The 22nd International CEO Conference of the Management Association of the Philippines (MAP), “Business in Five Movements: Wisdom, Passion, and Inspiration Across Multiple Generations” on Sept. 10, concerned itself with rapidly happening changes in the business environment today.
Challenges that businesses face today are identified to be political (the leaders in government and society, and the collective political thought); governance (honesty and integrity in government and in business); reforms and legislation (changing laws, practices, and the new technology); the market (supply/demand and competition); and adjusting to a multi-generational world.
At the conference, it was emphasized that the generation groups, which have some 15 years difference from each other, complicated the strategies and decisions in doing business — because of the marked divergence of needs and wants across the generations, and their different preferences and choices.
There are now six generations:
• The Silent Generation, those born from 1928 to 1945, and who are 79 to 96 years old today;
• Baby Boomers, born between 1946-1964 who are now ages 60-78;
• Gen X, born between 1965-1980 who are now 44- 59;
• Millennials/Gen Y, who were born between 1981-1996 and who are now 28-43;
• Gen Z, who were born between 1997-2012 and who are now 12- 27; and,
• Gen Alpha, those born after 2012 (children)
How to go about making changes in this situation? The MAP proposes that business orchestrates its “symphony” in five movements: Movement of Legacy; of Resilience; of Transformation; of Mission; and of Innovation.
“Tailoring strategies, products and services to meet the diverse needs and preferences of each generation while embracing technological advancements and social trends will be keys to success across industries,” it was stressed.
Sandeep Uppal, president and CEO, Hongkong and Shanghai Bank (HSBC) Philippines, warned that “change without focus is not good. What is more important than change is preservation.” He pointed out that HSBC has been in the Philippines since 1875 when it started operations in Binondo on sugar exports. Almost 150 years, and the bank holds fast to its driving strategy to “deliver sustainable outcomes for customers, communities and people.” Change framework principles are 1.) initiate the right change, with a clear design demonstrating value; 2.) plan, deliver and imbed change effectively to defined standards; and, 3.) ensure agreed outcomes and value are delivered. But always, the driving strategy (the mission-vision) is the anchor.
“There is always the debate between evolution and revolution,” Mr. Uppal said. Go slow on change. Stop, look, and listen before you jump, he must be meaning to say. At the break in the conference, an inquisitive business writer asked Mr. Uppal if his exhortations on prudence and caution come from HSBC’s being British, and the British being known to be characteristically sedate and composed, as in the wartime British slogan “Keep calm, and carry on!” Mr. Uppal only laughed in reply. Business culture will follow native culture. After all, organizations are made of men, and not of machines. And culture can change, down the generations.
Well, it can be safely said, as it is generally observed, that the younger generations, Generations X, Y (millennials) and Z are more adventurous and not too calm about all the exciting changes in life and our environment. They are eager for new things, new ways. Like new technology. Even Gen Alpha (children 11 years old and below) can already be expert users of gadgets with interactive games and videos (hopefully controlled and monitored by parents for content).
“Generative Artificial Intelligence is the 21st century ‘power play.’ It is sparking a surge of innovation akin to the advent of electricity,” declared Scott Likens, Global AI and Innovation Technology Leader, Price Waterhouse Coopers (PwC) USA, at the MAP Conference. “Technology isn’t just advancing; it is accelerating at an unprecedented rate. Example: AI computing speed is doubling every 3.5 months,” Mr. Likens said.
In PwC’s Global CEO Survey 2024, 70% of CEOs expect Artificial Intelligence (AI) to significantly change their business models. About 58% expect Generative AI, advanced robotics, and cloning to improve the quality of their companies’ products and services, and thereby increase profits in the next 12 months. For 70% of CEOs, there is the confidence that in the next three years, technologies will have significantly changed and improved production, delivery, marketing, and administration in their company, but that will have also increased competitive intensity in the industry.
These are some of the emerging technologies that impact business and its publics:
• Artificial Intelligence (AI)
• Internet of Things (IoT)
• Blockchain
• Augmented reality
• Advanced robotics
• Quantum computing
• Neuromorphic computing
But there are risks in adopting the new technologies. There are cybersecurity risks, misinformation, legal liabilities and reportorial risks from biases or faulty conclusions that may be generated by AI. There’s identity theft, scamming, fake news. Can technology be trusted?
There are questions and doubts: Will the advanced technologies hurt humanity and the environment? Is AI really useful for business for doing what labor does, as human jobs are made redundant by machines? A question was asked from the floor, at the MAP conference: Will lawyers lose their reason for being, when documents and legal arguments can now be generated by AI? Who claims the intellectual property and psychic income from creativity when the user just pressed a button?
Gonzalo Varela, a World Bank economist, agreed that the new technologies affect occupations. He talked about the catching-up that the Philippines must do to jump up to upper-middle income status amidst global shifts which include technical disruptions, geopolitical protectionism, and climate change. He said there is still some way to get ready for these challenges, as he particularly lamented that “the Philippines ranks 65th out of 174, in terms of AI readiness, a laggard in the region.”
Is it all about catching up for the country, and urgent changes in the ways of doing business? As the philosopher Ralph Waldo Emerson famously said, “Life is a journey, not a destination.” In the rush to “do as the big boys (the developed countries) do,” a small developing country like the Philippines might miss the psychological learning curve that would validate the decision to have embarked on the decided changes for perceived improvements and development. It would be very much like giving a two-year old child an iPad to play with and watch videos on. The child has been deprived of the slow but sure learning, and the discipline, found from playing with alphabet blocks and catching balls.
Isn’t it sad that many children and young adults now cannot do manual arithmetic computations and cursive writing (script or longhand)? (BusinessWorld, Dec. 20, 2023)? And yet they have smart phones that can contact people, answer questions, send messages, find things and places — and of course do arithmetic and other computations! Thus, speaking of generations and generation gaps, the magic of technology has created a culture shift in the younger generations that has made them adventurous for quick gratification. The “instant” generation.
It would be unfair and unfeeling for leaders of industry and government to be sucked into the excitement of changes in the global playing field with little consideration for the timing and capability of society to absorb the costs and effects of these changes on them. Go slow on changes, as Mr. Uppal of HSBC said, early on. “Deliver change safely. Deliver sustainable outcomes for our customers, communities, and people.”
Change is a journey. It is not a destination.
Amelia H. C. Ylagan is a doctor of Business Administration from the University of the Philippines.
