My observation is that almost every technological revolution begins with abundance, too many players, too many promises. The industrial era had railroads. The internet had dot-coms. Artificial intelligence is now entering its own equivalent phase. If I put this into a form of a metaphor, in evolutionary biology, periods of rapid diversification are always followed by mass extinctions. Not because species fail to adapt, but because only a few environmental niches can sustain long-term survival. The AI sector is seeming to be entering its own evolutionary bottleneck. 

What looks today like explosive growth and endless opportunity is, in reality, the prelude to a market consolidation cycle. The AI industry is approaching a structural shakeout where only a small number of platforms, ecosystems, and operating models will capture the majority of long-term value.

The global AI market is projected to grow from roughly $375 billion in 2026 to around $2.48 trillion by 2034, reflecting extraordinary investment momentum. Yet history seems to suggest that growth at this scale does not produce many winners, it produces a few dominant architectures and many displaced ambitions. For business leaders, the critical question is no longer whether AI will reshape industries, but how market share in AI will consolidate and what structural forces will determine who survives that consolidation.

I am sharing here 3 dynamics that has the potential to define this shakeout.

1. The Shift from Model Competition to Ecosystem Control

Public discourse frames AI competition as a race between models: which foundation model is smarter, larger, or more capable. This narrative is already becoming obsolete.

The real battle is not over models, it is over ecosystems.

My observation is that as AI becomes embedded in enterprise workflows, value increasingly shifts toward platforms that control:

• cloud infrastructure
• data integration layers
• developer toolchains
• compliance and governance systems
• vertical application marketplaces

In other words, the winners will be those who design the environment in which AI operates, not merely the intelligence itself.

Cloud infrastructure data already reflects this dynamic. Hyperscalers continue to dominate spending and increasingly bundle AI services directly into core enterprise stacks. This means that many innovative AI companies will not fail because their technology is inferior, they will fail because they are positioned outside dominant ecosystems.

For business leaders, this has a subtle but powerful implication; the strategic risk is not choosing the wrong AI model , it could be aligning with the wrong AI platform.

2. The Geopolitical Fragmentation of AI Markets

The AI market is not global in the traditional sense. It is becoming geopolitically segmented.

A significant but under-appreciated trend is the redistribution of AI research leadership. China now accounts for a rapidly growing share of global AI publications, reshaping the geography of innovation.

This shift is already producing real commercial consequences. Export controls on advanced chips are accelerating the development of domestic AI stacks in China, reducing reliance on Western providers. 

At the same time, regulatory regimes are diverging:

• The EU is prioritizing safety and governance.
• The US is prioritizing innovation speed.
• China is prioritizing state-aligned infrastructure.

The result is not a single global AI market but multiple regional AI economies, each with distinct standards, architectures, and champions. For multinational firms, this introduces a new strategic complexity. Hence, my observation is that AI strategy must now resemble geopolitical strategy balancing localization, compliance, data sovereignty, and ecosystem partnerships across jurisdictions. Those who design multi-architecture strategies, not monolithic global deployments, should have an edge.

3. The Frontier-Laggard Divide Inside Enterprises

Perhaps the most overlooked dimension of the AI shakeout is not between companies but within them. Early enterprise adoption data shows a widening gap between “frontier organizations” that deeply integrate AI into decision processes and the majority that use AI as an experimental layer.

Usage metrics already reveal that frontier adopters engage more frequently, across more functions, and with higher strategic integration.  

This divide is not technological. It is organizational.

Frontier firms are redesigning:

• how decisions are made
• how insights flow into leadership forums
• how experimentation replaces static planning
• how governance enables speed instead of constraining it

Laggards, by contrast, often treat AI as a tool rather than a system deployed at the edges but excluded from core strategic logic. The coming shakeout will therefore not simply eliminate firms that fail to adopt AI. Seeming that it will reward firms that restructure themselves around AI-driven cognition, where learning cycles replace planning cycles, and strategy becomes a real-time process.

The Structural Reality of the Shakeout

The AI shakeout will not resemble a typical technology cycle. It will be quieter, more structural, and more permanent.

It will not be announced by bankruptcies. It will be revealed through:

• shrinking ecosystem relevance
• declining developer engagement
• reduced access to strategic partnerships
• loss of platform influence
• inability to attract frontier talent

In this sense, the AI shakeout is less about failure and more about gravitational drift. Organizations are seeming to be slowly moving out of the centers where innovation, capital, and strategic power accumulate.

What This Means for C-Suite Leaders?

The market share battle in AI does not look like about buying tools. It is about ‘designing position’.

The leaders who emerge from the shakeout will be those who:

• treat ecosystem alignment as a core strategic decision
• build geopolitical adaptability into AI roadmaps
• redesign governance to enable continuous learning
• integrate AI into leadership cognition, not just operations

My take is that AI will not replace strategy. But it will replace static strategy. 

My Final Reflection

Every major technological shift produces noise first and structure later.

We are leaving the noisy phase of AI and entering the structural phase.

The shakeout will crown the smartest architectures rather than models. And in the end, the true competitive advantage will not be artificial intelligence but organizational intelligence shaped by artificial intelligence.

In today’s fiercely competitive business landscape – where customer demands are ever-increasing, digital transformation accelerates change, and organisational agility determines survival – one timeless truth stands out: the greatest driver of lasting success is investing in people.

I am delighted to share the full PDF of my book, Accelerate with Impact: Your Business and Personal Growth, here on the CEO Worldwide Blog. This guide distils the lessons from my own hands-on journey as a Managing Director, turnaround specialist, and leader in both PLCs and private companies.

Throughout my career – from re-engineering organisations, driving successful mergers and acquisitions, launching new products and services, to consistently elevating profitability – I have seen firsthand that businesses thrive when they prioritise their people. Technology supports us, but it is dedicated, empowered individuals who truly make companies excel.

This book provides straightforward, jargon-free guidance. My core message remains: “Improving the quality of people is necessary to accelerate with impact organisations.” By caring more for your personnel than your competitors do, you create winners. Key areas covered include:

• Change Management and Leadership – Actionable frameworks for navigating change, executing strategies, and delivering real results.
• People Empowerment – Proven tools for coaching, mentoring, training, effective communication, and fostering high-morale teams.
• Business Acceleration – Insights on market forecasting, ROI maximisation, strategy implementation, building effective boards, and developing 21st-century executives.
• Mindset for Success – The disciplines of champions, cultivating positive attitudes, and balancing professional achievement with personal wellbeing.

Whether you are a CEO guiding your organisation through uncertainty, an executive strengthening team resilience, or a leader aiming to maximise your own impact, Accelerate with Impact offers the practical blueprint to unlock the potential in your people – your most valuable asset.

Download the full book PDF below and take the next step to ignite your business and personal growth.

Growing a business faces a range of challenges. As a business grows, different issues/problems and opportunities demand different solutions – what worked a year ago might now be not the best approach. All too often, avoidable mistakes turn what could have been a great business into an also-ran.

Recognising and overcoming the common pitfalls associated with growth is essential if your business is to continue to grow and thrive. Crucially, you need to ensure that the steps you take today do not themselves create additional problems for the future. Effective leadership will help you make the most of the opportunities, creating sustainable growth for the future.

This guide highlights the particular risks and mistakes that most commonly affect growing a business and outlines what you can do about them.

• Keeping up with the market
• Information source
• Planning ahead
• Cash flow and financial management
• Problem solving
• The right systems
• Skills and attitudes
• Welcoming change
• Renegotiating contracts to take account of increased volume

Keeping up with the market

Market research isn’t something you do as a one-off when you launch your business. Business conditions change continually, so your market research should be continuous as well. Otherwise you run the risk of making business decisions based on out-of-date information, which can lead to business failure.

The more you succeed, the more competitors notice – and react to – what you are doing. A market-leading offer one day may be no better than average a few months later.

Apparently loyal customers can be quick to find alternative suppliers who provide a better deal.

As products (and services) age, sales growth and profit margins get squeezed. Understanding where your products are in their lifecycles can help you work out how to maximise overall profitability. At the same time, you need to invest in innovation to build a stream of new, profitable products to market.

Information sources

Published information can provide useful insights into market conditions and trends. As a growing business, your own experience can be even more valuable.

You should be able to build up an in-depth picture of what customers want, how they behave and which of your marketing approaches work best.

Taking the time to talk to key customers pays off. Your suppliers and other business partners can be important sources of market information. You should encourage your employees to share what they know about customers and the market. Effective IT systems can also make it easier to share and analyse key information such as customers’ purchasing behaviour and preferences.

You may want to carry out extra research as well – for example, to test customer reaction to a new product. You might do this yourself, or use a freelance researcher or market research agency.

Planning ahead

The plan that made sense for you a year ago isn’t necessarily right for you now. Market conditions continually change, so you need to revisit and update your business plan regularly.

As your business grows, your strategy needs to evolve to suit your changed circumstances. For example, your focus is likely to change from winning new customers to building profitable relationships and maximising growth with existing customers. Existing business relationships often have greater potential for profit and can also provide reliable cash flow. Newer relationships may increase turnover, but the profit margins may be lower, which may not be sustainable.

At the same time, every business needs to be alert to new opportunities. There are obvious risks to relying solely on existing customers. Diversifying your customer base spreads those risks.

Following the same business model, but bigger, is not the only route to growth. There are other strategic options such as outsourcing or franchising that might provide better growth opportunities.

It’s important not to assume that your current success means that you will automatically be able to take advantage of these opportunities. Every major move needs planning in the same way as a new business launch.

Watch out for being too opportunistic – ask yourself whether new ideas suit your strengths and your overall vision of where the business is going. Bear in mind that every new development brings with it changing risks. It’s worth regularly reviewing the risks you face and developing contingency plans.

Cash flow and financial management

Good cash flow control is important for any business. For a growing business, it’s crucial – cash constraints can be the biggest factor limiting growth and overtrading can be fatal.

Making the best use of your finances should be a key element in business planning and assessing new opportunities. With limited resources, you may need to pass up promising opportunities if pursuing them would mean starving your core business of essential funding.

Every element of working capital should be carefully controlled to maximise your free cash flow. Effective credit management and tight control of overdue debts are essential. You may also want to consider raising financing against trade debts.

Good stock control and effective supplier management tend to become increasingly important as businesses grow. Holdings of obsolete stock may become a problem that needs periodic clearing up. You may want to work with suppliers to reduce delivery cycles, or switch to suppliers and systems that can handle just-in-time delivery.

Planning ahead helps you anticipate your financing needs and arrange suitable funding. For many growing businesses, a key decision is whether to bring in outside investors to provide the equity needed to underpin further expansion.

Problem/Issue solving while growing a business

New businesses often run in perpetual crisis mode. Every day brings new challenges that urgently need resolving and management spends most of their time troubleshooting.

As your business grows, this approach simply doesn’t work. While a short-term crisis is always urgent, it may not matter nearly as much as other things you could be doing. Spending your time soothing an irritated customer might help protect that one relationship – but focusing instead on recruiting the right salesperson could lay the foundations of substantial new sales for years to come.

As your business grows, you also need to be alert to new issues/problems and priorities.

For example, your business might be increasingly at risk unless you take steps to ensure your intellectual property is properly protected.

If you are focusing on individual marketing campaigns, you might need to devote more resources to developing your brand.

Identifying the key drivers of growth is a good way of understanding what to prioritise.

A disciplined approach to management focuses on leading employees, developing your management team and building your business strategy. Instead of treating each problem as a one-off, you develop systems and structures that make it easier to handle in the future.

The right systems

All businesses produce and rely on large volumes of information – financial records, interactions with customers and other business contacts, employee details, regulatory requirements and so on. It’s too much to keep track of – let alone use effectively – without the right systems.

Responsibilities and tasks can be delegated as your business grows, but without solid management information systems you cannot manage effectively. The larger your business grows, the harder it is to ensure that information is shared and different functions work together effectively. Putting the right infrastructure in place is an essential part of helping your business to grow.

Documentation, policies and procedures also become increasingly important. The informality that might work with one or two employees and a handful of customers simply isn’t practical in a growing business. You need proper contracts, clear terms and conditions, effective employment procedures and so on.

Many growing businesses find using established management standards one of the most effective ways of introducing best practice. Quality control systems can be an important part of driving improvements and convincing larger customers that you can be relied on.

Investing in the right systems is an investment that will pay off both short and long term. You benefit every day from more effective operations. If you ever decide to sell the business, demonstrating that you have well-run, efficient systems will be an important part of proving its value.

Skills and attitudes

Entrepreneurs are the driving force behind creating and growing new businesses. All too often, they are also the people holding them back.

The abilities that can help you launch a business are not the same as those you need to help it grow. It’s vital not to fool yourself into valuing your own abilities too highly. The chances are that you’ll need training to learn the skills and attitudes required by someone who is leading growth.

To grow your business, you need to learn to delegate properly, trusting your management team and giving up day-to-day control of every detail. It’s all too easy to stifle creativity and motivation with excessive interference. As the business becomes more complex, you also need to develop your time management skills and learn to focus on what’s really important.

As your business grows, you may need to bring in outsiders to help. You’ll want to delegate responsibility for particular areas to different specialists, or appoint a non-executive director or two to strengthen your board. As you start tackling a new opportunity, someone who has experience of that activity can be vital.

For many successful entrepreneurs, learning to listen to – and take – advice is one of the hardest challenges they face. But it may also be essential if you are going to make the most of your opportunities. Some entrepreneurs, recognising their own limitations, even appoint someone else to act as managing director or chairman.

Welcoming change

Complacency can be a major threat to a growing business. Assuming that you will continue to be successful simply because you have been in the past is very unwise.

Regularly revisiting and updating your business plan can help remind you of the changing market conditions and the need to respond to them. See the page in this guide on planning ahead.

An up-to-date plan helps you identify what action you need to take to change your business and the way it operates, for example:

• Changing to suppliers who can grow with you and meet your new priorities. As your business grows, consistent quality and reliability may be more important than simply getting the cheapest offer.
• Renegotiating contracts to take account of increased volume.
• Training and developing employees. Your own role will also evolve as the business grows. See the part of this guide on skills and attitudes.
• Making sure that you keep up to date with new technologies. 

You need to be fully committed to your strategy, even if it takes you out of your comfort zone. This may involve hard decisions – for example making employees redundant or switching business away from suppliers you have become friends with. But unless you’re prepared to do this, you risk putting your business at a dangerous competitive disadvantage.

I share with you helpful publications below:

Delivering Success – A Pathway to Profits, Passion and True Purpose

`How to Learn, Lead and Grow as a Champion`
Achieving Business and Personal Excellence

Learning – Leading – Growing – Winning Together = Success

`Becoming the Best`
Empowering Employees to Deliver Service Excellence

`Tomorrow You Will Become – What You Choose Today`
Blue Print to Your Success in Business and Personal Growth

“Anything in life is possible as long as you have the passion to be successful”
Colin Thompson

So which is it:

Time for a sharp exit – you need time for your exit strategy to kick-in
Time for a sharp exit  – you need to plan the timing of your exit?
Time for a sharp exit – your exit needs to be swift?
Time for a sharp exit – you need to start thinking about how you are going to exit the business…

Preparing Your Business for Sale

Getting your company in shape for a sale

It’s time to turn our attention more specifically to ensuring that your business is well positioned to achieve an optimal outcome in an outright sale or indeed on a partial sell-down by the existing owners. The ideal scenario sought by business owners often involves a high price, payable in cash on completion, with no onerous terms and minimal disruption during the process. This can often be achieved, but not without prior planning.

All too often business owners are not well prepared when a decision is made to sell and believe their business is worth considerably more than a purchaser is prepared to pay. The timing and reasons for a business sale can be critical to determining the outcome. Unfortunately, the decision to sell is often forced upon the business by circumstances and many business owners fail to unlock the true worth of their business.

Reasons for selling

Common reasons for a business sale fall into two categories – planned and unplanned – and include:

Planned – Retirement.

 Access to capital to fund business growth.

– The entrepreneur that grew the business recognises that the management capability required is beyond his/her skill sets.

– There are no family members to pass on the business Realisation of personal wealth to pursue other business or personal interests.

– Expectation of future profit erosion within increasingly competitive environment.

Unplanned.

– Health issues, such as illness or death.

– Financial difficulties, either within and external to the business.

– Divorce, family split up or other change in personal circumstances.

– Partnership/shareholder dispute or divergent shareholder objectives.

-Opportunistic approaches by potential acquirers.

– Loss of a major customer, comprising a significant part of the business.

Whether a business sale has been planned for some time or is the course of action decided upon in response to particular circumstances, the outcome will almost certainly be better if the business has been well prepared for sale.

In order to ensure that your business is positioned to achieve an optimal outcome on sale, the following eight key issues should be addressed:

1. Establish a clear competitive edge.

The value of your business will be considerably enhanced if you are able to demonstrate a clear competitive advantage in a particular niche or market segment, leading to more sustainable margins, greater customer retention and an increased ability to win new business.

This means understanding where the core capabilities of the organisation and its management lie, aligning these two areas of market opportunity, and repositioning the business if necessary to develop a clear and sustainable competitive advantage within these areas. This can be a major undertaking, which may take several years to achieve. However, in the absence of a competitive advantage, potential purchasers may view your business not as a strategic acquisition, but simply as the opportunity to achieve rationalisation benefits through adding production capacity – a far less valuable proposition in an industry suffering from overcapacity.

2. Ensure adequate strength and depth of management.

Many businesses rely heavily on the business owner or a small management team. If you intend to leave the business following the sale, you will need to ensure that the business is able to operate without you and that the ongoing management has the desire, energy, ability and commitment to take the business forward in an increasingly difficult environment. Generally, a business owner should progressively step back from the business over a period of at least 18-24 months prior to the anticipated date of sale, handing over key relationships and responsibilities to other members of the management team. Also, the reporting line to you must be established on the operations of your company in a regular time frame. By taking this action you will receive a better price for your business.

There is also a need to assess whether there are talented and committed people in the wings to become the next generation of managers, to ensure as far as possible that the business is not reliant on one or two people. If particular individuals are key to the business, it may be advisable to align their interests with yours by offering a bonus linked to a successful sale of the business, or indeed an equity stake.

3. Mitigate risk of customer losses.

If your business is overly reliant on one or two major customers, it may detract significantly from the value placed on your business by a purchaser or investor. This is particularly so if your product or service is not differentiated and/or the customer relationship is not secured through a contract or by other means, such as being the provider of an end-to-end solution closely integrated with the customer’s own business processes.

In order to limit the risk of customer loss on the business and provide a purchaser with greater comfort in relation to future revenues, consideration should be given to entering into contractual arrangements with major customers, whilst greater diversification may also need to be built into the customer base to reduce the financial impact of the loss of any single customer.

4. Eliminate personal transactions.

In presenting financial information to a prospective purchaser, it is advisable to eliminate non arm’s length transactions between the business and its owner (and related parties of the owner), in order that the financial statements reflect the true underlying performance of the business. For example, personal expenditure incurred by the business should cease, any transactions with the business owner or affiliates, should be on an arm’s length basis, personal assets such as expensive cars or yachts, should be extracted from the business, and the employment of any family members should continue only if they are paid a market salary for duties actually undertaken within the business.

The existence of complex or undisclosed arrangements such as these not only distorts the reported financial performance of the business, but also can significantly undermine the confidence of a purchaser in the reliability of the information provided.

5. Ensure robust Management Information Systems.

Having a management information system that provides timely, accurate and relevant information both improves the quality of decision making and provides a potential purchaser with considerable comfort with regard to the way in which the business is managed. It is fundamental to costing and pricing, the purchase of supplies, stock holding, work scheduling and the overall management of profitability and cash flow. This in turn should translate into management accounts ensuring that management keeps its ‘finger on the pulse’.

6. Review the state of financial records.

Of equal importance is maintaining the financial records in a healthy state and making sure that all statutory requirements are complied with within the required timeframes. Yearend financial statements that are easily reconciled to monthly management accounts, debtors and creditors ledgers, tax returns, etc without any surprises provide confidence to prospective purchasers, investors and financiers.

Additional confidence or surety is further gained when a business has been regularly audited. There is certainly a sense of greater corporate governance and acceptance of the figures presented by would – be acquirers.

7. Evaluate tax planning and structuring opportunities.

At the end of the day, it is what ends up in the pocket that matters most. With every sale, there are a raft of structural considerations and taxation implications which, all other things being equal, can make a substantial difference in the net cash received.

Often these considerations are left to the very end, resulting in a less satisfactory result being achieved. Planning well in advance can assist you in ensuring that the business retains valuable tax attributes (such as tax losses), and in establishing a structure which minimises the likely tax liability on sale.

8. Build a track record of profitability and cash flow.

Finally, the most important determinant of a business’s value from a purchaser’s perspective is its future earning capacity and ability to generate cash. Given that past performance is often used as a predictor, in the assessment of likely future performance, it is imperative that the business can demonstrate a track record of profitability and strong cash flows. Therefore, if this has not been the case, sufficient time may be required to rectify the situation.

Warning signs to purchasers

If your business displays one or more of the following characteristics, its value is likely to be impaired, even if there is a strong underlying business. – One or two customers comprise a large proportion of revenue. – All the knowledge and key customer relationships reside with the owner. – No ‘new blood’ coming up through the ranks. – Accounting records in a mess and not up to date. – No transparency between tax return and management accounts. – Extensive personal assets and expenditure within the business. – Fluctuating historical revenues and profits and unclear growth expectations. – No cash flow forecast and profitability projections.

Whether or not you plan on selling your business in the near future, a little planning and preparation can significantly enhance the likelihood of an optimal outcome when the time comes – bearing in mind that it may not be of your choosing. Grasp the opportunity now to make the business more attractive and increase its value to a purchaser you have nothing to lose and everything to gain!

Maximising The Value – in Your Business………

Preparing Your Business For a Successful Sale

Eight Ways to Optimise the Sale of Your Business

`Selling/Buying Your Business Successfully`

Realise – Your Business – Your Future – Your Potential!

Plus, information on obtaining guides on:

`Buying a Business` and `Due Diligence Guide`

“ An Investment in Learning, gaining Knowledge and Skills Pays the Best Interest for You”
Colin Thompson

“The bitterness of poor quality remains long after the sweetness of low price is forgotten.”  –  Benjamin Franklin

Introduction: Making Strategic Tech Investments Without Breaking the Bank

Most SME CEOs understand that technology is no longer a luxury – it’s a critical enabler of growth. But when budgets are tight and every investment competes with short-term operational needs, tech spending can feel a bit like a ‘grudge purchase.’

In the previous article, The CEO’s Digital Transformation Roadmap: Driving Sustainable Growth on a Sensible Budget, we explored how digital transformation isn’t about blowing the budget but about making deliberate, value-based choices. The response to that piece was encouraging, but one recurring question stood out: “I understand the importance of investing in scalable technology, but how do I do that without overstretching the business right now?”

That’s the central tension many leaders face – you’ve got big ambitions, often expressed in a BHAG (Big Hairy Audacious Goal), but limited cash flow to fund the journey. This article helps you bridge that gap. It’s not about finding the cheapest options; it’s about making smart, strategic investments that align with your long-term growth plan while being realistic in the short term.

We’ll explore a phased, intelligent approach to building a tech stack that is both affordable today and powerful enough for your vision of tomorrow. This journey covers everything from foundational software choices that enable future business diversification to the practicalities of equipping your team with the right hardware. By the end, you will have a clear framework for making a strategic tech investment that respects your cash flow while aggressively pursuing scale.

Related Article: 

• The CEO’s Digital Transformation Roadmap: Driving Sustainable Growth on a Sensible Budget

The Tech Investment Mindset: Moving Beyond “Penny Wise, Pound Foolish”

If you’re still looking at technology as a cost centre rather than a strategic growth lever, it’s time to reframe that thinking. A smart technology investment isn’t just about tools – it’s about enabling your scaling business to run faster, leaner, and more profitably.

The old adage “penny wise, pound foolish” (and, in South Africa, “Goedkoop is duur koop.”) applies here. While cutting corners might relieve short-term pressure, it often leads to inefficiencies, security risks, bottlenecks and overhauls down the line – all of which can end up costing considerably more than the original smart investment would have done.

This concept is echoed in The Art of Scale, where Jason Goldberg highlights the power of simple, scalable systems and keeping overheads low. It’s about designing your operation to match the business you want, not just the one you have.

As I discussed in previous articles on the topic, scalable technology forms the backbone of any sustainable expansion.

The goal is to build a tech stack that doesn’t just serve today’s needs but supports your diversification roadmap, from product diversification to market diversification, as your business matures.

Related Articles: 

• Tech-Enabled Triumph: How You Can Leverage Technology for Unprecedented Growth
• Scaling for Success: Unleashing Growth and Profits in Your Business

Managing Cash Flow While Scaling: Short-Term vs Long-Term Tech Investments

One of the most common reasons SME leaders delay digital investment is cash flow pressure. Understandable – but avoidable with the right planning.

You don’t need to implement everything at once. The key is to treat your technology as a layered journey rather than a one-off expenditure. Prioritise high-impact areas and provide a strong lifetime ROI first – the ones that directly improve efficiency, revenue, or risk management. We looked at how to do this using the ‘Impact vs. Affordability Matrix’ introduced in the previous article.

Some tactics to help balance this include:

• Phased rollouts: Implement systems in stages. Start with core business operations and scale from there.
• Subscription-based solutions: Avoid large upfront costs by choosing SaaS platforms with monthly billing.
• Leasing instead of buying: Particularly relevant for hardware and infrastructure. More on that later.
• Outsourcing instead of hiring: We’ll explore this in more depth shortly.

As we’ve looked at in previous articles, managing your outflows while supporting strategic growth is crucial for long-term growth and sustainability.

In the next section, we’ll break down where to start when constructing a scalable tech stack.

Related Articles: 

• Mastering Cash Flow: The Lifeblood of Your Business
• Mastering Financial Management: Essential Strategies for Long-Term Business Success

The Foundational Pillars: Phased Investments for Sustainable Growth

You wouldn’t construct a skyscraper on a makeshift foundation – so why build your business tech that way? Strategic technology investment begins with the basics: infrastructure that supports your business diversification, resilience, and future expansion.

Your decisions should be guided by the ‘Impact vs. Affordability Matrix’ discussed previously. You are not building for the business you have today, but are building the foundation for the business you intend to lead in three to five years.

Here are the three essential pillars of a solid, scalable tech foundation:

Pillar A: Cloud vs On-Premise – The Capex vs Opex Decision

For most scaling businesses, this is an early, critical decision. It is a choice between a large, one-time Capital Expenditure (Capex) to buy and house your own servers, and a predictable, monthly Operational Expenditure (Opex) to use a cloud provider’s infrastructure.

• On-Premise (The Old Way): Involves buying physical servers, networking equipment, and software licenses. It requires a secure, climate-controlled space and, generally, dedicated staff for maintenance and upgrades.
  • Pros: Total control over hardware and data.
  • Cons: Big upfront cost, high ongoing maintenance burden, limited scalability without further large investments, risk of obsolescence.
• Cloud (The Modern Way – e.g., AWS, Azure, Google Cloud): Involves “renting” computing power, storage, and software from a provider.
  • Pros: Minimal upfront cost, predictable monthly billing, infinite scalability (pay for what you use), enterprise-grade security, reliability, and data integrity, reduced internal maintenance burden.
  • Cons: Can lead to higher long-term costs if not managed carefully, less direct control over physical hardware, reliance on internet connectivity.

The CEO’s Verdict: For over 95% of SMEs focused on growth, the cloud is the unequivocal winner. It converts a huge, risky Capex into a manageable Opex, preserving precious cash for other growth initiatives. It provides the agility needed to support a scaling business.

Pillar B: The IT ‘Department’ – In-House vs Outsourced/Fractional

The next pillar is people. Who will manage, secure, and support your technology?

• In-House Team: Hiring your own IT staff.
  • Pros: Deep knowledge of your specific business needs, immediately available on-site.
  • Cons: High fixed cost (salaries are a major liability), knowledge is often limited to the expertise of a few individuals, significant key-person risk if they leave.
• Outsourcing (Managed Service Provider – MSP): Partnering with an external company to manage your IT.
  • Pros: Access to a broad team of experts for a predictable monthly fee, 24/7 support, removes the management burden from you.
  • Cons: Can sometimes feel less integrated into your company culture, response times may vary depending on the service level agreement, may require internal liaison for strategy.
• The Fractional Model (The Smart Hybrid): This is an increasingly popular option for scaling businesses. It involves engaging a part-time, or “fractional,” Chief Information Officer (CIO) or Chief Technology Officer (CTO) to define your high-level strategy. This strategic leader then typically works with an MSP who handles the day-to-day tactical execution and support.

The CEO’s Verdict: The Fractional / MSP model offers the best of all worlds. You get C-suite strategic guidance to ensure your strategic tech investment aligns with your business goals, combined with the cost-effective, expert execution of an MSP. It’s how you get the strategy right before you spend a single cent and aligns perfectly with the principles outlined in The Art of Scale – keeping fixed costs down while gaining expert capability.

Pillar C: Core Systems First – The Heart of Your Business Tech Stack

The temptation to jump into shiny new apps is strong – but resist it. Your core systems are what drive your business. These should be your first investments.

1. Finance/ERP System: This is your source of financial truth. It manages invoicing, general accounting, payroll, and reporting, giving you the data needed to make sound decisions.
2. Customer Relationship Management (CRM) System: This is the engine of your revenue vehicle. It manages your sales pipeline, tracks customer interactions, and provides invaluable data for growth and retention.

These systems are the non-negotiable foundation. They generate and manage the critical data that fuels every other business function and informs your entire diversification strategy.

Imagine trying to manage a sports team without a scoreboard, or to be a player without knowing how you’re doing. These systems provide those scoreboards, keeping everyone engaged, motivated and on track. Choosing robust, scalable solutions for these two pillars is the most important strategic tech investment you will make in your early growth stages.

You can then integrate advanced systems like tools for analysis, automation, and innovation as you grow and your cash flow allows.

Related Articles: 

• Future-Proof Your Business: Top Technology Trends for Growth in 2025 and Beyond 
• Fortifying Your Business through Risk Mitigation and Resilience: A CEO’s Strategic Blueprint
• Navigating the Data Privacy Maze: A Practical Guide for SMEs

And for more on scoreboards, see Chapters 16 and 18 in ‘The Art of Scale.’

Equipping Your Team: A Practical Hardware Strategy

Your core systems are the engine, but your people are the drivers. The hardware they use is no longer just a tool; for many, it is their primary workplace. A haphazard, “buy-what’s-on-sale” approach to hardware creates inefficiency, security holes, and support nightmares. A strategic approach, however, builds a secure and efficient platform for your team, enabling productivity and safeguarding your business.

The Power of Standardisation

The single most effective hardware strategy for a scaling business is standardisation. Choosing one or two core laptop models simplifies everything:

• Support: Your IT support (whether in-house or an MSP) becomes exceptionally efficient, as they only need to master a limited set of devices.
• Procurement: Bulk purchasing or leasing agreements become simpler and more cost-effective.
• User Experience: Everyone has a consistent, reliable experience, and new starters can be onboarded faster.
• Security: A standard configuration allows you to deploy security policies uniformly, dramatically improving your company’s resilience.

A simple and effective model is a tiered approach:

• Tier 1 (The Workhorse): A standard, reliable laptop for the majority of staff (admin, sales, project management). Focus on battery life, portability, and proven reliability over raw power.
• Tier 2 (The Power User): A high-performance machine for those with specific needs like developers, graphic designers, or data analysts. Focus on processing power, RAM, and graphics capabilities.

Funding the Fleet: Leasing vs. Buying

This is another crucial cash flow decision.

• Buying: A large upfront Capex that can strain resources. You also bear the full cost of repairs and replacements outside of warranty.
• Leasing: Converts the hardware cost into a predictable monthly Opex. It often includes maintenance and simplifies refresh cycles, ensuring your team always has modern equipment without large capital outlays.

For most scaling businesses focused on preserving cash for strategic growth, leasing is the superior financial option.

New vs. High-Quality Refurbished

A savvy strategic tech investment can involve high-quality, business-grade refurbished machines. Reputable suppliers offer certified devices with warranties, often providing 80% of the performance for 60% of the cost. This can be a smart choice for Tier 1 users, but ensure you partner with a trusted vendor. The potential downside is a shorter overall lifecycle, so weigh the immediate savings against a potentially faster refresh cycle.

Lifecycle Management

A device policy is incomplete without a plan for its entire life. For a typical 3-4 year refresh cycle, this includes a clear process for handling repairs together with a decision on whether to take out maintenance contracts or self-insure, and – critically – a secure disposal plan with data wiping to at least GDPR standards. Simply throwing old laptops away is a data breach waiting to happen. Furthermore, having a responsible e-waste policy is increasingly important for your company’s brand and environmental credentials. Clear procedures for lost or damaged devices are also essential to your risk management and resilience strategy.

The BYOD (Bring Your Own Device) Dilemma

The idea of having employees use their own laptops seems like the ultimate cost-saver, but it is a classic “penny wise, pound foolish” trap.

• Pros: Zero hardware cost to the company.
• Cons: A security and support disaster. You have no control over the device’s security status, software updates, or what other applications are installed. Data ownership becomes a nightmare when an employee leaves. Reports from cybersecurity organisations consistently show that unsecured personal devices are a major vector for data breaches.

The CEO’s Verdict: For any business serious about security, scalability, and protecting its intellectual property, a formal BYOD policy for laptops is strongly advised against. The risks far outweigh the perceived savings.

Mobile Phones and Tablets

For staff needing constant access to company systems on the move, personal phones present the same risks as BYOD laptops. The two primary models for offering these staff a specific device for business use are:

1. Company-Provided: Offers maximum control, security, and data integrity.
2. Stipend/Allowance: Provides employees with flexibility but requires a robust Mobile Device Management (MDM) policy to enforce security standards on their personal devices.

As with laptops, a clear lifecycle management plan for these devices is crucial, and the use of personal phones or other mobile devices for company systems access should be strongly discouraged. In general, the company-provided approach will ensure greater security and fewer support issues.

Related Articles: 

• Protecting Your Crown Jewels: Safeguarding the Intellectual Property of Your Business
• “Cyber Crime is the Greatest Threat to Every Company in the World.” – Ginni Rometty

The Human & Security Layer

You have now established your foundational systems and equipped your team. The final layer connects this technology to your people and culture, enabling effective ways of working while mitigating risk. Your technology choices are what make a flexible work culture possible.

Enabling Hybrid & Remote Work

A strategic tech investment in cloud systems and standardised, company-managed laptops is the prerequisite for effective remote work. However, it is not a one-size-fits-all solution. Different roles require different approaches: for example, manufacturing and warehouse staff are necessarily on-premise, while a sales team can thrive with remote flexibility.

The non-negotiables for any employee working outside the office are simple but critical: a solid, company-managed device (laptop / phone), secure VPN access, and encrypted communication tools. These are the basic building blocks for creating a secure and productive distributed team, forming a key part of your business’s resilience strategy.

But how do you build a cohesive team when they are not in the same room? I cover this in more depth in Culture Without Borders: Building a Strong Hybrid Work Culture.

Security: The Unseen Foundation

Every device connected to your network is a potential vulnerability. This isn’t just about antivirus software; it is a strategic issue. Now that you have the right technology in place, new questions arise: How do you ensure it remains secure? How do you train your people to be the first line of defence, not the weakest link? What is your response plan when – not if – a laptop is lost or stolen, or a security incident occurs? Are these issues on your Risk Register?

These questions are fundamental to protecting the value you are building. Simple measures like enforcing full-disk encryption (for example, BitLocker on Windows, FileVault on Mac), a company VPN, and full, company-managed antivirus software on all laptops are no longer optional. So is theft insurance – not just for replacement costs but for mitigating data breach risks.

This is the next frontier of strategic management, which we will address in a future article in this series.

Related Articles: 

• Culture Without Borders: Building a Strong Hybrid Work Culture
• Fortifying Your Business through Risk Mitigation and Resilience: A CEO’s Strategic Blueprint

Conclusion: Building Your Technology Roadmap

Balancing long-term vision with short-term reality is the art of leadership. When it comes to technology, this means making deliberate, phased choices. A successful strategic tech investment roadmap is not about buying everything at once; it is about building a strong foundation and adding layers intelligently.

It is a journey that prioritises predictable operational costs over large capital risks (Cloud, Leasing), leverages external expertise to get world-class support affordably (MSPs, Fractional CIOs), and creates strength through consistency (Hardware Standardisation).

Building a scaling business is a marathon, not a sprint. Your technology spending should reflect that. By making smart, strategic investments in the right foundational pillars and equipment today, you are laying the groundwork for a thriving, valuable, and resilient company tomorrow. You are building the business you envisage, not just the one you run today.

Technology doesn’t have to break the bank – but being underprepared can break your business.

Next Steps:

Take a fresh look at your current tech environment. What’s essential? What’s outdated? What needs to scale? Then create a roadmap that aligns your tech decisions with your business vision and budget.

It’s your turn now:

What technology investment do you believe will yield the most significant return for your business in the coming year?  I’d love to hear your thoughts in the comments, or feel free to drop me an email directly.

FAQs – Top 10 Questions About Strategic Tech Investment:

1. How do I prioritise tech investments when everything feels urgent?

Start with what impacts revenue, customer experience, or operational efficiency, and consider lifetime ROI. Use an Impact vs Affordability matrix to guide decisions.

2. Should we buy laptops or lease them?

Leasing helps cash flow and ensures equipment remains current. Buying can work if capital is available and you’re managing refresh cycles internally.

3. My team is small. Do I really need a CRM now?

Yes. Starting with a CRM early is one of the most impactful decisions you can make. It instils discipline in your sales process from day one and begins building your most valuable asset: clean, structured customer data..

4. Is outsourcing IT support really cost-effective?

Yes – especially for scaling businesses without complex systems. You gain access to a broader skill set at a lower fixed cost.

5. Do cloud systems really save money in the long run?

They do for most businesses, especially SMEs. Cloud reduces Capex and ensures scalability with predictable Opex costs. And Total Cost of Ownership (TCO) for on-premise systems adds up quickly when all costs are factored in.

6. What is a ‘Fractional CIO’ and when should my business consider one?

A Fractional CIO is a part-time, experienced C-level technology strategist you engage on a contract basis. You should consider hiring one when you are making significant tech decisions but are not yet large enough to justify a full-time, six-figure CIO salary. They are invaluable for defining your tech roadmap, selecting core systems (like ERP/CRM), and managing your MSP, ensuring your tech spend delivers maximum ROI.

7. How do I ensure tech investments align with my scaling & diversification strategy?

Evaluate every system and device against your scaling ambitions and diversification roadmap – will it scale with you and support business, product, or market diversification as you grow.

8. Are refurbished laptops a good idea?

Yes, if sourced from a reputable supplier with warranty. Ideal for standard use roles.

9. Should we provide work phones or give staff allowances?

Work phones offer better control. Allowances provide flexibility but must be governed by clear policies.

10. How do I choose a good Managed Service Provider (MSP)?

Look beyond price. Ask for client references in your industry. Scrutinise their Service Level Agreements (SLAs) for response and resolution times. Ensure they have deep expertise in cybersecurity. A great MSP is a strategic partner, not just a helpdesk; they should be proactive, offering strategic advice to improve your systems and resilience.

In a previous blog, I wrote about the global rise in export restrictions on critical raw materials.  In the modern world of greatly increased geopolitical tensions, securing reliable access to critical minerals is becoming a key economic security consideration, vital to the success of the energy transition. However, currently, more than half of energy-related minerals are subject to some form of export controls and those restrictions are increasing in number and expanding in scope to cover not just raw and refined materials but also processing technologies, with implications for the smooth functioning of global supply chains.

The Role of Electric Vehicles in the Energy Transition

Electric vehicles play a vital role in reducing oil demand – and hence carbon emissions.  According to the IEA, in 2024, EVs displaced over 1.3 mb/d of oil in 2024 (equivalent to Japan’s entire transport sector oil demand today) – a 30% year-on-year increase. By 2030, EVs are projected to displace over 5 mb/d of diesel and gasoline.  Their impact on electricity demand is equally remarkable.  According to the same IEA report, in 2024, EVs globally consumed around 180 TWh of electricity (more than the annual electricity consumption of Argentina), representing a 60% increase on 2023.   

So Electric vehicles are key to the success of the energy transition.  And key to the success of the EV revolution is creating and maintaining access to reliable supplies of those rare earth metals and minerals on which EVs and their batteries depend (as well as the power lines, transformers, transmission cables and wind turbines that will create and transport the electricity). According to the IEA, EV battery deployment and storage applications, construction and the electrification of grids and industrial equipment between 2024-2040 will drive a fivefold increase in lithium demand; a doubling in demand for graphite and nickel; a 50-60% increase in demand for cobalt; and a 30% increase in demand for copper.

Mining Investment Response to Demand Signals – Perhaps too Effective?

The IEA calculates that the investment needed to meet this demand will be around USD 500 billion in new capital investment in mining between now and 2040, reflecting not only the scale of demand growth, but also the increasing capital intensity for new projects, driven partly by declining ore quality, particularly in more mature markets such as copper. 

The mining sector has already responded efficiently to this demand signal, with the production increase of battery metals at twice the typical rate seen in the late 2010s highlighting the sector’s ability to respond to demand signals more quickly than has been possible for ‘traditional’ metals (like copper and zinc). However, major supply increases in China, Indonesia and the Democratic Republic of the Congo have resulted in significant price reductions – lithium has fallen by over 80% since 2023, with graphite, cobalt and nickel prices falling by between 10 – 20% in 2024.

Whilst these price decreases are welcome in the short term, making batteries cheaper and bringing down the overall price of an electric car, they are not providing the right price signal to incentivise longer-term investment (lithium mines take an average of 16.5 years to develop).  Despite projections showing increased demand into the 2030s, mining spending only rose by 5% in 2024 (down from 14% in 2023).  And, although exploration spending continued to rise for lithium, uranium and copper, it declined for nickel, cobalt and zinc. The IEA’s projections show serious gaps between demand and supply by 2040 – depressing reading for those of us who believe that the energy transition cannot go fast enough.

Raw Materials and Processing is Overly Geographically Concentrated

And, unfortunately, the bad news does not stop there. The concentration of rare earths and metals in both mining and processing sectors has continued apace.  The average market share of the top three mining countries for key energy minerals rose from 73% in 2020 to 77% in 2024 and the average market share of the top three refining nations increased from 82% in 2020 to 86% in 2024 with 90% of supply growth coming from single suppliers – Indonesia (for nickel) and China (for cobalt, graphite and rare earths).

The geographical concentration of mining and refining poses a severe risk to global supply chains.  A few figures demonstrate this fragility.

• 93% of global lithium is mined in Australia, Chile, China and Argentina.
• 50% of global nickel is mined in Indonesia.
• 66% of global cobalt is mined in the DRC.
• 80% of global graphite is mined in China.

• 65% of global lithium is refined in China (and another 25% in Chile).
• 60% of the world’s nickel is refined in China and Indonesia.
• 75% of all cobalt is refined in China.
• 90% of the global graphite supply is refined in China.
• 84% of the world’s nickel is refined in China.
• 90% of the world’s RRE is refined in China.
• China produces 80% of global battery cells (even if all the other giga-factories come on line, China’s market share will only decline to 70% by 2030).
• China supplies almost 85% of global cathode active materials.
• China supplies over 90% of anode active materials.
• China controls 80% of lithium hydroxide output.

Global Lithium Supply is Constrained.

Lithium is key to the continued growth of the EV sector – demand is projected to grow by 500% by 2040. In 2023 annual demand for lithium was approximately 180,000 tons (a 27% increase on 2022).  In 2024, annual demand for lithium rose to 220,000 tonnes (a 29% increase on 2023).  The rate of lithium production increase is slowing and production is only just keeping pace with demand – 204,000 tonnes in 2023 (an increase of 23% from 2022) and 240,000 tonnes in 2024 (an 18% increase from 2023). The IEA projects that lithium demand will reach 700,000 tonnes by 2035, with supply from existing and announced mining projects only meeting 60% of that projected demand.

Given the efficacity of EVs in hydrocarbon displacement, they have become central to the energy transition. Reaching Net Zero by 2050 will require the production of around 2 billion EVs, which will require 16-20 million tonnes of lithium – or 100 million tonnes of lithium carbonate equivalent (LCE).   Since estimates of total global lithium supply hover around 22 million (105 million tonnes of LCE), there will be a severe supply crunch by the middle of the next decade, a crunch compounded by the fact that over half of today’s lithium production is in areas with high water stress or in areas liable to flooding (it takes 2.2 tons of water to make a ton of lithium).

The supply outlook for cobalt and copper is similarly alarming, with existing mines and projects under construction estimated to meet only 50% of projected cobalt requirements and 80% of copper needs by 2035.

What does this mean for Electric Vehicles?

According to the IEA, a typical EV requires six times the mineral inputs of a conventional car – a battery-electric vehicle contains around 207 kg of critical minerals (copper, lithium, nickel, manganese, cobalt, graphite, rare earths), compared to around 30–40 kg for a conventional vehicle, so a reliable supply of these materials is essential to the success of the EV industry.  

And the EV market is growing fast. In 2024, globally, over 17 million EVs were sold – a year-on-year increase of 25%. To give those figures some context, the difference between EV sales in 2024 and EV sales in 2023 was 3.5 million.  This difference is greater than the total number of electric car sold in 2020.  China continues to be the main driver (pardon the pun) of this growth, with annual EV car sales up by 40% in 2024 (again, to put that figure in some sort of context, the 11 million EVs sold in China last year is greater than the entire number of EVs sold worldwide in 2022).  In 2021, China accounted for half of global electric car sales.  By 2024, that figure was almost 66%, with EVs accounting for almost 50% of new cars being sold in China. By contrast, in Europe EV sales accounted for only about 20% of new car sales as sales growth slowed due to the phase out and reduction of subsidies and the lack of change in EU CO₂ targets for cars between 2023 and 2024.  There were some notable exceptions – in the UK 30% of all new cars sold in 2024 were EVs, up from 24% in 2023. And in Norway, the figure has reached 88%. EV sales growth in the US continued, but at around only 25% of the growth in 2023.  Interestingly, outside China, the EU and the US, EV sales grew by 40% in 2024, reaching 1.3 million new cars – just shy of the 1.6 million new EVs sold in the US in 2024.  

Electric vehicle demand obviously has an impact on battery demand, with EVs accounting for around 90% of the 1 TWh of battery demand recorded in 2024 (to put that figure in context, one average week’s demand in 2024 exceeded the total demand for an entire year in 2014).  By 2030, demand is projected to triple to reach 3 TWh, but current plans for 282 new giga-factories to come online worldwide by 2031, which would add around 5.8 TWh of additional battery capacity.

Since the most major component (and therefore cost) of an EV is its battery, the impact of raw material surpluses (and the projected future shortfall) is crucial for EV manufacturers. As noted above, high lithium supply levels pushed prices down in 2024 – prices for lithium-ion battery packs fell 20% in 2024, despite lithium demand in 2024 being about six times bigger than in 2015.  The low prices not only send an unhelpful price signal for longer term investment (introducing supply shock risk), but they also disincentivise new market entrants, which increases the level of raw material production concentration among established players.  And for EV producers, the high geographical and ownership concentration of processing in their supply chain increases the geopolitical and market distortion risk.

Although there are alternatives to lithium-ion batteries in the shape of sodium-ion and solid-state batteries, the technology is not (yet) widespread enough to reduce the risk of lithium under-supply to the market in the middle of the next decade.  And, whilst battery recycling will play a role in curbing cost increases, limitations on feedstock mean that it will take at least a decade until recycling plays a major part in reducing primary mineral demand – and even then, the IEA calculates that recycling used batteries would only could cut lithium supply requirements by about 10% by 2040.

And growing political risk is already exacerbating these supply side risks. Governments increasingly identify rare earth elements (RRE) and minerals as strategic industries, crucial to national security and are accordingly devising strategies to protect their national interests.  The rise of economic nationalism will do nothing to slow this phenomenon. The Australian government  established funds to support companies breaking into the market; the UK published its Critical Minerals Strategy in July 2022; and the EU’s Critical Raw Materials Act is aimed at stimulating EU production; designating key strategic projects for accelerated permitting; creating a one-stop shop for project authorisations; and encouraging measures to speed up national legal processes.  Access to raw materials became a flashpoint in the trade dispute between the US and China.

Conclusion

Electric vehicles have a vital role to play in the energy transition as the only realistic alternative to hydrocarbon transport that can currently be deployed at scale. Their efficacity at displacing diesel and petrol is already apparent.  However, EVs face a growing number of inter-related issues which potentially threaten their ability to play that role in the longer term.

Rising geopolitical tensions that increasingly characterise modern international relations (from invasions and border disputes in Europe, the Middle East and Asia, coup d’etats and rising Russian influence in the Sahel, to US-China economic and diplomatic strains) mean that competition for access to critical raw materials will increase – an acute competition which will be exacerbated by the coming supply crunch in the critical materials necessary for producing EV batteries. The geographical concentration of both production and processing compounds the geopolitics, not least as access to critical raw materials becomes a national security issue.  On top of these inter-connected risks, as producer countries seek to move up the value chain, export of (and therefore access to) critical raw materials will be affected, with Western companies increasingly caught in the cross-fire and subject to mis-and dis-information campaigns by hostile state actors seeking to ingratiate themselves with producer state governments in order to displace Western companies with their own.

Given this daunting combination of geopolitical and supply chain risks, it would not be surprising to find that the lifespan of EV market-dominance is limited.  Indeed, the compounding of risk suggests that, by the middle of the next decade, demand for alternative zero-emission vehicles, including hydrogen-powered cars, may overtake EV demand, meaning that the hundreds of millions of dollars of investment in bringing EVs to the market may face a much shorter pay-back period than had originally been envisaged by investors.

This fearsome combination of factors has significant implications for EV producers, miners and consumers alike.  Being able to navigate these ever-more complex geopolitical waters will mean the difference between commercial success and failure.

As the energy transition gathers pace, the need to access the essential raw materials which underpin it is also accelerating.  Some basic statistics evidence this demand:

• An electric car needs six times more rare earth minerals than a conventional vehicle;
• An onshore wind plant needs nine times more materials than a comparable gas facility;
• Between 2017 and 2022, the energy sector drove a tripling of global demand for lithium, whilst demand for cobalt and nickel rose by 70% and 40% [i] respectively;
• Between three to 6.5 billion tonnes of transitional minerals will be needed over the next three decades if the world is to meet its climate goals[ii].

The current and future global demand for transitional metals and minerals offers a potentially huge economic opportunity[iii]. This is particularly the case for Africa, where more than 50% of the world’s cobalt and manganese, 92% of its platinum and significant quantities of lithium and copper are to be found. Almost all of the continent’s current output is presently shipped as ore for processing in third countries (primarily China), meaning the potential economic benefit of this enormous mineral wealth has not filtered through to the real economics in its African source countries[iv].  Africa exports roughly 75% of its crude oil, which is refined elsewhere and re-imported as (more expensive) petroleum products; and exports 45% of its natural gas, whilst 600 million Africans have no access to electricity (approximately 53% of the continent’s population)[v].

A number of African governments have expressed their determination to avoid repeating the ‘resource curse’ mistakes of the past, by using the continent’s natural resources to drive domestic economic growth, while creating meaningful domestic job opportunities, rather than exporting them and the consequent economic growth elsewhere.  This approach has led a number of African countries to impose export restrictions on raw minerals; promote domestic processing; and demand that agreements with third countries promote technology transfers and improve domestic processing capacities and workforce skills.

Whilst African countries are absolutely right to want to retain more of the commercial and economic benefit of their natural resources for the development of their own countries, rather than enriching third-party processor nations, the move to protect national resources in this manner has coincided with a global move towards protectionism and a rise in great-power competition which has made the race for the raw materials necessary to power the energy transition even more acute.  This competition can be seen in President Trump’s ‘interest’ in the natural resources of Greenland, Canada and Ukraine.  And in the tense negotiations which have played out in London over the past few days between the US and China over access to processed critical minerals. 

And as the Great Power competition heats up, there is a growing risk that Western extractives companies become collateral becoming leverage.  Russian influence in the Sahel Region of Africa has already been effective in pushing Western companies out and replacing them with Russian companies.  There is some evidence of Chinese government influence in other parts of Africa pursuing a similar path, using influence which ranges from disinformation campaigns aimed at damaging companies’ reputations and bottom-lines, to offers of ‘no-strings-attached’ mining contracts which are not subject to (Western-imposed) compliance and BHR requirements.

Sustainable use of transition minerals

But, leaving geopolitical machinations aside for a moment, and returning to equitable access to resources there is a story to also tell about how African governments are planning to avoid a new ‘Scramble for Africa’ and secure the benefits of the demand for critical raw materials and rare earth minerals for the development and economic progress of their own countries.

In February 2024 a Resolution to promote equitable benefit-sharing from extraction and calling for the sustainable use of transitional minerals was presented UN environmental assembly in Nairobi. The Resolution, which was supported by a group of mainly African countries including the DRC, Senegal, Burkina Faso, Cameroon and Chad, was described as being ‘crucial for African countries, the environment and the future of [African nations’] populations.”[vi] The UNSG in a press release[vii]  dated 26 April, 2024 noted and accepted the importance of using the energy transition and the race to secure the raw materials critical to its success to ‘create jobs, diversify economies, and dramatically boost revenues’ in resource-rich developing countries.

And (quite rightly) many African countries are not waiting for the West’s permission, but have already taken steps to protect their natural resources and move up the processing value chain[viii].   This trend is only likely to accelerate.

African Protection of Natural Resources

Tanzania

Under its 2017 The Natural Wealth and Resources (Permanent Sovereignty) Act[ix], every company extracting natural resources in Tanzania must give the Government a minimum of 16% free carried interest. The law also gives the government the right to acquire more shares based on the level of investment and strategic importance of the project — up to 50% or more in some cases.  The 16% share provision gives Tanzania a say in decision-making, board representation, and direct profit-sharing from the mining companies.  This legal provision was the basis for the formation in January 2021 of the Kabanga nickel-cobalt project joint venture ensuring domestic ownership in a major, strategic battery-metal mine.

Zambia 

In January 2021, the state-owned mining firm ZCCM-IH took control of Mopani Copper Mines (previously majority-owned by Glencore) paying $1.5 billion to effectively nationalise the copper-cobalt operation. This move was designed to keep the strategic asset in national hands and secure more revenue for Zambia.

Burundi

In July 2021, the government suspended the operations of several foreign mining companies – notably Rainbow Rare Earths’ Gakara mine – citing “unbalanced” contracts and arguing that the State was not getting its fair share. At the same time, Burundi also halted rare earth concentrate exports (Burundi operates the only rare-earth minerals mine in Africa) and demanded contract renegotiations so that more profits benefit the country.  The Mines Minister commented that “The State, which owns the soil and minerals, is not making a profit as it should,” and set out an intention to ‘[re]renegotiate…these agreements for the benefit of the people, because these minerals must be used to finance the development of the country.’

Nigeria

In July 2022[x], Nigeria banned the export of raw-ore to (in the words of its Natural Resources Minister) end the “plundering (of) the continent for raw materials” by incentivising local processing or refining before exporting and “…bring industry to Africa so that our people can be employed.”

Zimbabwe

In December 2022, in response to a global boom in lithium demand, Zimbabwe banned the export of raw lithium ore. The Mining Minister announced that no lithium-bearing ores or unbeneficiated lithium could be exported without written permission, in order ‘to spur domestic value addition and battery manufacturing in Zimbabwe’.

In January 2023, the government extended the lithium ore ban to all unprocessed base mineral ores (including nickel, chromium, manganese and tantalite). Companies with local processing facilities are exempted, reflecting a policy to retain more mineral value domestically.

Namibia

In June 2023, Namibia’s Cabinet approved a ban on exporting unprocessed critical minerals, including crushed lithium ore, cobalt, manganese, graphite, dysprosium and terbium – although, with special ministerial approval, it is still possible to export small quantities of these minerals. The government noted that, with high global demand for battery metals, Namibia was determined to ensure that it recouped some of the value by requiring such minerals to be at least partially processed in Namibia. This ban is of particular concern to the EU, coming just eight months after the EU signed an MoU with Namibia aimed at securing the bloc’s access to rare earth minerals.

Namibia is also one of the world’s top uranium producers, but the ban does not appear to extend to uranium.

Ghana

In July 2023, Ghana’s government adopted a “Green Minerals Policy” (aka Minerals of the Future policy) that prohibits the export of raw lithium and other green minerals[xi]. The cabinet decision (July 27, 2023) aims to “retain a significant proportion of the value chain” in-country by mandating local processing before export.

In February 2024, Ghana’s President announced a further series of measures to extract greater value from its natural resources, including:

• the construction of a refinery dedicated to processing locally-produced manganese;
• a prohibition on the export of raw bauxite[xii] (following Indonesia’s 2023 bauxite export ban) lithium and iron ore;
• the prioritization of Ghanaian investors in acquiring Newmont Corporation’s Akyem gold mine[xiii] and Atlantic Lithium’s Ewoyaa lithium project;
• the creation of a 400-kilogram capacity gold refinery.

Botswana

In July 2023, Botswana renegotiated its mining rights with De Beers to increase the share of rough stones it receives, create a dedicated diamond fund to be used for investment in “additional value to the Botswana economy”;[xiv] and require De Beers to invest in and develop the domestic diamond valule-chain.

The Sahel

Since 2020, there have been coups d’états in Sudan, Mali, Burkina Faso, Guinea, Niger, Chad and Gabon. These seven countries are important sources of gold[xv], uranium[xvi], bauxite[xvii], manganese[xviii] and iron ore.

Niger

After seizing power in July 2023, the Nigerien military junta imposed a moratorium on all State export contracts, with the intention of reviewing them to ‘improve their commercial fairness’ – a provision which includes pegging prices of exported minerals to trading prices quoted on international bourses. In December 2024, the State back control of a French-operated Uranium mine, after having refused to renew its licence in June 2024.

Guinea

Since mid-2023, the Guinean Government has revoked, repossessed or cancelled over 220 mining licences for raw materials including bauxite, gold, diamonds, graphite, and iron.  These interventions have mainly targeted smaller operators and (so far) have been focused on under-developed or underperforming licenses. The Government has explained its actions as aimed at “freeing unused resources for other investors’ by reissuing those areas to more serious developers.  The government has also exerted pressure on major bauxite exporters to commit to building local alumina refineries. 

The pressure on mining companies appears to be part of Guinea’s push to ensure mining assets are actively exploited and contributing to the economy, rather than held speculatively. So far, the Guinean government has avoided the major operators, but it may feel emboldened by the lack of market reaction to take more aggressive action against them in the future.

Mali

In August 2023, the ruling junta enacted a new Mining Code allowing the state to take up to 30% ownership in any new mining project (10% free equity plus an optional 20% purchase within two years). The code also eliminated certain tax exemptions for foreign mining firms. While Mali is a major gold producer, the reforms were driven mainly by new lithium projects coming on-line (with, at 14% of continental production, Mali set to become Africa’s second largest lithium producer). The government has explicitly stated its intention to ensure that the sale of its lithium accurately reflects the value of the product on international markets.

DRC

In February 2025, the Democratic Republic of Congo – source of 78% of the world’s cobalt – announced a four-month ban on cobalt exports due to an “overabundance of supply on the international market,” with authorities hinting at possible longer-term restrictions (quotas, tariffs or extending the ban). Similarly with other decisions taken by African Governments, the decision reflects the DRC’s increasing desire to ensure that the country gains a greater domestic benefit from its raw materials production.  The four-month period expires later this month – it is still not clear whether the DRC Government will allow unrestricted export of raw cobalt following the expiry of the ban.

What is Driving this Phenomenon?

a. Geopolitics

Political uncertainty often complicates operating conditions for international mining companies.  Foreign mining companies are often portrayed as agents of foreign states, which can create difficulty in renewing contracts or obtaining permits.

Russia regularly hosts Russia–Africa Summits, at which it contrasts its no-strings “sovereignty” and security deals to those offered by Western companies/governments. Russia has leveraged (possibly fomented) insecurity in the Sahel, exchanging military backing and security support for minerals and encouraging the expulsion of Western troops[xix]. Russia’s willingness to undertake such transactional deals is only likely to increase the importance of its role in Sahel countries, whilst the growing links between China, Russia and Iran present serious security issues for Western governments – for example with regards to access to Uranium[xx].  This in turn may increase the complexity of operating in those countries as greater Russia involvement in Africa brings with it increased political risk.

Evidence of Russian interference against Western mining and extractives companies is strongest in The Sahel Region:

• Mali. Since the 2021 coup, Mali’s junta (backed by Wagner) has strongly pressured Western gold miners. In 2024 it detained Barrick Gold and Resolute Mining staff over contract disputes and seized gold stockpiles, forcing Barrick to freeze operations and pay a reported $438 million to resume mining. Wagner-linked operators encouraged Malian officials to nationalize or renegotiate lucrative gold contracts in favor of Russian interests.
• Niger. After Niger’s 2023 coup, the military government acted against French nuclear mining firm Orano. In July 2024 Niger revoked Orano’s permit at one of its uranium mines (for allegedly failing to resume production after militant attacks). This coincided with Russian state group Rosatom negotiating to take over Niger’s uranium assets. By late 2024 Niger’s mining minister was publicly courting Russian companies for uranium exploration.
• Burkina Faso. Burkina’s 2022 military government has shifted decisively away from Western partners. In April 2025 it awarded a new industrial gold licence on the Kourweogo (Niou) deposit to Russia’s Nordgold. This move, amid high gold prices, “signals deepening economic ties between Russia and Burkina Faso” and a pivot to Moscow over traditional Western allies.

But there is also evidence of growing Russian influence in resource nationalism decisions taken in other African countries:

• The Central African Republic.  Since 2018. Russian paramilitaries (the Wagner Group – now re-named the Africa Corps) have secured gold and diamond mining concessions in return for protecting CAR’s government in a form of State Capture where economic and political benefits flow to Russian-linked entities rather than the population.
• Sudan.  Since 2017, The Wagner Group have ‘protected’ gold, uranium, and diamond sites. Contracts, such as with “Meroe Gold,” grant Russian firms strategic mining access.
• Libya and Madagascar.  Russian paramilitary groups initially provided security and then subsequently acquired mineral assets — chromium in Madagascar and gold & diamonds in Libya.
• Mozambique. The Wagner Group (and subsequently the Africa Corps signed security agreements with the Governments, in return receiving mining and natural resource concessions (mainly in gold, diamonds, uranium, and rare earth minerals).
• Zimbabwe. The Government has been fairly explicit in replacing Western mining partners with Russian ones. In 2019 the government licensed only Russia’s state-controlled Alrosa (and China’s Anjin) to explore new diamond concessions, excluding firms like De Beers. The Mines Minister confirmed that De Beers and other Western companies were “not among those licensed” – a policy which effectively prevented renewal or extension of Western companies’ diamond licences and created space for Russian entrants.

b. African Solutions

However, in many other African countries where Governments have taken the decision to revoke, rescind or refuse licence renewal, the explication is domestic. African governments are keen to avoid the “resource curse” (by restricting or banning mineral exports) and move up the value chain (by boosting domestic processing) to increase domestic value extraction from mining and resource wealth.  From the perspective of the African government and society, this harder-nosed approach makes good sense in an era where, following agreement at COP28 to triple global renewables capacity and double energy efficiency, global demand for critical and rare earth minerals is only going to increase. Done right, it will ensure a better-educated and more economically-participative workforce, engaged in higher-value economic activities. And will avoid raw materials being exported for a low price and its processed final form being re-imported at a higher price (imposing both an unnecessary cost and loss to the local economy).

The approach is not without risk.  Foreign mining companies, whose expertise is arguably key to commercial success, will demand certainty about: political risk; the presence of mineral processing infrastructure (including freight and port facilities); a stable electrical supply; a battery value chain; reliable legal frameworks (including ESG protections); and sound financial management, ensuring effective use of tax revenues. Without those reassurances and the accompanying infrastructure, export bans could have a chilling effect on or divert foreign investment.  The DRC cobalt ban has already forced battery producers to intensify their research into alternative component materials.

International Support

The African Union is developing an African Green Minerals Strategy[xxi], which aims to improve mining regulation and institutions, and build a more attractive investment environment.   And some African countries have begun to cooperate across international borders to strengthen African collaboration in developing domestic processing expertise – in 2022 the DRC and Zambia signed an agreement to set up special economic zones in both nations for the development of EVs and batteries, backed by private and public funding in a bid to begin the shift from exporting to domestic processing.

A report[xxii] produced in August 2023 by the United Nations Conference on Trade and Development noted:

• the potential of African Nations’ mineral wealth to enable them to be key suppliers of automotive parts and components and encouraged them to make deals with automotive and battery producers to acquire technology and knowledge, while engaging in domestic processing to “… avoid being locked into the provision of ‘just’ raw materials, which results in very low-value integration into global supply chains.” 
• the importance of “equal terms of mining contracts and policies [in] catalysing lateral linkages between large-scale mining and local productive industrial development”;
• the important role of national incentives and regional cooperation in helping domestic companies gain competitive advantage in the mining sector.

In April 2024, the UNSG convened an international Pane[xxiii]l to address equity, sustainability and human rights across the value chains of critical energy transition minerals. The Panel was tasked with improving national management of mineral resources to ensure that increased demand for them does not ‘perpetuate commodity dependence, exacerbating geopolitical tensions’; and to help produce ‘globally agreed guidance to ensure responsible, fair and just value chains.’ The Panel’s Report, which was published in September 2024[xxiv] makes a series of recommendations for fairness, transparency, investment, sustainability and human rights, but along the entire minerals value chain, from refining and manufacturing to transport and end-of-use recycling.

The EU has begun to recognize it has an obligation (and a need) to act in this space to seek alternative mineral trade partners to China and Russia (and avoid a risk of supply disruption) and to help African countries benefit from their own raw materials.  In March 2023, the EU unveiled in its Critical Raw Materials Act, which aims to make the bloc less dependent on single suppliers by boosting EU mineral industries as well as offering African supply countries a more equal contractual footing through long-term raw materials and value chain partnerships.

Conclusion

Protectionism is on the rise around the world as the post-second world war political and economic consensus breaks down. Alongside this trend, the energy transition has unleashed a new scramble for green resources.  These two factors come together with particularly noticeable effect in Africa.  The collision of protectionism and the increasing need for access to green resources will impact most parts of the economy.  But it will affect mining companies most of all. The stakes are high, with the world’s major powers competing for resources and influence.  The outcome of this intense competition for resources will determine whether the energy transition is ultimately successful and the worst ravages of climate change can be avoided.  But to succeed, the energy transition must be a just transition – one from which African countries must benefit.    Resource nationalism without the necessary legal, financial and infrastructure investment could be counter-productive for African nations.  But done right, it could attract investment, training, jobs and infrastructure in a way which is genuinely beneficial for African nations and their populations.

Right now, our mission is to provide practical strategies and timely information to protect and prepare you as we slide into a global recession. With that in mind 10 Recession-Busting Solutions for advisors, business owners, and CFOs are here to help you be successful in your task.

1. Re-Evaluate Your Business Model the way you work has to change, make it a change for the better!

`The Enterprise Business Model`

It is Your Time for Success…

Improving the quality of systems is necessary to accelerate with impact organisations in the 21^st century. The competition for customers is getting fierce. Customers want and expect much more from company personnel and their systems. This publication will help you to improve your skills in empowering people to deliver quality service excellence by using a `Enterprise Business Model`  to raise the `bottom-line`.

This publication will help you understand how an `Enterprise Business Model` can affect your business globally and also impact an increase in the `bottom-line`.

Businesses that invest in `people and systems` will `win`, because they care more than other organisations. Each company should care about its personnel and business systems.  The world is about dedication to the people and business models environment, since it is people and business models that make companies work, technology only helps people and the business models carry out their job more efficiently.

“Anything in life is possible as long as you have the passion to be successful”

• Colin Thompson

“In the last two weeks I’ve seen many business owners make panicked decisions and rupture relationships that took years to build.”

In the past few weeks, you’ll probably have had to heavily revise how your business operates, to fit with the global change in circumstances. But change doesn’t have to be a bad thing. Take some time to re-evaluate your business model, really get to the heart of why you do what you do, and ask yourself if there are ways that you can do it better.

Are there changes you’ve made recently that you’ll want to make permanent once things start picking up? Has your team learned to collaborate in new ways that will serve you for the better going forward? Maybe you’ve had to shorten your turnaround time, or started offering new delivery options. Good things can come from bad times, if decisions are made with a cool head.

2. Ensure Your Team is Optimised and Ready

Take care of your team, so they can take care of business. Health and safety doesn’t just mean letting everyone in the office know where the fire extinguisher is stashed. Keeping your team healthy and motivated is key to the survival of your business. Some of your employees will handle the disruption better than others, and should be supported mentally, physically, and emotionally through this time. 

If you have any hard decisions to make to keep the business afloat, make them early. If you have people willing to step up into leadership roles, let them shine. The more your team is on your side, the better your chances for success. 

3. Get Time With Your Accountant or Advisor 

Their expertise might be the difference between sink or swim. There are a number of services your accountant or advisor could offer you right now that could make a real difference. First and foremost, if you’re a business owner, you’re going to need a cash flow forecast. If you’re an accountant, you should be providing one to every client. There’s no point getting through the worst of the slump, only to find that you’ve run out of money. 

Business owners: ask your accountant for help with tax planning, government packages, and compliance and relief strategies. Chances are, this isn’t the first recession they’ve worked through, and they might have game-changing insights that will see you thriving.

4. Understand Government Assistance Schemes 

Most governments are offering financial aid to get local businesses through these stormy waters. Not all of it will be applicable to you, but make sure you conduct a thorough investigation, so you don’t miss out. If possible, ask your accountant/advisor for help with research and applications.

5. Constructive Communication With Customers

Humanity is more important now than ever. Everyone could use a friendly face and voice from outside their quarantine bubble right now. But it’s not just about sales—it’s about connection. Reconnect, reassure, and really listen to what your customers are saying. Relationships rekindled under duress are likely to last well beyond bad times.

Be careful with your communication—quality, not quantity, is key. Make sure that your messaging is empathetic and not tone-deaf, but also, try not to hammer your customer base with crisis comms. We all know things are getting bad out there—how can you help make their day better?

6. Talk to Your Bank and Stakeholders

If necessary, reconfigure and renegotiate. What debt options are they offering? Can they help you with governmental schemes? Are they willing to renegotiate existing debt, and offer you better rates? What advisory services can they provide? Are they a source of capital now, or will they be in the future? What expertise can they offer?

Keep the bank in the loop, so they can help you with things like overdraft availability and other measures. Stay on their radar.  

7. Dive Into Your Numbers

Use them as a guide going forward. As mentioned earlier, you’ll need a cash flow forecast, and a budget. Take your data and all available factors, and use it to plan scenarios: what good, bad, and ugly scenarios are possible in the future?

Your numbers will illuminate both ‘flab’ and ‘muscle’. If you need to trim the fat, now’s a good time to do so, but don’t throw out useful subscriptions and assets with all the nice-to-haves. Keep what’s useful, and it’ll serve you well in the long run. 

8. Update Strategy and Direction

Get your business ready for the new normal. Remember, this is a marathon, not a sprint. The way forward might be clear to you right now, but you need to be thinking about how the decisions you’re making will impact your business in the future. Create a chart of 30/60/90 day priorities and actions, and make sure there’s a balance between urgency and intent.

Put your customers at the heart of your decision making. What’s the best service you offer right now, and are you delivering it in a way that’s accessible to your base?

Take a moment to think about long term goals. What are the top three objectives for the next one-three years? Maybe it’s all about survival right now, but recessions don’t last forever. How will you come out on top?

9. Double Your Support Networks

Reach out to old friends, and make new ones. In tough times, the prepared, proactive and fearless often move quickly from flight/survive, to fight/thrive. These individuals seek new or renewed relationships, networks, and sources of advice that will sustain and guide them on the journey ahead. 

Come out of this time with more connections that you had going in. Make sure you give as much as you take, and reap the rewards of beneficial relationships that will boost not only your business, but your own profile, as well as your wellbeing. Find the people who can support you through tough times, and be that person for others. No man is an island, especially not in the age of technology. 

10. Manage Yourself 

Take care of your physical, mental, and emotional health. If you’re not operating at your best, your team, your family, and your business won’t be able to either. Show compassion and empathy for those around you, but don’t forget to save some for yourself. Stay realistic, avoid burn-out, take some time out to recharge so you remain positive and effective. 

Learn to shut out the 24-hour news cycle, and focus in on what matters. Eliminate sources of negativity from your life, whether that’s people, companies, or news outlets, and focus on the good. In bad times, we often see humanity at its best, and now is no different. Look for the positive, bring it into your life, and share it with others. After all, we’re all on this journey together.

Solutions and Strategy Tips for Success

To help ensure that your business/personal adventure is a successful and profitable one, here are some tips and strategies to make your efforts more fulfilling and focused.

Build a Foundation Based on Your Core Values.
What’s important to you? What are the drivers that get out of bed each day to go to work for yourself? Look to your core values for some clues. Our core values shape how we operate in the world both personally and professionally. The more aligned your work is with these core values, the more satisfying your business will be and the less like work it will feel.

Get Clear on Your Commitment.
What is your vision and mission for your company and yourself? What impact do you want to have on your community and the world? How do you want to achieve your vision? The more you can refine your vision, the easier it will be to set your goals and objectives along the way.

Create Your Plan.
Writing a business/personal plan isn’t just a nice exercise to do, it’s a road map for building your company and your life. It’s a working document to help guide you, stay true to your vision and help you establish the mile markers along the way. It should entail both your short-term and long-term goals for your company and include your plans for the internal growth of your organisation and the external growth of your business. Do not let it gather dust, review and update it regularly.

Determine Your Unique Selling Proposition (USP).
Do your research — what are your closest competitors doing? Then look to see how you can provide your services better, smarter or faster than your competition. This will help you to stand out from the crowd. Use your uniqueness to your advantage — quirks and all!

Build Your Marketing Kit.
Take your USP and use it to create a set of effective marketing materials. To get you started, you’ll need a business card, an “audio logo or 30-second commercial” to briefly describe your business, an executive summary of who you work with and what you provide, and even a small website to get your brand out onto the web. 

Establish a Marketing Strategy.
Now that you’ve got some tools to get started with, it’s vital that you identify the 2-3 different marketing tactics you can do to help grow your business. This can include but isn’t limited to: networking, advertising, online sales, creating a newsletter, speaking engagements, podcasting, writing articles to get published or even writing your own book. Whatever tactics you choose they should all point your potential clients into your sales funnel. The more closely each of these tactics is tied into the others, the more successful your marketing campaign will be.

Create Your Team.
Yes, you are super human AND, having the support of different people will help you achieve your goals more quickly than you will on your own. Does this mean you have to hire a bunch of employees? No, you can create your team in many ways using full-time or part-time help. Consider hiring consultants such as a bookkeeper, FCA/CPA or web designer to help you with areas that might not be your forte. The idea is to work from your strengths and find the help you need in other areas that don’t fall into your sweet spot of skills and talent.

Accountability is Key.
Whether it’s to your staff, your board of advisors or your coach, having someone outside of your head (and preferably not your spouse!) to help you stay in action around your plans and goals is extremely helpful. Establish regular check-in calls or meetings to review where you’re at, where you might be off course and what you need to do to get back on track.

That’s why a coach is so important.

Create Raving Fans.
The least expensive way to attract a new customer is through referrals. And the best way to get referrals is to create raving fans! Under promise and over deliver every time and your clients will be singing your praises to their friends and colleagues. Think of it like a pump that needs to be primed — it takes some work initially to get things moving (through your marketing efforts and delivering great products or services to your clients) but as your reputation grows, you’re business will start to flow more easily!

What You Focus On Comes True.
Focus on what you want to create and achieve, not what you’re fearful of. Fear can easily generate internal negative self-talk or limiting beliefs that get in your way and get you stopped. The more you focus on these negative perspectives the more evidence you’ll find to support your beliefs. Instead, focus your time, energy and actions on the areas that will create your success.

Find the Balance.
Go back to those core values and remember what’s important. I’m guessing that working 24-7 is not your ideal lifestyle. Be sure to take time out for the other aspects that make up your version of a balanced life – time with friends, family, hobbies and exercise. “Down time” is vitally important to recharge your batteries, clear out the brain fog and rest your body.

Celebrate Your Successes!
It’s easy to take note of what hasn’t been checked off your list, what’s missing, or what’s not completed. This can send you into a negative frame of mind in a nanosecond if you’re not careful. Be sure to take time at the end of each day to celebrate your successes no matter how big or small they may seem. By focusing on what you’re grateful for, you’ll raise your energy level, clear out some of the internal noise and go to sleep with a smile on your face.

Quotes

“What a wonderful life I’ve had! I only wish I’d realized it
sooner.”
     — Colette

“There are only two ways to live your life. One is as though
nothing is a miracle. The other is as though everything is a
miracle.”
     — Albert Einstein

“The future belongs to those who believe in their dreams.”
     —  Eleanor Roosevelt

What are your plans?

Other very useful publications to help with your success;

`How to Learn, Lead and Grow as a Champion`

https://www.barnesandnoble.com/w/how-to-learn-lead-and-grow-as-a-champion-dr-colin-thompson/1144506390?ean=2940185999530

Achieving Business and Personal Excellence

Learning – Leading – Growing – Winning Together = Success

Rising to the Challenge

Finding Ways to Grow and Thrive – take on this publication will lead to success;

`Blending the Right Solution = Success`

THE ROAD TO SUCCESS

Your Business and Personal Growth

https://www.barnesandnoble.com/w/books/1143973266?ean=2940185969373&hConversionEventId=AQEAAZQF2gAmdjYwMDAwMDE4YS0yMmM0LTQ0YTgtOGQ5Yi05ZjQzNGI1YzNhZTjaACRkMD

“An Investment in Learning, gaining Knowledge and Skills Pays the Best Interest for You”

Colin Thompson

AI is transforming the workforce. The following paper focuses on the impacts to talent development and recaps the research and innovative approaches companies are using to increase the new and necessary skills and competencies required.

The demand and supply gap for AI talent

As we know, AI and machine learning skills are among the most in-demand skills across industries, but the supply of qualified professionals is extremely limited. This creates a talent crunch and a competitive advantage for organizations that can attract and retain AI talent.

The conundrum of build, buy, and borrow (or partner as McKinsey puts it) is not a new one to HR.  There are several models and recommendations for HR in closing the demand and supply gap. Below is one example of a build/buy/borrow decision making model for illustrative purposes.

However, with the AI talent gap, the speed of recruiting, developing, or identifying partners has been rapidly accelerated and is parallel to the speed of technology change itself. Ultimately, a hybrid approach that combines the benefits of retaining and developing current talent with the infusion of new skills and perspectives from external hires may be the most effective. This approach allows for the most balanced and strategic implementation of AI capabilities within the company. 

The key competencies and strategies for AI talent development

AI talent development requires a mix of technical, soft, and business skills to fulfill the future needs of an organization looking to compete in the AI space.

It’s crucial for organizations to assess their investment in development strategies while simultaneously identifying the necessary skills and jobs. This approach enables the integration of specific skills into predetermined development strategies, thus avoiding unnecessary delays.  Below are three solutions which are effective, fast, and right sized for F5.

Solution 1: Identify employees with adjacent skills and develop a reskilling learning program

Beginning with a skills inventory of current employees, which can be accomplished in Workday, identification, and selection of employees to enroll in a reskilling program through Coursera or Pluralsight which F5 currently has unused licenses to consider distributing (not managed by HR).

Sample Reskilling Program – 6 months in length

Solution 2: Create an AI boot camp to build our own talent pipeline

To attract and develop a diverse pool of talent for AI roles, F5 would design and launch an AI boot camp that offers intensive training with no programming experience required. The boot camp would aim to equip the participants with the foundational skills and knowledge needed to pursue a career in AI at F5 specifically, such as programming, data science, machine learning, and AI ethics combined with an introduction to our current products. The bootcamp would conclude with a capstone project which could feasibly provide F5 with usable work products and use of the applied learning to determine candidates’ employment prospects at F5.

Sample AI Bootcamp Curriculum

The AI boot camp curriculum consists of four modules, each lasting six weeks and covering a different aspect of AI. The modules are as follows:

The boot camp concludes with a capstone project, in which participants work in teams to design and develop an AI solution for a specific business challenge or opportunity at F5. The project involves applying the skills and knowledge acquired throughout the boot camp, as well as conducting research, prototyping, testing, and presenting the solution. The project serves as both a showcase of the participants’ abilities and a potential source of innovation and value for F5.

Solution 3: Social Learning

One of the benefits of social learning is that it can help the company to easily upskill its employees in practical ways, without requiring a lot of resources or formal training. Social learning can include mentoring, group projects such as hackathons, and other collaborative activities that allow employees to share their knowledge, experience, and insights with each other. Social learning can also foster a culture of innovation, curiosity, and community, which are essential for AI adoption and implementation.

Example: Redhat Uses mentoring to close the skills gap

In 2018, Red Hat standardized its existing mentoring initiatives and made its programs more inclusive and accessible to everyone in the organization and focused on upskilling employees.

People were matched based on the competencies they wanted to develop and utilizing the matching feature from withing their mentoring management software. Their mentoring cycles ran for 6 months with specific upskilling goal to be accomplished.

Results

Red Hat enjoyed the fruit of its thoughtful labors across multiple areas, including retention, employee development, program satisfaction, and program ROI.

• After expanding its mentoring program beyond the pilot, the company experienced a 63% decrease in employee turnover among program participants. This equates to a 96% retention rate for this group.
• After parsing its program data, the company discovered that 40% of its program participants had some type of intra-company job movement. Amazingly, 60% of those movements were promotions. The promotion rate for participants was 2x that of the non-participants within the company.
• Red Hat examined its program and relationship satisfaction, revealing a 92% satisfaction rating among mentors and mentees.
• Red Hat followed a cohort of mentoring program participants for just over 28 months to gather data on ROI. The result? A retention benefit of $6,000,000 with a 107x ROI compared to the cost of creating and operating its mentoring programs.

Red Hat’s results speak specifically to how social learning and upskilling work in tandem. Employees who engage in mentoring relationships that matter to them and learn directly from internal experts grow personally and professionally. This helps maintain and expand company culture and boost productivity, even within companies like Red Hat that continue to champion remote and hybrid work flexibility.

Cognitive and social/emotional skills matter

Within the AI industry, soft skills hold significant value. Yet, these qualities are difficult to quantify due to a lack of unified definitions and consistent terms. The following is a meta-analysis from ten recognized sources that have discussed the relevance of soft skills in the current AI landscape and the prevalence of specific skills cited.

Areas not explored in this paper are the AI-related skills needed by functions such as sales, services, marketing, etc.

Learning Solutions Available at F5 beginning Q4FY24

The culture and talent development team identified key areas to focus on for the needed transformation within F5, taking into consideration the afore-referenced soft skills specifically. In FY24, we laid the groundwork by seeking out partners and programs that will contribute to shaping the future of learning and cultural involvement at F5. The endeavors included rebalancing resources by removing dependencies on vendors and processes that served us in the past, and to utilize funding for efforts in alignment with the future.  All without compromising any existing programs and offerings.  The below represents the additional offerings to be made available in the coming months and supports the development of F5 into a company with AI capabilities at its core.

– Skills Coach: This is a feature in Culture Amp that helps employees identify their strengths and areas for improvement in various soft skills, such as communication, teamwork, leadership, and creativity. The coach provides personalized feedback, tips, and recommendations based on the employee’s responses to surveys and quizzes.

– eLearning courses: Available through the Culture Amp partnership, these training courses cover a wide range of topics related to soft skills, such as innovation, emotional intelligence, inclusion, and problem-solving. The courses are interactive and engaging, and they allow employees to learn at their own pace and convenience.

– Training templates: This enables us to create and share customized training modules for soft skills. We have used the templates feature to design training that matches our specific needs and goals. These training modules are made available through the Cornerstone LMS (LearnF5) where reporting on individual progress is recorded.

– Simulations Based training: This simulates real-world situations and challenges that require the application of soft skills. The process includes giving feedback and guidance to the learners as they navigate the scenarios and interact with virtual characters, thus helping the learners to practice and improve their soft skills in a safe and realistic environment.

– 360 and team effectiveness assessments: Included in the Culture Amp partnership are tools that enable us to collect and review feedback from multiple sources, such as peers, managers, customers, and self. The surveys help us to gain a comprehensive and balanced view of our soft skills and how they affect our work outcomes and relationships. They also help us identify and address any gaps or issues in our team dynamics and collaboration.

– Mentoring tool: This is a program platform that facilitates connections with other employees who can provide personalized advice and guidance to accelerate and support development. The newly implemented tool has improved usability from what was utilized in the past, including enhanced matching capabilities.  In addition to helping us grow, the program also helps us to expand our network and gain valuable insights and feedback from different perspectives.

Skills inventorying as a needed component

Skills inventorying is the process of identifying and documenting the current and desired levels of skills needed for each role and employee. While this can help us to align our learning objectives and strategies, it can also be time-consuming and subjective.

But without skills inventorying, how will we know our skills gaps?  One approach would be to model your skills inventorying practices after proven methods such as inventory management in retail. 

In retail, inventory management is the process of ensuring that there is enough supply to meet customer demand, while minimizing costs and waste. Inventory management best practices include forecasting demand, optimizing inventory levels, tracking inventory performance, and managing inventory turnover.

Similarly, skills inventorying can help us to align our skills supply with our skills demand, while avoiding skills shortages or surpluses. Skills inventorying best practices include:

– Forecasting skills demand: We need to anticipate the future skills needs of our organization, and plan accordingly. We can use data and insights from skills committees comprised of internal employees who are experts in the jobs.  We can also utilize external research in partnerships like Aon and i4CP to identify the skills that will be in high demand in the near and long term.  This work should include the identification of lesser needed or obsolete skills.

– Optimizing skills levels: We need to ensure that we have the right level of skills for each role and employee, based on their current and expected tasks and responsibilities. It’s incumbent upon us to triangulate this information rather than use one source of truth (such as self-evaluation) to ensure accuracy.  Examples of sources to be considered are skills assessments, 360 feedback assessments, and past projects.

– Managing skills turnover: We need to maintain and update our skills inventory regularly, as skills change and evolve over time. Utilizing recognition, rewards, and incentives is a great way to motivate employees to participate in keeping the skills inventory up to date.

Skills inventorying is a necessary component of a skills identification and development program but would need to balance long term scalability with utility and resources required.

Next steps

We are in good company as other organizations are working toward innovative solutions to identify and obtain the necessary skills in a highly competitive market.  F5 has begun the necessary foundational components to shift focus to becoming an AI and SaaS led organization but will require continued focus and commitment to fully transform the organization. As 2018 McKinsey report on AI concluded: “Our most important takeaway is that companies need to act quickly. Those that make big bets now and overhaul their traditional strategies will emerge as the winners.”

Sources:

“2024 Mentoring Trend: Social Learning Will Help Upskill Employees,” Mentorcliq, Jan 2024

“5 Ways AI Shifts How Organizations Think About Skills Data,” Gartner, Mar 2023

“A New Workplace Transformation: Preparing People for Success with Generative AI,” Dale Carnegie, Nov 2023

“Adjacent Skills for the AI-driven Jobs of Tomorrow,” Eightfold, May 2023

“AI Talent Strategies: Attract, Recruit, Retain”, Reuters, Dec 2023

“Artificial intelligence: The time to act is now “McKinsey, Jan 2018

“Building Your Employees’ Confidence to Adapt in an Era of Digital Transformation & AI,”

Dale Carnegie, Jan 2021

“Gen AI talent: Your next flight risk,” McKinsey, May 2024

“How to Apply Generative AI to Talent Analytics”, Gartner, Feb 2024

“How to attract and retain talent,” BCG, May 2023

” Human Skills and Best Practices in the Age of AI,” Ed x, Sep 2023

“Is HR Already Behind in the AI Revolution?” i4CP 2023

“New McKinsey survey reveals the AI tech-talent landscape,” McKinsey, Jan 2023

“New study finds AI is making soft skills more important in the workplace,” World Economic Forum, Jan 2024

“Quantum Black AI.” McKinsey, Dec 2022

“Software Talent: Boosting Productivity with Generative AI,” Draup, July 2023

“Soft skills, strong impacts,” McKinsey, May 2021

“The 5 soft Skills needed to success in an AI dominated workplace,” Fast Company, Nov 2023

“The Future Of AI Skill And Talent Development In The Workforce,” Forbes, Mar 2024

“The HR leader’s AI strategy toolkit,” i4cp, July 2023

“The Human side of Generative AI: Creating a path to productivity,” McKinsey, Mar 2024

“The Nine Practices of AI Innovators: An AI Implementation Roadmap for HR Leaders,” i4cp, Dec 2023

“The technical and soft skills needed to succeed with AI in 2020 and beyond,” Microsoft, Oct 2020

“This is what an AI-Ready organization looks like,” i4CP, Jan 2024

“Top 10 Soft Skills Among AI Talent,” LinkedIn, Mar 2024

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“What’s Holding AI Back? Finding The Right Talent,” TechCrunch

“Why These 6 Soft Skills Still Matter In The Age Of Generative AI,” Forbes, Oct 2023

Microsoft copilot was used in the refinement and design of this paper

I have conducted business across different geographies and have been working with team members across many regions, in Europe, Australia, the US and Asia and have always considered this as a rewarding experience despite having its own set of challenges.

The economy has become global; companies are multinational. Even small companies have international presence. People travel around the world for different reasons and work outside their home country ; those so-called “foreign workers” or expatriates” were estimated 258 million in 2017 according to the International Labour Organization. Which means that it is very likely that you are working with colleagues whose native language and culture is not yours.

A multicultural team is made up of people in different countries, from different cultural backgrounds and or languages. Multicultural teams can be located in different offices around the world but with globalization, multicultural teams can now be found more often in a single location. This is the case for Redbubble European office in Berlin, where most of the employees are non Germans (54%).

The question of differences in behavior is very important in business. There are immediate obvious challenges to overcome when working with multicultural teams and working in such an environment can be source of misunderstanding or even frustration, not even mentioning time difference that can be part of the equation when belonging to a global team.

The challenges

Communication and language hurdles

Studies show that managers spend approximately 80% of their workday communicating, in formal written way or in oral presentation. In a multicultural environment, the differences in communication and language will be amplified.

We all learn a language when raised. Even when we learn one or more additional languages at school or for work purpose, we might not control it perfectly to get the subtleties, accents, understand the colloquialisms, not even the cultural references and jokes!

The communication style can be very different and it can take a while to adjust to it. When I moved from Paris to Singapore, I have been caught by surprise by the lack of open disagreement, especially with superiors and the many ways of saying “no” without uttering the word at all! In Germany where I currently live, I find the communication quite direct and explicit (a “yes” is a “yes”), with little reading between the lines and people don’t’ fear to speak up.

Hierarchy and status

There are different approaches to respecting hierarchy and status. Cultures in Asia tend to be very respectful of the hierarchy ; I have never seen a boss being questioned or publicly taught he/she was wrong when I was working in Singapore. In Germany, authority is accepted without being questioned as long as managers show through their ability and meet the expectations.  Americans are more egalitarian meaning employees are free to challenge authority.

All those differences may lead to misunderstanding or vexation when not treated according to the belief behind status.

Decision making norms

There are varying styles and speed of making a decision. In some cultures, it is expected to get things moving fast and learn on the way ; American managers can take the full responsibility for making a quick decision based on the right amount of information.

In other cultures it can be required to take time to gather as much information as possible, through the involvement of technical experts (in Germany) for example or to research and take into consideration the social benefit, like in Scandinavia.

When overcoming the challenges, culturally diversified teams can contribute significantly to the dynamic of the group they belong to.

The benefits

More ideas generated

Culturally diversified teams generate more solutions to solve a problem than a homogeneous group. Individuals from different cultures confront their ideas, they bring diversified experiences, and perspectives they broaden the considerations and points of views.

Openness

Those who have been working in a multi-cultural environment tend to have more acceptance, to be more open and to step back from their own beliefs.

Rich experiences

Multicultural workplaces form a wonderful environment where languages, cuisine, celebrations are mixed and experienced. I can’t count the number of occasions I enjoyed tasting a local meal or culinary specialty that a colleague brought to the office for us to try!

Best practices

If you want to succeed in working in a multicultural environment, you need to be able to work with those cultural differences in the organization. It requires a higher dose of personal investment, including learning, adaptation and diplomacy.

1.      Understand your colleagues’ language and culture

–        Spend time learning about people’s cultural norms and why we all act differently; encourage your colleagues to do the same. There are a lot of resources that describe cultures, like the “Culture Shock!” book series, although there are many stereotypes in those books and not every cultural characteristic should be taken strictly. And then talk to everyone individually and ask them how they feel about those differences between cultures.

–        Similar to the above, try to learn as much of the language of your professional partner as possible. This can get you closer to them, getting them more willing to explain how they work and what they expect as a working relationship. In our Berlin office, despite English being the common corporate language, we offer German language courses.

–        (Note that this will be relevant when the world will not be impacted by various lockdown measures and travel restrictions due to Covid19) You could also acquire much knowledge if you have the opportunity to travel or work from abroad to experiment those cultures on your own. I’ve learned so much and was much more able to understand when I travelled. In Singapore and realized that the education system relies very much on learning by heart, which produces academic results that stand out and an impressive capacity of local talents to perfectly apply learned principles.

2.     Accept and respect different cultural principles

–        Be open-minded: share your beliefs, help your working partner understand your behavior. Look at the situation from the perspective of your colleague. It’s not because you’ve been told and raised in a way that your cultural reference is the truth. But also give them feedback with context about how you feel about your interactions.

–        Avoid conveying any “cultural” bias towards members who are fluent in your native tongue or closer to your cultural principles and practice inclusive employment practices.