“There’s just enough optimism in the air and uncertainty on the ground to cause some confusion,” said Bill Ayers in welcoming more than 160 guests to a panel discussion on “Re-Tension* in the Global Economy.” “We’re here to try to clear away some of the smoke about the economic recovery."
Re-Tension*
-
ability to retain valued employees when each new battle for top talent resurfaces
-
recurring stress…the nervous strain and voltage that flow from the uncertainty accompanying an economic recovery |
The Ayers Group hosted the event, held at the Union League Club in Manhattan on January 14, to provide perspectives that would assist HR and IT professionals in preparing for and leveraging the turnaround.
A social seismic shift
Discussion moderator Robert Dilenschneider, CEO of The Dilenschneider Group, began by noting the enormous impact the issues under discussion will have on the upcoming elections and how critical the role of managing human talent has become. Summarizing his own recent conversations with members of the press and financial community, the PR executive cited several factors that are shaping the work environment:
§ High levels of cynicism, anxiety, and mistrust fostered by terrorism, war, and erosion of freedom in the name of security
§ A national obsession with youth, appearance, and material goods
§ An emphasis in business on growth through M&A activity rather than innovation
§ A shift from working 9 to 5 to 24/7 365 days a year
§ The elevation of celebrities in place of heroes
Indicative of a seismic shift in American society in recent years, these trends affect the outlook for employment, the economy, and the future, he said.
Job creation and the economic outlook
Kathleen Camilli, the US Economist for Credit Suisse Asset Management in New York, provided a two-decade overview of the US economy followed by an upbeat view of what lies ahead: a post-recession boom with substantial rates of real growth.
According to Ms. Camilli, there was substantial job creation last year but because it occurred in small to medium-sized enterprises it slipped under the radar of mainstream employment surveys. Although offshoring of IT service jobs will continue, technology implementation in the white-collar service sector should create jobs. Health care, construction, leisure and hospitality, education, and personal services are among areas where growth should occur.
Ms. Camilli expressed no concern about the weakness of the dollar, noting that the US continues to drive the global econ-omy, although China is coming to the forefront. For the US to remain competitive, she said, we need to take measures that include:
§ Establishing in-house corporate “universities” to retrain employees (e.g., Cisco Systems)
§ Raising the bar for excellence in math and science beginning in elementary schools
§ Demanding accountability from schools funded with public money
§ Building financial education into elementary and secondary school curricula
New urgency for the HR function
In an increasingly competitive environment, innovation is critical and must have a global footprint according to Michael Carey, Vice President of Johnson & Johnson. Capturing the highest caliber talent from around the world and helping organizational leadership achieve a global mindset are increasingly necessary for business success—and challenges for today’s global HR professional.
Mr. Carey, who most recently served as J&J’s Corporate Vice President of Human Resources, indicated there’s an emerging sense of urgency for the HR function to help deliver global growth. Functional expertise alone is no longer sufficient. To anticipate and respond proactively to business and organizational demands, HR leaders must understand the business and its marketplace, direction, and strategy and align human resources strategy accordingly. He noted that business acumen is a top attribute of successful HR leaders but also stressed the need to establish personal credibility. Much is expected of us, he observed. It’s not an opportunity but a responsibility.
Referring to recent corporate scandals, Mr. Carey emphasized the importance of driving the people agenda without so much focus on aggressive growth that we lose sight of the need to ensure everyone’s alignment with a value system. When people are attuned to the vision, values, strategy, and direction, know their roles, and have a feeling of relevance, they become a motivated, engaged workforce that will help the organization grow and prosper.
Discipline in IT
It’s a great time to lead the technology function, according to Dennis Callahan, CIO of Guardian Life Insurance Company of America. As the chaotic events of 2000-03 gave rise to discipline in corporate IT, technology has shifted from pariah to strategic asset. Although IT has become a commodity, the innovative vision for its application leaves room for differentiation. Companies that get it right continue to have a competitive advantage.
The IT executive noted that tech spending is on the cautious rise and the job market is gradually heating up. Offshoring continues, with a domestic pushback by government and labor. China, Russia, and Eastern Europe are becoming serious players. In terms of applications, he predicts that Voice Over Internet Protocol will become mainstream, video ubiquitous, and we’ll see a Web-services revolution—assuming security issues can be resolved. The emphasis on risk-management will be unrelenting, with greater board involvement in IT.
Mr. Callahan cautioned that IT must maintain discipline if it is to retain credibility with partners on the business side. Facing up to offshoring will require a new model for developing the next generation of IT leadership, with integrated business/computer science degrees and serious internship programs as standards. As the economy and job market improve, retention of valuable human assets will require us to develop, challenge, and motivate people to achieve and move up to the next level.
After the discussion and the vigorous, wide-ranging Q&A that followed, one attendee summed up the event by observing that although the speakers were informative on their topics, the synergy of the three was even more powerful.
