In this post, I highlight some of the best thought
leadership articles and reports that cross my desk.
I note why they rise to the top of the pile and are worth reading (or skimming), even if they focus on functions or industries outside your areas of interest. Among the criteria I use to make the selections are freshness and provocativeness of insights and timeliness, analytical rigor, depth of prescriptions, and overall readability.
The war in Ukraine is top of mind for all global professional services firms. Many have closed or suspended their operations in Russia in response to that country’s invasion of Ukraine. Several firms have weighed in on what companies should do in light of the operational, financial, and economic disruptions caused by the war. In this edition of the Gold Standard, I highlight some of the strongest work coming from the professional services world on the crisis.
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Crisis in Ukraine: Respond and reposition”
The authors offer eight “potential vectors of disruption” that could affect global business, ordered from “most certain and immediate” (loss of Russian market and assets) to “most uncertain and likely to play out over time” (geopolitical realignment).
According to the authors, “the companies that successfully navigate this crisis will be the ones that act immediately while also readying themselves now for continued instability ahead.” They call this move “respond and reposition.” The areas where companies must respond and reposition are people, supply chain and operations, technology, market participation, financial position, and ESG and corporate citizenship. The authors recommend actions that should be taken in each area.
Supply chain implications of the Russia-Ukraine conflict”
As we all know, the COVID-19 pandemic has stretched supply chains of companies around the world. The war in Ukraine is adding to those difficulties. In this article, the author reviews actions that can be taken immediately to address supply chain issues. These include the following:
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Bain & Company
Deloitte
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in place.
– Ensure risk management frameworks and systems are
– Use technology to understand risks stemming from your
supplier’s suppliers (Tier 2)
– Understand and activate alternate sources of supply.
– Consider onshoring and “friend-shoring” (“reorchestration of
– Use technology to understand risks stemming from your
critical supply chains by swapping risky foreign suppliers with close allies and partners may offer a pragmatic solution”).
– Update inventory policy and planning parameters for
critical materials.
– Understand the impact of commodity inflation in supplier and
customer contracts.
– Monitor logistics constraints and costs.
– Increase focus on cybersecurity risk monitoring, within your
own operations and with key suppliers.
– Prepare for disruption in operations in the conflict region.
– Conduct global scenario planning.
Ten watchpoints
for financial services on the war in Ukraine”
Oliver Wyman
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sanctions environment
1. Risks from managing a fast-moving and complex
2. Tough decisions on onshore Russian footprint
holdings of Russian securities
3. Challenges in liquidating or managing existing
broader contagion
4. Credit exposure to the Russian economy, and
elevated defenses
5. Heightened cyber threats, requiring
The authors highlight the potential impact of the crisis on financial services companies. Executives should be prepared for the following:
First-order impacts
Second- and third-order impacts
War in Ukraine: Lives and livelihoods, lost and disrupted”
McKinsey
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The authors identify short- and mid-term disruptions, including in energy supply, commodities demand, and food security. They then develop scenarios based on levels of disruption and potential responses from government, consumers, and businesses and conclude with a section on implications for business leaders.
“The speed of this crisis has confounded many corporate leaders,” the authors state. “The fog of war makes it hard to understand exactly what is happening in the moment, let alone chart a path forward. However, many companies need to decide how to act both now and in anticipation of longer-term disruptions...”
6. Disruption and divergence in macroeconomic outlook
7. Energy security at the fore, driving an uncertain path to
net zero
8. Fragmentation in global market infrastructure
9. Development pathway of crypto, stablecoin, and
central bank digital currencies
10. Geopolitical reset with potential to reshape the
policy environment
The Ukraine crisis: How are global CEOs responding?”
Russell Reynolds
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Russell Reynolds, an executive search firm, recently surveyed corporate leaders around the world to find out what they were thinking about the war in Ukraine and actions they were taking in response to the operational disruptions it has sparked. Executives responded to these questions:
– How high is the Ukraine crisis on the
leadership agenda?
– What humanitarian actions are companies taking?
– How many companies have exited Russia?
– What are your human capital concerns?
– What business impacts do leaders anticipate?