Quality Growth During Times of Volatility

By Michael Fertik, CEO and Founder, Reputation.com

Three years ago this week, we experienced the worst financial catastrophe since the Great Depression. Wall Street all but collapsed, big banks buckled and trading screeched to a halt from New York to New Delhi. By 2010, it seemed like things were looking up and the economy was on a slow-growth trajectory. But the market loves its spikes, loves its drama – last month, Bank of America, Apple and ExxonMobil lost more than $80 Billion in combined market cap.

With the 2008 crisis, we came up with a fix, sort-of. The world’s leading policymakers assembled, essentially staging an economic intervention that prevented the market from completely spiraling out of control. But current market volatility is different. There is no hero in sight. The tepid global economy requires a new solution, one that addresses the rapidly changing business and market environments. In this equation I look to the development of new industries to step in and help the market. Quality business growth is critical during times of volatility; the 2011 Annual Meeting of the New Champions will afford a unique opportunity to observe and learn from different approaches as we navigate the uncertain times ahead. Which of these Tech Pioneers will be the arbiters of a new industry? Will the next trillion-dollar industry be on this stage? I hope so!

I am inspired by this year’s participants in Dalian, which include the world’s foremost experts in industries and disciplines, ranging from food security to biotech to “rubanization”, robotics and the art scene in Asia. As Global 2000 companies convene from regions such as Africa, India, China, Latin America and Silicon Valley to explore different approaches to solving global issues, I hope we can discover the next frontier of economic growth and exchange views on how companies can continue to disrupt and innovate, despite an unpredictable economy. Exciting interactive sessions such as Global Financial Outlook: A Second Great Contraction? and Insights from Emerging Markets: Frugal Innovation will address how another financial crisis can be averted, and how global businesses learn from resource-constrained innovation in emerging economies. Of course, I am also looking forward to the crisis communication panel, where my peers and I will confer on the uses of social media, mobile technologies and communication and leadership strategies.

The New Champions have already agreed that complexity, interconnectivity and sustainability are emerging as the dominant new realities of the 21st century. Benjamin Franklin once said that without continual growth and progress, such words as improvement, achievement, and success have no meaning. As we rebalance the global economy with both of these thought in mind, hopefully we can master the quality growth required to prepare us for the centuries ahead.

What are your thoughts and predictions for 2011 Summer Davos? Let me know what you’re most looking forward to – please contact me on Twitter: @MichaelFertik.

*Michael Fertik is CEO and Founder, Reputation.com. He is attending the upcoming World Economic Forum Annual Meeting of the New Champions held in Dalian, China 14-16 September 2011.