Cooperation in a Fragmented World - 3 Takeaways from the WEF’s 2023 Annual Meeting in Davos

A few days in Davos and you come home with a bucket full of ideas and possibilities. The WEF Annual Meeting 2023 was the biggest in its history, which may surprise many sceptics. And here they are - my personal key-take-aways from the 'magic mountain':

Tackling Global Risks - Playing Defense or Offense?

Multiple disruptions (Covid, War in Ukraine, energy used as a weapon, inflation, etc.) hit our fragile ecosystems and stressed networks. They are manifestations of systemic deficiencies and results of a narrow vision of systems as sectors rather than true multidisciplinary, networked entities that are highly dynamic, particularly in the context of the digital (fourth industrial) revolution and climate change.

The WEF Global Risks Report 2023 ranks the cost of living crisis as the greatest global risk in the short term, i.e. in a time frame of 2 years. This picture changes when looking at a long-term time horizon, i.e. 10 years, then failure to mitigate climate change and climate adaptation are the biggest concerns for humanity. Cybercrime and cybersecurity rank 8th as the only technological risk in both the short and medium term, however I would like to add the responsible 'production' and use of emerging technologies such as artificial intelligence and machine learning, blockchain, virtual reality and quantum computing governance (see also new WEF Centre for Trustworthy Technology?in Austin/Texas).

Talking in Davos to old and new faces about current developments also shows the opportunities in the current upheavals. It will not be easy, but I am confident that together we can find ways for a sustainable and resilient future. To transform the potential ‘decade of uncertainty’ and fragility into a ‘decade of action’, we need to develop a longer-term perspective, a strategy for resilient growth that encompasses building resilience and new sustainable innovation muscles for tomorrow.

To achieve this, we need low-ego high-impact leadership.

Strengthening Resilience for a Sustainable, Inclusive Future

We must strengthen the resilience of our societies and institutions beyond a survival capacity, to enable long-term, sustainable and inclusive growth Societies, institutions, and companies need to prepare for the unexpected, build strategic options, and strengthen their capability to proactively shape the future instead of solely responding to it.

As the top risks in front of us are all systemic and interconnected, they neither can be tackled in a reactive manner nor with isolated, short-term focus on a discrete recovery from every crisis. Resources on the world are just not enough. In an increasingly fragmented world, joining forces to solve today’s biggest challenges that don’t respect borders is the New Normal. In Davos, the futur/io network launched 'Before this Decade is Out' book to inspire actions on all levels, in which I had the pleasure to contribute a chapter.

Collective intelligence replaces group thinking, e.g. in the WEF Global Collaboration Village, the first global, purpose-driven Metaverse platform. De-Globalization or Re-Globalization? Globalization in the new sense means diversification rather than decoupling, as no region is even close to being self-sufficient. And the greatest challenges require sustainable joint action by the private and public sectors.

Partnership is the New Leadership. Common standards, competition and trade are key to speed-up net zero transition, when building an eco system in which everyone prospers. Which new group of stakeholders must be at your table in the future? e.g. Social Suppliers and Partners?

To transform the potential decade of uncertainty and fragility into a 'decade of action', we need to develop a longer-term perspective, a strategy for resilient growth that encompasses building resilience and new innovation muscles for tomorrow.?

Innovation-led Transformation - From Regulation Push to Customer Pull

Instead of over-regulation, we need to encourage new ideas and accelerate innovation through sustainable offerings focused on next use. 80% of the carbon footprint is set in the design phase. Sustainable products that are perceived as cool and unique not only drive adoption, but also change.

At the same time, digital technology has matured to the point where it can serve as a force multiplier for social impact. Many executives still view sustainability and technology as separate priorities and even opposing goals. The opposite is true, as the interplay between digitalization and sustainability opens up brilliant opportunities to create a greener economy and society.

Creating the conditions for innovation-led transformation involves 2 elements: Diversity of thoughts and serendipity in encounters to connect the dots in novel ways (something you can truly find in Davos; one of the very few things the home office cannot deliver unfortunately)

< trans:form > means beyond norm and breaking with the traditional form, which works by definition against the status quo.?Behavioral change is the bottleneck. We are convenient. People will not change due to KPIs, they change because they are inspired, fascinated, touched...

The economy of tomorrow, which is already emerging, needs new skills, particularly in the fields of new technologies, data and the energy transition. Responsible business education should become standard, dedicated e.g. to reverse growing and addressing social inequalities.

It is on us. Our decisions change the world!