54th St. Gallen Symposium: Geopolitics as a generational issue – young leaders call for a change of course

How are companies dealing with a changing world? This year's edition of the “Voices of the Leaders of Tomorrow Report” by the Nuremberg Institute for Market Decisions (NIM) in cooperation with the St. Gallen Symposium shows that young leaders and established top managers have fundamentally different perceptions of geopolitical risks and corporate responsibility. Their assessments differ significantly, especially when it comes to the extent and consequences of a multipolar world order. While young executives classify geopolitical risks as an acute threat, many established managers continue to focus on stability and continuity.  

Management in transition: Boomers underestimate global risks

For the “Voices of the Leaders of Tomorrow” study, young talents from the international network of the St. Gallen Symposium and senior executives from the world's top-grossing companies are surveyed annually about their perspectives on the major issues of our time. The study is conducted by the Nuremberg Institute for Market Decisions in cooperation with the St. Gallen Symposium. For this year's edition of the study, 800 talented young professionals under the age of 35, known as “Leaders of Tomorrow”, and 275 experienced managers from some of the world's top-grossing companies were surveyed.    

Key findings of the study at a glance:

• Young executives are significantly more critical of geopolitical upheavals: According to the survey, 72% expect a fundamental shift in the global order – in contrast to only 39% of established managers.  
• Senior executives underestimate risks: Almost half see geopolitical changes as positive or neutral in the long term – an assessment that, according to the study's authors, could lead to strategic blindness.
• Young talent wants to create social value: 75% of young executives expect companies to be socially committed – compared to only 42% of top managers.
• Early involvement of young perspectives recommended: The study suggests that companies could become more resilient if they take the views of the next generation of leaders seriously.  

Tomorrow's talent is committed to more responsibility and attitude

“Experience is valuable, but it can be a hindrance if it clings to outdated ways of thinking when bold reorientation is needed,” says Felix Rüdiger, co-author of the study at the St. Gallen Symposium. Companies would therefore be well advised to take the perspectives of tomorrow's leaders seriously and prepare for profound and lasting geopolitical upheavals. Study author Dr Fabian Buder from NIM is convinced. “Current global political developments indicate that ideas such as cooperation and division of labour are finding it harder to gain acceptance. Our survey reveals that many company leaders were surprised by these developments, even though they were on the horizon. Companies need to position themselves better strategically in future and pay more attention to geopolitical developments.”  

Intergenerational leadership as a strategic advantage

Members of the Club of Rome discussed another aspect with guests at the St. Gallen Symposium on the basis of the report “How Intergenerational Leadership Unlocks Innovation and Sustainability in Business”. According to the analysis, there is a significant age gap in corporate management: while the average age of the global working population is 39.6, the average age of CEOs worldwide is 56.8. On supervisory boards in large markets such as Brazil, the USA, the EU, South Africa and India, the average age is between 58 and 64. This discrepancy means that younger perspectives are underrepresented in decision-making processes. “Cross-generational leadership not only contributes to solving current challenges, but also represents a competitive advantage for companies,” affirmed a young guest at the St. Gallen Symposium in a panel discussion.  

“Business is business” versus companies that act politically

Harvard economics professor John Kay offered a counterpoint in another debate at SQUARE on the HSG campus. He argued that companies should refocus on their core business of developing good products – in line with the motto, “The business of business is business.” The confusion between political engagement and business conduct is too great, as Elon Musk's new role in the Trump administration shows. ‘Elon Musk should shut up and focus on making good cars again,” said Kay. His thesis met with little enthusiasm from the young generation in the room. HSG student and conference organiser Jade Josephine Röller argued that CEOs should stand up for democratic values, especially in a crumbling democracy like the US. Together with panel guest and public affairs expert Johannes Bohnen from Germany, she advocated the idea of CEOs forming alliances to strengthen the free social order.  

Leadership: Leading in times of crisis

Surveys such as this one also raise the question: What kind of leadership is needed in uncertain times? Heike Bruch, professor of Leadership at the University of St.Gallen (HSG) recently commented on this in an interview with the German newspaper Handelsblatt: "I recommend that every manager be aware of his or her own area of responsibility: Which of my activities are familiar and routine? And where is it necessary to try out new solutions? Many people tackle new problems with old tools. This is counterproductive. But it is equally damaging to approach familiar tasks with ever-new solutions and too little standardisation.” Leadership that focuses on what provides long-term stability provides direction,” she adds. “Leaders should ask themselves: 'Do we have a strategy that is fundamentally sound? Is there a vision, a picture of the future that we can use as a guide? Are there certain values that I need to model more clearly to my people?” All of this creates a foundation on which everyone can feel more secure. Leaders should not act as if there is nothing left to rely on.

Image: Hannes Thalmann