Panel Discussion: The 2024 business context

Navigating leadership and economic change: Key takeaways from the 2024 business context panel discussion

The recent panel discussion at the Recruitment & Employment Confederation (REC) offered deep insights into the evolving nature of leadership and economic strategy in a world marked by rapid change and uncertainty. Moderated by Neil Carberry, the panel featured Tiger Tyagarajan, CEO of Genpact; Simon French, Chief Economist at Panmure Gordon; and Kate Shoesmith, Deputy CEO at REC. Together, they explored the leadership traits necessary to thrive in today’s volatile environment and the economic realities shaping these demands.

Adaptability and continuous learning: The cornerstones of modern leadership

Tiger Tyagarajan set the stage by emphasising that today's leaders, at all levels, must possess a strong ability to adapt and an insatiable hunger for learning. He underscored that hiring should focus less on current skills and more on a candidate's potential to evolve and embrace change.

“Are you hiring for someone who is highly adaptable, who loves change even though change is risky, who loves the uncomfortable, or the unknown, who loves expressing ignorance because that allows learning to happen?” Tiger asked, highlighting the need for a mindset open to growth and uncertainty.

Tyagarajan’s perspective reflects a broader shift in leadership philosophy, moving away from traditional static expertise toward a dynamic approach where questioning and learning are valued over fixed knowledge. This shift is vital for organisations aiming to remain competitive in a rapidly changing marketplace.

Economic shifts require new leadership skills

Simon French brought an economic lens to the conversation, pointing out that leaders today must be equipped to navigate a dramatically different economic landscape than what existed in the past decade. He noted that the era of low interest rates and minimal inflation allowed for aggressive growth strategies backed by cheap capital. However, this period is over, replaced by higher interest rates and inflation rates, demanding a different leadership skill set.

“The leader of the next decade will have to be able to operate in a very different interest rate environment than those who have been successful over the last 15 years,” French explained. He stressed that leaders now need to focus on profitability, cost management, and sustainable growth, rather than merely scaling at all costs.

The current economic conditions mean that leaders must be more financially savvy, understanding the implications of higher costs of capital and being able to manage a balance sheet effectively. This requires a pivot towards prudent financial management and strategic long-term planning.

Sustainability and resilience: essential for attracting investment

When discussing what private equity firms look for in potential investments, Tiger Tyagarajan highlighted a shift from a focus solely on growth to a broader emphasis on sustainable and profitable growth. Investors are now more cautious and look for businesses that can demonstrate both resilience and adaptability.

“What looks very good today may not look very good just 12 months later... it’s not about five years, it’s 12 months,” Tyagarajan stated, emphasising the need for businesses to be prepared for rapid shifts in market conditions.

Sustainability, in this context, means more than environmental considerations. It encompasses the durability of a business model, the strength of a company’s leadership team, and the organisation's ability to pivot quickly in response to new challenges.

A call for greater collaboration and problem solving

Neil Carberry and the panelists also discussed the importance of moving away from ‘financial engineering’ towards solving core business problems through collaboration and adherence to high standards. This approach is particularly critical in complex supply chains and industries facing numerous external pressures.

“As a sector, we need to find a way through problems, not around them. That feels really, really important,” Carberry remarked, advocating for a culture of problem-solving rather than short-term financial maneuvers.

This sentiment was echoed across the panel, suggesting that businesses and leaders who engage deeply with their challenges, rather than seeking shortcuts, will be better positioned for long-term success.

A future focused on productivity and global cooperation

Looking ahead, Simon French and Tiger Tyagarajan both expressed hopes for improved productivity and greater global cooperation among leaders and nations. French pointed out that economic stability and an efficient allocation of resources could lead to a positive cycle of productivity and wage growth.

“I would like to see in 12 months' time... starting to see it in productivity data,” French said, suggesting that a return to stable economic conditions could unlock new efficiencies and drive overall economic health.

Tyagarajan added that recognising our interconnected world and working together across borders would be crucial in addressing the shared challenges of the future.

“A problem somewhere deep in one corner of the world, unfortunately, will impact everyone, whether or not you like it,” he noted, calling for a more collaborative and networked approach to global leadership.

Conclusion

The REC panel discussion offered a comprehensive view of the changing landscape of leadership and economic strategy. As we move into an era characterised by higher interest rates, inflation, and rapid technological advancement, leaders must cultivate adaptability, a passion for continuous learning, and a strong focus on sustainability. Furthermore, collaboration, problem-solving, and a commitment to productivity will be key drivers of success in the years to come. The panellists left us with a clear message: those who are prepared to embrace change and lead with a forward-thinking, inclusive approach will not only survive but thrive in this new world.