Geopolitics has become an increasingly important issue for businesses and organisations. What knowledge of security policy do today’s and tomorrow’s business leaders need in order to make sound decisions?
The most important thing is to recognise that there is a world around us, and that it is affected by everything – the economy, culture, conflicts – and right now it is all reaching a crescendo. Do you need any particular tools? Not really. You can get a long way by reading the newspaper and taking a general interest in what is happening, rather than focusing solely on your own industry.
My current employer is a good example. They believe it is important to recognise that there is a world beyond the law. When I give them a monthly briefing, I talk about things other than what they normally work with – in other words, I bring different perspectives.
But do you need any particular specialist knowledge? No, not really. If you have a board or management team made up of the right mix of people – with a range of knowledge, ages and genders – you have every opportunity to understand that the world is constantly changing.
How do you adapt to that? And how do you lead change? Things are changing extremely quickly now. Trade patterns are shifting, and old partners are not necessarily the partners of the future. So you have to find new ways of doing things.
One lesson from our conversations with the Ukrainians is that silos kill. In other words, you need to think differently, you need to think faster and you need to think more broadly. And you must not get stuck in what is sometimes called the “glacier of middle management”. Senior leaders know what needs to be done, and the people at the operational level know what should be done. But it does not happen because self-imposed rules get in the way. We need to put an end to that.
What can the business community learn from military strategic thinking when it comes to making decisions under uncertainty?
You will never have all the facts. So you have to decide what level of risk you are comfortable with and be prepared to make decisions on the basis of incomplete information. That willingness to take risks also allows you to be quick and flexible – and then you may find that things go your way more often than not. Having the courage to make decisions is crucial.
What would you say to young people, studying business, economics and law, who are about to enter the workforce? What do they need to understand about geopolitics that previous generations perhaps did not have to consider?
Their challenge is AI. They are entering a working environment where there is a risk that a range of entry-level jobs will be replaced by AI, regardless of their academic discipline.
What they need to do is understand how the world works. That means reading the newspaper, watching the news and taking an interest in what is going on. But they also need to become very good at formulating the questions they put to AI. AI is not a substitute for thinking; it is a tool. Those who learn how to make the best use of that tool will also be well placed to succeed in their careers.
Mannheimer Swartling a Senior Partner to the School.
