The US Division CIO of Wacker Chemie says tech chiefs should think beyond run, grow, and transform, and consider how they are uniquely positioned to promote social values across the business and beyond.
This article was originally published on CIO.com by Michael Bertha, Partner at Metis Strategy and Duke Dyksterhouse, Senior Associate at Metis Strategy
CIOs hear constantly that their position has evolved, that it’s now a business position. But whenever this is pointed out, the emphasis tends to fall on the tactical responsibilities of such a position—the “plan, build, and run” of it all. But just as important now are holistic matters of people—diversity, inclusivity, employee welfare, and so on, and perhaps few technical leaders have concerned themselves with these as enthusiastically as Raj Polanki, the US Division CIO of Wacker, the seven-billion-dollar German chemical manufacturer, and the co-lead of its DEI council.
“The way I see it,” he says, “the CIO role obviously needs to make sure the business can run while contributing to growth and transformation. All those are well and good, but the current, evolving CIO role, it’s not just about going from technology to business, but from business to people. As a technology executive, I have a unique position to contribute to the human aspects of it all…DEI aspects.” And accordingly, since coming to Wacker in 2018, Polanki has worked both to embody Wacker’s DEI principles and, alongside his fellow council members, to inject such principles into the organization’s ethos.
Now, he hopes to amplify his impact by sharing some of what he’s learned with other technical officers who might themselves hope to make a bigger and longer-lasting impact. “What leaders get wrong about DEI is that it concerns much more than what can be observed by the naked eye. We are all shaped by our experiences, and the better we understand each others’, the more we can achieve.” Indeed, Polanki suggests that any leader can reap better outcomes across all their responsibilities by embracing this philosophy. Here he offers five steps for doing so.
Be the change you wish to see. It’s a well-known adage and clearly present in Polanki’s first bit of advice: “Start with self-awareness. Look inward.”
Embedded in this philosophy are two propositions. The first is that you do in fact want to change something. Therefore, a good place to start might be to understand why you do. While it’s fine to cite common talking points about the benefits of DEI, you’ll find yourself more motivated (and therefore more able) to employ such principles if they mean something to you personally. Polanki, for example, found inspiration in his background, in which technology and business overlapped significantly. “I’ve always thought in terms of how I could bring these things together to create real value for people, and value can mean many things. I recognized that Wacker’s DEI council would present a great opportunity to provide an important value pulling on both business and technology.”
The second proposition is that you must embody the change, and as Polanki suggests, you can do this in few ways more effective than to consider your own unconscious biases. He implores leaders to constantly ask themselves: “Am I jumping too soon to a conclusion? Am I assuming certain things?” And if you think you don’t have any biases, congratulations: You just discovered your first. It’s called objectivity illusion—the belief that we are more objective and less biased than others—and it underscores the gravity of Polanki’s advice. Everyone has biases, and they shape our societies. They lead us to elect taller CEOs, hire certain candidates, and sink money into failing projects. According to one survey, unconscious biases may cost the workplace $64 billion annually. Having biases doesn’t make you a bad person, but making yourself aware of them, as Polanki suggests, can free you to make better decisions and thereby become a better leader.
Next, start embodying your principles among the circles that you immediately influence—like the teams you oversee. When Polanki came to Wacker, he inherited a team whose previous manager had served the company for thirty years. Although that leader had left behind a solid team, Polanki wanted to suffuse it with his own ideals, two in particular.
“One was self-respect and respect within the team,” he recalls. “Yes, I had a list of things they could do better, but I started by respecting [the team]. I used not just my words, but showed it in my actions. I recognized them for the things they didn’t even know they were doing well, and with time, they would even come to me and say, ‘You don’t seem to get upset easily. You really maintain your composure.’” Soon, Polanki’s reports began imposing the same warmth, patience, and appreciation on their own teams, and the respect collectively expressed across the department grew steadily. It also nurtured Polanki’s second ideal, “customer oriented.”
“Because I came from an outside consulting and value-driven mindset,” explains Polanki, I put the customer in the front. I would tell my team, “If the business comes to us with a problem, we’re not trying to fix the problem alone; we’re trying to save their day to be more productive and efficient. That means we directly affect the business. We are not just a back office. We are sitting with the business. We are partnering with them to support them, and we should take pride in what we do.” He recalls evoking a sentiment he had once heard from Starbucks: “I asked them, if ninety-nine out a hundred coffees are right but the hundredth is wrong, is that acceptable? I explained that this was part of taking pride in yourself.”
And pride they took. Together, these two ideals—respect and customer oriented—energized the team and propelled what became a virtuous feedback loop. It improved morale as the teams began to celebrate small wins and to believe in themselves as more than order-takers. And the changes showed. Polanki recalls that the business partners would remark, “Your team is really solving issues, and they’re very approachable.” And in one of the team’s internal customer-satisfaction surveys, they scored 97% positive feedback—one of their highest scores ever.
After you’ve proven that you can instill DEI principles among your own teams, you can become a catalyst for wider adoption through mechanisms like your company’s DEI council. Or, if your company has no such council, you can start it.“The first thing you’ll want to do, if it hasn’t been done already, is specify the council’s DEI principles. And don’t squander this opportunity”, warns Polanki. Too many councils adopt principles that are either generic or otherwise similar to another company’s. Contemplate what DEI really means to your organization and connect it to the goals and mission of the enterprise. At Wacker, Polanki and his fellow council members conducted extensive internal research to ensure they did just that, and in the end, even became an advisory council to the executive team.Next, you have to spread the word—and show your employees that you stand behind it. “After we had defined our principles,” recalls Polanki, “we published them on posters, which were put up across Wacker’s offices. They had our signatures on them, and the executives’, so people knew we meant it.” Polanki and his council also took advantage of town halls and modified several of the company’s programs—including the leadership and management development programs and new-hire orientation—such that they incorporated DEI principles. “We even hired an external person to help us connect the content to the programs.” They also dedicated a SharePoint site and several communication channels to the cause, and instituted internal advocacy groups, including one for LGBTQ+ members and one for veterans. Polanki says more will follow.
Once you’ve spread your principles, and others have started acting on them, you can further amplify their effects, says Polanki, by “starting with the data.” It makes sense. ESG-related efforts are driven heavily by metrics, and so few tools can propel you toward your DEI goals as forcibly as data can. And as a technology leader, few have the power that you do to mobilize that data and to do so not only for your department but for others.
Polanki recommends that, above all, to employ your data more meaningfully, you make it more visible, which you can do even by simply starting conversations with other leaders, since many of them will hesitate to ask what’s possible. He recalls one such conversation with Wacker’s very own ESG team: “We asked them, what can we do for you? What’s on your mind? And it was only then that they said, ‘Well, actually, we’re having a lot of containers shipped to California and we’re concerned about the waste.’ I explained that we could give them some visibility by pulling data about those containers—what materials they contain, whether they’re recyclable, and so on. They didn’t know we could do that, and it helped them act much more effectively.”
The other tool is longstanding data solutions, like dashboards and accompanying analysis, both of which Polanki’s team constructed for Wacker’s Environmental Health and Safety group. As a result, the group could now get, in mere hours, data that once took them at least days to collect. And it came with trends, to boot. “We could now ask questions like, okay, where is it happening? Is it a seasonal thing? Why does this one area have so much variation?”
Polanki plans to resign as the co-lead of Wacker’s DEI council later this year. He feels that he and his fellow members have built a sturdy foundation from which the next leaders can further expand the council’s influence. “If you think in terms of crawl-walk-run,” he says, “we’re finally walking. The next council can take it further. They can set up new resource groups, engender more inclusivity, and start to have a more direct impact on the business.”
Yet Polanki’s far from finished improving the welfare of the people around him. A graduate of University of Michigan’s Ross School of Business, Polanki has been approached by that community to become more involved with certain university activities, like becoming a resident council member for the university’s Flint division technology and innovation center. When asked by the university, Polanki asked Wacker whether they saw any conflict. They didn’t, and encouraged him to participate, knowing that his doing so would advance their own mission to “make the world a better place with our solutions.”
This outward growth demonstrates Polanki’s last bit of advice for looking beyond your traditional responsibilities as a technology leader. “Be thinking, can I help my communities where we operate? Can I partner with the local community? With universities? How can we make a bigger difference?” Leaders who ask these kinds of questions and embrace these responsibilities, he says, will find they create better results across the board, in part because they have wide-ranging intangible effects.
Thanks to all who joined the February 2022 Metis Strategy Digital Symposium. A special thanks as well to all of our speakers, who shared their perspectives on topics ranging from creating speed and agility in an era of “predictable unpredictability” to developing new operating models, scaling innovation, and using data and technology to enhance the customer and employee experience.
Digital and technology executives are seeing expanded purviews and greater strategic influence inside their organizations as technology becomes increasingly integral to business operations. In addition to traditional IT roles, today’s CIOs are taking on key roles in revenue-generating activities, helping to define the future of work, and leveraging strategic partnerships to find unconventional solutions to today’s challenges.
See below for a few highlights from the event, and check out the Metis Strategy YouTube channel and the Technovation podcast in the coming weeks for full recordings of individual panel discussions. In the meantime, click here to request an invitation for our next virtual event on May 19, 2022.
Customer focus drives greater impact for IT
Today’s technology leaders are more customer-centric than ever before as data and analytics capabilities help organizations better understand the customer journey and transform the customer experience through digital. Indeed, nearly half of attendees noted that customer centricity has been the biggest driver of impact and performance at their organizations.
At MetLife, Bill Pappas is utilizing his combined role as Head of Global Technology and Operations to drive a more holistic approach to managing the customer journey. The ability to collaborate internally across data and analytics, cybersecurity, infrastructure, customer-facing service advisors, and other teams has led to a greater understanding of the processes and decisions that impact customers, which in turn helps MetLife design better products and services for them.
At Inspire Brands, digital technologies have allowed the company to serve customers and employees more effectively across a variety of channels, CIO Raghu Sagi said. Buffalo Wild Wings, for example, went from having almost no off-premise business before the pandemic to having almost all off-premise sales as people stopped going out to eat. In response, Sagi and his team quickly rolled out new features such as curbside delivery and contactless payments, tools they could then scale across their other restaurant brands.
Even security services, often considered a friction point for many users, have become an avenue for delivering value to customers. Transmit Security, for example, is leveraging biometric capabilities and other technologies to help customers access their accounts faster while simultaneously strengthening the overall security of those accounts and reducing system complexity on the back end.
CIOs double down on culture, people development
As organizations continue to navigate a challenging talent market, executives are doubling down on people management efforts to attract, retain, and develop talent. That includes building internal culture, enabling flexible working models, and developing upskilling and reskilling opportunities to create growth opportunities for their teams.
“People are truly everything we do, and as a leader, your role is to be [first] a human resources manager,” Bill Pappas of MetLife said. In addition to articulating its value proposition to attract top talent, the company offers a range of upskilling and talent development initiatives, including a digital academy, that seek to foster the technology, commercial, and leadership skills needed to lead in today’s environment.
Edward Wagoner, Chief Information Officer for Digital at JLL Technologies, noted that data and technology are helping the company design the future of work and bring it to life at the intersection of physical and digital spaces. With some employees returning to office and others continuing to work remotely, Wagoner emphasized that there are still many unknowns, and that organizations across the board will continue to test new hypotheses and draw on lessons learned to improve the employee experience.
Indeed, technology leaders will play a central role in enabling new forms of collaboration and creating spaces that establish a level playing field and sense of belonging for diverse and remote employees. “As digital technology leaders, we’re so entwined in the culture game that we now need to go figure out what are these experiences that provoke people to collaborate differently,” said Vince Campisi, SVP Enterprise Services and Chief Digital Officer at Raytheon Technologies.
Tech leaders become a catalyst for new business partnerships
While CIOs have always kept a finger on the pulse of emerging technologies, they increasingly are forging more strategic partnerships with suppliers, peers, startups, and others to gain new insights and develop new products and services.
To navigate the emerging tech landscape, Novant Health, Chief Information Officer Onyeka Nchege focused on identifying core capabilities and building a strong partner ecosystem that could deliver a positive impact and improve the patient experience. In 2019, Novant Health solidified a partnership with Zipline that, through a fast-tracked operation during the pandemic, led Novant Health to become the first healthcare system to deliver PPE via drone distribution.
Although the real estate industry hasn’t historically been known as a leader in technological innovation, companies like JLL have established new partnerships to expand the company’s thinking and to better address ongoing uncertainties such as the future of work and climate change. Wagoner noted that JLL acquired an AI company to improve data-driven decision making. He also discussed the ways in which JLL is partnering with technology leaders across industries to address topics such as sustainability monitoring and reporting.
A dedication to scaling digital operations and innovation
CIOs, CDOs, and CTOs have an ever-growing role to play in helping organizations adapt quickly to changing markets and consumer demands. Key to that is enabling innovation at scale and applying digital tools to enhance operations.
Innovation is no longer a practice that takes place in a separate building, but rather a capability embedded across the enterprise, said Charu Jain, SVP Merchandising and Innovation at Alaska Airlines. Jain further drove these efforts by developing an innovation committee at the board level. This committee provides formal commitment and accountability to innovation efforts and helps identify opportunities to apply technology to revenue-generating activities and guest and employee experiences. Having teams across the company pursue innovation ideas, paired with strong change management and new ways of working, has helped make innovation a “fabric of how [Alaska Airlines] does business,” she said.
Sanjib Sahoo, Chief Digital Officer at Ingram Micro, highlighted digital innovation as a means of improving performance while constantly reassessing the business model and ensuring that there are no opportunity gaps in the organization. “We perform as we transform,” he said, noting the importance of integrating operational excellence and value creation into all transformation initiatives.
Since the pandemic began, CIOs are owning more innovation and business value creation processes, said Sunny Gupta, CEO & Co-Founder of Apptio. That includes a shift to product-focused operating models, which requires leaders to think not only about technology applications but also new funding models.
Technology plays key role in building supply chain resilience
Supply chain disruptions and natural disasters have caused strain on global operations, underscoring a need to digitize and automate processes and collaborate with peers and partners. Increasingly, technology is the key to building resilient supply chains that allow organizations to pivot quickly amid ongoing disruptions.
At Big Lots Stores, data and decision modeling help build stronger and more resilient digital supply chains, said Gurmeet Singh, CTO and CIO. The ability to process data from each point of the supply chain speeds decision making and allows the organization to pivot quickly when markets change, which ultimately impacts costs, store operations, and the customer experience. Singh has also spent time learning from startups in the supply chain space to understand how new technologies are driving greater visibility and automation.
Gary Desai, CIO at Discount Tire, remarked that resilient supply chains and strong relationships help improve the “speed of trust” with customers and drive better outcomes. Desai works alongside the Chief Customer Officer and Chief Product Officer at his organization and meets with the CEO of their supply chain software provider to discuss ways in which technology can continue to deliver value for the company now and in the future. New ways of working, including a shift toward planned appointments at stores instead of walk-ins, also present new opportunities to apply digital technologies and enhance relationships with local suppliers.
We hope you’ll join us for our next Metis Strategy Digital Symposium on May 19, 2022. You can register for the event here. Stay tuned to our website for more details.
This article is part of an ongoing series exploring the ways in which companies are can prepare for a post-pandemic world of work.
Tiffany Jenkins, Mac Connolly, and Yucca Reinecke co-authored this article
In the post-pandemic world of work, flexibility will be key. Our conversations with technology executives suggest that many companies expect to maintain a hybrid working model, in which some employees work remotely, others work primarily at the office, and many move back and forth between the two. More than 80% of executives polled during the January 2021 Metis Strategy Digital Symposium expect either a 50/50 split between remote work and the office or for most employees to work remotely beyond the end of the pandemic. And just this week, Salesforce.com said it would give employees three ways to work, even once it is safe to return to the office: flex, fully remote, and office-based.
In this article, we will explore four key dimensions leaders should consider as they evaluate the people, process, and technology changes needed to enable hybrid work for the long term, including:
A shift toward a long-term hybrid working model requires a major rethink of day-to-day operations. While many changes were made at the peak of the pandemic, including, in many cases, a massive shift to remote work, companies should now build upon the experiences and learnings to date while developing a sustainable operating model that supports these changes long into the future. That means rethinking existing ways of working, scheduling meetings, current employee practices, and the policies that govern daily operations.
An important first step is to assess which jobs will require a return to the office, which ones can be conducted fully remote, and which require a mix of both. In order to answer that question, companies may need to look at jobs from different points of view, including functional responsibilities, type of work performed, and the skills and preferences represented in certain jobs. For example, some companies are experimenting with having groups of employees return for a few days per week or bringing together certain teams on specific days when these teams are expected to engage in collaboration or discussions that benefit from co-location and in-person interactions.
For jobs that will be largely remote, leaders should think about whether those workers will be required to be located within a certain proximity of the office or other work-related physical location, if compensation changes based on employee location are warranted, and other policies that will impact future decision-making.
An operating model fit for a hybrid work environment should also anticipate the new, often more complex, ways in which colleagues will collaborate, over virtual collaboration and communication tools or even across time zones, and how that impacts productivity, employee experience, and company culture. Determining how and where teams will be expected to work together can further influence decisions around technology and real estate investments, as we will explore below.
Companies are placing renewed focus on employee experience as teams adapt to major changes in their work habits. While a shift to largely remote work during the pandemic led to increased productivity at many companies, the new setups also showed remote work’s potentially adverse effects on well-being as employees balanced the demands of work and home. Indeed, many employees’ greatest challenges stem from the physical and emotionally blurred lines between the workplace and their personal or family lives. As one of our executive partners recently said, “we no longer work from home, but we live at work”. Left unaddressed, these challenges could lead to difficulties retaining talent long term.
To that end, it is increasingly critical to invest in an employee experience that balances productivity and employee well-being. Fortunately, most organizations have realized that well-being, productivity, employee satisfaction, and retention are more closely intertwined than they were pre-pandemic and should be addressed in unison. Doing so can lead to higher engagement, and ultimately better business outcomes. A Gallup Study found that engaged employees are 21% more productive, 22% more profitable and score 10% better on customer ratings than unengaged employees. Companies that consider all these factors are more likely to retain talent and, in some cases, may become a more attractive employer now and during the gradual return to the ‘next normal.’
A key driver of employee engagement efforts is providing employees with the tools and support they need to do their jobs successfully no matter where they work. These can range from technology such as laptops, collaboration tools and video-conferencing applications to perks that support health and wellness, from gym reimbursements to subsidized childcare and access to therapy and mental health support.
Several organizations have also begun to experiment with virtual and digital tools that attempt to replicate the social interactions that typically occur in a physical workplace, such as virtual “water coolers.” While not intended to produce concrete outcomes, these social interactions have shown to lead to greater team cohesion, trust among team members, and generally higher levels of employee motivation. However, it is also important for leaders to help employees know when to log off or when it may be best to disconnect from more rounds of video conferences. Leaders should continuously solicit feedback and measure outcomes of these efforts on productivity and perception of well-being.
Putting people first by ensuring that they have the support they need, communicating early and often, and creating new opportunities for learning stands to boost both engagement and productivity no matter what comes next. As Verizon CIO Shankar Arumugavelu said in a recent interview about the company’s pandemic response: “We all have business resilience plans. At the end of the day, what stood out [at Verizon] is the human resilience. That really made the difference here.” As the company develops its post-pandemic plans, the company is taking the opportunity to rethink how things are done for the betterment of customers, employees, shareholders and society.
Several of the organizations we work with have addressed the new realities of virtual work by making it easier – and in some cases even explicitly welcome – to have family members join certain meetings, for example, or by otherwise supporting employees who are exposed to the logistical challenges of co-managing professional and personal lives.
As noted above, enabling a successful hybrid workforce means ensuring employees have access to the technology and tools needed to carry out day-to-day operations. In our conversations with IT teams, we have found that reliable and secure video conferencing, instant messaging, whiteboarding and visualization tools that can be accessed in and out of the office have often been deemed essential.
Rather than attempting to fully replicate the workplace in the remote environment, companies should first assess the digital tools and capabilities that have best supported a remote-first workforce. Firms can then assess how those tools may enable collaboration in an in-office and hybrid working environment and think through the process changes that may be required to do so. Many IT teams we have spoken with have adopted new interactive whiteboarding tools, for example, and companies have invested in the training needed to ensure teams are well positioned to use them.
Of course, simply implementing the needed tools will not lead to greater collaboration. Leaders also must be intentional about driving adoption. Slack or similar communication tools will not improve effectiveness if only a few people use it. Conversely, with deliberate and widespread adoption, the use of real-time communication tools can address the fundamental need for accessibility.
At a recent Metis Strategy Digital Symposium, Comcast CIO Rick Rioboli noted that the pandemic has created an opportunity to completely rethink the physical office. The company now is approaching its offices “not as what we go back to, but rather as what [our offices] can do for us.” Similar conversations are happening across industries as leaders consider how best to use physical office space once it is safe for employees to return.
Often, those conversations include thinking about how to weave digital capabilities that currently serve remote employees across the physical office environment and how to reconfigure existing space to maximize the potential for productive collaboration in a post-pandemic, hybrid world. A workplace intelligence report by global technology leader NTT Ltd. found that 31% of companies are implementing additional creative thinking spaces, while 30% will provide more meeting places and 27% will reduce individual desk space.
Turning the office into a digitally enabled, collaboration-first environment will be critical to enabling a hybrid workforce. As companies seek to create a safe, collaborative, and efficient space for their employees, we have observed a few common practices:
In addition to layering digital tools onto the digital space, there are some design changes that can benefit hybrid employees as well. Among them:
As companies begin to formulate and test hybrid operating models, continued investment and careful strategic planning are necessary to maintain effectiveness and resilience. While reports of increased productivity are reassuring, the next question to ask is how to make that productivity is sustainable over the long term. By adapting your operating model, investing in employee experience, empowering employees with needed tools and technologies, and rethinking the purpose of physical spaces, companies will set themselves up to tackle the changes brought on by a new world of work.
