Also: Chevron buys Hess, women on strike, the end of Hong Kong's 'golden era'
Good morning.
Every age has its uncertainties, but the current age has more than most. War raging in Europe and the Middle East and foreboding in Asia; an economy perched on the pivot from unprecedented monetary and fiscal stimulus to a return to an unfamiliar normality; a pandemic that provoked massive changes in work and life; new technologies moving at warp speed with premonitions of both utopian and dystopian consequences. How do you lead a business in such an extreme ‘VUCA’ environment?
I had the opportunity last week to pose that question to Indra Nooyi, ex-CEO of PepsiCo, at a forum hosted by consulting firm Slalom. Her answer was a mini-master class in modern leadership. She boiled it down to five rules:
“First: Rather than articulate a vision for the company, CEOs have to learn to talk about alternatives and scenarios. That is the only way you can get your team to constantly look for changes in the environment that could impact your direction.”
“Second: You have to build resilience, agility and adaptability into the company. That’s often talked about, but rarely practiced. Study past setbacks. Look for leaders who have navigated through crises and failures.”
“Third: Lifelong learning is the survival mantra of the future. Leaders must understand coming trends and technologies. They must study whatever is driving change in-depth. They must go back to being students.”
“Fourth: Rethink how you do talent succession. Targeting the most capable is going to be the biggest competitive advantage you have. Make succession an ongoing science.”
“Fifth: The only way to find and bind outstanding talent to the company is to engage their hearts as well as their head and hands in the business of the company. To do so, companies have to articulate a purpose…that touches people emotionally and encourages them to give the company their all.”
Well put. More news below.
Alan Murray
@alansmurray
alan.murray@fortune.com
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More oil consolidation
Chevron has agreed to buy fellow oil company Hess in a $53 billion deal. It’s the latest mega-deal in the fossil fuel industry, following Exxon’s $60 billion purchase of Pioneer Natural Resources earlier this month. Chevron is pivoting to capture energy resources that are closer to home, like Hess’s stake in the Stabroek Block in the South American country of Guyana, the largest crude oil discovery in the past decade. Bloomberg
Women’s 'Day Off'
Women in Iceland–including Prime Minister Katrín Jakobsdóttir–will take part in a one-day strike to protest the gender pay gap. Women taking part in Kvennafri, or “Women’s Day Off” in Icelandic, will abstain from both paid and unpaid work, including household chores and childcare. While Iceland often receives high marks on gender equality from organizations like the World Economic Forum, organizers are pushing back against the idea that the country is an “equality paradise.” The New York Times
End of a ‘golden era’
Hong Kong’s property developers, once buoyed by the world’s least affordable housing market, may soon confront government efforts to tackle sky-high home prices. “Hong Kong real estate is no longer a totally free market,” Chinachem CEO Donald Choi says. “The golden era of high profit margins in the housing market is over.” The median Hong Kong home costs almost 19 times the city’s median household income, according to a March report from think tank Demographia. Financial Times
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Holidaying Like It’s 2019 Holiday spending is expected to surpass pre-pandemic levels for the first time, with consumers planning to spend an average of $1,652, up 14% from 2022. What does this mean for consumers and retailers? Read here
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The Emerging CFO: Finance and IT as co-innovation partners Join Fortune and Workday on Wednesday, Oct. 25, for an Emerging CFO virtual discussion. We will explore strategies to shift the Finance-IT relationship from its traditional support model to a partnership focused on co-innovation, from breaking down data silos to improving cross-functional skills. Register here |
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