In the past, supply chains and operations were typically very linear. With increased uncertainty and complexity, today’s operations leaders have had to become even more forward-leaning and thinking, particularly in planning for the future of last mile delivery. UPS is taking steps to refine supply chain fundamentals and introduce new components that must exist in the near future for e-fulfillment. Through the use of the right data, analytics, and automation to enhance inventory optimization and transportation movements, UPS is finding new ways to grow, with the supply chain helping to drive that growth.
Guided by a “Prevention First” operating strategy, a more mobile New Zealand Police workforce has achieved impressive productivity gains, and helped build enhanced public trust and confidence. During his presentation at The 2018 Public Safety Summit: Leadership in Turbulent Times, the principal architect of this new policing model, Commissioner Mike Bush, introduced his organization’s shift from a prosecution to a prevention mindset, and from a largely offender-centric approach to one where the needs of victims are at the center of policing.
Over the last several years, the Washington DC Metropolitan Police Department has embarked on a capacity- growing journey integrating new approaches to both human capital and technology. During their presentation at The 2018 Public Safety Summit: Leadership in Turbulent Times, Chief Peter Newsham and Chief of Staff Matthew Bromeland shared their story of collaborating with Mark43 to introduce new technology that provides real-time, essential data to their officers in the field and reduces the time spent on documentation. They also described how they simultaneously created a new civilian position for criminal research specialists to compile and analyze multiple streams of data to support detectives in the field in a timely manner.
It’s not news that the role of the CFO has changed. Finance teams dominated by accountants, risk officers, and administrators are a thing of the past. To create value in the future, finance will have to move beyond controlling the risks of the present to anticipating the opportunities and risks of the future. Traditional tools, such as strong governance, rigorous risk management and sound forecasting, are still important, but they must be supported by a willingness to innovate and experiment with new ideas that may not immediately pay off.
One of the defining characteristics of Caruso’s 12-year tenure as CFO of J&J has been to reorient the finance team around a specific standard of excellence and core principles. Rather than relying on Key Performance Indicators (KPIs) or other performance measures, Caruso redefined the baseline of business proficiency he expected of the finance team. He calls it the finance competency model.
The model has three components—performance, leadership, and integrity. For Caruso, each component forms one side of a pyramid with value in the middle. Lose one side of the pyramid and value escapes. Ultimately the model is designed to evolve the finance team from a group of forecasters and monitors into a group of business leaders. To drive value within J&J, the finance team is expected to deliver superior financial performance by finding solutions that enable business growth, increase shareholder value, and address the needs of its ecosystem stakeholders.
In fall 2014, Mark Stutrud was fishing for salmon in Michigan’s Pere Marquette River when a colleague introduced an intriguing but fraught proposition: interviewing to become the CEO of Lutheran Social Services of Illinois (LSSI), the largest statewide social service agency in the state. As Stutrud cast his line, he considered the challenges: low morale, a looming state fiscal crisis that could imperil LSSI’s funding, and a litigious environment that had led to 80 consent decrees. “My first question,” recalled Stutrud, then the President and CEO of Lutheran Social Services of Michigan, “was, ‘Why, God, would you ever call me to this situation?’”
In 2008, Walt Ekard, the Chief Administrative Officer for San Diego County, asked Nick Macchione, the newly-promoted director of the county’s Health and Human Services Agency, to address a complex and significant question: “How do we help San Diego become a healthier region for the entire county, representing more than three million residents?” Macchione responded by engaging his staff and an array of county, city, and community partners to develop a health strategy, which elected officials used as a launching point for what would become Live Well San Diego, a multi-pronged “vision for a region that is building better health, living safely, and thriving.” To achieve these goals, the county team planned to employ a variety of core strategies, including strengthening the service delivery system, effecting policy and environmental change, supporting positive choices, and improving the culture from within one’s organization. They also identified areas of influence (e.g., health and knowledge) to be measured by a set of key indicators. Above all, the fate of this initiative would hinge on the ability of the county team to establish trust and build an ecosystem that spanned organizational and jurisdictional boundaries, moving beyond politics. Macchione emphasized, “It’s about relationships. It’s about beliefs. It’s about integrity. It’s about legitimacy. It’s all about improving lives.”
In 2011 and 2012, California Governor Jerry Brown issued a pair of executive orders that created both an opportunity and a dilemma for the Office of Fleet and Asset Management (OFAM) in the state’s Department of General Services (DGS). Brown directed OFAM—which oversees the state’s 50,000 vehicles—to reduce its fleet by 7,000 vehicles, increase the proportion of light duty fleet purchases that are Zero Emission Vehicles (ZEV) to 25 percent by 2020, and cut statewide petroleum use by 50 percent by 2030. On the one hand, this meant that OFAM had the chance to make a significant contribution to the mission of reducing greenhouse gas emissions. On the other hand, it raised difficult questions. How would OFAM balance “green goals” and departmental needs (e.g., public safety vehicles with special performance requirements)? In addition, how would the division remain competitive with other suppliers (e.g., rental car agencies)? “If we just have a green fleet and vehicles that people don’t like at a higher cost, they’re not going to go to us,” said DGS Director Daniel Kim. “Our costs escalate and then that’s just a vicious cycle.”
In 2016, the Georgia Department of Administrative Services (DOAS) encountered what then-DOAS Commissioner Sid Johnson characterized as a “crisis situation.” , That August, news broke that a senior official from the Georgia Bureau of Investigations (GBI) had used an agency credit card to make over $87,000 in personal purchases; at least some of the purchases were made via Amazon. A subsequent investigation revealed a breakdown of internal controls, inadequate management oversight, and a broader sense that something had gone seriously awry. “The GBI routinely conducts investigations of misuse of purchasing cards. In this case, it was one of its own employees,” said GBI Director Vernon Keenan. “I [was] totally mortified that this occurred.”
In March 2015 when Hardik Bhatt became the Chief Information Officer for the State of Illinois, he faced significant challenges.7 The state was spending approximately $1 billion annually on Information Technology (IT), yet it ranked in the bottom quartile nationally among state information technology departments. This spending was especially concerning because Illinois had been slow to recover from the Great Recession; in fact, it was one of the few states in the country experiencing population outflow. Finally, there was a sense of urgency. Bhatt estimated that Illinois’ IT system was 45 years behind where it should have been, but with the next gubernatorial election approaching in November 2018, he was only guaranteed a narrow window to pursue reform. Bhatt summarized, “We had to do an overall transformation of 45 years in four years.”
Leadership for a Networked World’s applied research, student innovation challenge, and on-campus summit programs are an initiative of Dr. Antonio M. Oftelie, Innovation Fellow at the Technology and Entrepreneurship Center at Harvard (TECH), part of the Harvard John A. Paulson School of Engineering and Applied Sciences. TECH is a hub for students, faculty, alumni, and government and industry leaders to learn together, collaborate, and innovate. LNW accelerates these efforts by connecting leaders across sectors and developing cutting-edge thought leadership on innovation and organizational transformation.