A JOURNAL OF COMMUNICATIONS AND CORPORATE RELATIONS ISSUE 20 2020
The WFH Issue
CHRIS KEMPCZINSKI: Year One as McDonald’s CEO SIR ALAN PARKER Interviews Adam Grant
BRUNSWICK REVIEW ADRIAN GORE Is Optimistic m
ISSUE 20 DAMBISA MOYO on the Global Economy FLETCHER PREVIN: m IBM’s Pandemic Response 2020 AUDRA McDONALD on Broadway NEAL WOLIN on 2009 v 2020 SHELLYE ARCHAMBEAU: Unapologetically Ambitious SIR MARK ROWLEY The Unarmed Cop PHARMA v COVID-19 Brunswick is a strategic advisory firm focused on critical issues. Our purpose is to help the great value-creating organizations of the world play a more successful role in society. We advise on critical issues at the center of business, politics and society, and help our clients—the leaders of large, complex organizations—understand and navigate these interconnected worlds.
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editor in chief Kevin Helliker managing editor Carlton Wilkinson creative director Frank Tagariello senior writer, deputy editor Edward Stephens project manager Caitlin Koons editorial advisor Vanessa Quarrie The Brunswick Review is printed on Revive print production MerchantCantos 100% recycled, made using post-consumer printed by CPI Colour waste fibers and manufactured without the cover illustration Noma Bar use of any secondary bleaching. feedback [email protected] Copyright © Brunswick Group LLP 2020 2 2The Age of Acceleration
BY SIR ALAN PARKER
here are moments in history when 20everything seems to accelerate. Ten years in one. 0 2020 is such a moment. All over the world, long- term trends have raced forwards and deep issues have surfaced, often pretty brutally. • In the tur- T bulent late 1700s, William Blake said, “What is now proved was once only imagined.” The techno-evan- gelists must feel the same, along with climate change ac- tivists and human rights campaigners, as well as the neo- Keynesian monetary policy folk. • We have learned a lot this year. Business has shown an agility it could not have imagined. None of our crisis workshops modeled this one. Leadership has stood to the fore in its support of staff and other crucial stakeholders. Companies have accomplished things we wouldn’t have thought possible. Leadership has shown it really matters. • Trust in the corporate sector has risen in line with its resilience. In particular the banking and capital markets sector have been, to date, resilient. The markets have been volatile but the financial sector has
brunswick review · issue 20 · 2020 3 worked in response to problems not as the cause of them. is now far greater support from the investment commu- All of those changes painfully put into place following nity, even activism. Investors are increasingly looking for the last crash, particularly in banking, have passed a test. leadership to embrace change and get ahead of the curve We can only hope we apply equally well the learnings from rather than go slow into it, at ever-increasing risk. this crisis. Investor ratings on those embracing versus those avoid- “WHAT IS NOW PROVED WAS ONCE ONLY IMAGINED.” It is now widely accepted that the full economic and so- ing necessary change are rarely as divergent as between cial impact has only just begun and behind that the rec- Tesla and the old-line auto industry, but there are under- ognition of impact on the personal lives of people every- lying investor trends that signal the direction. Also worth where. Among our clients, leadership teams in all sectors considering, a failure to fulfill promises to wider stake- have been incredibly focused not just on organizational holders can carry a more immediate risk for leaders than challenges but also on the well-being and mental health of might a financial stumble, given the longer-term judgment their people at every level. In many cases, it has a knock-on of shareholders. effect to their families and local communities. In all the massive upheaval this year technology has The effort to create a more cohesive and caring culture come to our rescue, keeping our businesses running, internally has massively accelerated, even when a record where they can, from home. It turns out you can’t make level of jobs is being lost. The value of addressing these steel from home but you can run a trillion-dollar bank issues openly and honestly has, in our experience, never from your kitchen as one Chairman pointed out to me, been higher, never more widely recognized. As ever, trade- and as another retail CEO said you can run thousands of offs have to be made. It is the nature of life and business. stores and their supply lines from drawing rooms. Tech- But the people issues weigh heavier than ever in decision nology has also kept us entertained and most importantly making not as a result of union pressure or legislation, or connected to friends and loved ones. This is not without even solely good performance and other reasons of busi- its dark side, and I don’t mean just Zoom stress. Our cyber ness. A pandemic lays bare the impulse to serve humanity. prep and breach teams are facing an extraordinary step-up At Brunswick, we are engaged in significantly more work in problems all over the world. in these areas and, no less important, work that is more Dealing with technology disruption has been a top-of- substantive and impactful. the-agenda issue for business leaders for over two decades. This pandemic has surfaced many deep, longer term Now business faces a new kind of non-optional connec- issues. The depth of systemic inequity has been laid bare. tivity. Business now must be connected to major societal The true depth of this shows up very poignantly in the issues in a way it never has before. Employees want em- COVID death statistics. ployers to reflect their values and where possible the gen- Racial inequity and gender inequity have accelerated eral public is voting through consumer choice, and online onto board agendas in previously unimaginable ways and there is no place to escape. The new power to call out busi- we do not see those movements declining. Actually, the ness on big issues is reaching leaders in every aspect of increasingly impressive response of the leaders showing their lives. real leadership will demonstrate what is possible and make Profit and positive social impact are no longer seen as it easier for others to follow. Though the noise of a new binary choices. Having widened the aperture of consider- media world makes analysis difficult, the message is clear, ations, leaders are taking societal factors into account as words are not enough. Action is what matters and that is for decades they have taken on regulatory factors. It is a what will build and protect reputation. core competence and they will be judged by their recog- This is also true in the other mega-trend that we see nition, understanding and response to changing attitudes. accelerating rapidly, climate change. Those voices early Investor sentiment through the crisis has been almost in 2020 who thought this pandemic would put climate universally clear and consistent to our clients—think and on the back burner are long gone. If anything, climate act in ways favorable to the long-term good of the busi- change concerns have been intensified by a powerful mix ness. Investors are looking well beyond financial perfor- of concern about health and the environment. Govern- mance in 2020 or 2021. They have put greater emphasis on ments have so far failed to deliver meaningful change and ESG, not just as a risk metric but as an indicator of sophis- in response to this the recognition of the role of business tication of leadership and an important indicator of the is growing. External pressures are growing too, but the de- direction of travel on these bigger issues. bate is shifting away from business as part of the problem There is a great opportunity for business leaders here. towards business as the chief source of solutions. Creating financial returns for investors is central to any Transitioning business models can be difficult and take businesses purpose and right now that ability is crucial time. Tech disruption has shown us that. One big differ- for investment in R&D and innovation. Longer term, cre- ence in transitioning to a lower carbon world is that there ating value for more than a single set of stakeholders will
4 brunswick review · issue 20 · 2020 IN THE TURBULENT LATE 1700S,WILLIAM BLAKE SAID, “WHAT IS NOW PROVED WAS ONCE ONLY IMAGINED.” TECH-EVANGELISTS, CLIMATE CHANGE ACTIVISTS, NEO-KEYNESIAN MONETARY POLICY FOLKS MUST FEEL THE SAME.
deliver not just financial rewards but also customer loyalty, mused on the future of office life. Now we have done lock- stronger internal support and performance, better supply- down for long enough for most of us to yearn for the ca- chain-and-distribution relations and lower regulatory and maraderie, social buzz and productivity of our workplaces, political risks. the joy of seeing our colleagues. Governments everywhere have massively increased their Dealing with our new lives at a day-to-day level has kept involvement in all of our lives. We have seen emergency all of us very busy. Yet most of us have also found prop- laws limiting freedom of movement along with direct er time to reflect deeply on bigger strategic issues. I have company and sector interventions and levels of spending found this to be true on a personal and also corporate level. and debt that are normally seen only in a wartime context. Almost every senior team we work with has devoted sig- As Yuval Noah Harari, of Sapiens fame, reminds us, this nificant time to some pretty deep introspection. Looking is the moment we decided to give governments unprece- into the contours of the post-COVID future, they are tak- dented access to our private lives. Unfortunately, all of this ing stock and challenging themselves to get fit for a new intervention and activity has not led to an increase in con- environment. That might require changing portfolios, fidence or trust in our political leaders. structure, management or culture. Often it is all of these Divisions in societies around the world have not seemed because they are so interconnected. You do not need a so wide or so deep for a generation or more. Political lead- crystal ball to predict that all this deeper thinking will ac- ers, in many cases, are seen to have been deepening these celerate action all the more in 2021. divides. By contrast business leaders are acting as a unify- Many of our clients see “build back better” not as a slo- ing force. Not just in their CSR or philanthropy, and not gan or as a financial target. For most, that will not be pos- just in their organizations. More broadly, business leaders sible for quite some time. Rather, they’re seeking to con- are knitting their societal and political agendas into work- tribute what they do best for all their stakeholders, and ing strategies and practices. Under the pressures of 2020, they’re seeking to be recognized and appreciated for it. It is that is an enormous priority. an emerging opportunity. In political life and in some societies, the competition or We have learned a lot about what is precious to us. What the opposition is increasingly seen as the enemy. In busi- matters and what we want to protect in our personal and ness, this is the opposite. Now more than ever you cannot corporate lives. Like health, the things we care about are have single views, you have to learn to understand why the a leveler of us all. It is hard not to feel that in some ways opposition are opposed. You have to recognize or embrace COVID has prompted us to reflect on our humanity. It has different perspectives. The art, then, is applying that un- reminded us how we want that humanity present in our derstanding positively and to good business use. working lives. Throughout this crisis there has been an increasingly For our part, we are just incredibly privileged to stand clear role for business in society. By effectively broaden- alongside our clients, and we are determined to contribute ing its role it has been better valued by all its stakehold- in these extraordinary times. Thank you. ers. Business cannot be the solution to the problems of the world but with some focus and adjustment it can be more SIR ALAN PARKER visibly part of the solution. A government will not be the organization that creates a vaccine. It can, however, learn CHAIRMAN, to understand its potential to better coordinate solutions. BRUNSWICK GROUP The achievement that took place early this year all over the world was truly remarkable. Again a statement of what can be done given the right commitment. This Review is titled “The WFH Issue.” We have all brunswick review · issue 20 · 2020 5 THE WFH ISSUE
DAMBISA MOYO A celebrity in the world of 18 economics, followed by millions on social media, she writes bestselling books and serves on the boards of Chevron and 3M.
BRUNSWICK CEO NEAL WOLIN IN PRAISE OF AMBITION 17 During a time of great need for CEO, board member and author 42 leadership, the private sector is Shellye Archambeau has a few delivering. strong words of advice.
MCDONALD’S NEW CEO GEORGE OSBORNE 26 It’s easy to forget that Chris Former Chancellor of the 48 Kempczinski was barely three Exchequer and current editor of months into the job when the London Evening Standard 26 COVID-19 struck, so quickly did he describes the pandemic as a become the much-admired face of defining moment. leadership at McDonald’s. CRISIS REVISITED IBM’S COVID RESPONSE Former US Deputy Treasury 56 32 Fletcher Previn, CIO of one of the Secretary Neal Wolin finds largest IT networks, describes the parallels with the financial sudden shift to “work-from-home.” crash of 2008-09.
ADMIRAL MIKE ROGERS CHURCHILL AND THE FLU 36 For the benefit of co-workers under Biographer Andrew Roberts 84 stay-at-home orders, a Brunswick explores the legendary advisor recalls long deployments prime minister’s lessons for 84 aboard ships and submarines. handling a pandemic.
6 brunswick review · issue 20 · 2020 9 SPOTLIGHT HEALTH SECTION 66
9 DISINFORMATION SCOTT GOTTLIEB 66 Chad Giron runs down the realities The former FDA Commissioner is one of behind the spread of untruth. the US’ most well-known experts on 11 CONNECTED LEADERSHIP public health. Brunswick’s Raul Damas Better internal engagement needs spoke with him before COVID-19 external platforms, says Craig Mullaney. was on the world’s radar.
13 ”GOOD FOR THREE PARTIES” ”CORONAVIRUS SLAYER” 69 Stakeholder engagement has been the COVID first hit India in the state of norm in parts of Asia for centuries. Kerala. Its health minister became a 15 GEORGE FLOYD REACTION national star for her effective response. Brunswick Insight polls US workers. DEFENDING OPTIMISM 72 8 QUOTES FROM THE ISSUE Even in the pandemic, Adrian Gore, “I’m learning there is bravery in choosing founder of South African insurer Discovery, is leapfrogging old models. not to do something you could do,” says 11 Kim Chambers, a Silicon Valley WOMAN IN THE MIRROR 76 executive turned champion swimmer. Unilever’s Arab web platform is speaking directly to women, and helping 23 IN MILLENNIALS WE TRUST to change societal gender norms. This generation has inherited more LOSING LOVE 79 than its share of the world’s problems. Graham Carter shares a memoir of grief Happily, they are more than up to the with Brunswick London comrades. challenge. PHARMA REPUTATION 80 38 WOMEN IN TECH The drug industry can gain new respect Laura Stebbing, CEO of accelerateHER, from the public. But time is running out. describes the fight to promote gender GETTING PERSONAL 88 diversity in Silicon Valley. 23 Brunswick’s Ben Hirschler describes 46 BITTEN BY THE BIG APPLE taking part in a COVID-19 vaccine trial. Brunswick Review Editor in Chief and native Midwesterner Kevin Helliker describes for his colleagues how the WIDEANGLE 91 pandemic turned him into a New Yorker. SIR RANULPH FIENNES 92 53 JAPAN’S NEW PRIME MINISTER The famed explorer offers five lessons Brunswick’s Yoichiro Sato and Daisuke for leadership in a crisis. Tsuchiya, veterans of Shinzō Abe’s ADAM GRANT 96 government, discuss the outlook under Sir Alan Parker interviews the author and Yoshihide Suga. expert on business with a human heart. 60 JUDGED TWICE SILICON VALLEY SWIMMER 99 Writing to WFH colleagues, Brunswick’s Kim Chambers turned sudden disability Hayley Singleton reflects on the into success as an athletic champion. challenges of being of mixed race. 64 AUDRA MCDONALD 102 61 AURORA CAPITAL CEO The six-time Tony winner on her youthful Gerald Parsky, former Assistant suicide attempt, her subsequent rise to Secretary of the US Treasury, on how the stardom and her current charity work. pandemic is reshaping private equity. ZEGNA FAMILY VALUES 107 63 HOME AND FAR FROM HOME A positive relationship with the When travel restrictions hit, Vedika community and the environment is still at Kumar was in India. She describes her the core of the menswear brand’s identity. WFH life for New York colleagues. MUST POLICE HAVE GUNS? 110 UK policing may inform a US dilemma. 64 BANKRUPTCY PLAGUE A large number of businesses will hit CRITICAL MOMENT 114 hard times in the coming months. Here’s The first vaccine led to the eradication of how to handle it. 96 smallpox. It was inspired by a milkmaid. brunswick review · issue 20 · 2020 7 “To lead, you have to be “The whole premise and out there talking a lot and, expectation of work-life in some cases, saying WORKING balance is just flawed. the same message over There are enough things and over and over.” in life to make us CHRIS KEMPCZINSKI from HOME feel guilty and inadequate. CEO, McDonald’s We don’t need that 26 term, too.” “They won’t think of this now, “Imagine the day this SHELLYE ARCHAMBEAU but for the people at the heart pandemic is finally over. One of Silicon Valley’s first Black female of the COVID-19 crisis, this CEOs, board member for Verizon, Looking back, how will you Nordstrom, Okta, and Roper Technology is the great moment of their wish you had gone 42 careers. To use the hackneyed through it?” phrase, this is what they “That first student ADAM GRANT trained for.” tested positive; he came Best-selling author, organizational into our custody, was psychologist, top rated professor at GEORGE OSBORNE Wharton Business School Former UK Chancellor of the Exchequer, quarantined, treated 96 Editor of London’s Evening Standard and recovered. It was a “The thing that scares me 48 victory for Kerala.” “We’re beginning to learn to death is usually the thing I K.K. SHAILAJA run toward artistically. a sharp lesson about the Health minister for Kerala That’s where you’re going to societal cost of private 69 learn the most.” freedoms. Tradeoffs are going “Going it alone to be required of us. Tradeoffs AUDRA McDONALD is not a recipe for success Broadway star and award-winning actress much more challenging than in extended periods 102 simply wearing a mask.” of stress, uncertainty “I’m learning there is bravery DAMBISA MOYO or anxiety.” in choosing not to do Best-selling author, economist, and board member for 3M and Chevron ADMIRAL MIKE ROGERS something you could do.” 18 Retired Four-Star Admiral, Brunswick Senior Advisor KIM CHAMBERS “When did it become 36 Hall of Fame marathon swimmer 99 OK to live like the Jetsons at home and like the Flintstones at work?” FLETCHER PREVIN Chief Information Officer, IBM 32 ILLUSTRATION: EDMON DE HARO DE EDMON ILLUSTRATION:
8 ILLUSTRATION: LINCOLN AGNEW SP T reason. issimply This nottrue. and facts sions andopinions of would pull around orbit thegravitational could only exposed to about atopic be thetruth then, surely, their pas- “the truth” curative tonic is a kindof for their audiences. individuals If als empowered to governments lead andinstitutions. mis- anddisinformation,mis- says Brunswick’s once did, andstill should. Butthere are ways tofight backagainst It’s adepressing fact thatfacts don’t carry theweight they brunswick review Professional communicators to are believe and journalists that trained media outlets andold-fashioned lies,media emanating even from- individu isheavily andfiction blurred between truth by deepfakes, partisan the communications asinfested landscape with “fake news.” line The en on minutes facebook ittakes isall or twitter to diag Targeting
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UNTRUTHS percent of the engagement of themost popular articles. misinformation theengagementpercent of of result wasdispiriting. Onaverage, thecorrected content received only 2 falseor information, misleading versus with articles andthe thearticles totime reporters help source andsubstantiate theaccurate content. online content. team media Their amount thenof dedicated asignificant Recently, falseandmisleading alarge volume of aclient of wasthesubject popular—way more popular—than truth. It reaches farmore people. notalosingstrategy.ences if isarisky dynamic wherein upon relying “the truth” to andfacts convince audi- media. social Some areics of simply human nature. contributeAll to a Some are endemic to environment media ourmodern andthemechan At Brunswick, we examined theaccurate thereach andengagement of mostpowerfulThe opposing force isreach. Misinformation ismore truth,”“The anditsfootsoldiers, facts, face several opposing forces. of topics. world onamedley from around the &analysisinsights Observations,
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9 SPOTLIGHT
In other words, “the truth” sells nowhere near as well as falsehoods. the misinformation may brush up against a truth while presenting a Follow-up focus group research revealed that many individuals in the distorted vision of it. client’s target audience weren’t aware of the existence of fact-checking Second, recognize the power of narrative. In correcting the record or websites. Those who were aware of fact-checking sites perceived their checking facts or rebutting misinformation, what often works best is the content to be no more trustworthy than misinformation. Among these creation of a competing and more compelling narrative. To maintain individuals, an affinity for misinformation lingered even after being integrity and trust, that story should absolutely be fact-based, but it shown that it was false. should elucidate motivations. This brings us to a second force opposing the effectiveness of truth: In the case study mentioned previously, we researched what elements human nature. Misinformation is more widely shared because it is more of storytelling would help build trust and neutralize the negative effects interesting. Whether it’s today’s tabloids or the penny dreadfuls of the of misinformation. One of the most effective narrative ingredients was Victorian era, salaciousness sells. to explain motivations and clearly state positive values and intentions. Misinformation is often filled with narratives featuring powerful, Once a competing narrative has been created, it must be distributed well-known individuals and organizations allegedly engaged in outra- at scale to relevant audiences. This needs to be a multi-channel effort geous activity. These fantastic stories are designed to generate clicks involving earned media, paid media and owned channels, including regardless of the cost to reputations, public discourse or public policy. websites and social media channels. They are packaged to look like news to lend their content legitimacy— When it comes to reaching audiences at scale, traditional media all the better to influence you—but they are not remotely beholden to outlets, also known as mainstream media, are invaluable for their large journalistic integrity. reach and relatively high trust levels. A third force opposing truth is the economic value of clicks. Social Aside from earned media, the two most important channels in sharing media platforms are built on algorithms that encourage “engagement,” a narrative are Google search and YouTube, respectively the number one regardless of content veracity. Let’s face it, cute cat videos aren’t being and number two search engines in the world. They are the first place a shared because they inform public discourse. The structure of social wide range of audiences turn to research an issue or verify information. media favors content that is often crafted to inflame emotions, reinforce Another way to neutralize misinformation is to use third parties existing prejudices and entice users with irresistibly amazing assertions. to help amplify the reach of your narrative and bolster your reputa- The more clicks, the more dollars. tion online with their implied or explicit support. When pushing back In an environment where fighting falsehoods with fact-checking is against misinformation, third parties with large, engaged and loyal disadvantaged at best and doomed at worst, what are some ways to push social media audiences can serve as force multipliers. back against the tide of misinformation? In a world of unscrupulous media, malicious actors and algorithms First, understand that truth does bear power. In fact, the most suc- seemingly programmed to reward falsehoods, it isn’t enough to know in cessful misinformation contains a kernel of truth. For organizations, your heart the truth about you and your organization. You must be pre- misinformation often revolves around distortions or misrepresenta- pared to broadcast that truth in a long and complex war of information. u tions of actual products or operations. Activists, competitors or even disgruntled employees are apt to misrepresent executive motives, Chad Giron is a Director in Brunswick’s office in Washington, DC, specializing in digital how a company operates or how it sources materials. In these cases, strategies content development.
International Monetary Fund, United for Africa inviting emergency assistance Brunswick’s Itumeleng to address COVID-19. While Mahabane sees an opportu- political debate about it continues nity in the dire global crisis. to rage, the $4.3 billion loan now hile early in the pan- appears clearly insufficient. The demic, developed countries National Treasury estimates the Wfaced the most significant economy will only recover to 2019 public health impact, it is now levels in 2024. Most other nations developing countries that face the in Africa face far worse outcomes. brunt of structural and systemic Multilateral institutions will risk. The World Bank predicts the have to innovate more deeply and first annual rise in global poverty international cooperation must since 1998. Africa will be especially move beyond the Bretton Woods hard hit and that will boomerang institutions. New infrastructure to the developed economies. will be needed, a fact underscored Global solidarity is crucial to by the logistical challenges of a meet global challenges to health unified approach to debt restruc- Africa’s nations will be set COVID-19 vaccine rollout. and prosperity. For much of this turing for the world’s poorest back decades and will have their However, given some of the year, at the precise moment that countries, which has received financial capacity obliterated by recent political changes in major we most needed a Keynesian effort broad support. The US is willing COVID-19. The UN’s Sustainable economies, it is possible that the of multilateral coordination, the to consider extending the agree- Development Goals, already at changed world we see on the other world instead was retreating to ment to middle-income nations. risk before the pandemic, could side of this crisis will be one built national interests. Vaccine breakthroughs and a now be put beyond reach. more firmly on cooperation. u Finally, in November, the G20 political shift in the US create In April, South Africa dropped Itumeleng Mahabane is a Brunswick responded with a groundbreaking further impetus to expansion. decades of resistance to the Partner based in Johannesburg. PLUNKERT DAVID ILLUSTRATION:
10 brunswick review · issue 20 · 2020 ILLUSTRATION: JAMES YANG T outside-in the from Communicating Leadership: Connected formal, the long, andcarries email from aCEO: cal all-staff - in internal efforts. Picture atypi tooingredient all often lacking encourageforms humanity, an email wouldn’t have generated. that aread-but-not-responded-to likes—dozens connections of respond to thosecomments or for theleader to opportunities doally it. This, inturn, creates doesn’t daunting, feel sowe- actu or leaving acomment somehow people.nect LikingaCEO’s post wereplatforms to con designed Instagram, or Facebook, these Whether LinkedIn, Twitter, through externalruns platforms. to better internal engagement comments? tory generatepost more- thanperfunc When does aleader’s intranet to a CEO’s all-company email? people. How usrespond many of ing information, notengaging posts. are These great atconvey- tools: emails, newsletters, intranet familiardigital to larger doses of halls, etc. Others have resorted happy hours,visits, office town by recreating events on video: to stay connected todaytrying WFH workforces. Many are engagetheir in mindasthey intheprocess.opportunities have create happened—and new wouldn’ttions thatotherwise face, but itcanfoster connec- face meeting to the benefits of can’tthat technology replicate attend webinars. They’ve seen brunswick review more posts, social says all-company emails and WFH workforce? Fewer How CEOs can engage a CRAIG It plat- thatsocial helps Counterintuitively, theroute It’s alesson CEOsshouldbear to hold video meetings and and meetings to holdvideo even tech-resistant leaders he pandemic has forced
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find you. audience is; don’t them to expect media.use social Gowhere your have all they aphone andmost or have anemail address. But employees don’t use anintranet reach. In many industries, voice andstyle. stories inways thatreveal their channel, leaders cantell richer plain-text email. Whatever the thanasimple is more striking ded quotes images andpull-out - embed LinkedIn with article appear. they and engaging A production, themore authentic pectedly, the thelesspolished or recorded and, video unex- liveoffers to engagevia theability platforms. Every major platform to express themselves on social more thanitalicsandunderline in part, leaders because canuse their agenda. say,they alone let connect with leaders are before what we trust leadership. We wantto know who engagement—and ingredient of and humanity. That’s acritical warmth injecting has away of to, contentkind of itlends itself inauthentic. media, Social by the often and scripted similarly feel Town andnewsletters halls authors.multiple of fingerprints 20 Another practical benefit: Another practical flows, humanity That atleast 20
of more than50,000.of to times anaudienceSpeed”—at Twitter “VZUpTohandle - live, thepublic employee via communicated mostweekdays, injustice. racial against Hans pandemic andamidtheprotests employeeswith throughout the gram, andLinkedIn to connect example, Twitter, used Insta- Verizon CEOHans Vestberg, for thesedifficultmonths.during great effect leaders usewith for colleagues to follow. apowerfuling—and sets example CEOs demonstrate they’re listen- areees likelier to engage when cycle—employ avirtuous - begets public-facingapproachThis doors—another to say itpublicly. one thingto closed behind speak credibility to themessage. It’s an external lends platform greater message for internal audiences on Counterintuitively, engagement runs It’s anapproach we’ve seen And crucially, publishing a through external better internal the route to platforms.
Partner in based Washington, DC. Craig Mullaney isaBrunswick they lead their organizations. lead they to reinvent andreinvigorate how technologies email andusesocial tives to move beyond Zoom and for execu isanopportunity crisis - them andtheir company. This how theworld sees actually of providing them anunfiltered look perspectives theCEO, infront of outside crucial about bringing from theoutside-in; it’s also employees just aboutengaging prospective ones. current employees, but also just to leadership style—not company’s culture andpersonal that communicates aboutyour thousands? And considerof what or deliver thatmessage infront in private you’ve done agreat job, you have rather your tell you boss employee or their team—would public recognition meansto the gratitude. authentic note of it takes isaphoto plus ashort, employeesof on Instagram. All the outstanding contributions example, routinely both highlight Walmart’s McMillon, Doug for man Sachs’ David Solomon and celebrate your employees. Gold- Pick achannel to begin: andpost This approach,This atitscore, isn’t thatkindof what Imagine For theCEOunsure where to
u 11 SPOTLIGHT
he joke about intelligence But the Constitution, the rule “ officers,” Brunswick Direc- of law, the American way of Ttor Preston Golson says, “is Intelligence Report life—they believe all those things that they smell flowers and ask, very strongly. And a lot of the ‘Where’s the funeral?’ Because you Two former CIA officers, now ends for their own reasons, for CIA’s ethos was built out of the get to a point where you have—I with Brunswick, discuss the their own constituencies. Cold War. We defeated the Soviet wouldn’t say a dim view, but a past and future of the US. Union, right? Our ideals versus very realistic view of what goes on PRESTON: There really is a self- their ideals. Despite our many in the world.” less commitment to the ideals of shortcomings as a nation, we’re Preston, and George Little, America that are held deeply by supposed to be better than our a Brunswick Partner, are both people in the intelligence com- adversaries. That’s something former CIA officers. The two munity. Not saying it’s perfect. we’ve always told ourselves. spoke with Brunswick Review in June about how partisan- ship has become an increasing threat to the integrity of national intelligence. At the same time, the death of George Floyd at the hands of police had triggered a global wave of civil unrest. A former aide to the Director of National Intelligence, Preston also served as CIA Spokesperson, Chief of CIA’s Public Com- munication Branch in its Office of Public Affairs, and Chief of Communications for the Agency’s Directorate of Digital Innovation. George was Assistant to the US Secretary of Defense for Public Affairs and Pentagon Press Secretary, and CIA Director of Public Affairs. You can read the full interview, “Fragile Legitimacy,” online at www.brunswickgroup.com/ review. Below is a sample of their responses.
ON WHITE HOUSE ATTACKS ON INTELLIGENCE GEORGE: My colleagues at the CIA wake up every single day thinking, “How am I going to get this information and characterize it in the most truthful, meaning- ful way for the President and the Vice President and other national security policymakers?” I worked in a Republican administration. I worked in a Democratic adminis- tration. Didn’t matter… There is a great deal of concern that the independence of the intelligence community will erode, become increasingly politicized, that it will be used in many of the same ways that gov- ernments and other societies use their intelligence communities
and militaries—to drive political BEJAR DAN ILLUSTRATION:
12 brunswick review · issue 20 · 2020 To see some of those things called into question just kind of strikes at some of the fundamental ethos. Both the intelligence com- munity and the Department of Defense are given tremendous powers to secure the country. The deal that they’ve struck with the American public is that there’s going to be oversight, lack of partisanship, following the rule of law, to utilize those authori- ties and capabilities around the world. So there’s a concern that if the intelligence community is seen to be politicized (as it is in many other countries), that will lead to an overall delegitimization of the work and it will be seen as just another partisan agency.
ON THE GEORGE FLOYD PROTESTS PRESTON: As an African Ameri- can, I see this as a longstanding issue that’s spanned adminis- trations. People are protesting against systemic issues that are deeply ingrained in the founding success was dependent on their ( ), or Good for the of our nation. We saw 400 years Familiar Face customers and the communi- buyer;買 い 手よし and Seken Yoshi ( from when the first slave ships ties in which their customers ), or Good for society.世間 In landed on our shores… of GOOD lived. Sanpo Yoshi holds that a よしreturn for their trade, the Omi One of the things I’ve been successful business must also would build schools and bridges, thinking a lot about recently is Centuries-old traditions benefit others. support local shrines and even how much people are sur- in Asia offer new value. By The benefits split three ways: pay taxes for poor families, tim payne, joanna donne, prised when they shouldn’t be Urite Yoshi ( ), or expecting nothing in return. daisuke tsuchiya and 売り手よし surprised. If you go back to every Good for the seller; Kaite Yoshi This approach made them yoichiro sato. decade of the 20th century, you exceptionally successful through find a period of racial unrest n 17th century feudal the 17th and 18th centuries. and race-related riots usually Japan, a class of merchants A BRUNSWICK And it lives on in modern Japan tied to cases of brutality—Mar- Iknown as the Omi Shonin as a hallmark of good busi- tin Luther King’s assassination practiced the inclusive capital- SURVEY FOUND THAT ness. In research conducted by is one. Each decade there are ism that the rest of the world, IN JAPAN, Brunswick in 2016, 80 percent examples of it. Yet we act as if it’s centuries later, is embracing as of respondents in Japan felt a surprise every time it happens. “the new paradigm.” business can provide solutions So there’s an element of strategic Associated with the prov- to major challenges—by far the failure and intelligence failure. ince of Omi, these merchants most positive response of the 24 Companies have to ask them- travelled the country, buying markets surveyed. selves why this keeps happening. goods from the cities and con- Among Western markets ducting trade from Hokkaido with the lowest trust, including GEORGE: Ultimately you have in the north to the tip of Japan’s the US and the UK, the response to match words with deeds. Cor- southern Kyushu island. The was barely half of that. Japan’s porations will be held to account Omi were strongly aware of their corporations are sometimes on what they do to change the status as outsiders and that their criticized for a lack of emphasis situation, to make profound livelihood depended on building 80 on shareholder return, but they PERCENT FELT change and to follow up on their long-term, trusting relationships. have clearly won the trust of commitments, not just within Their philosophy, Sanpo BUSINESS COULD stakeholders. their own companies, but in soci- Yoshi, continues to have an ety writ large. Even 10 or 20 years influence in Asia. The name OFFER SOLUTIONS CARING FOR THE ago, companies weren’t expected means “good for three parties.” TO SOCIETY’S MAJOR COMMUNITY to play that role in society… The Omi intended to make In China, in the early days of ILLUSTRATION: JAMES YANG JAMES ILLUSTRATION: ILLUSTRATION: DAN BEJAR DAN ILLUSTRATION: Now it’s vital. u money, but knew that their CHALLENGES. the republic and in the absence
brunswick review · issue 20 · 2020 13 SPOTLIGHT of a flourishing private sector, Singapore. From the very begin- doing helps you and the local benefit,” the chairman said. “C.P. major state-owned enterprises, ning, they had a deep sense community and what you are Group turns 100 next year and or SOEs, were established and that building a luxury resort doing helps me too.” the three benefits philosophy tasked with nation building. in developing Asia could have Asked if this focus on com- will always be the guiding star to More than just an employer, tremendous consequences—not munities and staff pays off ensure our success wherever we these businesses influenced the just environmental, but also in improved returns, Mr. Ho invest for the next 100 years.” health of the community. Since social. As he put it, “How do you rejected the assumption. the late ’70s, as the nation’s pri- integrate yourself with the com- “If people try to justify NOT ALL PERFECT vate sector has developed, many munity when one day’s room stakeholder capitalism on the While the idea of stakeholder of its biggest businesses have rate could be equal to a local grounds that ultimately your capitalism has long been cultur- been partially privatized yet they villager’s monthly income? You profits will increase, you are an ally acceptable and even the still underpin society. apologist of stakeholder capital- norm in Asia, it would be wrong “Historically, a major SOE ism. If you really believe in it, it to imagine that it is a perfect in China looked after the fabric may well be true that you are not model. The Western model of of the lives of workers and their maximizing your profits.” good governance has been slow families,” Fu Chengyu, former to be thoroughly adopted and a Chairman of Sinopec Corpora- PLANTING A SEED fair share of corporate gover- tion told us. “Most of the social The Asian conglomerate C.P. nance scandals in Asia have been and domestic amenities were Group is today Thailand’s largest the result. provided by the company. More “ASIA HAS private company, with global “We have both a challenge recently, in my time running revenues of $63 billion in 2018. and an opportunity that is very Sinopec, while we faced out EMBRACED A But the company started out different from the West,” says to the international capital as a seed shop in Bangkok’s Banyan Tree’s Mr. Ho. “We markets and recognized a listed MODEL WHERE China Town. have embraced the idea of the company’s responsibility to THE INTERESTS Arriving in Thailand 100 broader community and done generate profits, as Chairman I years ago barely able to speak the all kinds of things that are prob- was still very clear Sinopec was OF THE language, Chia Ek Chor named ably not always considered in the a community of several million his business Chia Tai, taken from best interest of minority share- families, not just the one million COMMUNITY, a Chinese expression for operat- holders. Now we must adopt directly on the payroll.” ing fairly and ethically. greater rigor in terms of defining Separate from the Chinese CUSTOMER, “Conscious of our family’s our stakeholders and separation model, many of Asia’s emergent EMPLOYEES, ARE immigrant status and grateful of interests.” champion businesses come for the generous welcome they Trust in business varies from a lineage closer in spirit ALL CRITICAL.” received in Thailand, my father widely from region to region and to the Omi merchants. Banyan Ek Chor sought to ‘give back doesn’t translate automatically. Ho Kwon Ping, Tree Hotel and Resorts is one. Chairman of Banyan Tree to the country’ by operating In the US, only 43 percent of the Its founder and Chairman, Ho Hotel & Resorts his business with honesty and population feel businesses are Kwon Ping, recently shared his integrity,” says C.P. Group Senior trustworthy. That means that views with us about how Asian Chairman Dhanin Chearava- even Asian businesses steeped in business leaders can create risk creating dependency and nont. “One of the first examples an inclusive culture need to be their own authentic and locally resentment.” of this was seed products sold prepared to articulate their value, appropriate model of capitalism. To mitigate against this, Mr. with an expiry date handwritten not just to domestic stakehold- “Capitalism, and any Ho worked very hard to make on the package, and a promise to ers, but internationally as well, in economic system, is culturally sure that Banyan associates as exchange any that were deficient. diverse markets. bound and the ethos of Asian well as guests appreciate that Doing so guarantees the crop Still, there is a certain arro- civilization has to a large extent their interaction with each other quality for farmers, whom C.P. gance in the West as it embraces been communitarian in nature,” is critical. The whole service Group counts as life partners. stakeholder capitalism as its own Mr. Ho said. “There has been culture is contained in a phrase It was 50 years before Western thoroughly modern invention. a strong need for communi- they use: “I am with you.” This is retailers began to seriously adopt Markets that have lived that ties to stress social cohesion built on a foundation of empa- ‘use by’ and ‘best before’ dates philosophy for centuries may and harmony as opposed to thy and understanding. and that speaks to the desire to well serve as models for what encouraging a model where “When you have culturally do right by our customers.” that actually means. u the individual succeeds at the insensitive people come and visit The values remain deeply a place and disparage the culture expense of others. It is therefore embedded in C.P. Group’s cul- Tim Payne is a Brunswick Senior natural that Asia has embraced a and the people and the poverty, ture and articulated through the Partner and Head of Asia in Hong Kong. model where the interests of the you develop an alienation and Group’s “Three Benefits” philo- Joanna Donne is a Partner based community, customer, employ- a sense of grievance against the in Singapore. sophy. “Both in Thailand and Daisuke Tsuchiya is a Partner in ees, are all critical.” people you are employed to beyond, C.P. Group’s priority has London and Head of Japan, leading a Mr. Ho and his wife, Claire serve. The service is no longer always been to benefit the coun- team of more than 15 Japan experts and Chiang, 25 years ago formed real but very forced. So we talk try and the people. And only bilingual advisors around the world. Yoichiro Sato is a Director in a luxury hospitality business about this culture of ‘I’m with when those two priorities are Brunswick’s Tokyo office, which opened headquartered and listed in you’ and the idea that what I am met should the company seek to in 2020. BARCZYK FRANZISKA ILLUSTRATION:
14 brunswick review · issue 20 · 2020 The George Floyd Outrage: US Workers SPEAK Brunswick Insight’s poll of employees reveals how they would like their companies to respond. By Mara Riemer. mericans are rightly outraged at the killing Aof George Floyd and are making their voices heard in the streets and online. We have seen a flood of corporate statements across the news media, social media and employee inboxes and they’ve generated a wide range of strong reactions. To find out what workers expect from their companies, Brunswick conducted a poll of 1,192 US workers, including an over-sample of 292 Black workers, on June 1, 2020. We sought to understand their opinions and perceptions of companies speak- ing out on racial discrimination in America and what actions companies should take. Public polling on issues of racial equality has been taking place since long before the civil rights movement. Our research is intended to collect data on that companies will address issues to 29 percent of millennials, 15 workers who say their perceptions how workers are viewing the of social change and racial justice percent of GenX and just 10 would improve is significantly statements and actions of their is likely to increase. Young people percent of baby boomers. higher at 70 percent. employers. Companies have been are significantly more likely to And when companies do With GenZ and millennials expected to speak out on social want to hear from leaders at their speak out, their voices are heard: the impact is overwhelmingly issues for some time now, and own company on George Floyd Workers are paying attention to positive: 65 percent of GenZ and the expectation for them to do and racial discrimination: 52 what companies are saying in 57 percent of millennials say it so is growing. That is reflected in percent of GenZ want company response to the killing of George would change their opinion for our results. leaders to address his death and Floyd and the protests, with 68 the better, as opposed to 4 percent the protests specifically, compared percent of workers saying they and 10 percent, respectively, who TAKE A STAND When we are aware of companies issuing say it would change for the worse. asked workers if they expect their statements expressing support for Baby boomers are more evenly employers to take a stand on Companies have racial justice. split: 36 percent say it would social issues, 31 percent said “yes” improve their opinion of the unequivocally and 41 percent been expected to THE BENEFITS In the eyes of company and 22 percent say it said “yes, but only when the issue workers, speaking up is much would worsen it. directly affects the company’s speak out on more likely to improve percep- business.” Just over one quarter social issues for tions of a company than to hurt IT’S NOT TOO LATE At the time said “no.” Black workers are even them. Over half (51 percent) of this writing, there are many more likely to expect their com- some time now, of all workers say that speaking companies that have yet to make a panies to take a stand on social out in solidarity with protesters public statement and are wonder- issues, even when they disagree and the expectation improves their view of a company ing: Is it now too late? Will they with the position taken. for them to do compared to 37 percent who say come off as followers? Will their As younger generations enter that it would not affect their per- late commentary be viewed as
ILLUSTRATION: FRANZISKA BARCZYK FRANZISKA ILLUSTRATION: the workforce, the expectation so is growing. ceptions. The percentage of Black inauthentic? While each company
brunswick review · issue 20 · 2020 15 SPOTLIGHT
must assess its own situation, the gen- Awareness of COMPANIES SPEAKING OUT is High eral answer is that it’s not too late. Over 70 percent say that regardless of timing, Almost seven in it is important for companies to let their 10 US workers are employees and customers know where Not at all aware of companies aware they stand. 68% 65% issuing statements GenZ and millennial workers are 53% Not too aware 48% expressing their Somewhat even more likely to want to hear from 35% support for racial aware justice—more than companies on the protests regardless Very aware any other story we of timing: 82 percent and 70 percent tested. respectively say companies should Com anies iss e Presi ent Tr m Protests Anonymo s statements in ta es shelter in s rea ha ers speak out regardless of timing. s ort of n er ring aro n re emerge throws her into a r DC rotests ring nrest ra ial sti e the worl ACTIONS OVER WORDS Importantly, workers want more from corporations than just statements. The STATEMENTS OF SOLIDARITY Viewed Positively data suggests that the next few days and weeks will come with increased expec- About half say tation of follow-through and commit- 5% 6% 4% It would significantly worsen 8% 9% 4% my perception of that company that their percep- ment. Companies should be having 22% tions of a company 70% It would somewhat worsen conversations now about the next steps 37% my perception of that company would improve if the 40% company released a they will take. Workers believe that 51% 28% 46% of that company statement express- donating to organizations that fight ing solidarity with 26% It would somewhat improve my racism and promoting the use of police 25% the protestors. Black perception of that company body cameras are actions to prioritize. It would significantly improve workers are espe- 25% 21% 42% my perception of that company cially appreciative of Notably, nearly one quarter (24 per- the act. cent) of Black workers agreed that com- US Workforce White Workers Black Workers panies should allow Black colleagues to take mental health days off—nearly twice the rate of white respondents TOP CONCERNS Differ Along Race Lines (13 percent), and much higher than the 2 percent of baby boomers and 9 percent of GenXers who said the same. Black workers’ top US Wor for e White Wor ers Bla Wor ers concern was for This indicates that the extent of the protestors‘ safety; daily emotional toll that these events for whites, it was are taking on the Black community damage to property. White workers’ remains underestimated by the mostly No. 2 concern was white, largely middle-aged group that worsening the racial populates most boardrooms. 88% 91% 79% 84% 85% 72% 79% 83% 80% 77% 75% 82% 74% 69% 88% divide; this was As corporations make decisions on That rotests That rotests That rotests That rotests That rotestors the lowest concern will h rt lo al will intensify will lea to will not e will e in re , among Black how to support employees through this sinesses ra ial i i es a s i e in arreste or or resi ential in the US COVID om atting harasse workers. time when all Americans are feeling ro erty ases oli e r tality the stresses of the pandemic and are exasperated at the brutalities they have witnessed, leaders need to ensure that Black Workers Want MORE ACTION from Companies there are people of color around the table where the decisions are getting made, or risk their own blind spots Black employees Donate to organizations 38% obscuring the best path forward. that fight racism 52% expect more corpo- rate action than Only when we look back on these Promote need for body 40% cameras on police 45% white workers. The times will we know if this was the gap is especially Promote petitions against 32% White Workers moment when things really changed. police brutality 49% Black Workers large when it For now, what this means for compa- Release corporate statement 24% comes to promot- in support of protestors 36% ing petitions nies is that they must consider how against police bru- Allow Black colleagues to 13% Black respondents saw a need for mental they fit into the conversation of today 24% health days at almost twice the rate of tality. Companies and the solutions for tomorrow. They Release corporate statement white respondents, indicating that there should consider 14% is a heavy emotional toll that has largely must thoughtfully approach what they against protestors 13% shifting from gone unnoticed. As corporations make Defund organizations that 9% decisions on how to support employees expressing solidar- say, and then take action, to make those support police departments 14% through this time they need to make sure ity with protestors words authentic. u there are people of color around the table Defund police departments 8% to calling on police where the decisions are getting made, or across the country 19% risk their own blind spots obscuring the to do better. Mara Riemer is a Partner with Brunswick None of the above 23% best path forward. Insight, the firm’s public opinion research 13%
function. She is based in Dallas. HOEY PETER CHARTS:
16 brunswick review · issue 20 · 2020 WINTRODUCTIONFH
uring a brunswick review interview last this edition of our magazine brings you Brunswick March, I was asked to compare the financial col- Review stories posted online during the first months D lapse of 2009, when I served as Deputy Secre- of the pandemic. On Page 32, IBM Chief Information tary of the US Treasury, with the black swan of 2020, Officer Fletcher Previn takes us inside the tech giant’s COVID-19. • “Then, we had a financial crisis that COVID-19 response. Other examples of outstanding bled into the real economy,” I responded. “Now, we leadership through COVID-19 can be found in our have a much more complicated, much more uncertain profiles of South Africa’s Adrian Gore, CEO of health set of circumstances. The basic rhythms of life have insurer Discovery (Page 72), and Kerala’s Health Min- stopped. People aren’t traveling, they’re not aggregat- ister K.K. Shailaja (Page 69). • In this issue, our cov- ing, they’re not interacting, they’re not transacting. erage of race and equality includes an interview with The things we have long taken for granted are no lon- Shellye Archambeau, one of Silicon Valley’s first Black ger taken for granted. And there isn’t a strong sense female CEOs and a Director on the board of Verizon, when, if ever, there will be a return of what we used to who expresses “cautious optimism” about Corporate call normal” (Page 56). • Nine months later, COVID- America becoming more racially equitable (Page 42). 19 remains a crisis for human health and the global • For inspiration on staying strong amid adversity, see economy. But there is another factor I mentioned in our interviews with Kim Chambers, the marathon March that remains true: There is a critical role for swimmer (Page 99), and British explorer Sir Ranulph the private sector to play in making progress on both. Fiennes (Page 92), and read the account of Bruns- • What comes to mind is not just the pharmaceutical wick’s own Admiral Mike Rogers, a veteran of long and biotech industries’ record-breaking progress in confinements aboard ships and submarines (Page pursuit of a vaccine, or the manufacturers that swiftly 36). • The COVID-19 pandemic, the economic cri- built capacity for making PPE, disinfectant and medi- sis and all-too-frequent reminders of structural racial cal equipment. I think of companies across industries inequity have meant that 2020 has been an extraordi- figuring out ways to keep customers served, employ- narily challenging year for all of us. I am hopeful for a ees retained and society functioning in a radically brighter 2021. altered environment. • One legacy of the pandemic
ILLUSTRATION: NOMA BAR NOMA ILLUSTRATION: is the arrival in general parlance of “WFH.” So named, NEAL WOLIN, CHIEF EXECUTIVE OFFICER
17 The fate of the GLOBAL ECONOMY does not rest on the US election, says Dr. Moyo. “It’s bad, whatever happens.” By kevin helliker.
18 brunswick review · issue 20 · 2020 The fate of the Iconoclastic Economics: GLOBAL ECONOMY does not rest on the US election, says Dr. Moyo. “It’s bad, whatever happens.” DAMBISA By kevin helliker. MOYO
she speaks for the left, the right, the poor, the rich, the third world and the first. A native of Zambia, she holds a doctorate in macro- economics from Oxford University, a Master of Public Administration from Harvard University and an MBA from American University, from which she also received a degree in chemistry. • Her résumé includes stints at Goldman Sachs and the World Bank, and she has published four best- selling books: Dead Aid, a treatise on the failure of aid to Africa; How the West was Lost, on misguided economic policies of developed countries; Winner Take All, on the implications of China’s purchase of natural resources around the world; and Edge of Chaos: Why Democracy is Failing to Deliver Economic Growth and How to Fix It. • She has nearly 1.4 million followers on LinkedIn, and more than 200,000 on Twitter. Time magazine once called her one of the world’s 100 most influential people. She sits on The fate of the the boards of Chevron and 3M, having previously served on the boards GLOBAL ECONOMY of Barclays Bank and SABMiller. She’s a serial marathoner. She has visited does not rest on the more than 80 countries. She lives in New York and London, where she is US election, says finishing her fifth book and serving on a commission on racial equity at Dr. Moyo. “It’s bad, the behest of the British Prime Minister. whatever happens.” By kevin helliker. For the global economy, how important is the US election? I don’t think the election will make a material difference to the global economy. It’s bad, whatever happens.
What leads you to say that? Even before the financial crisis hit in earnest this year, the global economy was in a precarious place. Large economies, from emerging markets with at least 50 million people to very large developed markets, were struggling to create growth. Most countries were failing to generate 3 percent growth— the minimum annual growth rate needed to double per capita incomes in a generation—roughly 25 years. Add to that a lot of economic headwinds: technology and the risk of a jobless underclass, demographic shifts, income inequality, climate
PHOTOGRAPH: COURTESY OF DAMBISA MOYO DAMBISA OF COURTESY PHOTOGRAPH: change, natural resource scarcity. India’s adding a million people a month
brunswick review · issue 20 · 2020 19 MOYO to its population. Social mobility in the US has been Now there is an impetus for more tax revenue, halved in the past 30 years. Debt: Just this week the because governments need it, and also more regula- WSJ reported that consumer, business and govern- tion that becomes more antitrust. Corporations will ment debt in the US had reached $64 trillion—tri- likely get smaller. We have had a period where all the ple the gross domestic product. Productivity: A fac- large sectors—banking, technology, airlines, phar- tor accounting for 60 percent of why one country maceuticals, energy companies—are dominated by grows and another doesn’t—has fallen considerably a handful of companies. We essentially very organi- over the past decade in developed markets, in an cally have ended up with a number of oligopolies. era when technology should be leading to increased Every aspect of globalization is now unwinding. productivity. Finally, there is impotent public IN The area of trade in goods and services. The move- policy. We have been living in a period of negative ment of capital is being subjected to capital controls. interest rates, massive debt, massive government The movement of people, immigration is a political deficits, and enormous and arguably unsustainable third rail, and there is a risk of a splinternet—that welfare systems. over the next decade the world will split into China- Again, that is all before COVID. led versus US-led technology platforms. Lots of bar- I’ve been very fascinated by the similarities riers are being put up. between the Gilded Age of 1870 to 1900 and the one The result, if you look at forecasts, is that projected between 1950 to 2008. Both were periods of high 20 equity returns materially have come down from YEARS’ TIME, economic growth, globalization, and the rise of very around 8 percent-plus to between 4 and 6 percent. strong and important corporations. Both periods had WHAT DO I very notable widening income inequality. Both were KNOW FOR SURE To use the unofficial motto of the pandemic, how periods where you had relatively weak or small gov- can developed nations build back better? ernment in terms of government being an economic IS GOING TO The answer has to be more efficient government. As participant as an arbiter of capital and labor. A data BE IMPORTANT? I wrote in my last book, economists and business point worth considering: From 1850 to 1900, all the people can do all they want in terms of enhanc- presidents in the US had one term in office, only one. TWO THINGS: ing efficiencies. But if you have government that is They were actually broadly considered irrelevant. CHINA AND ineffective—that’s not only not doing constructive That first Gilded Age was punctured by World stuff but is actually hurting the business environ- War I, the Spanish Flu and the Great Depression. TECHNOLOGY.” ment—then you’re not going to grow or generate What followed was a 20-year period of low eco- long-term returns. nomic growth, deglobalization through protec- Mike Bloomberg has talked about there being tionist policies on trade and the breakup of large four things that government needs to be. It needs corporations. You had government become much to be data-driven. It needs to be forward-leaning. It more important both in terms of size and economic needs to focus on measured outcomes. And it has to importance. You get FDR and his three terms as be not corrupt. If you have that type of government, president. He builds the New Deal to address income you’re off to the races. inequality. The turnaround really came from the But we don’t have that type of government. And War, ’39 to ’45. we don’t have the sort of imaginative thinking that One marker I think is interesting: The Dow Jones really was the bedrock of the United States. There’s Industrial Index peaked in 1929 at 381 points, and it no Manhattan Project. There’s no DARPA. There’s did not hit 381 again until the 1950s. no large-scale government-led effort as there was in If you believe that history repeats itself, then we the build-up of Silicon Valley. When the American will be going into a period of low economic growth Civil Engineers releases data showing that America and big government. On big government, Angela gets a D-plus in terms of infrastructure, there’s not Merkel has talked about the idea of 7/25/50. That a response, not a state or federally led program to Europe is 7 percent of the world’s population, 25 rebuild the interstates or highways. At best public percent of GDP, and 50 percent of world welfare policy appears reactive, and not proactive. payments. If you add the US, you’re talking about 12 percent of the world’s population, 50 percent of To what extent is the future of the global econ- GDP and 90 percent of the world’s welfare payments. omy in the hands of corporate executives? If you consider that 90 percent of the world’s popula- I would say it is de facto, but not de jure. Especially tion lives in the emerging markets—this is an imbal- in the West, there’s a clear delineation between pub- ance that is, longer term, unsustainable. lic policymakers, the private sector and civil society.
20 brunswick review · issue 20 · 2020 Traditionally corporations have not been charged debt is not merely an economic variable, but also a with providing public goods such as healthcare, mounting geopolitical concern. As we speak, China education and infrastructure, or as involved in is in the middle of selling off the US dollar debt, socio-cultural debates. However, society, as well which is why there’s been so much weakness in the as large institutional investors and regulators, is dollar recently. increasingly demanding that corporations take a In 20 years’ time, what do I know for sure is going stand in these areas. “WE’RE to be important? Two things: China and technology. Several years ago, I wrote an article talking about BEGINNING TO how I expected these lines to be much more blurred, LEARN A SHARP In our last interview, you said, “All my life I’ve not least because of what China has done. China, been raised to believe that democracy and mar- many people would say, has been quite successful LESSON ABOUT ket capitalism are the path to economic growth, running an economy where these lines are blurred. THE SOCIETAL better living standards, and reducing poverty. Of course, there are lots of arguments saying that However, with China’s legendary economic suc- we haven’t yet seen the costs of China’s choices, and COST OF PRIVATE cess and democracies in advanced countries that day will come, et cetera. But for now, they’ve FREEDOMS. struggling, people around the world are no lon- been able to do this. ger convinced, perhaps because we who believe In a surreptitious way in the West, companies TRADE-OFFS in democracy are no longer convincing.” Has have been taking on the responsibilities of govern- ARE GOING TO BE the pandemic—which China arguably handled ment not only in terms of social goods like edu- better than the West—affected that dynamic? cation and healthcare, but also areas like climate REQUIRED OF US. At the heart of that question is ideology, meaning: At change. And now this has been sort of formalized what point are the costs of ideology so great that we because of the Business Roundtable statement, and TRADE-OFFS turn into pragmatists? the move away from the Milton Friedman view of MUCH MORE When we last spoke I was talking about countries corporate responsibility. I believe this will continue that are very poor getting to the point where they to a far greater extent in years to come. CHALLENGING say, “Democracy all sounds nice on paper, but I need THAN SIMPLY to eat today.” Westerners love their freedoms. I can In a recent tweet, you noted that of each of the WEARING do whatever I want. I can have as many children as G20 countries except China has suffered a I like. Nobody’s going to tell me that I can’t eat as recession this year. Will the pandemic have the A MASK.” many burgers as I want to. effect of enhancing China’s global presence? We’re beginning to learn a sharp lesson about There is a risk that that happens. I would point to the societal cost of those private freedoms. Trade- three trends that are becoming solidified in this offs are going to be required of us. Trade-offs much COVID era. One is China trading with emerging more challenging than simply wearing a mask. markets and other countries. They are stamping their imprimatur on global trade—now as the pri- mary trading partner in many of the largest emerg- IN DEBT TO CHINA ing and advanced economies. Similarly, in foreign direct investments, China China is now the largest official creditor to the developing world is not only the largest lender but often the larg- Aggregate external public debt owed to di erent o icial est investor in many large economies around the creditors in billions of dollars world, from Australia, across Europe, South Amer- 400 Debt to China ica, and Africa. 350 The third thing is that China is now the largest 300 Debt to all Paris Club lender in terms of debt to the emerging markets. It’s governments 250 Debt to the actually surpassed the G20 and some of the multi- World Bank nationals. China is thought to be buying distressed 200 debt on the secondary market and then forcing 150 governments to negotiate by giving assets instead 100 of restructuring the debt. That’s really important to Debt to 50 China’s continuing efforts to become a much big- the IMF ger player. Additionally, China is the largest foreign $0 2000 2002 2004 2006 2008 2010 2012 2014 2016 2017 lender to the US government—fluctuating between SOURCES: Horn, Reinhart and Trebesch (2019); World Bank; International Development Association; Paris Club
No. 1 and No. 2 with Japan. Naturally, this means HOEY PETER CHART: brunswick review · issue 20 · 2020 21 MOYO
What is your latest book and when is it out? challenge is twofold. First, we’re extremely impatient. It’s out spring 2021, and the topic is corporate boards. The world we’re living in is an artifact of challenges It’s cryptically titled How Boards Work. [Laughs] It’s that need long-term solutions, like investments in actually the closest thing I’ve written to a memoir, education. People don’t have patience for that. because I talk about my experiences on boards. The other issue is, I want to make sure that the It’s not a big exposé. When there’s a corporate result isn’t a few people who look like me winding up scandal, people will say, “Where was the board?” I’m on boards and in the C-suite. As long as Black people trying to provide some clarity around what levers and other minority groups don’t have the tools to the board has, and what a board’s mandate is. What enhance their lives, then there is a serious, systemic exactly can a board do? Why can’t it do more? How problem. Everybody deserves the right to fully par- should we be thinking about that? ticipate in the economy, to have equal access to capi- It really tries to address a handful of basic ques- tal, to opportunity. That, to me, is the rub. tions on matters like worker advocacy, data privacy I worry that we could be in a world now, with can- issues, how to engage in a world that’s become deglo- cel culture and other agendas, where people are using balized, how to manage supply chains, how to tap injustice to fight injustice. As a consequence of that, into global talent. I end the book by offering propos- you’re seeing many more companies going private. If als on how boards can better do their job, which is to capital accumulation, capital formation, investment support management while also checking and chal- in everything from technology to pharmaceuticals— lenging management. if that more and more happens privately, there’ll be Also, make sure the trains run on time. In a cli- less likelihood that people like myself can participate mate where scandal gets all the attention, we tend to in the economic enhancement of the future. I want forget that hundreds of millions of pieces of cloth- to make sure that the conversations are constructive, ing, goods and services are delivered every single day, they’re helpful. Minorities need feedback. I don’t in an efficient, cost-effective and sustainable way. want a situation where people are scared to give me All four of Ms. Moyo’s That’s done with the oversight of effective boards. books made the New feedback because I am a Black woman. I’m offering ideas for how we can make boards even York Times Best Seller Unfortunately, given the multitude of and mani- more effective given all the transitions and challenges list: Dead Aid, Winner fold challenges facing the global economy, there’s a Take All, How the West of the global economy and geopolitics. Was Lost and Edge of real risk that the social justice issues slip to the bot- Chaos. The last, released tom of the agenda again. If COVID numbers spike in 2018, addresses While writing your book, you’re serving on a UK popular uprisings in up and global growth goes down even further, you government panel? a period of anemic could get more political populism, and that could I joined the Commission on Race and Dispari- economic growth and move social justice further down the agenda. widening wealth ties, under the Prime Minister’s office. I’m chair- inequality. ing its Employment and Enterprise subgroup. They Do directors face new pressure to advance the approached 10 of us, none of us politicos, across the interests of all stakeholders? political spectrum, to look objectively look at the evi- In terms of the corporate mandate, we’re there on dence, and come back with suggestions. behalf of financial shareholders. The Delaware incorporation rules talk about that. Has diversity and inclusion truly been a concern But in the real world, where there’s a lot of failure of boards and corporations? Or just lip service? in the delivery of public goods, schools, infrastruc- I’ve been supported throughout my career by a lot ture and healthcare, corporations are being required of people who don’t look like me. But one data point to participate in broader societal advancement not does not make a trend, and for way too long there only by regulators but by investors and other stake- absolutely has been a lot of systemic racism. holders—employees, customers, communities. The Corporations, and society more generally, have to 2019 Business Roundtable statement on the purpose be more ambitious. Giving a check for $10 million to of corporations solidified this view. some community program—that’s motherhood and Those of us on boards are straddling this line, apple pie. That’s necessary but not sufficient if we’re making sure companies remain profitable enough to going to jumpstart society in a more inclusive way. fund R&D, innovation and future proofing—while During boardroom discussions on this issue, I making the world a better place. My book talks at try to push management to be more aggressive and kevin helliker length about navigating that. We don’t want the pen- is a Pulitzer Prize-winning innovative. I figure, “We can put a man on the moon. journalist and Editor of dulum to swing to where we’re all “woke” but no lon- Why can’t we solve these types of problems?” The the Brunswick Review. ger focused on making sure the business is viable. u
22 brunswick review · issue 20 · 2020 In Millennials We Trust
ecades of borrowing against future Left holding friend’s Instagram story of an art exhibition in Jan- generations and stretching the planet’s the bag, they will uary would stick with you in June. But I couldn’t resources placed the human race in a pre- get Erik Johansson’s “Demand and Supply” (2017) correct the carious position—and that was before out of my head. In that digitally created portrait, mistakes of their D COVID-19. Count on us—millennials— Johansson vividly captured the overdeveloped to make a difference, partly because we have no predecessors, state of our planet: a city left precariously balanced choice, and partly because growing evidence sug- says Brunswick’s on a spindly column of earth, the rest of its island gests that we already are. To the “unluckiest gen- jennifer home eaten away by the city’s mining. eration”: We’re up! huffman. We have built a world of luxury the Earth can- In typical millennial style, I found myself spend- not afford. We are accelerating our massive credit ing a long time pondering the implications of a card debt that paid for these decisions, yet some-
particular social media post. You wouldn’t think a how, the bill is never due, and our spending limit VISIONANDIMAGINATION.COM PHOTOGRAPH: brunswick review · issue 20 · 2020 23 - - - -
60% 60% 56% 56% 53% 50% 43% 43% 41%
24%
Be more vocal on Be more vocal on societal issues political issues
MILLENNIALS increases. No wonder the Edelman Trust Barom- eter finds that 56 percent of people believe capital- BUSINESS BEHAVIOR ism does more harm than good. No wonder there Percent of millennials who agree with the following is a large trust deficit in our institutions. statements about the behavior of businesses As if the picture were not already grim, in walks COVID-19. The pandemic shook up the status quo. However, it also created room for societal debates to take on a new urgency. People are trapped work- Germany ing from home, fearing potential unemployment or Global 75% 75% already working reduced hours, uncertain of what They focus on their 59% the future might bring, besides more drudgery. 52% own agenda Yet despite the strains of homeschooling and the rather than binge-inducing call of Netflix, this moment has cre- considering the wider society ated more space for reflection than our hyper-dis- ACCORDING tracted, smartphone-driven world normally allows. 74% 63% Many of us are asking uncomfortable ques- TO A BRUNSWICK 56% They have no ambition 50% tions. Clearly we can live on much less. Why do SURVEY, beyond we consume so much? Minority communities, wanting to make money already beset by below-average health, are dispro- portionately impacted by COVID-19. How does 62% 65% that reflect a just society? Supply chain workers are 47% 35% They behave choosing between risking COVID-19 exposure or in an ethical starvation. How can the West in good conscience manner subsist off the global poor? It is as though, for 62% the first time, COVID-19 has many of us seeing 54% Their leaders 46% Johansson’s picture clearly. are committed 28% to helping These questions aren’t new. But in this moment, improve society they feel new. They have gained a critical relevance. Who will take the lead in answering them? Mil- 71 PERCENT OF lennials should. Despite being what The Washing- ton Post calls the “unluckiest generation,” a genera- BRITISH CITIZENS SOCIETAL ISSUES tion that The Atlantic says “doesn’t stand a chance,” BELIEVE Young people want to see business leaders being we should push to spare future generations our more vocal on societal issues experience. Yes, I am asking the worst-off genera- COMPANIES tion to become the business leaders we need. BECOME INVOLVED - - - - If we are going to use the crisis to acknowledge 60% 60% 56% 56% IN SOCIETAL AND 53% 50% and embrace these questions, then “greenwash- 43% 43% ing” and “purpose-washing”—terms dismissing ENVIRONMENTAL 41% corporate sustainability efforts as all bark and no 24% bite—must stop. According to a Brunswick survey, MOVEMENTS FOR 71 percent of British citizens believe companies THE SAKE OF become involved in societal and environmental Be more vocal on Be more vocal on movements for the sake of appearances. APPEARANCES. societal issues political issues One reason for perceived “purpose-washing” is that business leadership has not put action behind mission and purpose statements. A Harvard Busi- strong sense of purpose. This gap is eroding soci- ness Review survey found that executives believe ety’s trust in business. a company’s purpose brings both internal and Millennials are especially skeptical about the external benefits: 89 percent feel purpose drives authenticity of business intentions. In Germany, employee satisfaction; 84 percent said it impacts according to a Deloitte Millennials study, millen- a company’s ability to transform; and 80 percent nials’ trust in business’ intentions eroded drasti- say it increases customer loyalty. Despite this, only cally from 2017 to 2018. That study finds a declin-
46 percent of executives say their company has a ing belief among German millennials in the ethics HOEY PETER GRAPHS:
24 brunswick review · issue 20 · 2020
Germany Global
75% 75% They focus on their 59% 52% own agenda rather than considering the wider society
74% 63% 56% They have no ambition 50% beyond wanting to make money
62% 65% 47% 35% They behave in an ethical manner
62% 54% Their leaders 46% are committed 28% to helping improve society GRAPHS: PETER HOEY already prove asmuch. action. experiences Their andaccomplishments authentic. Eliminate greenwashing. people.”nates with In other words, make purpose haveful business will thatreso agenuine purpose In thesamesurvey, 81percent say that “a success- format.” power. suggests That agreater of sharing nolonger relevantCEO role initscurrent be will 70 percent say millennials American of that “the ent way. According to an ExpressAmerican Survey, different—and look future in a differ perform will binary.being also believe gender on aspectrum, than falls rather group.to aminority thiscohort percent Fifty of in UShistory, them 44percent belonging with of aremillennials themostdiverse adult generation at71percent).not farbehind Broadly, American women weretion of employed GenX was (though were the same age (around 22-37), a lower propor women are employed. When other generations the example,American millennial 72percent of diversity andinclusion. intermsticularly of Using their leaders would wish support,issues they par influence. Millennials represent societal important any generation.tion of workforce, theglobal 35 percent of thelargest por 2020,there—as of currently millennials represent businesses. And out there millennials are alotof routes are already CEOsandhave their own started roles, says Korn Ferry. are into moving meaning more leadership thanhalf average manager afirst-time intheUSis30, age of becoming leaders. Many already are leaders. The according to Manpower Group. for example, thatnumber jumps to 80percent, not generate profit. In Mexico, India and Brazil, say business isto improve thattherole of society, and action. on leaderscalling to closebetween words thegap vocal issues. andpolitical on societal are They also any positive shift. tic. We post-COVID-19 studies indicate if see shall globally,though ourgeneration’s ispessimis view nials are more skeptical abroad, thantheir peers leaders to improvements. societal millen German business business andinthecommitment of of brunswick review Millennials will be theones be to put wordsMillennials will into factorsThese explain the help why the CEO of to add their will millennials composition The of course,Of many have who taken non-traditional Millennials are on notjust leaders. calling They’re On average, millennials 63percent of For now, wantleaders millennials to more be
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- generations enjoyed. homeownership andother previous activities reflected Thisisalso indecline in America. ous generations, theNGO according to New more debt,andearn 20 percent less than previ Younger generations are have more educated, the Washingtonto Post. of theunemployedportion intheUS, according lennials back further, representing thehighest work. AndCOVID-19and part-time set mil has affected by high unemploymentproportionately Youngerearnings losses. Europeans were dis much of thecountry’sa recession,andabsorbed In 2008, USmillennials were graduating during to a Kantar study. aKantar to theaveragepared to according of percent), 29 onpersonal developmentconcentrate (com and 40percent of GenZ have to thetime used During thepandemic, 38percent of millennials of Californiasity Management Review. cent of baby boomers) theUniver according to happy 31percent (comparedto of GenX,per 27 investperks in office to keep their employees percentSixty of millennial business owners Impact Report. more nonprofits,to theMillennial according 63 percent three ofto or millennials donated cially, (yes, in 2011 the financial crisis), deep into theworst-offDespite being generation finan planting seeds.planting We can, andwill, deliver. stop excavating usandstart underneath theearth better” generations left us. previous what Let’s andNetflixZoom meetings binges to“build back Let’s moment between usethisextraordinary C-suite, we must to thechange be we see. wish to lead.capacity Onthefront linesandinthe hand, we have nochoice. some usbears Each of unless we act. for business. We accept isdoomed thatourplanet thing profitto right do; isnot just the it’sof good and partners. We know ahead thatputtingethics are they distant other; us, ourfriends, colleagues, In ourview, groups aren’t minority struggling the the better. We’re andable to live willing less. with THEY KNOW HOW TO LIVE WITHLESS: THEY AREUSED TO A PRECARIOUS WORLD: THEY CONTINUOUSLY SELF-EDUCATE: THEY INVEST IN THEIREMPLOYEES: THEY DONATE: As members of ageneration dealt adifficult As members of Millennials are ready to change theworld for
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hris kempczinski was enjoying a quiet moment at his home in Chicago last autumn when he received a call from Chair of the Board of McDonald’s Corporation, Rick CHernandez. Mr. Hernandez was calling to ask if Mr. Kempczinski would take over the helm of McDonald’s. The circumstances were unusual. Evidence had emerged that McDonald’s then-CEO, Steve Easterbrook, had violated company policy and undermined company values. After a thorough investigation, the Board took decisive action, termi- nating Mr. Easterbrook and naming a new leader. Mr. Kempczinski wasn’t new to the company but He took charge unlike previous chief executives, he hadn’t joined the of McDonald’s restaurant giant decades earlier, either. He’d come to amid an executive McDonald’s in 2015 after holding top management scandal and soon positions at Kraft Foods and PepsiCo. Joining as VP, found himself Global Strategy, Business Development and Innova- tion, it took him only a year and a half to earn pro- facing the most motion to President of McDonald’s USA, where he serious global was responsible for the operations of about 14,000 pandemic in a restaurants. In November 2019, Mr. Kempczinski century. He spoke became President and Chief Executive Officer of with Brunswick’s CHRISMcDonald’s, the world’s largest restaurant company. jayne rosefield. KEMPCZINSKI In just four years, he had clearly made a mark. Nothing about Mr. Kempczinski’s ascent sur- prised Greg Kelly, a Senior Partner at McKinsey & Company and a friend of Mr. Kempczinski’s dating back to university. During their undergraduate days at Duke, Mr. Kempczinski made no secret of admir- ing “Coach K,” aka Mike Krzyzewski, whose teams have won five national titles. Of Mr. Kempczinski,
26 brunswick review · issue 20 · 2020 Mr. Kelly says, “At college, we nicknamed him ‘The Even amid a crisis, growth and development, as well as his focus on Colonel’ given the similarity between his leadership Mr. Kempczinski is deter- building meaningful connections. Put simply, he is mined to stay focused qualities and those of Duke’s legendary basketball on the long term. a leader who at his core “cares a lot.” coach.” In the younger Mr. Kempczinski, Mr. Kelly Inside McDonald’s, Mr. Kempczinski wasted no also saw the “tremendous energy and resilience” time reminding employees, franchisees and suppli- that might have predicted his traveling the globe ers that their pride in McDonald’s was rooted in the not only as a rising leader in business but as a serial values on which the company was founded—and runner of marathons far and wide. reiterating his personal commitment to those val- KEMPCZINSKI Michael Hsu, Mr. Kempczinski’s former boss at ues. “In his first town hall as CEO, Chris was clear Kraft Foods, now Chairman and CEO of Kimberly- with his expectation that everyone personify the Clark, saw the way in which these character traits, values of the company,” recalls Kevin Ozan, CFO coupled with his deep understanding of consumer at McDonald’s. “In those 60 minutes, he reminded behavior, drove strong business performance. He us all of the responsibility we have to deliver on describes Mr. Kempczinski as a “business savant,” McDonald’s greater purpose.” someone who is able to “translate insight into It was a belief in Mr. Kempczinski that led Heidi action into results.” He also was struck by Mr. Capozzi, Chief People Officer, to join the com- Kempczinski’s genuine commitment to personal pany in April this year. “My very first impression of
brunswick review · issue 20 · 2020 27 CHRIS KEMPCZINSKI
Chris, and a belief I continue to hold today, is that Global Consumer Industries Practice, interviewed he is a true values-based leader. Integrity, and doing Mr. Kempczinski. what’s right, is at the core of who he is and how he thinks.” As you navigated a global pandemic and the Mr. Kempczinski had barely warmed his chair in rise of extreme social unrest during your first the job when the pandemic struck, closing restau- year as CEO of McDonald’s, did any particular rants around the world seemingly overnight. Mr. principle or philosophy guide you? Ozan reflected on his CEO’s approach: “From the It’s been important to me that we’re always con- outset of this pandemic, Chris’s priority has been necting the decisions that we make back to what we clear—protecting restaurant crew and custom- stand for as a company. Reminding people: Here ers above all else. The whole world was in crisis are the values that have defined McDonald’s over mode, but Chris’s calm demeanor and thoughtful the years and, based on those values, here’s why approach ensured that as a team we could imple- we’re going to make these decisions. ment the swiftest operational transformation in Any time you’re in a crisis, you can get a little bit our history to protect restaurant crew and custom- short-term focused. My guiding light has been to ers, while providing financial support to franchi- make sure we’re keeping the long-term in mind and sees to ensure they could focus on running their to ensure we’re as transparent and authentic with restaurants rather than worrying about what the people as possible. What do we know? What don’t future might hold.” we know? What are we uncertain about? What are After a dramatic drop in sales in the early days we certain of? It’s been helpful for us just to keep of COVID-19, McDonald’s in September reported people in the loop, informed, focused forward. its greatest same-store sales gain in nearly a decade But this year has definitely been a team effort, in the US market. And at the time of Mr. Kemp- and I’ve certainly been fortunate in that I have a czinski’s one-year anniversary in early November, very experienced team around me. McDonald’s stock had spiked even above the year- 65 YEARS earlier price when he took over as CEO. McDonald’s Are there particular mentors or heroes whose has navigated the challenges presented by COVID- IN BUSINESS, words or examples have helped guide you this 19, emerging with higher brand trust scores, higher SERVING past year? customer satisfaction scores, and higher restaurant There’s not one person. I’ve taken different lessons margins than the company had going in. 65 MILLION from all the leaders I’ve worked for and admired. During this first year, Mr. Kempczinski has PEOPLE A DAY My first mentor at P&G was a guy who defined proven agile in his role and is firmly focused on the what it means to be honest and upfront. In fol- path ahead, having refreshed the company’s values (GIVE OR TAKE). lowing that example, I’ve tried to not put a lot of over the summer and recently launching McDon- corporate spin and polish on stuff, but to just speak ald’s new growth strategy, Accelerating the Arches. in a pretty open, honest way about how I see things. As part of the strategy launch, Mr. Kempczinski Another influence was Nelson Mandela. I’m articulated a clear vision of where the company a product of the ’90s. I graduated from college in will make a greater impact in the world through its ’91—right around the time Nelson Mandela had renewed purpose to feed and foster communities. been released from prison, become President of the Said Mr. Kempczinski in the company’s recent ANC, and started negotiations to end apartheid. It Investor Update: “People expect more from corpo- would have been so easy for him to dwell on all the rations today—a truth that has taken on additional horrible things that had happened to him over the resonance during a year in which climate change, decades. But what so impressed me about him was social justice, diversity and inclusion have driven that he was firmly focused on the future, on mov- the public conversation …. Customers want to see ing forward. I’ve never forgotten that. that the McDonald’s they visit locally matches how Finally, I went to Duke and I’m a big Duke bas- we act globally. They want—and expect—McDon- ketball fan. I wouldn’t be a Duke fan if I didn’t take ald’s to be a force for good.” And under Mr. Kemp- some lessons from Coach K. His ability to forge a czinski’s leadership, McDonald’s is committed to sense of comradery among his players holds les- delivering on that expectation—being defined not sons for any leader. He builds great teams. just by what they do, but how they do it. In my experience, you piece together these les- In early November, Brunswick Partner Jayne sons from different leaders and ultimately they
Rosefield, head of the firm’s Chicago office and define your own leadership style. MCDONALD’S JERRITT FOR CLARK/GETTYPHOTOGRAPH: IMAGES
28 brunswick review · issue 20 · 2020 Have events or experiences of the last year in “I don’t think we did different things, we were getting pulled into lots of any way altered or broadened your perspective enough to embrace how efforts where either we didn’t have inherent credibil- we are a part of culture,” on leadership? Mr. Kempczinski said ity or our ability to make a difference was limited. Definitely one of the things that’s gained focus is the in explaining the launch I wanted to step back and just think about where need for communication. To lead, you have to be of the Travis Scott we could actually make a difference. And that out there talking a lot and, in some cases, saying the Meal, a wildly success- brought us back to the notion of community. When ful venture between same message over and over and over. You also have McDonald’s and the Ray Kroc structured McDonald’s as a franchise busi- to acknowledge there are things that we don’t know. celebrated rapper. ness, the founding idea was to have a franchisee who COVID’s a perfect example of that. Are we mak- lives in the community and who is going to be way ing the right trade-offs between keeping our res- better at managing the restaurant than some corpo- taurants open, keeping communities served, keep- rate stiff, thousands of miles away. ing employees employed—between all of that and Off of that founding idea of serving communi- keeping people safe? I hope so. And I feel good about ties, we know we can make a difference around jobs what we’ve done. But those are areas of uncertainty. and opportunity. We can make a difference around I don’t have all the answers, and if I pretended I did being there for communities in crisis, from Ronald have all the answers, people wouldn’t believe me. McDonald’s House Charities to natural disasters. That led to the feed and foster community idea, Amid all else that’s going on, you recently because I did feel like that’s a place that we have a launched a purpose to feed and foster communi- very credible ability to make a difference. ties? What does that mean exactly and how will your customers see this come to life? Your investments in Drive Thru and digital in Customers are seeking brands that reflect their val- restaurants have proven to be fortuitous, even ues ... and the line between the corporate brand and prescient, amid the pandemic. What are your the consumer-facing brand is blurring. In this cur- 2021 priorities for staying ahead and nimble? rent environment, all companies are being asked to We call them the three Ds: Drive Thru, delivery, digi- define their mission, their higher purpose. Because tal. And we’re definitely doubling down on those. we’re McDonald’s and our reach is so great, we’re I think everybody has recognized we’re going to
PHOTOGRAPH: JERRITT CLARK/GETTY IMAGES FOR MCDONALD’S JERRITT FOR CLARK/GETTYPHOTOGRAPH: IMAGES in so many different countries, we touch so many a world that’s going to be more contactless, that’s
brunswick review · issue 20 · 2020 29 CHRIS KEMPCZINSKI going to have more dine-away as opposed to dine-in. Looking at your recent marketing initiatives, We’re making sure that we’re continuing to offer a featuring cultural icons like Travis Scott and J better experience on these than anybody else. So, for Balvin, and the recent launch of Spicy Chicken example, with Drive Thru, the classic frustration for McNuggets, I have to wonder how a brand as the customer is: How long is it going to take? established as McDonald’s continually reimag- So, are there things we can do to speed up the ines marketing? Drive Thru? Yes. Plenty of things. Voice recognition I get asked sometimes, “What exactly do you do as could be one area to do that. Second, what if you’re CEO of McDonald’s?” It can seem as though the a loyal customer? Maybe there is a lane for our loyal system runs itself. So what do you do? My answer is: customers that allows them to go through in a faster ensuring the relevance of the brand. There’s noth- way. We’re looking to innovate and actually make ing more important to my job than making sure sure that we’re doing it better than anybody else. McDonald’s is as relevant 10 years from now as it is today. Given your particular focus on those factors, We make a significant investment each year in even before you became CEO, it’s almost as if you marketing. I didn’t think we were getting enough saw the pandemic coming. out of that investment. I didn’t think that we had We’ve been in the Drive Thru business for decades, contemporized our approach to marketing. I don’t so I don’t want to say that we had any foresight in think we did enough to embrace how we are a part that. We did recognize three or four years ago that of culture. The things you just referenced there are delivery was going to be a huge opportunity for us. about us getting more aggressive, getting more out of We have a big advantage with 40,000 restaurants. our investment and then embracing our role in cul- Seventy-five percent of the population across our “WHETHER ture. Sometimes, having the visibility of McDonald’s top markets live within three miles of a McDonald’s. can be a burden, can make for an easy target. But far We just have an incredible footprint that lends itself YOU’RE THE CEO more often, it’s a huge benefit because people just to delivery. The more delivery locations you have, OR YOU’RE love to talk about McDonald’s, and that’s something and each of our restaurants is a delivery location, the we should lean into. better you can make that experience. So, credit to the WORKING A FRY team for getting on that one early. STATION, IF YOU The prior CEO stepped down last year over a As for digital, I think everybody, not just in our compromise of company values, and this year the industry, recognizes that digital is transforming how FAIL TO LIVE UP company has faced accusations of racial discrim- consumers are interacting with brands, how they’re TO THE VALUES, ination and sexual harassment. When you took experiencing things. I think for us, to be honest, we on the role, quickly establishing values as a cen- just had to catch up. And I think we’re now at a place THEN YOU tral theme of your leadership, was there a sense where we’ve caught up. Now, we actually have to cre- CAN’T STAY IN that McDonald’s needed its values updated? ate some advantage there. I think it’s precisely because McDonald’s had a very THE SYSTEM.” strong core set of values that the issue with my pre- Given your franchise model, how do you ensure decessor was as traumatic for the company as it was. during COVID-19 that restaurants can survive When you had a leader that acted in a way that was the short term and be in a position of strength for incongruous with those values, it raised a question: the long term? Are we as good as we say we are? We were lucky in that McDonald’s franchisees came Early on, I wanted to put my fingerprints on what into the pandemic in a very strong position. In most was already a very strong set of values and make clear major markets, they were at or near record cash flow, that we are absolutely committed to them. This is which essentially is how much money they’re able to who we are. We did have a leader who didn’t act in take out of the business. accordance with our values, and you’ve got to hold When COVID-19 struck, the first thing that we everybody to the same account. Whether you’re the wanted to do was put some immediate liquidity into CEO or you’re working a fry station, if you fail to live the system. So, we put about $1 billion of liquidity up to the values, then you can’t stay in the system. I into the system. wanted to make that set of expectations very clear Right now, if you look at where our franchisees at the beginning of my tenure so that this was not a are, I feel very good about their health. We have a moment to reconsider what we stood for. Rather, this few specific issues here and there. But, broadly, our was a moment to double down on what we stand for system’s in great shape. and make it clear that it applies to all of us equally.
30 brunswick review · issue 20 · 2020 In July, in response to the killing of George As someone who eats at McDonald’s daily, what Floyd, McDonald’s posted a video titled, is your favorite regular item at HQ? “They were one of us.” How do you view the You’ve got to double-click one more—give me a responsibility of brands such as McDonald’s to day part. When you eat as much McDonald’s as I do, take a stand on social issues? you think in day parts. Breakfast? Definitely the Egg It all connects to what you stand for as a company. McMuffin with no Canadian Bacon. If it’s available, I What are your values? like a blueberry muffin with that. One of our values is that we open our doors to Pivot to lunch, I always get the fries. Not a day everyone. When you serve as many customers as goes by that I don’t have a small order of fries. I have we do, our customers are society. One of the things a rotation of lunch items. I’m a Filet-O-Fish-no- that has defined McDonald’s over the decades has tartar-double-ketchup guy. I like the Nuggets with been our emphasis on diversity, making sure we ketchup. Not any of the other sauces; just straight-up have a franchisee population that reflects the US ketchup. On occasion I will do a Quarter Pounder. population or the global population. Regular chicken nugget or spicy? When you’ve built your business model on I’ve always liked the regular. But I’m now a convert to diversity and providing opportunities for everyone, the spicy. I’m hoping it’s going to stick around. and suddenly a human rights issue comes into the public discussion, it would have been a huge miss “CUSTOMERS When you travel abroad, do you have any favorite for us to not put our voice out there. ARE SEEKING international menu items? When something in the public discourse is rel- When I travel abroad, I embrace the hospitality of evant to who we are as McDonald’s, and frankly BRANDS the franchisee that I’m visiting. They like to show me where we would be expected to say something, we THAT REFLECT the latest thing that they’ve got on the menu and I’ll should lend our voice. go with that. There’s a whole bunch of other areas that aren’t THEIR VALUES... If they don’t express a strong bias, I do the Quarter as relevant to us where we shouldn’t be lending our AND THE LINE Pounder because that’s a great product to calibrate voice. It goes back to credibility. Where do we have around the world. You know what a good Quarter credibility to speak and stand behind our values BETWEEN THE Pounder should taste like. Through trying that prod- and commitments? CORPORATE uct, you get a sense of how the kitchen’s running. Any franchisee reading this is going to make sure The McDonald’s brand is well known around the BRAND AND THE they suggest a new item because they don’t want to world. Everybody has a clear sense of it. Every- CONSUMER- be calibrated. (Laughs.) body recognizes the golden arches. And yet the What’s this we hear about changes to your iconic menu varies from culture to culture, place to FACING BRAND IS burgers? place. How does the brand remain so cohesive BLURRING.” The adjustments we’re making are a series of small while catering to local tastes? changes that add up to one big difference our cus- We use the expression—I’m sure other compa- tomers really notice. Essentially, it’s a new cooking nies use it as well—there’s freedom within the procedure in the restaurants that allows us to cook framework. a hotter, juicier burger every time. We also put the We have our core menu: hamburger, cheese- onions actually on the grill as opposed to putting burger, Big Mac, Quarter Pounder. If you have the the onions on at the dressing table. The onion fla- golden arches outside your door, you’re serving the vor gets sort of seared into the beef. It’s a great flavor core menu. improvement on our product. But then you do have the flexibility locally to add It’s kind of amazing. After 65 years of doing this, items that you think appeal to local tastes. That’s we still find ways to actually make the product just why in China, you find things like bubble tea, a little bit better. We’re rolling out this new cooking which has little tapioca droplets in it. In India, you procedure around the world. Where we’ve launched have the tikka masala burger. it, in markets like Canada and Australia, we’ve seen Freedom within the framework gets back to great success with meaningful lifts in both sales and this point of how the brand stays relevant. Food is traffic, and we’re excited about what it can do in the such a local experience that you have to give people Brunswick Partner jayne rest of the world as well. some latitude to adapt to local tastes. I think we’ve rosefield is head of the firm’s Chicago office done a pretty good job over the years of striking and Global Consumer Now, you’ve got me hungry. that balance. Industries Practice. You’re going to love those grilled onions. u brunswick review · issue 20 · 2020 31 Inside IBM’S ILLUSTRATION: NIGEL BUCHANAN NIGEL ILLUSTRATION: s ibm’s chief information officer, fletcher previn How did the crisis unfold for you? leads a global team of over 12,000. Their mission is to pri- IBM is in the business of running mission critical workloads, so oritize user experience and provide secure, global IT for we regularly simulate and model things like geopolitical instabil- around 350,000 IBM employees. Together they manage ity, earthquakes and fires. This was a new model for us: What if the AIBM’s network infrastructure, cybersecurity, over 500 data whole planet has a problem at the same time? centers, 480,000 laptops, 220,000 mobile devices and an annual Sometimes it pays to be paranoid. Early January, watching what budget of $2.7 billion. They are responsible for the IT across IBM’s was happening in Wuhan, we thought we needed to be prepared business units, from outsourcing to quantum computing, as well as to have the capability for everyone to work remotely. There is a in every aspect of IBM’s operations, from supply chain to market- lead time to ordering and installing the hardware and capacity for ing, making IBM’s IT department one of the biggest tech operations remote access, and they were already becoming difficult to get in outside the US federal government. various parts of the world. Fletcher joined IBM in 2006 and has held several key roles in sales This crisis has highlighted how delicate the worldwide supply and technology. His experience spans reinventing desktop com- chain is. This just-in-time supply chain model, where you’re not puting environments (Windows, Mac, Linux), industry-leading keeping big inventories of things, means things can get disrupted in solutions for sellers and mobility programs, transforming IT infra- a relatively short amount of time. structure, delivering productivity tools and agile transformation. We started to see lead times for manufacturing tick up. Laptops Prior to joining IBM, he managed the Enterprise Systems Group at going to 8-10 weeks, routers, firewalls, network equipment became Walmart.com. Fletcher is a graduate of Connecticut College with a supply constrained. And just as we were having challenges in sourc- Inside degree in Political Science. ing equipment, so were a lot of our clients. IBM’S COVID-19In early March, we realized this wasn’t a contingency plan any- more. The genie was out of the bottle. We had to pressure test the IT to make sure everyone could do their jobs remotely. That meant ensuring the systems were running and people could con- RESPONSE nect to them, but also that they knew how to work this way. The finance department, for example, had never closed a quarter work- ing remotely. So we had days where we had particular divisions try CIO fletcher previn and his team working from home to make sure everything worked. “compressed 10 years of strategy IBM mandated work from home in the US on March 20 and in into 10 weeks of execution,” reports India on March 24.
philip delves broughton. And then? Phase one was just about the technology—quickly meeting the need. How do we get all the capacity up and running from a techni- cal perspective so everyone can work from home? Just in the last five years, we’ve been able to assume that every- one has a laptop, a camera and high-speed internet at home. We’ve wrapped collaboration and productivity tools around these capa- bilities. It wasn’t long ago that we’d just talk on the phone. That’s a much “less than” experience. Videoconferencing has been very
ILLUSTRATION: NIGEL BUCHANAN NIGEL ILLUSTRATION: important for working from home.
brunswick review · issue 20 · 2020 33 IBM’S FLETCHER PREVIN
I always advise CIOs to implement tools that embrace modern big enterprise. That’s the nature of the beast. New people come to ways of work and are agile. Do the tools make it easy to have a meet- work thinking “the technology should be better than in my personal ing? Share files? File an expense report? Onboard an employee? life.” And often it isn’t. That goes for all technologies that enable remote work. So when did it become OK to live like the Jetsons at home and Phase two was the cybersecurity concern. Cyber is an enduring like the Flintstones at work? If you have this kind of disparity in the challenge and a moving goalpost. Now you’ve extended the attack experience, the short answer is, it’s not OK and people will make surface of your enterprise to everybody’s homes. decisions about where they want to work based on that difference. You’ve got people’s children using smartphones and laptops, Today’s best user experience is tomorrow’s minimum expecta- using social media, streaming media. Having a different cyber strat- tion. IT departments have to focus on that experience. Can you egy became very important for us so we could have visibility into onboard new hires and off-board those departing without coming what’s going on in our enterprise, extending out into the remote into the office? Can you provision people with tools to do their jobs endpoints in people’s homes. Specific technical things became seamlessly? Quality of life issues sound pedestrian, but the state of important to us, like securing those endpoints. IT is a daily reflection of what the company thinks about its people. You read about a lot of environments where they sent people The culture of a place is a function of how your work gets done and home and their VPN was then overwhelmed by people watching your culture is the only unique thing you have. streaming media and movies. That’s an artifact of having a VPN strategy which requires you to haul all the traffic back in to inspect What has been the most significant change for your team? it. We put in place split-tunnel VPN, which meant we could see From an IT perspective, this has compressed 10 years of strategy what we needed to. into 10 weeks of execution. Phase three was culture. There’s a big difference between work- Before the pandemic, IT departments were broadly all on the ing from home and being under house arrest in same journey. They wanted the benefits of the a pandemic. Over time, how do we maintain the “WHEN DID IT cloud, and to embrace software as a delivery model health and well-being of our workers and a high- that gives them scale and security. They wanted performance culture? BECOME OK TO LIVE to get out of legacy data center operations. They We’re benefiting in the short term from the fact LIKE THE JETSONS needed to provide their employees with collabo- that most people know each other already and ration tools to allow them to be productive from have some foundational relationship, having been AT HOME AND anywhere, and to have a cyber strategy that per- together in person. It’s like your relatives: You LIKE THE FLINTSTONES mits that kind of flexibility while still being secure. don’t stop being close to your parents or grand- In a large enterprise, everything is a scale prob- parents just because you no longer live together. AT WORK?” lem. You’re dealing sometimes in highly regu- But as new people come into the organization, lated spaces, with different sets of privacy con- you have this concept of deposits and withdrawals on the relation- cerns around the globe, different data residency obligations that ship bank at work. Work calls are the withdrawals. Deposits come in have to be met. People are working through these challenges on the form of going to lunch together, talking to somebody, inquiring various timelines. about what’s going on in their personal life. Those things are more Many people thought they had more time to get there. Suddenly, difficult but not impossible to recreate in a virtual work environ- this all became critical—a classic case of trying to change the tires ment. They require deliberate effort. If your only interactions are on the car while it’s going 60 miles an hour. IBM’s decision to con- work calls, it doesn’t leave a lot of room for making friends. solidate IT into a single shared service was a force multiplier in being In the office, we would have gone to dinner together. So, now we able to effect change at scale. We were empowered to make decisions. send food to people’s homes and have dinner together through vid- Before COVID-19, only 25 percent of IBM’s 350,000 plus people eoconferencing. I sent a home office enablement kit to my team—a were not in a traditional office. Our strategy had been to bring peo- nameplate, a coffee mug, a stress ball—saying, hey, we’re probably ple back into the office. So this was a very rapid change in a matter going to be in this condition for longer than any of us would have of weeks to get to 98 percent of people working remotely. anticipated, so here’s a little something to make your home office As it pertains to cyber, you’ve got three broad areas: technology, more office-like. Little gestures of kindness go a long way in times policy and education. The technology is pretty straightforward. like this. Here are the capabilities. Here are the solutions. The education is pretty straightforward. We’ll be transparent about what we will and You’ve said that in terms of technology many people these days won’t do and under what circumstances. experience the “Jetsons” at home and “Flintstones” at work. It tends to be the policy that causes the most churn in an enter- What did you mean? prise: Who’s entitled to what, what will we pay for, what will we not New people coming into work have a very different set of expec- pay for, what do we want to permit from a policy perspective? When tations from people 10, five or even three years ago. When I first you’re under duress, it motivates you to find answers to these ques- started working, I accepted that things are more complicated in a tions and compress your existing plans.
34 brunswick review · issue 20 · 2020 Any pleasant surprises? If you or I were going to the office to sit six feet apart and shout We were working 24/7 for weeks, a lot of long nights. But the end through masks, that’s probably best done on Webex. But there result was the business didn’t experience any disruption. That has are other jobs that really do have to be done in an office, whether been a nice surprise. that’s manufacturing, supply chain management or in our case We survey our people to ask them how they feel about working scientists doing semiconductor design, who require specialized remotely. How supported have you felt through this process? How lab equipment. is your mental well-being? How stressed do you feel? Are you proud You have a sort of budget of risk. With more people being to be working here? brought back into the office, there’s an increased risk footprint, and Overwhelmingly, the answers have been positive. Ninety-six you want to save that risk for things where there’s a huge benefit to percent feel this has been well handled. They were able to continue being physically in one place. doing their jobs without disruption. They have the hardware and software and IT support they need. How do you stay sane? While we’re seeing a little bit of an elevated stress level, this stems I shortened all my 30-minute or one-hour meetings to 20 or 50 from general concerns about the health and well-being of people’s minutes. And turned all my one-on-ones into virtual walking meet- families and the news. ings. I get on the treadmill and tell the other person if you want to We also look closely at metrics around productivity, emails go out and take a walk and not be on video, let’s do that. being sent, meetings being had, sales cadence activity, number of Every week, we have a virtual happy hour where we can talk as software releases, Slack activity—which shows that, if anything, friends. Originally it was at 5:00pm on Friday. But we found it’s not people are more productive working remotely. They don’t have great for people to roll right from a work meeting to happy hour. the commute time. They are having up to two hours more per day They are still in work mode. So now we have a buffer of at least an of meetings. hour between the end of work and the start of “YOU’RE TRYING happy hour. What did you not anticipate? It’s proven to be a more complex problem to TO CHANGE What advice do you have for CEOs about solve than we realized going into it in March. THE TIRES ON THE remote work? Now the question is what do things look like First, start to position it as work from anywhere, coming out of it? How do we emerge on a stron- CAR WHILE IT’S not work from home. It gives you a lot more lati- ger footing? GOING 60 MILES tude to avoid a class system where some people There is so much complexity around safely have to come back into the office and others don’t. returning people to an office, especially in a AN HOUR.” You want a progressive work environment where metropolitan area like NYC. There are concerns people can get their jobs done from anywhere, around mass transit, then you need to have temperature screen- whether that’s at a client site, or from home or on the road. ing, PPE distribution, doors need to be propped open. The flow Second, actively measure the health and well-being of your work- of people needs to go in one direction so they aren’t crisscrossing force through direct and indirect measures. Survey them, but also when they go to get a drink. look at the productivity markers to know when things start to dete- To whom does it fall when someone is not being compliant with riorate and where you need to put energy. the guidelines? Is it a human resources issues, a facilities issues, the Third, put a new social contract in place. People who used to person’s manager’s issue? Those are the sort of scenarios we haven’t work remotely sometimes felt marginalized compared to people in really had to pressure test, and now we’re going to have to. the office. This has been a great equalizer. You no longer have two meetings going on, where people in a conference room are laugh- Will we ever go back to the office? ing and whispering while people calling in from outside can’t see Our talent strategy isn’t changing, our jobs aren’t changing, but the what’s happening. role of the office is changing. We don’t know exactly how, but we’re People don’t have to explain any more why they’re not wearing a making some assumptions like we’ll need less real estate because jacket or tie, why there’s a dog in the background, or a baby crying. some amount of remote work will persist. If the situation at home means that you can’t be on video, that’s OK. For a lot of people the office will no longer be a place you go These are things that just happen in life. every single day to do your job. People will occasionally gather for Now everyone’s home has been turned into an office, the new some purpose. That means fewer, smaller, remote satellite offices, social contract accepts that all of this is OK. It is more accommo- replaced by flexible hubs that can be easily reconfigured. dating of people’s lives. u
We are learning what types of roles are enhanced or diminished philip delves broughton is a writer and a Senior Consultant at by working remotely. After the pandemic ends, we will have a better Brunswick, based in New York. He was previously a Senior Advisor to the Executive Chairman of Banco Santander. His books, including Ahead understanding of which jobs benefit from being in the office and of the Curve, have appeared on The New York Times and The Wall Street which jobs work better remotely. Journal bestseller lists. brunswick review · issue 20 · 2020 35 Deployment: WFH
Each workday, a member of our vacated Washington office A retired Four- ard to believe we were all last in the writes a letter to colleagues working from home, a tradition Star Admiral, office on Thursday, 12 March—six weeks ago. that has spread to several Brunswick offices. These notes accustomed to By now, we’ve all created a new normal often combine inspiration, philosophy and humor with for ourselves—a routine that tries to account favorite books, recipes and TV shows. Reprinted here is a long confine- for eating, living, loving, working, exercis- contribution, penned in April, from a colleague for whom H ments at sea, ing, worshipping and everything else we do in life— lockdown once meant month after month in a submarine. offered counsel In a 37-year career with the US Navy, Mike Rogers rose but all in one place. That one fixed location—our to the rank of Four-Star Admiral, ultimately serving as in April on home—was never built or designed for all of us Commander of the US Cyber Command, leading teams how to navigate together all of the time. that stopped the most destructive cybercriminals in the the tough For me that means taking on new chores around world, from North Korean hackers to Russian saboteurs. times ahead. the house and spending more time with my wife and He served as Director of the National Security Agency, the children than I have in 35 years of marriage or 32 largest US intelligence agency, and as Chief of the Central years as a father. While that has been challenging at Security Service. Now a Senior Advisor in Brunswick’s Washington, DC office, Admiral Rogers offers counsel on times, it has also been very fulfilling. Our two adult cyber security, privacy, geopolitics, technology, intelligence, sons opted to come home and quarantine with us crisis management and the challenges of leading large rather than lock down in one-bedroom apartments
organizations in a democratic society in the digital age. in NYC and Chicago. For the first time in almost 15 NEUBECKER ROBERT ILLUSTRATION:
36 brunswick review · issue 20 · 2020 years we are an in-residence family again, all getting and stress to keep us focused and on our guard. But along well. Their presence makes me happy and my that becomes tougher as anxiety, boredom and frus- wife and I, after a marriage spent more apart than tration set in. And that is where we are now in the together, are finding that we actually enjoy each oth- COVID-19 journey. You see it in the increased pro- er’s company. WE ARE NOW tests about the lockdowns and in unsafe practices For me, a lifetime of extended deployments away by individuals with respect to social distancing and from home in the confined spaces of a destroyer, IN THE TOUGHEST isolation. So many times in my uniformed career submarine or aircraft carrier for months at a time is PART OF I watched organizations and teams come together finally paying off. Even conservative projections for in crisis and perform magnificently initially and yet the duration of this lockdown pale next to 110 con- THIS CRISIS— find it very difficult to continue to do so over time. secutive days at sea on combat deployment. I find MAINTAINING We each need to sustain a healthy lifestyle in this this situation very much in line with that set of expe- situation and to continue to make smart choices riences—but with the good fortune to do it with OUR FOCUS, and not lose our focus because we are bored or frus- family, alcohol, cable and the internet! I can even get DISCIPLINE AND trated with the current situation, which is likely to in a car and go to a grocery store. last for some unknown period of time versus end- We are all going through this new journey with a WELL-BEING IN ing next week. high degree of uncertainty (how long will it last?) and THE FACE OF HIGH The second observation is that crisis tends to perhaps some level of anxiety (how bad will things bring out true character and commitment—in indi- get—for us as individuals, for Brunswick and for the UNCERTAINTY, viduals and in organizations. Character is reflected broader world we are a part of?). We worry about INCREASING in the choices we make and the way we treat each our health and the health of those we love, the well- other. Commitment is reflected in the fact that we being of parents and children, our own financial and BOREDOM AND are there for each other and for our work. I want to mental well-being if this gets even worse and what CONTINUAL thank all of you as individuals and our company the future holds—for ourselves, our families, our leadership for the character and commitment I have company and for our nation and the broader world. FRUSTRATION. seen on display over the past six weeks. I hope you Such concerns are normal, healthy and appropriate. take pride in being part of a company that has char- Pondering them doesn’t mean something is wrong acter and is committed—to us as individuals and to with you. Just try to maintain perspective. the work. And that you work with individuals who I wanted to share two observations and one have displayed high character and commitment in request with you. They are shaped in no small part the midst of all this. Trust me, I have been part of by having spent almost four decades in an organi- or seen teams where that was not the case and it is zation (the US Navy and, by extension, the broader something very sad and frustrating to be a part of. Department of Defense) that focused first and fore- My request is that we all look out for people hav- most on preparedness for, and performance in, cri- ing challenges dealing with this situation—particu- sis—crises that lasted for days, weeks and months larly those alone or in poor health. I draw strength (sadly even years in the case of Iraq and Afghanistan) from my family and my friends and each of us needs without interruption or let up. That provided peri- a source of strength in these tough times. Going it ods of extreme excitement but even longer periods alone is not a recipe for success in extended periods of boredom. Days and weeks spent at a high level of of stress, uncertainty or anxiety. Let’s all look for and readiness for action but also, if truth be told, often reach out to those needing help in finding or sus- just spent waiting—waiting for something to hap- taining that strength in the face of this uncertainty. pen or someone (us, or the enemy) to just make a In closing, stay healthy, well in mind and body, decision and do something. I learned a lot from that and positive in outlook. And remember, the one set of experiences; about the nature of crisis and how thing we do know for sure in the face of all this individuals, teams and organizations deal with cri- uncertainty is that COVID-19 and the physical iso- sis and how to lead in crisis—particularly crises of lation we find ourselves in now will not last forever. extended duration. “Crisis tends to bring One day in the not too distant future we will find out true character,” Observation number one is that we are now in says Brunswick Senior ourselves once again talking across cubicles, speak- the toughest part of this crisis—maintaining our Advisor Mike Rogers, ing so loudly on cell phones that much of the whole focus, discipline and well-being in the face of high a retired Four Star office can hear the conversation, working collabora- Admiral. “Character is uncertainty, increasing boredom and continual reflected in the choices tively in conference rooms, and laughing and eating frustration. In the beginning of a crisis there is nor- we make and the way together in the break room. That will be a great day
ILLUSTRATION: ROBERT NEUBECKER ROBERT ILLUSTRATION: mally a certain amount of adrenaline, excitement we treat each other.” for each of us! u
brunswick review · issue 20 · 2020 37 etween 2009 and 2017, more than $424 Attendees of The fallout from that inequality could be seen in billion in total tech venture capital was accelerateHER’s 2019 everything from new product development—like Forum in London. The raised—and 0.0006 percent of it went to event was designed the “holistic” health app that made no mention of startups led by Black women, according to “bring together female menstruation—to inherently biased algorithms, to research by Project Diane. In a sepa- leaders, senior investors like an infamous AI recruitment tool which pri- B and select rising stars Accelerating rate study, analysts at Morgan Stanley dubbed the to drive meaningful oritized male applicants. Tech investors and tech- ingrained, systemic bias by investors toward multi- conversations about the focused venture capitalists are similarly lopsided. cultural and women-owned businesses “a trillion- state of technology.” In Europe last year, all-male-founded tech startups dollar blind spot.” Gender inequality in the tech received 92 percent of investments across the conti- world—most forcefully directed toward women of nent, according to a report by Atomico. Women in Tech color—is one of the many inequalities COVID-19 Also driving this disparity is the representation threatens to not only exacerbate, but also to poten- of women in the venture capital workforce—twice tially relegate in importance as companies narrow as many men work in VC as women, according to their focus to survival. research by Diversity VC. Another is the limited In a report released prior to the outbreak, PwC opportunity to invest in women-led teams. In the described gender diversity in tech as being “a crisis.” UK, only 5 percent of pitch decks that venture capi- Gendered recruitment practices, toxic “bro culture” tal firms consider come from all-female-founded and a persistent pay-gap had led women to comprise teams (and only 20 percent come from mixed gen- less than one-third of the workforce at leading tech der teams).
firms and only 12 percent of the industry’s leaders. “If you didn’t have any access to funding or PHOTOGRAPH: COURTESY OF ACCELERATEHER
38 brunswick review · issue 20 · 2020 Google, Microsoft, Henkel X Ventures and Intel Capital among its partners, is focused on driving systemic change across the industry, from educating leaders on the barriers women face to redistribut- ing more capital to women. Its different approaches and tactics are unified in their desire to create space for women-led innovation, to give life to ideas that may otherwise struggle to survive, and to connect women entrepreneurs to platforms that help them scale their businesses. Progress in gender diversity in tech has been agonizingly slow, yet prior to the pandemic there was encouraging momentum. The industry had seen a rise of specialist backers as well as a growth in women-founded businesses valued at $1 billion Will COVID-19 or greater. At the 2020 World Economic Forum, put gender Goldman Sachs, the US’s largest deal underwriter, diversity in the announced a new diversity requirement for the tech world on the IPOs it would work on. “We’re not going to take a back burner—or company public unless there’s at least one diverse provide a crucial board candidate, with a focus on women,” Goldman jolt to eradicate Sachs CEO David Solomon told CNBC. dated policies COVID-19 risks halting that momentum—or and thinking? perhaps breathing new life into it. The pandemic has seen flexible work arrangements, so crucial for laura stebbing, working mothers, become more widespread and Co-CEO of accel- hinted at how our working lives can be reimagined. erateHER, talks Meanwhile the global protests against police bru- to Brunswick’s tality and racial inequality have sparked an intense meaghan focus on corporate actions on diversity and inclu- ramsey and inez sion, particularly the gap between business’s rheto- bartram vilar. ric and reality. In a recent conversation with Brunswick’s Meaghan Ramsey and Inez Bartram Vilar, Ms. Steb- bing shared the structural shifts the industry needs for meaningful change, and explained how her orga- nization continues to connect people and ideas in a Accelerating time of quarantine.
Part of your work was bringing people together, creating new connections—is that still possible with COVID-19? Women in Tech We’ve spent a lot of time thinking about how we can make sure people who wouldn’t usually be “in the networks before, how can you get access now?” says room” get in the room. And we can still do that—we Laura Stebbing, co-CEO of accelerateHER. “How can help bring world-leading founders and CEOs can you make yourself heard? A big part of what we straight into people’s homes virtually. We’ve done can do is create those connections.” a session on innovating in crisis with the former Launched in 2016 by the team behind the Found- CMO of GE; we’ve held sessions on fundraising with ers Forum, accelerateHER brings tech leaders, Dame Natalie Massenet DBE of Imaginary Ven- entrepreneurs, companies and investors together tures, Sonali De Rycker of Accel and Danny Rimer to address the under-representation of women OBE of Index Ventures. What’s great is that we’ve in technology. The organization, which counts been able to hold all these sessions as open meetings
brunswick review · issue 20 · 2020 39 LAURA STEBBING on Zoom, so it really does feel like a community of history. The leaders that are motivated by the coming together. On June 12, accelerateHER LIVE moral imperative of equality are typically searching will feature talks from Hillary Rodham Clinton and for avenues to give teeth to their values. We have yet Cherie Blair CBE QC, who are being interviewed to come across a leader in the industry who denies by Dame Vivian Hunt DBE as part of London Tech that equality is a moral imperative; however, there Week. We’ll also have sessions on Black Lives Mat- are plenty of leaders who acknowledge the prob- ter—leading with action in tech, mental health, lem yet fail to appreciate its impact, or the role they cyber security, pivoting and leading with a gender could play. lens in crisis. We’re still very much sharing ideas and Second, the financial value of gender parity. bringing people together. Startups founded and co-founded by women are significantly better financial investments, accord- Has COVID-19 disproportionately affected ing to research by Boston Consulting Group and women in tech? MassChallenge. They found that “for every dollar of As it’s doing in public health and economic oppor- funding, these [women-led] startups generated 78 tunity, COVID-19 is exacerbating all the inequali- cents, while male-founded startups generated less ties that already existed in tech. The number one than half that—just 31 cents.” issue women face is access to capital. They often Women-led companies also tend to be more lack the network that opens the door to investment capital efficient and achieve a lot more with much in the first place. They then have to navigate the "TOO MANY leaner resources—bringing in 20 percent more rev- multitude of layered biases that affect investment enue with 50 percent less money invested, according decision-making: from affinity bias (sharpened by INVESTMENT to research from the Kauffman Foundation. the small number of women VCs), to the differ- DECISIONS ARE ent questions that are asked of women (VCs tend Is it even possible to overcome biases so to ask men questions about the potential for gains BASED ON ingrained that we’re seldom aware of them? and women about the potential for losses), to male A GUT FEEL, It’s hard to change people, but we can change pro- investors being uncomfortable funding things they cesses and systems. And the tech industry needs don’t use, understand or personally value. WHICH, wholesale structural change, from hiring and board ThirdLove Founder Heidi Zak has said of pitch- AT THE END OF representation to capital flows. ing to male investors: “They invest in incredibly But we should be hopeful. There are many complex and intricate technology, but I lose them THE DAY, IS impressive behavioral design tools popping up to when I say bra.” BIASED DECISION- help curb biased decision-making and behaviors. Those challenges still very much exist—and then Awareness of your unconscious biases is an impor- you add new ones on top of those. Helen Lewis MAKING." tant first step. But as anyone who’s made a New wrote a terrific piece for The Atlantic called “The LAURA STEBBING Years’ resolution knows, there’s an intention-action Co-CEO accelerateHER Coronavirus Is a Disaster for Feminism.” It came gap. We need to make it easier for people—and out in mid-March, when a lot people were recycling businesses—to live up to their virtuous intentions. those anecdotes about Shakespeare and Newton Whether that’s using tools to remove gendered getting some of their best work done in isolation. language in job descriptions, implementing hiring And Helen Lewis’ point was: Those men didn’t tools like Applied, or completely changing the way have childcare responsibilities and housework. And we do performance reviews. we’ve since seen the many studies highlighting how Setting targets for diversity and inclusion, and women—in all industries—have disproportionately measuring against them just as you would with taken on home schooling, childcare and cooking. any other business-success metric, is critical. These shifts in daily life are compounding the exist- Establish data baselines, as well as regular intervals ing issues of fundraising and access to networks. for collecting and reviewing data, then use these figures to drive smarter business decision How hard is it to get the mostly-male industry to making. Investing in tools and resources to extend pay attention to a problem that isn’t “new”? the employee tenure of women in your business— We have found that most leaders, male or other- prevent them dropping off after periods of absence wise, are motivated by one of two arguments, and and encourage them to return to work—will often both. reduce the resources required for searching, hiring, First, gender equality is a social and moral imper- training and replacing staff that leave due to inad- ative—essentially, the desire to be on the right side equate support.
40 brunswick review · issue 20 · 2020 In VC and investment decisions, it’s about inten- Are you optimistic that the COVID-19 pandemic tionally widening your network to diversify your will inspire that sort of re-thinking—that it will be deal flow, making sure your LPs and your team a “great leveler”? look like the people you want to attract and fund, We know that one of the single biggest things we setting targets and, most importantly, focusing can do for women in the workplace is normalizing on data. Too many investment decisions are based flexible working, and of course that’s now happened on a gut feel, which, at the end of the day, is biased for a lot of women in office roles. We have lots of decision-making. CEOs telling us they never thought this kind of flex- ibility was possible before, and now they’re realizing What’s one concrete action leaders in business WOMEN-LED it is. That’s promising. could take right now? COMPANIES But we need to make sure that we fundamentally I’ll give you two. change the rules of work to make them work for First, put your money where your mouth is and BRING IN women. It’s great that women can work from home, invest in women. Evaluate your procurement pro- but it’s not necessarily a solution if they still aren’t cesses to establish a baseline dataset on how your in the key meetings, if they’re burdened with caring company brings in suppliers. Stipulating that even responsibilities, if they’re being left behind. 10 percent of your company’s suppliers must be For leaders, it’s about looking at the future of women-founded businesses or adhere to diversity work, not focusing on simple technological quick- practices your company values (a gender-equal fixes. And, crucially, as leaders look at the future, board, for example) could have an immense impact. that they do so through a gender lens. How will A number of leading companies have stepped up, 20 these decisions affect women? Are women being making financial commitments to support women PERCENT included in this conversation? entrepreneurs along these lines, including Walmart MORE REVENUE and Microsoft. What about investors—what’s one thing they Secondly, work from the inside out to equalize WITH 50 can do immediately? parental leave in your organization. Normalize men PERCENT LESS Revise your portfolio targets. Make the bold com- taking just as much time off as women, and stop mitment that 50 percent of your firm’s venture calling it maternity leave. A 2018 Harvard Business INVESTMENT, capital investments must be made in women Review article cites the sliding scale of issues new ACCORDING founders, or founding teams that include women. mothers in high-income countries encounter the Set targets for one, three, five and 10 years to create longer they are away from paid work: Their prob- TO THE structure and reinforce accountability for deliver- ability of promotion decreases; they are less likely to KAUFFMAN ing them. move into management or receive a pay raise once Also, look at cap tables. Research conducted by their leave is over. New mothers are also at greater FOUNDATION. #Angels, an investment collective of early Twit- risk of being fired or demoted. ter employees, found that of the 6,000 companies Women who take longer leave are often unfairly they analyzed (with a combined total of nearly judged to be less committed to their jobs than those $45 billion in equity value), women made up 33 that choose not to have children or take less time percent of the combined founder and employee away from the workplace when they do. This is at workforce but held just 9 percent of the equity odds with a key motivation for parental leave leg- value. Women are largely removed from the wealth islation: enabling women to pursue motherhood creation the industry boasts. This has a profound without sacrifice to their career success. impact on the amount of capital a woman walks The Institute of Fiscal Studies estimates that by away with at exit, limiting her ability to fund the the time a woman’s first child is 12 years old, her next generation of innovative new ideas, or indeed hourly pay rate is 33 percent less than that of a man start a new company. Not only do diverse found- with the same experience. Extrapolate that impact ing teams matter, but so does the composition of meaghan ramsey is a for additional children and consider that setback their share of the business. This single action could Partner in Brunswick’s in the context of a childcare system that is prohibi- Business & Society prac- be transformational. tively expensive for many families and a job market tice. She previously led And be honest when you fail, ask why an initiative where part-time work is hard to come by or under- the global social impact hasn’t worked and consult the data. Look beyond work of the Dove brand. valued. The combined lack of incentive to return to your own footprint. Finding ways to influence your inez bartram vilar is the workforce after leave means employers are miss- an Account Director. Both broader ecosystem could help accelerate the deliv- ing out on a wealth of talent. are based in London. ery of your own gender diversity goals. u brunswick review · issue 20 · 2020 41 42 SUCCESS Silicon Valley’sSilicon first African American female CEOs. She spoke withthebook, herReview new about
the Business Roundtable’sboardroom, andwhy the effectsinside she “detests” work-lifebalance. shellye archambeau on Your Own Termson Your P professional, her her malecolleagues called had one of “sweetpea.” When itcame organized by Stanford University, Ms. Archambeau remembered how asayoung college toduring aCEOinSilicon Valley by 40. In discussion arecent virtual atIBM fromthrough thenotoriously male-dominated asecretary tech industry: ate Success on Your Terms Own publishedUnapologeticallybeau Ambitious: Take Risks, andCre- Break Barriers, women inworkplaces worldwide. talkedbeing over by aman—wasfamiliarto possibly amuch larger audience: speaking.” moment That waswatched by people; 58million thatexperience— rupted, to Senator turned her opponent Harris andsaid, “Mr. Vice President, I’m from either party tofrom on appear a presidential either party ticket. As intershe was being deliveredhoodies—was by Senator Kamala Harris, thefirst color woman of debate—ortial certainlytheonly one to since on appear T-shirts, and mugs themosterhaps memorable linefrom therecent presiden usvice sits onfour includingsits boards Verizon’s andNordstrom’s, andwasoneof , which color recounts as awoman her of journey • The day The before thedebate, Shellye Archam br unswick unswick review - - -
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PHOTOGRAPH: ODIWAMS to have afocalpoint. thatyouthe things you is when learn andspins, do turns you have tomore figure important out your focus. you’re If a dancer, one of which, let’s that’s just put everything happening aschaos, it’s even Not atall. anything, chaos If Ithink when ishappening around you, The pandemic hasn’t shiftedyour stance? I totally don’t agree. let go of ourplans.tance—to hence thecallsto cultivate some form of surrender, accep thinking of thefuture leaves alot of people anxious or worried, Be intentional. Plan.Make choices That message comes through sopowerfully inthebook: waslife happened.pened Iwouldwhere be. Ithought What happened?” And hap what 30s, intheir mid-40s, intheir 50s, early andthey’re like, isn’t“This do. I’ve Because just seen somany wake people upintheir late you’re howcan impact life happens if intentional you aboutwhat they’retry in, they’re whether having children … where they’re going to live, be, will theindus their life partner who betweenpens 25and 35: In thatone decade choose mostpeople youron the rest life, of not just your career. Just hap atwhat look youwhen make so many decisions that have an outsized influence it,figure outof all you know, intheir 20sand30s.typically That’s Yes, to reach to theyoung professional Iwastrying istrying who Was thatthereader you wrote young thisfor: professionals? Ambitious was hewished book he’d “the read inhistwenties.” Former CEO Google Eric Schmidt said Review theday after Unapologetically Ambitious’ official publication. Canada andCapital Markets of Bank Group. the Shespoke with Okta, andRoper Technologies, to asanadvisor andserves theRoyal it.found to time write Shesitson theboards of Verizon, Nordstrom, ers believe inyou, who findaway you will to live thelife you want.” to define with oth yourself, andalign believeyourself to in yourself you allowIf life’s injustices to define you,will. you they choose But if “Don’t blame yourself, anddon’t waste your blaming others. energy you, but you must itharden notlet you,” Ms. Archambeau writes. against.discriminated “It isnotyour are faultthatthings harder for directly and which speak many tomarginalized being thosestill of name isShellye.” the eye,echoedSenator that afirmness then saidwith Harris’: “My toher turn speak, Ms. Archambeau paused, looked her colleague in brunswick review THAT YOU And Iwanted to share my experiences, andmy belief, that you Among the book’s remarkable features is that Ms. Archambeau Ms. Archambeau’s life lessons, life experiences with marries book “RACE WAS SOTABOO INTHEUNITEDSTATES THAT ITWASN’T EVEN ONEOFTHETHREETHINGS TALKDIDN’T ABOUTINPOLITECOMPANY: RELIGION,SEXANDPOLITICS. RACE WASN’T EVEN ON THELIST, ITWAS SOUNDERGROUND. OK?
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- - - - that you are itissohard. failingbecause It’s hard for everyone. people. you’re So inreally company. good It’s notyou. Don’t think ize asyou’re andyou’re struggling findingithard thatsoare alot of easy.”all It’s not. It’s hard. But you know Life ishard. what? real So Look, it’s hard. Ihave wandthatsays, nomagic “You do thisandit’s and ithasn’t beeneasy. What’s your recipe for makingitwork? people, thepandemic hasforced that inavery literal sense— Instead, you advocate “work-life integration.” For many andinadequate.guilty We don’t thatterm, need too. tion isjust flawed.There inlife are things to make enough us feel noone hasbalance.because premise whole The - andtheexpecta usto guilty, feel was put inplace for of all I’m just convinced it, of work-life balancewith you when are even times—please. atall It problem: life isn’t. and they’re even times. atall That’s balance. It’s static. But here’s the It’s abaracross thetop. with structure ametal It holdstwo weights isabalance? what Because Imean, close your eyes andpicture it. Why? Right. Icannotstand “work-life balance.” Idetest thatterm. Another point you stress istonot seek “work-life balance”— that thosethingsaregoingaswelltheycan.” and focuson:“Now,whatcanIcontrol?Andletmemakesure rying isjustgoingtotakeextrabrainpower.Soletthosethingsgo that youcouldhave prior to the pandemic. OK, let them go. Wor control?” “OK, whataremypriorities,amIfocusedon,can when things are just spinning, it’s really important to remember: floor ifyoudropthatfocalpoint.Ifanything,intimesofchaos, I don’tunderstandthatatall.mean,thedancersendupon scary. Sothisnotionof,“Letitallgoandjustseewhathappens,” figure outwhattheheckhappensnext.Tomethat’smuchmore things inlife—tobemuchmorecalmingthanlettingtheworld I goingtoeattonight?Howamexercise?” trol. Idon’tcareifwhatyoucancontrolissosimpleas,“Whatam And youknowwhat?Therearealotofthingsthatcancon- God. Igetdizzythinkingaboutit. just takeoureyeoffthefocalpointandwefollowit…oh,my time youspin.Well,theworldisspinningrightnow.Andifwe You needtohaveafocalpoint,andthatkeepsyousteadyevery So if thisisnow how if we’reSo going to judged, be doing agreat job Now, there’s going to be some things that you can’t control now Now, there’sgoingtobesomethingsthatyoucan’tcontrolnow I findfocusingonwhatcancontrol—evenifit’snotmajor It’s soimportanttofocuson:“Whatcanyouactuallycontrol?” You can’tletyoureyesgowithyouasallthewayaround. AND NOW, WECAN TALK ABOUTIT.”
43 - - s an african american woman Let me say, unequivocally, yes. Yes it is. in my fifties, I don’t exactly fit the Let me explain. prototype for a tech industry business UNAPOLOGETICALLY If you haven’t figured this out already, I’m Aleader. I can’t tell you how many times an ambitious woman. Unapologetically so. people—especially women and people of When people ask me where my ambition color—have asked me this question: How did comes from, well, it’s sort of like asking me you get where you are? where my legs came from. It grew with me; Before I answer the question, let me tell AMBITIOUS it’s part of my genetic code. Just as you can you a bit about where I started. In 1962, I trace certain physical traits back through was born into a family of modest means An Excerpt from the generations of my family, so can you and high ambitions. This was not long after trace ambition. lunch counter sit-ins called national atten- Shellye Archambeau’s My Aunt Dee, keeper of the family papers tion to segregation, and not long before on my mother’s side, has a document that Martin Luther King Jr. delivered his “I Have A new book. reminds me how far my family has come Dream” speech at the March on Washington. over the years. Yellowed parchment, faded During the first five years of my life, the opportunities they found right in front of brown ink—it’s called a deed of manumis- Civil Rights Act passed, peaceful demonstra- them, instead of strategizing to create their sion, a handwritten letter penned by a slave tors met brutality on the Edmund Pettus own options. I’ve watched people make owner, verifying the release of one of my Bridge in Selma, Alabama, the Voting Rights easy choices that don’t truly serve their ancestors from slavery. To read it, you would Act banned practices that limited voter long-term goals. I’ve met people who once have no idea it referred to a human being. It rights, and racial tensions soared. In this had an idea—a far-fetched dream—of what could be a description of livestock—male, environment, my determined parents set out they wanted, but they never formalized that five feet nine inches, high forehead, long to make a life for our family, following oppor- dream into a goal or figured out a plan to scar on his neck. Just a couple generations tunity wherever it took us. get there. These are the folks who wake up later, my great-grandfather, a proud and As for me, I started as a shy, gangly black in midlife, wondering how they ended up accomplished man whom everyone called girl in an all-white elementary school, and I so far away from where they’d hoped they Papa, was bringing my mother and her sister grew into a successful high school student would be. to lunch counter sit-ins, teaching them and a graduate of the Wharton School. I All too often, I meet people who don’t to take a stand for what’s right, and writ- met a wonderful man to share my life with, think about the long term at all. If you don’t ing weekly letters to the editor of the local and together we raised a family. After a have goals, how will you reach them? If you paper, speaking out against injustice. fast-paced rise through the ranks at IBM, I have goals but no plan, how will you know if On my father’s side, we have a family become one of the very (very) few female you’re on track. Bible, a heavy tome bound in blue cloth African American CEOs in the technology embossed with intricate gold lettering. sector, all the way back in 2003, when I was Inside, it’s inscribed with the names and forty years old. As CEO of Zaplet, I orches- birthdates of ancestors, beginning with trated a merger with MetricStream, guided Dominique D’Archambau (a different spell- our combined company through the choppy ing of my last name), a sea captain from waters of the dot-com bust and the financial France, who married a Jamaican woman crisis of 2008, and came out of the other end named Maria Chaddenne who gave birth to an industry leader, employing over a thou- Thomas Nicholas, in 1806, in Jamaica. That sand people. Along the way, I have mentored list of names leads right to my own grand- countless young professionals, and I have children. Tracing my finger down the page, I been involved in organizations that do a lot of imagine what life was like for each genera- good—especially for minorities and women. tion. I see how each name is like a rung on a How did I get here? That’s what this ladder climbing toward greater and greater book is all about—the values, experiences, freedoms. lessons, ideas, strategies, and actions that Yes, I see the challenges my ancestors got me where I am today. If I had to sum it faced. I also see their strength—the work up, though, I would say ambition got me ethic, pride, faith, and ambition that pro- here—ambition supported by the conscious The good news is: It’s never too early to pelled them forward. That’s in my DNA. choices I made every step of the way. plan. And the better news is: It’s never too As for you? No matter where you are Success begins with figuring out what late. At any point in your life or career, you starting, no matter where you or your family you want, then making the choices that will can set an objective, research the skills, have been, you too have the strength to get you there. You’ll notice I use that word a experiences, or resources you need to go propel yourself forward. No two individu- lot: choices. after it, and then map out a plan to achieve it. als want the same things out of life. We all Early on, my parents set me on the right Seriously. know this in theory, but when it comes time track by teaching me the foundational life I’m not the only person who has custom- to design our lives, sometimes we overlook skills and lessons that would help me survive built a happy, successful life. You can do that essential question: What do I want? in a world hostile to young black girls like me. it, too. This doesn’t mean you won’t face Forget about achieving success as someone In addition to choices, you may notice I challenges, disappointments, and tragedies else defines it. What do you want? use another word a lot: plan. along the way. (Most of us do). It means By the end of this book, I hope you will That’s right. I’m a planner. Big time. In fact, that you can make life—and everything that both define what you want and feel empow- some might say I’m a little over the top when comes with it—work for you. ered to go after it, unapologetically. it comes to strategizing my life. But honestly, Wait—are you wondering if this actually as a business leader and mentor, I’m sur- applies to you? If you can find success and Excerpted from the book UNAPOLOGETICALLY AMBI- prised how many people—smart, talented, happiness? Why is this a question so many TIOUS: TAKE RISKS, BREAK BARRIERS, AND CREATE SUCCESS ON YOUR OWN TERMS by Shellye Archam- creative people—don’t have a plan in place to of us ask ourselves—not “How can I get what beau. Copyright © 2020 by Shellye Archambeau. Reprinted help them reach their goals. I want?” but “Is this even possible for some- with permission of Grand Central Publishing. All rights I know people who have taken the one like me?” reserved.
44 brunswick review · issue 20 · 2020 SHELLYE ARCHAMBEAU
Now, let’s look at what can you control. If you’re married and It’s really as simple as that. We are creatures of habit. Develop- have young kids, it’s particularly tough. They’ve got Zoom classes. ing new habits, developing new muscles, those take intention. And You have to sit with them and you’re trying to get work done, too. frankly, we’re just not intentional enough across the board. Some Try to make the best of it. Figure out the structure that you can companies are. And as a result, you actually see real difference. provide, the expectations you can set your kids. We set expecta- tions at work all the time. Our kids are really smart; you would be You’ve said before you’re “cautiously optimistic,” to use your surprised, even at very young ages, how you can set expectations. metaphor, about more companies building that muscle. Why Maybe you say, “From this time to this time, you’re on your iPad the hesitation? and Mom’s on her computer.” Right? “OK, we’re going to sit here I’ll come back to the “caution” in a minute, but I’m optimistic together. You’re going to do this, I’m going to do this. You have because of three things. One: For the first time in my lifetime, we three chances to ask me questions, all right?” And when they say, are talking about race. “OK, well, can I …?” you can go, “Yep, absolutely, let’s get our paper. I mean, race was so taboo in the United States that it wasn’t even That’s number one. Right? You have two more.” one of the three things that you didn’t talk about in polite com- Because if we don’t bring that same kind of structure to our lives pany: religion, sex and politics. Race wasn’t even on the list, it was so as we do our work, then it’s just chaos for everybody. I’m not trying underground. OK? And now, we can talk about it. And more than to make light of it. It is hard. But there are things that we can do that, it’s actually encouraged. and tools that we can use at home, just like we do at work, to bring That leads to my second reason: People are hearing for the very structure and make it a little bit more predictable. first time, experiences and perspectives that I don’t think they ever had, which helps drive empathy and understanding. And you It feels much longer, but it was only a little over a year ago also have people stepping up to say, “All people should actually be that the Business Roundtable came out with its statement on treated equally. I thought that was the case. And now I see it’s not. corporate purpose. Did that change how you view your role or But everybody should.” And the people who are standing up repre- responsibility as a director? sent the demographic of the entire country. It’s interesting, because it didn’t change my personal view. I always And then, three: Even during civil rights, very, very few businesses felt the best companies are companies that deliver consistently good actually stepped in. It was a government issue. It was not a business returns to shareholders, treat their employees right and are good issue. Well, this time, business is stepping in. And they’re saying, corporate citizens. I just believe those all go hand in hand: You’re “How our employees are treated, whether they feel safe, whether a good corporate citizen, so employees want to work for you. And they can live—that matters to us. And we’re going to play a role.” therefore you end up with good employees and you’re able to gen- Those three things are what give me optimism around what’s erate better returns. different. The reason I use “cautious” is because we’re a fickle soci- But it absolutely did, I think, impact conversations broadly, in ety. We tend to pick big things to focus on and then we get tired and the boardroom and in companies in general. And I’m thrilled that it we move to the next thing. And this one, it’s taken us 400 years to actually came to fore. get here. And it’s not going to be fixed in 12 months. So the question is and the caution is, “Are we actually going to have the fortitude to We read all the time about the powerful business case to be just keep working at it?” made for advancing racial equity. And yet judging by their You know, it goes back to that muscle. A lot of people go out and actions, business leaders—often caricatured as pursuing prof- do something once or twice. They come back, they’re sore, and they its and financial returns above anything else—seem OK leaving say, “OK, I’m not doing that anymore.” It’s over. Right now, we’re at these on the table. You’ve been a CEO; you sit on four boards. the point where muscles are getting sore, people are getting tired. How do you make sense of this contradiction? Whenever you’re developing a new muscle, it’s uncomfortable. If If you were able to get every Fortune 500 CEO on a Zoom call, you’re a runner and you suddenly decide you want to take up box- what do you think they need to hear right now? ing, well, you know what? When you take your first few lessons, A lot of studies I read say one of the top problems that CEOs feel you’re not good. It’s not comfortable. You haven’t been developing they have is talent. A lack of it. And I don’t believe we actually have a those muscles in your arms and chest. And the legs, suddenly, you talent problem, not a raw talent problem. We have a problem iden- don’t need long, lean muscles, you need tight, bulky ones to get the tifying and developing talent across the board. power in. You’re impulse is: “Forget it, I’m going to go back to run- Because talent is evenly distributed—by geography, ethnicity, ning. I can get the same results, stay healthy, stay in shape.” age, gender, however you want to look at it. It makes no sense to I see it the same way in business. Why do they leave those returns me that we should have a talent shortage. We need to think about on the table? They don’t have that muscle. They know how to do it differently: “How do we do a better job of identifying talent and what they’ve been doing. And they can get good enough returns developing talent?” Because there’s plenty of it out there. u that way. And until now, people weren’t pushing them to go get that extra return. edward stephens is a Senior Writer at Brunswick and based in London. brunswick review · issue 20 · 2020 45 The New Yorker
n my last walk home from the office last For years, “KC,” I said, tipping my Chiefs cap for emphasis. March before locking down, I came across a my KC cap was Her eyes, drifting beyond my shoulder, implored reporter in Herald Square. She was seeking to a symbol of some other stranger to come rescue her. Ointerview people about the closing that day of I walked away scolding myself. “What the heck resistance. Then the famous Macy’s store there. But passersby that was that about? Your wife is a New Yorker. Your the pandemic evening were few and six feet between, none of them daughter was born at NYU. You’ve lived here for apparently eager to land a TV appearance that might struck. eight years.” risk their health. Knowing from my own journalistic But I was unrepentant. “She shouldn’t have called experience how difficult person-on-the-street inter- me a New Yorker.” views can be, I volunteered. This beef of mine was particular to New York. Keeping her distance, she pointed a microphone While living in Chicago, I’d called myself a Chica- in my direction. “As a New Yorker, how do you feel goan. During two stints in Dallas, I’d worn cowboy about the closing of this iconic store?” boots. Like Kansas City, however, Chicago and Dallas I knew exactly what she wanted me to say. Were belonged to what New Yorkers called flyover country. I in her shoes, I knew what I would want me to say. Thirty years ago, when I joined The Wall Street But she had triggered something. “She shouldn’t Journal in Dallas, I discovered that my counter- have called me a New Yorker,” I thought. parts in New York felt a bit sorry for me. They just Trying again, she said, “As a New Yorker, how does assumed I wanted to live and work in The Only it make you feel to see Herald Square this empty.” City that Matters. In every New York apartment I That did it. “Actually, I’m from Kansas City,” I said. visited, there hung that Saul Steinberg New Yorker PHOTOGRAPH: KEVIN HELLIKER KEVIN PHOTOGRAPH: “Excuse me?” cover, belittling everything west of the Hudson TAGARIELLO FRANK PHOTOGRAPH:
46 brunswick review · issue 20 · 2020 PHOTOGRAPH: FRANK TAGARIELLO
PHOTOGRAPH: KEVIN HELLIKER a veteran toreporter deigned ask where I was from. college,as areporter just out of andblushed when delivering TheStardecade, of Ientered itsnewsroom career, andlessfamously wheremine. Istarted After a either or crime. corruption course),of wrote aboutKCK, matter thesubject was Whenever slaughterhouses,had steel plantsandcarfactories. stadiums andcollege degrees. Over inKCK, we where you’ll findskyscrapers, museums, sports them knows thereof isonly one: KCMO. That’s Kansas Citys. ahundred within miles But everybody suit have thatthere propagated are two thebelief geography teachers Trivial andtheboard game Pur other Kansas Citians love to ridicule. Fifth-grade extreme, that’s Igrew upintheKansas because City Kansas more alone Ilogged City than200bylines. consideredgenerally anddull. unimportant Out of tant andinteresting inplaces people New Yorkers journalist, meanwhile, Iwrote stories aboutimpor executive I’d ever covered, the late Sam Walton. As a business thesmartest dimwittedacting inhonor of proud New particularly with Yorkers, sometimes accentuating my Kansas twangwhenever Ispoke motions thatwould have brought meto New York, the dollars amonth. moved studio costing into thousandsof adingy in life goals once their highest they’d oneattained of anyone choosing any place else, New Yorkers who’d western roots, New Yorkers couldn’t who fathom River. New Imet Yorkers their Mid of ashamed brunswick review The Star famously iswhere Hemingway his started seems my snobbery reactionIf to geographical I went the other way. For 20 years I worked in WSJ’s Dallas andChicago Dallas offices, declining pro The Kansas City Star
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- - - - EVERYTHING WEST Greenwich Village. an Aprilrun through taken by theauthoron inlockdown,A city YORK APARTMENT I VISITED, THERE STEINBERG YORKER COVER, HUNG APOSTER OF THEHUDSON IN EVERY NEW OF THAT SAUL In Their OwnWords KEVIN HELLIKER BELITTLING RIVER. NEW NEW
and Editorofthe kevin helliker isaPulitzer Prize-winning journalist hesitated only asecond. Brattleboro, Vermont, asked where I was from, and I Hearing the Kansas twang in my voice, a cashier in done had people million it, them. andIwasone of tened theworld’s steepest coronavirus curve. Eight for a break in Vermont in July, New Yorkers flat had beside anasterisk their should name.fled get isn’t isandwho who areal New Yorker: who Those in that heardnever-ending a new twist debate about SUV inthenonexistent lotoutside.” parking Ieven once aweek: “Yeah, upmy just load I’ll nonexistent House recommendation to shopping limit food to the grocery, Iheard that somebody satirize White passersby eager to wave atme. Onmy to daily trip that chip blinded had meto it. Out running, Ifound ful thanever. Or maybe always they been, had and Yorkers were friendlier, funnier andmore cheer carols even after their presents stolen: been had New were theGrinch, the hearing Whos singChristmas mealittle.intrigued But Iwasastonished. It’s I asif points, would sullen. turn thateven prospect The of place nobody wanted to be. New York wasKCK. asked,they theserubberneckers. and adesolate Times Square. “What’s itlike there?” They’d stores, dark seen images of sidewalks empty New hundreds of about thedaily deaths of Yorkers. tals, abouttheNational Guard massgraves, digging heard about refrigerated morgues outside hospi- well asfrom fled had who people New York.They’d Herald Square, Ireceived from calls theMidwest, as was double-parked here. even after one, fathering to Ineeded make clear thatI hawks apparel. Even aNew after marrying Yorker, Manhattan Chiefs, wearing streets of Royals and Jay nobody mistook mefor aNew Yorker, Iwalked the I moved to New York years eight ago. To make sure isachipjournalism on your shoulder. said. “How’d you out?” get newsroom. “I wasover there once—by accident,” he reporters camefrom exotic places like Boston. won ithad that spring two Pulitzers—and itscub Back then TheStar respected—only wasnationally “I’m aNew Yorker,” Isaid. By my the time and daughter and I got away wife You thinkthecity, might itsbragging of stripped And then itoccurred to me: New York wasthe mineat standof thatridiculous daysBut within of atlong mewhen last chipThat camealong with Ohwell. It qualification issaidthatthebest for thewhole theattentionHis of caught laughter But Iwasn’t going to lie. “KCK,” Isaid. Brunswick Review. Brunswick u 47 - - - The Moment We Trained For GEORGE OSBORNE served as uk chancellor of the exchequer from 2010 to 2016. During the period Mr. Osborne had responsibility for the UK’s economic, budget and financial policies, the country posted the stron- gest growth in the G7 and attracted a rising share of global business and tech investment. He also undertook far reaching reforms of pensions, intro- duced the ground-breaking sugar tax, and promoted regional growth and devolution with the northern powerhouse. Following the successful election of a Conservative Government in 2015, he also served as First Secretary of State. A prominent campaigner for Britain to remain in the EU, Mr. Osborne left the government in July 2016 following the outcome of the referendum. On his appointment in May 2010, Mr. Osborne was the youngest Chancellor since 1886, and the third youngest in history. He presented eight bud- gets, the most of any Conservative Chancellor. Prior to that he was elected in 2001 as the youngest Con- servative MP, ran David Cameron’s successful cam- paign to become Leader of the Conservative Party and helped negotiate the formation of Britain’s first Coalition Government since the Second World War. Today, Mr. Osborne is Editor of London’s Evening Standard, one of Britain’s largest circulation news- papers, a post he has held since 2017. He is also a senior adviser to the BlackRock Investment Institute. He chairs the Partners Council of EXOR, the hold- ing company for firms like Fiat Chrysler, Ferrari and A (young) elder of the Economist magazine. He is a visiting professor at Stanford’s Graduate School of Business, where he UK government teaches a course in decision making—and he is a fel- and politics on low of the Hoover Institute. He has a Master’s Degree leadership amid from Oxford University in Modern History. In April, Gthe pandemic. he was interviewed for the Review by Philip Delves WILSON/GETTY IMAGES C. STUART PHOTOGRAPH: 48 brunswick review · issue 20 · 2020 The Moment We Trained For GEORGE OSBORNE
George Osborne, then serving as Chancellor of the Exchequer, holds the Budget Box outside of 11 Downing
PHOTOGRAPH: STUART C. WILSON/GETTY IMAGES C. STUART PHOTOGRAPH: Street in 2016.
brunswick review · issue 20 · 2020 49 GEORGE OSBORNE
Broughton, a Senior Consultant to Brunswick, for- who are making the biggest contribution to steering mer New York and Paris Bureau Chief for the Daily through a crisis. Telegraph and the author of best-selling books. In a democracy, you can’t avoid the head of gov- ernment—the central decision maker. One thing I How is it running a daily newspaper these days? was constantly reminded of in government was that This pandemic is the biggest story of our lifetimes every one of the most difficult decisions is elevated and there is an enormous amount of public interest to the Prime Minister. If they were easy decisions, in getting authoritative facts and analysis. But there’s by their very nature, they wouldn’t have reached the also the real business challenge of the precipitous fall Prime Minister’s table. Some of the burden can be in advertising revenues. It’s both a great opportunity shared by people like the Chancellor, but essentially and a big challenge. the PM is left with the hardest calls. We’ve responded in two ways. First, we’ve had to Usually there’s also the head of the civil service. reduce costs. We’ve put some of our staff on a fur- The late Jeremy Heywood in the UK was the out- lough scheme, and we’re making sure we’re as effi- standing example of this. cient as we possibly can be. “THEY WON’T Obviously in this kind of crisis, you’re also relying Second, we have reshaped the newspaper to cover on your public health officials, your chief scientific the COVID-19 crisis and dramatically changed the THINK OF THIS advisors, who usually wouldn’t have anything like distribution. We used to hand out copies at Tube sta- NOW, BUT this kind of access to the PM. In ordinary times, they tions but people aren’t using the Tube. Now we’ve might see the Prime Minister once or twice a year. switched to hand-delivering copies of the newspaper FOR THE PEOPLE A big challenge for government is that you can’t to homes across London. We’re also seeing traffic up AT THE HEART be entirely led by the science. Scientists are making on the online platform. This is just accelerating the a very important judgment, which is how you tackle merging of our print and digital operations. OF THE COVID-19 the disease. But politicians and officials have to bal- CRISIS, THIS IS ance that with other judgments like what is sustain- What do you imagine it’s like in Downing Street? able for the economy, or acceptable to society. You Downing Street is a very small building. Even though THE GREAT could imagine a piece of scientific advice which you’re part of a broad network of the state with thou- MOMENT OF THEIR would be to let the elderly and the sick die so you sands of people working in departments and differ- can concentrate your resources on the young. But no ent arms of the government, ultimately the decision CAREERS. civilized society could make that judgment. making comes down to a very few people in that very TO USE THE Expert opinion should certainly inform any deci- small building. sion, but ultimately the political leaders in a democ- There will be intense pressure on the political and HACKNEYED racy are balancing various judgments, and the group official leadership. And they’ve got the additional PHRASE, helping them with this is very small. human toll, which I never had, of infection and self-isolation. THIS IS WHAT How does government prepare for these kinds THEY TRAINED of crises? What’s the government’s biggest communica- The government I was part of had a risk register tion challenge? FOR.” which we’d regularly interrogate. It was a grid show- Trying to get the balance between reassuring people ing a combination of the risk of a particular event that you have a plan and a path through, whilst at the happening with how damaging it would be. Top of same time not giving false hope and promising things the risk register was a nuclear war, which govern- that can’t be delivered. Governments get themselves ments still do some planning for, though not nearly into all sorts of trouble when they over-promise and so much as 30 or 40 years ago. Then there are events under-deliver. At the moment [April, 2020] I would like flooding, a solar flare, a fuel strike, all sorts of be erring on the side of caution, explaining to people things like that. There’d be rigorous and regular what we don’t know as well as what we do, and not assessments of the register. Pandemic flu was very promising either timelines that can’t be delivered or high up on the register. So it is not true that no one exit strategies that don’t exist or help that is not about in the British government had done anything to to imminently arrive. think about this. Governments have had stockpiles of protective equipment. But clearly, it’s self-evident, Who really makes the decisions at times like this? not enough thinking had gone into this. In any organization, and government is no different, Looking back in a lot of countries, we hadn’t really
it’s always three or four individuals right at the center stress-tested a pandemic where the hospitalization POOL/GETTY IMAGES WPA - ROUSSEAU STEFAN TOP, POOL/GETTY IMAGES; NICHOLLS-WPA PETER RIGHT, PHOTOGRAPH:
50 brunswick review · issue 20 · 2020 rate would be so much higher than in a flu out- time. You have to make sure you’re getting a decent break. That’s what has led to the pressure on all these night’s sleep, you’re getting some exercise, you’re eat- healthcare systems. ing healthily and regularly. Quite often I find political and business leaders How do you sustain energy and morale on a team remain frenetic and can’t spot the ebbs and flows under intense pressure? of when they really do need to be up all night, and For the people at the top of government, it is incred- when now’s a night you can actually go to bed. Obvi- ibly exhausting and challenging. But this is also, ously you get completely burned out. I saw it happen frankly, the defining moment of their careers. If a lot in politics, people work absolutely flat out, then you talk to the people who were directly involved in get frazzled, and they’re no use to anyone. the financial crisis, they will now say that those few months in 2008-9 were the high point of their career. How has the British government handled this They may not have felt it at the time, when they were Days before presenting crisis so far? overworked and faced enormous pressures, but it budget to Parliament in Britain is in the middle of the pack, I would say, of March 2016, Osborne was also the moment they could make the biggest visiting a construction the Western countries. It has clearly been better than contribution to the well-being of their societies. And site in central London. many. It has the advantage of a public healthcare sys- tem so it can direct the nation’s healthcare in a way in which, for example, the US with its fragmented healthcare system cannot. But now [April 2020] it has announced all these schemes to deal with the problems, it can’t keep announcing more schemes. You have to deliver, oth- erwise you’ll undermine confidence in what you’re doing. There’s a legitimate debate about whether Britain, like other countries, was too slow to move to quarantine and to adopt the strategy of trying to halt the spread of the disease altogether. But that will be for the wash-up afterwards. What’s clear is that this is an absolutely defining event for all governments. Many will be casualties of it. Recessions and crises like these lead to changes of government. Probably not in the UK, because we’ve just had an election, but in many other places, I sus- pect, there’ll be regime change.
when they were required to be as innovative and In 2015, when George What differences have you noticed in the Osborne was Chancellor flexible as possible. They won’t think of this now, but response of government and business? of the Exchequer and for the people at the heart of the COVID-19 crisis, Boris Johnson was Mayor Events like this remind you of the power of govern- this is the great moment of their careers. To use the of London, the pair ment compared to the power of an individual busi- delivered a joint speech hackneyed phrase, this is what they trained for. at the Tate Modern, ness, which is only as strong as its balance sheet. outlining a long-term plan This virus has struck different business sectors in How do you stay level-headed? for the city’s economic this completely random way. An otherwise healthy, future. Inevitably, in the first couple of weeks of a crisis, exceptionally well-run travel business now finds there is a physical toll. You have to get through an itself in a critical position. Whereas a badly run enormous amount of material and make a huge chemical company which happens to make hand number of decisions. You have to be realistic that sanitizer finds itself in a very good position. you’re going to be using most of the hours of the day Businesses tend to be narrowly focused on what to do that. the management can deliver, the costs of the busi- What’s crucial is spotting the moment after you’ve ness, the income, and I guess for better businesses, made the initial decisions when you have to figure concern for their workforce. out how to pace yourself. The absolute key to staying A government has so many more consider- sane and making sensible decisions is knowing that ations—very many more stakeholders and at the
PHOTOGRAPH: RIGHT, PETER NICHOLLS-WPA POOL/GETTY IMAGES; TOP, STEFAN ROUSSEAU - WPA POOL/GETTY IMAGES WPA - ROUSSEAU STEFAN TOP, POOL/GETTY IMAGES; NICHOLLS-WPA PETER RIGHT, PHOTOGRAPH: you can’t do it if you’re flat-out exhausted the whole same time many more resources available to it. It
brunswick review · issue 20 · 2020 51 GEORGE OSBORNE doesn’t have that narrow concern about the balance because the crisis has come so quickly, what you sheet. You can see the way central banks and Treasur- want from your political leaders is candor about the ies have massively expanded their balance sheets. situation, not false hope that there’s any easy route Provided governments can maintain the confi- through this or it’s all about to come to an end. But dence of financial markets, they can deploy incredi- at the same time you want hope that there is a path ble resources—but if they lose that confidence, as you through and that government will be deployed in saw so many countries do after the financial crisis, “FOR brand new ways. then like any badly run business they face bankruptcy. CORPORATES Will this lead to greater international cooperation What will be the consequences for business? WHO ARE or greater mistrust? Businesses are going to have to look at their balance The striking difference between this crisis and the sheets. Investors are going to ask, what is the strength RESCUED global financial crisis is the lack of international of those balance sheets in a crisis? What are the cash AND BAILED OUT, coordination and the high degree of mistrust. reserves? You’re going to end up with these fortress During the global financial crisis, there was lots balance sheets. Certainly in the short- to medium- THE PRICE WILL of coordination between central banks, the G20 and term after this crisis, you will see a big suspicion of HAVE TO international institutions like the IMF. You see almost over-leveraged companies. none of that now. The G20 is completely irrelevant. It’s quite similar to the banking crisis. The banks BE STRONGER There has been some central bank coordination but fell over. They were rescued. After that, they were BALANCE not much. And of course, unlike in 2009, when the required to hold very large amounts of capital. All the cooperation between the US and China was critical, people in the industry who complained that regula- SHEETS.” with China stepping in to help the global economy, tors and politicians like myself were demanding too now you have a war of words between the two. much of the banks can now look at this present cri- Unfortunately, international cooperation has sis and thankfully the banks are in a relatively strong been almost entirely lacking. Countries have tended position precisely because they have these reserves. to adopt their own economic and health solutions to I think the same thing will happen in the broader the problem. In the future, what you’ll see is coun- corporate sector. For corporates who are rescued tries essentially building out their resilience, creating and bailed out, the price will have to be stronger bal- domestic supply lines for key chemicals and testing ance sheets. They will have to show they can oper- kits, and ventilators and protection equipment, and ate with zero income for longer than they are clearly acting more quickly to shut borders. able to at the moment. Clearly, it should be self-evident that this is a global crisis, which shows no country is an island. What are the most relevant historical parallels Everyone is affected in much the same way. I suspect to today? the actual result will be countries thinking they can Plagues and pandemics are actually fairly regular isolate themselves from future episodes like this. occurrences in human history. It’s amazing when philip delves broughton you read historical accounts, like Samuel Pepys on is a Senior Consultant to You’re a passionate Londoner. What’s it like see- the plague in London in the 17th century, how simi- Brunswick, based in New ing your city under siege? York. He was previously lar the issues are: the pressure on the authorities to London has been through a hell of a lot: plagues, a Senior Advisor to the close down activity; the strain that puts on the indi- Executive Chairman of Great Fires, the Blitz. It’s pretty eerie going around viduals being confined; what do you do when people Banco Santander. His books seeing how everything is shut in London just as in are defying the quarantines. There’s the reassurance have appeared on The New these other great cities like New York. But London York Times and Wall Street that these are not new issues. will come back. It always does. Journal bestseller lists. He An interesting model is Franklin Roosevelt. In his is a former Financial Times If I was looking for a silver lining, I’d say that in first inaugural address, he is very candid with the columnist, and former Daily the street where I recently moved, one of my neigh- American people. He does not promise the Great Telegraph bureau chief in bors celebrated their birthday. I didn’t even know New York and Paris. He has Depression will be over immediately. But he offers who this neighbor was. But the whole street came collaborated with corporate vigorous leadership and is innovative in getting the and nonprofit leaders at out and raised a glass. There was this incredible com- bureaucracy of the US government to think differ- firms including Blackstone, munity spirit in a street where I barely knew anyone. ently about how to help the American public. You Apple and Goldman Sachs. In these rather anonymized cities, like London and He has a Master’s Degree end up with enormous schemes to keep people at New York, one of the amazing paradoxes of every- from Oxford University in work, to rescue banks, to support businesses. Classics and an MBA from one being forced to stay at home is perhaps we are Although this is a more condensed timetable now Harvard Business School. becoming stronger and greater communities. u
52 brunswick review · issue 20 · 2020 PHOTOGRAPH: COURTESY OF SHINZŌ ABE ABENOMICS brunswick review
· is sue 20 the they continuethey to hisname: bear Abenomics. Japan to foreign investors, werewith the soclosely Minister identified Prime that economy, reforms andregulatory thatemphasized transparency intended to open and foreign trade. easingandfiscalstimulus the Policiesto jumpstart monetary of 2012 to 2020. thattime, During thetone heset for thecountry’s politics, economy minister inJapan’s history, holdingtheoffice from 2006 from to 2007andagain the US, with partner trade Asia andEurope. Mr. prime Abe isthelongest-serving Japan,Minister of theworld’s third-largest nationaleconomy andakey and ally on 16, september shinzo ended histenure abe hisoffice andleft asprime from COVID-19 theglobal pandemic. Japan,of takingover asthenation isaddressing another severe economic blow the during AbeSecretary administration, minister asthe99thprime waselected politician Yoshihide Suga, for Mr. arm wastheright who Cabinet Abe asChief
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• Onthesameday, career self-made
tsuchiya. By daisuke tion. Suga administra- under thenew willfare policies and how his minister’s power prime outgoing the into insights offers office, Shinzōter Abe’s of Prime Minis a former member yoichiro sato, Brunswick’s - 53 YOICHIRO SATO
Mr. Suga’s top priority is to strike a balance between advancing house or upper house. The Abe administration also managed to economic growth and maintaining health safety measures that establish the agency for human resources—the Cabinet Bureau of forced the postponement of the 2020 Tokyo Olympic games, now Personnel Affairs—in order to have more influence over person- scheduled for July of 2021. nel decisions, especially of senior civil servants. The robust policies Japan, home to over 3,000 of the world’s 5,000 oldest companies, of reform pushed forward by Abe’s administration are definitely a is a tough market for anyone to launch a new business, a fact that result of more coordination among key ministries, thanks to the Brunswick Partner Daisuke Tsuchiya and Director Yoichiro Sato political capital that he had, and the increased political power over know well. Both are veterans of government work in Mr. Abe’s the civil service. administration. As advisor on foreign affairs, Yoichiro worked However, there is also a more underlying sense of urgency in directly with both Mr. Abe and Mr. Suga. Shortly after Mr. Abe all areas of government to revitalize the economy, given interna- stepped down in September, Daisuke interviewed Yoichiro about tional competition and a fast-aging population. Without that, the the challenges as well as the opportunities of the Japanese market, Japanese ministries and government agencies that have such an and what the change in government means for business. important role to play in realizing long-term policy change in Japan would not have been mobilized as effectively as they were. I feel this What do you think are the main achievements of Prime is a trend that will continue under Prime Minister Suga and subse- Minister Abe’s administration? quent administrations. In a nutshell, I think the prime minister was successful in foster- ing hope for Japan, for the people of Japan. He was very, very good With the changes in the governance code and the stewardship at changing the narrative for the country. He made the people of code, more foreign investors are buying shares of Japanese Japan feel more confident about the future. His focus was revi- companies. Activist shareholders are also more engaged, as a talizing Japanese economy—his administration started in 2012, result of Abe’s encouragement for more dialogue with share- just after the Great East Japan Earthquake. We didn’t have a lot of holders. Do you see that trend continuing? hope for the future then. We had spent almost two decades in eco- Yes. I think it’s a long-term trend, a fundamental vector. The rul- nomic stagnation and price deflation. So Abenomics aimed to push ing parties—LDP and the alliance with Komeito—want to push the national growth through easing monetary policy, boosting fiscal national economy, leveraging foreign investment and welcoming stimulus and pushing structural reform. more people from the rest of the world. That’s been one of the key The administration put in place reforms or measures to facili- elements of Abenomics, and they want to push harder. tate dialogue between Japanese corporations and investors, that is, The current focus is to address the COVID-19 situation where the governance code and stewardship code. The aim was to make they have to strike a balance between economic growth and pub- the market more attractive for both domestic and international lic health. But in the long term, once we’ve recovered, they want to investors and by doing so, to incentivize Japanese corporates to celebrate the Olympics and to welcome more people and visitors create greater value through their businesses as well as to achieve through various measures. The government has relaxed the restric- share prices that more closely reflect their value. They’re now more tions on immigrants or professional workers from other parts of expected to share and disclose their information. The govern- the world, for instance. Tourism was on an astronomical rise in the ment also pushed Japanese corporates to enhance governance and last decade before the pandemic started. I think the new adminis- increase productivity. This includes work-related reforms and pro- tration will have the support to continue policies to connect Japan moting diversity with female empowerment. Such measures had and other markets. not been undertaken with the same rigor by previous administra- tions due to strong opposition from vested interest groups, even Foreign direct investment as a percentage of GDP, even as it parliament members or ministries within the government. In the has increased, is still very low in Japan, putting Japan at around economy, the unemployment rate dropped from around 4.3 per- 190th in the world, despite all of the measures that Abe has cent to 2.4 percent, which produced over 4 million new hirings, and undertaken. What do you think are the challenges for foreign the employment of women dramatically increased. businesses to enter Japan? That’s one of the most important questions we have to ask our- Career civil service is at the core of Japanese government. Life- selves. One initiative taken by the Tokyo municipal government time civil servants continue to enjoy strong respect and are at is to establish and brand the city as a new Asian regional hub for the heart of a lot of long-term policy development. Were Abe’s finance, to attract more and more investors or fund managers accomplishments a factor of his personality or a sign of a shift on the ground in Tokyo. They have discussed a variety of these in underlying, institutional trends for the long term? challenges for international corporates or financial institutions I think that’s a great point. Prime Minister Abe’s administration is working in Tokyo or in Japan—taxation, language issues, com- one of the most powerful in the history of Japan as a democratic plexity of regulations, and others. They understand that without country. During his second term, seven and half years in office, he cooperation by the national government and the business sectors won six times through the national election, either in the lower they cannot achieve high-level investment and will struggle to
54 brunswick review · issue 20 · 2020 “WITHOUT HAVING A GOOD LEVEL OF TRUST WITH SOME KEY JAPANESE STAKEHOLDERS … I DON’T THINK ANYONE COULD BE SUCCESSFUL IN THE LONG TERM.” encourage global businesses to be on the ground in Japan. Suga also strongly supported an initiative in taxation, what we However there is only so much that national and local govern- call “Furusato Nozei,” a policy aiming to revitalize regional econo- ment initiatives can achieve. There will be work required on the side mies by allowing tax-deductible donations to municipalities. He of foreign businesses as well, to crack the Japanese market which, as comes from a rural background as well, so decentralization and data shows, is not an easy market to succeed in. revitalizing regions in Japan is an important theme for him. Suga really understands the importance of leveraging the global Yes, it is not an easy market—not only for new foreign busi- economy for Japan’s benefit. He was a strong supporter for promot- nesses. What practical steps should foreign businesses be ing and exporting Japanese agriculture products to other parts of taking to establish themselves in Japan? the world, a key mindset change, as traditionally Japanese agricul- First, they should try to have a good understanding of the Japanese ture has not been export-orientated. One common theme that runs market. I’m not saying the Japanese market is very unique. We do through all of this is, he has been very focused on revitalizing the have many things in common with other markets of the world. But Japanese regional economy through attracting foreign investment there are cultural and regulatory differences, and generally a much and people. Consistency is key. Some analysts are already saying longer period required for establishing credibility. Showing that that “Suganomics” will take over from Abenomics. you understand those differences would be a good signal in mar- keting and branding. In terms of geopolitics, I think the main thing on the minds of Second, I would suggest foreign companies make the effort to many is the US-China relationship. How do you see that engage stakeholders in the local market for the long term. Regula- affecting Japanese businesses abroad and non-Japanese tory matters or some differences in rules or commercial practices businesses interested in Japan? across industries—those might pose challenges for international Yes, the general geopolitical tension affects Japanese politics as well corporates who want to disrupt or enter a new market here. But as the Japanese economy and business environment. Aligned with without having a good level of trust with some key Japanese stake- the security measures or political measures taken by the US or other holders—government, regulators, trade associations, consumers, countries, the Japanese government has implemented restrictions business suppliers or media outlets—I don’t think anyone could be or new rules around trade with foreign countries. successful in the long term. Japanese corporations have been affected by a decrease in trade volume with China, while seeking more partners in South East That’s an interesting point. Stakeholder capitalism has been Asian countries. However, Japanese corporates really understand all the rage globally in the last couple of years. Japan has the importance of keeping business ties with China, and hence the been doing this for a few centuries. The Omi Shonin (Omi key going forward will be whether some perceived security con- merchants) had the concept of “Sanpo Yoshi” or “three ways cerns can be addressed and whether trust in China and Chinese good”—business has to be good for the buyer, seller and companies can be improved. for society. So you’re saying, understanding that mindset is In terms of regional or international security, Mr. Suga will needed to succeed in business in Japan? likely take over the course charted by Mr. Abe and emphasize the Yes. I think not only Japan but also in the global market, multi- US-Japan alliance and partnership with India, Australia, as well as stakeholder engagement is a powerful way to stand out these days. important relationships with China and other Asian countries in But absolutely the case is true in Japan—an old and yet a new trend. order to secure this region. u I believe it’s in the DNA of Japanese business and Japanese society. yoichiro sato is a Brunswick Director in the firm’s newly opened Tokyo office and was previously on the government affairs team at Goldman You worked with Mr. Suga’s team when he was Chief Cabinet Sachs. Yoichiro served as special assistant to Prime Minister Shinzō Abe Secretary. What insights do you have into what sort of prime on foreign affairs and as Chief Cabinet Secretary, working directly not minister he will be? only with Prime Minister Abe, but also with the team of Yoshihide Suga, Mr. Suga has been a very important key player in the cabinet as now the current Prime Minister. Yoichiro also served with Japan’s Ministry a very close partner for Prime Minister Abe, especially around of Foreign Affairs and was instrumental in the negotiations for the eco- nomic partnership agreement between Japan and the European Union, coordinating with key ministries. When the government planned in addition to his two-year station in Pakistan as part of a front line on the reforms or new initiatives, they needed strong support from key war on terrorism. ministries such as taxation or education or labor reform or any- daisuke tsuchiya is a Brunswick Partner and Head of Japan. He is a thing. Mr. Suga has been vocal in promoting the key initiatives that former Japanese government official who often served as interpreter to Shinzō Abe during his first tenure in office, 2006–2007, on occasions push the national economy, including relaxing visas for visitors and such as the G8 Summit and other meetings with global leaders. Daisuke restrictions on professional workers. is currently based in the firm’s London office. brunswick review · issue 20 · 2020 55 CRISIS REVISITED I CEO of Brunswick, spokeReview EditorCEO of with Kevin COVID-induced To crash? findout, Mr. Wolin, now ments would for taxpayers.” literally pay off Credit markets thawed. And our emergency invest - his 2014memoir, growing again,” started had Mr. Geithner wrote in we not only had averted a depression, our economy collapse.from theedgeof “By that summer (2009), other economic to nudge experts theeconomy away months,following convened they alarge circle with of theTreasury. of Secretary asDeputy serve Over the White House office, Mr. Geithner him recruited to Counsel for theTreasury under Mr. Summers. Yale Law asGeneral served had who School graduate Neal Wolin, anOxford-educated economist and President for Economic Policy, Mr. tapped Obama Assistant to thePresident Counsel to andDeputy the sury, theTreasury. of asSecretary To asDeputy serve President andaformer Summers protégé attheTrea He alsoappointed Timothy Geithner, New York Fed tary, theNational asDirector of Economic Council. mer Harvard President andformer Treasury Secre 56
How might a leader of that rescue view the current thecurrent thatrescueHow view aleader of might Barely two months after Mr. Wolin moved into his President Obama hired Larry Summers,President hired Larry Obama thefor 1933. Needing topflighteconomists on his team, Franklin D.since of theinauguration Roosevelt in the worst economy any incoming of president N EARLY 2009, BARACK OBAMA INHERITED questioned “when, if ever, there will be a return questioned ever, areturn be if “when, there will Nine monthsago, CEONeal Brunswick Wolin of what we used to normal.” call used we what of Stress Test. “House prices stabilized.
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PHOTOGRAPH: ALEX WONG/GETTY IMAGES PHOTOGRAPH: ALEX WONG/GETTY IMAGES and anxiety thatis,and anxiety inmany respects, unprecedented, ing, they’re nottransacting. aren’t traveling, they’re notaggregating, notinteract life havewhich of thebasic rhythms stopped. People by inyour day looking newspaper every theextent to circumstances.more of set uncertain You just cansee under great pressure. financial institutions andother companies were into thatbled therealcial crisis economy. Many In many respects, it’s higher. Then, we afinan- had the darkest days of 2008–2009? What isyour level of alarm today compared with brunswick review These factors have caused a level of uncertainty factorsThese have uncertainty alevel caused of Now, we have amuch more complicated, much
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- to normal. call ever,when, if we what used areturn be of there will ger taken for granted. And there isn’t astrong sense thatwethings have long taken are for nolon granted more broadly across gauged theentire economy. The properly.not functioning But here is thedisruption circumstances,scary in thesense thatmarkets were 2009. 2008, of wereof Those or spring obviously and certainly greater we thanwhat felt in the autumn attack theproblem overwhelming force. with That’s In moments like this, thingisto themost important ment’s relief andstimulus packages? What are your thoughts theUSgovern about - - in May of 2011. AffairsUrban Committee Banking, Housing and before theSenate Ben Bernanke testify Federal Reserve Chairman Neal WolinSecretary and USTreasuryDeputy 57 WOLIN the lesson from 2008–2009. That’s the lesson frankly forward. Leaders need to be very focused on the from all economic crises. That response should process at every stage. After forming a broad plan make sure that people and businesses are, as much and a strategy for implementation, you must remain as possible, able to meet their financial obligations flexible in the face of evidence suggesting that adjust- and that people aren’t losing their jobs unnecessar- ments should be made. Be willing to make changes ily. And central banks should use monetary policy to along the way. Be willing to learn from experience ensure liquidity. and adjust according to what’s going on in the world. In this case, Congress’s $2 trillion package is help- That’s the appropriate mindset. ful. It’s got the right basic pieces: support to individ- There’ll be complicated, challenging days. Things uals, many of whom will be worried about meeting that you’ll try won’t necessarily work the way you their obligations if they lose their jobs; support for hope or expect they might. At those moments espe- businesses small and large, and also for important cially, it’s important for leaders to stay positive, to sectors of our economy. understand that progress is not linear, that some- The Fed has made clear that they will respond times it’s a step forward and two back. It’s important with overwhelming force to provide liquidity and to believe that over time, with persistence, high-qual- financing to large businesses, small businesses, the ity colleagues, and a real sense of commitment, there treasury markets and also the municipal markets. will come substantial progress. As much as possible, “THESE FACTORS it’s that progress on which people should be focused. The 2009 response was complicated by the need to bail out some of the institutions that had con- HAVE CAUSED The government’s actions of 2008–2009 ended tributed to the crash. By comparison, the cause A LEVEL OF the economic crisis and led to the longest recov- here is simple—a pandemic, an act of God—so ery in history—but they weren’t wildly popular there’s far less finger pointing in regard to cause. UNCERTAINTY AND at the time. How does a leader stay on course Does that difference make it any easier logisti- ANXIETY THAT amid the din of criticism, especially in the age of cally or politically to identify the path forward? social media? I don’t think so. This is a unique circumstance in our IS, IN MANY Leaders are elected in the public sector, and cho- history, in the sense that it’s not just isolated to a par- RESPECTS, sen in the private sector, to make judgments and ticular piece of the markets, or a particular piece of to lead. It’s important to have convictions about the real economy. UNPRECEDENTED, what’s right, and to do what circumstances require, Suddenly everyone is staying in their homes, AND CERTAINLY without thinking about winning a popularity demand is falling dramatically, and the effect will be a contest. One doesn’t want to be overly influenced generalized collapse of demand in our economy. We GREATER THAN by popular sentiment in thinking about how to don’t know the basic trajectory of the public health WHAT WE FELT IN advance economic policy and design in these very crisis. We don’t know how long it will continue. We challenging moments. don’t know how many people will be ill. We don’t THE AUTUMN OF At the same time, in democratic systems, bringing really have a strong sense yet of the level or the speed 2008 OR SPRING people with you is an important aspect of success. or the persistency of the economic dislocation. It’s critically important that people understand what All those things make responding to this particu- OF 2009.” you’re trying to do, and why, and how you’re trying lar circumstance very, very complicated, indeed. to do it. Reflections on ’08 and ’09 make clear that it would be a mistake to move ahead without worrying In the absence of obvious, sure-fire solutions, whether people understand what you’re doing and how does a leader choose a strategy and stick why you are doing it. with it? You need to see to the other side of the chasm, as it How does a private-sector leader reassure were, and to have confidence that you will get there employees who are afraid of layoffs and of a life- and a constant focus on how to get there. First, what threatening virus? makes sense conceptually as to how to get there, Play the cards face up. Be clear about what you know then what types of programs would move us in and what you don’t know. Make sure everyone that direction, how exactly should they be designed understands that the business remains committed to and implemented? doing the best that can be done. The details here matter. Roll up your sleeves and It’s essential that a leader expresses the desire to dig into the nuts and bolts, the design and par- look after the welfare of the business and the peo-
ticulars, the implementation of the plan you put ple in the business. To make commitments that are DHARAPAK PHOTO/CHARLES AP RIGHT, TIMES/REDUX, YORK NEW CROWLEY/THE STEPHEN TOP, PHOTOGRAPHS:
58 brunswick review · issue 20 · 2020 consequence, the more one needs a team of the high- est caliber, with deep experience, a team that func- tions in a seamless and highly productive way.
Are you discussing this economic crash with your fellow veterans of the last economic one—Sum- mers, Geithner and company? I am. To some extent, the band has gotten back together. I was getting emails as late as half past mid- night last night from Summers and Bob Rubin, and there’s a fair amount of chatter about what are the right policy interventions, and how would one think about design questions? We’re not in government, obviously. But some on the Hill are asking for our views. What’s the most effective means of administering a set of programs to get money out to individuals and small businesses? ironclad may be irresponsible. It’s very hard to know During the crisis, Mr. What exact methods? How should a set of small-busi- what course this or any other crisis will take. But be Wolin, above left, worked ness-credit support be structured? Things of that sort. closely with, among clear about planning through a range of possibilities, others, Assistant Treasury and be clear about doing so with an earnest desire to Secretary Michael Barr Are private-sector leaders eager to help? take care of the people on whom a business depends and Diana Farrell, Deputy The private sector is very keen to pitch in. This is a Director of the National and who depend on the business. In all of that, be Economic Council. moment of great national and global importance honest and sincere.
When you talk about those dramatic days at the Treasury, you invariably cite a long roster of former colleagues—Tim Geithner, of course, but also people like Diana Farrell and Michael Barr. It’s clear that a large number of you developed into a tight-knit team. In these moments, one needs to collaborate. You want all hands on deck. The issues are too compli- cated for any individual to think through, or any small group of individuals. These are huge questions that require the input of fully functioning, effective, collaborative teams—teams to ask questions, chal- lenge assumptions, work in concert, think about implementation. That’s what we had overwhelm- ingly in 2008–2009. It’s absolutely critical.
Is that true in the C-suite as well as in the top White House Press and sensitivity. Meanwhile, on the government offices at the Treasury? Secretary Robert Gibbs side, broadly speaking there’s an interest in learn- listens as Deputy It’s true everywhere. It’s true in the private sector, it’s Secretary Wolin briefs ing the lessons of history from people who’ve led true in the public sector. It’s true for problems that reporters at the White through real economic stress, if not through these are globally huge, as this pandemic is, and it’s true House in the spring particular circumstances. of 2010. for problems that are smaller. A team working col- What I’m observing is that our lawmakers today laboratively, in almost every case, is going to increase want to be the beneficiaries of a wide circle of input, the quality of the thinking, the rigor of the analysis, thought and constructive feedback. Hopefully, that the extent to which ideas are tested and vetted and will contribute to better policy interventions and considered from all perspectives. It almost doesn’t better outcomes. u
matter what exactly the context is, although obvi- kevin helliker, a Pulitzer Prize-winning former Wall
PHOTOGRAPHS: TOP, STEPHEN CROWLEY/THE NEW YORK TIMES/REDUX, RIGHT, AP PHOTO/CHARLES DHARAPAK PHOTO/CHARLES AP RIGHT, TIMES/REDUX, YORK NEW CROWLEY/THE STEPHEN TOP, PHOTOGRAPHS: ously, the bigger the problem and the greater the Street Journal writer, is Editor of the Brunswick Review.
brunswick review · issue 20 · 2020 59 In Their Own Words HAYLEY SINGLETON
Under stay-at-home orders, a tradition spread from to me, nor is ignorant commentary by well-meaning one Brunswick office to another: At day’s end, a people new to any person of color. My boss at my last colleague sends a short essay to his or her working- job spoke proudly of how she didn’t see me as Black from-home office mates. The Review is selecting a few but as a person, as if the two were mutually exclusive. to share with a larger audience. On July 10, Hayley I have been asked by strangers more times than I can Singleton, an Executive Assistant, shared this with her count “what are you?” as if I am some fascinating new New York colleagues. species they’ve discovered, as if my non-whiteness is a curiosity they are entitled to examine. This isn’t new, yet the comfort of white people justifying casual racism to me, at a time when the racial divide in our country is so stark, puts me in a particularly uncom- fortable position. The way I see it, our problem isn’t hate so much as it is willful ignorance. It is a society desperately clinging to the fantasy of a utopian post-racial world because to acknowledge racial inequality is to accept culpability. So instead we relegate the concept of racism to the arms of Jim Crow and pretend we’ve left it far behind. What I’m hoping to convey is that racism is not just the KKK and segregated drinking fountains. It is far more insidious. When it was no longer able to live happily on the surface of our lives it slipped deeper, weaving its way into almost every aspect of our society, a rotting patchwork of injustice sewn into our nation’s ideals. The ignorance I and all “Too Black & Not Black Enough” those who look like me have faced, though not always a threat to our physical safety, is much more than an s a woman of mixed race i am in the unpleasant comment here and there. It’s a theft of unique position of existing in two worlds. identity. It takes all that you are and all that you’ve I am consistently both too Black and not done and strips that away until there is nothing left Black enough, living in an ambiguous mid- but your skin. It is the reinforcement that we will Adle ground between two often opposing never be equals. That is racism. communities. I am not Black enough to seem threat- Brunswick’s What I have struggled with these past few weeks is ening to my white neighbors, but I am Black enough hayley remedying the racism of those who don’t believe in it. to be told by a high school classmate that I only got singleton, People who consider themselves allies but whose sup- into a prestigious college over him because of Affir- a woman of port wavers as soon as a window is broken or a TV is mative Action. Since George Floyd’s death, my Black mixed race, stolen, as if those items are worth more than our lives. friends speak to me of our shared anger and fear. We reflects on the How do we solve a problem believed to be extinct? are Black together. My white family and neighbors conversations, How do we wake the self-proclaimed “woke”? I don’t feel comfortable talking to me about how rioting isn’t judgments and have the answers, but I have to believe it can be done. the right way to protest. “It’s horrible what happened perspective I’m sure by now at least 99 percent of you have seen to George Floyd,” they say, before qualifying and jus- that come with Hamilton (thanks Disney+), so you’ll be familiar with tifying his death with “but…” We are white together. “existing in Lin-Manuel Miranda’s words of wisdom: “History To many of the white people in my life, I am a more has its eyes on you.” It has its eyes on all of us. This is two worlds.” palatable kind of Black, so much so that they are able a moment for our country, a chance to be better than to forget my Blackness because it doesn’t align with those that came before. And I am hopeful that we are their stereotypes of it. I grew up in a suburb, I work seizing it. I see in the crowds of protesters people who in corporate America, I’m a nerd that loves Russian look like both my white mother and my Black father. literature and The Lord of the Rings. I am not like the I hear Al Sharpton, Ayanna Pressley and so many oth- “other” Black people by whom they feel threatened. ers speak, and it’s not just the Black community that’s My kind of Blackness is comfortable enough for my listening. Change will not happen overnight. But I white family and friends to use my existence in their have hope that one day the two worlds I inhabit will
lives as proof they are not racist. None of this is new stand as equals on common ground. u SINGLETON MS. OF COURTESY PHOTOGRAPH:
60 brunswick review · issue 20 · 2020 erald parsky is chairman of los angeles -based Aurora Capital, a private investment firm overseeing more than $4 billion in capi- tal. After serving as Assistant Secretary of the GUS Treasury from 1974 to 1977, he became a Private Equity Senior Partner at Gibson Dunn & Crutcher, before founding Aurora Capital in 1991. A graduate of Princeton University and University of Virginia School of Law, he served for 12 years as a Regent of the University of California. That background gives him a singular perspective on the impacts of the pandemic, both economic and social. He offers the Brunswick Review his thoughts VISIONARY on the outlook for private equity firms, the role of government and the alienation of the younger gen- eration. Where all else looks gloomy, he is heartened by what he sees as the basic goodness of Americans.
The pandemic has exposed “fault lines in private markets: deal leverage recently reached a new high, and multiples paid in recent months reached a multi-year high,” says McKinsey. What will recovery look like for PE? The situation was in part caused by too many PE firms having an enormous amount of “dry powder” to invest (about $900 billion). The recovery will be gradual, and the returns for investments already made could be much lower than in the past. One positive consequence will be the PE industry’s return to a more traditional investment approach; namely, paying a reasonable multiple for a company, applying financial and operating expertise, selling the company and achieving a net IRR that is mean- ingfully higher than investing in public equities dur- ing the same period. In this reshaping process, inves- tors will reward PE firms that remained disciplined during the overheated years.
How should PE firms respond to COVID-19? A PE firm should reach out to each of its portfolio companies to guide them through this difficult time. Each portfolio company should be asked to stress gerald parsky test its balance sheet and operations to evaluate the impact of a protracted downturn/recession, and talks with Is there a repercussion or effect from COVID-19 determine whether it could withstand a 40 to 50 per- Brunswick’s you’re surprised isn’t getting more attention? cent decline in revenue in 2020. harry w. clark There will be significant, negative, long-term about how the effects of the magnitude of government debt that What’s the best piece of advice you’ve heard pandemic is is being created—and more is coming. As a result, during the crisis? re-shaping the government will have an ever-increasing role in all Do not underestimate the length of the economic priorities of of our lives and this needs to be carefully managed. downturn/recession and be sure each of your com- private equity Deficit financing carries with it a very real risk. panies has adequate liquidity. Where appropriate, and society. When interest rates rise, the cost of this debt will
ILLUSTRATION: ANDREW COLIN BECK COLIN ANDREW ILLUSTRATION: draw down credit lines to create cash reserves. be significant.
brunswick review · issue 20 · 2020 61 GERALD PARSKY
Are there similarities with historic events here? Any personal thoughts, economic or otherwise, Does this feel like a more accelerated version of about life during lockdown? previous crashes or is it uncharted territory? It has made me realize how important family and Except perhaps for the Depression, we have friends are in one’s life. It also can help you realize not experienced anything like this in previous how fortunate you have been to have lived in a free “crashes”; in part because this has involved a society and a capitalistic economic system. complete shutdown of the world economy. That A crisis can help bring about the best in people. was not the case in the 1970s, 1980s, 1990s, or in Just consider the number of Americans who risk 2008. Specifically, there could be a 30 to 35 per- their lives every day to help those who have been cent decline in GDP in the second quarter and it struck by the virus. I am optimistic that the kindness could remain for the rest of this year. Even before and support we have seen during these difficult days COVID-19, I thought it was likely that we would will continue to shape us as we recover. have a recession in 2021. The Los Angeles mayor appears to be a strong Has the move to remote working been seamless “WE CANNOT leader at this moment. Do you feel reassured or for Aurora, or has it required some fine tuning? not by our political leadership in this pandemic, It has been relatively seamless. After the experi- AFFORD A local and national? ence of 2008, we adopted a “disaster recovery plan.” GENERATION There certainly are examples of leadership from our We took immediate action in line with the direc- political figures. However, there remains too much tive from the Governor of California. All staff were LOST IN ANGER. emphasis by some on blaming others for this crisis. provided remote access to enable them to work as THE YOUTH As a result, the public is not reassured enough that efficiently as possible from home to keep them safe. this crisis will be addressed effectively. There will be OF TODAY NEED plenty of time to evaluate what was not done to pre- Do well-managed companies welcome or resist TO BE THE pare for this crisis. Now is the time to come together the management partnership Aurora offers? to address the present and prepare for the future. Bringing operating talent to a company is welcomed BUSINESS by management. However, the executives we bring LEADERS OF Do you see any silver linings to the pandemic? need to provide a light, but effective touch or they It has provided us many examples of the goodness of will be resisted. My close friend and partner, Larry TOMORROW our people. All you have to do is observe members of Bossidy, the former CEO of Honeywell, is a perfect AND MANY OF the emergency response teams, who put themselves example of how positive an operating executive can in real danger every day helping others, in order to be in private equity. He chaired a number of compa- THEM FEEL understand what so many Americans are like. nies for us, several of which faced stress in the econ- THEY ARE BEING omy. In each instance, the executives welcomed his Should the financial and environmental advice, operations significantly improved, and we LEFT OUT.” challenges facing California be an important realized outstanding returns. concern for investors everywhere? California is the fifth largest economy in the world; You talked in a recent interview about now larger than Great Britain. However, the State’s millennial anger over income inequality and Public Employee Pension Systems have enormous the cost of education. Does that anger “unfunded liabilities,” which, for healthcare alone, represent a threat to economic stability? now approach several hundred billion dollars and We cannot afford a generation lost in anger. The growing. In addition, California has a tax system youth of today need to be the business leaders of that relies too heavily on the personal income tax, tomorrow and many of them feel they are being the most volatile form of tax. As a result of COVID- left out. Before COVID-19, a survey of millennials 19 and the recession to follow, California’s revenue indicated that 23 percent declared that “they have shortfall over a two-to-three-year period could no friends.” The COVID-19 pandemic, and the approach $70 billion to $90 billion, thus dwarfing the social distancing required, could increase this feel- budget reserve that existed before this crisis of about ing of loneliness. As we come out of this crisis, we $20 billion to $25 billion. Such a situation for Califor- have to address the feelings of our youth. If we do nia’s economy should be a concern to all investors. u not, we are planting the seeds of an “angry, lonely harry w. clark is a Senior Counselor to Brunswick. generation.” Such a result will have a significant He was Counselor to Ambassador Bob Zoellick and the impact on our economy. Office of the US Trade Representative.
62 brunswick review · issue 20 · 2020 In Their Own Words VEDIKA KUMAR
is necessary. As advisors, Brunswick influences how companies behave, how they talk about issues, how they can use their resources to change the world, to Half a World Away make it a better place. Holding on to this broader vision has kept me motivated, helped me stay up and Under stay-at-home orders, Brunswick has developed What does “work stay alert during my odd hours. a new tradition: At day’s end, one colleague at a time from home” The world is simultaneously mourning and fight- sends a “Thought for the Day” to all their working- mean when work ing—for health, for equality and for new hope. There from-home office mates. Funny, sad, inspirational, is New York, but is a lot of sadness, a lot of frustration and anger. I philosophical—they help us feel connected to one home is India? only hope that everyone has a few moments of joy to another during a time of separation. We are selecting vedika kumar, hold on to, a few loved ones to turn to, and a vision a few to share with readers. Vedika’s was sent June 10. from Bruns- to look toward to get through this difficult time. Here wick’s New York are some moments of joy that I’ve held tight: n march 7, i boarded a flight to go back I was able to prep my father for his first live CNBC office, shares to India for a week to visit my family. Ninety- interview—while he made an incredibly terrible cli- five days later, I am still here. her pandemic ent, he made a very proud father as he experienced a I wasn’t expecting a long stay. I packed a perspective. little snippet of the work that we do. Overy small suitcase and even left my portable I couldn’t be in New York to join the recent pro- laptop mouse in New York, in hopes of shutting off tests, but having a steady paycheck meant that I’ve from work while I was away. But COVID-19 went been able to contribute to causes I believe in. Con- from just another virus to a pandemic. India went necting my fortunate ability to work to giving back from operating 100 US flights to 0, in just seven days. has helped me attach value to my days. Time has become a strange concept. In an attempt to stay close to my New York work schedule while living nine time zones ahead, my new workday starts at 6:00pm and ends at 3:00am (on the good days). I eat lunch when my parents eat dinner, and I sleep when the sunlight starts to trickle into my window. The biggest struggle has been staying motivated, especially while watching the pandemic unfold in my developing country. Sixty percent of India’s population, an estimated 812 million people, live in extreme poverty, unable to even sustain basic needs such as food and water. Each of them lives on less than $3.20 a day. India’s lockdown has meant that work, transportation, and support stopped for most of the population, making already harsh conditions even worse. A few days after I settled back into life at home, a young man approached me as I walked my dog, ask- ing me politely, “Do you know how I can get to Agra Vedika with her parents My mother visited our local florist two months from here? I am walking there and need directions.” at a pre-COVID back and found him struggling to put food on the celebration in India. He carried his life with him in several bags, shuffled table for his family. No one was buying flowers. He his feet in torn slippers. Agra was 160 miles away wanted to shift to selling fruit instead. Moved, my from where we stood. It would take him 87 hours of mother did what she could to support him. His new walking continuously to reach his destination. He fruit shop seems to be doing well, and he has vowed was just one out of 812 million. to repay her kindness by being kind to others he The world’s most disadvantaged are suffering encounters who are struggling to make ends meet. in the harshest of ways. Everywhere, communities All this also keeps the words of Japanese Buddhist struggle to survive. I’ve looked to my work to pro- philosopher Daisaku Ikeda in my mind: “Our real vide me with purpose. The current social and politi- strength lies in our capacity for empathy with others cal climate has shown that it is not only important and the action we take on their behalf. As long as one for corporations to take a stand on social issues, it has hope, one has strength.” u brunswick review · issue 20 · 2020 63 s the first wave of the pandemic spread across the world, economists saw a differ- ent wave looming on the horizon: bank- ruptcy filings. Their worst fears, however, Adid not materialize—not yet, at least. Many now worry that trillions of dollars of fiscal support WHEN deployed during the pandemic may have delayed, but not averted, a wave of bankruptcies. The Federal Reserve Bank of San Francisco said in an October report that “Chapter 11 bankruptcy filings are running at their fastest pace since 2013.” They added that corporate defaults in 2020 have YOUR CRISIS “surpassed the total for all of 2019” and are on course to be the highest since the 2009 financial crisis. Government stimulus, federal and state policies to encourage forbearance certainly helped. So too the return of business activity—US GDP surged 33 STORY percent in Q3 2020. But stimuli and forbearance have limited life spans. Credit insurance company Euler Hermes estimated in August that by the end of 2021, every region worldwide will post double-digit increases in insolvencies, with the biggest surge expected in HITS North America—up more than 50 percent from 2019 levels. This looming wave promises to be unlike its pre- decessors, largely because of the uncertainty that will inevitably surround it. CHAPTER 11 There remains little clarity, for instance, on how long significant parts of the economy will remain shut down, how far consumer spending will drop The current and Air France-KLM, for example, announced and stay depressed, and the overall shape of eco- rough passage executive salary reductions; Carnival Cruise Lines nomic recovery. Such uncertainty is likely to make may not end donated ships as makeshift hospitals; BP offered agreeing on a reorganization plan more difficult. So with COVID-19. free fuel at retail sites for emergency workers. As too avoiding litigation in bankruptcy court. Brunswick’s the pandemic continues, so does the opportunity Communications during both out-of-court for businesses to establish goodwill and build trust. restructurings and formal bankruptcy processes jonathan Employees and customers will often feel over- can play an important role as companies navigate doorley and looked in a restructuring process yet they are this terrain. In particular, businesses should keep will rasmus- essential to the plan’s success. Politicians may also four points in mind. sen lay out steps raise their voices on bankruptcy and restructur- to take now. ing proceedings. Companies that have a history of Trust and goodwill now are essential. Restruc- doing their part for their community—particu- turing resembles a battle between warring larly in the heat of a crisis—are far more likely to 1tribes, where factions within tribes often have get favorable consideration. strongly differing interests. Companies will have an easier time—whether negotiating with stakehold- The government will take a big role. Given ers to stave off bankruptcy or building consensus the magnitude of the health crisis, we’re likely around a reorganization plan—if they have already 2to see a greater level of political involvement established goodwill during the darkest days of the than in previous bankruptcy waves. Companies COVID-19 crisis. taking CARES Act loans in particular will face On that front, many companies have solid greater scrutiny over their treatment of workers ground to stand on, having displayed compassion and executive pay. Taxpayers may become a direct
and shared sacrifice in a time of need. Marriott shareholder in the most distressed industries, like ILLUSTRATION: ROBERT NUEBECKER
64 brunswick review · issue 20 · 2020 Despite the possibility for a more collaborative approach, it’s wisest to brace for an aggressive fight—one likely to include leaks and misleading information. Take full advantage of the milestones, which may WHEN include a forbearance agreement, disclosure state- ment hearing and approval, or the start or outcome of a confirmation hearing. Companies prepared to seize these moments reach critical stakeholders with messages that resonate. The efficacy of those messages is multiplied if they’re supported by third-party influencers. These kinds of relationships take months—years, even— to build. Yet cultivated in advance, these influ- encers can help amplify your message and lend it greater credibility. STORY A key element in winning the battle in tradi- tional media is educating critical reporters. Usually only top-tier financial outlets will have dedicated reporters on this beat; building rapport and shar- ing information puts your best foot forward. Infographics, messaging and videos can also HITS help you tell a compelling story online. Better than piecemeal online posts is a coordinated, in- depth digital communications strategy. Tools such as pixel tracking, issues and keyword targeting, coupled with digital advertising, will help identify CHAPTER 11 and reach key targets.
Prepare a strong turnaround narrative with airlines. These could spark even more controversy a compelling vision for the future. In a bank- than the Troubled Asset Relief Program (TARP) 4ruptcy, you have to win the support of the unleashed in the last financial crisis. court and stakeholders for your turnaround plan to The government is also pushing stakeholders emerge from Chapter 11. Despite the uncertainty to work more collaboratively: Regulators includ- swirling today, that still remains true: Those who ing the Fed, FDIC and OCC have eased reporting can best articulate a plan will have an upper hand. requirements around troubled loans, while encour- The highest cash bid may not win approval. The aging banks to work together with borrowers. bankruptcy court approves the rules for the auc- This evolving and increasingly complex land- tion of assets, and the debtor can exercise its busi- scape will require new considerations. Chief among ness judgment to determine the best bid, subject them: an ability to understand a wider range of to court approval. In some cases, the debtor and stakeholders’ concerns—and then deploy tailored, the bankruptcy judge might accept a lower bid if targeted messaging. it is more likely to allow the business of the debtor to continue in some form, thereby better protect- Prepare for a tough fight and focus on win- ing all the involved parties, including suppliers, ning key victories. A bankruptcy process jonathan doorley employees, and the communities where the assets is a Partner and 3 carries multiple opportunities for someone— will are located. rasmussen is a Director whether the involved parties, or outside stakehold- in Brunswick’s Financial That gives a glimpse not only into the complex- ers—to set the narrative. Situations team in New ity of the process, but also the critical role that Establish a game plan in advance, deploy com- York. Brunswick was communications can play in it. ranked the No. 2 PR Firm munications that will build momentum through Delivering a clear, compelling narrative that for Bankruptcy advisory a potentially aggressive battle, and mete out new in The Deal’s first quarter addresses public interests has always been impor-
ILLUSTRATION: ROBERT NUEBECKER information judiciously to keep the upper hand. 2020 Power Rankings. tant—now, it is essential. u
brunswick review · issue 20 · 2020 65 D 66 them late. And now we’re thecurve.” behind still up doing thosethings, all but we ended updoing players into aspossible. asearly thegame We ended above’ thediagnostic to of all get approach andtrying I think, urgency abouttakingan asense of the ‘all of for tests. As hetold CNBC, shouldhave“There been, private business andgovernment to address theneed academia, together thework of was innotbringing to wellover 190,000inrecent weeks. Twitterown from hasrisen following 57,000lastfall receive.ing upthenotice thoseviews Dr. Gottlieb’s ing hisformer FDA Commissioner’s advice, ratchet swung to hisside, thePresident retweet with himself White House officials. attacks experiencedthe political by other former to playtried down thethreat—while spared being announcements from the President—who at first has allowed to openly himtheability contradict Journal op-eds. His even-handed professionalism andWalltemic advice innetwork interviews Street
Perhaps theUS’s mistake, mostcritical hesays, Instead, theTrump administration’s has policy ing out dire COVID-19 and sys- warnings shadow coronavirus czar” intheUS, churn recently become Politico what called “the the USFood andDrug Administration, has r. scott gottlieb, theformer o head f - - -
Physician A PHYSICIAN’S ment andbusiness, andhisapproach to leadership. attheFDA,time govern including thebalance of - radar, on hesharedtopics hisviews related to his last year, before was on anyone’s the current crisis business,the workings of government andmedia. standable to andaclear-eyed thelayperson of view has aknack for makingcomplex matters under a respected figureboth parties. in chaos. After hisdeparture in2019, hehasremained Trump were administration seen to into falling be foring praise hisagencyother offices while inthe anew standardset asFDA Commissioner, earn Dr. of acteristic Gottlieb. Appointed in2017, he late late In aconversation Review theBrunswick with In to addition expertise, hismedical Dr. Gottlieb and focus on directness That efficiency are char br unswick unswick review - - - in theUS. ofmedicine tion theevoluabout raul damas Brunswick’sto talks gottlieb scott dr. Commissioner Former FDA hearing. hearing. Pensions Committee and Labor Education, Health, during aSenate Dr. Gottlieb Scott testifies Commissioner designate, In 2017, theFDA as
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PHOTOGRAPH: ZACH GIBSON/GETTY IMAGES PHOTOGRAPH: ZACH GIBSON/GETTY IMAGES erative medicine. safely,forms like cell andgene therapy andregen imperative to advance help plat new technology opioid addiction, pricing, safety, drug drug andthe approval. In 2017, there were like new priorities 1997,of which created pathways like accelerated thatwastheFDA of growth Modernization Act HIV. targeting quickly drugs enough out The - for to notmoving criticized was being market to move to market drugs more efficiently. process thereview focuson modernizing was alotof years before were they approved intheUS. So, there approvedbeing inEurope months andsometimes conditions medical were important targeting drugs lag” between theUSandEurope. wasthat view The process.review a There was discussion of “drug the scrutiny was overlot of the the efficiency of forexpectations theagency. In 1990s, theearly a haschanged, set opportunity people’s along with evolved priorities The over atFDA time asthe would have beenyour priorities in1992? You FDA became Commissioner in2017. What culture thatembraced theseneeds. obligations. So, to make Itried sure we awork had to offline be adjustor their workday family to fulfill people’swhat were—when needed boundaries they lies. Iunderstood itwasto how know important work their andfulfill commitments to their fami it was to allowimportant some people flexibility to worked young alsohad children. with Iknew how I managedmy team atFDA. Many I thepeople of It probably influenced me most directly inhow ence your leadership style andpolicy thinking? How does beingafather of three daughters influ Iwasastudentnals while andresident. jour medical anumber of of working on thestaff Ididn’teven if time. do itfull Ieventually ended up newspaper. Iknew Iwanted to continue publishing, sue school, medical Iwasalready my editing college physician of authors.history When Idecided to pur ing other interests, There writing. isalong especially something thatcould allow meto continue expand aprofession. of to apart be Ialsosaw as medicine andthe chance lifelong alsooffering learning while and rewarding for service work,the opportunity the profession the nature of itself. of because It meant doctors on had me. But to Iwasdrawn medicine It’s hard to isolate influence what my proximity to a psychiatrist, influence careeryour choice? How did beingtheson of aphysician, particularly brunswick review This was also during a time period when FDA when period a time was also during This
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------HEALTH RESPECT TO HOW I THINKFEDERAL AGENCIES HAVE ADAPT BUTARE BEEN SLOW TO CATCHING UP.” GETS SHARED. “THINGS HAVE INFORMATION CHANGED A LOT WITH SECTION
to have. these are reasonable for expectations patients has gottenfor drugs a evaluating lot more advanced, about them quickly. At thetechnology when atime And there when are side effects, we wantto know deliver will thatadrug itspromisedtainty benefits. and benefit considerations remain inbalance. approval.potentialtime benefitsattheof So, risk the approval. But we alsoknow alotmore aboutadrug’s thatcould amedicines’ against drugs weigh of safety drugs. So, able tobe we reveal might more about the of new to betterhas ourability definebenefits the hasincreased, safety of butOur expectation sotoo barfor safety.our higher Idon’t thinkthisistrue. years approved notbe ago might today of because new medicines. of thesafety of expectation better through new tools andscience, soshouldour technology. toAs evaluate ourability gets medicines I thinkthisisanappropriate advances in reflection of new medicines. of andlong-termate safety theshort- cant investment intheagency’s to better ability - evalu andsignifi was thegrowing emphasis safety on drug mostprofoundThe change asitrelates to new drugs long-term changes did you seeintheagency? returned in2005, andof course in2017. What You first worked attheFDA in2002, then tional tobacco. but would nolonger able to be access itfrom tradi for adult smokers wanted to still who usenicotine we saw thee-cigarettes asapotential alternative ing to regulate nicotine in combustible tobacco, gates.regulatory At moment we thevery were seek e-cigarettes bring through anappropriate of series addictive. At thesametime, we took steps to help cigarettestible to render them or minimally non- arettes by to seeking regulate nicotine incombus - 2017 to cig adult smokers more migrate rapidly off can improve their health. quit to cigarettes e-cigarettes, andtransition they a currently addicted adult smoker And if can fully not safe. But are thansmoking. they lessharmful adult smokershelp quit cigarettes. E-cigarettes are alternative for currently addicted adult smokers, to tems like e-cigarettes could offer alessharmful We believed thatelectronic nicotine delivery sys that decision? particularly among minors. Whatdrove you to medical community concern e-cigarettes, about You led—in many ways ignited—significant What haschanged isthatwe wantgreater cer People say sometimes approved that drugs 30 So, we took some new steps inthesummer of 67 ------
GOTTLIEB
What prompted us to change our policy as it investment by venture capital and private equity in related to e-cigarettes was the data in 2018 showing new delivery models that are aimed at helping offer a tragic and shocking rise in the youth use of these more efficient arrangements for delivering care, or products. We did not foresee that magnitude of new tools to hospitals and other systems for enabling an increase in youth use of these products. In 2017, these outcomes. when we first advanced our policy, youth use of e-cigarettes was declining. The big uptick in kids How does medical training need to change? use of e-cigarettes was shocking to us and was a pub- Medical training already has changed. Medical lic health crisis that required strong and immediate students today are much more likely to embrace new steps. arrangements where they are employed by systems as opposed to being independent. When I was train- What does the US healthcare system receive ing, everyone wanted to own their medical prac- insufficient credit for doing well? “PEOPLE SOME- tice. Today, the majority of medical students want We deliver very good advanced care in the US and arrangements where they’re salaried employees benefit from new medical technology. I think we TIMES SAY THAT of larger systems and have more predictable work take for granted how advanced our care is for seri- DRUGS APPROVED arrangements. The expectations have changed dra- ous conditions. We take for granted how much inno- matically, in part driven by the changing desires of vation is developed largely if not entirely for the US graduating medical students, and in part driven by market, and how much Americans benefit from changes in the structure of medicine where the kinds these advances. Without the investments we make of private practice opportunities that were the norm in advanced care, we may not have the same medi- 20 years ago are no longer as prevalent. cal innovations that we’re benefiting from. American At the same time, I think students are being consumers drive innovation. trained to be much more cognizant of cost and effi- Where we sometimes don’t succeed is when it ciency. This is good, to a point. You want the impera- comes to routine care and a lot of tech-based inter- 30 tive to be on achieving the best outcomes for the YEARS AGO ventions. We do medicine really well at the high end, patient. But I think physicians should be account- where patients have serious conditions. Where we MIGHT NOT BE able for costs to the patient and understand how cost sometimes don’t do a good job is on the more rou- APPROVED TODAY impacts a patient’s access to care—their ability to tine aspects of primary care. remain compliant with care—to achieve good out- BECAUSE OF comes. The system should worry about the system- You’ve been most prolific commenting on the OUR HIGHER BAR wide costs. The physician should be focused on their drug industry, but you’ve also noted it’s a rela- patients and cost incurred by patients is a big factor. tively small percentage of total health spending. FOR SAFETY. Hospitals represent a much larger segment of I DON’T THINK THIS You’ve created a niche for yourself on social health spending. How can they change to help media. Your Twitter account has 57,000 follow- lower system costs? IS TRUE.” ers. Why do you use social media platforms? A lot of the cost and inefficiency in the system is on Social media has been a very effective tool to engage the services side when it comes to the delivery of care the public and also get information out quickly. in hospitals. It’s hard for government policy to impact I found it to be invaluable when I was at FDA as a these trends. It’s hard to set rules in Washington that way to do rapid response but also to offer perspective are going to drive more efficiency in delivery. Often on breaking issues. I think agency heads are going what we do in Washington drives the opposite result. to have to rely on social media channels like Twitter Politically, it’s also harder to advance policy in more and more. The news cycle moves so fast that in Washington that could be adverse to hospitals. They order to get your information and perspective into are distributed around the country and are generally stories you need to be able to disseminate it through the top employers in their congressional districts. So, these vehicles. the hospitals, as a group, have a lot of political influ- Things have changed a lot with respect to how ence on Capitol Hill. raul damas is a Partner information gets shared. I think federal agencies I think as more of the financial risk for the delivery in Brunswick’s New York have been slow to adapt but are catching up. If you of care shifts to providers through payment bundles office. Previously, he wait a day to respond to something important, you and other forms of capitation, that’s putting more worked in the White House could have lost the chance to shape the narrative to under President George pressure on provider systems to improve their effi- W. Bush and with Pfizer reflect your goals and incorporate what you believe ciency. And you’re seeing at the same time a lot of and Purdue Pharma. are key elements to a story. u
68 brunswick review · issue 20 · 2020 DHEALTH SECTION Epicenter the indian nobel laureate abhijit banerjee One state’s an outbreak of the Nipah virus, which lasted a lit- INhas said India must be “fast not clever” in defeating readiness could IAtle over a month and claimed 17 lives. A year later COVID-19. In Kerala, the state first hit by the virus, serve as a model there were major floods in which over 100 people they seem to have been both, earning the tribute: for the nation were killed and thousands evacuated. “Kerala leads, India follows.” The sprinters and strat- and the world. Soon after the COVID-19 outbreak began, early egists in Kerala’s coronavirus team line up behind victories left Ms. Shailaja dubbed “Coronavirus “Coronavirus K.K. Shailaja, a former junior school science teacher, Slayer” by news outlets and since then she and her women’s activist and now health minister in the Slayer” chief minister, the veteran CPI (M) leader Pinarayi communist-ruled territory in southwest India. k.k. shailaja, Vijayan, have commanded a national audience. Ms. Shailaja is a textbook Kerala public servant. Kerala’s Health Kerala’s road-tested disaster protocols are serving as Her role as teacher is so highly respected that it is Minister, talks important models for the crisis now being faced by added to her name: K.K. Shailaja Teacher. From to Brunswick’s the rest of the country. her teenage years, she was also a functionary of the khozem Communist Party of India (Marxist). The CPI (M) merchant. kerala’s early action ushered her into the local assembly two decades ago On a day toward the end of January, Ms. Shailaja but the dual life of teaching physics and chemistry to saw an online item about a virus in Wuhan. teenagers and the Kerala assembly was crushing. “I worried that this virus would come to Kerala “This is about serving society,” she says of her because so many of our students were on courses in careers. “In science, I would encourage my students Wuhan. So, we started our precautions. From Janu- to look beyond their textbooks and understand the ary 24 onwards, we set up the state control room role of science in society. Politics I love because it [the war room]. Many special groups came into allows me similar interaction with people, this time being to address this potential pandemic. We knew in healthcare and social justice and women’s devel- what to do because we had been there before—with opment.” But eventually she had to choose. “I was Nipah—so we knew the protocols, we understood in school and after 4:00pm each day I was going to the chain of activity.” political meetings. I could not do both and be truth- “That first student tested positive; he came into ful to either school or politics. So, I became one for our custody, was quarantined, treated and recov- politics.” ered; it was a victory for Kerala.” Attention quickly Brunswick Review spoke with Ms. Shailaja as shifted from returnees from Wuhan to migrants Kerala was, for the third year in a row, handling a from the Gulf, where millions of Keralites work statewide health disaster. In 2018, the state had seen and who send money back home, providing an
brunswick review · issue 20 · 2020 69 “CORONAVIRUS SLAYER” economic lifeline for the region. impacting everything from manufacturing to ser- Kerala’s first-mover status was watched across vices and in between. India. In March, the country’s best-known broad- A big part of that “in between” is India’s entire caster noted that Kerala was consistently ahead of informal economy, its supply chain and heartbeat, Mr. Modi (whose ruling Bharatiya Janata Party bit- where four-fifths of the workforce is employed—at terly opposes the CPI (M) in Kerala), often by several least 350 million people. The pandemic has unrav- days, with initiatives on fiscal support, free rice, lock- elled this supply chain, costing migrants their jobs. down, and community kitchens and free food. India’s public healthcare system is under-funded In early April, Kerala’s curve began to flatten, and unprepared for COVID-19’s mass fallout, or while elsewhere in India it was rising. The state its by-product, such as hunger. Health and hunger saw a drop in active cases in the first week of April, are obvious and immediate threats to migrants, the down 30 percent from the previous week. The rate poor and elderly, and they are the current focus of of recovery in Kasaragod district, for example, home official food and grains support. to half of all reported cases in Kerala, was three times If that were not enough, the pace of GDP growth faster than the national average. Kerala’s prospective had weakened sharply between March 2018 and lockdown exit was unveiled in mid-April, also a first December 2019 and official unemployment was at a for the country. That allowed activities, such as small 45-year high. So just as coronavirus hit India’s shores homestead farming, crafts and retail, to resume. in the southwest in late January, India’s economy was already tumbling. india’s crisis At that point, the rest of India was seeing the out- beyond communism break continue to spread and the number of cases Health emergencies tend to show the better side of rise, causing Prime Minister Narendra Modi to communist rule in Kerala. The party became India’s announce an extension of a national lockdown by a first communist government in 1957 and since then further two weeks. “IN EARLY APRIL, it has been a consistent presence—either in power India’s positive cases and fatalities were initially or one step away. However their popular appeal and modest compared to big-population countries such KERALA’S their effectiveness in a crisis are both built not on as China and the US. However, as of November it CURVE BEGAN TO ideological slogans but on a foundation of commu- trailed only the US in total number of cases. A coun- nity engagement and development. try of 1.38 billion people, two-thirds living in rural FLATTEN, WHILE Communist governments have lavished resources areas (in some 638,000 villages), the rest in densely ELSEWHERE on building a network of primary and preventive populated cities and towns, India is exceptionally healthcare, topping national league tables and mir- vulnerable to a virus whose identity is invisible and IN INDIA IT rored in human development metrics. In addition, velocity a mystery. WAS RISING. " frequent disasters have given Kerala’s political execu- In announcing the lockdown extension, Mr. Modi tive, bureaucracy and police a practiced common noted that he was juggling between lives and liveli- purpose and rapid response capability. hoods, but as he spoke it was clear that livelihoods The Nipah outbreak in particular helped Ker- were the greater casualty. On TV, viewers see migrant ala develop the response that has proven effective workers with no money, having lost jobs at building against COVID-19. In a country of monsoons and sites, factories, shops, restaurants and other hourly- floods, collapsing bridges and buildings, Nipah was paid employment, walking from Delhi to their different because it yielded knowledge and expertise villages in the hinterland. They have become the to handle COVID-19: testing and tracing, geoloca- human face of a crisis that is bigger, more uncertain tion surveillance and data capture, social distancing, and more unusual than any economic shock before. livelihood support and aggressive public education. First, because of the broad economic shutdown, “Every system has its own method and ours here the scope of COVID-19 is bigger than the 2008 in Kerala works with the participation of the whole financial crash and it creates multiple big shocks in society,” Ms. Shailaja says. multiple geographies. Uncertainty also surrounds For decades, the treasury of Kerala, a small econ- the public’s continued tolerance of invasive restric- omy dependent on tourism and rubber, has leaned tions on behavior—social distancing works in urban toward social services. Local literacy is high while middle classes but is probably unenforceable in rural healthcare infrastructure runs deep to grassroots India, where most Indians live. levels. Primary healthcare centers are modelled on
Finally, this crisis’ economic impact is elastic, the UK’s general practice clinics. One innovation RELATIONS PUBLIC KERALA, INDIA OF COURTESY PHOTOGRAPH:
70 brunswick review · issue 20 · 2020 (with an eye on thriving medical tourism that brings K.K. Shailaja, Kerala’s community led to Mr. Sakhare’s design and launch foreigners to Kochi for treatment at a fraction of the Health Minister, earned of an app to connect doctors and patients worried the nickname “Coro- cost in Europe) is the creation of “harmony centers,” navirus Slayer” for about coronavirus symptoms, broadening direct based on an idea from Cuba. her swift, thoughtful communication of reliable information. A culture of democratic participation in each response in the early The minister of the moment, Ms. Shailaja, admits stages of the pandemic. “panchayat,” or village, rounds off a strong, endur- that more than Kerala’s crisis credentials are cur- ing social contract. rently on display, for India and the world to see. The “They’ve had communists here and others run- state’s entire system is being judged, she says, and ning the state, but basically the social pact is secu- that includes credible governance, healthy and edu- lar and strong: it’s about the people, and in crisis cated workers “and, most important, transparency.” the government, bureaucracy and police move into Those characteristics are equally prized by the action quickly,” says Vijay Sakhare, inspector general world of capitalist investment—a fact she readily
of police for Kerala. khozem merchant is a acknowledges. Kerala greets 1.1 million foreign visi- The emphasis on community creates unexpected Brunswick Partner and the tors to its fabled backwaters each year and investors benefits. A practice known as “social policing,” for Head of the firm’s Mumbai would be similarly welcomed, she says. But that must instance, embeds police in the community, going office. Previously, he wait for a post-coronavirus world. was a journalist with the beyond law and order to build pastoral relations Financial Times and Until then, “I always feel there is unfinished work
PHOTOGRAPH: COURTESY OF KERALA, INDIA PUBLIC RELATIONS PUBLIC KERALA, INDIA OF COURTESY PHOTOGRAPH: with communities. This constant contact with the President of Pearson India. and that troubles me.” u
brunswick review · issue 20 · 2020 71 HEALTH SECTION
t’s been 21 years since health insurer Discovery was first listed on the Johan- nesburg Stock Exchange. In that time, it has grown to become the country’s largest administrator of private medical plans and a leading financial services player, while also helping change health- and insurance-indus- try paradigms around the world. The com- pany moved aggressively in its early years, battling entrenched models across a number of industries. And now it’s leading the way Ifor sea change in the way the world views health- care in general. But rather than being able to celebrate, founder and CEO Adrian Gore finds himself in the middle of yet another storm as coronavirus threatens lives and undoes societal norms. Known for remaining positive in the face of the most difficult challenges, Mr. Gore is regarded as one of South Africa’s most innovative entrepre- neurs. He started Discovery from scratch and turned it into a multibillion-dollar company. The business created the Vitality behavioral incen- tive model, which pioneered the use of rewards O to encourage members to live healthier, thus also driving down medical costs. Lauded by business strategists as the epitome of the shared value, Vitality has been adopted by global insurance giants like John Hancock, AIA, Manu- AB VE life, Generali, Sumitomo and Ping An. Even before COVID-19, Discovery had faced challenges. Among the most pressing: In 2019, the FRAY South African government announced plans to introduce a universal healthcare insurance system. adrian gore, Short-sellers believed that announcement—light founder and CEO as it was on detail—threatened parts of Discov- of Discovery ery’s business model. Countering that narrative Group, talks to called for a number of steps, including explaining Brunswick’s to investors the value of Discovery’s complex actu- marina bidoli arial models. and georgie And then came the coronavirus. Rather than armstrong back off on innovation, Mr. Gore pushed further, about working for leapfrogging old business models in a quest to the greater good solve immediate and seemingly intractable prob- and the power of lems. Discovery teamed up with mobile company positivity. Vodacom, enabling anyone in South Africa with access to a mobile phone to book free virtual con- sultations and get advice from doctors. The com- pany also introduced financial flexibility measures to help people continue to pay their premiums. In the middle of all this, Mr. Gore took time to speak to the Brunswick Review about his outlook for the company.
72 ABOVE ADRIAN GORE
Tell us about your remote doctor consulting How do you see this affecting the debate around initiative with Vodacom. National Health Insurance? It’s a powerful partnership. We’ve had this front-line The world, and certainly healthcare, will not be the telemedicine platform called DrConnect, which had same after this pandemic. After the Great Depression taken years to develop and was largely on ice as South many nations adopted social security and national African regulations required all doctor consultations health systems. If we can create affordable and more to be done in person. Over the past few weeks we have sustainable systems that provide all South Africans managed to scale it up due to the national imperative access to basic healthcare, that would be a very posi- of treating COVID-19. We are moving very quickly. tive outcome of this crisis. More and more doctors are being trained up. With Vodacom we collectively committed an initial R20 How do you respond to criticisms that you’re million ($1.1 million) to fund 100,000 virtual con- overly optimistic? sultations. This is likely to increase. I am not a naïve optimist. I am not discounting that A large portion of the South African population we face real, significant challenges. Especially in these live in close quarters and millions are immuno- “WITH VODACOM times, we are seeing how poverty and inequality have compromised due to HIV and TB. Our tool allows real and tragic consequences. My plea for positiv- the doctor to check your symptoms virtually and WE COLLECTIVELY ity is not in spite of these challenges but because of then decide whether or not to refer you for testing. COMMITTED them—and it is rooted in cold, hard science. The aim is to support more efficient front-line test- Historical data shows the world has been getting ing and advice, relieving pressure on the healthcare AN INITIAL progressively better for most people. Notwithstand- system. In the UK too, we are offering similar virtual ing the enormity of the current coronavirus pan- consultations through Vitality Health. The process is demic, with the right attitude and clear action from currently limited to COVID-19 but we’ll learn what’s government and the private sector, I am sure that we possible. I expect that telemedicine will become will overcome this crisis too. New solutions are being ubiquitous in managing disease in the future. R20 developed as we speak. MILLION TO Humans are genetically coded to seek out nega- How do you feel about South Africa’s handling of tive cues. This was fundamental conditioning for the crisis and about Discovery’s contribution? FUND 100,000 our survival, but it would be a mistake to view the I think we have managed this very well. Our lock- VIRTUAL world though a declinist mindset. As South Africans, down was imposed early, decisive steps were taken to we suffer from that mindset acutely. A 2017 Ipsos flatten the curve, and we have done that. The num- CONSULTATIONS.” MORI global study showed that we are the gloomi- ber of infections is low, our hospitals are relatively est about how the world has changed and what the empty, we have built capacity, so up to this stage we future holds on a broad range of issues. We are not have done well. just impervious to progress but confident in our Decisions from here on will be crucial. President erroneous perceptions. We are confidently wrong. Cyril Ramaphosa has announced a risk-adjusted This mindset has dangerous consequences which approach to restarting the economy. The really vul- impede our progress. nerable sector is small-to-medium enterprises— A vision-based leadership approach is an antidote the quicker we get funding and liquidity to them, to declinism: acknowledging progress and creating the better. hope; seeing problems as real, but solvable; seeking For our part, I am proud of the impact we have out positive cues alongside negative ones when read- had, working with government on many areas of the ing our environment; and recognizing the potential response, particularly supporting SMEs. Coming and investing in it. This is how change happens. out of this, the new heroes are scientists, doctors and the myriad of healthcare workers and other support You founded Discovery in 1992, in your mid-20s, staff that work alongside them. with just R10 million in seed capital. Today it’s a The experiences of our global Vitality partners, multibillion-dollar business with 12,000 employ- particularly around digital tools and data, are critical ees. What gave you the courage to go at it alone? and we’re working closely with them. We are model- I was a young actuary at Liberty Life and was inspired ing everything. What is clear is that you’ve got to test by the sense of how an institution can change society. far more people, far more quickly. You’ve got to track It lit a fire in me. Liberty had achieved some global and trace those people who are positive. That’s the exposure. I was inspired and it gave me a great sense game changer in this battle. of ambition to build something that could positively
74 brunswick review · issue 20 · 2020 influence people’s lives. I remember sitting in their Then we started testing how this could be applied atrium thinking: “If you could build something like elsewhere—to life insurance, to banking. We this it would be unbelievable.” launched a credit card business with First National The journey started with a sustainable health Bank, changing credit card incentives. We innovated insurance product. It was always a big-picture, around dynamic pricing. We realized underwriting value-centric approach. It wasn’t ever about making and paying the same life insurance price for 40 years money. We disrupted on every front. We did not sit in did not make sense. We began to understand why the boardroom. We kicked the doors down on every people make bad choices and that risk was largely single thing. Brokers had never sold health insurance. behavioral. This was a profound shift in financial We created the distribution channel and restructured services. This wasn’t about loyalty programs. products. We tore everything apart. We took strate- Our purpose of making you healthier fed into gic risks. When we listed on the JSE, the government the growing concept of behavioral economics. It warned us they were going to take us down. We were was only in 2012 that Michael Porter came to South fighting. That’s what it takes. It was bold stuff. “WE ARE NOT Africa to speak at one of our leadership summits. The breakthrough at a philosophical level was His view was that society would do well if compa- understanding the concept of too few doctors in the JUST IMPERVIOUS nies, by virtue of their business models, created eco- midst of a terrible disease burden with HIV/AIDS TO PROGRESS nomic behavior that would benefit everyone. Our and high levels of communicable illness. We wanted business was completely aligned with our clients: if to keep medical aid costs under control. Our simple BUT CONFIDENT IN they are healthier, we are more profitable. Our ulti- concept was a medical savings account. I like com- OUR ERRONEOUS mate goal is that by being more competitive, we also plexity but there is power in simplicity. If you have help society. That’s a perfect, shared-value cycle. a savings account and people see they are spending PERCEPTIONS. their own money, they behave differently than they WE ARE CONFI- What about the analysts who fear you are taking would if they spent a third party’s money. Either you on too much risk by expanding the behavioral control cost by controlling the supply side or you give DENTLY WRONG. economics model into adjacent industries? people control on how to spend their own money. THIS MINDSET We never bet the house on anything. Nothing we do poses a systemic risk. The scrutiny we have been How did this develop into the behavioral eco- HAS DANGEROUS under is more about our organic growth model. nomics model? CONSEQUENCES It’s a function of “can you pull this stuff to scale?” I was inspired by the idea of Walt Disney’s purpose That is not an illegitimate question. We have been of making people happy. At a time when companies WHICH IMPEDE transparent around what we are investing in, new were only worried about shareholder returns, our OUR PROGRESS.” businesses like the bank. This takes time—brick-by- idea was to make people healthier. We wanted to brick organic growth. Had we been on an acquisi- empower people to make the right choices through tion trail, you’d have no idea if value was created. the savings account. I don’t get offended by this type of criticism. I lis- I started giving talks. I would tell CFOs of big ten to improve where I can. My team knows that I companies to forget health benefits—“currently your want to hear every comment and anecdote of what employees and you are on opposite sides of the fence, people are experiencing. I got a report last night at they are trying to consume everything they can, and 10 p.m., about 40 pages long. People email me. I read you are trying to fund it. So, we are going to change emails the whole night. Even in difficult times, if you the incentives.” They came to the same epiphany that can afford to build you need to do this. When the I had had. And from there things started to rocket. cycle turns—and it will turn—you’re in play. Regulators and competitors started to take notice. We were creating all kinds of discontinuities in the As a founder-led business, how much thinking market. We started to say: “if you belong to Discov- goes into your succession plan? ery, you can go to the gym for free.” This was 1997. Quite a bit. I tend to emphasize IQ and ability but Nowadays a gym is a utility but then it was a status there isn’t a “Discovery Person”; quite the opposite. symbol. What we did was make people earn the gym. marina bidoli is a There is value in diversity of thinking in pursuit of If they went to the gym enough times they could Brunswick Partner and the same goal—real deep thinking, both IQ and cre- go for free. That was the embryo of Vitality. It just Head of the firm’s South ativity. That’s what we are looking for—not an actu- Africa office. evolved. We were trying to incentivize behavior. It georgie armstrong is ary who is technically brilliant but doesn’t connect was an absolute consumer hit but at a policy level an Associate based in the dots. For succession planning, there are a lot of there were heated debates. South Africa. people able to take over from me one day, easily. u brunswick review · issue 20 · 2020 75 The Woman in the Mirror
hat do a bahraini biker, an egyptian unilever’s In response, Unilever wanted to create a space athlete and a Syrian medical consul- Arabic web where Arab women could share experiences and per- tant have in common? All three women platform Miraa spectives on beauty and self-image in line with their have put their reputations on the line to hosts Arab cultural values. Today, Miraa has become a platform Wchallenge outdated standards of female for women to discuss topics still considered taboo women in beauty in the Middle East, a region where old-fash- in some conservative cultures, such as body image an ongoing ioned beliefs are reinforced by an advertising indus- and participation in sport. The goal was to normal- try that has been slow to eschew female stereotypes. conversation on ize more realistic perceptions of women and drive They are among the women hoping to deliver a female beauty more self-acceptance and openmindedness across more realistic ideal of beauty through media plat- and healthcare. the region. form Miraa (“mirror” in Arabic), which was created Brunswick’s STEREOTYPES by global consumer goods company Unilever. tasha young Growing up, Yara Boraie, a Vice Arabia journalist More than 70 percent of Unilever’s beauty and reports. from Egypt who helped Unilever develop content for wellness consumers in the region are Arab women, Miraa, often found herself frustrated with the unre- partly through its bestselling brand, Dove, which, in alistic representation of Arab women in TV com- 2018, published its global Girls Beauty Confidence mercials, where women are still primarily seen cook- Report. The report revealed that women and girls in ing, cleaning or gossiping. Saudi Arabia and the United Arab Emirates had low “Women were always shown in cooking oil or levels of confidence in their appearance compared to washing detergent advertisements as unrealistically
other parts of the world. perfect and excessively emotional, unable to make BARCZYK FRANZISKA ILLUSTRATION:
76 brunswick review · issue 20 · 2020 HEALTH SECTION
rational decisions,” Ms. Boraie said. “I remember The research showed that only 8 percent of girls in watching TV with my mother and feeling furious at Saudi Arabia had high body esteem, far fewer than the way a mother in a cooking commercial was por- the global average of 24 percent. Eighty percent of trayed. If a woman was playing the role of a mother, girls in both countries were choosing to opt out of her teeth would be perfect and white, she’d have a social engagements or put their health at risk due of button nose and colored eyes, and act totally fake. low confidence. They felt more pressure than other These women were not representative of me or my parts of the world associated with their future, mar- mother or any of the mothers I knew.” riage and looking after their families. As a 25-year-old Arab woman, Ms. Boraie is rep- Girls in both Saudi Arabia and the UAE expressed resentative of the audiences that Miraa is targeting. a desire to be judged on what they say and do rather She believes that the age of TV commercials based on than their looks, and to see more diversity in age, such two-dimensional characters is over, but is con- race, shape and size for women portrayed in the cerned about the impact they have already had on media. Sonia Kapoor, a Senior Digital Content Man- self-confidence across the region. ager at Unilever who led the development of Miraa, “You could say that they are just advertisements,” felt that the findings pointed to a lack of indepen- she sighed. “But these images are in our faces 24/7, “THESE IMAGES dent platforms for women in the Middle East. sub-consciously affecting our perceptions and driv- “In the Arab beauty space, you would tradition- ing stereotypes. You start to wonder who is respon- ARE IN OUR ally see three types of platforms,” Ms. Kapoor said. sible for constructing these beauty ideals and what FACES 24/7, “Conventional local heritage magazines spotlight impact they have had on the way Arab women Western trends for Arab women and, while they choose to live their lives.” SUB-CONSCIOUSLY have adopted a digital presence, their content hasn’t UNILEVER AFFECTING OUR evolved to offer a two-way dialogue with women Around the world, Unilever is seeking to become in the region. International publications have also synonymous with social purpose. The firm’s mis- PERCEPTIONS mostly re-purposed global content for the region. sion to “make sustainable living commonplace” is AND DRIVING Meanwhile, social media platforms like Instagram brought to life through campaigns such as Dove’s celebrate unrealistic images of beauty. Real Beauty movement and sustainable farming STEREOTYPES. “Our research showed that artificial beauty ideals and production practices. The company’s belief that YOU START TO were holding women and girls in the region back “brands with purpose grow” has been validated by from achieving their potential. We wanted to give the fact that its 28 “Sustainable Living” brands, which WONDER WHO IS them control of defining the beauty narrative in line take action to support positive change for people and RESPONSIBLE with their cultural values, and felt we were uniquely the planet, grew 69 percent faster than the rest of the placed to develop a platform that could add value to business and delivered 75 percent of the company’s FOR CONSTRUCT- their lives.” overall growth in 2018. ING THESE MIRAA The strategy has paid off in the Middle East in Miraa was launched in 2018 to present a diverse particular, where Unilever has had a presence for BEAUTY IDEALS.” array of Arab women addressing topics that readers
many years. Dove and Lux are among the top five YARA BORAIE, might not feel comfortable discussing with family beauty and personal care brands in Saudi Arabia, as Vice Arabia and friends. These include post-partum depression, measured by brand footprint. Lipton tea, another how to deal with hair loss, or what questions you Unilever offering, has become such a strong house- should ask your gynecologist. hold name in the region that many consumers The website links closely with dedicated social think it is a local brand. But as the market grows, media channels that drive traffic, creating a two-way it becomes more complex and Unilever’s brands are dialogue with readers to inform editorial choices. using research to keep abreast of the concerns of Public and private Facebook groups have been set its audiences. up to allow the community to dive deeper into topics For Dove, it was critical to understand the impact and share encouragement with each other. of beauty ideals on the everyday lives of women and Ms. Boraie insists Miraa is not looking to be con- girls in Saudi Arabia and the UAE, core markets for troversial for the sake of it. “Miraa has been inun- its beauty and personal care brands. Its survey of dated with requests—DMs, Facebook messages, over 600 girls identified significantly higher social emails. Sometimes an article will spark discussion pressure than other parts of the world, derived from on a sub-topic that our audience will want to hear unrealistic ideals of beauty and social comparisons, about. We look to cover all angles possible and treat
ILLUSTRATION: FRANZISKA BARCZYK FRANZISKA ILLUSTRATION: fueled by social media. a topic as two sides of a coin— building inclusivity.”
brunswick review · issue 20 · 2020 77 GENDER STEREOTYPES
In the platform’s launch film, “The Other Side,” make her look beautiful and radiant, regardless of Miraa was able to present three diverse Arab what she wears.” women for a discussion centered on women’s Asma’a added: “When I was younger, being strong self-acceptance. was viewed by some as ‘mistarjelah’ (acting like a One of them women, Rose, is a Syrian medical man). After being profiled on Miraa, I had women consultant. She discussed the dangers of attempt- approach me asking how they can become stronger ing to attain perfection through surgery, while at too. It feels good to encourage a healthy standard of the same time emphasizing how to use fillers, a beauty for others. medical treatment that fills in facial wrinkles safely. “It’s important for women to share a real side of Some viewers reacted angrily to Rose’s endorse- their lives with each other, rather than the mani- ment of the procedure, which led Ms. Boraie to cured version that we often see on social media. develop a follow-up piece exploring perceptions When I hear Serena Williams discuss her struggles around cosmetic surgery in more detail. competing as a mother, it makes me feel that I can “It seemed that a woman could be bullied for get through the challenges that I face in my life.” the way she looked, and then attacked for being Miraa’s diverse network of female Arab contribu- plastic—both sides could be fatal. We helped Rose tors has helped Unilever brands’ visibility and rele- discuss the importance of respecting personal vance. An example is Dove’s #ShowUs campaign, the choice,” she said. “Our goal is to make our audi- world’s largest photo library created by women and ence feel safe and included—whether at school or nonbinary individuals, which features women pro- at work, experiencing adolescence or adulthood. filed through Miraa. With more than 5,000 images, We want to reach as many Arab women as possible #ShowUs offers a more inclusive vision of beauty for with this message.” media and advertisers to use. In the same film, Wadeeah, a Bahraini guitar- Similarly, Lux aimed to encourage more Saudi ist and motorcycle enthusiast, and Asma’a, a func- women to enter the workforce after identifying that tional fitness coach and Egyptian rowing champion, only 16 percent of the Saudi workforce was female, explained that platforms like Miraa are helping despite women making up 76 percent of unemployed to highlight the value that diversity brings and Bachelor’s-degree holders. Lux’s #IntoTheSpotlight encourage women to focus on achievement rather campaign purchased hundreds of search terms on than appearances. Google to ensure that female professionals were the “Societal norms have changed,” Wadeeah said. first results seen by those with hiring power, thus “Today you can choose whether to wear a hijab or also shining a light on female role models who had not. Since I choose to wear the hijab, and basically broken into male-dominated fields. Yara Boraie is a journalist everything we do as hijabis is frowned upon, girls with Vice Arabia who In an age when there is increased scrutiny on cor- actually encourage me and tell me to keep it up helped Unilever develop porate purpose statements and accusations of “pur- whenever I get on my motorbike. the Miraa project, pose washing,” the campaigns launched off Miraa featuring wide-ranging “Being confident, intelligent and respectful in a discussions of topics have helped Unilever’s brands demonstrate real girl’s daily life and the way she deals with people, will important to women. intent and responsibility in their efforts to drive social value. The numbers look promising. As of January 2020, the website recorded 3 million unique users for the year, with 6.6 million individual page views. Unilever’s global CEO Alan Jope believes the firm’s approach to social purpose helps build resil- ience and attract employees as well as customers. He commonly quotes his belief that “Brands with pur- pose grow, companies with purpose last, and people with purpose thrive.” Ms. Boraie agrees. “Brands should never underes- timate the value of inclusivity, authenticity and rel- evance. They’re not going to find it in board rooms, but through engaging with their audiences.” u
tasha young is a Director with Brunswick based in Dubai. UNILEVER OF COURTESY PHOTOGRAPHS:
78 brunswick review · issue 20 · 2020 In Their Own Words GRAHAM CARTER
UnderANDREA lockdown, a tradition spread from one During this time, I’ve often wondered how Recalling Brunswick office to another: At day’s end, a colleague Andrea and I would have dealt with the lockdown sent a short essay to his or her working-from-home his late wife’s together, and with Ben too. We’d have probably office mates. These notes were funny, sad, inspirational driven each other up the wall. Our little foibles and and philosophical, and often sprinkled with favorite courage annoying traits, which we’d usually take for granted, recipes, TV shows, and games. On May 6, Graham Carter, Contracts and Data Manager, sent this would have been magnified. I know that she would note to his colleagues in Brunswick’s London office. have smiled whilst putting stuff in the dishwasher purposefully in the wrong place (I have a process). oday, 6th may, is a day that has been etched If there were two ways of doing something, we’d in my mind for well over 40 years as it is my mum’s birthday. That used to make it a day of Tjoy and happiness. That changed at 5:13am on 6th May 2018, when I received a call from St. Christopher’s Hospice in Sydenham, informing me that my wife, Andrea, had died. I then had to do the hardest thing I’ll ever have to do, which was to tell my son, Ben, that his mum had died. This broke my heart. A bit later I had to call my wonderful father-in-law to let him know that his daughter had died. That broke my heart too. Andrea had an amazing inner strength and her Yorkshire grit and determination shone through from the moment her consultant spoke those fateful words in October 2014: “Your mammogram showed signs of cancer.” Her daily question to herself was, “Will complain- ing about it make any difference at all? Yes or No?” To which she answered, “No, then don’t complain about it.” And she didn’t. No complaining when sec- Graham and Andrea find them. More often than not we’d end up in the ondary breast cancer was found in her arm leading with their son, Ben, in same place, which was always the important part. The September 2017. to shoulder replacement surgery. No complaining lockdown has shown us all that there is more than when little metastases were found in her brain, lead- one way to do something and achieve the same goal. ing to gamma knife surgery. Still no complaining This was read at Andrea’s funeral. It’s from Winnie when more metastases were found in her liver. She the Pooh and it makes me think of her and smile: handled it all with a smile and immaculate nails. If ever there is a tomorrow when we’re not together Will complaining about it make any difference there is something you must always remember, is a question I’ve asked myself a lot recently. The You are braver than you believe. answer is no. This lockdown is what it is and we Stronger than you seem and smarter than you think. need to adapt accordingly as individuals, as a busi- But the most important thing is even if we are apart, ness and in the wider society. I’ll always be with you. u brunswick review · issue 20 · 2020 79 RACE AGAINST TIME The pharmaceutical industry is seizing the moment to both help lift society out of the pandemic and rebuild its own reputation. The clock is ticking. By Brunswick’s ben hirschler and jeremy ruch.
he COVID-19 pandemic is a make or break moment for the pharmaceutical industry. Around the world, billions of people are living in hope of a vaccine or cure, and entire stock markets are swinging on read-outs from clinical trials. • The potential for drug companies to throw a lifeline to a sick world has sent corporate purpose soaring to the Ttop of the boardroom agenda—and drug development is in the spotlight in a way it has not been since the early days of HIV/AIDS. • With drug companies investing billions of dol- lars in COVID-19 research and executives marshaling their best scientists to try and outwit the virus, the pharmaceutical sector now has a huge opportunity—and a huge challenge—to prove its value to society. In the words of Eli Lilly CEO David Ricks, the pandemic represents a “once-
in-a-generation opportunity to reset the reputation of the industry.” YANG JAMES ILLUSTRATION:
80 brunswick review · issue 20 · 2020 ILLUSTRATION: JAMES YANG source of risk if companies fail to deliver. if risk source of thesector—a have still of not changed their view enjoying anotable boost, people just overof half companies,technology in particular, are currently the summer, shows andbio big pharma thatwhile survey, Insight Brunswick last? The conducted over reputation. big The question is: Will the halo effect companies achance to improve their tarnished ceutical industry’s response hasgiven to thecrisis thedebate andthepharma changed theterms of in 2001. lup. It wasthelowest reading since began theseries monitored amongAmericans 25industries by Gal intheeyes of regardedas themostpoorly industry result, 2019, attheend of pharmaceuticals ranked controversies. charged pricing drug politically As a opioid scandalsand epidemic, mis-selling of arun has received abattering inrecent years from the USmarket. intheall-important cially sector The about progress on COVID-19. positive toward companies and more optimistic nese respondents proved to considerably be more 2018. Significantly, throughout the research, Chi- makers, drug of in compared wellunder half with consumers informed nowof have a positive view for pharmaceutical companies. Around two-thirds the UKandUSalsoreveals reputational gains researchBrunswick among consumers informed in currently stands at more than 80 points. Other that spread even has historically been larger, and saw amore negative by impact 30points. In China, tive from impact recent events topped thosewho and Britain America, saw those who a more posi a significant reputationalboost. In the results from the US and China shows how the sector has enjoyed opinion leaders follow who healthcare intheUK, ceptions across theboard. sis inmore isalready thanacentury per changing working flatout to greatest back the roll healthcri to outfits—are biotechnology small giants try multiple insize companies—ranging from indus vaccines atscale. However therecognition that and develop drugs andmanufacture thenecessary structure, andknow-how production capacity to companieslarge drug theinfra thatpossess role inthefight,an important itis only the world’s brunswick review Now, however, theCOVID-19 emergency has could alift, certainlydo with industry The espe more than600 of survey Insight A Brunswick While academic andgovernment play labswill
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------HEALTH 200 VACCINE DEVELOP- 20 YEARS, THISIS DEVELOPMENT IN ADVANCES, WITH YET THEREHAVE LABORATORIES ALREADY BEEN CORONAVIRUS A TOUGH ASK. MENT IS10TO REMARKABLE AGAINST THE TRADITIONAL TIMELINE FOR THE WORLD, SINCE THE VACCINES AROUND AROUND NOW IN SECTION
crucial additional ingredient, additional crucial anadjuvant. called vaccine,experimental a GSKis supplying while thepuzzle: is Sanofi providing thebasic of part next year. In this case, each company holdsakey that aimsto aCOVID-19 get vaccine to market by are working together inaunique vaccine alliance months. GlaxoSmithKline andSanofi, for example, havepartnerships come thick andfastinrecent innovation building thathasbeen for some years. a trend toward is turbo-charging bined effect open demic and governmental organizations. com The - andbetween thebusiness, theindustry aca within shows anexceptional collaboration both level of groups, between scientific rivalry the big picture onreality theground. While thatthere itistrue is to COVID-19. By andlarge, the thischimes with competing—when collaborating—not itcomesbe from isthatcompanies thepolling are expected to it isanunprecedented progress. pace of have already generated impressive results. Globally, from China, are andthefirst ones inhuman trials these,than 40of including number asignificant wasonly deciphered thevirus inJanuary.of More sequencethe genetic Organization—even though around theworld, according to the World Health coronavirus now indevelopment inlaboratories able advances, around 200vaccines with the against ask.is a tough Yet there have already remark been - opment is10to 20years, theprocess fast-tracking window to deliver before to out. patience run starts vaccine availability next year. widespread expect among thosewho ions evident the sector, positive higher meaningfully opin with indetermining sentiment toward critical especially ingly, around itisexpectations vaccines thatare ment, androll-out. manufacturing Not- surpris there are develop intheprocess uncertainties of vaccines by mid-2021, many although recognize to expect people approved see andbroadly available . Business,Ross Review School of told theBrunswick Gordon, professor attheUniversity Michigan’s of short-lived andthereaction could harsh,” be Erik a vaccine, then thereputational reprieve may be can’t fulfill, concerning particularly delivery of Indeed, announcements aboutCOVID-19 Another message thatcomes across strongly forSince timeline vaccine devel thetraditional In other words, hasa itseems thattheindustry findsthatmost survey Insight Brunswick The creates hopesthatthey industry thepharma “If 81 - - - - RACE AGAINST TIME
Adjuvants make vaccines more effective at lower In the midst of a global pandemic, we have doses, enabling large-scale production. seen a significant REPUTATION Boost In another promising case, AstraZeneca is work- increase in positive sentiment toward ing with the University of Oxford to fast-track Opinion of Pharmaceutical Companies pharmaceutical (Informed Consumers) progress on a vaccine originally developed by aca- companies. 63% 67% demic scientists, in a deal that underlines the need US Positive UK 46% Negative 45% to build manufacturing and distribution capacity 33% 21% alongside good science. 16% The pandemic has also brought out the inven- 9% 2018 2020 2018 2020 tiveness of companies in tackling medical problems in novel ways. This includes the adoption of new technologies for many experimental vaccines, such IMPACT OF INFORMATION About Healthcare Companies as using ribonucleic acid (RNA)—a chemical mes- senger that instructs a person’s cells to make viral Recent information has given companies a reputation boost in the UK and US, particularly in China where respondents give enthusiastic scores proteins in order to mount an immune response. Healthcare Pharmaceutical sector companies companies This is the technique adopted with notable success Net more positive opinion UK US China +31 +32 +81 +33 +29 +84 by biotechnology pioneers Moderna of the US and 2 Healthcare sector companies 2 Germany’s BioNTech, which is working with Pfizer. Pharmaceutical companies 2 Biotechnology companies In some cases scientific progress has been down 0 Medical diagnostic companies 2 to applying lateral thinking to problems. British Makers of home health products 2 2 biotech company BenevolentAI adapted its artifi- Telehealth companies 2 2 2 2 2 cial intelligence system—originally established to Medical device companies 2 2 find new drugs—to hunt for existing medicines 2 Private hospitals 2 0 U US China U US China Private health insurers that could work against COVID-19. This has led Much more positive No difference to the discovery that an established rheumatoid Slightly more positive More negative arthritis drug, made by Eli Lilly, had the potential Most respondents, to be repurposed as a coronavirus treatment. The including nearly half of those in China, EXPECTATIONS for a COVID-19 Vaccine drug is now in clinical testing. expect an approved However, developing new products and getting vaccine by this time Expected Vaccine Timing Views on Public Expectations next year. However them through clinical trials and on to the market Before the end of 2020 Too optimistic they also believe By the first half of 2021 About right is only one part of the challenge. Just as tricky are public expectations By the second half of 2021 Too pessimistic the demands for equitable access and fair pricing— are too optimistic. Later than 2021 Never marketing areas that could easily become pitfalls UK UK for companies. 11% 46% 28% 11% 4% 60% 37% 3%
While there is acceptance that the industry needs US US to make profits in order to invest in future research 21% 49% 22% 9% 48% 46% 6% and development, the survey also finds a high level China China of support for price caps in the case of coronavirus- 48% 36% 11% 35% 57% 8% related products. This will require the industry to There is benefit to tread a fine line when it comes to setting prices— pharma companies WORKINGPharma TOGETHER Response to vs. COVID-19: COMPETING something that several companies have recognized showcasing their Working Together vs. Competing work with other by pledging to restrict profits on vaccines that are companies. What are pharmaceutical What will lead to sold during the pandemic. Collaboration sends companies currently a better outcome? a more positive doing? 87% 80% 77% One such decision that attracted extraordinary message. 69% 62% attention was the move by Gilead Sciences to set 53% 47% 38% a standard price for its newly approved antivi- 31% ral drug remdesivir of $2,340 per patient across 20% 23% 13% advanced economies. The move was criticized on UK US China UK US China both sides of the drug pricing divide, but welcomed Working together to find treatments and a COVID-19 cure Competing to find treatments and a COVID-19 cure first as “responsible” by the US-based independent HOEY PETER CHARTS:
82 brunswick review · issue 20 · 2020 CHARTS: PETER HOEY the pandemic. public money, Large amountsof as intense, given state actors role theheightened in of pressures thepolitical ancing act—and could be vaccine are limited isgoing to adelicate be bal these competing demands stocks initial when of nize stakeholders elsewhere. Navigating through one large buyer market may in a particular antago- ism”—is aclear risk. other countries—so-called of “vaccine national- those tize supplies for their citizensown of ahead governments. with interact onalso throwing how aspotlight thosecompanies and innovation to improve human health, while panies’ science leveraging common of purpose governance) issue. puts This front andcenter com boardrooms asanESG(environmental, and social diverse portfolios. therapeutic large pharmaceutical companies, given their more cines are likely to move theprofit lessat needle COVID-19 products, coronavirus and vac drugs companies hinge on thesuccess or failure of attheproblem,”ities . Review hetold theBrunswick devoting resources,in terms of andcapabil money Nobody now are candothey else doing what right ing thispandemic andmakinginvestments atrisk. dropping prioritiz everything, thing interms of the requirements shareholders. of society, toattuned of theneeds alsobalancing while believes has done pharma job a so good far in being the sector thecoronavirus closely during crisis. He , of thefortunes following hasbeen and Distrusted try’s broken reputation in2012called the price right.” since sides both attacked them, probably they got toocharging much. My personal isthat feeling nonprofitby various agencies, werewho saidthey wereholders they because too charging little, and were by saidthey who theshare notdoing right at Pfizer.R&D head got attacked“They by analysts, atPureTecha senior partner Health andaformer got attacked by everybody,” said John LaMattina, Economic Review. nonprofit watchdog the Institute for Clinical and brunswick review For companies, global thedemands of satisfying governments certain desireThe of to priori Instead, in viewed thepandemic iswidely While some smaller thecommercial of fortunes big companies are“The really doing theright Mr. LaMattina, wrote on theindus who abook “When their price, cameout Gilead with they
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Devalued Devalued ------COVID-19 PHARMACEUTICAL SOCIETAL WORTH TO PROVE THEIR RIGHT THINGIN OPPORTUNITY BY DOINGTHE COMPANIES A ULTIMATELY, HAS GIVEN A UNIQUE C RISIS.
research for oftheworld’s some largest companies. with20years’ London, and polling experience conducting forspondent Reuters. anda corre office formerLondon pharmaceuticals global inBrunswick’sben hirschler isaSenior Advisor based a while toa while recover.” down in tobaccothe gutter with companies it takes credit for,” hesaid. “But your when reputation is owed by rows. scandalsandpricing lives—a message thathastoo often overshad been how live people ithelps tion of longer andhealthier to steer the conversationtry back to an apprecia- thatmakewinners itto market, theindus allowing nies andgovernments. blame islikely to compa to both apportioned be setbacks,or manufacturing inwhich casesome products arenot work delayed out if by scientific ments. isapowerful That story. course, Of itmay before to deliver life-saving vaccines and treat by inways collaborating have thatthey never done around theworld to normality some semblance of thepotential possess toThey return economies thinginacrisis. by worth societal doing theright tocal companies prove aunique opportunity their patient safety. oversighttory for treatments medical to guarantee simultaneously would like to increased see regula processes, to new innovations speed to market, but privacy. Stakeholders faster alsowantboth approval desire for to corporations protect patientdataand forties healthcare companies, there isalsoastrong and improving testing are asthetop viewed priori behavior. industry of expectations inoppositeis pulling directions itcomes when to that have developed been by domestic companies. for governments access to claiming priority vaccines area need. andindividual Yet there isalsosupport cine to equitably be distributed, by both geographic respondentssurvey say wantaneventual they vac echoed innuanced public opinion feedback. Most largeplacing pre-orders for supplies. Operation Warplars via andother countries Speed dolvaccine hunt, billions of theUSspending with well asprivate capital, are now invested being inthe “They’ve been doing stuff they haven’t they doing been “They’ve stuff got much But Mr. LaMattina be there is optimistic will Ultimately, COVID-19 hasgiven pharmaceuti For example, findingaCOVID-19 while vaccine isnottheonlyThis area where public opinion balance on to access need The strike theright is u is a Director in in ruchisaDirector jeremy
83 ------CHURCHILL T great speech of 18June of great speech 1940, whereas Churchill spoke aboutBritain’s “finest hour” inhis is our darkest hour, but we’ll through.”get In fact toin his speech the Italian he said, when people “This minister, Giuseppe Conte, was “quoting Churchill” successfully. BBCreported The that theItalian prime tion from Churchill inthecurrent crisis, notalways leadership response aboutourbest to it? from learned be Churchilliananything thatmight demic weakened: had Churchill’s premiership. wartime that were to heard be sixdecades later again during / sting Whose poisonous breath wing”) and blighted insatiate scourge,” “Whose handandcruel loathsome linguisticsvivid thekind of “‘vile, occasional flashes of plains / Where Russian exiles toil inchains”) and age rhyming juvenilia (“O’er bleak Siberia’s milesof itreachedstanzas until Britain, teen inamixture of ease’s thesubsequent pathwestwards ineach of opened with the lines: thelines: opened with published in his school magazine, 1890. He was15years oldandits12verses were 84
Some leaders have to already derive tried inspira Before COVID-19 leaves ournative shores, isthere It shore. our native left Ising) which of (Blest isthetime Spring of And thefavouring winds with Its to was kill o’er; power thepoem,In thepenultimate stanzaof theepi- Churchill followed then thedis geographically thesun. with It journeyed toE’en Arabia’s sand thirsty From China’s land celestial bright thatithasdone? ills Of Or measure theuntold amount Oh how Iit’s shall recount deeds killed one million people between 1889 and between one people 1889and million killed aging Asia andEurope andwhich ultimately enza.” It wasabouttheepidemic thatwasrav ever wrote inhis long life was entitled “Influ he only that poem winston churchill . It . It The Harrovian Darkest HourDarkest - - - - -
Flu lent inthoseplaces where already thewarhad to led - viru blamed particularly scientists—became Allied by scientists, German just propaganda asGerman their propaganda to deliberately being developed world war thatoverlapped itchronologically. worldwide,million many more thanthecataclysmic asmany andperhaps people million asahundred disease, which eventually wasto wellover kill fifty the no fewer thantwenty-fivepeople died of million pandemic, horrific truly that twenty-five weeks of of 1917–19.Spanish Flu of Catharine Arnold, author Munitions andlater Minister for War the during State demics for in his life, of and was Secretary about him. movie Oldman theGary was thenameof The flu—whichThe Allied “fake news” in ascribed Churchill fluandflu-like saw epi agreat deal of Pandemic 1918, thefirst tells usthatduring br unswick unswick review and the - leadership holds. leadership holds. his what lessons pandemic, and by was shaped Winston Churchill explores how robertsandrew consequences. life ordeath with potential decisions take are having to leaders business CEOs and CEOs and
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PHOTOGRAPH: VINTAGE_SPACE / ALAMY STOCK PHOTO CHURCHILL Flu and the
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century later. sidewalks more thana replayed on thecity’s Flu outbreak—a scene during the Spanish of Londonwear masks onthestreets A couple HEALTH SE CT ION 85 Inskip’s notto show secretary himthe letter he until threat,than the German told and that added he had influenza from which rather Inskip was suffering the rearmament program, of yet hewaswriting nation, 1937abouttheNazi January inaletter of Thomas Inskip, theMinister for Defence Co-ordi- unable to contain it. influenza there, authorities of died with the British alist movement, to theway inpart had thatmillions opponent, Mahatma Gandhi, andtheIndian nation don. Churchill’s of the She rise even ascribes great that were reeling still fromArmaged themilitary on world, effects thepostwar and social insocieties incrediblydisease had powerful political, cultural, How It Changed the World.” Sheexplained how the book percent) which were due to battle. to disease(mainly SpanishFlu), 53,402(45.8 against One, nofewer than63,114(54.2percent) were due in Worlddeaths military 116,516 American War malnutrition. the It isaremarkable thatof statistic 86
“Grave are thetimes,” Churchill wrote to Sir chose for Spinney her thatLaura subtitle The Pale Rider was 1918and SpanishFlu of “The CHURCHILL
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PHOTOGRAPH: HULTON ARCHIVE/GETTY IMAGES PHOTOGRAPH: HULTON ARCHIVE/GETTY IMAGES andrew robertsandrew and guide theworld.” Divided, theDark Age returns. United, we cansave have to made. be United we stand. we fall. Divided thatwill thejourney of the length andto theperils But isshort. time Every month to thatpassesadds barred. freedom Not die. of thelights soeasily shall theonwardso easily shall be thepeoples progress of courses proclaim thedeliverance Mankind. of Not thetale. isnottheendThis of stars The in their once“Is to more? thetragedy repeat itself Ah no! Force theContinent atDunkirk.Expeditionary off only 10days after theNazis forced had theBritish lies ahead,” Churchill told Commons, theHouse of adapted to from exigencies. peacetime wartime 14 June 1940, helpful for be them, thatmight once quotation, from thistime Churchill’s of great speech consequences for their employees, there isanother have to take have decisions thatwill life-changing Churchill. abiographer—of indeed minister thingthatourprime good is anadmirer— tap,” he once said, “not on top.” It iscertainlyavery never dominated by them. “Scientists on shouldbe resolute one, guided ashewasby scientists, though that hisresponse to COVID-19 would have a been 1965. Yet itdoesn’t take much to guess imagination nomenon thattook place after hisdeath inJanuary have or said” thought about any situation or phe never to assume we could tell Papa“what would could do worse thanadopt thatmotto. self-isolate through COVID-19,out thecountry we defeat: do notexist.” they of ties As homes through in thishouse. We are notinterested inthepossibili read: “Please understand there isno-one depressed theBoer War,week of inDecember 1899—and ter to Black during Balfour Arthur Week—the worst a quotation fromconsisted Queen of Victoria’s let seen today be still intheChurchill War Rooms. It the Warof Cabinet bunker in Whitehall, which can on the Western Front. thefighting associated limbsandorgans with loss of COVID-19 through get itintact, the will without that same day,alties whereas survive those who gained. There were alsoover 38,000non-fatal casu ground life incomparison for themeasly amountof Churchill denounced asanabominably large lossof to Susan Gilchrist, Chair, Susan Gilchrist, to Clients Global atBrunswick. University. at Stanford the Hoover Institution He ismarried Destiny brunswick review “People must have hope, to face thelong haulthat As CEOandother senior business executives Churchill’s once Soames told Mary daughter me In 1940, Churchill acard had placed on thetable and the Roger & Martha Mertz Visiting Reader at Visiting Reader at Mertz and theRoger &Martha is theauthorof
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- - - - - " “ —WINSTON CHURCHILL ” mansion. important themost readily to as as humblest cottage the to assistance willgive gade full its way thefire as bri just inthesame attacked it mustbe it istheenemy; and on theground that or woman, simply or therichest man inthepoorest occurs whether it attacked, mustbe Disease of all. theinheritance be must healing science The discoveriesof Speech to theRoyal to ofPhysicians, College Speech 2March 1944 That isclear.
- " 87 Kate Bingham, Chair of the UK Govern- ment’s Vaccine Taskforce, is part of the Novavax trial in London, one of nine vaccines currently in Phase 3 testing. Testing
TIMESit is the last day of london’s indian summer and i am Brunswick’s sitting in a large hospital learning about the risks of partici- ben hirschler pating in a COVID-19 vaccine trial. The weather is about to describes taking part in a COVID-19 break—and the coronavirus forecast is also deteriorating, vaccine trial as with a second wave of infections spreading rapidly through part of the historic British cities. • There is a small group of us in the hospital hid- global effort to halt the disease. den behind facemasks, so it is hard to gauge the mood as we watch a film detailing what to expect and the risks involved. All of us are of a certain age: 56 years and up, to be precise. The trial has already recruited thousands of 18 to 55-year-olds— typically the first age cohort to test a new medicine—and the
researchers are now ready to try their invention on us oldies. PHOTOGRAPH: KIRSTY O’CONNOR/PA IMAGES VIA GETTY IMAGES
88 brunswick review · issue 20 · 2020 Testing
PHOTOGRAPH: KIRSTY O’CONNOR/PA IMAGES VIA GETTY IMAGES before my giving consent to anintervention. In potential side effects worrying listening to alistof even death). vous system causesevere thatmight weakness or (reactionsto rare inthener and serious thevery aches, feverishness, headaches, nausea, tiredness) side effects, from themildandcommon (muscle detrimental possible through along listof running ing. scientistinthefilm The we are watching is first injection, the morecommitment feels daunt part. But now for inthehospitalwaiting my sitting express my interest wastheeasy inparticipating something useful andjoin one. to likewhat it findoutfeels I amintrigued to do clinical trials,quently abouttheupsanddowns of working as a healthcare fre journalist, writing most people. monitor my healthinaway thatisunavailable to home swabtests for COVID-19, enabling meto disease. weekly alsoget nasty potentially very Iwill a vaccine thatmay—with luck—protect mefrom a trolled study, have Iwill getting a50:50chance of comes into it. intheplacebo-con By takingpart - in vaccine skepticism.ing rise But self-interest also - the pandemic andto aworry pushback against a simpledesire to contribute against to thefight take part? no compensation. So, motivates what to people get uswill are paid, being trial of majority thevast selves to anunproven shot. ready to roll uptheir sleeves andexpose them being people thousands of tens fast of without would nothave to possible been thisfar, get this companiesdrug andinternational groups. But it is testament to amonumental by effort scientists, after the new coronavirus was identified in China, byoped theUniversity Oxford. of to help test,the one that I will which was devel- duced promising data. preliminary include They cal testing andthefront-runners have already pro remarkable. vaccines are Dozens now of inclini andscale,speed andtheprogress to date hasbeen endeavor vaccines for global both of inthehistory in over acentury. There nothinglike hasbeen this hopefully to thetideon theworst turn healthcrisis tonational effort develop vaccines inrecord time, brunswick review It is not the timefirst Ihave been in a hospital intheonline intheyear earlier form Filling to thirdThe factor iscuriosity. After two decades In my case, Icanidentify three factors. Oneis inour While participants number asmall of thatvaccines fact areThe insight, just months inter avast group isjustOur small atiny of part
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------HEALTH CLINICAL TESTING FRONT-RUNNERS HAVE ALREADY PRELIMINARY OFVACCINES ARE NOW IN PROMISING PRODUCED AND THE DOZENS DATA. SECTION
fill in fill numerous forms,run through my detailed takes more thantwo hours, we which time during sion inthetrial, my to thehospitalstill visit initial phone screening to check for my inclu eligibility patient. After already going through alengthy tele are every in evaluating staff lous the clinical trial released. thatcanbe information the amountof scientific research of limits andtheintegrity tiality support, but to theneed protect patientconfiden ency from vaccine developers to ensure public health emergency demands increased transpar for scientists andcompanies: current The global regulators kept iton holdfor longer. lem was unlikely to vaccine-linked, be US although thatdeemeding anindependent theprob review resumed inBritain, andSouth Brazil Africa, follow- an unexplained neurological illness. soon trial The experienced after participant aBritish their trial AstraZeneca halted new-patient enrollment for theUniversitywhen Oxford anditspartner of into focus just two weeks before my hospitalvisit, cases isnotstraightforward. issue The camesharply year,every inspecific right themessaging getting diseasessave lives ahostof of cines against millions refusing aCOVID-19 shot. people ment could to lead numbers significant of It is feared the unfounded claims by this move- vaccinations in general. of that questions the safety anincreasingly vociferousof “anti-vax” movement significant communications challenges inthelight tions. Nonetheless, theresearchers face andmedics are checking meover theinjec andadministering find thatitisfamiliarNHS doctors and who nurses that I trust,Health and it is reassuring toService immunization programs. ensure for eventual widespread support public toticipants enroll instudies but—crucially—to is therefore crucial, notjust to encourage par extremely set be high. healthy people, barmust which meansthesafety point aboutvaccine safety. Vaccines are given to harder to evaluate—and that, course, of isthe discomfort andoccasional pain. of myself wasclear: There wasachance totrade-off rid abdominaltine surgery. But inthosecases, the damagelife-changing thatcould from arise rou- recent years Ihave heard of twice abouttherisk One thing that is striking isjust howOne thingthatisstriking meticu adilemma episode revealsThe something of Despite the overwhelming thatvac evidence I have aNational with grown upinBritain Building confidencevaccines inthescience of time,This healthy, Iamperfectly is sotherisk 89 ------TESTING TIMES medical history, check my temperature and blood happens. If significantly more people given the pressure, and take blood samples. I am also given DESPITE THE meningitis shot become infected with COVID-19, instructions for filling in a seven-day “e-diary” to that will show the new vaccine provides protec- record my reaction to the vaccine and asked to ini- OVERWHELMING tion. However, even with around 30,000 people tial every line of a 22-point consent form before EVIDENCE THAT involved in the trial around the world, it is hard finally getting my injection. One month later, I will to know when there will be enough infections to return for a booster shot and more tests. VACCINES AGAINST prove an effect because this will depend on how The vaccine we are trialing is made from a A HOST OF much virus is circulating in society at large. weakened version of a common cold virus from Regulators charged with assessing COVID-19 chimpanzees that has been genetically changed so DISEASES SAVE vaccines want to see, as a minimum, a reduction in it cannot grow in humans. Scientists have added MILLIONS OF LIVES the illness rate of at least half—and preferably a lot genes to this virus so that it makes COVID-19 more. But the bottom line is that we will not know proteins called spike glycoprotein. The idea is that EVERY YEAR, if that can be achieved or exceeded until enough if the body recognizes and develops an immune GETTING THE of my peers fall sick. Some early glimpses at the response to this spike glycoprotein it will prevent data could be imminent, but researchers—who infection—or at least stop serious disease. Half the MESSAGING are keen to compile as complete a picture as pos- volunteers will get this new vaccine and the rest, RIGHT IN SPECIFIC sible—are preparing for a long haul. as a comparison, will receive an existing meningitis My last appointment back at the hospital is vaccine that is not expected to offer any corona- CASES IS slated for November 2021. u virus protection. Neither group knows which one NOT STRAIGHT- they are on and nor do the clinicians administer- ben hirschler is a Senior Advisor based in Brunswick’s FORWARD. London office. With a long career in journalism, he was ing the injections. most recently Senior Pharmaceuticals Correspondent for Then it is a question of waiting to see what Reuters, based in London.
MANY SHOTS ON GOAL
THERE ARE MULTIPLE COVID-19 RNA/DNA: Genetic code vaccines in development around is inserted into human the world, including more than 40 cells, which then use the that are already in clinical trials. instructions to make a Nine of these are in final Phase coronavirus protein. 3 testing and pivotal data on the main front-runners are expected VIRAL VECTORS: before the end of the year. Genetic code to make The wide field increases the a coronavirus protein is chances that at least one—and carried into cells by a very likely several—will ultimately harmless virus. prove successful. Initial results are certainly encouraging. But PROTEIN SUB-UNIT: no-one knows for sure how long A small piece of corona- vaccine protection will last or virus protein is used to which groups of people might stimulate an immune benefit most. response. The vaccines in Western markets that are further advanced VIRUS-LIKE PARTICLE: include those from Pfizer/BioN- Uses a particle resem- Tech, AstraZeneca/Oxford and bling the coronavirus Moderna. While Russia and China but containing no viral have both approved vaccines for genetic code. emergency use, these products have yet to demonstrate safety and INACTIVATED VIRUS: efficacy in big Phase 3 trials. Coronavirus is disabled Six different approaches are by a chemical or radia- being taken to COVID-19 vaccine tion so it cannot cause development—from cutting-edge disease but is still recog- technologies inspired by genetics nized by the body. to tried and tested methods going back many decades. Scientists are LIVE ATTENUATED also testing the potential of addi- VIRUS: Coronavirus is tives called adjuvants to enhance weakened to reproduce some of these approaches. very poorly in the body. STEINBERG JAMES ILLUSTRATION:
90 brunswick review · issue 20 · 2020 CONTENTS 92 SIR RAN He led teams to Earth’s most remote locations, and survived isolation on an ice floe menaced by polar bears. Famed explorer Sir Ranulph Fiennes outlines five principles for successful leaders. 96 WORKLIFE LEADER Brunswick founder and Chairman Sir Alan Parker interviews Adam Grant, the author of Give and Take, on how COVID-19 can inspire change in the business world. 92 99 SILICON VALLEY SWIMMER “My life as I knew it was over.” A rising star in the tech world, Kim Chambers was dealt a crushing blow. Overcoming a disability WIDE99 led her to discover ANGLE power she didn’t know she had. 102 AUDRA MCDONALD The six-time Tony winner, star of Broadway, TV, film and concert stage, talks to Brunswick’s Carlton Wilkinson.
107 102 ZEGNA Its history of dedication to employees and communities have left the 110-year-old, family-run Ermenegildo Zegna Group uniquely prepared for this moment. 110 UNARMED BOBBIES Sir Mark Rowley, former head of the UK Counter-Terrorism Policing Unit, explains why British police don’t carry guns. 110 114 CRITICAL MOMENT The first widely used vaccine, invented by Edward Jenner in 1796, led to the successful eradication of smallpox, a horrifying disease that had plagued mankind. 114 brunswick review · issue 20 · 2020 91 ntil covid-19, isolation for sir Ranulph Fiennes meant the 90 days he spent floating around in the Arctic Ocean on an ice floe in minus 20°C during the 160,000 kilometer Trans- globe Expedition (1979–82). Food had virtually run out and every so often a U half-ton polar bear, the world’s deadli- est predator with sharp claws, big teeth and capable of running at 60km/h, would climb onto his icy raft. The only means of defending himself was banging two saucepans together. “It drove them nuts. And they usually ran away,” he says. The man the Guinness Book of Records has described as the “The World’s Greatest Living Explorer” says his solution to mental isolation, then and in the current global lockdown, is to “keep telling yourself to stay patient. Stay cheerful. And remember there are millions of people elsewhere far worse off.” The trial of Anne Boleyn, The Battle of Agin- court, Lady Godiva, Finsbury Square and actor Ralph Fiennes all have direct family links to Sir Ranulph Twisleton-Wykeham-Fiennes, Bt., DSO, OBE (aka “Ran”). He is an extraordinary character and a good friend. We meet in Dubai at the much- acclaimed Emirates Airline Festival of Literature where he is promoting his 25th book—his autobi- ography Mad, Bad and Dangerous To Know. That was how the father of his childhood sweetheart and first wife, Ginny, described him. Is he? He admits to “Bad” from having misbehaved and spent time in various prisons, “but the Mad and Dangerous to Know … well, they’re up for debate,” he says. People think he must be crazy, and he is a serial risk-taker, but careful calculation and thorough preparation are hallmarks of all his 30 completed expeditions. His achievements include climbing the world’s highest mountains and raising $25 million for various charities. The first time I met Ran was at The Royal Naval College at Greenwich, on the eve of the Transglobe Expedition’s triumphant return in the presence of the expedition’s patron, HRH Prince Charles. At the end of the Transglobe Expedition across both poles along the Greenwich Meridian, and after 90 days stuck on that ice floe fending off hungry polar bears, Ran and his teammate, Charlie Bur- ton, arrived back in the UK on the Benjamin Bow- ring icebreaker and promptly slipped ashore to a pub on the shores of the River Thames for a quiet, well-earned pint. That was nearly 40 years ago and still the Transglobe volunteer team of 52 people 92 5 Famed explorer sir ranulph fiennes talks to alex blake-milton about the discipline needed to achieve a LIFE-SAVING goal no other has done. 5 Leadership Principles SIR RANULPH FIENNES reunites regularly to swap news and relive their expedition exploits, such is the strength of the team culture fostered under Ran’s leadership. Each year he gets through a punishing schedule of lectures at the behest of Fortune 500 companies the world over eager for an edge in leadership and guidance on achieving peak performance. Sir Ran has distilled five principles of leadership from a lifetime of pushing himself and others to insanely abnormal limits. For example, in 2003 not long after collapsing from a heart attack at 59, he and co- expeditioner Dr. Mike Stroud raised a significant sum for The British Heart Foundation by running seven marathons on seven continents in seven days.
SIR RAN’S FIRST LEADERSHIP PRINCIPLE: “You always need to appear democratic even if you’re a real tyrant.” Leading a team across a cre- vasse field on Everest is a series of life or death choices that he has faced many times. With all his experience including falling into one or two, Ran knows the way across to safety. But he takes time to consult his team so that they all agree on his way and the team moves forward in complete unison. It’s a ploy he uses all the time to get people to do what he wants. I know from having worked with him for eight years at Occidental Petroleum, Ran’s Sir Ranulph Fiennes, likely to behave when things get really tough. only corporate job. above and left, trekking “You need to test them and test them again until across the Arctic in 1982. To the right is fel- you’re certain you’ve got the right person for the job. “SELECT THE PEOPLE you work with extremely low adventurer Charlie For non-technical jobs, I always recruit people on carefully if you want to achieve your goal safely” is Burton. When the photo the strength of their character. Above all, I look for was taken, the ice they the second principle. All 8,000 candidates wanting were on was melting people with a passion and strong motivation. You to join The Transglobe Expedition team had to pass and their back-up air- can teach them everything else. Anyone with a hint the grueling selection process for the UK’s military craft grounded. Below, of malice or one-upmanship gets rejected instantly.” the pair pose for a photo elite, The Special Air Service. The test has a 90 per- having reached their cent fail rate among the people who believe they are goal: the North Pole. THE THIRD LEADERSHIP PRINCIPLE is all about mentally and physically fit enough to apply. That motivation. “Strong leaders need strong faith. was just for starters. Those who made it through That’s not necessarily a religious faith. But you need were then subjected to various expeditions to test a strategy for killing the voice in your head that says, their mettle in the frozen wastes of Greenland and ‘give up, you can’t do this.’ For me, I want to make Arctic ice at minus 40°C. my father and my grandfather both proud of me. “Expeditions, particularly in extreme cold, bring They died before I was born but they watch over out people’s worst character flaws. You need to me and silence that unwanted voice. I also don’t find out who they really are before you put your want to disappoint any of the charities for which life, your reputation or your commercial success in I raise funds. There are people who depend on that their hands.” He describes the intense spirit of com- money, and they give me a powerful motivation.” petition among expedition team members and the constant mental struggle not to let them outper- THE CHARACTERISTIC that is shared by super- form you. Ran’s “business” involves taking calcu- achievers, in business or physical endeavors, is that lated risks in the most hostile environments in the “They all have absolutely unshakeable self-con- world. “Finding the right people is all about ensur- fidence”—the fourth principle. As Ran explains, ing the success of an expedition and understand- ”There is no space or time in their heads for self-
ing the candidate well enough to know how they’re doubt or wavering.” Ran possesses a self-confidence GETTY VIA IMAGES IMAGES PA TOP, IMAGES; PA BARKER/CONTOUR; SAM SPREAD, PREVIOUS PHOTOGRAPHS: MIRROR/MIRRORPIX/GETTY IMAGES MONKS/DAILY BRENDAN LEFT, IMAGES; PA RIGHT, PHOTOGRAPHS:
94 brunswick review · issue 20 · 2020 nurtured through years’ experience of extreme (without income) before trying to get it approved, physical tests and learning from the odd failure. He raising the millions necessary from 1,900 sponsors made several attempts before successfully reaching to finance the trip, and recruiting 52 people willing the North Pole without any support, hauling every- FOOD HAD to go the ends of the Earth for three years unpaid. thing he needed behind him on a sledge. The jour- VIRTUALLY RUN Building a company may not carry life-threatening ney is equivalent to dragging a fully stocked family risks, but the need for solid Proof of Concept is freezer for 500 miles over ice ridges measuring up OUT AND EVERY still there. “My sponsors, like investors, need to be to 12 meters high. SO OFTEN A HALF- shown convincingly that what you’re proposing On his solo attempt to reach the North Pole is feasible, the risks are manageable and above all unsupported in 2003, he fell through thin ice TON POLAR BEAR how they will get a return for their money.” into the Arctic Ocean and had to drag his sledge WOULD CLIMB Sir Ran hides his 76 years well and there are few out of the freezing waters, sustaining severe frost- signs of him slowing down. He is currently testing bite in the fingers of his left hand. To deal with his ONTO HIS ICY RAFT. the concept for his next expedition, negotiating agonizing blackened fingertips back at home, he THE ONLY MEANS the launch of “Ran’s Rum.” In addition, he’s writ- famously decided to remove them in his garden ing two books on Ernest Shackleton and T.E. Law- shed on Exmoor with the help of his wife and a OF DEFENDING rence—both of whom were Ran’s boyhood heroes. saw. He keeps the fingertips in a Kodak film tin … HIMSELF WAS His remarkable exploits reflect extremes of lead- of course he does. ership and getting ordinary people to excel. He has BANGING drawn his five leadership principles from a lifetime THE FINAL PRINCIPLE is taking time to estab- TWO SAUCEPANS of achieving the seemingly impossible. He has set a lish Proof of Concept. The bolder the concept, the TOGETHER. tough challenge for following generations. Where more care and depth required for testing. When is tomorrow’s Ranulph Fiennes? u his late wife Ginny had the idea for Transglobe, alex blake-milton is a founding Partner of Brunswick they agreed it was very risky. So the two of them Gulf and builds the firm’s communications practice in the researched and tested the concept for seven years Middle East. He is based in Dubai.
THE WORLD’S GREATEST LIVING EXPLORER
RANULPH FIENNES WAS BORN IN production crew were making a nui- against an unlikely Russian attack. England and grew up in South Africa sance of themselves by diverting a river He resigned and transferred as an near Cape Town with his mother and through a small favorite village of his. SAS advisor to the Sultan of Oman’s three elder sisters. His father was killed He joined the Scots Greys tank regi- Forces in the bitter unpublicized war in the final year of World War II before ment and served in Germany patrolling against Marxist-backed guerrillas Ran was born. He didn’t wear shoes vir- attempting to gain control of the Strait tually until he moved back to England of Hormuz through which 75 percent age 12. He then met Ginny Pepper, age of the world’s oil was shipped at that 9, whom he later married. time. After the Dhofar War (1962- He had a tough time at Eton where 1976), Ran began his life of expedi- he was bullied as a “pretty boy.” He tions, books and lectures. has described the experience at Eton His wife Ginny died after they had as far harder than anything he faced been married for 34 years. He has been in the Special Air Service (SAS). He married to Louise for 15 years. Their frequently got into trouble for climb- daughter, Elizabeth, 15, campaigns ing towers and steeples. Having had a actively against trophy hunting, and fragmented academic career in South they have a stepson, Jack, 22. Louise Africa and England, he left school is an expert horse breeder and has a without O- or A-levels but nonethe- herd of 20 animals. Sir Ran is credited less got into the Mons Officer Cadet with 24 books of fiction and nonfiction. School. Joining the SAS, he was Eighteen of them were written long- Ranulph Fiennes with Ginny, his first wife, thrown out after he blew up the film before flying to Headless Valley in Northern hand. He doesn’t use a smartphone or
PHOTOGRAPHS: PREVIOUS SPREAD, SAM BARKER/CONTOUR; PA IMAGES; TOP, PA IMAGES VIA GETTY VIA IMAGES IMAGES PA TOP, IMAGES; PA BARKER/CONTOUR; SAM SPREAD, PREVIOUS PHOTOGRAPHS: MIRROR/MIRRORPIX/GETTY IMAGES MONKS/DAILY BRENDAN LEFT, IMAGES; PA RIGHT, PHOTOGRAPHS: set of “Dr. Doolittle” (1967) because the Canada. She was part of his support crew. a computer.
brunswick review · issue 20 · 2020 95 by sir alan parker
i first came across adam grant when I picked up Give and Take and realized this was one of those pivotal books that would bring together a great body of thinking and, at the same time, illumi- nate our lives in real and practical ways. The power of it was such that within two weeks I had received five copies from dif- ferent Partners around the world. All of their messages carried a similar theme: Adam Grant had captured and brought to life so many of the principles we hold dear within Brunswick. He used the NT power of rigorous analysis and great ADAM storytelling to ground our long-held beliefs in real experience and analysis. • For those who have sought ways of A growing business with a human heart so that performance drives us to be bet- ter people who can contribute more, Adam Grant seems to be more relevant than ever. The pandemic has set us huge challenges and will accelerate many of the trends and issues that we have seen emerging over recent years, which is why the World Economic Forum turned to Grant to envision how COVID-19 might inspire change in the corporate world. • His thinking has given great grounding to shape thinking and practices that will only become more important if we are to truly build back better. WorkLife Leader
96 GR GRANT WorkLife Leader ADAM GRANT
Do you see the pandemic producing a meaningful, long-term shift in how companies think and operate? Predicting the future is a fool’s errand. That said, it’s hard to imagine the pandemic not influencing the future of work. The most obvious shift is to a world of remote work. We already have good evidence that many people become more productive when they have the flexibility to work remotely—they appreci- ate the freedom and trust, and respond with greater commitment and dedication. As long as they’re in the office at least three days a week, we haven’t seen performance or satisfaction costs. Before the pan- demic, when I shared this evidence with executives, many were resistant to trying it out. Not any more. Now that we’ve been forced to live this experiment, many leaders have seen firsthand that their people Mr. Grant onstage with the ones that are already envisioning the new future are fully capable of delivering from a distance. The Facebook COO and they want to create. Option B co-author, option to work remotely—at least part-time— Sheryl Sandberg. should be here to stay in many workplaces around A CEO recently told me it doesn’t feel like the world, especially in the knowledge and service he’s brought work home with him. It feels like industries. I won’t be surprised if remote work sti- he’s started sleeping in the office. The number pends become common benefits: job offers should of decisions, the weight of those decisions— include a budget for a comfortable home office set- those aren’t dwindling for him or any CEO up and high-speed internet. Some companies might until who knows when. What does the latest start differentiating themselves by covering home research suggest that they can and should do exercise equipment. to stay sharp? We wrapped up season 3 of my WorkLife podcast In Option B, you and Sheryl Sandberg write, on May 12 with an episode on remote work. One “Resilience is the strength and speed of our of my favorite conversations was with Scott Kelly, response to adversity—and we can build it. who’s done more remote work than almost anyone It isn’t about having a backbone. It’s about in human history—as an astronaut, he set an Amer- strengthening the muscles around our back- ican record with a year-long mission in space. That’s bone.” What are those muscles for business a long time to be in isolation, especially when his life leaders, and how can they flex them today? was hanging in the balance of his everyday decisions. I’d say there are three key muscle groups for leader Before he left Earth, he did something interesting: resilience. The first is creating psychological safety: he imagined how he wanted his mission to unfold making it easy for people to share problems and and end. Not just what he wanted to accomplish, voice concerns without the fear of being punished. but how he wanted to feel throughout the journey. We know that psychological safety is critical to He said having that image in mind helped him stay both preventing errors and promoting innovation, resilient and mentally alert. Sure enough, this tracks because it enables people to learn from one anoth- with recent research in psychology: imagining how er’s mistakes and bring unconventional ideas to the we want to feel in the future doesn’t just help us see table. The second is taking care of people. It’s hard more clearly in the fog. It also makes the present feel to take action if you don’t know what your employ- more scarce and motivates us to make the most of ees are feeling—whether it’s anxiety, isolation, or it. That’s something every CEO can do: Imagine the grief at the loss of normalcy. Now is the time to ask day this pandemic is finally over. Looking back, how people what their biggest challenges are right now will you wish you had gone through it? u and figure out how your company can help and support them. The third is being proactive, not just sir alan parker is Chairman of Brunswick, which he reactive. It’s often said that we shouldn’t let a cri- Mr. Grant's three books, all founded in 1987. He has established a number of group international best-sellers, companies to Brunswick, including MerchantCantos and sis go to waste, and the companies that will bounce have been translated Brunswick Arts, and was knighted in 2014 for services to
back the strongest and fastest from this crisis are into 35 languages. business, charitable giving and philanthropy. MARLA AUFMUTH/GETTY IMAGES PHOTOGRAPH: BUCHANAN. NIGEL PAGE, PREVIOUS ILLUSTRATION
98 brunswick review · issue 20 · 2020 Among other feats, Kim Chambers is the first woman to swim from the Farallon Islands to San Francisco. Silicon Valley’s Hall of Fame Swimmer
or two years, kim chambers endured day after the many adults who cling to fantasies of athletic glory—F. Scott painful day of therapy trying to regain the ability to walk. Fitzgerald dreamed of quarterbacking the Princeton football It was an ordeal she wouldn’t wish upon anyone, an ordeal team long after he became a world-famous writer—except that she would never want to repeat. she never longed for aquatic glory. At age 30, she was an up-and- And yet. comer in Silicon Valley, the holder of two degrees from the Univer- “My injury was the best thing that ever happened to sity of California at Berkeley, including a Master’s in information Fme,” she says. management with an emphasis on computer/human interaction. Silver-lining stories are vital just now. Our need to believe that She’d come a long way from the New Zealand sheep farm where’d some good will emerge from the awful toll of the coronavirus is she’d grown up. “I was very much the corporate woman—high reflected in the world’s unofficial motto of recovery: build back bet- heels and all,” she wrote on her blog. “I made enough money to ter. Rallying behind that phrase, business and political leaders are think I was invincible.” EDUX
/R promising a post-pandemic world of greater equality, deeper con- Then one day while hurrying to an appointment she tripped on cern for the environment, wider access to better healthcare. her high heels and fell. She awoke in the hospital, where a surgeon Yet the Kim Chambers story raises a question: Why limit our told her good news—he’d barely avoided the necessity of amputat- hopes to outcomes we can envision? Ms. Chambers started swim- ing her leg—and bad: She had a 1 percent chance of ever walking ming in the hope that it would help her walk again, never imagin- unassisted. She was suffering from Acute Compartment Syndrome, ing that she would become a legend of the sport. in which swollen tissue and internal bleeding cre- She entered the water Perhaps we ought to keep our eyes open for unan- ate destructive pressure. “My life as I knew it was ticipated junctures. “I have had the great fortune hoping to regain her over,” she says. of plumbing the depths of a sense of self that did mobility. She became She did not think about building back better her not exist ten years ago, five years ago or even a year a record-breaking career in Silicon Valley. A former ballerina, college ago,” she writes on her blog. aquatic marathoner. rower and all-around fitness fanatic, she thought
PHOTOGRAPH: JASON HENRY/THE NEW YORK TIMES Ms. Chambers could serve as a role model for by craig mullaney about proving her doctors wrong. “Something
brunswick review · issue 20 · 2020 99 KIM CHAMBERS inside of me decided this prediction was unacceptable. I didn’t In 2016, you attempted what would have been the longest solo know how or when, but I was determined to prove all the doctors swim ever accomplished by a woman, in the Sacramento River. wrong,” she later wrote on her website. As she told the Brunswick As I read about it, what amazed me was how you fell short of Review, “Not a single time did my doctors discourage me. They the goal—and yet climbed into the boat expressing pure joy. were my biggest supporters and fans when I did prove them wrong.” That’s the only swim where the photo of me getting out of the water She was encouraged to try swimming at a local pool. Neither is me grinning ear to ear. I was elated. I did fall short. But when I the horrific scars on her legs nor her lack of swimming proficiency climbed out of the water that day, I could put my hand on my heart stopped her from showing up. Weightless in water, she discovered and say, “I did all that I could do that was within my control.” The she could move in it as she hadn’t moved in two years. “It was pure winds had kicked up. They were over 25 knots. For a solo swim, you magic. I felt free for the first time in years,” she wrote. really need the winds to be well under ten knots. If you’ve done all A larger revelation occurred when she accepted an invitation that’s in your control, then it can become kind of intoxicating to to swim in the 53-degree waters of San Francisco Bay. So-called surrender yourself to nature, to the sea, to the river, whatever might open water swimming requires a high tolerance for lack of control. happen. I didn’t see it as a failure at all. Visibility is limited, the temperature frigid, and progress sometimes thwarted by wind, waves and currents. Ms. Chambers loved it. Afterward, there wasn’t any internal voice saying, “Maybe you In the months and years that followed, this aquatic neophyte could have gone further”? evolved into one of the world’s most accomplished marathon I didn’t hear that voice. Being a marathon swimmer, you don’t have swimmers. In 2015, she became the first woman to complete the a personal coach. You don’t have all the amenities that come with 30-mile swim across frigid and shark-infested waters from the Far- being a high-paid professional athlete. Nobody’s cracking the whip allon Islands to San Francisco. “There’s no way that I would attempt to get you up at four in the morning. You have to do it for yourself. that swim. It’s too cold, too challenging. It’s just tough. I’m not in For all of my swims, I had a training plan. And I followed it to the that 1 percent of 1 percent. I can’t even say it’s like the Mount Ever- T. If you do that, then throughout the process you must combine it est of our sport. It’s something beyond that; it’s like the Mount Ever- with an acceptance that Mother Nature is the boss. When I follow a est on the North Pole in the middle of the Pacific,” says Steve Muna- plan, I follow it meticulously, because I know that I am the sort of tones, Founder of the World Open Water Swimming Association. person who would kick myself and say, “Well, you remember that A year earlier, she became the third woman (and sixth human) time, two weeks ago? You shouldn’t’ve stayed up that late.” to complete seven round-the-world channel swims known as the We live in a very curated world, with social media and whatnot, Oceans Seven. She won induction in the International Marathon and it is a world that celebrates only success. But there is so much Swimming Hall of Fame. Vito Bialla, an entrepreneur and founder to be learned, to be gained, from failure. I had what some people of an elite open-water group called Night Train Swimmers, says, may deem a failure in my early days of open water swimming. I “Kim went from a beginner to a good swimmer in two years, in the was going to England to do an English Channel relay swim. There next four or five years she made her mark and belongs in the league are six swimmers. You swim an hour on, five hours off. A friend of of all-time greats.” mine who had swum the English Channel said, “You’re going to Her transformation from disabled accident survivor to world- England. You’re paying all this money to go there. Why don’t you renowned athlete prompted her employer, Adobe, to give her a do a solo during the same trip?” In my naïvete, I said, “I’m going new assignment as an inspirational speaker. That led eventually to do that.” Ms. Chambers leaving Adobe for a career in public speaking. In the I managed to get a boat pilot. I told my swimming community midst of writing and editing a memoir, Ms. Chambers took time here in San Francisco that I was going to swim the English Channel, out to talk with the Brunswick Review. and people were horrified. They knew I had no business attempting EDUX “IN A WORLD THAT CELEBRATES ONLY SUCCESS, /R THERE IS MUCH TO BE GAINED FROM FAILURE.” PHOTOGRAPH: JASON HENRY/THE NEW YORK TIMES STUDIOS HARTCORN OF HARTCORN DAVID PHOTOGRAPH: PHOTOGRAPH: JASON HENRY/THE NEW YORK TIMES/REDUX
PHOTOGRAPH: DAVID HARTCORN OF HARTCORN STUDIOS swim clubs Francisco), inSan swim my thesecret journey ingredient of the DolphinClub andSouth EndRowing Clubbers of (open water opportunities. Between at thepeople Adobe andmy fellow mem - rolepublic-speaking at Adobe. incredible mewith gifted And they me to change into theroles Iwasgrowing into. Iended upina batted aneye. at people The Adobe meandallowed behind rallied wet hair,work with thewater. after justout of getting And nobody theseswims, were they with understanding. very I’dself come into anemployee. of view holistic toAs explore Ibegan thissense of incredible. It’s unusual to anemployer get understands who the after the accident) to 2019. And those nine years at Adobe were myself. And Iknow we don’t to get all choose that. it felt like disabled. alife being sentence of Ididn’t wantthat for any,what, if you’ll functionality ever have,” thehammer fell, and years. Iwanted to move again. wasshatteredmyself by thisnew reality. I’d for 15 aballerina been from me.stripped patient. Iwasamedical Any I’d vision for had For methephysical took goal precedence. My been had identity technology. ley, your focus wasn’t agrand onslam hitting inbusiness or weren’t focused on returning with avengeance toSilicon Val - It’s striking tomethatwhen you awoke you inthehospital, tions. for It me. wasafabulous swim myall condi sunny swims. wind - with Iwasgifted skiesandperfect a few years later, to Channel, do theEnglish anditwastheeasiestof thatMother knowing while Nature isthefinal decider. Icameback, Channelreturn asprepared to theEnglish asIpossibly could, the all that Iwasgoing Channel. return to theEnglish But Iwasgoing to legs. But it didn’t take long before the experience lita fire. I decided that Ihadn’t required. done thetraining so ashamed. Iwassodisappointed inmyself, evenIknew though tiredpretty spent. andpretty tide. For me, wasticking over. time well. Iwasnotdoing very Iwas your speed, swim you are approaching France anincoming with ments, andyou wantto make sure that, on based movenel. thetidal are with timed - swims These hours, andIwasn’t even halfway across thechan- Channel again.the English Iswamfor aboutseven doing. of something solo. Iwanted to Iwascapable what see do it.” I’d done theserelays all andIwanted to do Just cavalier being andthinking, naïvete, “I can part, itwasn’t coming arrogance. from aplace of Channel. across theEnglish a soloswim Onmy brunswick review ”I’M LEARNINGTHAT THEREISBRAVERY INCHOOSINGNOT TO DOSOMETHINGYOU COULDDO.” I didreturn to tech. Iworked at Adobe from 2010(three years When thesurgeon said, “We saved your leg. But we don’t know cameback to Francisco San my of with tailbetween my I sort ended captain theswim. boat The on Iwashauled theboat. Iwas Ididtherelay.So And afew days later, I’m in
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accomplishment. cold Pacific saying, swim.” was a bad “That It is always a mental five for swimming minutes.also support the You never out get of Channel, acrossboat theEnglish you it?” when canswim But there’s ing inthewinter, you conquer theday. thehardest challenge of nicate and lead organizations. andlead nicate - commu to media and social renowned ofdigital onexecutiveuse expert andaNewexperienced advisor York author, Timesbest-selling a heisalso mullaneycraig isaBrunswick Partner, inWashington, based DC. An hope for one, itreveal andonly will itself. intime have been. Not thatthere’s always asilver lining, but you have to over such collective could what of have grieving been, should what companies. What us. itmeansisdeeply personal for each of womanskinniest or richest intheroom, themost or having started ourselves. versionbest of doesn’t That the necessarily mean being just want to share I’ve what experienced. We have all to the aduty be imagine. I don’t inorder speak to pedestal. standon any I kindof do I did, what then others can accomplish far more might than they for it. Ihave can feet. handsandsmall Iasaswimmer small But if keeping busy on Zoom. my own. Amid COVID-19, aroom, of Ido missthe energy but I’m theocean, of in themiddle andnow I’m keeping busy doing iton vous. But itwasthisadrenaline aboat thatwasjust like jumping off Adobe about12,000. audiences put ner meinfront of Iwasvery of How did public speakingbecome your new career? late inmy life. I’m happy now. just where Iamright zon.the events I did continues each of to aftermath The perco of - mountaininthe (highest Americas,Asia). outside of andhighest mountainIclimbedwas mountaineering. highest The Aconcagua I wanted to from learn thoseswims, to andfor Iswitched awhile that you probably could do, mentally andphysically. what Ilearned I’m thatthere learning isbravery inchoosing notto do something What are you training for now? In those swim clubs,In thoseswim there’s attitude of “Why would you take a I believe that mine is a story worth hearing at a time of such grief, of atatime hearing worth I believe thatmineisastory I didn’t grow andIdon’t upaswimmer necessarily have thebuild For now, though, Idon’t have- or mountainon thehori aswim When you inthecold Pacific swim - inthemorn and you like feel you’ve just conquered theworld. five or 10minutes. thatwater,But outyou get of are days you when in the winter may in for be only saunter pastyou andjust inthewater. get There it’s cold. It’s foggy.” Then you an80-year-old see inthemorning.early Everyone isinbed. else And stand there on thebeach thinking, “Gosh, it’s so inme. believing community. asensehas been of It people hasbeen Sometimes in San Francisco in San Sometimes you in the winter u 10 - 1 M 102
most talented talented most Winner of the Winner ofthe history, she is “probably the By McDonald wilkinson. the planet.” most Tonymost Awards in person on person on carlton carlton
Audra and felt briefly likeand felt briefly closing aloop. wasathrill inJanuary her again with diva transformed intodiva awardrobe. transformed she wasMadame Garderobe, anopera Respect. In Disney’s lin’s mother intheupcoming biopic, son, playing be Aretha andwill Frank - , Fight The Good now sea- initsfourth currently stars asLizLawrence inCBS’s recitals—she’s covered that. of She all lywood films, soloalbums and concert operas, shows, TV blockbuster Hol- household word. Emmys, Grammys, electric. onstage andher voice, even then, were town in Pennsylvania. Her presence Mancha” inaregionaltheater inasmall mer stock production of La “Man of the world, inasum shewasstarring before—in 1989. Not yet to known Ms. interviewed had McDonald once most influential people.most influential onewas named of US’s she honor for artists—and highest her theNational MedalArts—the of 2016, President awarded Obama Barack in january, before thecoronavirus district inNewdistrict and completely shut down thetheater Then, the coronavirus pandemic struck Day attheEmerson andGrill.” Bar legend Billie Holiday jazz of in “Lady actor, most recently for her resurrection won more Tony awards thanany other talented person on theplanet.” Shehas Times hascalled “probably themost Audra McDonald,New The York whom versatileto Broadway interview star hittheUS,crisis theopportunity Ihad for “Carousel.” Garden”; in1994, shewon her first Tony on Broadwayappearing in Secret “The • Just three years later, shewas York. • Today her nameisa Time Magazine’s 100 Beauty andtheBeast Beauty
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PHOTOGRAPH: © ALLISON MICHAEL ORENSTEIN M McDonald Audra
PHOTOGRAPH: © ALLISON MICHAEL ORENSTEIN 104 take off—that, I wasn’t prepared for. That, Iwasn’t school. theway But my interms of career would at peace back uponstage, takingabreak from California. much Ifelt much very athome andvery gone to Juilliard. I’d done this theater all inFresno, prise; it’s theonly ever thingIhad done, before I’d Well, it’s notlike it’s acareer thattook meby sur think you were prepared for whatwas coming? your first year atJuilliardSchool ofMusic. Do you When we met in1989, you hadjust completed college-age daughter, andtwo stepsons. andanti-bullying. Shehasa3-year-old,equality a organization,rights for her public engagement on Human Campaign, Rights theUS’s largest LGBTQ young people. Shewon recognition from the House, shelter for aglobal homeless andabused emotion. through sudden surges of ings, over wordright to findthe and rocky struggles flowsinformation from her infire-hoserecount her of a function “hyperactivity.” In conversation, her career scope as of She dismissesthespectacular celebrity, her emotions available for anyone to see. compassionate andstrong woman, unmoved by events unfolded, itwasclear thatsheremains a youwithout init. My isbreaking yet heart again.” Twitter. aplace world assweet isnotnearly of “The time,” and “Frankie andJohnny intheClair de Lune.” hiswork, of including inotherstarred stagings “Rag McNally andshehassince close became friends her aTony andcatapulted her to fame. SheandMr. las played by thelate Zoe Caldwell. role The won starMaria opera Cal she appeared asastudent of productions. In Mr. McNally’s 1995 “Master Class,” theage. thesentiment of turing plays andmusicals thetone set for stage culture, cap blowand disturbing to thetheater world. His many rence McNally last week wasaterrible from thevirus stars, inpersonal ways. Ter playwright death The of website to stream live aday. webcasts twice through The munity Actors Fund, upa which hasset forformances money theBroadway alsoraise com- a vehicle to share their strongest emotions. per The hasalwaysarts done: connect andallow people them talent shared to inaneffort dothe what of glimpses online fromperforming their homes—intimate McDonald refuse to silenced be andhave been Offstage, Covenant on sheserves theboard of below,In theinterview only weeks before these “My kindTerrence,” dear sweet brilliant shesaidon Audra McDonald wasoften featured inthose us, alsohitseach of including Broadway virus The In response to including thecrisis, Ms. artists
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THAT SCARES ME GOING TO LEARN IS USUALLY THE THAT’S WHERE ARTISTICALLY. THING IRUN “THE THING“THE THE MOST.” TO DEATH TOWARD TOWARD YOU’RE
story. to commit suicide. Ididtry very, depressed very by thatpoint—that’s true avery where. So, yes, just generally being thatcoupled with going tostock aclassical some instead program of my teachers’ for andauditioned summer wishes 30 yearsI met ago. Iwent much Because very against allowedthat Iwasbeing to study. That’s why you and would be.the training didn’t really research how rigorous andhow specific I went to Juilliard my choice. own of But Ithink a sudden,And of all here I was—not forced, I mean entire life, Iever all wanted to do wasmusical theater. very,feeling lost—very, very conflicted. very My wasgoing what alotto on. had That do with Iwas pushing you toward opera, rather thanmusicals? Was thatareaction tothepressures atschool atsuicideattempt” while you were atJuilliard. You’ve talked how about you had“made afeeble career thatI’ve had. expecting. Idon’t thinkIcould have dreamt the 24/7 care for theresidents, but atthatmoment they was aSaturday, wasn’t theoffice staff there.There’s and an eveninga matinee preview. But it because that maybe shewould have it. abetter had of time ideaa good for adonation. aplace had shehad like If I’d heard about Covenant House, soIthought, that’s was. Shewashomeless, sexually trafficked, abused. about Billie Holiday’s childhood andhow awful it gift. formoney thinking anopening night Istarted Broadway for andIwaslooking aplace to donate No! ready I was getting to open “Lady Day” on they approach you? How did you build arelationship withthem? Did Covenant House alook. isworth readers are for looking aplace to charitable, be the Covenantof House—it isincredible. your any If of lives thespecial All thathave altered been because to taken be andnurtured—it’s care of soimportant. home, asoft place to land—andnotjust to land, but children andnoplace to go. To have asafe space, a young women young are who pregnantor with fered domestic violence, sex trafficking. Some are the foster careout of themsystem; have a lot of suf- them haveA lotof mental healthissues or have aged House kidsdo not. them just haveA lotof nobody. I didhave asupportive family. theCovenant A lotof Yes, absolutely. Iwasn’t from suffering homelessness. ofIs thatpart your interest inCovenant House? I had nodesireI had to go into opera, andyet that’s all I went down there to do a donation, between br unswick unswick review
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PHOTOGRAPHS: CLOCKWISE TOP LEFT, JOAN MARCUS; JEMAL COUNTESS/GETTY IMAGES, BRUCE GLIKAS/FILMMAGIC/GETTY IMAGES PHOTOGRAPHS: CLOCKWISE TOP LEFT, JOAN MARCUS; JEMAL COUNTESS/GETTY IMAGES, BRUCE GLIKAS/FILMMAGIC/GETTY IMAGES pression isimportant, Iwould do that—I would It does. my roleIf were to talk about why voter sup - kind of activism feel like real activism? in theBlackcommunity. portraying Does that the impact of voter suppression over generations In one episode of towards thedanger. I’m about evolution. all that’s So my calculus: Run flat on your face, be alearning experience. will but it where you’re going to themost. learn You may fall towardusually thethingIrun artistically. That’s me to death.” thingthatscares The meto death is from Iget the signal my gut literally is, scares “That time. thingattheright presented theright And with problems. He lostmeafter thefirst three words. hiscalculus college andwastakingusthrough one of my aboutthatbecause laughing older stepson isin No! There isnocalculus anywhere inmy brain. I’m any calculus tosortthem out? You must floodedwith be offers of roles. Isthere since. Almost sixyears ago now. catch him—itjust took my breath away. 16? And to watch them jump into andjust action thisboy,fear intheeyes andthetoughness of maybe him go from andsoalone—the sofrightened being emotionalget thinkingaboutthiskidandwatching the street. And I[voice breaking]—you know, Istill there.I was sitting And I watched a kid come in off to takeauthority a check. While were they doing that, were having trouble the whofinding had someone brunswick review No, my Igo with gut. Ialways like feel I’m being Igot emotional.Sorry I’ve them ever with been The Good FightThe Good
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sixth Tony award. won arecord-breaking Grill” in2014, below, she Day atEmerson’s Bar& HolidayAs Billie in“Lady “Porgy andBess,” right. she inGershwin’s starred Class,” In2012, above left. in“Master Maria Callas Caldwell’sstudent Zoe to award for her role a as won Tony her second In 1996, Audra McDonald
dom I’m when thatIneed on television. And soas thefree theconcert inform freedom work will of has to have meaning. thisword,singing this note atthismoment—it all thecharacter, anddesiresand needs of why are they just up there sound. makingapretty the wants All you’ve got to have areason for singing. You’re not When Ido master classes, Isay to my students, morecan bring character work into my concerts. my stage roles roles, of because or thetelevision I to the specificity work onstage.amount of Then, camera. then meto That agreater helps bring but insize small sothatitdoesn’t overwhelm the there.right moment The calculated, hasto very be andthinkingloudly,ity but you’ve got thecamera work,doing television it’s somuch aboutspecific illuminate all eachI findthatthey other. When I’m opera, musicals, Broadway, andfilm? TV Is itdifficult to betweenswitch theneeds of can bring thesestories tocan bring life. cast intheseroles, but thescenes behind people that make sure you have not only people that are being diversify thestories we are telling intheworld andto from theirexperience. own That’s soimportant, to have African intheroom, writers American speaking Robert andMichelle King, but alsoto thatwe thefact roleThis inparticular. values, it makes it easier for me to play these roles. Ibelieve andmy what Iaminterms who of less with actor. an as job But to have my character so seam be question it, but Iwould absolutely do it. That’s my All those rolesAll my inform concert work. And the That’s a testament not only to the show runners, 10 - - - 5 AUDRA McDONALD disparate as they may seem, they all for me inform just as important as she is—that’s exactly what she each other. believes. That was a good example for me early on.
At Juilliard, you were torn between musicals and Have you ever thought about directing? opera. You seem to have found a way to just do Every once in a while, it crosses my mind. But then I both, and more, rather than have to choose. think about how difficult it is. I’ve worked with some I think it’s because I’m just hyperactive. I’m inter- amazing directors. There’s a lot of—I don’t want to ested in too many different things. So I just haven’t say “babysitting,” but there’s a lot of caretaking that said no to myself. That’s not necessarily a good thing, goes into it. And I think, until I have all my children but I know myself artistically well enough to know out of my house, that’s something that I don’t think I that it’s fulfilling for me. would have the bandwidth to do. As much as I think The reason I got into concert work is because it would be fulfilling, until I am not called upon to be Michael Tilson Thomas [internationally lauded a caretaker on a daily basis at home, I don’t think I conductor and Music Director of the San Francisco have the energy to do it. Symphony] wrote a letter that sat on somebody’s desk for a long time before it got it me, saying, “Hey, “I’VE NEVER BEEN Are there productions that you think directors I think you’re kinda great. I’ve seen you in a couple IN A POSITION should undertake? Roles you’d like to play? Broadway shows. I’d love to have you come and sing I would love to do a gender bend on the musical with the San Francisco Symphony at Carnegie Hall WHERE I THOUGHT, “Sweeney Todd” and play Sweeney [a murderous for our opening night, 1998. You’d be singing Gersh- ‘WELL, ALL OF barber]. I think it would be a wild challenge. win, ‘Porgy and Bess.’ And I don’t know if you’d feel And then there’s the work I’ve done with young comfortable with that, but I think you’d be great.” THIS JUST LIVES and up-and-coming composers and lyricists. Pro- And I read that, and I was going, “Well, that sounds TO SERVE ME.’ ducers need to take a chance on more people of scary—but it’s Michael Tilson Thomas—but I’m color—more women even. There’s the whole trans just a Broadway singer now—but, OK, yeah, maybe WE ALL community that, as we see—I mean, look at what I’ll do it!” You know? Just go for it. LIVE TO SERVE Janet Mock [American writer, TV host, director, producer and transgender rights activist] has done. When I met you, you were very much one of the THE PIECE.” We need as much representation as we possibly can. troupe. Does that kind of camaraderie get harder I would love to see what roles and stories come to find as you become more of a star? out of those segments of the population when they Oh, it’s so necessary. It takes an absolute village to are given the opportunity and financial ability to be put on a show. You may be like “Hey, I’m the diva produced and shown on a large stage. Like “Slave out here singin’ in front,” but you have to have great Play” [the hit play that premiered in 2018]. Look at people turning on the lights or costuming you well what [“Slave Play” playwright] Jeremy O. Harris has or throwing those costumes on you in time so that done. He’s basically a kid right out of Yale, and look you can get there or giving you great words to say or what we’ve got because of his work and because of music to sing—or the whole enterprise falls apart. commercial producers taking a chance on bringing Maybe because I grew up in dinner theater and this very provocative work to Broadway. we were all part of the entire enterprise. You had to strike your own sets, help make your costumes, With all this going on, is there anything like a all that stuff. I’ve never been in a position where I typical day for you? thought, “Well, all of this just lives to serve me.” We Nope! [Stressing every word:] Not even a little bit! all live to serve the piece. Every day is different, especially because my husband Everybody has to come to that theater eight times is also a performer and an actor [Will Swenson, fea- a week and do that job. I learned from people like tured in Broadway shows “Hair,” “Les Misérables” Zoe Caldwell when we were in “Master Class.” [Ms. and “Waitress”]. I mean, you and I were talking about Caldwell and Ms. McDonald both won Tonys for “what’s the calculus”—every day here is “What’s the carlton wilkinson is their performances in the 1995 play. Ms. Caldwell Managing Editor of the calculus for today? How do we get through today? died in February 2020, after this interview.] We Brunswick Review. He Oh, we were gonna be home for the next week, and toured that show before we came to New York and holds a Ph.D. in Music you just got a job offer to go off to Vancouver for and is an award-winning she always knew the name of every usher, she knew six months? Well, OK! We’ll figure that out too!” So writer on music for news- the name of the doormen, she knew all the crew’s papers, websites and yeah, two actors and being parents, there is no typi- names. Zoe makes everybody feel like that they are academic journals. cal day. The typical day is chaos. u
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na T Ermenegildo or“Gildo,” Zegna, isthethird generation business for 110years. of hisfamily run to thecompany, in been which has But COVID-19—which thecompany’s struck its celebrating 110th anniversary. the brand with At Zegna, year, 2020 was meant to a celebratory be family at the company’s the Zegna tion of helm. thefounder,son of represents thethird genera- compassionate masculinity. definition of advocates thatelegantly paign for amore fluidand manufacturing, and #WhatMakesAMan, a cam- to foster sustainable in fashion practices industry initiatives, including #UseTheExisting, which aims ment to community hasblossomed into abrace of in Biella meter OasiZegna Alps, anditscommit has expanded thereserve into the100-square-kilo onfocused thosecore values. Today, thecompany wide, Zegna’s leadership haskept itsmission closely 500storeswear with and6,000employees world- to thisday. andthesurroundingees community thatcontinues developed aconstructive employ relationship with Trivero,town of where hiswool waslocated, mill and nature reserve andreforestation project around the that effort, itsfounder, Zegna, Ermenegildo created a andtheenvironment.munity In the1930s, of aspart back to itscustomers,giving itsemployees, itscom a closely knit, dedicated organization family-run to business. sectorsnificant importance to all of toprise thesurrounding community are sig now of employees anenter treatment of andthevalue of many businesses’ of part corporate strategies. The thrown around by few, aselect but anecessary rather inclusion are andsustainability nolonger buzzwords Ermenegildo Zegna,Ermenegildo thenamesake andgrand As leader ithasgrown into inmens aglobal Since itsfounding in1910, hasremained Zegna Corporate responsibility, diversity, and equity social concerns.social challengesmounting related to of amyriad in history, companies when must address Group seems tailor-made for this moment he culture zegna the ermenegildo of
10 ------7 and wellness. sustainable development, culture, education, health resourceon natural enhancement andconservation, one Zegna. Fondazione The is developing projects 2000, we established a family foundation, Fondazi livedthose who inhiscommunity andoutside it. ple, not only worked those who for the company but he wasalsocommitted thepeo to of thewell-being hishometown wasn’t of beauty ural hisonly focus; operates toand still thisday. thenat But preserving wool operated mill Zegna where the Ermenegildo sive reforestation themountainsaround Trivero, of as itistoday. For instance, heaccomplished amas which, atthetime, wasn’t asexplicitly talked about was apioneer increating value—a social concept in which we live andwork. Ibelieve my grandfather committedbeen back to to thecommunities giving Zegna, asafamily both andacompany, hasalways the challenges around issues? societal How hasyour leadership hadtoevolve tomeet we come, andinwhich we do business. andcommunities from theterritory which care of give back to andto thepeople ouremployees; to take tions—to useresources others; to for of thegood andenvironmental social possible the best condi to understood create thatwasnecessary wisely for hisproducts. he sought thequality obtaining He community thelocal relationship waskey with to My realized grandfather thatestablishing apositive ahead of histime.Why do you thinkthatwas? Your grandfather’s vision for thecompany seems dedication.”sense of commitments we’re thesame with undertaking I have nodoubt thathewould makingthesame be says.Zegna hewere thebusiness today,“If running tinues to us generation after lead generation,” Mr. sonal protection equipment. plantsto producemanufacturing much-needed per tions inItaly andabroad andconverted their of part Italy,demic in northern made direct dona Zegna - businesses around theworld. thepan At of thepeak thenew challenges facing of themting to theservice to itsfounding values remains firm, andheisput itsmostdifficultmoments,one of his commitment better world. Despite thecompany leading through its current role conversation in the global toward a about thecompany’s response to thepandemic and jubilation.sense of We spoke Zegna to Ermenegildo hard—upended Milan especially anyhometown of 108 We hestarted. forward what In want to carry “My grandfather’s philanthropic foresight con
ZEGNA ------THEIR PRINCIPLES TO INSPIREMEN RESPONSIBLE THAT CREATE TO EXPRESS “WE WANT ABETTER THROUGH FUTURE.” ACTIONS
their positive own in shaping thefuture. part responsibility anddesire to senseindividual play of country, ourawardees’ but alsoencourages each of commitmentour own to our thedevelopment of studies or research abroad. notonly This manifests Italian university to graduates enable postgraduate sibility. Every year we award respon social back andof giving of strong traditions a new asaconcrete generation way to express our my to ing thephilanthropic grandfather of vision Founder’s Zegna Ermenegildo Scholarship, extend to manage anew normal. communities, new paradigms andtheapplication of employees, connecting with ways of customers and the future: flexible anincreasedworking, useof new into carried be spirit. Lessons in2020will learned anew with rethinking and questioning everything andenergizing.moment inspiring hasbeen We’re thisonce-in-a-generation comingcreativity out of world’s hotspots. earliest Italy’slocated intwo of worst-hit regions andthe but andproduction ourheadquarters are facilities only were we forced ourstores, to of close all nearly pandemicThis exceedingly hasbeen difficult. Not What have you learned from COVID-19? family than ever. more important community and other andupholding oursense of unknowns, which makes communicating each with ing across theglobe. We continue to face many continued, we continue to adjust to work ways of to take one another, care of And asthesituation has responded to thepandemic. We knew thatwe had and keys to ahealthy thedevelopment future. of and future. our DNA of Heritage are andlegacy part and authentic history, to our past, belonging present guided hasbybeen Zegna strong values andatrue ficult to communicate to outsiders. Since our origin, thecompanyare within wellknown but dif canbe family weren’t synonymous. are Those strengths that we wouldn’tperhaps thecompany able to be if and inaway and pushboundaries that more agility with isdeeply rooted.which Zegna We are able to move structure, are clear, ourpriorities asare thevalues in pany—is definitely anasset. Given oursize and wayThe we are organized—as com a family-run valuesocial efforts? allows you more flexibility in prioritizing your Do you thinkbeingafamily-run, private company As part of that, of sixyearsAs part ago we launched the Yet ithasalsobrought uscloser together. The Our family-run structure largely drove structure Our family-run how we br unswick unswick review € 1 million to1 million talented
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PHOTOGRAPH: COURTESY OF ZEGNA PHOTOGRAPH: COURTESY OF ZEGNA munity asfundamental values. munity environment respect andcare of andcom of - vision to embrace thischallenge; matches itperfectly our toward asustainable world. For natural usithasbeen companies thatrepresents aproactive step forward try’s Fashion Pact—a 250 remarkable alliance of consumer fibers thatare reworked for anew life. Winter 2019collection, to usepre-existing andpost- tiative commitment, isabrand the launched with not waste any material. Our#UseTheExisting ini processes thatemphasize recycling to ensure we do generates.industry We’re working to usesources and waste theluxury consciousvery abouttheamountof the production cycle. But this is not enough. We’re environmental aslow impact throughout aspossible resources such aswater. We are working to keep our Wool relies manufacturing heavily on natural Howronmental impact. isZegna different? The fashion industry isamong theworst for envi raw material to theend product.the primary to have complete nearly ownership andcontrol from oursupply chain, of integration tical which allows us we have ourclients. with A key step thever hasbeen product excellence andtheestablishedrelationships tal change, we to had maintainourcommitment to we do.everything As we thisfundamen undertook presentedwith regard challenges significant to ducer menswear brand inItaly luxury to aglobal from proOur transformation atop-quality fabric - company withregard tobuildingvalue? social What are thegreatest challenges you face asa by OasiZegna. acollection thatwasinspired behind and creativity anywhere intheworld to experience theemotion Trivero anyone, allowing format anew digital with enhancement. of form believe we in diversity because mindsets truly as a intent isto continue andinternational mixinglocal company over branches all with theworld andour toThanks thisapproach, istoday Zegna aglobal we must outward, look toward theworld. therest of business andhow we approach new challenges. have always influenced the way we’ve developed the located. Ourroots inTrivero mindset andourlocal in1910andwherestarted ourwool isstill mill Trivero isour hometown—it’s where everything in which thecompany operates? How much do your roots inTrivero affect the way brunswick review I’m also very proud that Zegna is part of theindus I’m of proud ispart alsovery thatZegna We presented our Summer 2021 collection in We are ourheritage, proud but of we alsoknow
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- - - - - drov and office. in Brunswick’s New York brendan rileyisPartner of masculinity.” notion traditional CEO the its calls “static, that challenges what SS20 aneffort campaign, #WhatMakesAMan? featured inZegna’s is oneof thecelebrities Actor Mahershala Ali natasha aleksan- are Directors inMilan. lidia fornasiero
their own, aswell. stand andrespect ourapproach andare makingit this path. Iamconfident thatourcustomers under tomers, public, andto thewider to accompany uson tomorrow.world how we today make plantseeds abetter thatwill ucts, ourfounder, how we of honor the legacy and reuse and reinvent the existing to create ourprod ayoungermeet audience where are, they how we ing ourvalues, how we talkto ourclientele, how we company. we’re Throughthecampaign examin- approach to how we we think aboutwho are asa paign, it’s for usto take anopportunity anew ter future. ciples through responsible thatcreate actions abet legacy. We wantto inspire men to express their prin aim isto move from inner reflection and action to ter world. lenge ourselves to believe inandwork toward abet confident to show emotions, more able to chal to embracerisks personalities, our individual more well astheir strengths. We are to more take willing are coming their inner to weaknesses as terms with given rules; ithasalways evolving. been Men today Masculinity isnotone thing, nor itisdefined by itever did. nolonger works—if masculinity of toour goal understand anddesires. their needs them. We know them, andwe have always made it clothing andmodern for timeless and a purveyor of Since 1910, side has been men by Zegna side with Why did Zegna amantoday?” launchthat? to be Tell doesitmean usthecampaign “What about this specific moment.this specific that haveseizing new opportunities emerged from candevelopthat they itinto amuch larger strength, tonaturally thisgeneration, soIhave hopes high componentdigital issomethingthatcomes more forgetting the company culture andtradition. The thecompanyegy isalready undertaking, without in thecompany,- strengthen strat thedigital will generation, Zegna hope the fourth some already development asaddressed by ourfounder. Ireally tofundamental assets contribute to thecompany sion for work, disciplineandattention to detailsas and environmentalas ethical responsibility, pas Every by led generationhasbeen values Zegna such the evolution of Zegna? What role istheyounger generation playing in The campaign represents campaign The aninvitation to our cus “#WhatMakesAMan?” isn’t just cam- a brand evolving hasbeen over campaign The time: Our believe I firmly thatthestatic, notion traditional u 10 ------9 THE UNARMED COP
uring 31 years in law enforcement, How British me that our culture and our heritage are still there.” Sir Mark Rowley walked the streets as a police maintain At a time of intense scrutiny of police killings in constable, led a covert unit against orga- the US—most involving firearms—I found myself law and nized crime, served as Chief Constable of marveling at the idea of Britain’s unarmed police. Surrey’s large police department and ran order largely This was not out of any crazy hope that US police Dthe UK Counter-Terrorism Policing unit. without the might put down their guns. In the most armed One thing Sir Mark never did was carry a gun. use of guns. nation in the world, an unarmed police force would “I’ve commanded firearms operations. But I’ve by kevin be defenseless. Nor is it any big secret how police in never carried a firearm,” he says. “Nor do I look back helliker. the UK manage without guns: The UK ranks 127th and wish for one moment that I’d carried a gun.” in guns per capita, according to the 2017 Small In this respect, Sir Mark typifies the British police. Arms Survey, which means that there’s little (though More than 90 percent of UK police officers don’t not zero) risk of an unarmed British police officer carry guns. In surveys, the vast majority of them say encountering an armed assailant. Still, a society not they want to keep it that way. “Whenever there’s an that different from America—in fact the nation that incident that starts people talking about arming our Sir Mark Rowley QPM gave birth to America—functions with unarmed police, someone takes a survey and most officers say, was knighted in 2018 police. How did that happen? And might there be in for his “exceptional ‘I don’t want to be armed. That’s not what I joined to contribution to it any revelation worthy of consideration here?
do,’” says Sir Mark. “That heartens me. It reassures national security.” After I shared those questions with my colleague HAGALZ OF COURTESY PHOTOGRAPH:
110 brunswick review · issue 20 · 2020 PHOTOGRAPH: COURTESY OF HAGALZ you might actually escalate risk by escalateyou officers. actually risk arming might In you wantto change that?I think there’s aconcern that unheard of. you’re If apolice officer here,why would themurders. behind tackle theorganized crime upataskforce set ernment to coordinate to efforts was inthenews for ages. It’s inthenews. still gov The - murderedwere tragically inManchester in2012, that Right. By contrast, two when young women officers of two police officers in Texas. buried inTheNew York themurder Timesabout news. Just yesterday, there was ashort article the murder of apolice officer intheUSisnot big The average 50—that ishigh enough—about 120,000 cops. What’s that number intheUS? intheUK,murdered duty out of inthelineof On average, lessthanone police officer a year gets without arms. imagine any police officer preferring to work It’s a measure of how American Iamthatcan’t me from hisLondon home. issues. integrity He sports intocially spoke global to insensitive thatspecializes firm investigations espe communities. And he’s aboard member atQuest, a offenders groups into andother vulnerable tion of and reintegra the supervision digitizing enterprise Executive Make Chair of Time Count, a new social improve organizations help preparedness. He isalso to leadership expertise andcrisis technology gaming founded Hagalaz, which usesnew methodologies, and thepolice to had force.” uselethal were several under persuasions attack by terrorists of and confidencetrust even in the public while we Adviser, Sir Mark wasanational asset. He instilled my National asDeputy “Through time Security colleague Paddy McGuinness echoed that praise: 2017.”leadership through theattacks of His former threat andpersonally providing reassuring national unprecedented of atatime tion to nationalsecurity Sirknighted Mark for his “exceptional contribu attacks.of After hisretirement in2018, theQueen rorism chief, overseeing aunitthatthwarted dozens UK parlance—and ended itashisnation’s anti-ter the West Midlands Police—a “bobby on the beat,” in hislawbegan enforcement career asaconstable in andformer colleague,friend Sir Mark. Advisor,Security heintroduced email to his mevia astheUK’s formerly served who National Deputy Paddy McGuinness, Senior aBrunswick Advisor brunswick review Such are here they’re outrageous tragedies because After in2018, leaving policing Sir Mark co- University, Cambridge of A graduate Sir Mark
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- - - - 120,000 GETS MURDERED OFFICER AYEAR OF DUTYINTHE ON AVERAGE, ONE POLICE IN THELINE LESS THAN UK, COPS. OUT OF
bruises inmybruises career, policing but I’m alive andwell. addict. justice So wasdone. I’ve afew had knocks and Iwasfitandheadrug than hewasbecause As itwas, hethrew itaway andIwasfaster andran he would have around turned andpointed itatme. more inUKpolicing, andarmed militarized maybe around.keep thanturn rather running we were If hedecided when to pleased very throw itaway and a gun. I didn’t was carrying who bery have one. I was ended upchasing aguy who’d rob done anarmed Not really. When promoted Iwasanewly sergeant, I police officer when you wished you hadagun? must have beenamoment inyour career asa the meanstoact on suicidal impulses. Still,there among gunowners, simply they because have there’s research showing higher suicide rates among current andformer police officers. And a record numberof suicides in2019—228— health for assistance USpolice officers reported That’s true. Anonprofit that promotes mental among police their family. officers andmembers of agun?There’s need actually suicide, of alsotherisk downsidesThe are serious. Why you don’t them if risk stolen guns. USpolice28 officers were killed by their own Yes. AnFBIreport says thatbetween 2002–2011, their gunafter own itwastaken by anassailant. the States, there isdataaround officers being killed by eight minutes of thepolice called. being minuteseight of are shotby thepolice. were They shotdead within the vehicleThree guys andthe three out get of guys drove over andmowed abridge down some people. ber theattack on London terrorists The Bridge? we shot dead quite afew terrorists. you Do remem very, canbe els very, high. very Onmy watch, in2017, well over ourofficers 90percent unarmed. of armed.being It wasabig deal for us, left but itstill have taken usfrom 5.5percent to officers 7percent of gaveand they to us. money arm usextra might That David Cameron that with cussed and Theresa May nationalcounter-terrorism,in charge of andIdis suchto eventualities. deal with At thattime, Iwas officers armed decided we alarger needed number of after theBataclanattack andother Paris events, we theworld, of oping mostnotably inother parts After at terrorist looking were attacks as they devel your watch? police officerscarrying guns rose slightly under Did Ihearyou say thepercentage of British That small percentage small That lev does meanthetraining 11 - - - - - 1 SIR MARK ROWLEY
That was a consequence of changes we’d made in the previous two years, having more armed officers. But still, only 7 percent of your officers are armed, and three roving terrorists are shot dead in eight minutes? I know the NYPD or Chicago or Los Ange- les police would be very happy with that outcome. I’m not suggesting the US could import that. Our armed officers are trained to a far higher level than your average armed American cop because they can be, because it’s a small proportion. Ours are doing five weeks a year of training. When only a small per- centage of your officers are armed, you can afford that kind of investment. Every one of our armed officers is actually trained to deal with terrorists who might appear to be wearing a suicide belt. The training to a higher level means you’re much less likely to unnecessarily shoot a member of the public. We have various training kits in the UK where you take your people through different scenarios, Armed London I go to a mate to acquire a firearm for the night to perhaps using a laser gun, and it shows you when officers—a tiny portion come around to your house and kill you and then I’ll of the total—quickly they fire and how much they fire, and it improves ended a terrorist get rid of it. By running surveillance against the more judgments and decision making. attack on London serious criminals, the UK police can often intervene Without that training, an officer can shoot the Bridge in 2017. when criminals are arranging to pick up firearms. wrong person. Or let themselves get tunnel vision where they fail to see a line of innocent people at a To the extent that respect is rooted in fear, bus stop behind the bad guy. Learning to get as much doesn’t a sidearm engender respect? information as possible before you fire, waiting a I disagree with respect being synonymous with fraction of a second longer to see that it isn’t actually “OUR ARMED fear. If you only respect your parents because you’re a weapon he’s carrying. The practicing of that kind of scared stiff of them, that’s not great, is it? It may be judgment is very difficult, but that’s what our armed OFFICERS ARE true in the States that a firearm is needed to persuade officers are trained to do. TRAINED TO A FAR anybody to do anything, but it’s not true in the UK. Of course, with fewer armed officers, there’s a I’m not arguing for a UK model in the States. I’m danger your response might not be quick enough. HIGHER LEVEL simply saying that police officers here make thou- You have to be able to manage the logistics very care- THAN YOUR sands of arrests across the country every day without fully when you’ve got fewer armed officers. But we’ve using firearms. shown we can respond quickly. AVERAGE ARMED Police are equipped with things like tasers and AMERICAN COP with incapacitant spray in the UK, and those non- Are other European police forces unarmed? lethal options are used from time to time. But the Generally, the European police are armed. But you BECAUSE THEY degree of force required in this context is entirely dif- have to put it against our firearms law. If you had a CAN BE, BECAUSE ferent to the American context of a gun ownership handgun under your bed in the UK and we heard culture that goes back hundreds of years. about it, got a warrant and searched your house, you IT’S A SMALL My side would never suggest the States should dis- would go to prison, I believe for a minimum of five PROPORTION. arm police, based on what I can see. I do think there’s years. You might have no criminal history. We haven’t a question about what proportionate arming looks proved any criminal intent, but you’ve got illegal OURS ARE DOING like, and about giving the police the right weaponry possession of a handgun and you’re going to get five FIVE WEEKS and the right training to do the job. years. That’s quite a big difference to other countries, From what I’ve seen, it’s not always propor- especially the US. A YEAR tionate in the States. Some of the equipment that In the UK, firearms are harder to obtain. That all OF TRAINING.” was passed on to the US police after the Iraq War but eliminates spur-of-the-moment actions, some- sends an odd message that the way to police our body getting shot over an insult in a bar. Here, fire- communities is with the same equipment that was arms are used when they’re pre-planned. You and I used to deal with terrorist insurgents in a war over-
have fallen out over some drug dealing business, so seas. That probably doesn’t help strike the right ODD ANDERSEN/AFP VIA GETTY IMAGESPHOTOGRAPH: GETTY VIA POPPER/POPPERFOTO IMAGES PAUL PHOTOGRAPH:
112 brunswick review · issue 20 · 2020 PHOTOGRAPH: ODD ANDERSEN/AFP VIA GETTY IMAGES
PHOTOGRAPH: PAUL POPPER/POPPERFOTO VIA GETTY IMAGES UK, and at the end of my period as chief there,UK, my aschief period andattheend the of police work done thatgets inthe of annual survey resources into community policing. There wasan London,just on theedgeof to theplace. give asense of inacommuter people ment amillion policing zone and 1,500 unsworn staff. It’s a decent-sized depart Surrey,stable of aforce maybe 2,000police officers of giveI’ll you two. con when first Iwas The came chief meaning of community policing? What experiences inyour career encapsulate the is found to insufficient.” be theexercisewhen persuasion, of advice andwarning the law or tosecure of restore observance order only “Police usephysical force to theextent to necessary force.amount of Then there’s Peel’s Principle Six: gerous individuals. You to need use the minimum you dan to need public astheweaponry deal with the to thinkasmuchof aboutmaintainingthetrust physical theuseof force.”tionately to of thenecessity secured thepublic thatcanbe diminishesproporof force isPrinciple Four: cooperation of degree “The occurs to police we mewhen talkaboutanarmed world theninethat ascommunity policing. Oneof around isknown what the remains thefoundation of years ago, andyet Peel’s Policing Nine Principles of policing’s about. inmind, Bear 200 thiswasnearly Police,politan Peel drew on what upnineprinciples It by waspolicing thepublic. consent of itary. It wasbottom-up community law enforcement. repressive, thiswasn’t top-down, thiswasn’t paramil constabularies.called were They clear thiswasn’t very dent constables together into police forces which are thisideahad thatyou to need theseindepen stick all would policing. say modern Peel is the founder of Metropolitan Police people in1829, lotsof andwho Peel, Home the British Secretary, founded who the organized inplaces like London. It wasSir Robert ies developed, andnow you somethingmore needed Revolutiontrial the Napoleonic and post Wars, cit- bottom-up fragmented model.very After theIndus swear chap good inalocal asaconstable. wasa This ishes. To muscle, abit of would them help with they Before Revolution, theIndustrial you all waspar had were law incharge andorder of intheir parishes. In Britain, inthe1700s, there were who magistrates How did theBritishsystem come about? and police. andrespect between communities trust balance of brunswick review During the four years I was chief there, thefour yearsDuring Iwaschief Iput more you for policing, wantpublic support If you need the thefirst Alongcommissioners with Metroof
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------9 SIR ROBERT PEEL’S PRINCIPLES: He also twice served as served as He twice also Sir Robert Peel, who in Sir Robert Peel, whoin called “bobbies” after “bobbies”called after Metropolitan Police. Police. Metropolitan UK policemen are UK policemenare 1829 formed the Prime Minister.
6. 5. 3. 2. 4. 1. around regularly. You him.” cantrust Mark. He’s thispatch and in he’scharge of walking toknown theshopkeepers all andothers. “Oh, that’s police officerwho knows their patchwho is and ently. It’s abouttrust. It’s having alocal abouttrust behavingdiffer about afamily started member who the nosyneighbor. Ortherelative suddenly worried should know aboutX.” were calls These literally from too much aboutthis,worrying you but Ithought to thepolicetrusted enough say, “I don’t I’m know if incommunities people who of in some casesbecause my watch over four years, we stopped 27attack plots, people. But it’s community alsoabout policing. On resourcescialist armed really dangerous dealing with cated undercover operations. It’s aboutspe partly aboutintelligenceis partly agencies doing sophisti- the nationalcounter-terrorism machine. work That mation from thepublic. asset. andinfor It support thepolice helps vital get thepublic intheUK. isaconcrete of trust That trust Surrey to police risen have had level of thehighest
and disorder. preventis to crime existwhich thepolice The basic mission forThe basic
the law. to service impartial strating absolute demon- constantly public opinion butby not by to catering serve public favor Police seek andprePolice seek the public. the respect of tain secure andmain to of thelaw able be to observance voluntary of the public in tion the willing coopera Police must secure observance of thelaw secure to necessary force theextent to Police physical use actions. approval of police dent public upon isdepen their duties perform to police The ability of the The ability use ofuse physical force. of the the necessity to proportionately diminishessecured public that can be public that can of the cooperation The degree of Now, flip forward a few years when I’mto running
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and existence. welfareof community citizen in the interests incumbent on every which are duties to full-time attention who are give to paid members of thepublic only being the police public are thepolice; are the public andthe that the police tion the historic tradi to ity public that gives real relationship with the a should maintain Police, at all times, the judiciary. usurp thepowers of never to appear their functions and strictly toward direct their action Police should always dealing with it. in action police visible evidence of disorder, not the of crimeand absence efficiency isthe The test of police The test of police to be insufficient. be to and warning is found persuasion, advice when theexercise of restoreor to order only
New Westminster Police u
11 - - - - - 3 Critical moment
MAY 14, 1796
s a child in gloucestershire, england in Mothers have their widely used first in Africa, India and China. Slaves the 1760s, Edward Jenner, creator of the first babies vaccinated kidnapped from Africa introduced it to the Ameri- Awidely used vaccine, overheard a dairy maid say, in this 19th century cas. English society saw it being used in Turkey in the painting. As many as 90 “I shall never have smallpox because I have had cow- percent of infants who mid-18th century and brought it home. pox. I shall never have an ugly pockmarked face.” contracted smallpox Jenner himself had been variolated at age 8, a few Smallpox had been a scourge for all of recorded died. For everyone else, years before he overheard the dairy maid’s remark. death rates ranged history. No treatment was ever developed. For in- from 20 to 60 percent. When he later became a village doctor, he saw the fants, it was nearly always fatal. Upwards of 20 per- young woman’s bold claim borne out: An infection cent of sickened adults died. Each year in 18th cen- of the mild disease of cowpox left people immune to tury Europe, the disease killed an estimated 400,000. smallpox. On May 14, 1796, he injected a boy with Those who lived bore scars and a third were left blind. the cowpox virus. Later the boy was variolated and But survivors never got sick from it again. Even showed no symptom of smallpox—he was immune. a mild case could grant immunity. Various cultures Jenner called it “vaccination,” from the Latin for cow- seized on this and found crude ways to induce mild pox, “variola vaccinia” (from “vacca” or “cow”). infection, using material from the sores of smallpox Jenner’s invention eventually made smallpox the victims. In China, scabs were ground to a powder first disease to be eradicated, in 1977. Meanwhile, and inhaled. In Africa, they were bandaged into a cut vaccine science has turned polio, diphtheria, tetanus, on the skin. In Turkey, small scratches were touched measles, flu and a score of other diseases into largely with needle tips carrying droplets from the sores. historic threats. The round sores gave the disease its Latin name, All of which brings us to today, to this moment, “variola” or “spots,” so inoculation was termed “vari- carlton wilkinson is when a widely available vaccine to defeat COVID-19 Managing Editor of the olation.” It wasn’t foolproof, but it typically didn’t Brunswick Review, based is the hoped breakthrough for which nearly all the
leave scars and far fewer people died. Variolation was in New York. world is holding its breath. u GETTY VIA GROUP IMAGES IMAGES ARTERRA/UNIVERSAL PHOTOGRAPH:
114 brunswick review · issue 20 · 2020 Brunswick Group OFFICES Brunswick Group COMPANIES
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