The Business World We Want To Live In

Moderator: Pepper de Callier

Panelists: Zdeněk Bakala, James Cusumano, Vladimíra Josefiová, Sergio Schuler, Petra Kolouchová, Jakub Mikolášek, Lei Ba

 

In the closing Business and Economy Panel, panelists discussed the major challenges and changes facing today’s business world. They delved into a variety of questions such as how businesses can reconcile the clash between cultural differences and business values, what changes panelists would like to see in today’s business culture and practices, as well as offering advice to the next generation of business leaders regarding leadership, success and failure. The panelists proved that this was no easy topic to tackle, all bringing their own unique, personal perspectives. An overarching consensus amongst the panelists, however, was the necessity to establish the responsibility of business to behave ethically.

 

Zdeněk Bakala was very staunch on the idea that “the future [of business] is what we are doing now.” He believed that the business structure that currently exists is facilitating some of the best results in the history of mankind and found no major faults in it that would warrant radical transformation. However, he did suggest some changes that he believed would enhance the state of the business world, such as revamping the financial services industry, reversing the current upward trend in income tax rates as well as a reduction in the overregulation of simple business matters. Bakala also stressed his belief that it is “neither possible, nor desirable to create an international business model,” citing inefficiency and varying stakeholder interests. The major focus and trend of the future, he stated, instead lies in the shifting balance between government and business — with government taking back control following an era of extreme laissez-faire policy.

 

James Cusumano stressed the importance of leadership as the most critical asset one can acquire, stating, “there is a common misconception that you must be a CEO or a manager to be a leader…however, to be a good leader, you must simply choose to do the right thing.” He described two approaches to management. The first, hierarchical leadership, emanates from the ego and occurs when a person seeks to influence others to achieve an objective. In contrast, conscious leadership is a more serving relationship, when one inspires others to grow and reach their full potential.  This method is powerful because it maximizes employee satisfaction and productivity, and works towards the benefit of the whole organization. Dr. Cusumano suggested that today’s business schools provide a solid framework but lack an effective teaching of the more holistic leadership, which focuses on meeting the triple bottom line (people, planet, profit). Dr. Cusumano also demonstrated from personal experience how he had learned by listening to others and by his own mistakes, saying “There’s no such thing as failure. Failure is doing the same [bad] thing twice.”

 

Vladimíra Josefiová renounced the idea of a universal business model, citing that the “global customer” for this model does not exist. However, with respect to the idea of corporate responsibility, she strongly favored the concept but questioned the actual dedication to this matter — “I see a lot of passion for change, but a lack of passion for understanding.” Tied to this was Josefiová’s critique of the current business model and how we are educating the leaders of tomorrow. She cited that the thinking process is missing, which is what actually moves a company forward (instead, there is an excessive amount of action). Secondly, she expressed concern over the glorification of leadership where there should be an acknowledgement of the normality of these individuals.

 

Initially, the students agreed that the private sector must address moral and ethical issues in their business models, but diverted when asked how to reconcile differences in values across cultures. Sergio Schuler suggested that the issue did not concern specific cultures but global ethos. Petra Kolouchová held the opinion that cultural differences must not deter businesses from addressing these larger issues. Jakub Mikolášek stated that businesses should put more effort into getting to know specific cultures and adapt their models accordingly. The students also commented on the quality of their educational development with a common call for increased concrete experience and a departure from theoretical teaching. Lei Ba pointed out the widening divide between rich and poor countries, suggesting that businesses need a new incentive to bring capital to less advantaged regions.