Red Hat—the world’s leading provider of open source solutions—has experienced rapid growth in a quickly evolving industry. To support this level of growth, the finance team has had to update its processes, layer in new digital tools, develop deeper insights on customers, and work across the business to help the entire company better understand the new landscape. The finance team made this transition by studying the existing ecosystem of the organization and learning how to work within it. From there, the CFO has been able to put finance in a leadership role, guiding innovation within a sound governance framework.
Regardless of industry or discipline, leaders successfully driving enterprise-wide transformation must develop strategies to maintain core activities while incubating, evolving, and scaling innovations. At AB InBev, Peter Kraemer, the Chief Supply Officer, and Elito Siqueira, Global Vice President of Logistics and Operations, are developing a long-term vision to connect with customers and exploring how the future of supply chain can enable that. AB InBev’s Disruptive Growth Organization (DGO) tests new innovations and then determines how effective new approaches, strategies, tools, and techniques are brought back to the company through larger scale pilots. At the same time, they are tenaciously ensuring that their core activities remain strong and consistent.
As demands for greater policing accountability and outcomes continue to increase, police departments across the nation are embracing predictive analytics to not only increase efficiency in operations, but also improve crime prevention and response. Yet with all the potential, most leaders struggle with critical start-up questions such as: How do we start? Where should the methods be applied? What is the impact on the community? How do we test and scale the initiatives?
During The 2018 Public Safety Summit: Leadership in Turbulent Times, Evan Levine from the New York Police Department, Jonathan Lewin from the Chicago Police Department, and Sean Malinowski from the Los Angeles Police Department shared lessons learned on implementing emerging data science and “predictive policing” into public safety strategies. The following synthesizes some of the most important leadership lessons learned.
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.”