Reframing the Game: Master in Leading from Intersections

The test of a first-rate leadership intelligence is the ability to hold two opposed ideas in the mind at the same time.

CEO role is the intersection of all contradictions, such as:

• Delivering short term results VS investing in long term performance.
• Taking time to gather facts and do analysis VS moving fast to capture opportunities.
• Respecting the past and creating continuity VS disrupting the future.
• Maximizing value for shareholder VS Delivering impact for other stakeholders.
• Having confidence to make toughs call VS having humility to ask for and receive feedback.

In strategic area, the best CEO build their vision by looking where various aspects of their business and the market intersect. Setting the right one is “at the intersection of four circles – according to IKIGAI: what the world needs, what you are good at, what you are passionate about, and how you can make money.” Looking at intersection of the circles, the Best CEO can find and amplify potential vision that could be able to reframe the game.

A CEO is often called the "master of reconciliation and managing contradiction" in the business world due to their need to balance and harmonize conflicting interests, goals, and perspectives. A CEO’s ability to reconcile and manage contradictions is central to their effectiveness in leading an organization. They must be adept at managing paradoxes and finding equilibrium among competing demands, ensuring that the organization remains dynamic, resilient, and successful in a complex and ever-changing business landscape.

The best CEO does not stop on finding the trade-off only but amplifying it to bring new potential vision to reframe the game.

Lars Rebien Sorensen, the former CEO of Novo Nordisk, saw the unmet medical needs in society related to diabetes. He also knew what his company was good at: biologics (drugs that are produced from living organisms or contain components of living organisms). Sharpening the vision further, Sorensen was passionate about taking a patient orientation, instead of catering to the doctors as was the industry norm. Sorensen had to do what is right for the patient and convince the doctor to be their partner. Then, all employees were asked to meet with the patients and understand what their lives were like and how Novo Nordisk’s products become transformative. It helped their people see that they were contributing to something much bigger than the job they thought they had. Finding and amplifying the intersections worked. Under Sorensen tenure, Novo Nordisk revenue grew tremendously. Today the company controls half the insulin market globally.

Balancing Short-Term and Long-Term Goals

CEO must manage the tension between achieving short-term financial performance (e.g., quarterly earnings) and investing in long-term strategic initiatives (e.g., R&D, market expansion) that may not yield immediate results.

Elon Musk – Tesla

Elon Musk focused on long-term sustainability and innovation with Tesla, often at the expense of short-term financial stability. Trade off: By investing heavily in R&D, gigafactories, and cutting-edge battery technology, Musk ensured Tesla’s future leadership in the electric vehicle market, even when it strained the company’s finance. Amplifying opportunities: This strategy has paid off as Tesla is now a leader in electric vehicles and renewable energy solutions, with a strong brand and market position.

Practical tips:

• Clearly articulate a vision that balances immediate actions with future aspirations. This helps align all stakeholders.
• Be ready to pivot based on market changes while keeping long-term goals in focus.
• Use data and analytics to forecast trends or do back-casting (assess feasibility of desirable future) and make informed decisions that balance short-term gains with long-term positioning.

Aligning Stakeholder Interests

CEOs need to reconcile the sometimes-conflicting interests of various stakeholders, including shareholders, employees, customers, suppliers, and the community. For example, shareholders might demand higher dividends, while employees seek better wages and benefits.

Paul Polman – Unilever

Paul Polman prioritized sustainability and long term, value creation, aligning the interests of consumers, employees, suppliers, and investors. Trade off: Polman stopped providing profit guidance and emphasized sustainable practices, which initially worried some investors focused on short-term gains. Amplifying opportunities: Under Polman’s leadership, Unilever’s commitment to sustainability attracted socially conscious consumers and investors, enhancing the company’s brand value and long-term profitability. Unilever’s Sustainable Living Plan demonstrated that sustainability and profitability can go hand in hand.

Howard Schultz – Starbucks

Howard Schultz focused on aligning the interests of customers, employees, and shareholders by fostering a Company’s culture that emphasized community and employee satisfaction. Trade off: Schultz invested in employee benefits like healthcare and education, which increased short-term costs but reduced turnover and improved customer service. Amplifying Opportunities: This approach led to higher employee morale and loyalty, creating a positive customer experience that drove long-term growth. Starbucks’ focus on sustainability and ethical sourcing further strengthened its brand reputation and customer loyalty.

Marc Benioff – Salesforce

Marc Benioff emphasized a stakeholder approach that includes employees, customers, communities, and environment, in addition to shareholders. Trade off: Benioff invested in social causes and employee welfare, such as equal pay initiatives and philanthropy, which increased short-term expenses. Amplifying Opportunities: This approach enhanced Salesforce’s reputation, attracted top talent, and fostered customer loyalty. Benioff’s focus on social responsibility and innovation helped Salesforce maintain strong growth and market leadership.

Practical tips:

• Regular, honest communication with all stakeholders helps build trust and align expectations.
• Develop and communicate a clear vision that resonates with all stakeholders, highlighting how their interests align with the company’s long-term goals.
• Involve stakeholders in decision making processes to ensure their perspectives are considered, and to gain their support for strategic initiatives.

Integrating Diverse Perspectives

In today’s global and diverse business environment, CEOs must navigate different cultural, social, and business practices. They need to integrate diverse perspectives to create cohesive strategies and organizational cultures.

Sundar Pichai – Google

Sundar Pichai has promoted a culture of inclusivity and diversity at Google, encouraging diverse perspectives in decision making processes. Trade off: Pichai has invested in diversity and inclusion programs, which require time and resources, but these initiatives help attract a broader range of talent and ideas. Amplifying opportunities: Diverse teams have driven innovation in AI, machine learning, and cloud computing at Google. This inclusive approach has led products like Google Assistant and Google Cloud Platform, which cater to a global user base and diverse needs.

Ginni Rometty - IBM

During her tenure as CEO, Ginni Rometty championed diversity and inclusion at IBM, promoting the importance of diverse viewpoints in driving innovation. Trade off: Rometty implemented programs to increase the representation of women and minorities in leadership roles, which required cultural shifts and investment in training and development. Amplifying Opportunities: This focus on diversity helped IBM to innovate in areas like AI and quantum computing. Diverse teams contributed to the development of IBM Watson, which has application across various industries, including healthcare, finance, and customer service.

Practical tips:

• Promote a culture where all voices are heard and valued, encouraging open dialogue and diverse viewpoints in decision making processes.
• Create cross functional teams that bring together individual with varied expertise, backgrounds, and perspectives to tackle complex challenges and drive innovation.
• Foster an environment of continuous learning and development to strengthen employees’ learning agility: learn, unlearn, and relearn.

Balancing Innovation and Stability

CEOs must foster an environment of innovation to stay competitive while also ensuring operational stability and efficiency. Encouraging risk-taking and experimentation must be balanced with maintaining core business processes and profitability.

Reed Hastings – Netflix

Reed Hastings led Netflix through transitions from DVD rentals to streaming and then to producing original content, balancing innovation with stable service delivery. Trade off: Hastings invested heavily in streaming technology and original content creation, which required substantial financial resources and risk-taking. Amplifying opportunities: Netflix’s innovation in content production and streaming technology has driven massive subscriber growth and market dominance. The stability of its subscription model ensures consistent revenue streams.

Practical tips:

• Maintain strong performance and reliability of core business operations while investing in new technologies and market opportunities.
• Implement both incremental improvements to existing products and services and pursue disruptive innovations that can open new markets or significantly alter existing ones.
• Develop robust risk management frameworks to evaluate and mitigate the potential downsides of new initiatives, ensuring that the core business remains unaffected by experimental ventures.

Balance customer needs for reliable, high-quality products with their desire for innovative features and new offerings, ensuring customer satisfaction and loyalty.

Navigating Ethical and Profit-Driven Decisions

CEOs face dilemmas that pit ethical considerations against profit motives. Decisions must balance doing what is right (e.g., environmental sustainability, fair labour practices) and doing in the right way with achieving financial objectives.

Kenneth Frazier – Merck

Kenneth Frazier emphasized the importance of developing life-saving drugs and vaccines, often prioritizing patient needs over short-term financial gains. Trade off: Frazier’s commitment to ethical practices included withdrawing profitable drugs from the market due to safety concerns and investing heavily in R&D for critical medications. Amplifying opportunities: Merck’s focus on ethical drug development has enhanced its reputation in the pharmaceutical industry and among consumers, leading to long-term success. The company’s investment in innovative treatments, such as cancer immunotherapy, has opened new revenue streams and solidified its position as a leader in medical research.

Howard Schultz – Starbucks

Howard Schultz prioritized ethical practice, including fair trade coffee, employee benefits, and community engagement, even when these decisions increased cost. Trade off: Schultz invested in healthcare for employees, education programs, and ethical sourcing, which increased operational costs but fostered a strong company culture and loyal workforce. Amplifying Opportunities: These ethical practices helped Starbucks build a strong, positive brand image, leading to customer loyalty and steady growth. Schultz’s emphasis on corporate social responsibility has contributed to Starbucks’ reputation as a responsible and ethical company attracting a broader customer base.

Practical tips:

• Clearly define and communicate the company’s values and ensures that all decisions align with these principles.
• Maintain transparency in decision making processes and hold the company accountable for ethical standards.
• Focus on long term value creation rather than short term gains, understanding ethical practices can drive sustainable growth.
• Always remember “doing the right thing in the right way! Starting from the Top, CEO.”

Managing Change and Continuity

Leading an organization through change (e.g., digital transformation, M&A) requires maintaining continuity in core values and business operations. CEOs must ensure that changes are smoothly integrated without disrupting the existing business.

Satya Nadella – Microsoft

When Satya Nadella took over as CEO in 2014, he focused on transforming Microsoft into a cloud-first and mobile-first company while preserving the strengths of its existing software products. Trade off: Nadella shifted resources towards cloud computing and AI, including substantial investments in Azure, while ensuring the continued development and stability of core products like Windows and Office. Amplifying opportunities: This strategic shift enabled Microsoft to become a leader in cloud services, driving significant revenue growth from Azure. At the same time, the continued success of Windows and Office provided a stable foundation, contributing to overall business stability and profitability.

Practical tips:

• Implement a mix of incremental improvements and transformative initiatives to ensure continuous progress without disrupting the core business operations.
• Foster a company culture that embraces change and innovation while respecting and building on the company’s heritage and core values.
• Allocate resources strategically, investing in new technologies and market while ensuring the stability and competitiveness of existing products and services.

Reconciling Market Demands and Organizational Capabilities

CEOs need to align market demands with the organization’s capabilities and resources. This involves making strategic decisions about product development, market entry, and resource allocation.

Tim Cook - Apple

Tim Cook has adeptly balanced meeting consumer demand for innovative technology products with Apple’s capabilities in design, engineering, and supply chain management. Trade off: Cook has invested heavily in new product lines like wearables (Apple Watch, Air Pods) and services (Apple Music, Apple TV+), while ensuring the continued excellence of core products like the iPhone and Mac. Amplifying opportunities: These investments have diversified Apple’s product offerings and revenue streams, helping to mitigate risk associated with the saturation of the smartphone market. The success of wearables and services has significantly contributed to Apple’s growth and profitability.

Practical tips:

• Continuously monitor market trends, consumer preferences, and competitive dynamics to identify emerging demands and opportunities.
• Align market demands with the company’s existing strengths and capabilities to ensure efficient and effective execution.
• Allocate resources strategically to areas with high market demand and growth potential, while maintaining the stability of core operations.

Handling Internal and External Pressures

CEOs face internal pressures from employees and management teams as well as external pressures from market competition, regulatory bodies, and economic conditions. Balancing these pressures requires a nuanced understanding of both internal dynamics and external environments.

Jeff Bezos - Amazon

Jeff Bezos dealt with internal challenges of managing a rapidly growing workforce and maintaining the company’s culture and innovation. Externally, Bezos had to manage shareholder expectations for continuous growth and profitability while navigating regulatory scrutiny and competition. Trade off: Bezos reinvested profits into new ventures like AWS, Amazon Prime, and international expansion, often at the expense of short-term profitability. Amplifying opportunities: These investments have paid off significantly with AWS becoming a major profit centre and Amazon Prime driving customer loyalty. Amazon’s diverse revenue streams and global presence have fortified its market leadership and growth prospects.

Practical tips:

• Develop a flexible strategy that can adapt to changing internal and external conditions. This includes being open to feedback and making necessary adjustments.
• Establish and communicate a clear vision that aligns with both internal capabilities and external market demands. This helps in gaining stakeholder buy-in and managing expectations.

Balancing Cost Control and Growth

Effective cost management is crucial for profitability, yet growth often requires significant investment. CEOs must find ways to control costs while simultaneously pursuing growth opportunities.

Mary Barra – General Motors

Mary Barra focused on reducing costs and improving efficiency at GM while investing in future growth areas like EVs (electric vehicles) and Avs (autonomous driving technology). Trade off: Barra made though decisions, including plant closures and workforce reductions, to cut costs. She also redirected resources towards the development of EVs and AVs. Amplifying opportunities: These cost-saving measures provided the financial flexibility to invest in growth opportunities. GM’s commitment to EVs and AVs has positioned the company as a leader in the evolving automotive industry, opening new market and revenue streams.

Practical tips:

• Streamline operations and optimize supply chains to reduce costs while maintaining product quality and customer satisfaction.
• Allocate resources strategically, balancing investments in core business areas with funding for new growth initiatives.
• Maintain a long-term perspective, recognizing that short-term cost control efforts can provide the financial stability needed to pursue long term growth opportunities.

Resolving Conflicts and Building Consensus

CEOs often mediate conflicts within the executive team or between departments. Building consensus and ensuring that all parts of the organization are aligned and working toward common goals is a key aspect of their role.

Indra Nooyi – PepsiCo

Indra Nooyi faced conflicts between proponents of traditional sugary snacks and beverages and advocates for healthier product lines. In building consensus, Nooyi implemented the “Performance with Purpose” strategy, which aimed to balance financial performance with social and environmental responsibility. She engaged employees, investors, and other stakeholders through transparent communication and demonstrated the long-term benefits of healthier products. Trade off: Nooyi made significant investments in R&D for healthier products while continuing to support and optimize the traditional product lines. Amplifying opportunities: PepsiCo’s expanded portfolio of healthier options has helped capture of a growing market of health-conscious consumers, driving long term growth and sustainability.

Practical tips:

• Foster open and transparent communication channels to ensure all stakeholders understand the issues, decisions, and benefits.
• Involve key stakeholders in the decision-making process to gain diverse perspectives and build buy-in.
• Practice active listening and empathy to understand the concerns and motivations of different stakeholders, facilitating more effective conflict resolution.

Here are key leadership competencies demonstrated by the Best CEOs we showcased previously who have led and made decisions from the intersections.

Satya Nadella (Microsoft)

Strategic Agility and Innovation: When Satya Nadella became CEO of Microsoft in 2014, he shifted the company’s focus from a software-centric business model to a cloud-first, mobile-first strategy. This move required quick adaptation to changing market trends and embracing innovation through products like Azure and Office 365. His decision to acquire LinkedIn and GitHub further exemplifies strategic agility and innovation, integrating new platforms to enhance Microsoft’s ecosystem.

Mary Barra (General Motors)

Resilience and Adaptability: Mary Barra led General Motors through significant transformations, including the push towards electric vehicles (EVs) and autonomous driving technology. Facing market volatility and competition, she closed underperforming operations and reallocated resources to invest in EVs and future technologies, demonstrating resilience and adaptability.

Jeff Bezos (Amazon)

Systems Thinking and Visionary Thinking: Jeff Bezos’ leadership at Amazon involved a deep understanding of interconnected systems. His vision to transform Amazon from an online bookstore to a global e-commerce giant and technology powerhouse involved integrating logistics, cloud computing (AWS), and media (Amazon Prime). This holistic approach allowed Amazon to leverage synergies across different business units.

Tim Cook (Apple)

Inclusive Leadership and Ethical Leadership: Tim Cook has emphasized diversity and inclusion at Apple, promoting a workplace culture that values varied perspectives. Additionally, his commitment to ethical leadership is evident in Apple’s environmental initiatives, like using recycled materials in products and striving for carbon neutrality.

Indra Nooyi (PepsiCo)

Ethical and Responsible Leadership: As CEO of PepsiCo, Indra Nooyi led the company with a focus on “Performance with Purpose.” She made significant decisions to diversify the company’s product portfolio to include healthier options, aligning business goals with social responsibility. This involved navigating the intersection of consumer health trends, regulatory pressures, and sustainability.

Elon Musk (Tesla and SpaceX)

Innovation and Crisis Management: Elon Musk’s leadership in both Tesla and SpaceX highlights innovation and effective crisis management. At Tesla, he pushed the boundaries of automotive technology with electric vehicles and renewable energy solutions. At SpaceX, Musk’s vision for reusable rockets and space exploration required managing complex engineering challenges and financial risks.

Arne Sorenson (Marriott International)

Crisis Management and Emotional Intelligence: During the COVID-19 pandemic, Arne Sorenson led Marriott through an unprecedented crisis. He communicated transparently with employees, customers, and stakeholders, demonstrating emotional intelligence and effective crisis management by implementing measures to safeguard the company’s future while addressing immediate challenges.

These examples illustrate how CEOs can lead from the intersection of various domains—such as technology, market trends, innovation, ethics, and crisis management—to navigate complexities and drive their organizations forward in VUCA and BANI environments.

Conclusion and Takeaways

Mastery in leading from intersections and contradictions in VUCA and BANI environments involves a CEO's adeptness at balancing and harmonizing conflicting interests, goals, and perspectives. This requires strategic agility, emotional intelligence, systems thinking, and an innovation mindset to navigate and integrate diverse viewpoints while fostering a culture of inclusion and ethical responsibility. By reconciling short-term demands with long-term visions, aligning stakeholder interests, and managing both change and continuity, CEOs can drive their organizations toward sustainable success amidst the complexities and uncertainties of the modern business landscape.

Always remember, this is not only about trade-off-game, but also about finding and amplifying intersections, identifying the new potential vision to reframe the game. This is the core mastery in leading from intersection of all contradictions.

Thanks to EGN Singapore (Executives' Global Network) , EGN Indonesia (Executives' Global Network) , EGN Malaysia (Executives' Global Network) , Nick Jonsson - Human Connection Mastermind , Dona Amelia , and 1000Steps.