Presented by ESMT Berlin
How can and should CEOs navigate increasingly blurred lines between business and politics? And what skills are needed to succeed in this new environment? Michael Ensser, Global Chair at Egon Zehnder, discusses the chances and challenges of leadership in a complex world.
Interviewed by Klara Marie Schroeder
CEOs continue to focus on opportunities, even though they're facing more challenges than we’ve seen in the past. While every generation believes their time is the most challenging, I think this generation is correct. The magnitude of global challenges—from the pandemic to supply chain disruptions and geopolitical instability—is unlike anything we've experienced before. We're also undergoing an energy transition and seeing the rapid rise of AI, both of which are occurring at a scale and speed we've never encountered. So, while there are still opportunities, there's an even greater need to tackle these urgent challenges.
CEOs are facing expectations from various stakeholders to raise their voices and take a stance in political and societal discussions, rather than focusing solely on business. It’s recognized that political institutions alone cannot solve all problems. With the rise of nationalism and populism, companies have discovered—or rediscovered—that they have a role to play in society beyond creating products, services, and profits. This role extends far beyond just shareholders and stakeholders. What is interesting about this answer are the alternatives: CEOs neither want to replace politicians nor retreat to pure business; they are pursuing their own way of making themselves heard.
CEOs would be ill-advised to get involved in the heated political dialogue - but they can take a stand, for example by explaining why their company needs foreign skilled workers. Of course, there’s no simple answer. In the end, political and business leaders need to draw closer and work together to develop effective strategies. They must learn to navigate markets that may be shifting in various directions and find ways to thrive in a world experiencing unprecedented disruptions and geopolitical changes. This is only possible through dialogue, building trust and common ground.
A huge number of CEOs are active on social media, communicating with a much broader audience than just their employees or stakeholders. In this context, you can’t limit your message to just how you produce products or provide services. You also need to take a stance on global affairs. This might be new territory for many leaders and may feel uncomfortable - and we see many CEOs who aren’t fully prepared or trained for this. But there’s no way around it; it’s the next level of learning and unlearning that CEOs need to embrace to meet these new demands.
I think a level of strategic empathy is needed to understand how solutions are being created in a world where compromises must be made between very contradictory agendas and world views. It's a world where opinions hold significant power, sometimes overshadowing actual results. It's important to recognize how different this is, and to develop a deeper understanding of the challenges on the other side. Being helpful rather than accusatory is important in this context.
Yes, but there no either-or situation. Many CEOs acknowledge that a major lesson for them is the need to improve their listening skills. Effective listening comes with curiosity and an open mind, allowing for new answers to emerge. It involves looking as broadly as possible and integrating different perspectives. That said, we’re also seeing an increasing number of leadership teams with greater diversity, which is encouraging.
We often refer to the increasing level of complexity, and this can easily lead to feeling overwhelmed. It can make you feel helpless because you realize you no longer have all the answers, yet you're expected to. How do you cope with the next level of ambiguity? How do you operate in a world where you can only see as far as your arm’s length, and everything beyond that is uncertain? Despite this, you still need to be the one on deck, the one leading, the one providing orientation.
This requires a lot of inner work. It’s not something that comes just from having attended a good business school or having been trained to be a good head of production, sales, or internal organizations. Preparing for this 'heavy weather' requires additional training and learning, starting with a deeper understanding of yourself.
From my conversations around the world, I see a big difference in the focus on opportunities, especially when you compare it to countries like India and the US, or regions like the Middle East. I think many Europeans would benefit from a “can do” attitude.
In general, I believe we need more cooperation between business and politics. We need to speak about solutions instead of pointing fingers. That’s why I appreciate formats like Berlin Global Dialogue - it is a perfect opportunity to come together.
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Michael Ensser is the Global Chair of Egon Zehnder. He was previously Managing Partner of the German and the Swiss organizations.
Michael advises leading technology and media companies. In addition to finding and preparing suitable candidates for top executive positions, he supports large-scale transformation projects by carrying out management appraisals, analyzing the potential of organizations, and leading development efforts.
