What the CEO and board directors want you to know

“Whoever is careless with the truth in small matters cannot be trusted with important matters”― Albert Einstein

Concerning the quote above, you may want to read Spies Among Us and Gaslighting in this issue. Some insight on The Future of Business and what CEOs and Boards Want You to Know. Also, highlighting Adult Education, we need to embrace it. The economy will get tougher before it gets better; either way, prepare for 2025 and beyond.

The Economy and Market

The Bank of Canada lowered its rates by a quarter point this week. The next day, the unemployment numbers were out, and more people were out of jobs. Only 27,000 new jobs were added, mostly part-time, and unemployment rose to 6.2%. Needless to say, GDP hasn't been a shining star either. The US saw stronger job numbers on Friday, which spooked the market.

However, there are deeper problems. Inflation has created a wider gap in affordability, and many consumers are surviving on debt, with 50-60% of the population living paycheck to paycheck (like inflation a global phenomenon) and another 20% living within their means, leaving 20% to keep the ship afloat. That likely keeps economists and business leaders up at night. Read the CBC 27,000 Jobs and the US Jobs report CNBC. Of course, this interest rate divide between the US and Canada doesn't bode well for both countries and investors. The US market remains strong. What is the Canadian market thinking? It's simple 25-30% of all inflation is higher interest rates, and food prices are up 20% since 2022. That doesn't make for a healthy economy.

Personal Log: Prepare for your climb

I believe what holds back some of the most brilliant and talented people is doubt and fear. I used to watch my dad climb with no fear. He would get up on top of a roof, stand on it, and walk around, and he wasn't even tethered. As a soldier, he was trained in mountaineering. I asked how do you conquer the fear of heights. First he said never look down and second focus on getting to your next goal, rest a little evaluate and keep climbing, once your half way up there is no turning back. Keep planning, and keep moving up.

The same applies to normal life in terms of what separated Steve Jobs—Apple, Jeff Bezos—Amazon, Bill Gates—Microsoft, and Jensen Huang—Nvidia from the rest of the world. They were motivated to climb their mountains and had a vision of the future and what they could accomplish. Their climb didn't have a physical risk, but it created other ones that could be just as detrimental. But they just kept moving one level at a time, making changes as necessary to build their businesses.

Climbing anything comes with risks. Fear is a creation of the mind. It is a fail-safe system to react when there is perceived danger. Whether self-induced or placed there by others, obstacles exist in our minds. My father taught me that the perceived fear of heights was more dangerous than the real climb. He said people who fear heights were a danger to themselves because they never bothered learning how to prepare for their climb. They spent more time thinking about what they feared versus what they could do.

Keep planning, climbing and keep moving up.

The Future of Business: What CEOs, their teams, and board directors want you to Know

Challenging and changing times that we may not be ready for. I believe executives today want their people to know that more business disruption is coming. The economic one still exists, but it's more than that. As I sat listening to different corporate presenters at the Data and Analytics Conference, I wrote down my thoughts. What would the CEO and Board want to tell all executives and talent within their organizations today if they were all at this conference? They would want you to know that how we compete will evolve dramatically.

What they would have heard at that summit was how much AI has evolved. Not everyone in the room believed it was a threat or anything meaningful. Yet some people were still using COBOL, or their customers were in legacy systems. Perhaps there is nothing wrong with that, but it is outdated. The threat is not about taking jobs or doing away with humanity; that's not it. Senior executives want you to know that the business world is changing, as is the ability to compete.

While many narratives revolve around ethics, transparency, and data collection, many miss the point. The CEO and the board want to know how effectively we can use AI to compete and win in the marketplace. Any other question is redundant, especially if you don't know how to compete. What does this mean? Every function and consultant, from operations and training to marketing and merchandising, must understand that AI is the future and that they have more than a superficial understanding of Data, AI, LLMs and ML. One message was clear during the summit: the next two years will have massive changes. Read this interesting article from Business News Daily

Future Careers - Rethinking Adult Education

Rethinking adult education is essential due to the rapid advancements in technology and the evolving needs of the workforce. It is a human challenge to keep pace with the skills demanded by the rise of machine learning, data management, artificial intelligence, automation, and a constantly shifting job market. Lifelong learning must become the norm; education must emphasize critical thinking, creativity, problem-solving, and soft skills such as emotional intelligence and collaboration. Additionally, with increasing globalization, cultural awareness, and a focus on sustainability and social responsibility, education systems must adapt to prepare individuals for a more interconnected and socially conscious world.

Adults need to embrace continuous education. The day curiosity dies, careers begin to flounder as well. A few times in the past, I have mentioned Coursera as a means to continue to learn at an affordable cost. Find out more here about Coursera. Why am I so adamant about this? I've observed the number of people displaced in North America and Europe by outsourcing, followed by the erosion of manufacturing and loss of jobs, and if this keeps up, our next problem will be dissent and division. And the other guy preaching daily about good vibes of the good old days to come back is lying to you. The only way workers win is by being vigilant with their skills.

Economy: Consumers are playing it safe

This week's rate cut was welcomed but hardly a mover and shaker. What we should expect is an economy that slows down further. After all, what did anyone think would happen by raising rates? Ostensibly, for anyone renewing their mortgages, their payments have increased by at least 50%. Locking in for a longer term at today's rates would be nonsense. Once again (blame anyone you want; I blame the pandemic), global inflation has set a bigger gap in affordability. What our economy faces is a US economy that's on fire, and if our slowdown gets worse, lower interest rates can hurt our currency, which means more pricing pressure and, therefore, an even slower economy. Canada needs more technology-first companies that start up here and can compete globally. Our economy is made up of natural resources and service industries. That won't do, and the retail sector will struggle; consumers will retrench from debt, even BNPL. Either way, every worker and business must be ready for 2025 to 2030. Things will change with technology being far more disruptive. Reuters news item Canadian currency and natural resources

Politics: Spies Among Us

Does Canada have spies within the government or in our elected officials and their staff? If that's true, how dare they! Does that make them traitors? Our laws define that. This should make you angry. I am also angry with the child-like behaviours of the opposition parties that refuse to read the government's confidential report. Why? Do they know something and would rather play dumb? I am appalled by the demand for transparency about what the government knows without allowing the authorities to investigate and place charges if warranted.

Aside from that, this is an economic and political issue. Whoever our officials are helping creates the potential for trade issues for our nation. And if these foreign nations are trying to spy on us and infiltrate our government, why are we not calling them an enemy? Don't hold your breath. We won't. Because our trade relationships mean economic turmoil if we shut the door, have we been selling off the safety of our sovereignty in exchange for personal wealth and trade? I think it's time we got tougher—a lot tougher. Read this CBC report for more insight

A new book...

Imagine a world where you can anticipate market trends, make informed decisions with pinpoint accuracy, and lead your organization through transformative change—all powered by the latest advancements in artificial intelligence.

Discover how historical perspectives and pursuits of intelligence formed our current understanding of what AI can be, and learn about the strategic imperatives that every leader must embrace to thrive in this rapidly evolving environment. Whether you are a seasoned executive looking to stay ahead of the curve or an aspiring leader eager to harness the power of AI, you will find invaluable perspectives and practical strategies to propel your organization forward. Prepare to be inspired, challenged, and equipped for the future of leadership.

Canada needs a new Department Store Icon..Simons!

I have to say that my first visit to Simons was in Montreal over 15 years ago. I was impressed then and wondered why they weren't across Canada. I had always hoped that a new Department Store would rise above the rest that had lost their way.

It is certainly a tough market, and you must have the right unit economics to make it work. Hopefully, they have securities given to them by the developers to see through a growth period that they will need to establish themselves. The challenge is also this economy and the level of competition. Will there be enough for everyone, or will there be failures? Simon's presence will push other apparel retailers out of business. Read this from the Globe and Mail

At the end of the day...Using gaslighting to stop progress

Imagine the 1920s, a period of palpable anger and frustration as the world faced seismic shifts. Jobs were threatened by emerging technologies that rendered old industries obsolete. Fascist ideologies began to take root, with anger-fueled politics proving a potent tool for mobilizing the masses, overthrowing governments, and even dethroning royalty. Hitler and others before and after him exemplified this mastery of manipulating public sentiment, harnessing fear and resentment to reshape nations. They were careless with the truth and played on the average person's fears.

Fast-forward over a century, and we see a hauntingly similar pattern. Politicians worldwide ascend platforms of rage, promising a return to an idealized past—a baseless promise unless progress is halted entirely to protect antiquated systems. Today, gaslighting has become a strategic weapon, distorting the truth and sowing doubt, making us question reality. The challenge lies in recognizing and resisting these tactics by understanding that progress is essential for navigating the complexities of our evolving world.

Thank you for reading this week's issue of The Business Brief. Over the summer, this will be published biweekly, with the next issue on June 23rd.

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