Business Recoded with Headspring, Financial Times and IE Business School
May 18, 2021 at Headspring, FT and IE Business School, Online
Peter Fisk explores the big themes from his new book Business Recoded, and what it means for marketing leaders.
Business needs a new code for success.
Change is dramatic, pervasive and relentless. The challenges are numerous. The opportunities are greater.
Incredible technologies and geopolitical shifts, complex markets and stagnating growth, demanding customers and disruptive entrepreneurs, environmental crisis and social distrust, unexpected shocks and uncertain futures.
The old codes that got us here don’t work anymore. Moving forwards needs a new mindset.
“Business Recoded” is for business leaders who seek to progress in today’s rapidly changing world, and to create the organisations that will thrive in tomorrow’s world.
The book explores how to lead a better future, to reimagine your business, to reinvent markets, to energise your people. It describes how to combine profit with more purpose, intelligent technologies with creative people, radical innovation with sustainable impact.
It dives deep into the minds of some of today’s most inspiring business leaders – people like Anne Wojcicki and Jeff Bezos, Emily Weiss and Devi Shetty, Daniel Ek and Tan Le, Mary Barra and Masayoshi Son, Satya Nadella and Zhang Ruimin.
And learns from the innovative strategies of incredible companies – Alibaba and Amazon, Babylon and BlackRock, Meituan Dianping and Microsoft, Narayana Health and Netflix, Patagonia and PingAn, Spotify and Supercell, and many more.
The book is built on 7 seismic shifts driving a more enlightened future of business, unlocking 49 codes that collectively define a new DNA for organisations and their leadership.
It’s about you – realising your future potential – by developing your own codes for more enlightened progress, personal and business success.
Do you have the courage to create a better future, for you and your business?
“A brilliant collection of practical guidelines intended to refresh and reinvent our mindsets, from a global thoughtful leader with vast experience in management development” Santiago Iniguez, President of IE University.
“Business Recoded is a great source of inspiration for leaders who want to position themselves for the future.” Alex Osterwalder, author of Business Model Generation and The Invincible Company.
Business needs a new code for success
- Why do we need to recode?
- What are the new codes?
- The new DNA of business
- The new DNA of leadership
- Have the courage to lead the future
- Inspiration 1: Eliud Kipchoge
- Inspiration 2: DeepMind
- Inspiration 3: Tan Le
- Inspiration 4: Satya Nadella
- Inspiration 5: Mary Barra
- Inspiration 6: Jack Ma
- Inspiration 7: JK Rowling
Part 1: Aurora … Recode your future
How will you reinvent your business for a better future?
- Code 1: Explore your future potential
- Code 2: Have a future mindset
- Code 3: Imagine a better business
- Code 4: Find your inspiring purpose
- Code 5: Create your future story
- Code 6: Deliver more positive impact
- Code 7: Be the radical optimist
- Leader 1: Anne Wojcicki, 23andMe
- Leader 2: Elon Musk, SpaceX
- Leader 3: Patrick Brown, Impossible Foods
- Leader 4: Larry Fink, BlackRock
- Leader 5: Yves Chouinard, Patagonia
Part 2: Komorebi … Recode your growth
Where are the best opportunities to grow further and faster?
- Code 8: Ride with the megatrends
- Code 9: Find new sources of growth
- Code 10: Embrace the Asian century
- Code 11: Harness technology and humanity
- Code 12: Start from the future back
- Code 13: Accelerate through networks
- Code 14: Build a growth portfolio
- Leader 6: Masayoshi Son, Softbank
- Leader 7: Emily Weiss, Glossier
- Leader 8: Wang Xing, Meituan Dianping
- Leader 9: Danae Ringelmann, Indiegogo
- Leader 10: Mukesh Ambani, Reliance
Part 3: Transcendent … Recode your market
How will you reshape your market to your advantage?
- Code 15: Explore the market matrix
- Code 16: Disrupt the disruptors
- Code 17: Capture the customer agenda
- Code 18: Create new market spaces
- Code 19: Build trust with authenticity
- Code 20: Develop brands with purpose
- Code 21: Enable people to achieve more
- Leader 11: Bernard Arnault, LVMH
- Leader 12: Maria Raga, Depop
- Leader 13: Ali Parsa, Babylon Health
- Leader 14: Hooi Ling Tan, Grab
- Leader 15: Mikkel Bjergso, Mikkeller
Part 4: Ingenuity … Recode your innovation
What does it take to drive more radical innovation?
- Code 22: Be ingenious
- Code 23: Search for better ideas
- Code 24: Embrace a designer mindset
- Code 25: Create unusual connections
- Code 26: Develop new business models
- Code 27: Experiment with speed and agility
- Code 28: Dream crazy
- Leader 16: Rene Renzepi, Noma
- Leader 17: James Watt, BrewDog
- Leader 18: Jensen Huang, Nvidia
- Leader 19: Devi Shetty, Narayana Health
- Leader 20: Katrina Lake, Stitch Fix
Part 5: Ubuntu … Recode your organisation
How can people achieve more together?
- Code 29: Build a butterfly ecosystem
- Code 30: Work as a living organisation
- Code 31: Collaborate in fast projects
- Code 32: Do human, inspiring work
- Code 33: Align individuals and organisations
- Code 34: Create energy and rhythm
- Code 35: Be an extreme team
- Leader 21: Reed Hastings, Netflix
- Leader 22: Zhang Ruimin, Haier
- Leader 23: Cristina Junqueira, Nubank
- Leader 24: Jos de Blok, Buurtzorg
- Leader 25: Ari Weinzweig, Zingerman’s
Part 6: Syzygy … Recode your transformation
What does it take to transform your business effectively?
- Code 36: Transform your business
- Code 37: Exploit the core, explore the edge
- Code 38: Start outside in, and inside out
- Code 39: Engage people in change
- Code 40: Build rocket ships to the future
- Code 41: Create a circular ecosystem
- Code 42: Have the strategic agility to never stop
- Leader 26: Jeff Bezos, Amazon
- Leader 27: Bob Iger, Disney
- Leader 28: Jessica Tan, Ping An
- Leader 29: Piyush Gupta, DBS
- Leader 30: Javier Goyeneche, Ecoalf
Part 7: Awestruck … Recode your leadership
Do you have the courage to create a better future?
- Code 43: Step up to lead the future
- Code 44: Have the courage to do more
- Code 45: Develop your own leadership style
- Code 46: Achieve your peak performance
- Code 47: Stay resilient, stay strong
- Code 48: Create a better legacy
- Code 49: Be extraordinary
- Leader 31: Jim Snabe, Maersk
- Leader 32: Daniel Ek, Spotify
- Leader 33: Hamdi Ulukaya, Chobani
- Leader 34: Zhang Xin, Soho China
- Leader 35: Ilkka Paananen, Supercell
Business Recoded is about having the courage to create a better future. This can take many different forms.
The book starts with 7 short stories from very different people, in very different worlds, from business and beyond. The stories are all about mindset, about the courage to do better, to achieve more, to break barriers, to be extraordinary.
Inspiration 1: Eliud Kipchoge
The humble Kenyan says that “no human is limited” and, despite his Olympic gold medals and world records, set himself a much more audacious goal.
“I don’t know where the limits are, but I would like to go there” said Eliud Kipchoge as dawn broke over the Danube river in Vienna.
Two hours later he stood in the middle of the tree lined Hauptallee, having just sprinted to the finish of the Ineos 1:59 Challenge, the first human to break two hours for the marathon. “That was the best moment of my life” he said, standing exhausted but still smiling at the finish line. The clock above him stopped at 1 hour 59 minutes and 40 seconds.
Having followed the Kenyan runner throughout his 20-year career, I watched his iconic record attempt in awe. Around him, some of the world’s greatest athletes, from Olympic 1500m Champion Matt Centrowitz to rising star Jacob Ingebrigtsen and the highly experienced Bernard Lagat, cheered and took selfies with the record breaker, pacemakers to the great man, happy to be part of history.
“Today we went to the Moon and came back to Earth” he said.
Back at home in Kenya, people were crowded round televisions, cheering for their runner. But Kipchoge lives a humble life, with the greatest clarity of purpose.
Every morning, just before 5am, in the small village of Kaptagat in western Kenya. He rolls out of bed, wipes the sleep from his eyes and gets ready to run. By the time the sun rises over the ochre red, dusty roads of the Rift Valley, he is well into his stride. Joined by dozens of ambitious young local runners, he strides past farmers heading for their fields, children waiting for their school buses.
This is just his first 20km, his first run of the day. Every day.
On returning to his training camp, it might be Kipchoge’s turn to make breakfast. Most likely it will be a simple bowl of ugali, a Kenyan staple made each day in a big pan from maize flour and water, plus whatever fruits are in season. Afterwards, he will probably hand-wash his running kit, ready for the afternoon session, and then take a nap. On other days, it might be his turn to head to the local farm for provisions, or to clean the communal toilets.
It is a frugal existence, particularly for a global champion, and self-made millionaire.
Yet for Kipchoge, the Olympic champion and world record holder, it is the only way of life that he has known. His wife and young children live in a much more spacious house in the town of Eldoret 40km away, but during his most important training periods, he prefers the simplicity of his spartan camp.
For 15 years, Kipchoge has been chasing a dream. I remember first seeing him run as a teenager, his bulging eyes fixed on the path ahead, always with a smile on his face. He showed early promise, beating world record holders Kenenisa Bekele and Hicham El Guerrouj to become the 1983 5000m world champion whilst only 18 years old. Over the next decade he won many medals but couldn’t call himself the best. As he reached his 30th birthday, he decided to move up to the marathon. To astonishing effect.
In the marathon, he became unbeatable.
In 2017, his sponsors Nike created a project to see if it would be possible to break 2 hours for the marathon. At the heart of their project was the Olympic champion, Kipchoge. They searched the world for the perfect location, choosing Monza’s Formula 1 motor racing circuit in Italy, the perfect conditions, the perfect pace set automatically by a Tesla car, and the perfect shoe. In the cool dark morning he set off, slipstreaming in behind a squadron of world-class pacemakers.
As his colleagues succumbed to the brutal and relentless pace, one man continued alone against the clock, although missing the historic barrier by 25 seconds. Kipchoge was unphased, delighted but determined to do better. He went back to Kenya and set about improving himself.
Listening to him, dressed in a dark suit and tie, as he addressed the Oxford Union later that year, it struck me that he is perhaps one of the most thoughtful, intelligent athletes you will ever meet. Constantly seeking to challenge himself as a way to progress. Always curious, always listening, wanting to read more and learn from others.
He is even a fan of motivational business books. In particular he regularly rereads Stephen Covey’s The 7 Habits of Highly Effective People saying it taught him the importance of working hard, treating your profession as seriously as you can, and how to live alongside other people. He also likes John Maxwell’s 15 Invaluable Laws of Growth.
Why does he think he has become the best? Because of his mental toughness, he says. “Many of my peers train just as hard as I do. But success is more about having the right attitude”. Maybe unexpectedly for an African marathoner, he likes to quote Aristotle. “In any profession, you should think positively. That’s the driver of your mind. If your mind is really thinking positive, then you are on the right track. ‘Pleasure in what you’re doing puts perfection in your work.’”
Kipchoge is sometimes called the philosopher, sometimes even the Buddha. “No human is limited” says the rubber band that he wears around his wrist. “The mind is what drives a human being,” he says “If you have that belief – that you want to be successful – then you can talk to your mind. My mind is always free. My mind is flexible. I want to show the world that you can go beyond your thoughts, you can break more than you think you can break.”
What keeps him motivated, having achieved Olympic titles and world records? It was actually when he visited Iffley Road, the small Oxford running track where Roger Bannister had broken his 4 minutes for one mile, back in 1954, that Kipchoge became truly fixated by 2 hours, as a challenge and a legacy. He says “The world is full of challenges and we need to challenge ourselves. For me it is to run faster than anybody else in history.”
You might assume that once he found a winning formula, he would keep doing what he does. Not Kipchoge. A surprising supplement to his training schedule before Vienna was the introduction of aerobics and pilates. Seeing the highly tuned athletes working out to Pharrell Williams’ Happy soundtrack seemed almost surreal. “Constantly seek and embrace change” he says. “I know it is not really comfortable to adopt change but change in life of a human being or life of any profession is really important.”
He constantly asks himself what he could have done better, and what can he do in the future. He describes a tree planted near where he lives. “There is a sign next to it saying that the best time to plant a tree is 25 years ago. The second-best time is today.”
At the end of his 2-hour barrier-breaking run in Vienna, Kipchoge talked selflessly about how he hoped his moment would inspire others, not just to also beat the 2 hour barrier, but also for people to believe in the spirit of humanity, to rise above conflict and doubt. “We can make this world a beautiful world, a peaceful world, a running world”.
Inspiration 2: DeepMind
Whilst we marvel at extreme feats of human performance, we also know that technology has the potential to outperform humanity.
The ability to process huge amounts of data at incredible speeds, to learn through repetitive process, and to harness the strength and agility of robotics challenge many of the ways in which humans used to excel.
The game of chess has long served as a benchmark for AI researchers. John McCarthy, who coined the term “artificial intelligence” in the early 1950s, once compared it to the way in which the fruit fly is used to understand genetics.
In 1996, IBM’s Deep Blue supercomputer embarked upon a series of chess games against Garry Kasparov, the world champion. Deep Blue eventually beat Kasparov, marking the first time a machine had defeated a world champion.
Within a few years computing technology was consistently beating chess grandmasters.
However, AI developers knew that they needed greater challenges, searching for more complex games to test their increasingly sophisticated algorithms. They turned their attention to the ancient Chinese strategy game of Go, which is both deceptively simple to play, yet extraordinarily complex to master.
The game was invented in China more than 2,500 years ago and is believed to be the oldest board game continuously played to the present day. It was considered one of the four essential arts of the cultured aristocratic Chinese. Go has a larger board than chess, a 19×19 grid of lines containing 361 points, and therefore with many more alternatives to consider per move.
It took another decade of machine learning development until scientists were able to create a truly competitive AI-based Go player.
In 2014, a team at London-based DeepMind Technologies started working on a deep learning neural network called AlphaGo. Two years later a mysterious online Go player named “Master” appeared on the popular Asian game platform Tygem. The mysterious player dominated games against many world champions.
Eventually it was confirmed that the “master” was in fact created by DeepMind, since acquired by Google, and now a subsidiary of Alphabet.
The master was replaced by a grandmaster in 2017. AlphaZero, an enhanced version of the original system, embraced an even more sophisticated algorithm designed to learn as it progressed through games. The system simply plays against itself, over and over, and learns how to master whatever game it has been programmed to work with. Searching through 80,000 positions, a fraction of what other predictive software had used, it had perfected the game in 24 hours using an AI-type of intuition.
AlphaZero achieved two things: autonomy from humans, and superhuman ability. Scientist and futurist James Lovelock calls this “the novacene”, translated as “the new new” in Latin and Greek, where a new form of intelligent life emerges from a human-initiated AI-based machine into one which no longer requires human intervention.
He calls AlphaZero, and other such beings, cyborgs.
In his book “Novacene: The Coming Age of Hyperintelligence”, Lovelock suggests that AI-based entities can think and act 10,000 times faster than humans (and to put that in perspective, that humans can think and act 10,000 times faster than plants). He then reflects that maybe AI-based life would be rather boring, considering that a flight to Australia using physical transport would currently take 3000 AI-based years.
The real point of a cyborg, a term first coined by Austria’s Manfred Clynes to describe an organism as self-sufficient as a human but made of engineered materials, is that it is able to improve and replicate itself.
Which quickly takes us to a future beyond what Hungarian John Van Neumann called “the singularity”, the point at which intelligent technological growth becomes uncontrollable and irreversible. Both physicist Stephen Hawking and entrepreneur Elon Musk have warned of the profound implication of autonomous AI.
Of course, we already have many devices that learn and improve continually. Take Google Maps, for example, which constantly learns from all its users about realtime traffic situations, and the more users it has the better the information becomes. Or consider Google Nest, an intelligent thermostat which takes control of the temperature in our homes. For now, they are useful tools, to help us live better.
Inspiration 3: Tan Le
The Vietnamese boat refugee who found a new beginning in Australia, qualifying as a lawyer, then creating Emotiv, a world-leading neurotechnology company.
Tan Le was only 4 years old when she fled Vietnam with her mother and sister, crowded on board a fishing boat with 162 other people, in search of a better life. It was a difficult choice, leaving her father behind and heading out to the uncertain seas.
For 5 days they sailed, and then after losing power, drifted across the South China Sea. She remembers the long dark nights and rough seas, and everyone becoming desperate once food and water ran out.
Fortune came in the shape of a British oil tanker, which offered to rescue them. After 3 months in a refugee camp, the family were offered a flight to Australia. As the plane flew across the unknown country, she was struck by the huge emptiness of the land, and later reflected on it as symbolising the new opportunities which she could never have imagined. On landing, her mother told her to kiss the ground, as this was a special place.
At 8 years old, her mum says she was a dreamer, and particularly liked to pretend she had the power of telepathy, as inspired by a movie she had seen. In reality, she called herself a curious nerd, desperate to work hard and seize her opportunity. At the same time, she was very conscious about being different – her looks, her accent, her background.
Then, when she was 20, she won Young Australian of the Year for her work in helping other immigrants to settle locally, to learn the English language, and to find jobs. She was astonished that somebody like her could win such an award. It was the moment that really opened her mind.
She started to look beyond her mum’s dream of her becoming a doctor or lawyer. With a degree from Monash University she qualified as a lawyer, but quickly turned her attention to software engineering, exploring how brainwaves can control digital devices.
It was all about understanding the brain in context, and how it could be directed to do more productive work, to engage consumers more deeply with brands, to help people with disabilities. Her early work included the development of EEG (electroencephalography) headsets by which you can control a car, or drone, or game, with your mind.
“When the neurons in your brain interact, they emit electrical impulses, which we can then translate into patterns that become commands, by using machine learning” she explained in a recent interview with CNBC.
She founded Emotiv, a bio-informatics company. It was all about understanding the brain in context, and how it could be directed to do more productive work, to engage consumers more deeply with brands, to help people with disabilities.
Chosen to be part of the World Economic Forum’s Young Business Leaders in 2009, she sat at a dinner held in Buenos Aires with fellow participants. Opposite her sat a wheelchair-bound Brazilian called Rodrigo Hübner Mendes. He introduced himself as a Formula One racing car driver, who used a specially developed brain interface to control the vehicle.
Mendes explained how he would turn left by imagining eating tasty food, turn right by imagining he was riding a bike, and accelerate by imagining he had just scored a World Cup goal for Brazil. He explained how the technology for the car was developed by a small innovative company called Emotiv. She smiled, deeply moved by his story.
Today Emotiv is a world-leading in brain interface software, with technology that is cheaper than a gaming console, but has the ability to fundamentally disrupt and improve our lives. With offices around the world, Le spends much of her time in Hanoi, where her ground-breaking technology is being developed by young Vietnamese technologists.
Le reflects on her personal journey saying, “Like my mum, I took a leap of faith into the world of technology, and particularly into a completely new area for which I had no qualifications or experience.”
She freely admits that she doesn’t have all the answers, with “I try to make the right choices, but you never know exactly where you are going, or if doing your best” but is also an infectious optimism “The future is not hear yet. We have the chance to create it, to co-create it.”
As for Mendes, he recently found himself at a conference in Dubai listening to world champion F1 driver Lewis Hamilton. When it came to questions at the end, Mendes’ hand immediately sprung up. He challenged the world champion to a race, using brainwave-controlled cars. Hamilton, a lover of new technologies, accepted. The race awaits.
Inspiration 4: Satya Nadella
The Indian-born CEO says he doesn’t want to be cool, but to make other people cool, inspiring Microsoft to become the world’s most valuable business, again.
Technology’s impact on our lives is still in its infancy. From mobile phones to social networks that bring new connections and instant gratification, to the reinvention of every industry. This is where Microsoft sees its future.
After 15 years of Bill Gates’s visionary leadership in the emergent technological world, “putting a computer on every desk”, Microsoft declined under the heavy-handed control of Steve Ballmer. Until in 2014 when Satya Nadella took over, and in his words, “hit refresh”.
His first speech as CEO did not even mention the word “Windows”, the company’s proprietary operating system, and cash cow. Instead he said “the world is about cloud first, mobile first” setting out his new priorities for growth.
Within five years he had more than quadrupled the company’s value, and with a focus on how a new generation of technologies, most significantly AI, can enable other companies to transform themselves, with the help of Microsoft.
“We don’t want to be the cool company in the tech sector,” Nadella says, “We want to be the company that makes other people cool.” By which he means that his mission is to build Microsoft as the enabling force behind today’s business world. Whilst his predecessors burnt their fingers trying to create branded hardware, most notably acquiring Nokia’s mobile business, Nadella is happier to create the smart insides of other people’s solutions.
To be the partner, the enabler, to empower others to be great.
At Microsoft’s huge Redmond campus, just outside Seattle, there is a revolution in attitude and practice. Gone is the ego-driven, insular thinking of old. Boardroom strategies are replaced by hackathons where anyone can shine. Elitist developers are usurped by ideas that can come from anywhere. Collaboration with partners, even Apple and Amazon, is the new normal. And big human and ethical dilemmas are top of the company’s agenda, how to control intelligent machines, how to address global healthcare and inequality.
But this is not a cult of leadership, or a hierarchy of command. Nadella is a very modern leader, recognising that his role is not to be the expert, or the hero, or the decision-maker – but to be the facilitator, the connector, the enabler. Behind that behaviour is his belief in the idea of a “growth mindset. Nowhere will you find this approach to leadership more clear, applied and powerful than in today’s Microsoft.
“Growth mindset” is a simple but powerful concept that I use constantly in my work with business leaders. One of the biggest problems companies run into, and the successful ones even more so, is that they keep trying to perfect their existing world. Instead, it’s probably time to let go. As the world changes, ever more dramatically, leaders need to change too – looking forwards not back, experimenting with new ideas, rather than seek to optimise the old. Efficiency savings won’t create your future, but ideas and imagination just might. Move from diminishing returns to exponential opportunities.
“Don’t be a know-it-all, be a learn-it-all” Nadella loves to say. “In 2014, we cancelled our company meeting where our leaders would tell employees what was important, in favour of having a hackathon that lets our employees tell our leaders what’s important,” recalls Jeff Ramos, head of the Microsoft Garage, where employees with a bright idea can come and experiment, build, hack, and see if there ideas have potential.
I recently watched Nadella take to the stage at Microsoft Envision, a huge event where the company brings together many of the world’s leading CEOs to explore the future, there was a real energy in the room. From him – a great beaming smile, an uplifting speech, an entirely positive demeanour – but also from his team too. He believes in a new business world – one where teams beat hierarchy, where collaboration beats competition, where humanity is always superior to technology, and where dreams outperform numbers.
In November 2018, Microsoft became the world’s most valuable company again, after a gap of 16 years. 7 months later the business soared through the trillion dollar market cap mark. At the end of 2019, Nadella was named Financial Times’ Person of the Year, saying that “Microsoft was at risk of technological irrelevance but Nadella has presided over an era of stunning wealth creation.”
Inspiration 5: Mary Barra
She challenged the traditional culture of GM in dramatic style, rejecting complacency and embracing new tech, on a mission to reinvent her industry.
Car making is far from a luxury business, particularly in the decimated heartlands of the American car industry. The arrival of better, cheaper brands like Toyota from Japan, and more recently others from China and South Korea, fundamentally challenged local makers. Globalisation was killing the local industry.
Mary Barra grew up just outside Detroit, at a time when the city and car making was booming. Her father Ray Makela worked as a dye maker for 39 years at the Pontiac car factory, whilst Mary started working in the industry at the age of 18, checking fender panels and inspecting hoods to pay for her college education.
“My parents were both born and raised in the Depression. They instilled great values about integrity and the importance of hard work, and I’ve taken that with me to every job” she says.
When studying at the General Motors Institute, her tutor recalled how he taught her many aspects of car design, including how to make windscreen wipers work. He said she was always the leader, taking charge of mostly-male groups, balancing her strong technical knowledge with her easy-going communication skills.
She joined GM full time and worked through the ranks, becoming VP of Global Manufacturing in 2008, and then of Human Resources. In 2014, with the business increasingly struggling to survive, and uncertain about a future that looked electric and driverless, she became CEO.
Today she is a woman on a mission, to save GM and to reinvent her industry.
In her first year as leader, GM was forced to recall 30 million cars due to safety issues that resulted in 124 deaths. She was called before Senate to explain the problems, and brand reputation plummeted to an all-time low. The recalls, however, also demanded significant change in work practices. She introduced new policies for employees to report problems, and a new culture of openness and determination to fight back was born.
Over the next five years Barra pushed GM to transform itself, to embrace innovation and new ways of working, both operationally and strategically. In particular she wanted to seize the leadership in new technologies such as hybrid engines and automated driving.
Asked by CNN what it takes to transform a traditional business she said “It takes a lot! You need the right people, the right culture and the right strategy. To be truly great, your team must have diversity of thought and be willing to collaborate constructively.”
“Your company culture should empower and inspire people to relentlessly pursue the company’s vision, always with integrity. A strong strategy is the roadmap to achieve your vision, but you need strategies for this year, as well as the next five, 10, and 20 years — and they all may need to work in tandem. Our vision at GM is a world with zero crashes, zero emissions and zero congestion, and everyone on the team knows we are committed to putting the customer at the centre of everything we do.”
“At GM we live and work by a set of seven behaviours, one of which we call Innovate Now. This means ‘I see things not how they are but how they should be.’ So, we empower our teams to innovate and create, while also understanding macro trends.”
In 2016 Barra splashed out over $1billion to invest in Cruise, a software business for driverless cars. She put it at the heart of her revolution. Her acquisition gave the old business an injection of new capabilities, but also new courage and creativity too.
“My definition of ‘innovative’ is providing value to the customer” she adds.
Her move was worth $20 billion of market value in investor confidence alone. Soon revenues started to grow back, employees and customers both believed in a new future. The Chevy Bolt, a car with no steering wheel, suddenly made autonomous dreams real, and the GM brands started to become desirable again.
Inspiration 6: Jack Ma
The Hangzhou teacher on $12 a month built Alibaba into a $400 billion global technology leader over 20 years, before retiring to become a teacher again.
Technology, of course, is not everything. Whilst machines might eclipse 30% of the human jobs of today, there will still be a need to achieve more than speed and efficiency. This demands that humans rise up to harness their more distinctive assets, to be creative and intuitive. To go beyond the technology.
Ma began studying English at a young age, spending time talking to English-speaking visitors at the Hangzhou international hotel near his home. He would then ride 70 miles on his bicycle to give tourists guided tours of the area to practice his English. Foreigners nicknamed him “Jack” because they found his Chinese name too difficult to pronounce.
In 1988 he became an English teacher earning just $12 a month, and describing it years later whilst speaking at the 2018 World Economic Forum, as “the best life I had”.
From teaching, he soon had ambitions to do more. He applied for 30 different jobs and got rejected by all. He wanted to be a policeman but was told he was too small. He tried his luck at KFC, the first one to arrive in China. Famously he retells the tale “24 people went for the job. 23 were accepted. I was the only guy who wasn’t.” He applied to Harvard Business School, but was rejected 10 times.
He persevered, seeing every step as a learning experience. In 1994, Ma heard about the Internet. One day, when searching online for the different beers of the world, he was surprised to find none from China. The world’s most consumed beer brand, Snow beer, is of course Chinese. So he and a friend launched a simple Chinese language website called China Pages. Within hours investors were on the phone, and within three years he was generating over 5,000,000 Chinese Yuan.
“My dream was to set up my own e-commerce company. In 1999, I gathered 18 people in my apartment and spoke to them for two hours about my vision. Everyone put their money on the table, and that got us $60,000 to start Alibaba. I wanted to have a global company, so I chose a global name.”
Interviewed at the World Economic Forum he said “I call Alibaba 1001 mistakes. We expanded too fast, and then in the dot-com bubble, we had to have layoffs. By 2002, we had only enough cash to survive for 18 months. We had a lot of free members using our site, and we didn’t know how we’d make money. So we developed a product for China exporters to meet U.S. buyers online. This model saved us.”
Over the next two decades he built Alibaba into a $400 billion organisation. In 2017, to celebrate the internet giant’s 18th birthday, Ma appeared on stage dressed like Michael Jackson, turning the event into a “Thriller” performance. His passion for his company, and for his audience of employees, shone through.
Looking back he reflected “The lessons I learned from the dark days at Alibaba are that you’ve got to make your team have value, innovation, and vision. Also, if you don’t give up, you still have a chance. And, when you are small, you have to be very focused and rely on your brain, not your strength.
And about himself, often quoted as a supporter of the “996” work mindset (working from 9am until 9pm, 6 days a week), he adds “I don’t think I’m a workaholic. Every weekend, I invite my colleagues and friends to my home to play cards. And people, my neighbours, are always surprised because I live on the second floor apartment, and there are usually 40 pairs of shoes in front of my gate. We have a lot of fun.”
On Alibaba’s 20th birthday, himself now 54 years old, and worth over $40 billion, he decided to retire saying “teachers always want their students to exceed them, so the responsible thing to do for me and the company to do is to let younger, more talented people take over in leadership roles so that they inherit our mission ‘to make it easy to do business anywhere’.”
“Having been trained as a teacher, I feel extremely proud of what I have achieved,” he wrote to his colleagues and shareholders” before adding “I still have lots of dreams to pursue. I want to return to education, which excites me with so much blessing because this is what I love to do. This is something I want to devote most of my time to when I retire.”
He spoke passionately about the challenges for the future of education in Davos saying: “A teacher should learn all the time; a teacher should share all the time. Education is a big challenge now – if we do not change the way we teach 30 years later we will be in trouble. We cannot teach our kids to compete with the machines who are smarter – we have to teach our kids something unique. In this way, 30 years later, kids will have a chance.”
Inspiration 7: JK Rowling
Harry Potter was the culmination of her own story from poverty and rebellion to fame and fortune. “It matters not what you are born, but what you grow to be.”
The power of our imagination, to drive creativity and innovation, to engage people with empathy, and to inspire their dreams, was the theme of Joanne Rowling’s speech to graduating students at Harvard University in 2008.
The bestselling author, better known as JK Rowling, told how she used her experiences of working as researcher and bilingual secretary for Amnesty International to imagine the stories that became her much loved books.
She conceived the idea for her “Harry Potter” books while on a delayed train from Manchester to London in 1990, and started imagining a story of a young wizard who went to wizard school. Without anything to note down her ideas, she rapidly set out an entire plot in her head, then tried to write it down on arriving home.
The next 7 years were tough, with the death of her mother, birth of her first child, and divorce from her first husband. Having lost her job, because she sat dreaming about her plots, she decide to move to Porto where she briefly married a local TV journalist, before heading to Edinburgh to be with her sister.
In 1995 she sent her manuscript off to every publisher she could fund, but was rejected by all, being told that her story was too long, too elitist, and too complicated. Eventually the CEO’s daughter at Bloomsbury, a children’s imprint, read that story and couldn’t put it down. Her influence on her father resulted in a £4000 advance to Rowling. The only catch was that they felt her pen name needed more style, so she borrowed a middle initial from her grandmother, Kathleen.
“Harry Potter and the Philosopher’s Stone” was published in 1997 to rave reviews. What really changed her life, was when the publishing firm Scholastic came in to buy the American rights to the book for a sensational $105,000. The book sold 80,000 copies in the first year, and hit the top of the New York Times bestseller list. Over the years since it has become the most financially successful novel in history with 400 million readers, and generating $10 billion of sales.
Her own story, a little like Jack Ma’s, was one of rags to riches, as she progressed from living on state benefits to being the world’s first billionaire author. She lost her billionaire status after giving away much of her earnings to charity, but remains one of the wealthiest people in the world.
She wrote her first book “Rabbit” when she was six years old, about a rabbit who lived in her village of Tutshill in Gloucestershire, who got sick and was cared for by a bumble bee called Miss Bee. She was convinced she could be a writer, even though she lacked confidence otherwise.
When Rowling was at school her parents didn’t want her to pursue her dream of being a writer because they worried it wouldn’t pay a mortgage. She ignored them, saying listen to your friends, family, and those who care about you, but remember it is your life. “If you have a gift, talent, dream, then pursue it. There’s no way anybody knows how it will turn out, but if you love it and you put all your energy into it, your chances of success are great.”
Her editor at Bloomsbury, the publisher who took a huge gamble on the unknown author, says that Rowling’s great strength is that she has “a microscopic and macroscopic view of the world” which enabled her to tell such imaginative tales in such engaging detail.
Passing exams, she said to the new Harvard graduates, does not determine your success. Whilst she admitted to having a knack for taking tests and passing exams, she also said that it was her failures that had taken her further. “It is impossible to live without failing at something unless you live so cautiously, you might as well not have lived at all– in which case, you fail by default.” Rather than seeking to avoid failure, we must be willing to accept that it is going to come and be ready to build our lives off it.
“To get through life without failing,” she said, “would not be a life worth living.”
“Imagination is the power that enables us to empathise with humans whose experiences we have never shared” says Rowling, proclaiming that imagination is crucial for life. Without it, we ignore the one truly unique quality that differentiates us from all other species, effectively claiming that we are human.
Perhaps we should also remember the words of the Rowling’s great wizard Dumbledore, headmaster at Hogwarts School of Witchcraft and Wizardry, who said “It matters not what someone is born, but what they grow to be.”
© Peter Fisk 2020.
Extracts from “Business Recoded” by Peter Fisk:
“Two characteristics that make Peter Fisk one of my favorites thought leaders in the strategy field are his ability to make complex matters simple and his positive views about the future, focusing, through real case studies, on the opportunities laid ahead, rather than the hurdles. His new book, Business Recoded, is definitely a must-read for leaders that want to succeed with their organizations in our fast-changing world”. Antonio Nieto-Rodriguez, author of “The Project Revolution” and “The Focused Organization”.
“It is not often that we have moments of magic in any business. What Peter has given us is more than just ideas and inspiration, but a whole way of thinking about how we could reinvent our future, and start making it happen tomorrow” Alberto Uncini-Manganelli, GM and SVP, Adidas.
© Peter Fisk 2020
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