Business consultant Charan (The Talent Masters: Why Smart Leaders Put People Before Numbers, 2011, etc.) offers his view of where the world economy is headed in the next 20 years, along with his prescriptions for success.
Despite often heard concerns about stagnation in Europe and Japan and slow recovery in the United States, the author attempts to drive home a sense of a bigger picture, in which the economies of what he calls “the south” (the developing world, including China and India) will continue to grow at a pace fast enough to support world growth at around 3 percent per annum. This translates into trillions of dollars of new business. Future economic success stories will belong to those who have developed the knowledge and leadership that enable them to tap into the wealth portended in the author's growth forecast. The author anticipates that the world's middle class—those who can spend $10-$100 per day—will grow to around 5 billion by the year 2030. He recommends a twofold approach for leaders whose ambitions will lead them into the competition for that market: They need to be able to think from what he calls “the outside in” and “the future back.” The former involves being able to conceptualize how another culture really works, rather than importing prevailing assumptions from the outside, and the latter, the ability to conceptualize a goal over time, then working back to the present to define the steps required to secure its implementation. To further elaborate on his overall approach, the author examines the case studies of Bharti Airtel, a leading Indian wireless company, and China's Haer consumer appliance manufacturer, which have both risen to international leadership in very short time frames.
A thought-provoking presentation about already discernible global trends.