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Hello and welcome to Modern CEO! I’m Stephanie Mehta, CEO and chief content officer of Mansueto Ventures. This bonus newsletter from Davos explores the strategic relationship between CEOs and chief technology officers. If you received this newsletter from a friend, you can sign up to get it yourself every Monday morning. In my previous life as a technology journalist, I wrote and edited countless stories about corporate chief technology officers (CTOs) emerging as key partners to their counterparts in the C-suite. When marketing functions became more data-driven, chief marketing officers clamored for attention from product and engineering. Today, chief financial officers (CFOs) push tech leaders to drive companies productivity gains from software and automation even as they scrutinize tech buying decisions. Now, as artificial intelligence (AI) and agents become pervasive at companies, CTOs have another executive to collaborate with: their bosses. In an interview with Fast Company editor-in-chief Brendan Vaughan during the World Economic Forum annual meeting in Davos, Switzerland, Cloudflare cofounder and CEO Matthew Prince and CTO Dane Knecht made the case for technology chiefs as strategic partners to CEOs. The C-suite syncs up Prince says Knecht has been instrumental in pushing him to adopt AI beyond fun use cases, such as creating amusing images for company slide presentations or invitations for his kids birthday party. The best CTOs in the world are going to be the ones that are saying to even the 51-year-old or 61-year-old or 71-year-old CEOs, You can do this too, says Prince, whose company provides customers with tools to protect and improve the performance of their websites. And if you can do that, its going to actually help you build better companies. Its a sentiment echoed by Nacho De Marco, CEO of global software development company BairesDev. (BairesDev partnered with Fast Company on the event featuring Prince and Knecht.) He says his clients, who turn to the company to help scale their engineering teams, see AI as essential to their future. When the CEO and CTO are aligned, that transition usually goes really well, he says. Knecht, who started out as Cloudflares first product manager, eventually took a role building and leading the companys emerging technologies and innovation (ETI) unit. Prince carved out 10% of the product and engineering budget for innovations that arent on any customers road mapand might even challenge Cloudflares existing business model. Prince credits the division with propelling the companys growth, saying: If Dane and the ETI team hadnt existed, Cloudflare would be yet another CDN [content delivery network]. Knecht, in turn, says Prince always nudges him to be more ambitious. You really dont ever bring Matthew an idea where he says, Thats a good idea, Knecht says. Hell say, Eh, think bigger. Its always, Think bigger. Two roles, one strategy Prince says he was somewhat reluctant to promote Knecht to CTO because Knecht was doing such a good job running the innovation skunkworks. However, Prince was impressed with how well he interacted with customers. Knecht has, for now, retained the ETI team as part of his responsibilities. Indeed, the ability to build relationships with customers is essential for CTOs intent on proving their strategic value to their CEOs. Tal Cohen, president of Nasdaq, says CTOs need to be able to understand how clients use the products their tech teams are building. He also encourages CTOs to become tech translators for their CEOs, helping their bosses understand major technology shifts, whether its the latest announcement from Nvidia or a breakthrough in their own industry. You need to demonstrate that youre three-dimensional, adds Cohen, who leads Nasdaqs Market Services and Financial Technology divisions. Working with your tech leads CEOs, how do you engage your CTO on strategy? And CTOs, how do you make sure that you are included in strategic conversations with your CEO? Send your examples and anecdotes to me at stephaniemehta@mansueto.com. Well share helpful examples in a future edition of the newsletter. Read more: the evolving C-suite Whats behind the surge in CFOs becoming CEOs Why so few human resources leaders become CEOs Im a CMO whos friends with my CFO
Category:
E-Commerce
People know when a brand genuinely cares about well-beingfor employees, customers, and humanity at large. In many cases, its an intangible truth they can simply feelin how theyre treated, how decisions get made, and whether a companys stated values actually show up in practice. Plenty of brands talk about purpose and people. Fewer live it. And the difference is increasingly obvious. That gap is why brand well-being is emerging as a meaningful framework for companies that want to build durable growthnot just short-term performance. At its core, brand well-being recognizes that a brand isnt a logo or a campaign. Its a living ecosystem made up of people, culture, purpose, and consumer relationships. When one part breaks down, the entire system weakens. When all three are healthy, the brand becomes more resilient, trusted, and relevant over time. Importantly, this isnt abstract. Its a leadership choiceand one companies can control. What Is Brand Well-Being? Brand well-being is a holistic concept that encourages companies to prioritize wellness across three critical dimensions. Employee well-being asks a basic question: is work designed in a way that supports peoples physical, mental, and emotional health, or does it quietly drain them? Culture well-being examines whether a company operates with meaning and humanityand whether employees feel genuinely connected to each other and the work itself. Consumer well-being focuses on how brands show up in peoples lives: are they improving them in tangible ways, or simply competing for attention? If well-being is the equivalent of organizational health, the logic is straightforward. Healthier employees perform better. Purpose-driven cultures retain talent. Trust-based consumer relationships last longer. No business would argue against those outcomes. What company wouldnt want its workforce to be healthier, its culture more purposeful, and its consumer relationships more authentic? Yet many still treat well-being as a side initiative rather than a core strategy. The Business Case: Wellness Drives Work For years, wellness initiatives were framed as perksa nice box to check and a headline to score PR points. Too often, a companys wellness strategy is a daily app reminder that feels more like an annoying interruption or chore. The data tells a different story when well-being is approached consistently and strategically. A Cigna-commissioned study found that employer well-being programs delivered an average ROI of 47%, returning $1.47 for every dollar invested. According to Wellhub, 99% of HR leaders say wellness programs improve employee productivity. Meta-analyses show reductions in absenteeism and healthcare costs with ROI approaching 148%, saving hundreds of dollars per employee annually. Companies investing in well-being also see meaningful drops in turnoversometimes by as much as 25%. Well-being is no longer a bonus. Its a business strategyone that drives loyalty, retention, and performance at scale. One of the strongest validations comes from Indeeds Work Wellbeing 100, a data-driven ranking developed with Oxford University that evaluates publicly traded companies based on extensive employee survey data. Many of the companies that score highest on employee well-being also outperform the market and regularly appear on the Fortune 500. The correlation is hard to ignore: organizations that invest in well-being tend to outperform those that dont. Well-being isnt a costits a competitive advantage. Bringing Brand Well-Being to Life The challenge, of course, is moving from intent to impact. Brand well-being doesnt come from a single program or campaign. It requires expertise, lived experiences, and real feedback loopsinside and outside the organization. Done correctly, it can play a transformative role not only in deepening consumer relationships, but also in boosting cultural energy within the company itselfand yes, ultimately, productivity. Forward-thinking companies are starting to treat well-being as an integrated ecosystem. They bring credible experts into leadership and employee learning, focusing on sustainable performance, stress management, communication, and burnout prevention. They engage consumers through real-world experiences that foster connection rather than spectacle. And they create safe, personal environmentsevents, retreats, and small-group forumswhere people not only learn about mental and physical health, stress management, personal sustainability and nutrition, they feel comfortable sharing honest insights about their lives, needs, and expectations. Those insights, when fed back into product design, workplace culture, and brand strategy, become far more valuable than traditional surveys or focus groups. They allow brands to understand not just what people say, but how they actually feel. Importantly, the most effective brands integrate well-being naturally. Products and services show up as part of the experience, not as forced marketing moments. The goal isnt to sell wellness. Its to support it authentically. Ive seen brands like LOréal, the NBA, BlackRock, Bayer, Morgan Stanley, Volvo, Hackensack Meridian Health, and Wells Fargo experiment with this model through internal offsites, community experiences, and retreats hosted in well-being-focused environments. The result isnt just better moraleits stronger relationships, higher trust, and clearer insight into both employees and consumers. Over time, the impact drives increased happiness long after the event ends. The Leadership Question Every company says it wants to evolve. But evolution requires trade-offs. It means leading with care, connection, and long-term thinking in a system still optimized for speed and short-term returns. Some leaders already understand that investing in well-being is inseparable from investing in brand performance. Others still treat it as an optional expensesomething to revisit when margins allow. The market is increasingly clear about which group is winning. Brand well-being isnt about being nice. Its about building organizations that people want to work for, buy from, and believe inagain and again. The question facing todays leaders isnt whether well-being matters. Its whether theyre willing to lead knowing it does.
Category:
E-Commerce
A century ago, work was unsafe and openly adversarial. Strikes were common. Turnover was extreme. Productivity suffered. HRthen called personnelwas created to manage this instability. Its job wasnt to make work fulfilling. It was to reduce friction between employees and the company, keep people on the job, and protect output. As companies matured, so did HR. The function expanded to include hiring, pay, benefits, training, grievance handling, and legal compliance. On paper, this evolution gave HR a broad view of how people experienced workand the potential authority to shape it. But that authority was never fully claimed. Instead, HR generally settled into administering systems and policies designed by othersespecially the C-Suite. In a recent Wall Street Journal interview, University of Virginia business school professor Allison Elias explains how this history is experienced today. Employees dont see HR as a driver of better leadership or a healthier workplace. They see a function that listens but rarely acts, collects feedback but seldom follows through, and lacks the authorityor the courageto intervene when leadership behavior is the root of the problem. Employees today doubt whether HR has the power and standing to influence how individual leaders actually leadespecially when leadership behavior openly undermines trust, clarity, dignity, or psychological/emotional safety. Over time, that gap between listening and acting has become the narrative. The good news: HR now has the opportunity to reinvent its role in organizationsbut it must step fully into it. Well-being drives performance Over the past year, remarkable research has shown that employee well-being has a direct and profoundly positive impact on organizational performance. The newest study comes from Irrational Capital: drawing on more than a decade of public and private data, they found companies ranking highest in employee well-being significantly outperform their peers in long-term stock appreciation. Over an 11-year period, firms in the top tier of employee well-being outperformed those in the bottom tier by nearly six percentage points. By contrast, companies that excelled primarily on pay and benefits outperformed by just over two points. Whats now empirically clear is that how people feel about their day-to-day work experienceand their direct managersmatters far more than what they are paid to tolerate it. And, if well-being drives performance, then feedback must be continuous, actionable, and tied directly to leadership accountability. A real voice What employees are craving is a real voice. They want to be routinely asked for honest feedbacknot once a year or even semi-annually via traditional engagement surveys proven to have little if any impactbut through focused pulse surveys that capture how they are experiencing work week-to-week. They want to know that their input is heard, considered, and has real influence. That feedback should flow not just to individual managers and senior leadership, but also to HR itselfso the function can monitor patterns, hold leaders accountable, and ensure employee well-being is protected at every level of the organization. When survey results show managers are consistently uncaring, unsupportive, or otherwise undermining employee well-being, HR must willingly intervenecoaching leaders to improve or, when necessary, removing them. This is where HR can finally claim the role it has long been empowered to play: shaping how leaders lead, embedding well-being into daily work, and ensuring organizations operate for people, not just for goal achievement. The ‘How’ The tools for this already exist. Pulse surveys can be deployed one day and summarized the next, delivering real-time insights to managers, senior leaders, and HR. This immediacy creates a rare opportunity: HR doesnt need to wait months for engagement reports to act. Every piece of feedback becomes a lever to correct course, reinforce positive leadership, and make tangible improvements in how people experience work. Whats critical is that HR canand mustbe the true guardian of this ecosystem. That means more than administering surveys or running reports. It means owning the operationowning well-being. It means creating a culture where employees know their voice carries weightand consequences. It means ensuring that workplace leaders understand the practices that contribute to well-being and that there are real teethaccountabilityin its oversight. It must celebrate managers who excel, coach managers who fall short, weed out those who dont improve, and embed well-being metrics into how leaders are evaluated and rewarded. It must be clearly understood that this is not merely a moral imperative; its a business imperative. When people have their needs consistently met for belonging, safety, growth, appreciation, and respect (the key drivers of well-being), organizations see measurable gains in retention, commitment, collaboration, creativity, and profitability. Claiming power The truth is workplace leadership practices are in dire need of transformation. Evidence abounds that traditional methods deplete people rather than energize themand HR has both the access and authority to lead the needed change throughout their organizations. For HR leaders, the question is simple: will you fully claim the power your role affords? Will you leverage real-time feedback, hold leaders accountable, and transform the employee experience? Doing so will not only improve performance and profitabilityit will permanently elevate HR from a back-office function to the strategic force every modern organization needs. The moment is now. Employees are speaking. The data is clear. The tools exist. HR, step into your power! Shape how leaders lead. Protect well-being. Drive performance. Make your mark: ensure work is safe, meaningful, humaneand create organizations that truly flourish.
Category:
E-Commerce
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