Leadership in the Post-9/11 World

A panel of thought leaders in business, academia and consulting discussed leading edge issues of security and corporate strategy at a provocative CEO breakfast event sponsored on December 4, 2001, by Booz Allen Hamilton.

Moderated by Reggie Van Lee, Vice President, Booz Allen, the panel included:

• Mike McConnell, Vice President, Booz Allen, and director of the firm's Infrastructure Assurance Center of Excellence and former Director of the National Security Agency (NSA);
• Jeffrey Garten, Dean of the Yale School of Management and former Undersecretary of Commerce for international trade;
• Rich Wilhelm, Vice President, Booz Allen, and former Executive Director for Intelligence Community Affairs and advisor to Vice President Gore on national security issues;
• John Heindel, President of Lucent Worldwide Services and former President of Lucent Technologies International, Saudi Arabian branch.

Security as Part of Business Strategy

Security must be embedded in business strategy to enable resiliency, McConnell pointed out. Resilient businesses will take three critical steps: assess risk to understand vulnerabilities; plan for continuity in case of disruption; and adapt necessary changes in their business strategy.

According to McConnell, the design of the networks through which we access information needs to be addressed. "The Internet was created to ensure business continuity, and it does that. The downside is that, on the Internet, everyone's an insider," he said.

Globalization

Garten outlined a new perception of globalization, as the channels that allowed global prosperity are now equated with vulnerability. The result, noted Garten, is the likelihood of increasing government controls. In addition, American corporate investment abroad may decline, as corporations restructure their global strategies to answer to new security issues.

When terrorism becomes the priority of government, leaders of American multinational companies play a bigger role in society. Garten said, "Business leaders either need to step up to balance the public and private sectors, or become marginalized."

Public-Private Partnership

McConnell agreed, noting that CEOs need to take reasonable, open actions to reduce public fear, which is a large part of the issue. Stepping into government-industry partnerships is how he believes a balance between security and openness can be created.

Wilhelm added, "Globalization and openness will be rethought...we will have a new understanding and the right balance of public-private partnership."

Corporate Security

Wilhelm also noted that the concept of who is responsible for national security has changed as well, and it needs to be better defined. "There is information contained in infrastructures that are privately owned, and there is no way for the government to protect that from terrorism," he said. Customers, shareholders and other interested parties will look to CEOs to guard against cyber attacks.

However, corporate security now must go farther than safeguarding technology, said Heindel. Businesses need to reevaluate strategic implications internally and externally, looking at people, facilities, supply chains, and logistical streams to safeguard against disruption.

Heindel said, "September 11 showed us who in business had the strategic focus in operations to plan for disasters. Companies have to look at how much of their business structure is truly mobile, and which of their suppliers are truly partners in terms of customer service in disruptive situations."

Garten asserted that business students will need a deeper understanding of geopolitics. Setting a business strategy for security affects a broad range of management concepts taught in business schools. "Within the basics, students should understand the tenuousness of many of the assumptions they take for granted in the post-Cold War era," he said.

story posted December 2001