Web3.0, including metaverse experiences, will eventually replace the internet experience that we know today. This technology will seamlessly combine our physical and digital lives in one space. While the metaverse continues to be defined, its disruptive potential is impossible to ignore.

We surveyed nearly 230 CEOs about their thoughts on Web 3.0 and metaverse technologies—and the actions their organizations have taken to date. This research identified five common myths about what strategic actions companies are taking to prepare for the metaverse, and how they are preparing their leadership teams and workforces for what is ahead.

Myth 4: Technology experts are the only leaders involved in setting the metaverse strategies

The technicalities of the structural components that underpin what will eventually become the metaverse are extremely complex. Our current level of innovation only skims the surface of the systems and hardware that will eventually power this space. That said, having a highly-skilled technology leader to drive this to market is a must and they must have a combination of technical expertise, business acumen, and a diplomatic disposition, because they can’t make the metaverse happen alone.

As Web3.0 demands new acumen from technology leaders, company leaders must recognize that their current technologists are key to these innovations and must be close to core leadership.

Companies taking strategic approaches to metaverse innovation today are mostly leaning on their technology leaders and expanding their roles to include what is needed to stay competitive in this race. But those technology leaders must work closely with the R&D and innovation leaders, as well as digital and data leaders who are highly involved at these companies. Strategy, operations and supply chain, finance, human resources, marketing and e-commerce leaders are also playing a major role in shaping their functions to be ready for what is to come – but will lean on technology leaders to understand what is needed to get there.

Source: Russell Reynolds Associates’ Global Leadership Monitor Pulse, October 2022, n=145 CEOs.

In creating the metaverse, the balance between guidance and autonomy is key. We learned from leaders currently working in this space that ideating and innovating around the metaverse with the entire C-suite team, as well as at the function and divisional leadership levels, is crucial for garnering buy-in for what can appear like a nebulous agenda, that’s also operating on a much slower development cycle than most are accustomed to.

Myth 5: The race to the metaverse is among start-ups

Among companies taking strategic actions, just as many are publicly traded (22%) as those backed by private capital and venture funding. Another 31% of these companies are privately held.

Be on the lookout for metaverse M&A activity, as larger public companies seek to advance their positions by acquiring the strong growth companies that were first out of the gate. In fact, 42% of large public companies say that they have already increased their M&A activity in this space (compared to just 26% of companies of all ownership types).

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Authors

Leah Christianson is a member of Russell Reynolds Associates’ Center for Leadership Insight. She is based in San Francisco.
Jemi Crookes leads Russell Reynolds Associates’ Technology Knowledge team. She is based in Washington, D.C.
George Head leads Russell Reynolds Associates’ Technology Officers Knowledge team. He is based in London.
Tristan Jervis leads Russell Reynolds Associates’ Technology Officers capability globally. He is based in London.