing at a particular period,” she added. 

The pandemic has highlighted the importance of developing an overall strategy that puts employees’ well-being first. Through Eastern Communications’ Leap Forward series, businesses are able to learn digital solutions and strategies from experts that will ensure business continuity while supporting the health and morale of the team.

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Strategies

In a negotiation, how tough should your first offer be?

New research shows the first offer can have a significant impact on the eventual outcome, and if you try to drive too hard a bargain, it could backfire.

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Photo by @chromatograph from Unsplash.com

In a negotiation, how tough should your first offer be? New research shows the first offer can have a significant impact on the eventual outcome, and if you try to drive too hard a bargain, it could backfire.

Whether you’re buying a house, a car, or second-hand furniture, it’s likely you will need to negotiate the price, so being able to negotiate effectively could save you significant cash.

Behavioral economist Professor Lionel Page from the University of Technology Sydney (UTS) said opening offers in real-world negotiations are sometimes intended to signal the “toughness” of the buyer – but whether this strategy actually works was not known.

“This experiment allowed us to study whether and how the level of the opening offer influences the beliefs of buyers and sellers, their actions and the final bargaining outcome,” said Professor Page.

The researchers conducted the experiment using a bargaining game where players exchanged offers for a split of $10. The aim was to mimic the start of a typical negotiation process.

They found that the success or failure of a negotiation depended not only on the final offer on the table but also on the emerging dynamics of the bargaining process.

“The intermediary offers made during a negotiation can be interpreted as suggesting either kind and compromising intentions, or unkind and uncompromising ones,” said Professor Page.

“And the perception of these intentions can, in turn, influence the final outcome. Low offers are perceived as disrespectful, so players react negatively and can be spiteful in their counter-offers.

“In a substantial number of cases, the responder chose a ‘‘punishing’’ counter-offer that was lower than what he believed was the buyer’s minimum acceptable amount,” he said.

This means it is not the best strategy to always be as tough as possible in a negotiation.

Previously there has been two conflicting views on first offers in negotiations, said Professor Page.

One view is that a low opening offer works as an “anchor” that moves the final offer in the direction of the first offer.

The second is that a more reasonable initial offer achieves a better outcome because it doesn’t sour the atmosphere and endanger the agreement.

Professor Page said their study showed support for both these ideas.

“We found that there is a small window where an offer is lower than an equal split, but not so low that it triggers negative emotions. It was viewed as ‘fair game’ to start the negotiation at this point.”

So in summary to strike a good bargain your opening offer needs to be not too hard, or you risk a spiteful counter-offer, but not too soft either, or you might be taken for a ride.

The study: Driving a hard bargain is a balancing act: how social preferences constrain the negotiation process, by Professor Lionel Page and Dr Yola Engler was recently published in the journal Theory and Decision.

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Strategies

5 Practical ways to keep your finances safer online

Kaspersky’s fresh data for Q2 2021 showed a 60% increase in mobile banking Trojan attacks blocked in the region versus same period last year.

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Photo by Blake Wisz from Unsplash.com

Kaspersky reveals its Q2 2021 mobile threat report for Southeast Asia (SEA) where it has monitored a 60% uptick in the number of attacks using malicious mobile bankers detected and blocked in the region. 

Mobile banking Trojans – or bankers – are used by cybercriminals to steal funds directly from mobile bank accounts. These malicious programs typically look like legitimate financial apps, but when a victim enters their security credentials to try to access their bank account, the attackers gain access to that private information.

Overall, since the beginning of 2021, Kaspersky products have foiled 708 incidents across six countries in SEA. This is already 50% of the total number of mobile bankers blocked in 2020 which was 1,408.

Indonesia and Vietnam logged the most number of incidents during the first half of the year. However, globally, the two countries are not among the top 10 countries affected by this threat. Vietnam is only 27th and Indonesia is 31st as of June this year.

The five countries with the most number of mobile banking Trojan detections in Q2 2021 are Russia, Japan, Turkey, Germany, and France.

*Mobile banking Trojans attacks detected from users of Kaspersky mobile security solutions in the country

While the number of mobile banking Trojan attacks in SEA remains low, 367 incidents from April to June 2021 versus 230 detections during the same period last year, the continuing pandemic continues to force users to start using mobile payment systems.

“We are almost at the second year of the pandemic which has fast tracked the mobile payment adoption in the region at a breakneck speed. During the beginning of this health crisis, our survey already showed that the majority of internet users here have shifted finance-related activities online, like shopping (64%) and banking (47%),” comments Yeo Siang Tiong, General Manager for Southeast Asia at Kaspersky.

The same survey revealed that seven in 10 (69%) are worried about conducting financial transactions online and 42% of the respondents admitted to being afraid about someone accessing their financial details through their devices.

In addition, another Kaspersky report titled “Making Sense of Our Place in the Digital Reputation Economy” discovered that the majority (76%) of 861 respondents from SEA confirmed their intent to keep their money-related data away from the internet. The sentiment is highest among Baby Boomers (85%), followed by Gen X (81%), and Millennials (75%).

“Clearly, there is an awareness about the threats present when we do banking and payment transactions through our mobile phones. But there is still a gap between knowing and acting on it. So to help users from SEA embrace the power of their smartphone and also keep their finances safe, we suggest some practical tips but also encourage everyone to please look into using security solutions as a safety net in case they accidentally clicked a malicious link or downloaded a rogue mobile banking application,” adds Yeo.

Here are some practical tips from Kaspersky which you can do to beef up your money’s safety online:

1. Get a temporary credit card

Cyber criminals have developed incredibly sophisticated techniques and malware that can sometimes thwart your best efforts for safe online shopping. As another level of security for safe online shopping, you can use a temporary credit card to make online purchases, in lieu of your regular credit card. Ask your credit card company if you can be issued a temporary credit card number.

Just remember to avoid using these types of credit cards for any purchases that require auto-renewal or regular payments.

If a temporary credit card is not possible, an alternative is to use a credit card with a low credit limit.

2. Dedicate a computer to online banking and shopping

If you have more than one computer, it may be wise to dedicate one for online banking and shopping only. By avoiding using the computer for any other Internet browsing, downloading, checking email, social networking, and other online activities, you effectively create a ‘clean’ computer that is totally free of computer viruses and any other infections. For added security for safe online shopping, install Google Chrome, with forced HTTPS. This ensures you are visiting only secure websites.

3. Use a dedicated email address

Create an email address that you will use only for online shopping. This will severely limit the amount of spam messages you receive and significantly reduce the risk of opening potentially malicious emails that are disguised as sales promotions or other notifications.

4. Manage and protect your online passwords

Using strong passwords and using a different password for each online account is one of the most important things you can do for safe online shopping. We know it can be difficult to remember so many different passwords, especially when they are composed of numerous letters, numbers, and special characters. But you can use a password manager to aid you in keeping strong passwords for multiple accounts.

5. Use a VPN

If you absolutely must shop online while using public Wi-Fi, first install a VPN (virtual private network). A VPN will encrypt all data that is transferred between your computer or mobile device and the VPN server, preventing hackers from hijacking and viewing any sensitive data you input.

In the Philippines, Kaspersky endpoint solutions like Kaspersky Total Security (KTS) that have a password manager and  VPN features is currently included in its 9.9 promos in Shopee and Lazada.  Filipino customers can enjoy up to 50% discount.

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