In this February 5, 2013 webcast we explore the leadership development link between age and wisdom. In an era when an increasing number of executives assume top leadership roles at a younger age, is this an area of business risk or business opportunity? And is "wisdom" itself even a term that has cachet in a C-suite or HiPo context, or is it the elephant in the room as seasoned leaders prepare for retirement? In this discussion, Dr Ethan Kross from the University of Michigan and Merryck CEO David Reimer review the latest research on wisdom and its implications for talent professionals. Key discussion points included: - What does "wisdom" mean in a business and complex problem-solving context? - What does the latest research tell us about wisdom and the brain as it ages? - Does wisdom produce meaningful differences in approaches to problem-solving? - Can a person's wisdom be developed earlier (younger) in their career? - What specific strategies have been lab-tested, and how are large companies deploying similar efforts? This webcast is part of our ongoing 2013 exploration of effective experience and knowledge transfer at the tops of organizations as a result of generational turnover.

1. The Neuroscience of Wisdom
The Development and Application of „Wisdom‟ in a Business Context
Invitation-only Webcast
February 5, 2013
© Merryck & Co 2013

2. Ethan Kross, Ph.D.
Assistant Professor, Social Psychology
Director, Emotion and Self-Control Laboratory
University of Michigan
Ethan received his BA from the University of Pennsylvania and his
MA and Ph.D. from Columbia University. He is an Assistant
Professor in the Psychology Department at the University of
Michigan and the Director of the University of Michigan Emotion
and Self-Control Laboratory. He is also a Faculty Associate at the
University of Michigan's Research Center for Group Dynamics and
Depression Research Center.
The overarching goal of Ethan's research is to shed light on the
psychological and physiological processes that enable people to
adaptively regulate impulses and emotions that undermine their
goals and compromise their health. He uses a variety of tools (e.g.,
behavioral, diary, physiological, neuroscience-fMRI methods) to
address this issue and focuses on both normal-healthy and clinical
populations.
© Merryck & Co 2013 2

3. David Reimer
CEO, Merryck &Co.
David leads an organization of former topexecutives who work 1:1
with current business leaders and their high potential successors.
His work over the past decade has included consulting on global
M&A and restructuring projects with 30% of the Fortune
100, including through the dot.com aftermath and, during the
financial crisis, the three largest financial services mergers in
history. He most recently led the 3-year private equity turnaround of
Drake Beam Morin‟s (DBM) North American business.
Earlier, while in Asia Pacific, David juggled a mix of wholly-
owned, joint venture and affiliate business units in 14
countries, which included launching wholly-owned operations in
China.
David is a frequent writer and speaker on how great leaders
develop on-the-job, in the heat of the crucible.
© Merryck & Co 2013 3

4. Welcome
Guest
Dr. Ethan Kross
Assistant Professor, Department of Psychology
University of Michigan
Director, University of Michigan Emotion and Self-Control Laboratory
Interviewer
David Reimer
Chief Executive Officer, Merryck & Co.
© Merryck & Co 2013 4

5. Discussion Framework
1 The Context: Why this conversation?
2 The Challenge: Wisdom in the lab and workplace
3 The Conversation: Development and application
4 Q&A
© Merryck & Co 2013 5

6. The Context
What is the impact of wisdom on decision-making, attitude and behavior?
Defining wisdom – in the lab or in the
workplace
Understand Recognize Promote Demonstrate
That there are limits That the world is in flux The “common good” rather The ability to take on
associated with one‟s and likely to change than focusing narrowly on the perspectives of
own knowledge one‟s self-interest others
© Merryck & Co 2013 6

7. The Context
The scope of business leadership has increased by
an order of magnitude. The pace of technological
disruption alone is 100X today what it was in 1980.
Other changes for ExCo Executives
in the Fortune 500 and S&P 500 1990 2010
Vertical promotions since entering workforce 1 11.4 7.1
Years per “level” (pre-ExCo) 1 3.6 4.4
Companies per career 1, 2 2.1 5.3
Revenue under management 1,3 $123 MM $1.3 B
CEOs promoted from within 4 62% 77%
Connections/relationships to manage 1,5 ~20 ~50-70
1) Merryck & Co data 1998-2012
2) WSJ July 6 2010, Joanne S Lublin, “CEO Tenure, stock gains often go hand in hand”
3) Merryck & Co data 1998-2012; CNNMoney.com, Fortune 500 Statistics
4) SpencerStuart 2010 CEO Transitions, March 2011
5) Merryck & Co data, 1998-2012; Booz & Company 2010 10-yr CEO Succession Study Retrospective
© Merryck & Co 2013 7

8. The Challenge
1. 2. 3.
Can the impact of wisdom How does this show up Can the development of
be measured? in the business world? wisdom be accelerated?
Ethan Kross David Reimer
© Merryck & Co 2013 8

9. Lab Study #1: Sample questions
Can the impact of wisdom upon problem-solving be measured?
Topic/Country Summary
Immigration/Tajikistan Because of the economic growth of Tajikistan, many people
fromKyrgyzstan immigrate to the country. Whereas Kyrgyz
people try to preservetheir customs, Tajiks want Kyrgyz
people to assimilate fully and abandon their customs.
Natural resources/Chuuk Huge crude oil resources have been discovered in the
economicallydisadvantaged Chuuk state. Because of
governmental restrictions, many interested firms cannot
establish the required infrastructure for production. On the
one side, government tries to preserve the ancient laws. On
the other side, there are also a huge number of people in
Chuuk who would like to eliminate the regulations entirely.
Ethnic tensions/Djibouti Two ethnic groups in Djibouti, the Issa and the Afari, have
completely different perspectives on politics. Whereasone
group tries to preserve traditions, the other group wants to
alter the society entirely. Both groups are very strong.
© Merryck & Co 2013 9

10. Merryck Pilot Study
Question: What if any monitoring systems (whether self-directed or gauged from
others) do you use to ensure that you‟re performing well when under duress?
Ages 30-50 Ages 51+
54% Self-Monitored Only 20% (18.8%)
46% Social Cues 80% (75%)
© Merryck & Co 2013 10

11. Lab Study #2
Can other factors be substituted for the passage of time in the
development of wisdom?
Participants Framework
Recent graduates and senior- Participants were first instructed to “take a few minutes
year college students who had to think about how the current economic climate will
been unable to secure impact you personally.” They were
employment were asked to then randomly assigned to reason aloud to an
predict how the future would interviewer about how the recession would impact their
unfold. career prospects from an “immersed” or “distanced‟
perspective.
Strongly liberal and Participants were asked to think about how various
conservative voters in the three foreign and domestic issues would play out over the next
weeks before the 2008 4 years if the candidate that they did not endorse won
presidential election. the election from either an “immersed” or “distanced”
perspective.
© Merryck & Co 2013 11

12. The Conversation
Can wisdom be developed?
The complexity of upper The nature of dynamic The next generation of leader
echelon jobs increases problems development will empower
exponentially, whereas a defiespredictablepatterns of those with the most influence
leader„s development happens straightforward problem- to respond with the greatest
Incrementally. solving. possible perspective.
Understand Recognize Promote Demonstrate
That there are limits That the world is in flux The “common good” rather The ability to take on
associated with one‟s and likely to change than focusing narrowly on the perspectives of
own knowledge one‟s self-interest others
© Merryck & Co 2013 12

13. The Conversation
What are the challenges?
“Wisdom” Business
Buzz Motivation
language outcomes
Ethan Kross David Reimer
© Merryck & Co 2013 13

14. The Takeaways
1. 2. 3.
In a wicked-problem world, As complexity and One of the surest, fastest
every organization‟s stakes have grown by ways to increase
priority must be to get top orders of magnitude, the perspective is to model and
leaders ready for development of exercise methods for
anything to the most perspective and the creating distance between
realistic extent possible. ability to transcend the decision-maker and
self-interest allows for the decision. In an
much better reasoning organizational context,
concerning real-world such exercises work best
scenarios. when grounded within the
business framework.
© Merryck & Co 2013 14

15. Who is Merryck?
Over 15 years, Merryck has become the proven
global vehicle for fast-tracking a leader’s magnitude
Mentoring 1-on-1 with a former C-level executive who:
Has run a$750MM - Is trained in-depth to Is up to speed on Is chosen for ability
$120B P&L within a support with the company‟s to identify strengths,
messy, complex, ofte questions and to issues and the and to define and
n global scale develop executive dynamics of the help develop the
perspective — leader‟srole blind side
not to take on the job
© Merryck & Co 2013 15

16. For further discussion:
Robin Beckhard, Senior Vice President
Robin.Beckhard@Merryck.com
1-888-MERRYCK
www.Merryck.com
© Merryck & Co 2013 16