Lars Sandahl Sørensen, CEO of the Confederation of Danish Industry, emphasizes the urgent need for strengthened leadership at all levels to navigate the current era of rapid change and global uncertainty. He believes that traditional decision-making processes are no longer adequate in a world where conditions can shift dramatically from one day to the next.

Sørensen draws a parallel between the speed of change and a funhouse, where established foundations are constantly being upended. He points to factors such as trade wars, threats to European security, technological advancements, and the green transition as drivers of this instability. Europe’s lag in addressing these challenges further exacerbates the problem.

According to Sørensen, the fear of making mistakes, particularly within government and public administration, hinders decisive action. He suggests learning from the COVID-19 crisis, where rapid and bold measures were taken despite the risk of errors. He cites the green transition as an example where excessive regulations and bureaucratic processes have stifled progress.

Sørensen calls for a new form of leadership characterized by direction and risk management. He acknowledges the difficulty of implementing this at the national level, where politicians and civil servants face intense scrutiny for any missteps. However, he argues that inaction is a worse strategy, leading to further delays and setbacks.

Sørensen suggests drawing on the Danish social model, which relies on “trustful partnerships” between the government, labor market parties, and other stakeholders. He believes this approach can facilitate risk-sharing and ensure effective action, without resorting to a centralized, top-down system.