| Global Senior Leaders' Perspectives on Infrastructure, Risk, and the Challenges of Growth (Report from Davos) by Katie Whatmore
Originally published in the February 2004 Issue of Link & Learn. 
Source Article: "The View From Davos: Security Issues," by Klaus Kleinfeld, January 23, 2004. Forbes.com: http://www.forbes.com/ceonetwork/2004/01/23/0123kleinfeld.html
Klaus Kleinfeld, President and CEO of Siemens Corporation, attended this year's World Economic Forum (WEF) Annual Meeting, January 21-25, 2004, in Davos, Switzerland. In response to his experience at the WEF Annual Meeting, Kleinfeld wrote the article, "The View From Davos: Security Issues" for Forbes Magazine. In this article, Kleinfeld states that many of his fellow business leaders who attended the WEF focused their concern on issues of security to which global companies are universally adapting, in light of the current challenging political atmosphere.
Central to Mr. Kleinfeld's observations, particularly based on an "informal poll" that he performed with other attending CEOs, today's business leaders are asking themselves such questions as:
- "Will we need to provide our own infrastructure, as companies have done in California, to keep the company telephone system working?" [in case of emergencies like the recent power outages]
- Or the more complex question of cyber security: "Does it take a new kind of corporate ownership to deal with virus attacks?"
While technological threats are real to all companies, the underlying theme of the concerns mentioned in Mr. Kleinfeld's summary of the event points to a feeling of uncertainty about the future of how the world economy will unfold, based on the strength of its component parts. The economic power of countries like Mexico, China, Japan, the United Kingdom, France, and even the United States (among others) are called into question when radical events change the face of history and have such deep effects on economies that are integrally networked across the globe.
Mr. Kleinfeld's discussions with fellow CEOs reveal a drive to eliminate future vulnerability by building infrastructures that function at least semi-independently:
"Despite all the known shortfalls, most executives are still much in favor of an intelligent -- but resource-conserving -- liberalization and privatization of 'old infrastructures,' such as electricity and water. On the other hand, many colleagues perceive the strong need to install and maintain either regulatory or technical checks and balances for such 'new infrastructures' as broadband and cyber security."
The solution to the gap between public and privatized infrastructure components, as proposed by Kleinfeld, is to build partnerships or alliances "to secure basic infrastructure functionality, but also to guide the infrastructure investments vital to the competitiveness of modern economies." These proposed alliances define a core competency-building strategy that should be taken into serious consideration by any organization that hopes to maintain its viability in the global market. The issue of secure infrastructures is a model for the business practices that successful, networked businesses must utilize as part of their cross-organizational and inter-organizational functionality in the future.
The ability of organizations to surpass or even keep pace with their competitors, as well as remain linked with their global partners will depend on several key strategic factors, including:
- Innovation to drive internal growth opportunities;
- Vision of the possibilities for expansion outside of the current organizational framework; and
- The ability to communicate your organization's competitive edge to an ever-growing, ever-changing, and perhaps-receptive/perhaps unpredictable audience (dependent upon whether or not your organization is truly attune to what your audience wants to hear).
As Kleinfeld states, "We have the waves of growth driven by the invention of the personal computer, the development of cheap mass transportation, the rollout of a highly efficient worldwide telecommunication network. And we can create the next waves. We are already seeing revolutionary advances in wireless and broadband telecommunications, unbelievable progress in medical diagnostics and therapeutics. In the telecommunications industry, breakthroughs are surfacing that will change the industry significantly. However, the winners are not clear yet--as the vote of the customer is still out."
In an economy that is increasingly affected by factors that may originate halfway around the world, global organizations must be conscientious and ready to adapt to significant and potentially catastrophic change -- quickly and with relative ease. As organizations expand organically and/or merge into larger global conglomerates, they will increasingly face challenges to this adaptability. Cross-functional, enterprise-wide infrastructure that supports an organization's growth should remain at the core of any business that hopes to continue to compete globally.
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Source Article: "The View From Davos: Security Issues," by Klaus Kleinfeld, 01.23.04, 7:55 PM ET. Forbes.com: http://www.forbes.com/ceonetwork/2004/01/23/0123kleinfeld.html
Katie Whatmore is the Program Director at Linkage. Previously an Account Manager with Linkage, Inc., Ms. Whatmore developed a variety of customer-focused strategies through direct client interaction. Currently, Ms. Whatmore is also pursuing an MBA with a concentration in Marketing at Boston University. Through exposure to topics such as organizational behavior, leadership development, brand management, global marketing, customer-focused initiatives, finance & organizational investment, and information technology in both professional and academic atmospheres, Ms. Whatmore has honed her abilities to create well-rounded programming designed to provide realistic business solutions to today's leaders and managers who are facing challenging business imperatives. For more information on Linkage's programs that relate to driving growth strategies, contact Katie Whatmore, at: 781-402-5510 or KWhatmore@Linkage-Inc.com.
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