Interview, Fireside Chat, Conference Presentation
Leadership in Turbulent Times
- Context of Leadership: The panel, comprising CEOs from EY, Siemens, and Visa, addressed the challenge of leading during "turbulent times" characterized by rising COVID-19 diagnoses, economic uncertainty, and significant social unrest.
- Siemens' Strategic Pivot: Barbara Humpton (Siemens) stated the company is transitioning from an "adrenaline rush" of immediate response to "resilience" and "reinvention," leveraging engineering know-how to address global megatrends like climate change, urbanization, electrification, and automation.
- Technology Acceleration: Carmine DeCibio (EY) noted that pre-COVID transformation trends were expedited, with 94% of Fortune 1000 supply chains disrupted, driving a rapid shift to digital and remote technologies like Microsoft Teams (now used by 300,000 employees) and Zoom.
- Small Business Support: Alfred Kelly Jr. (Visa) announced a commitment to digitally enable 50 million small businesses globally over the next three years, citing small businesses as the "engine for growth" and emphasizing the need for liquidity to cover rent and insurance.
- Contactless Payment Shift: Kelly highlighted that COVID-19 accelerated contactless payments, noting the U.S. is currently behind globally; Visa worked with nearly 50 governments to raise transaction caps, aiming for 300 million contactless-enabled credit cards in the U.S. by year-end.
- Remote Work Adoption:
- Siemens: 60% of the workforce is remote due to digital roles, while 40% remains onsite in factories, utilities, and hospitals; the company utilizes virtual reality to connect remote experts with on-site technicians.
- EY: 99% of the U.S. workforce is remote; leadership is moving toward a "hybrid model" where offices serve as convening spaces rather than daily cubicle environments.
- Visa: 97% of employees are remote; the company plans to keep at least 33% of its workforce remote long-term, with offices evolving into "touchdown locations" for collaboration and onboarding.
- Generational Workforce Differences: DeCibio observed that employees aged 45+ are more comfortable with remote work due to established networks, whereas younger employees (20s-30s) crave physical interaction for career building and networking.
- Travel Reduction Strategy: EY expects to permanently reduce air travel spending, which accounted for $1 billion annually, aiming for a 30% reduction to lower carbon footprints while maintaining client relationships.
- Workforce Stability: Kelly reaffirmed a commitment to no layoffs due to COVID-19, stating that keeping employees paid supports the broader economic recovery amidst 44 million unemployed Americans.
- Hybrid Office Future: Leaders agreed offices will not disappear but will transform into spaces for innovation, brainstorming, and new employee orientation, moving away from the standard 9-to-5 model.
- Gender Equity Risks: Panelists expressed concern that remote work and school closures could exacerbate the gender gap, as women may disproportionately assume caregiving responsibilities; solutions require proactive planning for childcare and flexible policies.
- Performance Evaluation: Humpton warned that remote work could introduce bias in performance reviews and advocated for measuring actions and data points to ensure fairness and equity.
- Racial Equity and Action:
- Visa: Kelly detailed a multi-year scholarship and guaranteed job program for Black high school seniors and noted over 2,500 employees attended internal "race talks" on the history of slavery; he emphasized that Black Lives Matter and acknowledged that no Black employee at Visa has gone unexperienced discrimination.
- EY: DeCibio acknowledged a historical over-focus on gender diversity and stated a new intent to "laser focus" on people of color, including donations to HBCUs to increase the supply of qualified candidates and integrating diversity into succession slates for top 500 roles.
- Siemens: Humpton launched a personal plan of one-on-one listening sessions with employees and committed to action-oriented supply chain networking with minority businesses and diverse talent pipelines.
- ESG and Sustainability: The crisis has accelerated ESG focus, with two primary drivers identified: sustainability (carbon footprints dropped 17% in April) and income inequality (highlighted by who fell ill first and died during the pandemic).
- Purpose-Driven Response: Siemens leveraged its purpose-driven culture to rapidly scale production of PPE from 10,000 to 100,000 shields weekly for hospitals in Atlanta.
- Internship Continuity:
- Visa: Continued a fully virtual internship program with senior mentorship sessions three times a week to maintain resume value and culture.
- EY: Maintained ~20,000 global internships, shortening them to five weeks (from 10) and keeping all learning events virtual through year-end.
- Siemens: Kept all internships virtual, utilizing video conferencing to foster a "cool culture" of connection and care among 50,000 USA-based employees.
- Minority Small Business Support: All three CEOs pledged to help minority-owned small businesses by ensuring access to government subsidies, paying bills promptly, and advocating for effective government program implementation.