Managing Popular Banking and Practising Financial Inclusion? Challenges Accepted!

Mexico’s Banco Azteca has risen to the top thanks to its inclusive policies — and astute direction from its chairman.

Alejandro Valenzuela’s understanding of the banking industry has substantially evolved over his nine years at the helm of Mexico’s Banco Azteca.

[caption id="attachment_26996" align="aligncenter" width="900"] Chairman: Alejandro Valenzuela[/caption]

“I am not exaggerating when I say that in this organisation, I have learned more than in my entire career in public and private financial institutions,” he admits. “Managing a popular bank has shown me little-known aspects of our Mexico, its people, and its culture — from a very close and privileged position.”

This in-depth understanding has led the chairman of the board to ensure that financial inclusion is an integral part of the business model. “We take financial inclusion beyond rhetoric,” Valenzuela says. “It’s something we’re convinced of and committed to: to serve our customer base, which is mostly comprised of the popular segment.

“We offer products and services that are easy to understand and tailored to meet all income levels, to bring inclusive prosperity to communities.”

Valenzuela’s academic background as an economist and his experience in public and private institutions have provided him with a comprehensive vision of the financial system. He served at Mexico’s Central Bank and at the Ministry of Finance and Public Credit, while in the private sector, he held various senior positions, including seven years as CEO of Grupo Financiero Banorte.

In February, Valenzuela assumed the chairmanship of the Banco Azteca board of directors. He had led the general directorate of the bank since joining in 2015. Banco Azteca belongs to Grupo Salinas — one of the largest business conglomerates in the country.

Over the years, Valenzuela has noted that when financial and banking services arrive in a community, growth is triggered. “Financial inclusion, complemented by financial education, becomes a catalyst for economic development,” he points out. “Hence our concern to generate greater coverage — to give more people the opportunity to join the financial system.”

It's important that Banco Azteca has a physical presence to provide those services. Substantial human and material resources have been deployed to create the most extensive private banking network in Mexico. There are more than two thousand branches across hundreds of municipalities, many of them far from urban centres and economic hubs.

But Banco Azteca is not oblivious to modernisation or the evolution of banking services. “We’re a popular bank, but we’re not lagging in terms of digital and technological evolution.

“Being popular is not at odds with being modern — or with providing quality service. The adoption of new technologies has allowed us to incorporate more Mexicans into financial services.”

To gauge the evolution and relevance of its digital channel, the proof is in the numbers. “From 3.3 million customers who used our app in 2018,” he says, “by the second quarter of this year, that had risen to 24 million.” The number of transactions and operations increased in proportion.

This complementary service model has been dubbed "phygital" by Valenzuela: “Combining the best of physical infrastructure and the digital platform.”

For Alejandro Valenzuela, professionalism and constructive action form a fundamental part of the mission. “It’s significant to be reliable, to 'know how to listen' before 'knowing how to speak'. Our aim is to leave a positive legacy in everything we do, and in every interaction.”

This management style has allowed him to consolidate Banco Azteca. The organisation owes much to the sensitivity and vision of Ricardo Salinas Pliego, founder and chairman of Grupo Salinas, says Valenzuela. “He entrusted me and the team to make the adaptations required for the bank’s maturity, providing it with more institutional management.”

Banco Azteca ranks ninth in the Mexican financial system by asset value, and has solid indicators. “We closed 2023 with the best results in our history in terms of capitalisation, liquidity, customer numbers, portfolio, profits, and service.”

Valenzuela finds the time to participate in various philanthropic causes, and shares his knowledge in various forums, and in academia. He has lectured at the Instituto Tecnológico Autónomo de México and the Centro de Estudios Monetarios Latinoamericanos.

With over two decades of experience in banking, Alejandro Valenzuela was perfectly equipped and qualified for the position of chairman of the board at Banco Azteca. “We observe continuity that few institutions have achieved,” he says. “For us, it’s gratifying to have fulfilled this corporate governance responsibility.”


Türkiye in the Economic Spotlight: Globalturk Capital Keeps the Focus on the Country’s Growing Status

A growing body of international luminaries, government ministers and experts are taking note of Türkiye’s rise in international economic affairs.

Globalturk Capital has been promoting Türkiye as an FDI destination since it was founded by Barış Öney in 2011.

The company has been helping multinationals to set-up joint ventures with Turkish companies, either in Türkiye or abroad.

Globalturk’s mission is explicit and detailed: “To globalise Türkiye by contributing positively to the country’s integration with the global world via assisting Turkish entrepreneurs and foreign strategic and private capital funds in their cross-border and global M&A and investment transactions.”

The company follows that to the letter, and has been organising events and round-tables in the sphere of international private capital since 2015. It has assisted businesses and investors in networking and achieving mutual collaboration as a non-profit service. These efforts continued online during the pandemic, and proved motivational for all concerned.

Globalturk Capital’s events and round-tables are held in association with global private capital associations, as well as public and private institutions and government bodies in Türkiye.

These institutions include New York-based Global Private Capital Association (GPCA, formerly EMPEA), whose members globally manage $2tn in assets. Also on the list are the London Stock Exchange, the Investment Office of the Presidency of the Republic of Türkiye, and the sponsors and supporters of prestigious multinational funds, large corporations, investors, service providers, and government and non-profit bodies and associations.

The president and vice-president of the Republic of Türkiye and senior ministers — including the Minister of Economy, and deputy ministers of Trade, Industry and Technology — have all attended the events. The UK’s Minister of State, Nusrat Ghani, participated in the most recent one in February 2024 in London. She made motivational comments on the valued nature of business relationships between UK and Türkiye.

Over 2,500 international private equity, private credit, venture capital funds (DFIs, LPs and GPs), as well as local corporate venture capital firms, family offices, banks, corporates and service providers, have also attended.

Comprehensive post-event reports have been shared with some 10,000 global private capital funds, investors and corporates through Globalturk Capital’s network, as well as via GPCA, the London Stock Exchange, the Türkiye President’s Investment Office, sponsors and supporters.

Those reports summarised the main messages and keynotes of the events — which helped the industry as the only source of private capital of its kind. They remain available on the Globalturk Capital website.

Globalturk Capital has, since 2015, given sustainable impetus to the promotion of Türkiye to the global private-capital community. No other private or international organisation has yet followed its lead.

GPCA assigned Globalturk Capital founder and managing partner Barış Öney to represent the organisation in Türkiye in 2017, and to promote the private-capital asset class — making him the first national representative of GPCA. He has been serving in this capacity ever since, and is an active member of the GPCA’s CEE Leadership Council.

Globalturk Capital has made an invaluable contribution to the State of Türkiye by providing greater understanding of the private-capital asset class. Öney’s efforts contribute to on-going regulatory framework studies to ease the investment environment for private capital.

Türkiye is not the only beneficiary; other countries and organisations have also been given a boost. Each year, representatives from the CEE, Ukraine, Caucasus, Asia and MENA regions have shown an interest.

Öney has been active in various international and local associations since 2003, promoting Turkish businesses in the US, UK, UAE, and Europe.

Lucky 13 for Globalturk Capital: Things Just Keep Getting Better

Globalturk Capital is in its 13th year of operation — and with high-level relationships with the London Stock Exchange Group and GPCA (formerly EMPEA) it leads the way for the international business and investment community.

With an experienced team — the members have more than 100 years of collective experience under their belts — clients can rest assured of targeted help in successfully closing transactions.

Globalturk Capital’s expertise and international experience in strategic business development and growth has served it well. It structures financial plans for the any funding requirements. With its innovative approach and in-house systematic modelling system, it helps companies to finance growth via partnerships and long-term debt instruments.

“To assess your company for an acquisition and prepare for it, learn the true value of your company and complete the transaction,” says CEO Barış Öney.

Globalturk Capital takes a snapshot of a company, determines what needs to be done prior to the sale, and deploys the necessary actions. “You can learn what is needed to improve your company value,” says Öney, “and work towards closing a transaction with the right investor and an optimum share price.”

Globalturk Capital opens access to private equity and debt funds that invest in emerging markets through its business model. “To partner with a strategic foreign multinational will add know-how and international market reach for your business,” notes Öney.

Globalturk Capital provides introductions to leading multinational companies in various sectors, establishing partnerships with mutually beneficial goals.

Growth can come by acquiring companies in UK, Europe, US, Türkiye and emerging markets, or merging with them to diversify risks in business portfolios. The firm seeks targets relevant to client objectives, analysing and evaluating them to set up appropriate M&A approaches.

It also helps to find suitable funding to realise acquisitions — in Türkiye and beyond. Globalturk Capital’s international experience and inclusive network helps to raise capital and/or debt from local and global sources to achieve acquisition goals.

“With Globalturk Capital, you can also resolve conflicts between shareholders during M&A transactions,” says Öney, “either between family members or partners. You can further manage conflicts between founding shareholders and foreign strategic and private equity investors by managing expectations and avoid unpleasant outcomes post-investment.”

Öney further points out “we also manage exit processes, which require a much more delicate handling than the standard M&A process.”


Age Diversity on Corporate Boards — is it a Case of Old Fogeys vs Upstarts?

Diversity and inclusion are topics of our time in discussions about corporate governance.

There’s been significant progress in gender and racial diversity on boards, but age remains a relatively unexplored frontier.

It’s an important issue, with regional variations, potential benefits, and a fair share of challenges. Each generation has its own perspectives, shaped by life experiences, historical contexts, and cultural influences.

Younger people typically show a deep understanding of emerging technologies, digital trends, and evolving consumer preferences. Those things are essential for staying ahead in an evolving business landscape. Their older colleagues bring to the table a wealth of knowledge, experience in navigating complex business cycles, and institutional memory. Both sides provide valuable insights for strategic decision-making.

Research supports the notion that age diversity enhances corporate performance. A study published in ResearchGate found that boards representing multiple generations tend to outperform those that don’t. A PwC survey backed that up, showing a positive correlation between age diversity and long-term financial outlook.

Challenges and Barriers

Despite the potential benefits, achieving age diversity poses real challenges. Ageism, whether conscious or unconscious, can lead to the knee-jerk reaction that younger candidates lack experience — or that older ones are resistant to change. Traditional recruitment practices prioritise established networks and individuals with extensive experience, potentially overlooking emerging talent. When boards favour seniority and experience above all else, it can be hard for younger directors to live up to their potential.

Global Perspectives

Different regions exhibit varying approaches to age diversity. In North America, progress has been made in terms of gender equality and diversity — but the age factor remains a challenge. Many boards still opt for executives in their 50s and 60s, with relatively few younger members joining the team.

European countries have been more proactive in this area. In Norway, for example, quotas for younger directors have introduced. But generally, challenges remain in overcoming traditional recruitment practices.

In many Asian countries, respect for seniority and experience is deeply ingrained in corporate and society culture. This alone makes it difficult for younger people to ascend to board positions. But things are changing, as companies begin to recognise the value of generational diversity.

A Roadmap for Change

There are several effective strategies to foster age diversity. By actively seeking out candidates with diverse backgrounds and expertise, new recruitment channels open up, expanding networks and fostering partnerships with organisations that focus on developing young leaders.

Mentorship and sponsorship programmes introduced at an early stage can support the professional development of younger directors, providing them with guidance, opportunities for growth, and, eventually, access to senior leadership.

Fostering an inclusive culture that values diverse perspectives and encourages can open dialogue and collaboration across generations. This creates opportunities for informal interactions, promotes active listening, and recognises the potential of novel contributions. Term limits and staggered elections help to create opportunities, while ensuring continuity as well as generational knowledge transfer.

Diversity, in all areas, is a crucial component of forward-thinking companies. By embracing a multi-generational approach, a broader range of perspectives, experiences, and skills is ushered in.

It's time for companies worldwide to recognise the value of both lived experience and the ingenuity and enthusiasm of youth — and take proactive steps to benefit from the full spectrum of talent on hand.


‘Leaders Must be Bold’ — a Fearless Lagos Credit Bureau CEO Speaks Out

Group Managing Director/CEO of Nigeria’s CRC Credit Bureau Ltd, Dr. 'Tunde Popoola, in conversation with CFI.co.

Lagos-based CRC Credit Bureau, in association with Dun & Bradstreet, provides nationwide information on credit profiles, for consumers as well as corporate entities.

[caption id="attachment_27025" align="aligncenter" width="584"] CEO of Nigeria’s CRC Credit Bureau Ltd: Tunde Popoola[/caption]

The focus is on improving the ability of credit providers to make informed lending decisions from customer acquisition, credit analysis and monitoring, skip-tracing and recovery. CFI.co wanted to find out more.

CFI.co: What excites you about the business world in general?

Tunde Popoola: I’m thrilled by the philosophy of addressing issues, finding solutions to human problems and creating value. That mindset makes life more rewarding and exciting, and businesses get to deploy tools to build institutions, develop a workforce and capacities to deliver on their focused areas. I’m enthused by the impact that businesses make, serving as engines of growth, innovation, and progress. The process contributes to improving living standards, societal development and human progress.

I’m excited by the dynamism and constant evolution of the business world. Every day brings new challenges and opportunities, pushing us to innovate, adapt, and grow. The pace of technological advancements and the way they transform industries is particularly fascinating.

This ever-changing landscape requires agility and a forward-thinking mindset.

What lessons did you learn from your earlier career experience?

The importance of resilience and adaptability. The business environment can be unpredictable, and the ability to pivot and adjust strategies is crucial for long-term success.

Additionally, I learned the value of building strong relationships and networks. Success is rarely achieved in isolation: collaborative efforts and partnerships often drive significant achievements.

Finally, I understand the necessity of continuous learning and staying updated with industry trends to remain competitive. I learned the benefits of dreaming big, and believing in myself. I leaned that fear is an enemy that can prevent us taking actions and risks, and encourages procrastination. If I am to succeed, I must conquer fear and self-doubt.

What motivates and enthuses you about the business you now lead?

Leading CRC Credit Bureau is particularly motivating due to the critical role we play in Nigeria’s financial ecosystem.

We’re not just providing credit information; we’re empowering businesses and individuals with the data and insights needed to make informed financial decisions. Our work directly impacts economic growth and financial inclusion, which is immensely gratifying. Additionally, the passion and dedication of our team is inspiring; it fuels my enthusiasm every day. I’m motivated by being at the forefront of something with the capacity to improve the quality of life and shape behaviour.

What is special about your organisation’s management style?

CRC Credit Bureau is collaborative, inclusive, and entrepreneurial. We believe in empowering our team members by giving them the space to make decisions. We encourage open communication and the use of initiative across all levels of the organisation.

We foster a culture of continuous improvement and innovation, where feedback is sought and valued. One of the secrets to success is our focus on employee development. We invest heavily in training, development programmes, and mentorship to ensure our team members are equipped with the confidence, skills and knowledge they need to excel in their roles.

What are the key strengths of the team?

Their expertise, dedication, and collaborative spirit. Each member brings a unique skillset and experience. Our support team is crucial; they ensure that everything runs smoothly behind the scenes, allowing the rest of the team to focus on strategic initiatives and client engagement. The synergy between teams enhances our efficiency and effectiveness, enabling us to focus on delivering exceptional service.

What are the key traits of a good corporate leader?

They should possess vision, integrity, and empathy. Vision is essential for setting a clear direction and inspiring others. Integrity builds trust and credibility, which are fundamental for fostering a positive organisational culture and maintaining stakeholder confidence.

Empathy allows a leader to promote a supportive and motivating work environment. A good leader should be bold and courageous enough to take some risks, and lead from the front. Strong communication skills and the ability to make tough decisions are crucial.

Do those criteria change when applied to your particular industry?

While the core traits remain consistent, there are specific nuances in the credit bureau and financial services sector. In our industry, a deep understanding of regulatory requirements and compliance is paramount. Given the sensitive nature of the data we handle, an emphasis on security and privacy is essential. Leaders in our industry must be adept at navigating complex stakeholder relationships, and possess a strong analytical mindset to cultivate data-driven decision-making.


Walter Mejia, CEO of Banco Ficensa: Providing Solutions with Humility, Gratitude — and a Personal Touch

CFI.co puts the important questions to Walter Mejia, CEO of Banco Ficensa, Honduras…

Banco Ficensa, based in Tegucigalpa, started operations in 1974. It provides commercial banking services to individual consumers, small and middle market businesses and large corporations.

It has grown over the decades to have a strategic network of agencies and ATMs, a range of electronic services, strong alliances with companies like VISA and Western Union and a healthy credit portfolio.

At the helm is chief executive Walter Mejia.

[caption id="attachment_26990" align="aligncenter" width="754"] CEO: Walter Mejia[/caption]

CFI.co: What excites you about the business world in general?

Walter Mejia: The role that we, as bankers, play in the nation´s economic development. It’s a great privilege — and a great responsibility. If by our actions, we promote economic and social growth to our country, then our job is done. If we fail to bring solutions to the table, growth is negatively affected.

What lessons have you learned during your career?

I´ve been involved in the financial sector ever since I graduated from college, and it was my ambition to become a banker. Having a mentor early in one’s career is vital if we want to develop in an integral way.  I´ve always heeded sound advice from senior professionals — former bosses, my father and father-in-law, for example. One important lesson I learned early on is that surrounding yourself with talented executives is a key to success. That has become one of my management principles.

My job is not knowing more than the executives do, but knowing how to align their talent and mindsets with the goal of achieving the greatest good for our company.

What motivates and enthuses you about the business you now lead?

Mainly the fact that our daily actions as bankers are helping people and businesses to find the solutions they need. We want to provide answers. The fact that we can see the effects of our actions on a daily basis, reflected in our clients’ satisfaction, drives my passion for the sector.

What is special about your organisation’s management style? Can you share some secrets?

Our specialty, as I said, is providing solutions. We’re focused on ensuring that our clients walk out of our door satisfied that they have been heard, and that we have provided them with what they needed. This is what moves us. Client satisfaction is vital for our business — at all levels.

Don’t be surprised if a high-ranking executive from Ficensa gives you a personal call to ensure you got the services you were looking for. I might make that call myself. We take customer satisfaction very seriously, and very personally.

What are the key traits of a good corporate leader?

I consider three main ones: humility, gratitude, and the necessary discipline to get things done. If we are grateful for the business a client brings to us, and if we serve them humbly, the chances of success are high.

Do those criteria change when applied to your particular industry?

Not a bit. If we neglect any of those three principles, we may be loosing more than just a client.


UNCDF: Tanga UWASA Issues a Historic Green Bond for Water Infrastructure

The bond represents an important capital market transaction for the city of Tanga — and the whole of Tanzania,.

The Tanga Urban Water Supply and Sanitation Authority (Tanga UWASA) has issued a 10-year water infrastructure green revenue bond valued at TZS53.12bn ($19.6bn).

The bond will raise funding to expand water production, treatment, and distribution capacity from 45,000 cubic meters per day to 60,000, improving access to clean water for some 6,000 households. The proceeds will fund environmental conservation activities and protect the Zigi river and surrounds.

The Subnational Water Green Bond transaction is the first of its kind in East Africa, and aims to assist Tanga UWASA, an autonomous subnational public entity, to attract capital for infrastructure improvements and new investments.

Philip Isdor Mpango, the vice-president of the United Republic of Tanzania, thanked UNCDF for its technical and financial support.

“We’re not merely financing infrastructure and development initiatives,” said Zlatan Milisic, UN Resident Coordinator for Tanzania, “…(but) setting a global benchmark for sustainable investment vehicles.

Nicodemus Mkama, CEO of the Capital Markets and Securities Authority, said:"This innovative contract has elements that affect public institutions; it also lays a solid foundation to show how institutions and local government authorities can get project funding to finance projects with the ability to operate themselves through the capital markets.”

Peter Malika, chief technical advisor for UNCDF in Tanzania, acknowledged the support, collaboration, and guidance from the National Municipal Taskforce, comprised of members from the Ministry of Finance, Ministry of Water, Ministry of Local Government (PO-RALG), Capital Market and Securities Authority (CMSA), Dar es Salaam Stock Exchange, Bank of Tanzania, the office of the Treasury Registrar, and representatives from Zanzibar.

With the prospectus issuance and publication, the Tanga water bond is open to international and domestic investors. The Dar es Salaam stock exchange lists the Tanga water bond.

This transaction serves as a replicable model for municipalities and sub-national government entities to follow to gain access domestic capital markets and finance income-generating local projects. This avoids the need for sovereign guarantees, and reduces the national debt pressure on governments.

Financial tools like green bonds lower investment risks. A-rated third-party guarantee facilities help local and regional governments get the money they need for sustainable national development priorities. The UN Capital Development Fund, together with United Cities and Local Governments, leads the Malaga Coalition to create a financial ecosystem. The Tanga Bond is a positive example of the kind.

The Tanzanian government says the bond aligns with international standards, the government's Alternative Project Financing Strategy (APF), the Five-Year Development Plan slated to end in 2026, the Dar es Salaam Stock Exchange Green Bond Listing Rules, and the International Capital Markets Association's (ICMA) Green Bond Principles 2021 (GBP).

The government is committed to achieving this objective, including directions from President Samia Suluhu Hassan. The National Municipal Task Force is one example. The Ministry of Finance and Ministry of Local Governments chair the task force, which includes key institutions such as the central bank, capital markets regulator, Treasury registrar, and Dar es Salaam Stock Exchange.

All regulatory bodies, including the Ministry of Water, the Ministry of Finance, and the Capital Market and Securities Authority (CMSA), have approved the Tanga water bond.

In the transaction, the UN Capital Development Fund (UNCDF) played a critical role as the lead technical and financial partner to Tanga UWASA. UNCDF, with its unique investment mandate, provides capital deployment in the form of commercial and concessional capital, guarantee facilities, technical expertise, policy influence, capacity building, sensitization, awareness, and investment advisory to its government partners.

It is a demonstration of its capacities to support governments to mobilise local resources to finance sustainable development in line with national agenda and international commitments, including Agenda 2023, SDGs — Addis Ababa Action Agenda, Paris Agreement, and Africa 2043.

More information: https://www.uncdf.org/article/8664/tanga-uwasa-issues-historic-water-infrastructure-green-bond-valued-at-tzs-5312-billion


AccountAbility: Building Better Boards

Building a strong and effective board of directors can be a daunting challenge in today’s world. High-profile board failures, the rise in activist investing, and innovative market disruptions are just the tip of an iceberg highlighting the imminent need to rethink effective board governance.

Most boards often wrestle with their core mission – which is providing clear oversight and strong strategic support for management’s efforts to create long-term value for the organisation. Management and directors around the world face similar pressures on how to deliver short-term financial results and tackling an underemphasis on long-term value creation.

[caption id="attachment_27047" align="aligncenter" width="484"] Future-Focused Boards. Source: AccountAbility International, 2023[/caption]

Company Boards have long been expected to set a “tone at the top” for organisational culture, modeling company values and sound business practices. Each director, therefore, serves as a “link” in the chain between the company’s core values and its ultimate business performance. Boards can play a critical role in helping companies navigate a complex business landscape by guiding the appropriate choices in strategy, risks, and economic return.

As the mandate of the board shifts, directors must ensure that they demonstrate competencies that fit not just the present but also future needs.

The fundamental question at large is – “How do we build an effective future-focused board that is fit to confront the challenges of the 21st century?”.

1. Understand the Industry Dynamics

The challenge for independent directors is to stay fully informed about the companies on whose boards they serve, as well as the ecosystems in which the company operates. Too much time is spent reviewing company financials, plans and engaging in “check-the-box” exercises. Relatively few directors feel they have a clear and complete understanding of the industry dynamics of their companies, the ecosystems that they operate in, or, specifically, how their companies create value.

To remedy this problem, boards need to invest dedicated time to better understand the structure, dynamics, and value-creation potential of their business. Creating a forward-looking committee (or even designating a couple of board members) to focus on “what’s next” and setting time aside from Board meetings and Management discussions will enable a proactive point of view on strategic issues and help to challenge management biases and established doctrines of thought.

2. Challenge Company Strategy

Developing company strategy can become complex and multi-faceted, especially with a board’s active engagement. Armed with a foundational view, based on a clearer understanding of industry and the company’s economics, boards are better positioned to have the kinds of informed dialogue needed to improve and advance company strategy.

But the ability to have such dialogues with candor and trust depends on the board’s ability to develop a culture of constructive challenge – both, amongst members, and with senior management.

Institutionalising a culture of healthy debate and questioning can help to avoid the pitfalls of “group-think” in favor of improved scenario planning and enhanced value creation. Designating an “assigned dissenter” on a rotational basis, for example, can empower individuals to question the consensus view without fear of retaliation or retribution.

The board's perspectives and expertise can also create positive tension and influence management teams to work together to find better answers. Management needs to:

involve the board early in the development process (before the strategy is fully designed);

approach the board with multiple strategic options and implications for consideration; and,

seek input and ideas, not just approval.

Board members need to approach these discussions with an owner’s mindset and with the goal of helping management broaden its thinking by considering new – even unexpected – perspectives. If managed correctly, the process can be run very efficiently, especially if the strategic planning process with the board identifies issues early, giving the board and management time to develop robust strategic options.

3. Build Geopolitical Resilience

In a post-globalisation environment, geopolitical risks and uncertainties have assumed center stage. New powers have emerged where different countries and models of government are competing for control and influence. In this multi-polar environment, boards have a key role in building the foresight, response, and adaptation capabilities needed to navigate the changing landscape and manage future shocks.

Global business is already being shaped by the new “national security economy” and is transforming companies into unwitting geopolitical actors. Recognition of the inter-relatedness of these challenges is a first step towards instituting a more holistic decision-making approach, hiring the necessary expertise, and deploying an effective analysis of business opportunities that centers a geopolitical lens.

Boards regularly need to assess geopolitical risks through a trifocal lens - short, medium, and long term - and ensure that executive management incorporates geopolitical risks into strategic planning. Simultaneously, they must upgrade their capabilities to develop the expertise and knowledge to make informed decisions about managing geopolitical risk.

4. Think Technology

While few can challenge the importance of technology and its impact on almost every sector of the business environment - technological complexity and the speed of change can make it difficult for the board to effectively apply technology as a strategic lever of change to provide a competitive advantage. Technological transformations aren’t just about efficiencies, quality, and cost savings – they are about creating value. Boards don’t need to memorise the bits and bytes of technology but must seek a clear sense of the impact and implications of the technology transformation they seek to achieve.

Boards should not just rely on management to help them with this. It’s important that board members bring in external perspectives, as management has incentives to exploit existing technology as opposed to preparing for coming threats. Chasing every new technology opportunity is dangerous, and the situation must be approached in a balanced manner. Equally important is providing boards with a balanced set of metrics that cover the basis of speed, quality, costs, and overall impact – basically an aggregated form of ROI.

5. Rethink Roles and Composition

[caption id="attachment_27048" align="aligncenter" width="600"] AccountAbility's D.I.R.E Board Framework. Source: AccountAbility International, 2023[/caption]

When it comes to board roles, composition, and structure, organisations can exercise three key governance levers:

the disciplined enforcement of term limits

regular capacity and capability reviews

relevant training and development

Appropriate committees, such as the Nominating and Governance Committee, are expected to ensure that the board's capabilities align with the company’s evolving strategy, identify the new skills the board will require, and develop a plan to obtain them.

AccountAbility’s D.I.R.E. Framework (Diversity, Independence, Refreshment, and Expertise) can be effectively applied to assist in the composition of a balanced and effective board. Focusing on building a board that comprises a diversity of thought and perspectives (cognitive diversity), one that is committed to the company, and is experienced in a wide array of industries and business functions – can help instill the necessary capabilities to face the challenges of the future.

[caption id="attachment_27049" align="aligncenter" width="800"] AccountAbility's D.I.R.E Board Framework. Source: AccountAbility International, 2023[/caption]

6. Develop an Authentic Purpose

Today’s business leaders are often under pressure to articulate and communicate a statement of corporate purpose. Purpose isn’t about shareholder value or profit maximisation. It’s the reason why the organisation exists. Increasing stakeholder expectations and an intensifying scrutiny of corporate behavior and actions are the norm today. In this heightened environment, it is imperative for boards to engage with management to shape and articulate a clear and authentic purpose for the company’s existence.

Purpose can be a potential source of competitive advantage, but it needs to be genuine and infused in the organisation’s business model. Directors can steer the management team in sculpting and giving voice to the company’s purpose and embedding it in the organisation. The effective application of purpose can range the spectrum from a litmus test to a filter for board engagement - on governance, strategy, people, investments, risk, stakeholders, and performance management.

While every company could benefit from a purpose, not every purpose can take the form of a rallying social cause. Alternatively, defining your purpose as an embodiment of the organisation’s culture can result in being, both, authentic and effective. Improving ESG performance is critical for business - but it cannot become the purpose of the business.

Looking Ahead

Directors still continue to spend a majority of their time on Financial Reports, Risk & Compliance Reviews, and People Plans instead of strategic matters crucial to the future value and direction of the business. The board agenda of the future will need to explicitly focus on future value-generating activities and ensure that directors get sufficient time to address them.

In an environment of low trust and high expectations, there is increasing scrutiny on corporate actions further intensified by amplified stakeholder expectations. Consumers and society, as a whole, are expecting more (and different) from business. This is compounded by a pace of change that can be dizzying, and sometimes confusing.

For a majority of businesses, board governance remains a less discussed area of vulnerability, in part because it involves internal processes, systems, and controls, which in many cases are less visible to stakeholders and the broader public. Yet, there is immense potential to advance the Board agenda with a careful consideration of focus, re-balance and engaged action.

The future is now – and this may well be the moment when boards and leadership teams justify their value.

About the Authors

[caption id="attachment_27050" align="aligncenter" width="500"] Mr Sunil "Sunny" A Misser[/caption]

CEO of AccountAbility: Mr Sunil “Sunny” A Misser

Sunny Misser is the CEO of AccountAbility, a global consulting and standards firm that works with clients to innovate and advance the global sustainability/ESG agenda, by improving the practices, performance and impact of organisations.

Prior to joining AccountAbility, Sunny Misser was global managing partner of Sustainability Advisory Business at PricewaterhouseCoopers (PwC). Before that, he was global strategy Leader for PwC’s Assurance and Business Advisory Services — the firm’s accounting, risk-management, and consulting operation.

He also served as the New York Metro leader for the Governance, Risk, and Compliance practice. During his career, Misser has been a strategic business advisor to chief and senior executives and boards at Fortune 500 companies and multilateral organisations (MLOs).

Misser has extensive experience in working with global clients, developing and implementing solutions in the areas of strategy, structure, process, people, and systems. He tackles challenges such as improving the efficiency and effectiveness of global value chains, designing and implementing enterprise-wide performance improvement solutions, and managing complex business transformations.

His clients have included Abbott Laboratories, Merck, Pfizer, Bayer, Nestle, Anheuser Busch, UBS, Citigroup, ING, National Commercial Bank (NCB), Saudi Investment Bank, Credit Suisse, Saudi Arabian General Investment Authority, ConocoPhillips, Cinergy Duke, Saudi Aramco, Kodak, Seagram, Microsoft, Mobily, Walmart, Zain, National Institute of Standards and Technology, King Khalid Foundation, World Economic Forum, International Monetary Fund (IMF), and the UN.

Sunny Misser has also worked in industry operations and advanced manufacturing, with Mars Inc and Honeywell. He holds a Master of Science in Management from the famed Massachusetts Institute of Technology (MIT) – Sloan School of Management (Sloan Fellows Programme). He majored in International Business and Technology.
That MSc isn’t the only one he has earned; he has another in Industrial Engineering from Lehigh University. He also holds a Bachelor of Science in Mechanical Engineering from MS University.

Misser serves on the Dean’s Advisory Board of Lehigh University’s College of Engineering and Applied Science. He was on the advisory boards of E-Business @ MIT and for Innovation and Corporate Responsibility at MIT/Sloan. He served as an advisor on strategy and consulting at the MIT/Sloan School of Management, as well as the advisory board of Industrial and Systems Engineering at Lehigh.

During his career at PwC, Misser led the team that published the book Corporate Responsibility — Strategy, Management, and Value. He was a member of the Council on Foreign Relations, and is frequently quoted in Fortune, The Financial Times, The Economist, New York Times, New York Stock Exchange Quarterly, Forbes, Dow Jones Interactive, Capital Finance, Global Finance, and Internal Auditor’s Magazine.

Sunny Misser was honoured as the 2017 Distinguished Alumni for Excellence in Industry by Lehigh University, ISE. In 2020, he was appointed to serve on the Dean’s Advisory Council at Lehigh University.

[caption id="attachment_27051" align="aligncenter" width="500"] Mr Vincent A Forlenza, Jr[/caption]

Chariman of Moody’s Corporation: Mr Vincent A Forlenza, Jr

Vince Forlenza is the retired executive chairman of the board of directors of Becton, Dickinson and Co (BD), a global medical technology company headquartered in Franklin Lakes, New Jersey.

Serving as its CEO, Forlenza led the company’s transformation from a manufacturer of medical supplies to a “Top-Five” firm dealing in medical devices, diagnostics, and life-science.

During his 40-year career with BD, Forlenza has held global executive leadership positions in the US and Europe. He was named president of BD in January 2009, assumed additional responsibility as chief operating officer in July 2010. He became chief executive officer in October 2011, and chairman of the board in July 2012. His previous appointments include serving as senior vice-president of technology, strategy and development, presidency of BD Biosciences, and a stint as executive vice-president and president of BD Diagnostics. Forlenza retired from the chief executive’s role in January 2020, and as chair of the board in May 2021.

Vince Forlenza served as chairman of the board of directors at the Advanced Medical Technology Association (AdvaMed) from 2015 to 2017. In that role, he drove the association’s innovation agenda, collaborating with policymakers and industry partners to reinvigorate the ecosystem and promote the value of medical technology. He is the past chair of the association’s Board Committee on Technology and Regulation, and served as chair of AdvaMed’s Legal Committee.

He also served as chairman of the board for AdvaMedDx, a division of AdvaMed focused on the unique needs and issues facing diagnostics manufacturers.

Forlenza is chair of Moody’s Corporation board of directors. He chaired of The Valley Health Systems board of trustees in Ridgewood, and is currently chair of the board of trustees of Lehigh University. He is a past member of the advisory board for the PC Rossin College of Engineering and Applied Sciences at Lehigh. He now serves as advisor to the new College of Health, and is on the boards of three medical device start-ups.

He earned a Bachelor’s degree in Chemical Engineering from Lehigh University in 1975, and a Master’s in Business Administration from Wharton Graduate School at the University of Pennsylvania.

[caption id="attachment_27052" align="aligncenter" width="500"] Doctor Shiva Rajgopal[/caption]

Kester and Byrnes professor at the Columbia Business School (CBS): Doctor Shiva Rajgopal

Shiva Rajgopal is a world-renowned expert on ESG, financial reporting issues, fraud avoidance, executive compensation, corporate culture, and corporate governance.

Rajgopal has been internationally recognised for his academic excellence, and was awarded the prestigious American Accounting Association (AAA) Notable Contribution to the Literature Award — not once, but three times.

He twice won the Graham and Dodd Scroll Prize given by the Financial Analysts Journal, and the Glen McLaughlin Award for Research in Accounting Ethics — again three times. Shiva Rajgopal is passionate about bridging academic theory with policy setting and corporate practice. He writes a regular column for Forbes and has published op-eds in many major outlets. He advises think-tanks, asset-management and advisory firms, and several professional and trade associations.


The World:  Sail Into a Life of Luxury and Adventure

Imagine waking to a view of the Sydney Opera House, and a few weeks later taking breakfast on the Mediterranean before heading to South America — all without leaving your home…

Sound like a fantasy? Well, it’s reality for the well-heeled occupants of The World, the largest privately-owned residential yacht in existence.

The magnificent vessel redefines what it means to live with a blend of luxury, adventure, and community. The World was created in 2002 as a pioneering concept: to build a floating community that could circle the globe, treating its residents to views of the planet’s most exotic sights. At 644 feet long and with 165 residences, it provides a unique blend of individual ownership and social living. Residents can live permanently onboard, and over the years, The World has visited over 900 ports in 140 countries. It alters its itinerary according to owners’ preferences and global events. The concept is the very pinnacle of luxury.

Accommodation ranges from studios to three-bedroom apartments, all with high-end finishes and full amenities. Prices vary, with some “homes” costing millions of dollars. Each is customisable, allowing occupants to express their individual styles and tastes.

The ship itself is equipped with six restaurants, several bars and lounges, a full-service spa, a fitness centre, swimming pools, a golf simulator, and a tennis court. Those aboard have access to pretty much everything their hearts desire.

One couple, after spending five years on The World, say their experience has been nothing short of miraculous. "We have everything we need right here,” they enthuse. “It's like living in a five-star hotel that takes us to the most incredible places on earth."

Community and Lifestyle

Residents come from disparate backgrounds, from businesspeople and retirees to artists and adventurers. The resulting diversity creates an atmosphere like no other.

The World has a full programme of social events and activities to cater for all tastes: wine tastings, cooking workshops, lecture series and cultural events. These activities entertain, educate, and inspire.

Susan, a former business executive, says living on The World is “like being a member of an extended family. We look out for one another, celebrate milestones together, and enjoy wonderful experiences".
This is a voyage, or lifestyle, unlike any other. The itinerary is planned to strike the ideal mix between popular stop-offs and lesser known and exotic locations. Residents can vote on destinations, making each trip a team effort.

The ship stays in each port for extended periods, allowing occupants to immerse themselves in local cultures. From the busy marketplaces of Marrakech to the pristine beaches of the Maldives, The World provides richness and diversity never seen before.

Shore excursions are one of the hallmarks of the cruises. Private trips, cultural immersions and adventurous activities form bespoke experiences. On a recent visit to Antarctica, travellers were able to take part in a trip usually limited to scientists and naturalists.

Investment Perspectives

Owning your part of The World takes a considerable financial commitment; prices start at about $2m, rising to $15 million for larger berths. In addition to the purchase price, residents must pay annual maintenance fees to cover running expenses.

Living on The World could be compared to residing in luxury real estate. While the initial and ongoing costs are significant, the unique lifestyle is difficult to quantify.

Demand for homes on The World remains high, and the resale market is healthy. Many owners see their property as an asset that will appreciate over time. Financial advisors have equated it to owning a vacation home — without being stuck in one place.

Social Responsibility

The giant ship uses cutting-edge technology: energy-efficient systems, trash-management protocols, and plastic-reduction. Fuel economy is maximised.

Beyond environmental sustainability, the unusual vessel allows residents to participate in philanthropic projects and community involvement. There is support for local schools and healthcare institutions and contributions to environmental conservation. These enrich the residents' experience — and no doubt reduce the “guilt factor”.

Challenges and Considerations

While the lifestyle is clearly appealing, it is not all plain sailing. First there is the cost; also, living in a floating, but insular, society necessitates a degree of adaptability and social openness.

Some residents find the continual travel and shifting of locations might be confusing, but those who love adventure and variety will be happy.

The World provides an unparalleled lifestyle for those who can afford it, and represents an ideal way to see the world — dynamic, fascinating, and infinitely rewarding. As the concept of residential cruising evolves, The World remains a tribute to human inventiveness — and the undying truth that money can, perhaps, buy you happiness.


Innovating Healthcare: The Journey of GKSD Investment Holding Under a Watchful Eye

Group president Kamel Ghribi’s passion for excellence and industriousness has transformed the sector.

Kamel Ghribi, president of GKSD Investment Holding and vice-president of Gruppo San Donato, is a bridge builder.

[caption id="attachment_27062" align="aligncenter" width="900"] President: Kamel Ghribi[/caption]

The executive has seamlessly merged the realms of finance and healthcare. His organisation has pioneered medical advances and expanded its reach across Europe and the Middle East. Ghribi’s remarkable ability to foresee the convergence of these sectors positions him as a trailblazer.

But Ghribi’s vision goes beyond mere business expansion. It’s about transforming healthcare delivery via strategic investments and innovative solutions. By integrating leading-edge technologies such as AI and big-data analytics with traditional healthcare practices, he set new benchmarks in patient care and operational efficiency.

“The integration of artificial intelligence and big-data analytics into traditional healthcare practices is not just a trend,” the group president notes. “It’s the future.”

Kamel Ghribi’s story is one of vision, innovation — and the relentless pursuit of excellence. His journey began in Sfax, Tunisia, where the seeds of his entrepreneurial spirit were sown — and nurtured. Growing up in a family that valued hard work and integrity, Ghribi was profoundly influenced by family. His father, the owner of a successful small business, and his mother, who instilled in him the importance of diligence and perseverance, played crucial roles in shaping his personal and professional character.

From an early age, Kamel was encouraged to spend his free time constructively, often assisting in his father's business. This early exposure to the world of commerce laid a solid foundation for his future endeavours.

The vibrant and industrious environment of Sfax also contributed something to those formative years. The city, known for its bustling trade and commerce sectors, provided a dynamic backdrop for a young mind eager to learn and grow. His education broadened his horizons, equipping him with the knowledge and skills needed to navigate the complexities of the business world.

Ghribi’s early experiences in Sfax instilled a strong work ethic in him, and fuelled his ambition to create a lasting impact on the world.

Professional Realm

This professional arc is marked by a series of strategic moves that showcase a remarkable ability to navigate challenges and excel in diverse areas. After completing his education, he entered the oil industry as a trader, where he quickly ascended to leadership positions. His early career in oil trading was characterised by a keen sense of timing, and the ability to effectively leverage his network. These experiences honed his skills in negotiation, strategic planning, and management, laying the groundwork for his future ventures.

In the mid-1990s, equipped with his already extensive experience and a robust network, Ghribi took a bold step by founding GKSD Investment Holding. He says his vision for organisation was clear: to create a diversified investment holding company that could excel across various sectors, including healthcare, real estate, engineering, and energy. Under his leadership, GKSD has grown into a powerhouse renowned for its strategic partnerships — and its ability to deliver comprehensive solutions to private- and public-sector clients.

Ghribi’s role as VP of Gruppo San Donato (GSD), Italy’s largest private healthcare group, exemplifies his strategic acumen. He was instrumental in expanding the group’s reach and enhancing its capabilities. His leadership has been pivotal in integrating advanced technologies and innovative practices into GSD’s operations, ensuring the group’s position at the forefront of healthcare delivery and medical research.

GKSD Investment Holding

The establishment of GKSD Investment Holding marked a significant milestone in Kamel Ghribi’s career. Founded with the commitment to drive innovation and excellence, GKSD emerged as a leader in delivering turn-key solutions across a range of sectors. Ghribi’s strategic foresight has been the driving force behind the company’s success. He envisioned the creation of more than just an investment company, and succeeded in his aims. It is a platform for innovation, growth, and transformation.

One of the things that set GKSD apart from the pack is its comprehensive approach to project management and consultancy. The company’s diverse portfolio includes acute-care teaching hospitals, healthcare advisory services, real estate development, and energy efficiency projects. “By forging strategic alliances with prestigious institutions and leveraging its in-house capabilities in design, engineering, and construction,” he says, “GKSD has consistently delivered sustainable solutions to meet the evolving needs of our clients.”

GKSD has expanded in terms of its geographical footprint as well as the scope of its services. The company’s impact is particularly evident in healthcare, where it has played a pivotal role in enhancing the quality and accessibility of services. Projects like the IRCCS Galeazzi San’Ambrogio Hospital in Milan exemplify GKSD’s commitment to excellence. Developed using environmentally efficient materials and pioneering design, the state-of-the-art facility stands as a benchmark for modern healthcare infrastructure.

Leadership at Gruppo San Donato

Kamel Ghribi’s role at Gruppo San Donato has been instrumental in transforming the organisation into a global leader. GSD is now Italy’s largest private healthcare group, specialising in acute care, medical education, and research. Under Ghribi’s leadership, GSD has continually expanded its operations, enhancing its service offerings, and established itself as a pioneer in the industry.

“Leadership is not just about achieving success,” he says. “It’s about creating a lasting impact that transcends individual accomplishments.”

One of the key contributions Ghribi made to GSD is his emphasis on integrating cutting-edge technologies into healthcare practices. By leveraging advancements in AI, big-data analytics, telemedicine and digital health solutions, GSD has improved patient care, diagnostics, and treatment outcomes. This technological integration has enhanced the quality of healthcare services, and increased operational efficiency.

But Kamel Ghribi’s vision for GSD extended beyond Italy. He played a crucial role in expanding GSD’s reach to international markets, particularly in Europe and the Middle East. Through strategic acquisitions, such as the American Heart of Poland and Scanmed, GSD strengthened its position in the field. In Italy, a partnership with Generali Insurance resulted in a network of 70 smart clinics all over the country to allow easy access to all.

These expansions allowed GSD to offer its world-class healthcare services to a broader audience, improving global healthcare standards. A three-pillar strategy of having healthcare supported by education and research has made the group one of the strongest in the sector.

Strategic Expansions

Under Kamel Ghribi’s leadership, both GKSD Investment Holding and Gruppo San Donato have embarked on innovative projects and strategic expansions that highlight a commitment to excellence and innovation.

One of the most notable projects is the IRCCS Galeazzi San’Ambrogio Hospital in Milan. This state-of-the-art facility, developed by GKSD Engineering and GKSD Edile, stands as a testament to professionalism and creativity in modern healthcare infrastructure. Designed with energy efficiency and sustainability in mind, the hospital showcases the best solutions in terms of design, engineering, and construction.

Ghribi’s strategic vision now extends to the Middle East, notably Iraq, where GKSD has concessions to manage government hospitals. These projects are part of broader efforts to enhance healthcare capabilities in emerging markets. By providing advisory and consulting services, GKSD is helping to build robust infrastructure and improve healthcare delivery in these regions.

GKSD’s involvement in humanitarian initiatives, such as training programmes for doctors from emerging economies, underscores the group president’s commitment to social responsibility and global healthcare.

Challenges and Strategies

Managing a large healthcare organisation such as Gruppo San Donato presents unique challenges, which Kamel Ghribi has adeptly navigated with a forward-thinking approach. One of the primary hurdles is ensuring the delivery of high-quality patient care while maintaining operational efficiency.

This entails optimising resource allocation, streamlining processes, and fostering a culture of continuous improvement.

To address this, Kamel Ghribi has implemented several key strategies. He prioritises patient-centric care by investing in state-of-the-art medical technologies and providing ongoing training and professional development for staff. This ensures that GSD retains its leading position in the field of medical advances, consistently providing exceptional services.

Collaboration and teamwork are central to Ghribi’s leadership philosophy. He fosters a supportive working environment where innovation and the sharing of best practices are encouraged. This collaborative approach helps to overcome operational challenges and drives the organisation towards its strategic goals. By emphasising the importance of teamwork and continual improvement, Ghribi has ensured that GSD remains adaptable and resilient in the face of evolving healthcare dynamics. “Balancing high-quality patient care with operational efficiency is our key strategy,” he says.

Ghribi highlights the importance of having a genuine passion for creating a positive impact. This motivates GKSD staff to “go the extra mile” and make meaningful contributions in their fields of expertise. By combining a solid educational background with key personal qualities and a commitment to making a difference, aspiring leaders can follow his example to position themselves for success — and create lasting value.


Mexico’s First Woman President is Rock Steady

Claudia Sheinbaum Pardo’s ascent from academia to the National Palace is anything but flash-in-the-pan.

When Claudia Sheinbaum Pardo assumes high office as President of Mexico on October 1, she will be the first woman to take on the role.

[caption id="attachment_27066" align="aligncenter" width="900"] Tlatizapan de Zapata, Morelos, Mexico: President-elect Claudia Sheinbaum Pardo and current President Andres Manuel Lopez Obrador[/caption]

She was elected in June, her ascent reflecting Mexico's changing political, environmental and social terrain. Sheinbaum, a scientist, environmentalist and senior political figure, has crossed the gap between academia and public administration. She’s expected to bring a data-driven, technocratic approach to bear on her nation’s challenges.

Claudia Sheinbaum Pardo was born in Mexico City on June 24, 1962. The sprawling metropolis has acted as both backdrop and stage for much of her life. She grew up in an intellectually stimulating environment. Her father, Carlos Sheinbaum Yoselevitz, was an engineer; her mother, Annie Pardo Cemo, a biologist. The household atmosphere, rich in scientific and technical discourse, had a great impact on the young Sheinbaum.

Her Jewish upbringing also helped shape her world views. While not overtly religious, her family's cultural and ethical ideals instilled in her a sense of social responsibility and a dedication to justice. Those principles serve as the foundation for her political philosophy.

Sheinbaum attended the prestigious National Autonomous University of Mexico (UNAM), which has produced many of the country’s intellectual and political luminaries. She chose to study physics — an unusual decision at the time for a woman in Mexico, but one that underscored her academic drive and fascination with science.

Bridging Science and Public Policy

Sheinbaum went on to earn a Master's and a PhD in Energy Engineering. Her focus was on energy efficiency and sustainable technology, both of which were receiving global attention as climate change and environmental degradation became prominent.

Sheinbaum's academic work was distinguished by an emphasis on the practical implications of her study. She wasn’t satisfied with the theoretical limits of academia; she aimed to apply her findings to real-world situations.

This prompted her to work with international organisations, most notably the Intergovernmental Panel on Climate Change (IPCC). Her contributions were recognised when the team she was part of (along with Al Gore) received the Nobel Peace Prize in 2007.

Throughout her academic career, Sheinbaum focused on subjects that were scientifically and socially meaningful. For her, renewable energy and energy conservation were inextricably linked to the larger issues of social fairness and environmental justice: the keys to her political platform.

Environmental Advocacy

Sheinbaum's move from academia to public service was motivated by her awareness that science-led policy was needed to combat Mexico's environmental issues. In the late 1990s, she became more involved in advocacy, arguing for laws to tackle the country's dismal air quality and encourage sustainable urban development.

Sitting president Andrés Manuel López Obrador, Mexico City's mayor at the time, quickly became aware of her expertise in the energy and environmental fields. In 2000, AMLO, as López Obrador is commonly known, selected her to be Mexico City's Secretary of the Environment. She oversaw some ambitious projects, including the expansion of eco-friendly transport.

The rapid-transit Metrobus system provided an efficient and sustainable alternative to the outdated public transport infrastructure of the day. It served as a model for other cities, in Mexico and abroad. Its success highlighted Sheinbaum's ability to turn science into meaningful public policy — and established her as an innovative leader.

She incorporated her dedication to social equity in her role as Secretary of the Environment, aware that disadvantaged people often suffer most from environmental problems. Her programmes addressed social disparity as well as environmental outcomes. This was consistent with López Obrador's own emphasis on social justice and inclusion.

Political Ascent

Sheinbaum's political career took off. In 2015, she was elected Head of Government for Tlalpan, Mexico City's largest borough. Over 80 percent of Tlalpan is under conservation as an ecologically sensitive area; the northern edge has been urban since the mid-20th Century. The post allowed her to hone her leadership skills and implement initiatives at a local level.

During her time in Tlalpan, Sheinbaum prioritised public safety, education, and urban development. She was committed to transparency and accountability in local government, and implemented measures to combat corruption and improve public service delivery. Her tenure was not without its obstacles, including the aftermath of the 2017 earthquake in Puebla, to the south of Mexico City. Her handling of that crisis, providing immediate relief as well as long-term recovery plans, was widely praised, although some criticised it.

Sheinbaum hit a new high in 2018 when she was elected mayor of Mexico City — another first for a woman. Her election was viewed as a huge success for López Obrador's National Regeneration Movement (MORENA) party, with which she has been closely associated throughout her political career.

Being mayor of Mexico City is a daunting task; it’s one of the world's largest and most complex metropolises. With a population of more than nine million, it battles severe air pollution and traffic congestion, crime, and glaring social disparities. Sheinbaum took the role in her stride, remaining true to her values of sustainability and social justice. She campaigned for policies addressing social inequality, education, and healthcare access in the city's poorest neighbourhoods.

She adopted a comprehensive plan to lower the carbon footprint of the city and improve its air quality. The strategy included improvements to public transit, the enhanced use of renewable energy, and the promotion of energy efficiency in buildings and industries.

Tricky Balancing Act

Claudia Sheinbaum's leadership style is generally described as technocratic, reflecting her scientific background and inclination to data-driven decision-making. This emphasis on evidence-based policymaking and dedication to transparency has earned her accolades — and created some tension in a highly charged political atmosphere. Navigating this required political acumen as well as technical competence.

Sheinbaum has had to strike compromises to form coalitions and manage sometimes conflicting demands. This balancing act has been most visible in her handling of problems of public safety, reconciling the need for strict law enforcement with concerns about human rights and social fairness.

Her close relationship with López Obrador, affectionately known as AMLO, has influenced her career. Their shared commitment to social fairness and environmental issues has been a source of strength — and a target for attack from the opposition. Sheinbaum has distinguished herself by maintaining her principles and leadership identity.

Challenges and Criticism

Claudia Sheinbaum, like any leader, has seen her share of trials and tribulations. She was criticised for her handling of the Covid-19 pandemic, which hit the city hard. As mayor, she was in charge of co-ordinating a reaction, managing healthcare resources and assisting economic recovery efforts. Lockdowns were part of the strategy, and had a negative economic impact, particularly on small enterprises and informal workers.

Sheinbaum's approach was seen as aggressive, especially in the early stages of the crisis. The lockdowns were unpopular, and balancing public health concerns with the need to sustain the economy was a sensitive undertaking. Sheinbaum’s decisions came in for some close scrutiny.

Another bone of contention has been public security. Mexico City has high rates of crime and violence, and Sheinbaum increased police presence and enhanced communication across levels of law enforcement — but progress has been slow. Critics say her administration failed to address the underlying causes of crime, such as poverty and lack of opportunities. Others advocate for yet more muscular law enforcement measures.

Looking Ahead

Claudia Sheinbaum’s legacy has begun to take shape. Her approach to sustainability, social justice, the environment and governance reveals a leader who prioritises long-term, systemic change. Her scientific background, technocratic approach and dedication to social equality are consistent aspects of her political identity. Sheinbaum's ability to govern while remaining focused on evidence-based decision-making is a virtue in a world in which sustainability, social inequality and economic progress are increasingly linked.

Claudia Sheinbaum Pardo's path has been one of consistent advance, from the lecture halls of UNAM to the mayor's office and now the National Palace. Her career exemplifies the emerging trend of incorporating scientific expertise into politics. Her story is one of resilience, inventiveness, and dedication to taking on the most serious issues of our time.

Her work at the helm of the country will be an intriguing intersection of science, policy, and governance — and the world will watch with interest.

Read more here from the CFI.co Summer 2024 Issue.


Accenture: The Evolving Role of CEOs in Mitigating Cybersecurity Threats

In 2023, a complex, fragmented global geopolitical backdrop prompted a boost in the cybersecurity economy.

[caption id="attachment_27074" align="aligncenter" width="900"] By Ahmed Etman MD and Cybersecurity Lead for Accenture Middle East[/caption]

It was propelled by the persistent threat of cyberattacks and a unanimous imperative to meet data-governance standards. This opened the divide between cyber-resilient businesses and those struggling to keep pace. This disparity was primarily driven by macro-economic trends and businesses’ varying capabilities in the adoption of transformative technologies.

The global cost of online criminal acts is expected to surge to $23.84tn by 2027. As it becomes a critical concern across the Middle East, the UAE and Saudi Arabia are investing heavily in infrastructure to combat threats. The UAE thwarted more than 50,000 daily cyberattacks in 2023 — and the country’s National Cybersecurity Strategy aims to upskill 40,000 professionals across all sectors. Saudi Arabia ranked second in the Global Cybersecurity Index in 2023.

Chief executives across the region are increasingly aware of how the global economy needs protection. As cyberthreats evolve in complexity and scale, it has become critical for CEOs to safeguard their organisations.

In 2023, Accenture's survey of 1,000 CEOs across 15 countries — representing 19 industries and organizations with revenues exceeding $1bn — provides insights into how CEOs navigate the challenges.

Chief executives today are acutely aware of the potential threats, identifying cybersecurity as a key business enabler. This sentiment is higher in the UAE (98 percent) and Saudi Arabia (100 percent) than in other countries. But only 33 percent of global CEOs expressed a deep knowledge of evolving cyberthreats. This figure drops to 23 percent in the UAE and 30 percent in Saudi Arabia, indicating a substantial gap between perception and understanding.

The survey identified several disruptive forces. Tech innovation tops the list, with 52 percent of CEOs ranking it as the highest risk. Emerging technologies such as generative and quantum computing are viewed as highly relevant by 86 percent of CEOs.

Supply chain disruptions also pose a significant risk, with 51 percent of CEOs ranking it the second-highest external threat. Environmental vulnerabilities are of concern, with 90 percent of respondents acknowledging the link between fluctuations and cyber-risk.

Despite recognising the importance of cybersecurity, many CEOs adopt a reactive rather than proactive approach. Sixty percent admit that cybersecurity is not integrated into business strategies, services, or products. In the UAE and Saudi Arabia, this figure is 55 percent and 57 percent, respectively. And 44 percent of CEOs view cybersecurity as an episodic, technical issue rather than an ongoing strategic concern — with just 11 percent in the UAE and 37 percent in Saudi Arabia sharing this view.

A reactive mindset results in greater risks and higher costs. Fifty-four percent of CEOs believe that the cost of implementing cybersecurity measures is higher than that of an attack, with significant variations across regions (31 percent in the UAE and 44 percent in Saudi Arabia). This perception underscores the need for a strategic shift.

Compliance drives the cybersecurity strategy for 95 percent of CEOs. While this compliance-driven approach is necessary, it is insufficient to achieve effective protection and resilience.

Amid these challenges, a small group of CEOs — five percent of respondents — stand out as leaders. These valiant few detect, contain, and remediate threats, with breach costs lower than their counterparts. They adopt a holistic view, considering sustainability, talent, technology innovation, and customer engagement.

Cyber-resilient CEOs consistently surpass their counterparts in generating value. Analysis identifies five key actions that leaders consistently take:

1. Embed cyber resilience into business strategies
Cyber-resilient CEOs outperform laggards by 41 percent. To use cybersecurity as a strategic enabler, senior executives consistently link cyber performance to executive outcomes, reducing organisational complexity.

2. Establish shared cybersecurity accountability
Cybersecurity-focused leaders foster a culture of shared accountability. They nurture security talent, and adopt cybersecurity-as-a-service (CaaS) models.

3. Bolster the fundamental elements
Outperforming others by 27 percent, cyber-resilient CEOs prioritise security via a multifaceted approach throughout the lifecycle of a project, from design to deployment and beyond, championing a zero-trust approach.

4. Expand cyber resilience beyond the business
Collaboration with strategic partners and regulators is a key tactic to effectively mitigate potential threats and enhance organisational resilience by strengthening stakeholder relationships.

5. Enable continuous resilience
By adopting ongoing cyber resilience practices, CEOs outperformed others by 39 percent. This approach includes constantly redefining risk profiles and proactively seeking independent reviews. Cyber-resilient leaders harness AI technologies with the UAE National Strategy for a focus on cybersecurity. The strategy also focuses on integrating AI into protection strategies

The research emphasises the critical role that CEOs have to play. As cyberthreats evolve, confident and knowledgeable senior executives will be critical to reducing the cyber-resilience gap.


‘Deep-Tech’ Founders-Turned-Investors Forge VC Powerhouse

‘We’re building the VC firm we wish we’d had as technical founders’.

UK early-stage deep-tech VC firm SCVC focuses on tech start-ups coming from the UK's world-leading academic institutions.

Deep tech is a sector providing solutions to scientific or engineering challenges. The SCVC mission is to create global impact for people and planet, leveraging its expertise – and it has recently partnered with John Williams.

SCVC is the official venture arm of Science Creates, and Williams is best known for co-founding UK-Japanese billion-dollar tech company Kudan. It paved the way for augmented reality (AR) – and achieved unicorn status at its 2018 Tokyo IPO.

Williams will work alongside Harry Destecroix, SCVC’s managing partner and the founder of Ziylo, which topped the rankings of deep tech acquisitions when it was picked up by Novo Nordisk for up to $800m for its smart insulin technology.

SCVC focuses on deep-tech spin-outs: science and engineering discoveries that transition from research institutions into start-ups capable of delivering global impacts for healthcare and sustainability.

With Williams on the team, SCVC is poised to become the UK’s foremost early-stage, deep-tech investor. It backs some of the country’s most promising quantum and biotech newcomers, including Delta g, Scarlet Therapeutics, and Forefront RF. Last year, it announced the first close of its second deep-tech fund that had a $100m target.

SCVC’s foundations are similar to the founder-led VCs of Silicon Valley, such as a16z and Founders Fund, started by PayPal pioneer Peter Thiel and Netscape founder Marc Andreessen respectively.

Research shows that exited founder-led-VCs have higher success rates for investment than other VC categories. And successful founder-led VCs in Europe are rare. Only eight percent are said to have the relevant experience. This contrasts with the US, where the majority of VCs – 60 percent – previously operated a start-up.

There’s a significant difference between working in a start-up, founding one, and founding and exiting one that returns money to investors. The majority of start-ups aren't built off a decade of advanced research, and most of the risk is technical, rather than market-related.

“The partnership of two exited founders in a UK company is rare,” said Williams, “but what is even more unusual – and, in our opinion, essential for any successful deep-tech VC – is that the partners themselves are original inventors of the technologies.

“At SCVC, we leverage our backgrounds to really understand the technology in its pure state, and work to identify the product that best leverages the technology’s strengths before even considering the market.

“This technology product-fit model is unique to SCVC.”

Williams believes there is an enormous opportunity afoot. While the UK has some of the best research in the world, it has just half the patenting rate, per capita, of the US – despite a higher publication rate. “This is compounded by a lower commercialisation rate,” he said, “demonstrating that most of our UK deep-tech opportunities are still trapped within academia.

“Because of this, we don’t have a zero-sum game mentality. We’re barely scratching the surface of how many more start-ups we could be making, and how much more investment is needed. The capital and investor base is rate-limiting. We believe in collaboration, and want to actively work with VCs of all backgrounds.”

Major scientific breakthroughs at universities can be problematic because research is often conducted in isolation without considering a commercial fit. “It’s presented as a hard-to-understand technology with no real context, or worse, chasing a popular, but inappropriate market.”

It’s sad to see great technology die, either stuck in a university or in a start-up where it never really had a chance, laments Williams. “Too many VCs will wait until a later stage to provide capital, where there is more of a business plan and some traction that’s easier to analyse.

“But many don’t make it that far, or they alter the company’s strategy to bait investors into believing it addresses current hype.” That’s why it’s advantageous for a VC with a technical-founder background, he says. “They’ve lived and breathed the challenges of turning an idea into reality.

“It’s an untapped opportunity in the UK, so we encourage more founders to enter the VC space. As well as exited founders, it is also important to have more people with STEM backgrounds in VC. This is particularly true in deep tech, where the technological risk typically outweighs the market risk. ”

Williams, Destecroix and the SCVC team have expertise in biotech, quantum, semiconductors and AI – the key areas that the UK government has identified in its strategy to unleash the country’s full potential as a “science and technology superpower”.
Destecroix says the fund has a unique investment thesis: “Deep-tech start-ups are society's most effective economic vehicle to deliver innovation and global impact for the health of people and the health of our planet.

“In case you missed it, the Fourth Industrial Revolution is already here. This is powered not by a single breakthrough technology, but by the combinations of several at the right moment.”

This is thanks to the convergence of biotech, quantum and AI research, he says. “Biology and quantum-sensing are the biggest untapped data sources in the world, and recent advances in AI are beginning to unlock this massive potential.

“John was a visionary in AI and sensing, and our thesis has naturally grown out of hundreds of hours of discussions where we’ve crossed over into each other’s areas of expertise.”

John Williams left school at 17 to grow tech firm Kudan with veteran Japanese businessman and friend Tomo Ohno. The goal was to continually push the state-of-the-art tech and capture the era’s most successful apps.

As AR became more mainstream, the company repurposed its core technology to create “artificial perception”, AI that allows self-driving cars, robots and drones to “understand” the world around them. It set Kudan up for its IPO on the Tokyo Stock Exchange; the first trading day resulted in the price soaring three-fold without a share being traded, exceeding its billion-dollar valuation.

Harry Destecroix was the founder of Science Creates, the ecosystem that pairs venture funding with deep-tech incubators and start-up accelerator programmes. The project was backed by government funding from UKRI and a charity which trains young tech entrepreneurs. He says Science Creates came “out of necessity” when Ziylo couldn’t find lab space to rent in Bristol.

Destecroix is an expert in deep-tech spinouts, and an adviser to the UK government. His Science Creates generates an annual GVA of more than £125m, and has supported some 100 start-ups. It is also home to UKRI’s national engineering biology accelerator programme.

Science Creates now has 26 full-time staff members – and SCVC is reckoned to be one of the most well-resourced early-stage deep-tech VCs for spin-outs in Europe.


Exploring Business Opportunities in Mexico: The Landscape of Potential

The country has long been recognised for its economic promise across sectors.

With its strategic geographic position, diverse economy and burgeoning middle class, Mexico makes an appealing destination for expansion and regional investment.

[caption id="attachment_27081" align="aligncenter" width="900"] Mexico City: Palace of Fine Arts and the Latin American Tower[/caption]

There are fundamental issues and elements driving business prospects, with an overall economic climate that has definite appeal. One of Mexico's most significant assets is its location, connecting North and South America. This alone establishes it as a vital trade hub, particularly with the United States, its main trading partner. The US-Mexico-Canada Agreement (USMCA), implemented in 2020, has strengthened Mexico's position with a framework to maintain stability and lower trade barriers.

The country's vast road network, modern ports and airports allow for effective logistics and supply chain management. Free-trade agreements with 50 nations optimise Mexico's status as a manufacturing and export base with access to global markets.

Manufacturing and Industrial Growth

Mexico's manufacturing industry is one of the most robust in Latin America, thanks to reasonable labour prices, a competent workforce, and a long history of industrial output. The automotive industry stands out as a vital component of the national economy. Mexico is the world's seventh-largest vehicle producer and fourth-largest exporter. Corporations including General Motors, Ford and Volkswagen own major operations in the country.

Another rapidly expanding sector is the aerospace industry. Mexico has emerged as a surprise destination, with companies such as Bombardier, Safran, and Honeywell establishing local plants. The sector benefits from Mexico's impressive engineering skills, low costs, and growing ecosystem of suppliers and service providers.

The country’s electronics and appliance manufacturing industries are also expanding; it’s a major producer of flat-screen televisions, smartphones and home appliances, with global businesses including Samsung, LG and Panasonic firmly established.

Energy and Renewable Resources

The energy sector has promise in renewables. Mexico's location again stands it in good stead, with solar, wind, and geothermal energy on tap. The government's aim to lower greenhouse gas emissions and shift to cleaner energy sources has attracted major investment.

Solar, in particular, has experienced remarkable growth. Sunny Mexico's potential is among the highest in the world, especially in the north. Reforms have prompted private investment in solar projects, and multinational businesses are setting up large-scale solar “farms”.

Literally putting wind in the sails of clean energy is the Isthmus of Tehuantepec, in the south of the country. It is one of the most promising areas for wind power generation.

The government's high renewable energy targets, combined with growing foreign interest, indicate expansion and significant opportunities.

Technology and Innovation

Mexico's tech sector is becoming a major Latin American player, with a thriving ecosystem of start-ups and innovation centres. Mexico City, Guadalajara, and Monterrey have emerged as tech hubs, attracting global talent and investment.

The country's youthful population — median age 29 — represents a significant market for digital services and products. The broad use of smartphones and good internet access is fuelling demand for e-commerce, fintech, and digital services. Fintech, in particular, has seen rapid expansion; Mexico hosts more businesses than anywhere else in Latin America. These companies are capitalising on the country's underbanked population by providing financial services that meet the demands of individuals and enterprises.

Mexico's strong manufacturing base has fuelled growth in Industry 4.0 technologies, such as automation, AI, and the Internet of Things. Companies operating in these sectors have the potential to deliver productivity and efficiency solutions.

Consumer Market

Mexico's growing middle class and urbanisation tendencies have created a thriving consumer base. The country's population — more than 130 million people — includes a growing proportion of young, digitally savvy customers. The retail sector is diverse and vibrant, combining traditional markets with modern models. International merchants including Walmart, Amazon and Carrefour have set up in the country, while local chains continue to grow. E-commerce is on a roll, fuelled by reliable internet access and shifting customer behaviours. The pandemic increased online purchases worldwide, and that is true for Mexico, too.

Opportunities exist in the food and beverages sector and fashion, where rising disposable incomes and changing lifestyles drive demand. Companies that can adapt to local tastes and preferences, while exploiting digital platforms, will have a competitive edge.

Room to Roam — and Settle

Mexico has enormous potential in the real estate and infrastructure sectors. Urbanisation, population growth and rising demand for housing and commercial space drive development. Mexico City, Monterrey and Guadalajara are among the centres witnessing growth, with significant investment in residential, commercial, and industrial properties.

The government's emphasis on infrastructure development creates opportunity for construction, engineering, and related services. Projects are varied and vast: new highways and railways mean constant demand for construction materials, equipment, and professional expertise.

Navigating Opportunities

Mexico’s broad and dynamic business landscape has potential in so many sectors, and its strategic location, competitive labour market and robust trade agreements form a solid platform for investment.

However, managing the Mexican market necessitates an awareness of the local business environment, legal structure, and cultural peculiarities. Political and economic stability, while generally favourable, can fluctuate, and incoming firms must be ready and able to adjust to sometimes fluid situations.

For corporations and investors, Mexico's promise is evident. The key is to discover the right opportunities, form local alliances, and leverage strategic advantages to generate long-term value. As the country evolves, it retains its appeal for businesses seeking to capitalise on its vitality.