Study highlights the challenges that France faces to remain competitive and provides recommendations for the way forward
INSEAD, the leading international business school, today released the findings of its third annual survey on France. Bruno Lanvin, Director of INSEAD’s eLab, and Ludo Van der Heyden, Mubadala Professor of Corporate Governance and Strategy at INSEAD, will present the study at the 6th Annual ‘Les Etats de la France’ (The States of France) conference that examines the state of France from four different angles: Economic, Political, Social, and International.
Some 1300 executives (1/3 French and 2/3 foreign – all INSEAD graduates and all doing business in France) replied to an original matrix-based questionnaire aimed at addressing two fundamental questions: ‘Quelle France en 2012? Quelle France en 2017?’ (‘Which choices for France in 2012? What vision for France in 2017?’).
INSEAD’s study evaluates the energies that France disposes of in its four states (Economic, Political, Social, and International). These energies are the ones that any country disposes of in its quest for survival and growth: actual performance, competences and skills, ability to change (“emotional intelligence”), and spirit.
“This multiplicity of angles allows a good discussion and diagnosis of France’s current strengths and opportunities, as well as its challenges and threats in its quest to remain competitive and attractive, particularly during a period of economic downturn,” said Professor Van der Heyden. “And it appears particularly appropriate to look at France today, just before it approaches its highly-publicised 2012 presidential elections.”
Study respondents gave high marks to French competencies in the social and economic arenas. France gets its highest marks for its international “state” – where its four fundamental batteries (performance, competencies, emotional intelligence, and spirit) appear to be working in good synergy.
The study scores France weakest in its abilities to adapt to change, in all its states – and particularly in its perceived inability to adapt its social and political systems at the national level. This so-called “emotional intelligence” is identified in the study as being at the root of France’s perceived performance problems.
Respondents overwhelmingly believed France should reduce its public debt and borrowing. Closer European cooperation is key in this regard - especially stronger cooperation between France and Germany – found to be a much greater priority at this time than cooperation within the Eurozone or even at the level of the EU27.
“One of the interesting conclusions from this study is that the French respondents do not differ in their responses from the international ones. At least in this sample, the French, when compared with the non-French population, have no bias in the way they look at themselves. These views should not be dismissed just on the count that they are non-French views on France” said Professor Van der Heyden. “One conclusion then from the study is that the current economic crisis will force France to adapt and change, thereby overcoming the area in which France is seen as lacking. The biggest challenge for France is “inside” – and not “outside” the country. The challenge for the next French President will be to bring meaningful and lasting change into France, and to manage that change in a way that allows the country to move forward.”
“The area where France’s spirit (“L’Esprit de la France”) is most visibly displayed these days is the international arena, where its performance is judged highest, said Bruno Lanvin. “A positive message coming out of the answers to our questionnaire is that France has all the basic competencies and talents required to perform in the economic and social areas; however, France’s inability to change prevents France from translating these competencies into superior performance.”
Founded by Denis Zervudacki, President and CEO of DZA, sponsored by INSEAD and supported by five multinational companies (Accenture, Barclays, Cisco, GE and Siemens), ‘Les Etats de la France 2011’ (The States of France 2011) also aims to correct the existing imbalance between the reality in France and the vision of France from abroad. This 6th edition will comprise four roundtables hosted by each of the partners at the Assemblée Nationale in Paris on December 6, to discuss the results of the INSEAD study. The sessions will focus on the economic, political, social and international outlook of France, as well as on the visions of France in 2017 held by the new generation. A special lecture will be delivered by eminent sociologist, Professor Michel Maffesoli.
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