Connect with us

Strategies

10 Things CEOs need to know to survive in 2020

The innumerable challenges and crises that arise more quickly each day are forcing CEOs to adopt a new skill set and a new mindset.

Published

on

Photo by Brooke Lark from Unsplash.com

“CEOs are facing a daunting new level of challenges around social media, technology, political standoffs, and stakeholder pressures, says Stephen Miles, CEO of The Miles Group/TMG. “How a CEO acts and reacts around these challenges and crisis events today – and gets the company on board around the changes necessary – will be the moment of reckoning for a company’s survival.”

The person in the CEO role today is very different as a whole from 10-15 years ago, says Miles. “The innumerable challenges and crises that arise more quickly each day are forcing CEOs to adopt a new skill set and a new mindset.”

Below are 10 factors Miles and his colleagues at TMG have identified as essential focus areas for CEOs entering 2020.

1. Handling “social emotional events.” 

As we move into a ‘social economy’ with leadership actions being scrutinized and judged by millions over social media, CEOs are learning the hard way the consequences of not addressing this reality – and it often translates into their leaving the company. Responding to or taking a stand on today’s ‘social emotional events’ or issues – from plastic waste to the NRA to LGBTQ issues – as well as to a company’s own crisis events requires a new CEO skill set of being able to connect with the public at a completely different level.

2. Shifting from a “know-it-all” to a “learn-it-all” company with a growth mindset. 

The story of Microsoft under the leadership of Satya Nadella is a powerful example of embracing what Stanford psychologist Carol Dweck has identified as a ‘growth mindset’ – and how this approach can save a company. Nadella took the same assets that the previous CEO had and has added more than $850 billion in market capitalization. He has focused on a cultural transformation, moving from the fixed mindset Microsoft had held onto for too long. Under his watch, Microsoft has shifted from a ‘know-it-all’ to a ‘learn-it-all’ company that is open to learning and new ideas. More companies can learn from Nadella’s model as nothing can be taken for granted any longer in today’s rapid business climate.

3. Prioritizing investment in a business’s digital future. 

Digitization of every business has been talked about for the past 20+ years, but we have finally reached the point where this is real. For companies not in the tech space, investing in digital development means focusing on the ‘business of tomorrow.’ Many of them are so focused on winning in the business of today that they risk being late or outright missing the transformation to digital. But getting a company to prioritize digitization is not like Star Trek where a CEO can just ‘Make it so.’ The CEO must make this imperative part of their drumbeat from the top so that it gets the attention and investment required. Digitization requires a real focus and investment in building the organizational capabilities needed for a company’s future success.

4. Training the company, and the CEO, as an Olympic athlete.

The pattern of a company’s adding some excess during a good run and then shedding the excess when the run was over is coming to an end. Today, many CEOs see their companies as Olympic athletes – where it’s essential to maintain a top level of ‘fitness’ at all times and it’s everyone’s role to stay focused and not allow excess to creep in. CEOs themselves are also prioritizing their own fitness to stay sharp and withstand the physical toll of working in today’s very demanding global business climate with extensive travel, 24/7 communications, and more – a far cry from the wining-and-dining CEO of before.

5. Getting ahead of ESG “fails”.

The ESG – environmental, social, and governance – agenda for many CEOs has gone from altruism to ‘license to operate.’ ESG is the new normal. With plastic, for example, the companies affected have largely lost the narrative. The story has moved from ‘waste is bad’ to ‘plastic is bad,’ with plastic becoming the symbol for single-use excess. Corporations today need to stay out in front of the narrative before it gets hijacked and then turns their entire business model on its head. It is now sport to shame corporations and build a critical public mass to drive an agenda, so CEOs must stay hyper-attuned to the emerging issues that could pushed by stakeholders anytime.

6. Adapting to “shop local” as a possible new reality for supply chains.

Most multinational corporations have set up their supply chains to be truly global, but the 25-year business model developed around free trade and the frictionless movement of goods is now under real threat through trade disputes and protectionist policies. Companies are trying to assess whether this is merely a Trump administration blip or a new era of global protectionism threatening their existing business models and supply chains. If this is the new reality, many companies will have to shift their business models to a more local approach, which will cost more and take time to fully adjust. Many arbitrage opportunities around labor and other costs will be lost if companies are limited to more local markets for production.

7. Bracing for stronger regulatory action.

From heightened privacy concerns around technology companies to the newly appointed CEO of Boeing Corporation saying that the company now welcomes oversight, regulators around the world are finding a new sense of power – supported by a growing populist movement and an increased disdain for the corporation. Taking on monopolies is another area of focus, as the technology space has shifted dramatically in the two decades since the DOJ took on Microsoft, a company far less of a monopolist than what exists in many areas of technology today. We’re likely to see more actions taking on monopolists to either break them up or regulate them with a much heavier hand of the law.

8. Building competitive muscle as growth gets harder.

Every CEO we have advised over the past decade would tell you that each year has been harder than the previous year to find growth. In a ‘hard growth’ economy, the only way for companies to grow is to take market share from others, but the relentless focus inward on cost-cutting and disciplines such as zero-based budgeting have made it difficult to find executives who have built enough of a competitive muscle. CEOs will need their teams to get out of their more internally focused thinking and embrace a market-based approach that is driven by calculated risk-taking and creativity.

9. Preparing now for the next synchronized global recession.

Many industrial companies have been feeling recessionary pressures for the past six to eight months, and this is a worry for many CEOs. While the consumer remains strong, there are signs of the next recession being closer rather than further away. The swing card is the 2020 election and the potential for the Trump administration to complete further rounds of a workable trade deal with China. A deal would take a considerable amount of uncertainty off the table and likely extend the expansion for a period of time.

10. Shifting from linear leadership to managing to an outcome.

Companies are increasingly moving away from the vertical corporation, with its silos and asymmetries of information and linear paths to achieving goals. In today’s highly matrixed organization, executives must also lead horizontally, working with others and collaborating in a way that requires a lot more range to their leadership toolkits. They must consider the direct and indirect constituencies that will influence their strategic objectives. We have moved away from linear ‘Point A to Point B’ leadership – it is now about managing to an outcome.

“What all these actions have in common is a hypervigilance to external factors,” says Miles. “The always-on, 360-degree CEO who takes in input from everywhere and adapts quickly is the one who will outperform.”

Strategies

4 Tips on doing business in a digital world

Doing business in a digital world requires end-to-end approach.

Published

on

By Lesley Salmon
Kellogg Company SVP, Global Chief Information Officer

It’s no secret that technological advances will continue to improve consumers’ experiences. While CIOs will always be responsible for keeping their organizations safe, secure, and sustained, successful businesses must harness the power of new digital solutions to drive better business decisions, and outcomes and ultimately grow the business.   

Depending on who you ask, doing business in a digital world can mean different things. To some, it means adopting consumer-facing digital offerings like e-commerce, mobile apps, and digital marketing; to others, it means digitizing operations and processes internally. To continuously evolve and adapt to forever-changing consumer expectations, CIOs must take an end-to-end approach to digital – focusing on four areas:  People, Process, Technology, and Data & Analytics. If you do this, you will realize the value it can add to your organization. 

1. Focus on your people.

For me, it’s all about people – having the right people delivering through great partnerships with the key stakeholders across the business, understanding their needs, pre-empting, and then responding to them. A recent Gartner poll stated that talent is a top challenge for CIOs in 2022. To attract and retain the right people, we need to satisfy their hunger to experiment, fail fast and learn.

When our Kellogg IT team told us they didn’t see enough growth opportunities, we knew we needed to take a new approach to learning and development. We built our Year of Development Always (YODA) initiative with a vision to cultivate our childhood curiosity and an eagerness to learn. We created several tracks in the program for technical training, career strategies, and shadow programs to help our colleagues learn and explore new facets of the overall IT function.  The program has seen great results, team engagement is at an all-time high.

2. Don’t frown on the word process; embrace it.

When we think of ‘process,’ many people immediately imagine a rigid and inflexible approach. I challenge this perspective – we sometimes have to slow down, to speed up. Processes can be flexible while still providing structure for business growth – they’re what drive progress every day!

Part of doing this is closely linked with People because Process can be about engaging business colleagues at the right time with the right solutions. Being a trusted partner means bringing the company along the digital journey with us, which is essential for our future success.

3. Integrate technologies that delight consumers and drive better business outcomes.

We know that building scale and leveraging our platforms will deliver value for the business, but what about delighting our consumers?

In 2020 a team member attended an event and learned that more than 2 million people in the UK live with sight loss and cannot simply read the information on packaging. It sparked an idea to add NaviLens technology to our packaging, allowing visually impaired people to access all of the information on our packaging via their smartphones – either by having it played aloud or by using accessibility tools.

We partnered with our Packaging and Design team and launched a successful pilot making Kellogg the first ‘food’ company in the world to include NaviLens technology on our packaging.

Our company’s purpose is for everyone to have a place at the table, and we want all consumers to be able to access important information about the foods we sell.

4. Making better business decisions with data and insights.

Data has always been available but never in the abundance that it is today. While CIOs may not manage every corporate data program, the IT function is critical in ensuring commercial and functional teams understand what data is available and use it to fuel insight-driven actions.  

At Kellogg, we’ve re-imagined our data & analytics approach and focus on data ownership, quality, ethics, and governance. This is the recipe for making better business decisions.  

The real magic happens when you join forces with other business areas, like Marketing, to combine our insights and analytics capabilities with innovation, e-commerce, and more. This has allowed us to create a rich omnichannel experience that ensures we have the right foods, attractive pricing, and tailoring the right message to our diverse consumers.  

Freeing data from silos is critical to meet consumer needs and preparing for the future consumer experience. We recently commissioned research that looks at what consumer shopping trends we can anticipate by 2035; we are making investments to prepare for those consumer expectations.

For example, in 2035 and beyond, the retail environment will fit the needs of each shopper. Shoppers will see the personalization of products and shopper journeys as a baseline expectation to fit their unique attitudes and needs. Traditional online and offline environments will become increasingly integrated, supplemented with AI and innovative technologies to offer data-driven capabilities. 

Final thought…

Digital is the driving force behind any business, and IT is in the driver’s seat. Commercial business leaders can and should partner with their IT teams to help prepare for digital shifts to create more personalized experiences that create brand affinity.

Continue Reading

Strategies

Tips on how to avoid a debt trap

Here are some practical tips to help better manage, stabilize, and avoid a debt trap.

Published

on

According to CNBC, an average American has over $90,000 in debt. Accumulating debt is not only a financial burden – it can be mentally and emotionally taxing as a borrower finds themselves trapped in debt because the high-interest charges keep piling on. 

Steve Sexton, financial consultant and CEO of Sexton Advisory Group, shares some practical tips to help better manage, stabilize, and avoid a debt trap.

  • An emergency fund is essential. “Aside from budgeting and living within your means, having an emergency fund for unexpected expenses is one of the best ways to avoid going into debt in the first place,” says Sexton. “Plan to have at least 6 months’ worth of expenses saved in this fund, which can help you financially weather a temporary crisis and keep things running until the situation stabilizes.”
  • Consolidate various loans under a single one. “Taking on multiple loans at different interest rates beyond one’s capacity to repay can be resolved by taking on a single loan,” adds Sexton. “By doing so, the borrower can simplify their finances and no longer need to worry about remembering multiple repayment dates. This step can help the borrower better emerge from a debt trap.”
  • Leverage cash flow to prepay high-cost debt. “An important factor to streamline your repayments and avoid debt traps is to use a temporary inflow of funds to prepay debt with high-interest rates,” says Sexton. “These include annual bonuses or capital gains on share sales which can be used to prepay personal, credit card, or auto loans. When loans with high-interest rates are repaid, you are effectively saving the extra amount that would otherwise have gone towards the higher interest charges.”

Continue Reading

Strategies

3 Tips to include in a business crisis plan

To better protect businesses and their people, emergency preparedness experts from Rentokil North America and their family brands, Steritech and Ambius, shared three elements to incorporate into a weather-related hazard mitigation plan.

Published

on

Across the world, natural disaster events are on the rise. Climbing temperatures pave the way for an increase in droughts, wildfires, floods and other weather emergencies. In 2021, United States natural disasters created more than $145 billion in economic damage, three times the amount originally estimated by the National Oceanic and Atmospheric Administration.

The Federal Emergency Management Association estimates that about 25 percent of businesses do not reopen after experiencing a weather-related disaster. Without a plan in place, one weather emergency leading to a power outage, flood or property damage may be all it takes to force a company or business to close its doors permanently.

To better protect businesses and their people, emergency preparedness experts from Rentokil North America and their family brands, Steritech and Ambius, shared three elements to incorporate into a weather-related hazard mitigation plan. Business owners and operators can use these tips to establish a plan and better protect their employees, customers and business.

Tip One: Prepare for Power Outages

Power outages can happen anytime, anywhere. A nearby accident can take out power lines resulting in a local outage. Heavy rain, high winds or extreme temperatures from severe storms can also lead to a regional or widespread outage. Business owners may not be able to prevent a power outage from happening, but planning ahead and incorporating step-by-step instructions for the business’s unique needs can help prevent the loss of temperature-controlled products.

Conduct an extensive walkthrough of the facility and make note of any temperature-controlled products or power-reliant vulnerabilities. Include clear instructions for handling these products in the case of a power outage and ensure resources are readily and easily available. 

Consider having a paper log on hand in order to manually monitor and document product and food temperatures as long as it is safe to remain in the building or if the power outage is confirmed to be brief. Avoid opening reach-in and walk-in cooler doors as much as possible to keep items cold. A freezer in good condition may maintain its temperature for up to 24 hours if unopened.

“When a power outage impacts temperature-controlled products, discard any foods that may have been in the cooling or warming process,” advised Paula Herald, Technical Consultant at Steritech. “Don’t take chances trying to cool down hot foods; discard in the interest of food safety.”

Tip Two: Address Air Quality Concerns

Flash floods and wildfires continue to sweep across the United States releasing toxins, bacteria, smoke and other harmful pathogens into the air. These contaminants infect the air and seep into floors, walls and furniture, linger long after the flood or fire subsides. Exposure to these pollutants can be highly dangerous to people and can lead to heart and lung problems, eye and skin irritation and a number of other health-related issues.

Do not enter a space that has been impacted by a flood or fire without first receiving approval from health and safety officials. Once the area is deemed safe to enter, assess all structural damage, look for signs of smoke damage or mold and dispose of anything that can not be washed, rinsed and disinfected such as furniture and carpet. Air decontamination units can be used to help remove any remaining airborne toxins, gases and pollutants.

“The increased frequency of natural disasters is having a significant impact on air quality,” said Matt Hayas, Director of Product and Innovation at Ambius. “Business owners can address indoor air quality concerns by investing in specialized air decontamination units designed to effectively remove 99.9999% of air pollutants before, during and after severe weather situations.”

Tip Three: Remove Destruction and Debris

Natural disasters can leave behind damaged roofs, broken windows, fallen trees and other destruction and debris. Structural damage and piled-up debris are not only safety hazards, they can also create the perfect harborage for rodents, insects, birds and other pests looking to build a new home.

Once the weather emergency has passed, it’s important to conduct an extensive walk-through of the property. Identify any open access points and move any fallen trees and debris as far away from the building as possible.

“A minimum distance of 25 feet is recommended to keep pests from entering the building,” said Nancy Troyano at Rentokil. “Rodents can fit through holes as small as one-fourth an inch so it’s critical to conduct a thorough inspection of the building, before and after a storm hits.”

Dealing with the aftermath of a weather-related disaster can be overwhelming and costly. A pre-established hazard mitigation plan can save businesses up to $13 dollars per $1 dollar invested (National Institute of Building Sciences). As climate change continues to advance, the threat of weather emergencies may soon be a reality for many across the country. Be proactive and establish a plan before a disaster strikes. Incorporate these tips into a crisis plan to better protect businesses, properties and the people they serve.

Continue Reading
Advertisement
Advertisement

Like us on Facebook

Trending