The fifth and final Metis Strategy Digital Symposium of 2021 is in the books. Thank you to the global CIOs, CEOs, and entrepreneurs who joined the conversation.
Looking to 2022, technology leaders said developing and maintaining strong cultures, motivating teams, and providing continuous learning and development opportunities are among their continued priorities. Also on the CIO agenda: maintaining agility and momentum following a period of significant digital acceleration. Additional highlights from the event are below. Check out our YouTube channel and the Technovation podcast in the coming weeks for recordings of individual panel discussions.
New ways of working enable agility and speed to market. CIOs noted that a continued shift to product-based operating models, paired with advanced applications of data and analytics, has led to greater enterprise agility. More nimble technology architectures also support more nimble operations.
Increased customer adoption of digital channels during the pandemic accelerated the shift to new team structures, roles and responsibilities and reinforced the need to deliver products and services to customers faster and with less friction. Michael Ruttledge, CIO at Citizens Financial, noted a 30% increase in the use of digital channels. Over the past year, his team has introduced more than 900 features in its mobile app. Citizens has leveraged advanced technology in those efforts, Ruttledge said, “but at the same time we’ve had to get that to market very quickly, and we’ve done that by changing our agile culture.”
Pairing new ways of working with agile, scalable technology architectures has helped the IT organization at Target move faster and deliver more value across the organization, CIO Mike McNamara said. Today, Target has hundreds of products across the business that can release updates daily or weekly. “The rate limiter is how quickly our business and our guests can absorb change rather than how quickly we can produce it,” McNamara said. “That speed and agility has just been a phenomenal benefit to the business.”
Fostering a strong culture is more critical than ever. As the war for talent intensifies and organizations embrace more flexible working arrangements, technology leaders are thinking about how best to foster a sense of connectivity and maintain innovative cultures as teams collaborate in new ways, both in the office and remotely.
Asurion CIO Casey Santos noted that her team is telling the company’s story in a more personal way, emphasizing the strength of their culture and technology, becoming more flexible, and relying on less formal recruiting techniques. Santos’ team is also training leaders at the company to be better coaches and sponsors so that they can help employees through their journey at the company. Asurion is also bulking up its internship, internal mobility, and rotational programs.
Underpinning many of those actions is a push to create learning and development opportunities for talent across the organization. As the pace of change continues to accelerate, “lifelong learning isn’t optional anymore,” said Sri Donthi, Chief Technology Officer at Advance Auto Parts. He shared the guiding principles he has followed while developing an engineering culture: creating a comfortable environment for employees to challenge themselves and excel; starting with the customer in mind while looking at the big picture; and keeping innovation top of mind. Donthi emphasized the need to lead with empathy and care, and encouraged fellow leaders to develop skills including crisis leadership, virtual leadership, and inspirational leadership.
Companies double down on upskilling and talent initiatives. Creating learning and development opportunities remains top of mind for CIOs in the year ahead, with 35% of participants noting reskilling or upskilling as their talent development priority in 2022, followed by enhancing employee experience.
Toptal Co-Founder and CEO Taso Du Val predicts that there will be a plethora of online courses that will allow employees to earn certifications. More meaningful content and a better user experience, among other factors, will make these programs more impactful than traditional education programs, he said.
Citizens Financial introduced academy programs that allow engineers to spend 10 days learning skills such as React, Java, Python, or learning APIs, CIO Michael Ruttledge said. The company also developed 38 different badging and certification programs across a range of technologies. At Discover Financial, the Discover Technology Academy runs a series of courses while also serving as a hub for multidisciplinary teams to share their knowledge and experience with others, encouraging collaboration and allowing innovation to scale more effectively.
Target CIO Mike McNamara said engineers at the company are expected to spend 20% of their time on learning and development, part of the framework Target has built to recruit, develop, and provide continued learning experiences for teams. He’s also proud that many leaders who have worked under his leadership have taken on CIO or senior executive roles at large companies around the world.
Common platforms enable data-driven customer experience at scale. Heading into 2022, leaders across industries continue to develop and refine platforms that allow their organizations to leverage analytics and AI across a broader range of products and services, deliver sufficient governance, and scale new solutions quickly.
At Experian, EVP & Global Head of Analytics and AI Shri Santhanam is leveraging a technical and commercial platform, along with the company’s vast troves of data, to develop more products powered by AI and machine learning. Common platforms allow Experian to bring in new data sets more easily and create more sophisticated models that give individuals, particularly those whose experiences may not have been reflected in traditional models, access to credit.
Anjana Harve, Global Chief Information Officer at Fresenius Medical Care, has focused on developing a platform that helps patients manage their care effectively and provides continuous insights throughout the user journey from early care to dialysis treatment. Through connected platforms, Fresenius can drive standardization, bring innovation and speed to end users, and guide workflows while providing the most relevant and personalized information for patients and clinicians.
Leaders continue to unlock new capabilities with data and analytics. Nearly 40% of attendees noted that they expect to see the most technology investment in data and analytics in the year ahead, and 71% noted that advanced AI is the emerging technology that holds the most promise for their organizations in 2022.
Discover Financial CIO Amir Arooni emphasized the importance of advanced AI in giving customers “actionable data that empowers them.” Applications of AI at Discover include real-time fraud detection and analyzing past spending data to advise customers on what to purchase and when, providing guidance on how to save more money and earn rewards.
Advanced analytics techniques are also making strides in the construction industry, which has begun to embrace technology as more digital tools, accessible via the cloud, went mobile. Turner Construction CIO Warren Kudman said the industry is “waking up to the value of data” and has used digital tools to visualize and manipulate environments virtually, reducing the likelihood of costly mistakes. Turner is also using data and ML to track and assess safety conditions at job sites, proactively identify interventions, conduct remote inspections, and track materials as they arrive on job sites.
Dean Del Vecchio, CIO and Chief of Operations at Guardian Life, discussed how the company is using data and AI to develop insurance products faster, easier, and with less friction for customers. Thanks to new tools and new ways of working, some processes that used to take 45 days have been cut to 30 seconds, he said.
Another Metis Strategy Digital Symposium is in the books. Thank you to all of you who joined the session and to the global CIOs, CEOs, and entrepreneurs who shared their insights. More than ever, it is critical for leaders to tap into their ecosystem of peers and advisors for information, wisdom, and support as organizations navigate this complex and uncertain environment.
Below are a few takeaways from the event. Check out our YouTube channel and the Technovation podcast in the coming weeks for recordings of individual panel discussions.
Culture is key in the transition to hybrid work. Nearly 60% of attendees noted cultivating a strong culture among teams as the greatest risk to operating in a hybrid work environment. With many return-to-office plans in flux and a new wave of employees joining firms without stepping inside an office, executives continue to place a strong emphasis on employee experience, creating new norms around equity, inclusivity, and productivity, and creating new ways for teams to engage in a hybrid setting. For technology leaders, that also includes managing a growing ecosystem of collaboration tools and emerging technologies to find the mix that works best for their organizations.
Just as CIOs helped pave the way for remote work, they also will have a role to play in helping peers understand the art of the possible regarding the future of work. The road ahead is far from clear, but today’s technology leaders are adapting people, processes, and technologies to help create organizations that can pivot quickly in the face of change and seize new opportunities as they arise.
Innovation comes from empowered teams. The ability to innovate at scale continues to rise in importance as organizations work to future-proof their operations and drive enterprise agility. To do so, a number of executives said they are exploring how to democratize innovation capabilities across their companies and unlock the full potential of their teams. Debra King, SVP, Chief Information Officer and Chief Transformation Officer at Corteva Agriscience, discussed how she and her executive team developed a culture of ownership across the organization in which team members at any level in the company were empowered to come up with an idea and execute it. The leadership team then focused on removing roadblocks and providing resources where needed.
Similarly, Tim Dickson, Chief Information Officer at Generac, discussed how the company’s first hackathon spurred new ideas while revealing pent up demand for employee upskilling. Sixteen teams participated, and over half of the ideas presented have been implemented as production deployments, Dickson said. Generac also launched a digital center of excellence that helped scale the internal capability to bring new ideas to life quickly. These new ways of working made employees feel as if their voices were being heard, while providing an avenue to develop those ideas into new products and services for the company.
Security is critical to creating strong customer experiences. Technology leaders are taking greater responsibility for the ways their organizations’ products and services impact the customer experience, and security is an increasingly critical element of that. Mickey Boodaei, CEO of Transmit Security, which received the largest-ever Series A funding round for a cybersecurity company, shared his perspective on the move toward a passwordless future, the evolution of identity and authentication, and the fine balance between security and user experience.
For consumers, identity is critical to processes such as account opening and credential validation. Too little focus on security and vulnerabilities or compliance risks may arise. Too many security measures and the user experience becomes an obstacle. As authentication technology advances and passwords continue to pose a security threat to consumer accounts, Boodaei anticipates organizations will make a concerted effort to go passwordless.
Companies scale up AI efforts. As companies continue to refine their data strategies and identify opportunities to turn data into actionable insight, significant analytics and AI deployments are only expected to grow. Nearly 40% of respondents said they expect analytics to be their greatest area of investment in the year ahead.
Machine learning and AI, paired with an increasingly sophisticated understanding of customer needs, is powering new waves of innovation across industries. Barbara Lavernos, Deputy CEO for Research, Innovation, and Technology at L’Oréal, described an experience that crunches data to provide customers with personalized advice on their beauty routines. The company is also using AI to mine its extensive store of historical data as well as real-time consumer information to deliver cutting-edge products. For example, L’Oréal has trained an AI algorithm to read the thousands of online customer ratings and reviews of the company’s makeup products. With real-time insight, research and innovation teams can then make relevant product changes and target advertising more effectively.
At Johnson & Johnson, new technologies have enabled the company to reimagine consumer health and deliver care for patients in new ways. Augmented reality and virtual reality, paired with AI, have helped train surgeons eight times faster by combining digital imagery with insights about how to perform the best surgical procedures. AI and digital twins have helped Johnson & Johnson accelerate enrollment in COVID-19 vaccine trials and improve batch production of vaccines, from one batch every two weeks to two batches every half week.
Embracing change and becoming nimble is more important than ever. Of the tips IT leaders shared about sustaining a competitive advantage in the current environment, the most common was the ability to be nimble. That means being able to pivot quickly when the market changes, seize opportunities as they present themselves and stave off issues as they arise. Indeed, more than 75% of attendees said creating a culture that embraces uncertainty, as well as the ability to pivot quickly, would have the greatest business impact over the next six to 12 months.
Companies are making a number of changes to make their organizations more nimble, including transforming their operating model, adopting new technologies, upskilling employees and bringing in new talent, and driving innovation through partnerships.
Nimbleness is at the heart of many of today’s technology transformations, including the shift to embrace cloud, APIs, and other technologies, said Bernadette Nixon, the CEO of Algolia. These modern software architectures ultimately allow organizations to move more quickly and evolve their systems to support market shifts, further empowering teams to become more efficient and nimbler in their processes.
We hope you’ll join us for our next Metis Strategy Digital Symposium on December 9, 2021. Stay tuned to our website for more details.
Yasir Anwar is the Chief Technology Officer and Chief Digital Officer of Williams-Sonoma. He refers to the company as a house of brands, which include Williams-Sonoma, Williams-Sonoma Home, West Elm, Pottery Barn, Pottery Barn Teen, Pottery Barn Kids, Mark & Graham, and Rejuvenation. Technology and digital are the central nervous system of the company, Anwar notes. “We are the world’s largest digital-first, design-led and sustainable home retailer. For that, you have to bring the whole world together to serve the customer needs.”
Anwar sees the evolution of the head of technology role as key in this transformation. He notes that “traditional” CIOs have an internal operational focus. The merging of technology and digital in his title and responsibilities implies a focus on technology projects but also on outcomes. What value is being driven? “It always has to start with the customer experience,” Anwar says. “This is the merger of the technology strength, powered and coupled by customer experience, digital experiences, and the power of digital that has been unleashing in the world as we speak.”
The results speak for themselves. Williams-Sonoma has a 70% e-commerce revenue penetration, Anwar said, up from 58% prior to the pandemic. Achieving that from a technical perspective begins with a global multi-tenant platform and a modern e-commerce platform. “We are building on top of not just microservices, but micro front-end, which would allow us to have more nimble, small, modular services,” noted Anwar. This allows the company to go to market much more rapidly. The platform is used across all of the company’s brands, which gives the company an edge when it comes to innovation. The platform allows the company to test a new idea or feature on a single brand, gather data, and quickly roll it out to others if it is successful.
As with many other companies, the pandemic accelerated digital innovation. For example, Williams-Sonoma associates use a tool called Room Planner to help advise clients on what furniture fits best in which rooms. The pandemic pushed for a faster release of a customer-facing version of the tool, which enables a customer to use the measurements of a room in their house, and then fill the space with furniture from across Williams-Sonoma’s brands. This proved to be a game changer at a time when so many people focused on updating and upgrading their homes to make them more conducive to both work and personal life. The tool also provides a connection to a professional when a customer wishes to get advice or ask questions.
When asked for Williams-Sonoma’s points of differentiation, Anwar believes one of the biggest examples is the company’s in-house design. “Many other marketplaces…sell home furnishing items,” he said. “They [typically procure] those items. They’re sourcing those items from different vendors across the world, but they do not own the design of those products.” By contrast, each of the Williams-Sonoma brands have high-performing, passionate and inspirational designers. “We own and we design everything and then we work with our in-house manufacturing locations, which we have here in the U.S.,” said Anwar, “We make in America, and then we also go to our partners, wherever we need to get the quality and diversity of design manufacturing…. I don’t think there is a company that could claim that they have such a deep ownership of the design, freshness of the design, and then the quality of the design.”
Anwar and his team have focused on two key cultural pillars in their transformation. First was moving a culture of “managers managing managers” to “experts leading experts.” This entails upskilling the team dramatically to greater levels of depth of knowledge. The second was going from a focus on output to a focus on outcomes. The result has been a transformation from a traditional retailer to a true hybrid between traditional retail and retail tech. “Our business is completely running on the rails of technology,” Anwar said. “Our goal in the next few years is to [reach a point where] tech front-loads the business propulsion and growth.”
The “house of brands” approach works for Williams-Sonoma because each brand serves different phases of an individual or a family’s life. The stores, themselves, reflect those nuances. A Pottery Barn Kids will have a different look and feel from Williams-Sonoma. That said, there are many commonalities and best practices that the unified Stores team can apply across the brands. Technology reflects a similar strategy. “If you have brands which are running on different platforms, different versions, there is a ton of costs,” he said. “If you have tested something great in one brand, you cannot go live [with] another brand because there are so many nuances.” Anwar noted that at least 85% of the company’s technology stack is common for all the brands.
Each of these trends served Williams-Sonoma well, and the stock price of the company bears this out, as it has risen more than 450% since March 20, 2020, from roughly $36 per share to the current price north of $164 per share.
Anwar is proud of the degree to which the tech and digital team fostered nimbleness in the company. “The teams were ready, the infrastructure was ready, the websites were ready, the supply chain fulfillment operational teams were ready,” noted Anwar. “It is a unique situation for all [retailers]. As they say, everybody is going through the same storm, but on different types of ships.” Anwar and his team have helped Williams-Sonoma build a ship to withstand the storm, steering more readily toward opportunity and away from danger.
Peter High is President of Metis Strategy, a business and IT advisory firm. He has written two bestselling books, and his third, Getting to Nimble, was recently released. He also moderates the Technovation podcast series and speaks at conferences around the world. Follow him on Twitter @PeterAHigh.
A little less than 20% of chief information officers in the United States are women. That roughly mirrors the percentage of women enrolled in engineering programs at universities in the U.S. Although progress has been made in the roughly 40 years since the inception of the CIO role, more needs to be done to create pathways for women to grow careers in technology.
One of the organizations that has done a remarkable job in mentoring women and working behind the scenes to help women land CIO, chief technology officer, and chief digital officer posts is T200. The group was founded by roughly ten women in 2017, and in less than four years, has grown to roughly 160 members. As founding member, Suja Chandrasekaran, currently the Senior Executive Vice President, Chief Information and Digital Officer of CommonSpirit, noted, “We go past peripheral connections. Since our inception, we connect with depth, diversity and strength.”
Chandrasekaran spoke at a T200 event today to mark International Women’s Day and to announce a new program called the Lift Platform which sets bold goals to foster new opportunities for the next generation of women leaders in the technology and digital realm.
The Lift Platform is designed for women in technology and digital roles who report directly to CXOs. They will be vetted for fit with T200’s principles, and they will represent diversity of industry as well as race, creed, sexual orientation, geography, and more.
The Lift Platform drives networking, mentorship and sponsorship. Mamatha Chamarthi, the CIO of Stellantis, said, “We want to elevate the next generation [of women leaders]. We will identify leaders who have a willingness to contribute and give back; a willingness to volunteer to uplift other women.”
Pizza Hut CIO Helen Vaid went further in saying, “Half of the world is women. Therefore, half of the resumes we see should be from women.”
The group listed the following goals in the materials shared in the kick-off event this morning:
12 initial members of the Lift Mentorship program have been identified, though their names were not shared at the kick-off event. 16 mentors have been assigned, as well. They include the CIOs, CDOs and/or CTOs of American Airlines, Alaska Airlines, Align Technology, Citrix, Zoetis and Clark Hill Law, along with Chandrasekaran, Chamarthi and Vaid, among others.
T200 leaders hope to drive outcomes to include supporting women to thrive in their existing roles, while driving explicit growth and professional learning goals for the mentees, creating visibility for the next generation of leaders for additional opportunities and to progressively improve outcomes each year.
T200 leaders have set the objective to have five mentees become CIOs in 2021. The longer-term objective is to be a driving force for women in technology to grow to parity globally across all industries. Ambitious women who strive to follow in the footsteps of the 160 extraordinary women who currently make up the T200 should take note that there is a clearer path for them to follow!
Peter High is President of Metis Strategy, a business and IT advisory firm. He has written two bestselling books, and his third, Getting to Nimble, is out this month. He also moderates the Technovation podcast series and speaks at conferences around the world. Follow him on Twitter @PeterAHigh.
Technology executives continue to tackle urgent tasks related to the COVID-19 pandemic, from supporting a surge of remote workers to keeping critical business systems running. But as remote work becomes the new normal (at least for the next few weeks), many CIOs are also grappling with larger cultural questions, primarily how to keep teams engaged and productive while working from home.
Below are a few practices leaders can take to maintain a culture of engagement and prepare their teams to emerge empowered on the other side of this crisis.
This is a time of immense uncertainty for both companies and individuals. Personal and professional routines have changed overnight as people make the shift to working remotely. Regardless of job title, everyone on your team is making an adjustment. One of the easiest ways to help create stability is to acknowledge that adjustment and do what’s possible to help the transition go smoothly.
A small but concrete way to do this is to provide training sessions on how to use various collaboration tools. While an IT team may be proficient in making calls on Zoom or communicating with Slack, others may using the technology for the first time. (One technology executive I spoke with recently said a training session for Zoom drew more than 5,000 sign ups.) Developing these opportunities is a simple way help your teams navigate the change and get to work faster.
“Every CIO knows change is not just about technology, it’s about people, process and technology,” Citrix CIO Meerah Rajavel wrote in a recent blog post. The company’s IT team worked closely with HR to craft the company’s work-from-home policy and develop a list of resources. “We decided to lean in and take a walk in the user’s shoes and collect feedback along every step of their journey that could be used to deliver a superior experience that would enable them to perform at their best.”
When visiting corporate innovation labs in recent years, it has been increasingly common to see a company’s leadership principles hanging poster-size on walls throughout the building, a not-so-subtle reminder of the firm’s cultural tenets. With the switch to remote work, it is now more incumbent upon executives to ensure those principles remain top of mind. Consider posting your team’s strategic priorities in prominent places across virtual channels and reference them when communicating with team members. Doing so can serve as a reminder that just because employees are no longer in the office, the company is still guided by the same vision.
While CIOs should continue to share frequent business updates with their teams, they can also magnify key wins and lessons learned. When working together in an office, it can be easier to see and celebrate victories, or to notice when something doesn’t work as it should. Without a shared physical space, CIOs can help develop cohesion by broadcasting the stories of teams solving challenging problems or otherwise rising to the occasion during the crisis.
Regardless of the message you are communicating, be clear and tailor it to the platform you are using. A request delivered “face to face” via video conference may come across differently than a terse message on Slack. Also, while it may sound dated, don’t be afraid to use the phone. While there is a plethora of communication tools at our fingertips, sometimes an old fashioned phone call can help you deliver a message most efficiently.
It is easy to think about remote work as an isolated activity, but it’s worth considering how it can help create new connections. As Adam Ely, deputy chief information security officer at Walmart, said in a recent LinkedIn post: “I spoke to one company that said this drove (security teams) to have better relationships with people in business lines they didn’t know.” Those teams now have a better understanding of their colleagues’ business processes and plan to work more closely with peers across the business. It is a potential silver lining for IT, where strong relationships with business partners are increasingly critical to growth.
The surge in virtual communication tools can help foster these connections. Virtual coffee chats, lunch breaks and happy hours have sprouted up both inside and outside the office as people look for new opportunities to connect. At health technology firm Cerner Corp., which has 27,000 employees working from home, teams are using collaboration tools in new ways, such as creating specific channels for discussing health-related topics, sharing work-from-home tips or sharing photos of their home offices.
While many companies are still in crisis response mode, it is increasingly important for CIOs to think about how their teams can emerge from the crisis in a position of strength. This presents an opportunity to bring a variety of voices into the conversation, working with colleagues across the organization to research the technologies and trends that are likely to rise in importance over the coming months. Even if your organization is unable to invest in those technologies today, exploring business cases now can prepare you to move quickly when the time is and give people a role in shaping the organization’s future.
As the shift toward remote work continues, leaders will be tasked with creating an inclusive work culture that also encourages productivity and innovation. Prioritizing health and safety, equipping employees with the right tools and fostering new forms of collaboration can go a long way toward making it happen.
“Given a ten percent chance of a 100 times payoff, you should take that bet every time. But you’re still going to be wrong nine times out of 10.” –Jeff Bezos
Leading organizations like Amazon, Walmart, Uber, Netflix, Google X, Intuit and Instagram have all vigorously embraced the philosophy that rapid experimentation is the most efficient and effective path to meeting customer needs. In an interview with Metis Strategy’s Peter High, entrepreneur Peter Diamandis explains that the most nimble and innovative companies like Uber and Google X “are running over 1,000 experiments per year and are creating a culture that allows for rapid experimentation and constant failure and iteration.”
Traditional strategic planning taught us to study all the pieces on the chess board, develop a multi-year roadmap, and then launch carefully sculpted new products or services. Executives believed that there was only one chance to “get it right,” which often left organizations allowing perfect to be the enemy of the good.
However, in the digital era, decision velocity is more important than perfect planning.
Accelerating decision velocity through experimentation
The most successful organizations cede the hubris of believing they will always be able to perfectly predict customer or user demands, and instead let data—not opinions—guide decision making. The data that informs decision making is derived from a series of experiments that test a hypothesis against a small but representative sample of a broader population.
The experiment should examine three questions
And then lead to one of three conclusions:
Often, experiments fall into the second category, in which case organizations demonstrate enough viability to iterate on the idea to further hone and enhance the product-market fit. The key is to gain this insight early, and course-correct as necessary. It is easy to correct being two degrees off course every ten feet but being two degrees off course over a mile will cause you to miss your target considerably (+/-0.35 feet vs. +/- 184 feet).
One simple example is when Macy’s was evaluating the desire build a feature that would allow customers to search for a product based on a picture taken with their smartphone. Other competitors had developed something similar, but before Macy’s invested significant sums of money, the retailer wanted to know if the idea was viable.
To test the idea, Macy’s placed a “Visual Product Search” icon on its homepage and monitored the click-through behavior. While Macys.com did not yet have the capability to allow for visual search, tens of thousands of customers clicked through, and Macy’s was able to capture emails of those that wanted to be notified when the feature was ready.
This was enough to begin pursuing the idea further. Yasir Anwar, the former CTO at Macy’s, said teams are “given empowerment to go and test what is best for our customers, to go and run multiple experiments, to test with our customers, (and) come back with the results.”
To accelerate decision velocity, we recommend that all companies develop a framework to create a “Business Experimentation Lab” similar to the likes of Amazon and Walmart. This Business Experimentation Framework (BEF) should outline how people with the right mindset, enabled by technology (though sometimes technology is not necessary), can leverage iterative processes to make more well-informed, yet faster decisions. Doing so frees organizations from entrenched, bureaucratic practices and provides mechanisms for rapidly determining the best option for improving customer experiences out of a list of possibilities.
A Business Experimentation Framework is crucial to:
While nearly every department can introduce some flavor of experimentation into their operating model, a core component and example in eCommerce is A/B testing, or split testing. A/B testing is a way to compare two versions of a single variable, and determine which approach is more effective.
At a recent meetup at Walmart’s Bay Area office, eCommerce product and test managers discussed the investments, processes, and roles required to sustainably hold A/B testing velocity while ensuring the occurrence of clean, accurate, and controllable experiments. Walmart began its journey towards mass A/B testing with a top-down decree—“What we launch is what we test”—and now is able to run roughly 25 experiments at any given time—and Walmart has grown the number of tests each year from 70 in 2016 to 253 in 2017.
To enable A/B testing at this velocity and quality, Walmart developed a Test Proposal process that organizes A/B tests and provides metrics for test governance, so teams can quickly make decisions at the end of a test. A Test Proposal defines:
To facilitate the lasting adoption of a Business Experimentation Framework, organizations must staff critical roles like test managers, development engineers, and test analysts. Walmart, for instance, has created the following roles to enable the launch and analysis of 250 tests per year:
Institutionalizing a bias for experimentation is not easy. We have seen several barriers to adopting a Business Experimentation Framework, such as:
Typically, enthusiasm for experimentation gains momentum with one beachhead department. That department develops a test-approval process that is supported by the tools and data necessary to test, analyze, learn, and make accurate go/no-go decisions.
Here is a blueprint for introducing a test-first culture:
If done well, establishing a Business Experimentation Framework will allow organizations to figure out what matters to most customers, within a limited amount of time, for a limited cost, and with a risk-reward tradeoff that will ultimately play to their favor.
As Bezos said, “We all know that if you swing for the fences, you’re going to strike out a lot, but you’re also going to hit some home runs. The difference between baseball and business, however, is that baseball has a truncated outcome distribution. When you swing, no matter how well you connect with the ball, the most runs you can get is four. In business, every once in a while, when you step up to the plate, you can score 1,000 runs. This long-tailed distribution of returns is why it’s important to be bold. Big winners pay for so many experiments.”
12/03/2018
By Peter High. Published on Forbes.
In 2017, John Chambers retired from Cisco Systems, a company he had run for more than two decades. During his time with the company, it had grown from $70 million in annual revenue to $47 billion. Once he retired, he had a chance to reflect on his career, as well as to plot his next move. The former led to his authoring a new book Connecting The Dots: Lessons For Leadership In A Startup World. The latter would have him starting his own venture capital firm, JC2 Ventures.
Chambers now offers capital and advice for start-ups who wish to follow the path toward the scale and the success that he achieved. He also has become an advisor to heads of states, as he consults to both India’s Prime Minister Narendra Modi and to France’s President Emmanuel Macron.
As Chambers contemplates where his success comes from, he returns to his roots in West Virginia. Born the son of two physicians, he was taught to value education from a young age. Chambers is a dyslexic, a detail that he kept hidden until well after he had ascended the CEO role at Cisco Systems. Through help from caring educators in his youth, he learned to turn his weakness into a strength. He now tells everyone about his dyslexia to inspire other dyslexics, but also to inspire anyone who feels they have an impediment that is holding them back. His refusal to let a weakness define him was, itself, a key to his success. He notes, “We all have setbacks, and your character is more of a product of how you handle these setbacks than your successes are.”
Chambers’ aims to help his home state and others learn the key lessons of Silicon Valley, and imitate the dramatic change that has transpired in France, a country he once vowed not to do business in due to its antiquated and often bureaucratic business practices. He hopes that the same combination of good government and ambitious entrepreneurs may lead to positive change in West Virginia and beyond. We cover all of this and more in this interview.
(To listen to an unabridged podcast version of this interview, please click this link. This is the 29th interview in the IT Influencers series. To listen to past interviews with the likes of former Mexican President Vicente Fox, Sal Khan, Sebastian Thrun, Steve Case, Craig Newmark, Stewart Butterfield, and Meg Whitman, please visit this link. To read future articles in the series, please follow me on Twitter @PeterAHigh.)
Peter High: You began your terrific book, Connecting The Dots: Lessons For Leadership In A Startup World, by discussing your roots in West Virginia. Could you reflect on the lessons you learned from your youth?
To read the full article, please visit Forbes.
11/26/2018
Next month, Sasan Goodarzi will become the Chief Executive Officer of Intuit. He once made his ambition to rise to the CEO role clear to his superiors, and as they cottoned to the idea and more officially put in him the succession path for CEO, he was exposed to each business unit of the company. He notes in my interview with him that, though it was important for him to make his hopes clear, he also gained even more mightily when he focused on more on enjoying the jobs he took on for the opportunity and learning that each offered.
His three most recent roles have been Executive Vice President of Small Business, Executive Vice President and General Manager of TurboTax, and Chief Information Officer. Interestingly, he counts the CIO role as his most exciting. The reasons include the expansive view of the business that the CIO role offers, but also ability to influence the next generation of technology change that will position the company for growth.
Among the special attributes that Goodarzi holds dear, and will remain areas of emphasis in his administration will be the company’s culture and its focus on customers. He believes strongly that a fulfilling work environment yields better results for customers.
In this interview, we cover his preparations for the CEO role, how he sees the company growing in his tenure, the role that artificial intelligence will play, and a variety of other topics.
(To listen to an unabridged podcast version of this interview, please visit this link. This is the 40th article in the “Beyond CIO” series. To read through past interviews with executives from companies like Waste Management, Biogen, Allstate, Aetna, Marsh & McLennan, and BMO Financial Group, please visit this link. To read future articles in the series, please follow me on Twitter @PeterAHigh.)
Peter High: In early 2019, you will ascend to the Chief Executive Officer role of Intuit. Congratulations. Can you talk about the point at which you found out about this news?
Sasan Goodarzi: I found out about the news several days before it went public. Intuit is an incredible company, and to have the opportunity to move into [outgoing CEO] Brad Smith’s role is truly an honor. Over the past eleven years, Brad has done a remarkable job of positioning the company for an incredible next chapter, so he deserves a great deal of credit for his leadership. Building leadership capabilities and mobility are core competencies for Intuit. Although this announcement is a visible one, we are extremely deliberate about ensuring that we have successors for key roles across the company. In his eighth year, Brad notified the board that he would be stepping down at some point in the future. The board and Brad agreed to the rigorous process of hiring an outside firm to look at external leaders, assess leaders within the company, and determine what the company needed in its next chapter. While that was taking place, Brad chose to do what we do across the company. Several leaders, including myself, switched businesses a few years ago. I have had the privilege of being in all of the company’s businesses, including the CIO role. The point of this switch was to ensure that we had strong internal candidates who could take over when Brad was ready to step down.
11/05/2018
By Peter High. Published in Forbes.
On October 28, IBM announced its intent to acquire Red Hat for $34 billion. This marked the largest software acquisition ever. Prior to announcement, I caught up with Red Hat Chief Information Officer Mike Kelly, who offered thoughts on the steps his team had undertaken to continue to improve Red Hat’s product (using a Red Hat-on-Red Hat program), to advise technology executives at various stages of leveraging open source technology, and in improving the overall operation. Clearly these are the sorts of improvements that helped make the company attractive to IBM.
(To listen to an unabridged podcast version of this interview, please click this link. To read future articles like this one, please follow me on Twitter @PeterAHigh.)
Peter High: Could you describe your purview as the Chief Information Officer of Red Hat?
Mike Kelly: I am part of our executive team, and I have a variety of responsibilities relating to IT at Red Hat. The responsibilities are as follows:
10/29/2018
Arthur Hu joined Lenovo nine years ago after more than eight years as a consultant at McKinsey & Company. Hu ascended the ranks to become Chief Information Officer a bit more than two years ago while still in his 30s. In that role, leads the information technology function and business transformation activities for a Chinese company with major operations in the US and in a variety of other countries. As a Chinese-American who speaks fluent Mandarin, he leads a diverse team, and spends roughly half of his time in Beijing, and half of his time either in the United States or at other strategic locations for the company.
Hu pushes his IT leadership team to have a strong grasp of Lenovo’s strategy, what is happening in the broader industry, as well as to remain abreast of crucial technology trends in order to drive transformation. He also strives to be the company’s first and best customer, leveraging its technology, and providing feedback on its strengths and where it might improve.
Hu represents the CIO of the future, in many ways. His ability to work seamlessly across the two biggest economies, his ability to impact the company’s transformation and products, and his ability to master both strategy and tactics set him apart. He describes his journey and his methods herein.
Peter High: Could you describe your role as the Chief Information Officer of Lenovo?
Art Hu: As the CIO and business transformation leader at Lenovo, I have a dual role. I am responsible for keeping the business running and creating a strong employee experience, which involves our workspace and our private and public cloud. The second element of my position targets Lenovo’s business transformation. In this role, I focus on defining and evolving our business processes and models, which ultimately helps us serve our customers better and improve Lenovo’s competitiveness.
