Governance models must be able to respond to evolving challenges such as new regulation, emerging technology strategies, risk management, and succession planning. The pace of change is accelerating just as stakeholder demands are becoming more diverse across new markets. Boards are paying more attention to enhancing communications, increasing oversight of crisis management planning, and focusing on fraud and IT risk.
Ultimately, getting the governance models right for the future depends on building the right leadership pipeline today. CEOs find recruiting and retaining high-potential middle managers is a particularly difficult challenge. On a more positive note, management teams are -- slowly but surely – becoming more diverse. Forty percent of US CEOs rely on local regional management teams and almost a quarter say these regional leaders are also part of their organization’s global management teams.
Richard O’Brien
President and CEO, Newmont Mining Corporation
"The new normal is more engagement with communities and governments and with my own employees around the world. Over the last year my time has changed pretty dramatically. When I became CEO at Newmont, about five years ago, I spent a great deal of time understanding our operations and what we could do to improve them. I spent time building our management capability. So when I look back at my calendar compared to a couple of years ago, it’s much more externally facing, more strategically oriented. As a CEO, that’s the right place for me to be."
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Brian Duperreault
President and CEO, Marsh & McLennan Companies Inc
"I’m not sure there’s more change than there is constancy. The core requirements of senior management don’t change very much over time—or at least they shouldn’t. But recognizing that the world is somewhat split down the middle between slow growth and rapid growth, you’d better be able to operate in both at the same time. You have to manage that difficult slow growth and then completely switch gears and go to high growth. You have to find ways of moving your resources—and for us it’s talent—from where it’s not being utilized to where it can be utilized. You also have to be a good communicator today, because the tools are there. Our employees expect us to communicate to them regardless of where they are, and you’d better be able to do that. You can’t hide in the corporate suite anymore. You have to deliver consistent messages to everybody, and you’d better tell the truth."
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