Eugene Kim, Egon Zehnder's office leader in Seoul, is a regular contributor to The Korea Herald’s Management in Korea column. The following articles were originally published in The Korea Herald’s Management in Korea and are presented here with its permission.
In recent years oil and gas companies have applied innovative technologies to make discoveries of vast new hydrocarbon resources. If only it were that easy for them to deal with a dire challenge above ground: identifying and training a new generation of qualified and prepared executives who are ready and willing to lead oil and gas companies at this pivotal time in the industry’s history.
In the digital age, companies in every industry must unleash a new wave of innovation – or be disrupted by aggressive new competitors. Digital is transforming everything from consumer behavior to employee engagement to the management of cities and infrastructure.
As private equity firms look to maximize value from their investments, it is critical to ensure that portfolio company management teams have the right capabilities to execute against their investment theses. Though in many cases the underlying premise will lie in backing an existing management team, it is increasingly common for private equity firms to bring in a new CFO early in the lifespan of an investment.
Big businesses are often slow to adapt and innovate, while start-ups struggle to build teams and systems to scale up their businesses. How can firms break this mould? By learning from one another, writes Egon Zehnder’s Catherine Zhu in the Career Doctors section of the South China Morning Post.
In 2013, Carol SingletonSlade, Steve Goodman, Trent Aulbaugh and Roger Aguirre of Egon Zehnder’s Global Energy Practice warned of the dire need for identifying and training a new generation of qualified and prepared executives who are ready and willing to lead oil and gas companies. Four years later, as Chevron’s chief executive John Watson is set to step down, his likely replacement is a representation of this “new leadership for a changing oil world.”
Before a company acquires an expensive new piece of capital equipment, the board will vigorously scrutinize assumptions,
payback times and contribution to enterprise value – assigning a net present value. What if this expensive new piece of equipment is the CEO?
Executives who join companies to lead a digital transformation process are faced with a range of barriers, and may even abandon the project in just a few months. He or she will walk away frustrated and tired of fighting against the tide. The reason for this is that these professionals are hired with the support and incentive of the CEO, but soon find themselves alone.