What Makes Demographics Drive Other Trends?

Demographics are the “sleeper driver” that will affect several other trends, according to Paul Laudicina, managing officer and chairman of the board for A.T. Kearney. The author of World Out of Balance, he put demographics at the top of the list of five drivers of change; others include the “new consumer” and natural resources and environmental regulation and activism. “Demographics is clearly driving lots of the other trends,” he said. “Certainly in the last 50 years we’ve had greater advances in life expectancy than in the last 5,000.”

Laudicina, who spoke with dean Edward Snyder in a fireside chat October 18 at the Hyde Park Center, said demographics also takes into account the aging and shrinking of the population and looks at where purchasing power is growing. “Why is capital going to the developing world? Because of this growth. It’s like Willie Sutton, the infamous bank robber, said when he was asked why he robs banks. He said, ‘Because that’s where the money is.’”

When it comes to globalization, Laudicina said, “If we don’t find the way to enable the next generation of globalization to happen we’re all going to lose.” Clients once embraced the opportunities of globalization, but the fallout after the recent period of “risk promiscuity” has left businesses risk averse. “Now the biggest risk business faces is not being able to grow,” he said. “We’re spending more of our time trying to dominate growth opportunities and have our clients understand the associated risks so that they’re able to grow.”

He urged students, “Learn as much as you can, not only about what is in the curriculum, but also about these drivers of future business conditions and how important they will be in driving the agendas of your clients.”

—Jenn Q. Goddu