1) The document discusses leadership challenges in unprecedented times and the opportunities that can arise from addressing global issues like climate change and poverty. 2) It argues that exploring opportunities posed by world issues can uncover new sources of competitive advantage while also engaging talent through corporate social responsibility initiatives. 3) Successful leaders will need to look beyond short-term gains, take risks by challenging the status quo, and integrate social and environmental issues into their organization's core values and operations.

1.
LEADERSHIP IN
UNPRECEDENTED TIMES
WHITEPAPER
Impact International is a global leader in sustainable business transformation and leadership development.
We operate in 50 countries worldwide from offices in the USA, UK, Europe, and Asia Pacific.
www.impactinternational.com
© Impact International 2011

2. LEADERSHIP FOR UNPRECEDENTED TIMES
On the third he adds: “There will be a growing emphasis
EXECUTIVE SUMMARY on good corporate citizenship, especially on strategies that
aim to ‘do well by doing good’ as firms attempt to convince
Innovative leadership through curiosity, exploration and
the public of their newfound long-term focus by
experimentation will unearth exciting new sources of
demonstrating that their activities are not just about
competitive advantage. By exploring the opportunities
making money but are also building a better world.”
posed by some of our biggest world issues,
organizations will identify sources of competitive
advantage and at the same time tap into a significant Muhammad Yunus, founder of the Grameen Bank and
source of talent attraction & engagement - which in its winner of the Nobel Peace Prize, has a mission to “put
own right is a source of competitive advantage. poverty in a museum” and has a noble if not rather
ambitious intent to eradicate world poverty by 2030.
Already his innovative microfinance model has created
We are in challenging times. What kind of leadership is
wealth in some of the poorest regions of the world and
required to navigate organizations through uncharted
was the basis for his winning the Nobel Prize. Perhaps
waters? In this whitepaper, Impact International
even more impressive is his leadership vision that has
looks at the challenges and opportunities facing leaders
resulted in the creation of groundbreaking partnerships
of organizations of all sizes, including why we all need to
with business organizations such as Danone, Adidas and
be more aware of global issues, the importance of
BASF.
engagement and innovation and how there may be
some not-so-obvious sources of competitive advantage
The creation of “Social Businesses,” which exist to
that are both groundbreaking and exciting.
achieve something other than profit and a financial
return for shareholders, could easily be dismissed as
Impact serves as leadership consultants to some of the
nothing more than do-gooder philanthropy but it would
world’s most reputable brands - in some cases we have
be foolish to ignore the notable business success of
worked in partnership with them for over twenty years.
Grameen-Danone. In this Yunus-led initiative, 95% of
Despite our small size (200 professionals delivering in
shareholders were happy to invest money in the
50 countries and speaking 30 languages), as a global
project; it had a profound motivational effect on the
consultancy we tend to get more involved than most
engagement of employees at Danone (over a thousand
small businesses in global issues, evidenced by our being
have invested their own money in it); and the strong
a signatory to the UN Global Compact and a charter
ethical stance demonstrated by this project reinforcing
member of the Business Call to Action.
Danone’s corporate mission has led to 25% of all
graduates in France identifying Danone as the company
At the World Business Summit for Climate Change in
they would most like to work for!
Copenhagen, UN Secretary General Ban Ki-moon
commented: “Climate change is the ultimate balance
It’s clear that successful leaders in organizations moving
sheet of the 21st century. Any business who doesn’t have a
forward need to be able to look a lot further than just
strategy in place will be history.”
over the garden fence. We are in an increasingly
interconnected Global Village and even small businesses
Nobel Peace Prize winner Al Gore, who opened this
need to pay attention to more global aspects such as
conference, added: “Every business has a leadership role
their supply chain and corporate reputation.
to play. The clock is ticking and Mother Nature doesn’t do
bail outs!”
The Danish magazine Monday Morning alerts us rather
alarmingly to an interconnected series of world crises.
In an article in The Economist entitled “The World in
We are all aware of the current global financial crisis.
2010” US business editor Matthew Bishop states that
Of equal concern, albeit to varying degrees, we share
successful organizations in the new business
increasing concerns over energy, water, security, food
environment will take a keen focus on looking at
and poverty as well as the climate issue already
emerging issues and mandates. To do that they will
discussed. Yet Monday Morning remains positive
need to be especially proactive in three areas:
because they suggest that from this adversity comes
great opportunity: “The difference between a risk and
 Innovation
an opportunity is how quickly you recognize it and what
 Emerging economies
you choose to do about it.”
 Social and environmental issues
www.impactinternational.com 2
© Impact International 2011

3. LEADERSHIP FOR UNPRECEDENTED TIMES
And so what of leadership? We would like to focus on
a particular zone where forward-looking organizations
with the courage to act and the right leadership to
guide them through can flourish.
Jonathan Porritt has a simple model of sustainable
development where business sits clearly as part of
society and the environment and not as a separate
entity. With this reality comes great responsibility but
also great opportunity. This opportunity is what we
would describe as operating as a “Sustainable
Enterprise,” an organization that embraces this notion
and recognizes the interplay of these three aspects.
We think the really exciting zone for leaders to operate
is where these challenges are seen as opportunities
and ideally where they are genuinely integrated
into the core of the business both in terms of
organizational values and daily behaviors. This is then
entering groundbreaking territory with exciting new
thinking. As our new low-carbon landscape takes shape
it is likely that entrepreneurial, pioneering organizations
will be better placed to take advantage in these new
territories.
This innovative leadership through curiosity, exploration
and experimentation will unearth exciting new sources
An organization can choose different ways to react to of competitive advantage. By exploring the
socio-environmental issues. It can ignore them, as opportunities posed by some of our biggest world
they are nothing to do with us - “Let governments sort issues organizations will identify sources of competitive
them out!” advantage and at the same time, as the likes of Danone
have discovered, tap into a significant source of talent
They can see them as a responsibility - “Our moral attraction and engagement, which in its own right is a
compass says we should do something and it also might source of competitive advantage.
make us look better.” So much CSR (corporate social
responsibility) operates at this level and as Business in
the Community would describe it is “bolted on” rather
than “built in.”
Slightly more strategic is to recognize the real risk that
these issues pose to your organization, so action has to
be taken. But in all these cases it is still at a level of
compliance and adaptation.
www.impactinternational.com 3
© Impact International 2011

4. LEADERSHIP FOR UNPRECEDENTED TIMES
This will take courage and a willingness to challenge the
status quo. Leaders must recognize the need to act and
have the courage to take action and see it through. In our
view, leadership action needs to provide three core
elements:
Organizations that embrace social and environmental
issues are likely to find that this has a powerful positive
impact on their employees. Many people who may be
engaged in mundane work by day go home and do
extraordinary things in their own lives through charities
and community groups. By integrating these issues into
core values, they may well find a powerful values match,
The Copenhagen call to action then is no longer a
which if carried out in a genuine and authentic fashion,
“climate issue” - it is a global leadership issue. It will
produces increased levels of trust and loyalty. This
bring change that will affect organizations of all sizes - to
attracts and retains talent, adds value and reduces cost.
what depth will depend on the level of combined
If a focus on driving innovation is added to the mix
courage of our political and business leaders working in
(fostered by consultation and well-designed
partnership.
involvement) the levels of engagement are likely to
increase significantly – creating still more competitive
What are the implications for leadership
advantage.
development?
Leaders in organizations have always had to be self
aware, conscious of their effect on others and of their
ability to influence their own organization. We believe
that successful organizational leadership in the future
must include a sound understanding of global issues.
Leaders will need even higher levels of emotional
intelligence; be consultative and inclusive; and take a
more holistic view to their organization’s position in the
greater scheme of things.
www.impactinternational.com 4
© Impact International 2011

5. LEADERSHIP FOR UNPRECEDENTED TIMES
The qualities of leadership we think will be in most Impact International
demand to create competitive advantage in this new
landscape are: Impact International is a global leadership development
consultancy based in New York. Impact is widely
 The curiosity to look for new opportunities regarded as a leader in custom-designed experiential
 The ability to engage people at an emotional learning solutions for development of leaders and key
level talent. We are especially known for the way we create
 The creativity and discipline to innovate custom learning architectures, leveraging real live
 The foresight to create exciting, cross-discipline business issues of strategic importance to the
partnerships organization as the vehicle for development.
 The courage to lead groundbreaking change
Impact has been recognized as a Top 20 Leadership
The better organizations will be the ones who grasp Training Company (TrainingIndustry, 2011).
these realities as an opportunity to innovate products
and services to their advantage. This will call for All rights reserved – this whitepaper may not be
innovative leadership. reproduced in whole or in part, without the express
written consent of Impact International. For more
The best organizations will integrate all aspects of social information please contact:
and environmental issues into their core business. In so
doing, they will open up opportunities to engage the Ted Gemmell
hearts and minds of their customers, employees and SVP – Global Client Solutions
shareholders. This engagement will increase brand Impact International
equity through trust and commitment that in turn
One Columbus Place, Suite S30C
creates the possibility of greater business success. This
will be achieved through courageous leadership. New York, NY 10019
+1 212 586 9005
There isn’t time to wait - as Martin Luther King said: ted.gemmell@impactinternational.com
“Procrastination is the thief of time.... the time for action is
now.” www.impactinternational.com/americas
www.impactinternational.com 5
© Impact International 2011