to manage business data. Businesses continue to struggle to exploit
these advantages fully. Although the feverish investment pace of
the late ’90s has abated, companies are still measured by their abil-
ity to use technology effectively. In interviews with executives of
global corporations, we found that companies continue to struggle
with the integration of various systems they have purchased or
inherited from mergers and acquisitions. This ongoing “hangover”
from 1990s IT investments continues to absorb significant invest-
ments of time, money, and talent. And continuously emerging
technologies mean that such challenges will not abate.

Regulation Widens

The global web of government regulation is increasingly complex.
Globalization means that not only one country’s regulations must be
considered; many must. And beyond individual nations are several
multinational trading communities and economic institutions to
consider. An increased wave of regulation from both individual
countries and international trade entities is crashing in on certain
industries now, and more will feel the pressure in the near future. In
the pharmaceutical industry, for example, hardly an action is taken
without the consideration of cross-border regulatory issues. Other
industries, like energy, banking, and health care, behave similarly.

Politics Undermines Security

A geopolitical upheaval has forced executives to consider world
affairs in a new light. Emerging countries seek stronger voices in
global policy. Terrorists destabilize economies and institutions.
Safety and security become increasingly dominant. Grassroots
voices become louder and impact global economic institutions.
Today’s executives must do more than hedge currency risk. With
global operations, supply chains, and markets at stake, they must
stay closely attuned to changing conditions, and then respond
immediately when new situations develop.

As our friends at Root Learning say, together these global

winds of change are either jet streams of new opportunity or gale
forces of destruction. How leaders view them makes all the dif-

14

Understand