Discussion Post 6 - Management
Please review the attached resources.
1. C-Suite Documents (attached)
2. Josh Bersin: https://www.youtube.com/watch?v=38zUQuHWgZ0
3. Josh Bersin's Big Reset (attached)
4. Select a minimum of 1 podcast from the AHRD master class schedule to listen to. https://www.ahrd.org/page/HRD-Masterclass-Podcast-Series
After reviewing the resources, compile a reflection that addresses the following questions.
What commonalities do you see between the sources?
How can scholar-practitioners align the fundamentals of HRD with the changes taking place in the workplace today?
Requirements: A minimum of two full paragraphs and a 250-word count. Use sources in your response to support your content. Include APA citations where appropriate.
C-Suite Challenge™ 2019
The Future-Ready Organization
HOW CEOs AND C-SUITE
EXECUTIVES ARE TRANSFORMING
FOR THE FUTURE—OPPORTUNITIES
AND CHALLENGES AHEAD
C-Suite Challenge™ 2019:
The Future-Ready Organization
How CEOs and C-suite Executives Are Transforming for the
Future— Opportunities and Challenges Ahead
RESEARCH REPORT 1676
By Charles Mitchell, Ilaria Maselli, Rebecca L. Ray, PhD, and Bart van Ark, PhD
CONTENTS
3 Executive Summary
3 Hot-Button Issues for 2019
4 What Will Organizations Look Like in 2025?
5 Moving toward the Future-Ready Organization
6 Blind Spots Our Research Illuminated
7 Hot-Button Issues for 2019
7 Slowing Global Growth Challenges the Status Quo
8 External Hot-Button Issues: Recession Risk and Global Political Volatility
10 Internal Hot-Button Issues: Talent, Leaders, and Business Models for the Future
12 The Future-Ready Organization: The Shape of Things to Come
15 Are CEOs as Ready for 2025 as They Think They Are?
16 New Technologies Mean Better Customer Experiences
18 Winning over the Value-Conscious Consumer of 2025
20 Ongoing Innovation Challenges: Skilled Talent and Performance Pressure
23 Building and Managing the Future Workforce
26 Investing in leaders
28 Becoming more inclusive
30 Sustainability: A Future Driver of Growth
32 The Organization of the Future Will Be Regulated More
34 About the Authors
34 About the Survey
35 Survey Demographics
35 Regional Partners
www.conferenceboard.org c-suite challenge™ 2019: the future-ready organization 3
Executive Summary
When senior executives paint the picture of what the organization of the future looks
like, what emerges is an archetype of a company that puts the customer at the center,
reshapes the way we work, and achieves the elusive balance between short-term
goals and long-term vision. Reaching this ideal requires a comprehensive, holistic
approach. In this year’s C-Suite Challenge™ survey, CEOs and C-suite executives outline
their concerns about what lies ahead and their vision for how their organizations will
thrive in 2025 and beyond.
Hot-Button Issues for 2019
Hot-button issues are short-term events and situations that executives believe will
require a special focus in the coming year. It’s worth noting that meeting these short-
term challenges can often divert attention and resources away from the commitment to
medium- and longer-term growth strategies.
External Impacts: CEOs brace for a turbulent business environment in the short
run Although our economic indicators do not point to imminent recession risks (the
UK being one notable exception), global CEOs nevertheless indicated this is their top
concern in the coming year, closely followed by disruption of global trade systems and
global political instability. There is little faith this external turbulence can be contained
by the traditional levers of power—public policy and political institutions. Among the top
concerns of CEOs globally, especially in Europe, Latin America, and the United States, is
declining trust in these institutions.
Internal Concerns: Talent, disruptive technologies, and managing costs keep CEOs
up at night Talent is CEOs’ top internal hot-button issue for the coming year. While cost
control also reemerges as a critical issue, the impact of digital technologies is clearly
being felt within organizations as an urgent need to reexamine current business models.
Source: The Conference Board - C-Suite Challenge 2019
Chart 1
Stressors ahead: recession risk and trade threats; finding talent and creating new business models
What are the top issues that will require your greatest attention in 2019 in relation to the external environment
and internally within your organization? (Percentage of CEOs citing the issue among their top 3 concerns)
EXTERNAL
Recession risk 44.4%
Threats to global trade systems 38.7
Global political instability 37.8
New competitors 29.0
Declining trust in political and 27.8
policy institutions
INTERNAL
Attraction and retention of top talent 61.7%
Creating new business models because 52.2
of disruptive technologies
Developing Next Gen leaders 41.2
Better alignment of compensation and 27.0
incentives with business performance
Reduction of baseline costs 21.5
1
2
3
4
5
N = 795, CEO responses only
c-suite challenge™ 2019: the future-ready organization www.conferenceboard.org4
[Start INFOGRAPHIC]
What Will Organizations Look Like in 2025?
The short answer: very different. CEO respondents believe successful organiza-
tions of the future will:
• Achieve balance between long-term vision and short-term perfor-
mance pressures;
• Be highly customer centric, moving from a product orientation to servitization,
offering service support in addition to or instead of traditional product offerings;
• Redefine work with agile, fluid teams as the new work nexus;
• Blur internal and external boundaries as hierarchies and bureaucracies fade in
favor of flexible structures and innovation ecosystems;
• Have leaner functions as artificial intelligence translates into a higher cognitive
complexity of human work;
• Enhance cross-functional and geographic collaboration with new technology;
• Make faster, data-driven decisions supported by agile methodologies and
design thinking;
• Practice greater inclusion, transparency, and information sharing to
drive engagement;
• Invest in more individual coaching and mentoring to cater to new generations in
the workforce and leadership ranks;
• Offer future leaders more cross-functional rotation experiences to
broaden knowledge; and
• See sustainability as a growth driver and an important tool in talent recruit-
ment and retention.
[END INFOGRAPHIC
The short answer: Very different.
CEO respondents believe successful
organizations of the future will:
Source: The Conference Board, 2019
What Will
Organizations
Look Like in
42%
Achieve balance
between long-term vision and
short-term performance pressures
of CEOs globally consider this
the top hallmark of operational
efficiency, ranking it #1 out
of 14 options
Be highly customer centric, moving from a
product orientation to servitization, offering
service support in addition to or instead of
traditional product offerings
Redefine work with agile, fluid teams as
the new work nexus
Blur internal and external boundaries as
hierarchies and bureaucracies fade in
favor of flexible structures and innovation
ecosystems
Have leaner functions as AI translates into a
higher cognitive complexity of human work
Enhance cross-functional and geographic
collaboration with new technology
Make faster, data-driven decisions
supported by agile methodologies and
design thinking
Practice greater inclusion, transparency,
and information sharing to drive
engagement
Invest in more individual coaching and
mentoring to cater to new generations in
the workforce and leadership ranks
Offer future leaders more cross-
functional rotation experiences to broaden
knowledge
see improved customer
experiences as a key
business outcome of
future technologies
see strong customer
data protection
processes as a future
competitive advantage
55%
see sustainability
as a growth driver
43% cite lack of talent and skills as a barrier
to future innovation, making it the biggest
obstacle to overcome
by 2025
70%
expect future
consumers to
be more value
conscious
51% 63%
2025?
www.conferenceboard.org c-suite challenge™ 2019: the future-ready organization 5
Moving toward the Future-Ready Organization
In a slowing global economy, ROI from digital transformation is a burning platform
With more than half of CEOs citing the need for creating new business models to remain
competitive in 2025, it is clear that organizations need to move quickly from the instal-
lation phase of experimenting with digital platforms to the deployment phase of creative
destruction that results in the rapid adoption of products and services that translate into
bottom-line results.
Balancing long-term vision and short-term performance is the number one hallmark
for future organizational success in 2025, CEOs say The danger in a slowing economy
is succumbing to the temptation to skimp on both time and resource investment in the
digital future to boost short-term results, jeopardizing future competitiveness.
Customers place a higher value on the experience of using a product than on the
product itself, and CEOs see enhancing “the experience” as the way to future
success “Servitization”—offering service support in addition to or instead of products—
is in; product-centricity is out. Almost 70 percent of CEOs see servitization as a critical
success factor in dealing with future customers. Sixty-three percent see digital ethics as a
competitive advantage.
CEOs see lack of skilled talent as one of the few obstacles to innovation that will get
worse, not better, by 2025 Future talent issues will be further complicated as work is
redefined and companies must acquire or develop workforce skills that may not be at the
core of present operations.
Developing the next generation of leaders is critical to future success. But is there
enough emphasis on developing digital skills? Investments CEOs will make to get
future leaders ready include improving the quality of formal training and offering more
cross-functional rotational opportunities—sweet spots for millennials. But they may be
missing a critical piece of the developmental puzzle—exposing leaders to digital experi-
ences. Less than one-third chose providing this experience as one of their top three
leadership development investments.
More regulation is coming, but is it an obstacle or an opportunity? CEOs globally
anticipate increased regulation of data privacy, environmental impact, social media, food
safety, autonomous vehicles, and drone technology. For some firms, regulation means
additional costs. For others, it provides an opportunity to take advantage of the evolving
regulatory playing field with new products and services.
CEOs’ holistic view of the sustainable enterprise of the future centers on talent and
value creation Fifty-one percent of CEOs believe successful companies of the future will
see sustainability as a value driver for growth, and just under one-third see it as a tool for
talent retention and engagement.
The high level of confidence CEOs express that their current cultures will be
successful in 2025 should raise questions Many organizations struggle on their
journeys toward achieving digital transformation—with organizational culture being a
critical obstacle. CEOs may be underestimating the heavy lift and myriad changes true
transformation requires.
c-suite challenge™ 2019: the future-ready organization www.conferenceboard.org6
Blind Spots Our Research Illuminated
Overcoming resistance to change is never easy. We know that greater transparency
and an inclusive culture will be foundations of future success, yet CEOs in our survey
appear to underemphasize a few key elements that will build an open, inclusive,
and engaging culture:
Gender pay gap Asked about the top traits that will define a truly inclusive organization,
only 7 percent of CEOs picked mandates equal pay for equal work. The option ranks
14 out of 15 globally, yet our research shows that monitoring and ensuring pay equity
between men and women in leadership roles is the most effective way to increase the
representation of women in leadership ranks.
Work-life balance Lack of work/life balance is a critical reason women opt out of
management, which affects not only diversity within an organization but succession
planning as well. Only about one-quarter of CEOs list improve work-life balance of
managers among their top three priorities. And relatedly, female CEOs constitute only 15
percent of our entire survey sample.
Innovation obstacles CEOs see neither having an insular culture/unwillingness to
partner outside the organization nor lack of diversity and inclusion in teams as important
obstacles to innovation, either now or in the future. They may be convinced that their
culture is already open and their teams already inclusive, and they may be right. But our
research in this area as well as conversations with our members has identified insular
cultures and lack of inclusion as among the biggest current barriers to innovation and
digital transformation.
Rewarding teams The failure of both HR executives and CEOs to prioritize a companion
strategy to developing agile teams, effectively recognizes and rewards team outcomes, is
a red flag. About 10 percent of HR executives and less than a quarter of CEOs cite it as a
top three human capital management strategy. Traditionally, organizations differentiate
rewards based on individual performance. But pitting employees in head-to-head compe-
tition also drives out collaboration. As teams become a centerpiece of human capital
strategy, companies need to emphasize the collaborative aspect of culture, or they risk
developing agile but poorly performing and unmotivated teams.
About C-Suite Challenge™
Since 1999, The Conference Board CEO Challenge® survey has asked CEOs across the
globe to identify the most critical issues they face and the strategies they intend to meet
them. Since 2017, the C-Suite Challenge™ has expanded the survey pool to the C-suite.
This year’s survey, conducted between September and October 2018, asked 1,426 C-suite
executives, including 815 CEOs across the globe, for their views on the Organization of
the Future through 2025.
www.conferenceboard.org c-suite challenge™ 2019: the future-ready organization 7
Hot-Button Issues for 2019
Slowing Global Growth Challenges the Status Quo
Companies are evolving all the time: they grow; split off into smaller parts; acquire and
divest; innovate products, processes, and services; adopt new technologies; and engage
differently with their customers and employees. And so it has been for centuries. But
today, companies as we have known them are grappling with fundamental paradigm
shifts. Regardless of past success, disruptive forces are rendering company and industry-
wide structures obsolete, profoundly altering the way we work and how companies create
value. The shattering of long-held business truths requires the reengineering of business
models and processes, as well as rethinking interactions with customers, employees, and
other stakeholders.
These changes are materializing in a peculiar moment of the economic cycle. Global
growth reached 3.2 percent in 2018. However, our Global Economic Outlook 2019
estimates global growth has peaked and will begin declining, dipping to 2.9 percent
by the end of the next decade. Not surprisingly, this edition of our survey finds the
top external concern for CEOs is when and where the next recession will hit. Now
that growth has plateaued, business leaders feel they are sitting on a peak, looking
down over the edge.
The risks and opportunities companies will face, regardless of their location, will be
shaped by these seven megatrends:1
1 Demographic shifts Growth of the global labor supply, especially in most mature
economies, will vanish at the beginning of the next decade. This will be a unique
event in modern economic history, posing challenges to companies to find
other sources of growth.
2 Technological change To raise productivity, business needs to move from
installing to deploying digital technology. Often a crisis marks the transition
between the two phases.
3 A richer but slower world Large emerging markets have become much richer
but will grow more slowly and contribute less to global growth.
4 Globalization challenged The global economy’s playing field is becoming more
unlevel, and it is harder to leverage competitive advantages across regions.
5 Natural and environmental disasters These are creating economic losses and
threatening key natural production resources (land, water, air).
1 Bart van Ark, StraightTalk® Global Economic Outlook 2019: On Top of the World…Looking Over the Edge,
The Conference Board, November 2018.
https://www.conference-board.org/economic-outlook-2019/
https://www.conference-board.org/publications/publicationdetail.cfm?publicationid=8236
c-suite challenge™ 2019: the future-ready organization www.conferenceboard.org8
6 Rising inequality Not everyone benefits equally from global growth. Differences
in national and personal incomes continue to widen, threatening social and
political stability.
7 Debt Consumer, corporate, and government debt continue to rise as too much
capital is underutilized for productive purposes.
These trends are already having a profound impact on operating environments and
organizations. In this evolving environment, we asked CEOs and C-suite executives for
their views on how the organization of the future will look: how it will be structured, how
it will manage people, and what changes need to be made to thrive in 2025. That CEOs
are preparing their organizations to meet the future business landscape fully emerges
from our survey responses. Companies are envisaging new ways of working—partially
as a reaction to demographic pressure and talent shortages. They see consumer expec-
tations and habits changing, driven by technological advances and by large emerging
markets becoming much richer in recent decades.
In the New Digital Economy, the ability of established businesses to digitally transform
themselves, their culture, their organizational structure, their workforce, their suppliers,
their market strategies, and their mindset will dictate future success.
External Hot-Button Issues:
Recession Risk and Global Political Volatility
We define hot-button issues as short-term events, issues, and situations that CEOs and
C-suite executives believe will require a special focus in the coming year.
CEOs brace for a turbulent external business environment in the short run Even
though leading economic indicators from The Conference Board do not point to
imminent recession risks (with the notable exception of the UK, where Brexit has created
a stronger risk), global CEOs are concerned about this risk more than any other for the
coming year. In our previous year’s survey, global recession was nineteenth on CEOs’
hot-button lists.2 However, other external hot-button issues such as global political insta-
bility; disruption of global trade systems as anti-globalization sentiment takes hold in
most regions; and the emergence of new, more agile competitors are creating extraor-
dinary turbulence. There is little faith this external turbulence can be contained by the
traditional levers of power—public policy and political institutions. Among the top
concerns of CEOs globally, especially in Europe, Latin America, and the United States, is
declining trust in these institutions.
2 In previous editions of the C-Suite Challenge™ survey, the external and internal hot-button issues were one
combined list. This year we broke that list into two—external and internal issues—to provide more granularity.
www.conferenceboard.org c-suite challenge™ 2019: the future-ready organization 9
When it comes to the external stressors, there are significant differences across regions
and industry sectors:
China and Latin America feel recession heat The risk of recession is most
acutely felt by CEOs in China, Japan, and Latin America, though it is high on
the list in every region. In China, “recession” risk is likely associated with a
slowdown in growth rather than a contraction of the economy, which defines
a real recession. Concerns are amplified over what CEOs there see as growing
threats to existing trade systems, punctuated by the festering dispute with the
US. CEOs in Japan share this same level of concern.
Cyber insecurity in the US As business vulnerability to cyberattack grows—
the US government estimates that malicious cyberactivity cost the US
economy between $57 billion and $109 billion in 20163—CEOs in the US rank
cybersecurity as their number one external hot-button issue by a considerable
margin compared to their global peers. CEOs in China are least concerned,
with just under 10 percent ranking it as top three concern, compared to almost
45 percent in the US.
3 The Cost of Malicious Cyber Activity to the US Economy, The Council of Economic Advisors, Executive Office of
the President of the United States, February 2018.
Table 1 Globally, recession concerns dominate for all the C-suite; regionally, CEOs worry about
cybersecurity in the US, currency volatility in Latin America, and political instability in Europe
What are the top 3 issues that will require your greatest attention in 2019 in relation to the external environment?
EXTERNAL HOT-BUTTON ISSUES
CEOs
Overall US Europe Japan China
Latin
America
Other
C-suite
Recession risk 1 3 2 1 1 1 1
Threats to global trade systems 2 4 5 3 2 8 2
Global political instability 3 6 1 1 3 3 5
New competitors 4 2 4 4 7 5 3
Declining trust in political and policy institutions 5 5 3 6 6 4 6
Cyber security 6 1 6 8 10 7 4
Currency volatility 7 11 8 11 5 2 7
Rising interest rates 8 7 9 9 11 6 10
Uncertainty in corporate tax policies 9 10 10 12 4 9 12
Income inequality 10 8 12 7 9 11 11
Impact of climate change on our business 11 9 13 5 12 10 9
Volatility in energy prices 12 13 11 10 8 12 8
Effects of Brexit 13 14 7 14 14 13 13
Terrorism 14 12 14 13 12 14 14
N = 795 N = 132 N = 317 N = 79 N = 118 N = 31 N = 591
Note: The total N for the five regions listed is 677; the overall N of 795 includes respondents from regions not listed.
Source: The Conference Board - C-Suite Challenge 2019
https://www.whitehouse.gov/wp-content/uploads/2018/03/The-Cost-of-Malicious-Cyber-Activity-to-the-U.S.-Economy.pdf
c-suite challenge™ 2019: the future-ready organization www.conferenceboard.org10
Climate worries in Japan CEOs in Japan are more concerned about the
impact of climate change than other CEOs globally by an almost 3:1 margin. It
is fifth on their list of external hot-button issues, likely due to a series of recent
disasters that may be climate related. Globally, just 25 percent of companies
publicly disclose having a climate change strategy; in Japan, 81 percent of
companies do so.4
Industry concerns differ CEOs in the manufacturing sector are most
concerned about threats to global trade, recession, and political instability,
while those in the financial sector single out cybersecurity as their top
issue. Recession is of greatest concern for CEOs within the nonfinancial
services sector.
While C-suite executives share top concerns with CEOs about recession and global
trade threats, they express more concern about operational issues such as cybersecurity,
energy volatility, and climate change.
Internal Hot-Button Issues:
Talent, Leaders, and Business Models for the Future
CEOs globally agree on two critical internal stress points: talent and strategy. Regarding
talent, the challenge is not simply the organization’s collective ability to deliver results but
also the ability of its workers to be agile, innovative, and responsive to disruption.
Scant availability of workers is concerning: growth of the global labor supply in the
world’s most important economies will vanish at the beginning of the next decade.5 In
2019, labor market tightness could reach levels not seen for decades. Equally concerning
is the inadequate availability of skilled workers who are also agile learners and who can
be continually upskilled.
As difficult as it is to find skilled workers, it is still more so to attract and retain top talent,
those scarce top performers who have the skills and abilities to make a critical difference.
Developing the right kind of leaders who will inherit a world where leading through
complexity, ambiguity, and disruption will be table stakes is critical; these leaders must
also have the foundational leadership ability to inspire, engage, and develop excep-
tionally efficient teams who can execute the strategy.
In terms of strategy, CEOs are focused on “creating new business models because of
disruptive technologies,” which will require an agile workforce that can understand
the need for change, embrace the new path forward, and adapt virtually every-
thing they know and every skill they have mastered to succeed in the new model. The
workforce must have faith that their leaders can steer them safely through the shoals
to the distant shore.
4 Thomas Singer, Anuj Saush, and Anke Schrader, Sustainability Practices: 2018 Edition, The Conference Board,
December 2018.
5 Van Ark, StraightTalk® Global Economic Outlook 2019.
https://www.conference-board.org/publications/publicationdetail.cfm?publicationid=8240
www.conferenceboard.org c-suite challenge™ 2019: the future-ready organization 11
Cost control reemerges as a critical issue, in line with the growing concern over recession
risk. The impact of digital technologies is also clearly being felt—innovating go-to-market
strategies is a common problem faced by most firms across the globe.
Table 2 Internal stress points are very global: it’s all about talent and competition from disruptive technology
What are the top 3 issues that will require your greatest attention in 2019 in relation to the your organization?
INTERNAL HOT-BUTTON ISSUES
CEOs
Overall US Europe Japan China
Latin
America
Other
C-Suite
Attraction and retention of top talent 1 1 1 1 1 1 1
Creating new business models because of
disruptive technologies
2 2 2 3 3 2 2
Developing Next Gen leaders 3 3 3 2 5 4 3
Better alignment of compensation and
incentives with business performance
4 6 6 9 2 6 6
Reduction of baseline costs 5 4 5 5 7 3 4
Volatility in cash flow 6 7 10 11 4 7 9
A more an effective performance
measurement system for employees
7 9 7 6 6 5 7
Managing mergers & acquisitions 8 5 4 7 8 13 5
Workforce diversity 9 10 9 4 11 11 8
Compliance with data privacy regulations 10 12 8 13 13 8 10
Wage increases 11 11 11 8 10 9 12
Labor relations 12 14 12 10 9 10 11
Providing healthcare benefits for employees 13 7 14 12 12 12 13
Abusive behavior in the workplace 14 13 13 14 14 14 14
N = 795 N = 132 N = 318 N = 79 N = 118 N = 31 N = 588
Note: The total N for the five regions listed is 677; the overall N of 795 includes respondents from regions not listed.
Source: The Conference Board - C-Suite Challenge 2019
c-suite challenge™ 2019: the future-ready organization www.conferenceboard.org12
The Future-Ready Organization
The Shape of Things to Come
When CEOs paint the picture of what the organization of the future looks like, what
emerges from the responses to this year’s survey is an archetype of a company that puts
the customer at the center, reshapes the way we work, and achieves the elusive balance
between short-term goals and long-term vision. Reaching this ideal requires a compre-
hensive, holistic approach.
The digital revolution is underway, and the future playing field is being determined today
by technology, evolving consumer and workplace preferences, demographic shifts, and
policy responses. Business assumptions about products, pricing, and scalability no longer
hold true. The shape and makeup of global organizations are changing, driven by the new
opportunities and risks that these factors create. For firms of all sizes, the boundaries
that once delineated and sometimes protected a company from its external environment,
restricting the flow of resources and information and limiting innovation and productivity,
are blurring. Going forward, the distinction between what’s internal or external to the
organization will be of little consequence.
Gaining future advantage requires a big-picture view that stretches across the value chain
and extends outside the corporate walls. Basic assumptions must be questioned: Who
are our customers and our competitors? What are our organizational boundaries? Who
are our partners? What skills do we need? How should we be structured?
According to our CEO and C-suite respondents, the changes now underway accel-
erate the urgency of transformation. Customer-centricity driven by agile methodologies
and design thinking along with new go-to-market strategies that emphasize customer
experience over product will be fundamental to success. How work gets done is
redefined as boundaries and hierarchies give way to flexible internal and external
networks and fluid cross-functional teams. Decisions are made faster and with insights
from better data, often derived from artificial intelligence.
Perhaps most importantly, the successful organization and CEO will have achieved
balance between implementing their long-term vision and strategy and short-term
performance, the most critical hallmark of operational efficiency for future success.
www.conferenceboard.org c-suite challenge™ 2019: the future-ready organization 13
The impact of being short-sighted The danger in a slowing economy is succumbing to
the temptation to skimp on both time and resource investment in the digital future to
boost short-term results, which jeopardizes future competitiveness. If an …
C-SUITE CHALLENGE™ 2020
Risks, Opportunities, and Hot-Button Issues
C-SUITE CHALLENGE™ 2020
Risks, Opportunities, and Hot-Button Issues
by Charles Mitchell, Ilaria Maselli, Rebecca L. Ray, PhD, and Bart van Ark
3 Executive Summary
7 C-Suite Challenge™ 2020
9 External Hot-Button Issues
22 Internal Hot-Button Issues
35 Survey Demographics
36 About the Authors
Acknowledgements
About the Survey
www.conferenceboard.org c-suite challenge™ 2020 3
C-SUITE CHALLENGE™ 2020
Executive Summary
Since 1999, The Conference Board CEO Challenge® survey has asked CEOs across the
globe to identify the most critical issues they face and their strategies to meet them.
Since 2017, the C-Suite Challenge has expanded the survey pool beyond CEOs to the
entire C-suite. This year’s survey, conducted between September and October 2019,
asked 1,520 C-suite executives, including 740 CEOs across the globe, for their views on
the external and internal stress points they face, the need and will to collaborate with
nontraditional partners to drive future growth, and the impact that cyber risk and more
sophisticated attitudes toward data privacy will have on their organizations in a digitally
transformed business environment. This first report focuses on the hot-button issues,
external and internal to firms, as seen by CEO and other C-suite executives.
External Hot-Button Issues
Recession risk and uncertainity about trade and global competition dominate concerns for 2020
EXTERNAL HOT-BUTTON ISSUES
CEOs Non-CEOs
Global USA Europe
Latin
America China Japan C-Suite
Recession risk 1 1 1 2 T-1 2 1
Uncertainty about global trade 2 T-4 3 1 T-1 5 3
More intense competition 3 2 4 5 3 3 2
Global political instability 4 T-4 2 3 4 4 4
Tight labor market 5 3 6 10 T-8 1 8
More demanding customers 6 7 5 6 T-5 8 7
Cybersecurity 7 6 10 8 11 T-6 6
Declining trust in political and policy institutions 8 8 7 7 T-8 T-12 10
Impact of climate change on our business 9 12 8 4 18 T-6 9
Tougher regulatory environment 10 9 11 11 7 10 5
Effects of economic sanctions 11 11 12 14 T-5 9 11
Currency volatility 12 T-14 16 12 10 15 13
Other 13 10 13 9 T-16 11 17
Effects of Brexit 14 T-14 9 16 T-16 18 12
Income inequality 15 13 15 13 T-13 T-12 16
Uncertainty in corporate tax policies 16 T-14 14 15 T-13 16 14
Volatility in energy prices 17 17 17 17 12 T-12 15
Terrorism 18 18 18 18 15 17 18
N= 740 N=123 N=162 N=188 N=89 N=112 N=780
Note: T indicates tied ranking
Source: The Conference Board C-Suite Challenge 2020
c-suite challenge™ 2020 www.conferenceboard.org4
Recession risk For the second consecutive year, recession risk is the top external
concern for CEOs globally and other C-suite executives, including CFOs—despite
leading economic indicators signaling that a small improvement in the global outlook
is more likely than recession in 2020. Just two years ago, global recession was barely
on the minds of CEOs in our survey. One real risk of this recession mindset is that it can
become a self-fulfilling prophecy.
Anxiety amplified Today’s heightened recession concerns are amplified by what CEOs
see as continued uncertainty around global trade, increasing competition, global political
instability, and tightening labor markets—which, in themselves, can be significant
restraints on business growth.
Trade tensions Uncertainty around global trade is most acutely felt by responding CEOs
in both China and Latin America. Though still a top-five external concern, CEOs in both
Japan (ranked fifth) and the United States (tied for fourth) give it less emphasis than their
global peers, while Europeans rank it as their third top concern. When looking at the full
set of C-suite responses, executives in Manufacturing rank global trade as their number-
one external issue—higher than C-suite executives in both Financial Services (fifth) and
Nonfinancial Services (second).
Sanctions biting in China Responding CEOs in China believe dealing with the effects of
economic sanctions will be a priority for their organizations in the coming year. They place
this issue fifth—the highest ranking by any region/country by a considerable margin.
CEOs globally and in the United States rank it eleventh, while CEOs in emerging markets
rank it ninth and those in mature markets have it even lower, at thirteenth. The concern
expressed by CEOs in China is likely linked to the US government’s more aggressive
trade approach. In November 2018, the US Justice Department launched its “China
Initiative,” which formally encourages US law enforcement agencies to aggressively
advance their China cases—many more indictments are expected to follow on the heels
of Huawei, which is accused of selling communications equipment to Iran in violation of
US sanctions on that country.1
Tight labor market There is really no single global labor market story. CEOs in mature
markets give this issue a considerably higher ranking (third) than their peers in emerging
markets (tenth). It is the top-rated issue in Japan. Human capital executives responding
to our survey cite the tight labor market as their number-two external hot-button issue,
after recession risk. Labor market tightness in many mature economies is reaching
historic levels, including the United States, Germany, and Japan, creating angst about
the ability to find qualified workers. This macro-level concern has a direct link to the
global number-one internal hot-button issue in this year’s survey—attraction and
retention of top talent.
Cybersecurity The risks and potential costs of cyberattack, from securing corporate
secrets and intellectual property to safeguarding customer, partner, and employee
information, remain priorities for CEOs globally. Cybersecurity is ranked seventh
among external hot-button issues for CEOs and sixth for C-suite executives. While
more than 70 percent of responding CEOs globally say they plan to increase their
1 “The US/China Trade Dilemma,” The Conference Board, webcast, February 20, 2019.
https://www.conference-board.org/webcasts/ondemand/webcastdetail.cfm?webcastid=4014
www.conferenceboard.org c-suite challenge™ 2020 5
cybersecurity budgets in the coming year, almost 40 percent say their organizations
still lack a clear strategy to deal with the financial and reputational impact of a cyber-
attack or data breach.
How’s the weather? The impact of climate change on business is slated to get more
attention from CEOs globally in the coming year, rising to ninth overall on their list of
external hot-button issues, up from eleventh in 2019. CEOs in both Latin America (fourth,
up from tenth in 2019) and Europe (eighth, up from thirteenth) are driving the rise. But is
it high enough on their radar? The heightened awareness of CEOs globally comes amid
their expectations for increased regulation of environmental impacts and a greater focus
by organizations on public reporting about climate-related risk.
Internal Hot-Button Issues
Talent is the number-one internal stress point globally. Creating innovative cultures and
new business models are also a focus for CEOs in 2020
INTERNAL HOT-BUTTON ISSUES
CEOs Non-CEOs
Global USA Europe
Latin
America China Japan C-Suite
Attraction and retention of top talent 1 1 1 1 1 2 1
Create new business models because of
disruptive technologies
2 2 2 3 3 4 2
Create a more innovative culture 3 5 3 2 4 3 3
Develop "Next Gen" leaders 4 3 5 5 T-6 1 4
Cost reduction 5 6 4 7 T-6 8 5
Data analytics/data collaboration 6 4 10 6 8 10 6
Volatility in cash flow 7 T-10 7 8 5 T-16 11
Better alignment of compensation and
incentives with business strategy
8 8 14 9 2 7 9
Manage mergers and acquisitions 9 7 6 11 12 13 7
Build a more inclusive culture 10 9 11 14 T-13 5 8
A more effective performance
measurement system for employees
11 T-15 9 10 9 9 10
Wage inflation 12 17 8 17 T-10 T-11 15
Redistribute work between humans
and machines
13 14 16 12 T-10 T-11 13
Workforce diversity 14 T-10 12 16 T-16 6 16
Data privacy 15 13 15 15 15 T-16 12
Implement equal pay for equal work 16 19 13 4 19 T-16 14
Labor regulations 17 18 17 13 T-13 T-14 18
Other 18 12 18 18 T-16 T-14 17
Provide healthcare benefits for employees 19 T-15 19 19 T-16 19 19
N=740 N=123 N=162 N=188 N=89 N=112 N=780
Note: T indicates tied ranking
Source: The Conference Board C-Suite Challenge 2020
c-suite challenge™ 2020 www.conferenceboard.org6
Concerns about talent and skills shortages, disruptive technologies, and building
an innovative culture to nurture talent are the top internal stress points CEOs say
their organizations face in the coming year. Other concerns center on developing
next-generation leaders and (with the risk of recession top of mind) controlling costs.
Finding and keeping talent Regardless of a company’s location, size, or industry sector,
finding and keeping talent is the top internal stressor for CEOs and the C-suite in 2020.
Demand for highly talented employees now exceeds supply in most mature economies
and, as a result, job openings are more difficult to fill, while in some regions, labor
costs are accelerating. However, talent challenges in emerging markets result from a
shortage of qualified candidates, not a lack of people. The global challenge in acquiring
and retaining talent requires companies to be more strategic—knowing not only what
qualities and skills to recruit for, but also how to recruit more efficiently and effectively.
One emerging tool: artificial intelligence, which can be used to significantly enhance the
employee experience, supporting recruitment, engagement and retention of key talent.
New business models CEOs globally and C-suite executives cite create new business
models because of disruptive technologies as their second most-critical internal
hot-button issue. There is a feeling of greater urgency among emerging-market
CEOs than those in more mature economies, which should raise a warning flag around
complacency, considering the current speed of disruption. The impact of business
model transformation on an organization goes well beyond the external relationship
with customers and how a business goes to market. Organizations must quickly pivot
in response to new risks and opportunities, requiring changes in organizational culture,
structure, leadership, and a continuous evolution of talent and upskilling.
Building a culture of innovation A strong culture of innovation can energize and enhance
a company’s innovation performance. In turn, continuous innovation keeps a brand
relevant and refreshed during periods of intensifying competition and frequent market
disruptions and can serve as an effective recruitment and retention tool for quality talent.
It’s all about vision and looking forward, even if the “next big thing” means large-scale
internal disruption. CEOs globally rank create a culture of innovation as their third most-
critical internal hot-button issue. The ranking is consistent across geographies, industry
sectors, and company size.
CEOs versus HC executives While there is general alignment between CEOs and other
C-suite executives when it comes to the internal stress points affecting organizations,
there are interesting differences between CEOs and responding human capital (HC)
executives. While the HC executives agree with CEOs on the importance of attracting
and retaining talent, HC executives show greater concern around building a more diverse
workforce and creating the inclusive culture to support it.
www.conferenceboard.org c-suite challenge™ 2020 7
C-Suite Challenge™ 2020
The global economy’s continued weakness, disruptions in global trade relationships
between the United States, China, Europe, and other parts of the world, uncertainty
about how Brexit will play out, along with geopolitical events in the Middle East,
Latin America, China, and Hong Kong, all make for a volatile and unsettling
global picture for 2020.
Now couple those geopolitical stressors with the reality of more intense competition as
the new digital economy forces a rethink on business models, higher expectations from
more demanding and discerning customers, the pressure to innovate, and the struggle to
find and retain quality talent—all while trying to hold the line on costs, defending against
cyberattacks, and meeting tougher regulations on data. This is the environment today’s
business leaders and their organizations now face. No one ever said it would be easy.
With the world economy expected to grow by less than 3 percent per year over the next
decade—and as global workforces shrink, output struggles to grow, demand for goods
and services change, and populations age—firms should expect to compete more fiercely
for market share. In this challenging context, firms will have to be even more strategic
in their understanding of which areas of the globe will provide the best opportunities.
They will also need to rethink how they can optimize these opportunities. It will likely
require the transformation of business models, a more holistic and clear understanding
of the business, political, and social ecosystems their organizations operate within, and
new approaches to collaboration and partnerships, along with a re-evaluation of the risks
and rewards such partnerships create.
Today, amid the disruptive impacts of digital transformation, few organizations have the
knowledge or the resources to ensure future success by going it alone. The capacity to
collaborate to build enough scale, re-imagine business models, and obtain (or at least
borrow) hard-to-find skills and talent, requires cultural transformation, the creation of
more flexible and fluid internal organizational structures, and development of wide-
ranging external networks and nontraditional partnerships to achieve common goals.
This capacity to collaborate will likely be a decisive factor in future success. The era of the
“lone corporate wolf” successfully conquering new markets and creating breakthrough
innovation through its own R&D function is in decline.
In this world of increasing complexity, disruptive innovation, and slow growth,
what do business executives see as key challenges? And what actions can they
take to ensure success?
c-suite challenge™ 2020 www.conferenceboard.org8
Since 1999, The Conference Board CEO Challenge survey has asked CEOs across the
globe to identify the most-critical issues they face and their strategies to meet them.
Since 2017, the C-Suite Challenge has expanded the survey pool beyond CEOs to the
entire C-suite. This year’s survey, conducted between September and October 2019,
asked 1,520 C-suite executives, including 740 CEOs across the globe, for their views
on the external and internal stress points they face; the need and will to collaborate
with nontraditional partners to drive future growth; and the impact that cyber-risk and
more sophisticated attitudes toward data privacy and regulation will have on their
organizations in a digitally transformed business environment.
This report, the first of three related to our 2020 survey, focuses on the CEO and C-suite
views of “hot-button issues”—the issues and challenges that executives believe will
require a special focus in the coming year. Additional reports will take more in-depth
looks at CEO and top executives’ views of collaborating with external partners to improve
competitivenss and the risks and opportunities surrounding cybersecurity and data
privacy—issues that pose unique challenges in the digital era.
www.conferenceboard.org c-suite challenge™ 2020 9
External Hot-Button Issues
Recession risk, trade disruptions, and intensifying
competition head the list for 2020
For the second consecutive year, recession risk is the top external concern for CEOs
globally—a view also shared by other C-suite executives, including CFOs. Just two
years ago, in 2018, global recession was barely on the minds of CEOs—it ranked a lowly
nineteenth on a list of 28 combined external and internal hot-button issues.
Today’s heightened recession concerns are amplified by what CEOs see as continued
uncertainty around global trade, increasing competition, global political instability, tight-
ening labor markets (which themselves can be significant restraints on business growth),
more demanding customers, and growing risk around cybersecurity and data use and
protection. Only CEOs in Japan and Latin America do not rank recession risk as their top
concern in the coming year—however, they do have it ranked second.
• Recession risk
• More intense competition
• Tight labor market
• Uncertainty about global trade
• Global political instability
USA
Europe China
Latin America Japan
Recession risk is the top external concern for CEOs in the United States,
Europe and China. Disruption of global trade, more intense competition, and
political instability are shared stressors across all regions.
Source: The Conference Board C-Suite Challenge 2020
• Recession risk
• Global political instability
• Uncertainty about global trade
• More intense competition
• More demanding customers
• Uncertainty about global trade
• Recession risk
• Global political instability
• Impact of climate change on
our business
• More intense competition
• Tight labor market
• Recession risk
• More intense competition
• Global political instability
• Uncertainty about global trade
• Recession risk
• Uncertainty about global trade
• More intense competition
• Global political instability
• Effects of economic sanctions
• More demanding customers
c-suite challenge™ 2020 www.conferenceboard.org10
One clear and present danger of this recession mindset is that it can be a self-fulfilling
prophecy. Nobel Prize-winning economist Robert J. Shiller, in his 2019 book Narrative
Economics: How Stories Go Viral and Drive Major Economic Events, writes that the
probability that a recession will come soon—or be severe when it does—depends
in part on the state of ever-changing popular narratives about the economy.2 For
consumers, these narratives affect decisions on whether to spend or save, whether
to take a demanding or easy job, and whether to take a risk or stick with something
safer. For business leaders, the prevailing narratives affect deliberations on whether to
hire more help or lay off employees, whether to expand or retrench, or even when to
start a new enterprise.3
The temptation is that, when faced with uncertainty, business leaders will take a
wait-and-see attitude, delaying investment, or will (in a more extreme case) mortgage
their long-term strategic plans—by skimping on both the time and the resource
investment required to maintain future competitiveness—to boost short-term results.
The result: an organization is likely to find itself behind the competitiveness curve
when the downturn ends.
It’s not just a theory. There is a hint that the fear of recession is turning into concrete
action—cost reduction is a top-five internal hot-button issue for CEOs in this year’s
survey, particularly in Europe. The Atlanta Federal Reserve reported at the end of
November that 12 percent of surveyed businesses, including one in five manufacturers,
cut or delayed capital spending in the first half of 2019 because of trade tensions and
tariff worries—double the rate seen in the first half of 2018.4
2 Robert J. Shiller, Narrative Economics: How Stories Go Viral and Drive Major Economic Events (Princeton, NJ:
Princeton University Press, October 2019).
3 Robert J. Shiller, “What People Say about the Economy Can Set Off a Recession,” New York Times,
September 12, 2019.
4 Theo Francis and Thomas Gryta, “U.S. Firms Pull Back on Investment ,” Wall Street Journal, November 24, 2019.
https://www.nytimes.com/2019/09/12/business/recession-fear-talk.html
https://www.wsj.com/articles/u-s-firms-pull-back-on-investment-11574591400?mod=searchresults&page=1&pos=7
www.conferenceboard.org c-suite challenge™ 2020 11
Global Economic Outlook: Are Recession Fears Justified?
The global economy took a bigger hit in 2019 than anticipated, slowing to 2.3 percent,
down from 3.3 percent in 2017 and 3 percent in 2018. The slowdown is disconcerting
because, over the past two decades, a dip in global growth below 2 percent has often
meant recessions in the form of GDP contractions across a broad range of regional
economies. The downturn has been particularly strong among manufacturers. Recession
fears are currently widespread, but appear to be overblown. We expect global growth to
remain slow, but slightly improve, in 2020, reaching 2.5 percent.
While no widespread global recession has occurred in the last decade, global growth
has now dropped below its long-term trend of around 2.7 percent. The fact that global
GDP growth has not declined even more in recent years is mainly due to solid consumer
spending and strong labor markets in most large economies around the world. Of course,
current conditions and future challenges differ in regions throughout the world.
Most of the expected uptick to global growth in the coming year is thanks to the
continued strength of consumer spending and tight labor markets, which ensures a
favorable salary and income situation for the working population. Perhaps the biggest
potential downside risk is a notable loss in consumer confidence affecting actual
consumer spending. The risk lies in the possibility that consumers may join business
leaders in responding negatively to a drumbeat of news about potential volatilities,
whether a financial market shock, the escalation of a geopolitical event, or a tariff war
that raises prices of consumer goods. If consumers get concerned about their jobs and
income or the prices for the goods and services they want to buy, the risks of a continued
slowdown or even a recession will escalate.
Source: Bart van Ark, et al., Global Economic Outlook 2020: Stagnating Growth amid an Uncertain Outlook,
The Conference Board, Research Report 1707, November 2019.
https://www.conference-board.org/publications/publicationdetail.cfm?publicationid=8797
www.conferenceboard.org12 c-suite challenge™ 2020
The confi dence gap: how business and consumers
see the future
In many countries, the gap between
business confi dence and consumer
confi dence is exceptionally wide. Two
measures of business and consumer
confi dence tracked by The Conference
Board, the Consumer Confi dence Survey®
and The Conference Board Measure
of CEO Confi dence™, show that this
is especially true in the United States
(chart below). Business leaders are more
affected by uncertainties in the global
economy (such as the US-China trade
disputes, Brexit, the Hong Kong confl ict,
and continued tensions in the Middle
East) than consumers are. Consumers are
certainly not immune, but are less likely to
respond to these risks until they pose an
immediate threat to their jobs, incomes,
and lives. Ultimately, these divergent views
will have to come closer together. Either
consumers will be infected by negativity,
especially if slower business growth puts
their jobs at risk, or business leaders may
temper their concerns once the risks they
perceive fail to escalate. In this outlook, we
argue that consumer strength is most likely
to continue, while business confi dence will
recover as the industrial production decline
bottoms out and trade tensions recede.
Note: *Shaded areas represent periods of recession.
Sources: Consumer Confidence Survey®, The Conference Board Measure of CEO Confidence™, and the
National Bureau of Economic Research business cycle dates
20
40
60
80
100
120
2014 2015 2016 2017 2018 20192006 2007 2008 20102009 2011 2012 2013
The gap between consumer and business confidence is exceptionally wide
Consumer Confidence Survey™ (Expectations Index) and The Conference Board Measure of
CEO Confidence™, 2006–2019
20
30
40
50
60
70
80
The Conference Board
Measure of CEO Confidence™
(right side)
Consumer Confidence Survey® Expectations Index
(left side)
https://www.conference-board.org/data/consumerconfidence.cfm
https://www.conference-board.org/data/ceoconfidence.cfm
https://www.conference-board.org/data/ceoconfidence.cfm
www.conferenceboard.org c-suite challenge™ 2020 13
Table 1
Recession risk, trade disruptions, and intensifying competition are critical external
stress points for 2020
CEOs in the United States and Japan share growing concern over tight labor markets. In Latin America, the impact
of climate change is a majaor stressor. Generally, there is strong alignment between CEOs and the C-suite, though
C-suite executives have more concern over a tougher regulatory environment.
Dealing with today’s hot-button issues is an essential part of a C-suite executive’s job. Rank the TOP THREE hot-button
issues in relation to the external environment that you believe will require your greatest attention in 2020.
EXTERNAL HOT BUTTON ISSUES
CEOs Non-CEOs
Global USA Europe
Latin
America China Japan C-Suite
Recession risk 1 1 1 2 T-1 2 1
Uncertainty about global trade 2 T-4 3 1 T-1 5 3
More intense competition 3 2 4 5 3 3 2
Global political instability 4 T-4 2 3 4 4 4
Tight labor market 5 3 6 10 T-8 1 8
More demanding customers 6 7 5 6 T-5 8 7
Cybersecurity 7 6 10 8 11 T-6 6
Declining trust in political and policy institutions 8 8 7 7 T-8 T-12 10
Impact of climate change on our business 9 12 8 4 18 T-6 9
Tougher regulatory environment 10 9 11 11 7 10 5
Effects of economic sanctions 11 11 12 14 T-5 9 11
Currency volatility 12 T-14 16 12 10 15 13
Other 13 10 13 9 T-16 11 17
Effects of Brexit 14 T-14 9 16 T-16 18 12
Income inequality 15 13 15 13 T-13 T-12 16
Uncertainty in corporate tax policies 16 T-14 14 15 T-13 16 14
Volatility in energy prices 17 17 17 17 12 T-12 15
Terrorism 18 18 18 18 15 17 18
N= 740 N=123 N=162 N=188 N=89 N=112 N=780
Note: T indicates tied ranking
Source: The Conference Board C-Suite Challenge 2020
c-suite challenge™ 2020 www.conferenceboard.org14
Table 2
CEOs in mature markets and emerging markets see their worlds differently
Mature-market CEOs have heightened concern around tight labor markets, while emerging-market
CEOs see declining trust in political institutions, tougher regulation and currency, and energy volatility
as more important external stress points in the coming year
Rank the TOP THREE hot-button issues in relation to the external environment that you believe will
require your greatest attention in 2020.
EXTERNAL HOT-BUTTON ISSUES
Mature Markets CEOs Emerging Markets CEOs
Recession risk 1 1 Uncertainty about global trade
More intense competition 2 2 Recession risk
Tight labor market 3 3 More intense competition
Uncertainty about global trade 4 4 Global political instability
Global political instability 5 5 Declining trust in political and
policy institutions
Cybersecurity 6 6 More demanding customers
More demanding customers 7 7 Tougher regulatory environment
Declining trust in political and
policy institutions
8 8 Cybersecurity
Impact of climate change on
our business
9 9 Effects of economic sanctions
Tougher regulatory environment 10 10 Tight labor market
Other 11 11 Currency volatility
Effects of Brexit 12 12 Impact of climate change on our
business
Effects of economic sanctions 13 13 Volatility in energy prices
Income inequality 14 14 Uncertainty in corporate tax policies
Uncertainty in corporate tax policies 15 15 Income inequality
Currency volatility 16 16 Terrorism
Volatility in energy prices 17 17 Other
Terrorism 18 18 Effects of Brexit
N = 436 N = 304
Source: The Conference Board C-Suite Challenge 2020
www.conferenceboard.org c-suite challenge™ 2020 15
Uncertainty about Global Trade
While the feeling of uncertainty is certainly justified by current events, The Conference
Board, in its Global Economic Outlook for 2020, believes that a further escalation of
current trade disputes will be avoided in the coming year.5 The US-China trade dispute
will remain stuck in a holding pattern, as neither side sees an easy road to a substantive
deal that creates a clear win-win. A short-term deal is more of a Band-Aid than a “grand
bargain.” Anxiety over global trade extends beyond just the US-China tiff and the
December tariffs imposed by Washington on Brazil and Argentina. Rather, it is a symptom
of a much broader issue about the future of globalization, and the response of those who
haven’t benefited from it.
In our survey, the uncertainty around global trade is most acutely felt by responding
CEOs in both China and Latin America, where reliance on external trade to generate
growth is of paramount importance. Though still a top-five external concern, CEOs in
both Japan (ranked fifth) and the United States (tied for fourth) give it less emphasis
than their global peers.
When …
The Big Reset
Playbook
What’s Working Now
AUGUST 2020
T H E B I G R E S E T P L A Y B O O K : W H A T ’ S W O R K I N G N O W2
The Big Reset Playbook:
What’s Working Now
In February and March of 2020, the global pandemic set in.
Originating in China, the virus spread around the world.
People began to recognize that the virus was dangerous and
highly contagious. By early March, much of the world was
in some form of lockdown. Social distancing, hand-washing,
masks, and a new online life had begun.
Companies in every industry sector have been impacted.
Travel, hospitality, food service, fitness, and other “close
interaction” businesses were immediately halted, and most
other companies sent their office workers home. Healthcare
providers saw an immediate drop in demand for all high-
margin procedures and visits and started to prepare for
COVID illnesses.
Countries began seeing acute shortages of ventilators,
protective equipment, and sanitation supplies. Some
manufacturers responded by changing production lines and
producing new products to meet these new needs. Many tech
companies started to see explosive growth, as more and more
of our lives went online.
As an organization dedicated to the support and professional
development of HR, we immediately realized the need for rapid
learning and sharing of information among the HR community.
So, through the Josh Bersin Academy, we immediately started
a series of multi-hour, online meetings with HR executives to
understand their reactions, responses, and new strategies for
supporting workforces. At the time of this writing, we have
worked with representatives from more than 160 companies,
and we learn more every day.
Generally speaking, the Big Reset is a reset of our economy,
social lives, home life, and businesses. In the early days of
the pandemic, we identified five elements relevant to all
organizations: 1) New ways of working, 2) New financial
priorities and budgets, 3) A new, more empathetic role for
leadership, 4) A renewed and deeper focus on trust, wellbeing,
and support, and 5) A new role for HR. This report summarizes
our findings to date. The Big Reset Initiative is an ongoing
program, so we will publish updates to this report throughout
the remainder of the year and into next.
Four Phases of the Pandemic
We see the pandemic and its business andworkforce impact
in four distinct phases. As we’ve seen in recent months,
these phases have no clear transition points. The continued
spread of the virus calls for constant evolution and continual
adaptation, often dependent on geography and market
economics.
• React: Identify who is affected, understand travel and
work patterns, identify locations at risk, and develop
data systems and response programs that enable fast
communication, multi-functional collaboration (HR,
facilities, finance, safety, IT, and legal all tied together), and
quickly (daily or hourly) respond to a very asymmetric,
violent set of unpredictable issues.
• Respond: Develop a series of programs to help employees
work at home, implement new sick pay and benefits
programs, train people for team leadership in a highly
flexible, dispersed environment, and create programs to
support families, people who fall ill, employee mental and
emotional health, and many other forms of support.
• Return: Develop new protocols and systems to keep
employees and customers infection-free, safe, and secure
in work environments.
• Transform: Redesign products, services, and work
experiences (for employees and customers) to meet new
demands and requirements for safely operating in this
new world.
T H E B I G R E S E T P L A Y B O O K : W H A T ’ S W O R K I N G N O W3
REACT RESPOND RETURN TRANSFORM
HR, IT, Facilities come together
Response task force assigned
Set up emergency team around
the world
Daily standup meetings
Regular all-hands and CEO
communications
Essential vs. Non-Essential
workers
Real-time data on infection and
travel
Real-time feedback and surveys
Reporting of problems, infections,
issues
Remote work policy
Stipend for home office
equipment
Support India and remote offices
Empower HRBP to act and
coordinate
Cut or realign budgets
Share business downturn and
changes
CEO Chief Empathy Officer
Support leaders to help remote
workers
Provide support to furloughed
people
Return and remind of values and
mission
Show positive future and
optimism
Put big projects aside
Remote work training and tools
1:1s, communications, team
connection
Programs for mental health and
resiliency
Increase access to counseling
Cost offset for childcare
Wellness, safety tips, education
on virus
Exercise, fun, kids programs
Online learning on every topic
Home school help and programs
Daily communications on status
and policies
Coaching and counseling on
stress
Furlough or job policies
Mandatory leave, vacation policy
updates
Update to performance process
New workforce plan, new hiring
plans
Swap workers, support dislocated
people
Change bonus accruals, exec pay
Regular pulse surveys and
feedback
Remote interview, onboarding
Train managers on new role and
issues
Apply for government support in
location
Move and change roles, train for
new roles
Create new protocols for safety
and health
Define who “comes back” and who
doesn’t
Create distancing guidelines in
office
Buy masks and other safety
equipment
Stay current on local regulations
and changes
Identify “fear of return” and
address issue
Formalize infection reporting
process
Decide new process for pay and
performance
Reset expectations around
productivity
Create new flexible work policy
Decide what locations to close
Put people into working teams
Create program around stress
and PTSD
Invest in pay and benefits for
economics
Align with ongoing government
policies
Support local community
programs
Train employees on productivity
at home
Roll out new wellbeing program
Roll out new leadership support
program
Reinvent business model
Rethink customer experience
and demand
Move and change roles, train for
new roles
Redefine customer engagement
model
Create new business plans and
goals
Redefine org structure for new
world
Set in place ongoing
measurements
Identify new HR tech platforms
Realign careers and jobs for new
business
Invest in citizenship and diversity
Deal with Black injustice issues
Redefine brand and marketing
message
Create scenario for new wave
of virus
Partner with infection, safety
vendors
Rethink hiring plan
Strengthen internal mobility
programs
Roll out new work at home
strategy
Roll out new facilities strategy
Roll out new customer
interaction strategy
Give leadership a rest and new
energy
Redefine company mission
Realign financial goals
Figure 1: Four Phases of the Pandemic
Big Reset Working Groups
As we started to convene meetings with these 150-plus
executives, we quickly realized that participants had different
issues and interests. Therefore, we formed four working
groups and people self-selected accordingly. Each group was
led by a senior faculty member of the Josh Bersin Academy.
1. Culture and wellbeing: This group discussed wellbeing,
culture, reward systems, and all the new ways companies
were thinking of supporting employees while working
from home, in a new work experience, or in a highly
uncertain and risky environment. This group was led by
Nancy Vitale.
T H E B I G R E S E T P L A Y B O O K : W H A T ’ S W O R K I N G N O W4
2. Workforce transformation: This group focused on how
jobs were changing, how responsibilities shifting, and
how companies were transforming work processes
to maximize productivity. Discussion around new
and evolving roles, skills, and workforce management
happened in this group, which was led by Nazneen Razi.
3. Leadership and learning: Participants discussed all the
issues related to realigning, supporting, and developing
leaders at all levels. Members talked about the need for
new leadership models, new leadership support programs,
and the massive amount of training and coaching needed
to develop to support leaders in this uncertain time. This
group was led by Nuno Gonçalves.
4. Return to Workplace: This group discussed the new
protocols, procedures, and practices for offices, stores,
warehouses, and plants that have reopened, or will be
reopening soon. This group was led by Peter Sackleh.
Throughout this report, we will give you detailed examples
and case studies of what we discovered. Other findings and
resources are available to Josh Bersin Academy members.
The Josh Bersin Academy is a highly scalable learning and
information platform for HR professionals, and we encourage
you to join to get access to the full range of information we are
capturing. Members will find video interviews, events, and
programs on topics such as resilience.
Every company in every industry -- from airlines to food
service to financial services to telecommunications to
technology -- is in the middle of a business transformation.
Customers do not want to do business the old way; they now
want low-touch interactions with companies, products, and
services. That means almost every customer-centric operation
has to change.
Behind this, employees have to change as well. Employees
in hotels or restaurants who are interacting with other
employees or the public need safe ways to commute to work.
They need to guidance on what to wear, how to use canteens
and lunch rooms, the protocols for elevators and restrooms,
and much more. Such employee-centric changes are essential
pre-requisites to the business and customer transformation
taking place.
HR teams are focused on these and many other issues – all
revolving around ways to help the company stay in business
and keep everyone safe.
Twenty Key Priorities
Following are the top priorities for HR and their teams
identified in the Big Reset working groups.
1. Continuous and real-time communication with employees:
A new focus on empathy, support, and connectiveness is
critical to success. Every single HR leader in our groups
discussed the enormous need to create a new support
structure for employees at all levels. This includes
frequent (daily or weekly) communications, all-hands
meetings, and lots of listening, surveys, and feedback.
While much of this was happening before the pandemic,
now companies are now making these and other activities
top priorities. AB InBev started with weekly pulse surveys
at the start of the pandemic and continues to pulse its
employees on a regular basis, with survey questions
customized for different geographies. AB InBev and other
companies now update their communications, learning,
and even procedures every week based on this feedback.
These updates include new micro-learnings, videos, and
policy updates (Atlassian, Kern Health Systems). This new
emphasis on employee communications and response to
feedback, typically being led by HR, has put many CEOs
into the role of “chief empathy officer.”
2. Wellbeing in all forms: The second overarching priority
is a complete top-to-bottom focus on all aspects of
employee wellbeing. Studies by Towers Watson and
many others show that workers are under enormous
stress. The $46 billion wellbeing market is transforming
itself to address the current stresses employees are
facing, along with other mental and physical health
issues. Not only are companies conducting yoga classes
and positive thinking programs, they’re doing cooking
classes, delivering education and training for children, and
adopting many different types of coaching on physical,
mental, and financial fitness. Chubb Insurance created a
“taking care” series and brought in authors and experts
from many domains; PepsiCo created a global wellbeing
T H E B I G R E S E T P L A Y B O O K : W H A T ’ S W O R K I N G N O W5
communications program in days; Santander focused
its entire response around health and family support.
Yum! Brands created an end-to-end program spanning
employee safety and workplace protocols, contactless
customer service, and emotional wellbeing. Amicus now
uses an online system that prompts employees to take
safety clearning and distance measures and sends alerts
when office density rises, alerting people to stay at home.
3. Supporting and developing leaders: Among the many
employee groups going through massive change, one
group most affected is management. Work group
participants discussed how their leadership programs
needed to change to address different working conditions.
Today, leaders need to learn how to supervise and support
people working at home. Every leader needs to become
comfortable supporting employees and their families.
Trust, patience, and forgiveness are new leadership
qualities (see the model later in this report). Autodesk,
Ford, Verizon, and ServiceNow are among the companies
refocusing leadership development on communication,
support, empathy, and trust.
4. Multi-functional HR. HR teams must now broaden their
areas of expertise and work directly with other functional
areas of the business such as safety, facilities, IT, legal,
and finance. Many HR teams are finding that their scope
of responsibility has expanded, and in some cases, people
are moved into completely new roles. HR professionals
have to learn about workplace safety, public health,
and facilities design. They have to deal with issues like
employee commutes, restroom and cafeteria policies, and
a myriad of legal issues created by the pandemic. Yum!
created safety officers with integrated responsibility in
each location. Digital Bank of Singapore created crisis
response leaders in each geography who were responsible
for the integration of safety, workplace, HR, and legal
issues. Sabre reinvented its HR operating model overnight,
bringing together a multi-function HR team to design a
new voluntary retirement program and series of other
offerings and to create a cross-functional, 24-hour-a-day
service center.
5. Adapted talent practices. Throughout the pandemic, most
organizations have continued to hire, onboard, train,
manage, and promote their people. But every one of these
talent practices has changed. Recruiting and onboarding
is now being done digitally, often with great success.
Companies such as L’Oréal, Microsoft, Epic, and Atlassian
are using video interviewing, managing internships
remotely, and conducting online onboarding. AB InBev and
JP Morgan adapted their performance processes to reflect
continually changing goals. In fact AB InBev found that
its Leadership 360 program, which was being considered
for cancellation , had the highest response ever (97%
response), demonstrating how important people believe
leadership is at this point in time. Edwards Lifesciences
conducted design thinking sessions to brainstorm new
solutions for remote work, team collaboration, and Zoom
fatigue. Bank of America, Sanofi, Santander, Novartis,
and many others continue to upgrade their learning and
career management programs as people are being moved
into new roles. RBC, for example, transitioned 40% of its
branch employees to remote work and retrained them to
become financial advisors as well as bankers. Sainsbury’s
used its “Christmas Priority” process to shut down all
non-essential talent practices and let people focus on
food delivery, retail operations, and digital services.
Sabre did a total organizational reorg, asking 60% of
employees to change roles or managers or both. All these
program changes were supplemented with extensive
communication. In all cases, adoption in was higher than
expected.
6. Digital transformation at speed. Executives have discussed
how rapidly their employees adopted digital tools for
remote work, recruiting, onboarding, collaboration,
and communications, as well as for surveys and check-
ins. Tools for daily attestation, virus response, remote
onboarding, team collaboration, and real-time information
were implemented in days or weeks. The adoption of
large-scale HR systems was often put on hold or slowed
down while resources focused on rapid digital solutions.
At Continuum Global Solutions, a contact center that
experienced a surge in demand, the company accelerated
training and onboarding through rapid deployment of online
digital tools. Employees were able to get through materials
much quicker due to reduced distractions often encountered
in office environments, while engagement and retention
T H E B I G R E S E T P L A Y B O O K : W H A T ’ S W O R K I N G N O W6
levels improved as well. A PepsiCo executive talked about
the importance of “being scrappy” and solving probems
quickly.
7. Agile problem solving without agile methodologies. More
than a third of executives describe their companies as
“agile” in the way they operate, but most of them refer to
the formal agile development and design methodology.
The pandemic has put agile thinking and problem solving
into daily work, without the formal processes. Leaders
have seen that employees can work together in teams
and, with focus, solve problems in days or weeks. The
traditional lengthy processes to agree on solutions,
gain stakeholder buyin, create solutions, and gradually
drive adoption are being dramatically condensed. We
hope this newfound agility continues. PepsiCo, for
example, developed a virtual onboarding program in
four weeks that probably would have taken six months
before the pandemic. Nextdoor developed a new COVID
communication portal using an existing onboarding
system over a weekend. AB InBev is supplementing its
annual engagement survey with regular pulse surveys; the
company received approximately 7,500 weekly responses
at the pandemic’s height. The company also revamped
its performance management process to create monthly
checkins, a project that had been lagging for years.
8. Direct focus on family. Most of us have been taught to
leave behind our family problems at the start of each
workday. Issues such as sick children, children out of
school, aging parents, or health problems were largely
ignored by employers. That has all changed. Leaders are
developing many programs to directly support workers
and their families. Chubb and Autodesk used internal
Slack channels to create family and friend caretaking
tools, tutoring aid, and cooking classes. Nokia identified
all employees who were likely home alone so they could
receive special attention; the company also identified
families with aging parents who needed special support.
ServiceNow offers schooling and cooking classes to
children. Novartis made its Coursera library available
to all employees and their families. Honest Burgers
opened restaurant locations specifically designed to be
close to employees so they would not have to take public
transportation to work. Chubb Insurance held family
hours online and movie nights. Kerns Health System had a
driven-in movie night in the parking lot.
9. Maintaining productivity while adapting. Employees now
have so many distractions (family issues, health worries,
safety concerns) and the digital always-on workplace is
so distracting that many HR leaders have been looking at
ways to make work easier while maintaining productivity.
This is now especially important with so many workforces
dispersed. Companies like Danone, Bank of America, DBS
Singapore and others quickly developed training and
support programs to teach people how to run meetings,
how to manage remotely, and how to stay focused in a
world of never-ending interruptions. And many companies
(L’Oréal, Atlassian) set aside “no-meeting times” so people
could focus, rest, and re-energize themselves instead of
becoming drained by video conferencing all day. The CEO
of Sabre saw that employees were so productive when
working from home that the company now has a new
“work anywhere” strategy.
10. Remote and flexible work goes mainstream. Prior to the
pandemic about half of the companies we surveyed did
not permit work at home. Today it's 99% or more. Almost
every company now has work-at-home policies, tools,
platforms, and systems. The tech industry has exploded
with growth. Autodesk set up a whole series of Slack
channels to help people talk about home issues, childcare,
and work productivity from home. ServiceNow and Chubb
have their CEOs on all- hands calls supporting people
at home and giving them a stronger than ever sense of
belonging. However, it’s important to remember that
many companies have large numbers of employees who
cannot work from home. For these employee populations,
we’re seeing more flexibility in work hours in order to
help people juggle child care, commuting issues, and other
responsibilities; some are even giving employees extra
money to help defray child care costs when schools and
daycares are closed.
11. Purpose matters. In times of uncertainty and ambiguity,
people are desperate for a sense of purpose. Leaders who
understand the importance of a unitying sense of purpose
are finding competitive advantage. Sainsbury’s purpose
is to “feed the nation.” ServiceNow’s purpose is to create
T H E B I G R E S E T P L A Y B O O K : W H A T ’ S W O R K I N G N O W7
workflow tools to help its customers manage business
through the pandemic. Santander Bank and Royal
Bank of Canada talk about the purpose of helping their
customers and communities better manage and improve
their financial lives. And of course healthcare providers
like the University of Nebraska Healthcare System, the
largest healthcare provider in Nebraska, are focused on
understanding and eliminating the virus. Employees at all
levels have told us that they feel inspired and energized by
their organizations’ purpose – it helps them see through
the uncertainty and focus on doing a good job.
12. The rise of trust. In my very first article about the
pandemic, I predicted a need to reinforce trust. Research
by Edelman and others shows that citizens around the
world do not trust government (only 14% of Americans
believe the federal government will do the right thing)
and many don’t trust the media. But most people do trust
their employers. Therefore, it is critically important that
company leaders live up to this sense of trust. When
companies don’t create safe workplaces, there are
immediate repurcussions (and we often read about them
in the news). So CEOs and operations leaders are now in
a world where trust (which I define as competency, ethics,
and listening) is sacrosanct. Many companies have chosen
not to lay off workers (ServiceNow, Banco Santander, DBS
Singapore, Verizon, Danone, Target, and Wal-Mart are
among these); some have given employees pay raises. Such
moves are not only business continuity strategies; they
also create trust and loyalty in a time of extreme stress.
13. Distributed authority and empowerment. Any response to
the pandemic must involve both centralized information
and policymaking coupled with local authority, skills,
and information. Pizza Hut, for example, created local
“health-at work-officers” who take responsibility for back-
to-work policies and implementation. PVH executive said
that local business partners in Italy shut down stores well
before headquarters took enterprise-wide action. DBS
Singapore has country-located crisis teams that bring
multi-functional leaders together. Companies are now
pushing forward on the goal of creating more distributed
organizations with empowered employees – operating
under a network of shared awareness, policies, and rules.
14. Improved pay and benefits. As odd as it sounds, many
employers we talk with are raising pay, increasing benefits,
improving sick pay, expanding leave policies, and generally
helping employees with many aspects of their financial
lives. Target, Wal-Mart, Verizon, and Chubb are among
those companies that either raised wages or made “no
layoff policies” almost immediately.
15. Learning all the time. One of the most interesting findings
from all our conversations is the massive consumption of
learning. Sanofi, for example, launched a new corporate
university at the start of the pandemic and found that
company employees consumed almost a million hours of
training in just two months. In addition to learning about
the virus and health, people are using spare time to learn
about digital tools, professional topics, and new languages.
Companies like Novartis have opened up their course
libraries to families and children, enabling families to learn
online as well. ServiceNow has teachers and chefs from
the company facilities teaching classes (reading, cooking,
exercise) to employees online. L’Oréal launched an online
learning campaign called “Learning Never Stops” to
accelerate upskilling at scale. At the same time, it put into
place initiatives to foster collacoration and community
connections. A L’Oréal executive made an important
point: today people need more contact, not more content.
Therefore, it’s important to complement online learning
with some kind of interaction and collaboration.
16. Rules and policies with consequences. One of the other
findings that comes from our working groups is the need
for clear policies to address pandemic-related issues.
Do I have to wear a mask? Am I allowed to stay home
until I feel safe? What if I don’t feel comfortable taking
public transportation? Will the company pay for my
home office supplies? Can I take a leave if my kids are
out of school? Policies around the these issues – and
many others – must be clear and well communicated;
otherwise people are uncertain and confused. As Keith
Hutchison from NationalGrid put it, people feel more
comfortable when they know what’s optional and what is
not. HonestBurgers, Humana, Legendary Entertainment,
and Autodesk all created in-depth playbooks for every
detail of the new work environment. Humana’s playbook
is 175 pages long and updated every week. This also
T H E B I G R E S E T P L A Y B O O K : W H A T ’ S W O R K I N G N O W8
means ensuring policies (pay, benefits, work allowances)
are equitable and fair to all employees.
17. Operating under uncertainty. Again and again, people ask
“when will life go back to normal?” Most of us are now
realizing that we’ll never see the “old” normal and that
uncertainty will be with us for many months to come.
Therefore, enlightened compay leaders are realizing they
must organize and manage for continuous uncertainty.
They accept that the virus, local conditions, laws, and
political instability will likely cause further change,
sometimes in impossible to predict ways. This means HR
leaders must communicate readiness to help, regardless
of conditions, and they must convey a sense of optimism
and competence even when conditions as continue to
change.
18. Positive psychology. Currently, there is much discussion
about the need for mental, psychological, and physical
resilience. Resilience demands optimism, a sense of joy,
and a realistic but well communicated vision of the future.
Companies are using coaches, psychologists, and many
new tools to help employees take a positive view of the
future – because without it, employees cannot come to
work with focus. For instance, Legendary Entertainment,
one of the most successful movie and comic publishers
in the industry, hired life coaches to help creative and
executive staff learn to meditate, practice yoga, and
embark on vigorous exercise regimens at home.
19. New workplace protocols. A whole series of new workplace
protocols are being developed. These encompass areas
such as workplace operations, workplace technology,
safety and wellbeing, service delivery and execution,
logistics, and culture. Every company is reinventing these
areas and deciding when, how, and under what conditions
people return to physical workspaces. There are new
protocols for testing, identifying vulnerable employees,
PPE supplies and policies, OSHA and cleaning protocols,
insurance and benefits realignment, and a myriad of
new policies for work at home, remote work technology,
and collaboration. In almost every company, the HR
department is coordinating with peers in facilities, safety,
operations, legal, and finance functions to develop new
policies and protocols. L’Oréal created an e-learning
program, “#safetogether,” to secure the return of
employees to the workplace; the company has made the
program available to other companies and the public. I
think one of the most interesting comments came from a
L’Oréal leader who said that as a …
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