Andrew Liveris on Rethinking CEO Wisdom and Leadership

The role of a CEO has become increasingly complex. Long gone are the days when traditional leadership lessons and skills were sufficient to navigate the challenges of the modern world. In his book, “Leading Through Disruption,” former CEO of Dow Chemical, Andrew Liveris, challenges the notion of CEO wisdom from the 20th century and offers a fresh perspective on what it takes to lead in the 21st century.

The Changing Business Landscape

Liveris begins by acknowledging the relevance of many business and leadership lessons from the past. However, he emphasizes that the business landscape of today is vastly different from that of two decades ago. In order to effectively deploy these lessons and skills, they must be reimagined and retaught.

The New Role of ESG

One of the key aspects of 21st century leadership, according to Liveris, is the incorporation of Environmental, Social, and Governance (ESG) metrics into a company’s strategy. In his view, ESG is not just an add-on to the CEO’s job but has become central to it. Liveris argues that businesses cannot thrive unless society and the Earth also thrive. He refers to the global enterprise as “Humanity Inc.” and emphasizes the importance of adopting and embedding ESG metrics as a baseline requirement for a business’s social license to operate in the 21st century.

Liveris’s perspective on ESG is particularly noteworthy considering his background as the CEO of a petrochemical company. He highlights the evolution of business thinking on environmental issues, citing Dow Chemical’s journey from “Denial” in the 1960s to “Defiance” in the 1970s, “Debate” in the 1980s, and “Dialogue” in the 1990s. Today, Liveris believes that businesses must move beyond dialogue to action. He asserts that on critical issues such as transitioning to a zero-carbon future, businesses have a responsibility to lead.

The New Common Good

In addition to the role of ESG metrics, Liveris emphasizes the importance of the “New Common Good” in 21st century leadership. He argues that businesses must prioritize the well-being of society as a whole, not just their shareholders. Liveris believes that this shift towards stakeholder capitalism is essential for the survival and success of businesses in the 21st century.

According to Liveris, this century’s businesses cannot thrive unless society and the Earth also thrive. He refers to the global enterprise as “Humanity Inc.” and emphasizes the importance of adopting and embedding ESG metrics as a baseline requirement for a business’s social license to operate in the 21st century.

A Tool Kit for 21st Century Leadership

Liveris’s book, “Leading Through Disruption,” serves as a tool kit for CEOs and leaders in the 21st century. It covers various topics that are crucial for navigating the challenges of today’s business world. Liveris touches on changing geopolitics, the need for long-term thinking, the challenge of accelerating technology, the importance of manufacturing and science, and more.

Liveris emphasizes the importance of adapting to the changing global landscape and encourages CEOs to think beyond short-term gains. He believes that long-term thinking is essential for sustainable success in today’s rapidly changing world. He also highlights the role of technology in driving disruption and the need for businesses to embrace technological advancements to stay ahead.

The Intersection of Purpose and Profit

Liveris’s book also highlights the potential for purpose and profit to go hand in hand. He references Novo Nordisk, a 100-year-old Danish company that is “taking on the weight of the world” by addressing the global obesity crisis. Liveris argues that purpose-driven initiatives can have a positive impact on society while also contributing to a company’s bottom line.

The Importance of Manufacturing and Science

In a world that is increasingly focused on technology and services, Liveris emphasizes the importance of manufacturing and science. He believes that these sectors are critical for innovation, job creation, and economic growth. Liveris encourages businesses to invest in manufacturing and science to drive progress and stay competitive in the global marketplace.

Navigating Disruption

Liveris’s book serves as a roadmap for CEOs and leaders to navigate disruption. He acknowledges the dizzying pace at which the rules of business are changing and provides insights and strategies to help businesses thrive in this evolving landscape. By embracing ESG metrics, prioritizing the common good, thinking long-term, embracing technology, and investing in manufacturing and science, Liveris believes that CEOs can lead their organizations through disruption and position them for success.

Conclusion

The role of a CEO has evolved significantly in the 21st century. Traditional leadership lessons and skills are no longer sufficient to navigate the challenges of today’s business landscape. Andrew Liveris’s book, “Leading Through Disruption,” offers a fresh perspective on what it takes to lead in this new era. By embracing ESG metrics, prioritizing the common good, thinking long-term, embracing technology, and investing in manufacturing and science, CEOs can adapt to the changing world and position their organizations for success.

FAQ

Q: What is the main focus of Andrew Liveris’s book, “Leading Through Disruption”?

A: The main focus of the book is to provide a tool kit for 21st century leadership, emphasizing the importance of adopting ESG metrics and prioritizing the common good in order to navigate the challenges of today’s business landscape.

Q: Why does Liveris believe that ESG metrics are essential for businesses in the 21st century?

A: Liveris believes that businesses cannot thrive unless society and the Earth also thrive. He argues that adopting and embedding ESG metrics is a baseline requirement for a business’s social license to operate in the 21st century.

Q: What is the significance of long-term thinking in Liveris’s book?

A: Liveris emphasizes the importance of thinking beyond short-term gains and focusing on long-term sustainability. He believes that long-term thinking is essential for businesses to adapt to the rapidly changing global landscape and drive sustainable success.

Q: How does Liveris view the intersection of purpose and profit?

A: Liveris believes that purpose-driven initiatives can have a positive impact on society while also contributing to a company’s bottom line. He references Novo Nordisk as an example of a company that is successfully addressing a global issue while driving profitability.

Q: What role does Liveris assign to manufacturing and science in today’s business world?

A: Liveris believes that manufacturing and science are crucial for innovation, job creation, and economic growth. He encourages businesses to invest in these sectors to drive progress and stay competitive in the global marketplace.

First reported on Fortune

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