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2. Geopolitical Instability

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As I’ve traveled internationally to speak about leadership accountability, I’ve been surprised by the world-shaking events I’ve been able to experience. As I shared in the introduction to this book, it seemed that every time I landed in a country on a business trip, a big leadership story was unfolding in real time. It’s become clear to me that leaders will need to be much more aware of the geopolitical dynamics in the world. Fifty-two percent of CEOs surveyed by KPMG believe the geopolitical landscape is having a more significant impact on their companies.20 McKinsey’s research21 found that geopolitical and macroeconomic instability will create what they call geostrategic risk, which will have a negative impact on companies.

What’s particularly concerning to me is that the vast majority of executives surveyed by McKinsey admitted to not taking active steps to address geopolitical issues. What do you believe are the risks when leaders do not actively think about geopolitical issues happening around the world? In my client work, I have seen the world of leaders turned upside down because of geopolitics. Many leaders tell me how they have had to deal with the impact of trade disputes, tariffs, and tensions between countries where they operate. These result in hundreds of millions of dollars in lost revenue. For many, it seemed to all happen in an instant. As leaders, we need to learn to be more sensitive to the world around us and try to anticipate and mitigate the risks that may emerge due to global events.

Accountable Leaders

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