Developments, Trends and Implications for Executive Development June 2010 Nice, France

Agenda  Impact of globalization  Barriers and risks to growth  Greatest challenges for global companies  Workforce evolution  Leadership evolution Sentient June

Impact of Globalisation  Rising demand in emerging markets  Global sourcing  Geopolitical instability  Increased competition  deregulation  Customer pressure for improved products and services  Advances in customer-facing technologies (e.g. Web 2.0)  Increased emphasis on environmental issues  Economic and financial instability  Demographic change (e.g. population ageing, low birth rates)  Rising competition from domestic companies based in emerging markets  Rising M&A activity  Catastrophic events (e.g. terrorism, pandemic, natural disasters)  Rising protectionism  New business regulations Sentient June

Barriers & Risk to growth  Frequent economic downturns  Geopolitical and security threats  Macroeconomic and financial risk  Information security  High labour costs  Increased competition from international rivals  Market saturation  Downward pressure on prices  Lack of available local talent  Tax and regulatory pressures  Rising costs of energy and raw materials  Increased competition  Risk aversion at board and senior management level  Lack of capital  Lack of new products and services  Inadequate understanding of customers  Trade and investment barriers Sentient June

Challenges for Global companies  Understanding customers in multiple territories  Finding high-performing talent in multiple territories  Communicating a single strategic vision  Managing teams effectively across borders  Building brands that are effective in multiple territories  Ensuring good internal controls and risk management  Ensuring consistent quality of products and services  Transferring best practices from one territory to other territories  Giving local territories flexibility to take advantage of opportunities  Ensuring growth in certain markets is not at expense of growth in other markets  Planning for and ensuring business continuity Sentient June

Evolution of the Workforce Change drivers Macroeconomic power shift Environment & Technology Resources & Cost Sentient June

Evolution of the Workforce  Increase in diversity  Changing employee profiles  Changing work environment Sentient June

Leadership Evolution  Self-leadership  Coordinative leadership  Collaborative leadership Sentient June