Business complexity

Can your company manage a rapidly growing number and range of global stakeholder relationships?

Increasing business complexity

We need drastic change in order to respond to global competition. Maybe it's not just a leadership problem, but (one that is) an overall aspect of the company.

Takahide Kiuchi
Chief Economist
Nomura Securities

Today's complex global marketplace requires different organisational principles

Growing interconnectedness between economies and more complex trade and financial relationships necessitates updated management approaches. The global economy has become massive in size, breadth and diversity. There are enormous opportunities but they are also fraught with complexity. The interconnectedness between fast growing and mature regions has vastly increased the complexity, number and range of stakeholder relationships that must be managed.

Like corporations everywhere, Japan's corporations need to deal with these complexities. But on balance, Japanese corporations have been slower to adapt to new global complexities. When the world was simpler, executives could control their business and understand customer dynamics from headquarters. But today's environment necessitates that a central strategy is adapted to fit operations around the world. This usually means devolving authority to increase the company's ability to respond to local conditions. To enable decisions with greater uncertainty to be made with greater speed.

Transformational strategy

Develop and sustain a culture of leadership and management that is responsive to this newly integrated and diverse global environment. Building the judgements and insights of diverse business, people and cultural components into the central leadership structure is a challenge to every company that has traditionally depended on leadership candidates who have risen through the management ranks.

World GDP per capita, growth and population distribution

Source: IMF and World Bank
Increasing business complexity