What Will It Take to Repair Finance?

IESE Insight magazine suggests answers



The latest issue of the IESE Insight Review makes important contributions to the debate about how we can avoid the mistakes of the crisis and usher in a new, more sustainable age of capitalism, where human development becomes the No. 1 priority again.

José M. Campa analyzes where the finance function went wrong, while Juan Almandoz shows how banking lost its way. Both concur on a key point: If you don't start with the right set of principles or guiding logic, you'll end up in a place you don't want to be.

Principles are also behind responsible investment, a movement that Fabrizio Ferraro describes in his article, and then elaborates on in an exclusive interview with James Gifford of the U.N. Principles for Responsible Investment. The crisis, he says, has stirred more people to question the dominant discourse that would make quarterly returns the sole measure of value.

Mireia Giné confirms that the trend is decidedly toward greater scrutiny of corporate behavior, transparency, disclosure, shareholder empowerment and accountability. As such, Pablo Sagnier and Luis Baón, of the international executive search firm Egon Zehnder, highlight how the CFO role will have to change to deal with these future challenges.

We also feature material from the new book, Innovation as Usual, by Paddy Miller and Thomas Wedell-Wedellsborg, in which they share "The 5 plus 1 Framework" - a diagnostic tool to identify the biggest behavioral bottlenecks to innovation in your own business, and how to fix them.

Other articles reveal how to leverage global business opportunities: Pankaj Ghemawat interviews Daniel Servitje, CEO of Grupo Bimbo, about how this Mexican family business has managed to become the largest baking company in the world; and Erran Carmel, of Kogod School of Business, presents strategies to turn the problems of geographically dispersed teams and time zone differences into a source of competitive advantage.

IESE Insight is a quarterly research-based magazine, published in separate English and Spanish editions. Its premium content is linked to articles from the IESE Insight knowledge portal, which contains research and teaching materials, opinion articles, business indices, audiovisual materials and an extensive database of more than 20,000 scholarly references.

Read more at the IESE Insight Review website.