If the financial crisis on Wall Street reminds us of anything, it is how small the world is becoming. Could anyone have ever imagined the U.S. government, backed by taxpayer money, coming to the rescue of foreign banks?
These days, there are no more “foreign” markets; even medium and small companies are looking to the BRIC nations (Brazil, Russia, India, China) for customers. And those that have not yet made the leap to build their own international infrastructure could not operate without the use of suppliers and service providers on distant shores.
Of course, this is nothing new. As far back as Magellan and as recently as Jack Welch, business leaders have prophesied to the masses and the magistrates the importance of global markets. What is different today is that corporate boards are starting to realize that they need global expertise and a global mindset in the boardroom. We have watched this phenomenon with increasing interest as U.S. boards have added foreign nationals or sought individuals who have run large operations in Europe, Asia, South America, and the Middle East.
This is something that European boards have practiced for years. For instance, Swiss pharmaceutical giant Novartis petitioned for, and won, exemption from a rule that requires a majority of Swiss nationals on the board of directors. This kind of approach will play out on a massive scale in the next several years. We take an extensive look at this trend in “The New Globalists,” starting on page 20.
On another front, these are exceedingly tough times for business leaders and boards are routinely coming under fire as the financial situation worsens (“Boards in the Bull’s-eye,” page 7.) As Bill George, a director at ExxonMobil and Goldman Sachs, says, “We are in a major crisis of corporate leadership.” There is also the concern that an epidemic of caution could infect corporate decision making. The antidote to this ill: leadership that doesn’t shirk responsibility and charts a measured, but also bold, path forward.
Joseph McCafferty
jmccafferty@directorship.com