Amid the coronavirus pandemic, everyone is rightly focused on protecting lives and livelihoods. Can we simultaneously prevent the next crisis? The answer is yes—if we use this moment to reimagine business for a climate-neutral world. This webinar includes an overview of McKinsey & Company’s world-leading research on climate change and a panel of corporate leaders who have taken giant strides towards a sustainable future.
Presenter and Moderator:
Kimberly Henderson, Partner, McKinsey & Company
Panelists:
Chris Roe, Principal, Renewable Energy & Sustainable Operations, Amazon
Kimberly Henderson, Partner, McKinsey & Company, began the webinar with an overview of McKinsey & Company’s world-leading research on climate change. She noted that in 2020, we are standing at a fork in the road on climate, and the choices we make now determine where we go.
Continued growth of greenhouse gas emissions at today’s pace (“business as usual”) would cause about 5 degrees C of warming by 2050. This amount of warming would case more extreme weather events and have disastrous consequences. For example, heat waves that had a .2% chance of occurring between 1961-1980 now have a 15% chance of occurring. That trend will worsen and could lead to life-threatening temperatures in places like Pakistan.
If we assume that nations and companies around the world follow through on their climate change commitments, we will see some reduction in greenhouse gas emissions and estimated warming of 3.5 degrees C by 2050. This is still enough warming to cause tremendous damage. The global goal among nations and the scientific community is to limit warming to 1.5 degrees C—so much remains to be done.
Summary of the panel discussion
How are each of your companies approaching coming up with a climate plan and setting targets?
Chris Roe explained that Amazon’s climate pledge was an effort to galvanize the rest of the private sector. They have a series of commitments related to reducing their climate impact, including powering global operations with 100% renewable energy by 2025. To fulfill that commitment, they have placed an enormous order for electric vehicles—over 100,000, the biggest order in history. They are also investing in new technologies through the Climate Pledge Fund.
Cynthia Curtis noted that JLL has set a science-based emissions target. This requires deep cuts in emissions that come from their suppliers, their own operations, and their clients. Suppliers and clients are particularly important because their emissions are JLL’s biggest share, when you consider all emissions associated with JLL’s business. JLL is also investing in new technologies to help the sector improve.
Melissa Lavinson said that Pepco will deliver 100% renewable energy to the District by 2032. They are focused on not only reducing their company’s carbon footprint, but also working with their customers and communities. They have managed a few initiatives that have supported entrepreneurs in the climate mitigation space, encouraged customers to conserve electricity, and supported multiple nonprofits through sustainable community grants.
Myrrh Caplan said that Skanska has committed to being completely carbon neutral by 2045, which is above what was really required for their industry. They have already made a lot of progress through partnerships with their suppliers and project partners and by making big changes like electrifying mining equipment and reducing business travel.
How do you work with suppliers upstream, customers downstream, and others in the community?
Cynthia described working closely with suppliers and customers and said that it has been central to their climate work. She acknowledged that buildings are a big contributor of greenhouse gasses and the industry has a responsibility to attack the challenge head-on. JLL developed a sustainable procurement framework that has been adopted by procurement teams globally. Suppliers have been supportive and clients are glad to have a partner in addressing their own climate goals.
Myrrh called out the reality that concrete, obviously an important material in construction, is extremely carbon intensive. They can use different types of concrete that reduce the carbon footprint by half but that is not a big enough reduction. To drive down the carbon footprint of cement further, they partnered with other climate experts to develop a digital tool that calculates the carbon footprint of different concrete mixes and has used that to send the message to suppliers that carbon footprint is an important factor in Skanska’s procurement decisions.
Chris described using Amazon’s enormous purchasing power to increase renewable energy supply. They have funded the development of 12 renewable energy sites to date. In our region, they have forged an agreement with Arlington County and Dominion to develop enough renewable energy to not only power HQ2, but also all their Whole Foods stores and parts of Arlington County.
Melissa reiterated that Pepco is working with customers to improve energy efficiency. This also helps low-income customers save money. They are also making improvements to the grid to allow homeowners to use their own solar panels and they are working with the District to put in electric charging infrastructure, which requires working with WMATA. Pepco has a set clear goals and has a firm timeline, and the public sector has a very important role in supporting that.
Kimberly points out that around the world, government-set emissions reductions goals have been becoming more and more ambitious and are actually being met by communities and companies.
Other take-aways:
On renewable natural gas (RNG) and hydrogen: These are green alternatives to natural gas, but there are big technical and economic challenges to deploying these fuels at scale. Amazon is exploring using these fuels for long-range trucking, but only if the fuels can be produced by powerplants that are powered by renewable energy—otherwise, there is not a big enough carbon reduction benefit. Melissa also noted that in other applications, these fuels are a possible replacement for natural gas but they need to be cost-competitive with renewables. When assessing whether to electrify or invest in hydrogen or RNG, the decision comes down to the economics.
Quote of the day: If it’s not affordable, it’s not sustainable.
Cynthia shared a great example of partnerships. JLL worked with Metro to install solar panels on some of its infrastructure so that it can generate revenue, which makes great economic sense because it diversifies its revenue streams. This has been especially helpful in a situation like a pandemic when ridership is down.
The panelists agreed that public policy has a very important role. It helps to lay out a path that companies can follow. When companies make very long-term investments, clear public policy can give them confidence. Some challenges are just too big for companies to tackle.
If each panelist had a magic wand to fix one thing that would help decarbonize their sector:
From Myrrh: We need to increase the circularity of the material supply chain. We have ignored that for so long that it is now working against us.
From Chris: Electrification. It’s so fundamental to the climate challenge.
Cynthia: Improving building standards and codes. Class A buildings get investment and you can get to better decisions around sustainability, but Class B and C buildings will need standards and regulation to force green designs.
Melissa: Increase capacity but reduce size of battery storage.
Ashish Khosla is Senior Vice President and Greater Washington Market Executive of Commercial Banking for Bank of America
Even if all you had to worry about were the quality of your company’s products or services and continued growth of its customer base, running a business would be challenging enough. However, companies are also subject to economic and environmental forces beyond their control. A change in the economic cycle could disrupt your cash flow, tighten your access to credit, rattle your customers and suppliers and even threaten the survival of your organization.
No one can precisely predict changes in the economy. Sometimes, they seem to come out of nowhere, as with the coronavirus outbreak, which, in addition to its personal toll, has made companies of all sizes rethink their short- and long-term plans.
A recent report from the Downtown Business Improvement District revealed downtown D.C.’s economic activity at the end of July 2020 was an estimated 12 percent of activity in July 2019. In addition, the city’s daytime population decreased by 90 percent between February and July, while the retail vacancy rate reached a record high of 17.1 percent in July. Although the Washington region has fared relatively well in comparison to many other metropolitan areas, the coronavirus continues to present substantial challenges for our local economy and businesses.
Weathering ever-evolving conditions involves keeping up with trends and forecasts for your specific industry, following broader assessments of the economic outlook, ensuring the safety of your employees and, most important, taking a close look at your own operations. A careful review of your internal processes and your key relationships may prompt you to make changes that could make your business more efficient, flexible and resilient under any circumstance. As you respond to current conditions, here are some challenges and key steps to keep in mind:
Take a look at your cash flow
During both good and bad times, cash flow can be a central challenge for businesses and is often cited as a top reason small business fail. Companies with great products and loyal customers can still falter without sufficient liquidity to meet payroll, pay suppliers and keep the lights on.
To safeguard against temporary shortfalls:
Ask your banker about overdraft protection
Speak frequently with customers and suppliers to stay aware of any potential changes in their businesses that could ultimately affect yours
Review how reliably your customers pay what they owe and create a watch list of those who consistently fall behind. A little probing may help you address issues proactively.
Assess your credit situation
Credit can be a lifesaver during challenging financial times. During the recessions of 1990-91 and 2001, the growth rate for commercial banking loans to businesses dropped to zero, according to the Federal Reserve Bank of St. Louis.
In a difficult economy, lenders may be especially cautious about companies they don’t know well. In fact, most lenders like to understand how a business performs over an entire business cycle. During good times, have you made capital expenditures to grow the business? During bad times, have you responded well to downturns? Knowing that your business has weathered challenges and responded effectively may give a lender the confidence to extend credit.
Give your company “survival training”
When a cyberattack takes down your website, a key employee leaves your firm or a natural disaster strikes, your company’s everyday operations can be threatened. The risk of adverse events may be greater than you think, and they can be particularly devastating during times of economic stress.
By 2018, business cybersecurity breaches had increased by 67 percent in five years, and during the first seven months of 2019, the U.S. experienced six climate and weather catastrophes with losses of more than $1 billion each. One in four small businesses fail to reopen after a natural disaster. Preparing your company to withstand challenging circumstances can make the difference between re-building and going out of business.
Keep tabs on expenses
During the Great Recession of 2008-2009, nearly 75 percent of company leaders identified cost cutting as a top priority. However, trimming expenses across the board during an economic crisis can backfire. Instead, take stock now of all your processes, from front-line to back-office functions, to determine what kind of savings might be possible when needed.
Make a plan for what to cut. Work through “what if” scenarios ahead of a downturn to determine the least painful and most effective reductions. Consider renegotiating agreements with suppliers or adjusting payment terms to align with revenue cycles.
In addition, automate where possible. An estimated 45 percent of jobs now performed by people in the U.S., at an annual cost of $2 trillion, could be automated with existing technologies. Administrative tasks like payroll, and other record-keeping, can often be digitized at minimal cost. However, be careful when it comes to reducing headcount. Automation can be an opportunity to re-train or re-focus employees on more value-added areas of your business.
Competing in business today requires endless resilience amid disruptions that can reinvent entire industries without warning. The steps outlined above are best practices that can help make your company stronger in the face of challenging, and often uncontrollable, external forces. The more you do to plan essential aspects of your company’s financial future, the more control you’ll have over your and your business’ future success.
Climate change represents enormous risks and opportunities for business. Risks lie in the physical consequences of droughts, floods, fires, storms, and heat waves, and in intangible factors like uncertain regulation and changing public opinion. Opportunities lie in the soaring demand for innovative solutions to decarbonize our economy.
Navigating these risks and opportunities is a complex challenge. To help, we pulled together some of the country’s leading minds on corporate sustainability for a live, virtual discussion on October 6 at 10:30 AM. McKinsey & Company will present their recent research on climate risks and what it means for business, and sustainability leaders at Amazon, Skanska, JLL, and Pepco will share how their companies are making plans and investments for a low-carbon future. Find more information on that event and register here for free.
In advance of that conversation, here are seven big climate headlines from 2020. Taken together, they paint a picture of where we are in responding to this enormous challenge.
In this Washington Business Journal feature, senior staff writer Daniel J. Sernovitz provides a sweeping look at how flooding is projected to worsen in our region and how city governments and developers are adapting. He catches several key angles, from the Alexandria City Council attempting fiscal gymnastics to upgrade sewer infrastructure to D.C. waterfront developers using cutting-edge architecture and engineering to prepare their buildings for the next 100-year storm.
Unfortunately we have again experienced another incredibly intense rain event in the City which far exceeds the design capacity of our stormwater sewer system.
The Commodity Futures Trading Commission issued a report which represented “the starkest warning to date by a U.S. financial regulator over the stresses that markets will face from climate change,” according to Politico. The cross-sector task force behind the report included experts from financial institutions, fund managers, commodities and energy companies, and environmental organizations.
.@CFTC subcommittee issues its first-ever climate risk report, as calls to regulate climate change as a systemic financial risk grow louder: https://t.co/IcQrOQEYQz
The wildfires in the west captured the nation’s attention this year because they were truly unprecedented in their destruction—burning over 3 million acres of land (and counting) in California, about double the record set in 2018. The smoke created dangerously bad air quality for millions of west coast residents and after drifting east could be seen high in the skies over our own region, thousands of miles away. Fire seasons in the West are trending more destructive, and experts say poor forest management and the hotter, drier weather created by climate change are both to blame.
The Business Roundtable, a trade association representing companies with $7 trillion in combined annual revenues, announced its position in support of U.S. public policy that aligns with the international effort to limit global warming to 2 degrees C. This includes support for market-based mechanisms such as pricing carbon emissions through a tax or cap-and-trade system. You can read the full position here.
BRT today released new principles & policies to address #climatechange, including the use of a market-based strategy to incentivize the development & deployment of breakthrough technologies needed to reduce greenhouse gas emissions. https://t.co/jdbykyiVm9 (1/2) pic.twitter.com/T8FdZ8KqHT
China’s leader, Xi Jingping, recently surprised climate experts around the world when he announced to the United Nations that China commits to reaching climate neutrality by 2060. China produces about 28 percent of the world’s greenhouse gas emissions—more than any other country—and is notoriously dependent on coal, but it is also the world’s largest manufacturer of electric vehicles and produces 30 percent of the world’s renewable energy. Whether China keeps its promise depends on economic and political factors that are hard to predict, but if it does, it will be a big step toward meeting international climate goals.
California Governor Gavin Newsom signed an executive order banning the sale of new gasoline-powered cars beginning in 2035, giving the auto industry 15 years to make this transition. Transportation is California’s largest source of greenhouse gas emissions, and though electric car purchases have increased, they represent only 8 percent of all auto sales.
Our cars shouldn't give kids asthma. Our cars shouldn't make wildfires worse. Our cars shouldn't melt glaciers or raise sea levels.
This year, Texas is planning on gaining a huge amount of wind and solar power. The vast majority of energy projects in the pipeline to connect to Texas’s electricity grid are wind, solar, or energy storage, dwarfing the number of gas, coal, and nuclear projects. On the local level, analysts found that many landowners and municipalities now favor solar and wind because the revenues they generate are more stable than oil, which is prone to boom and bust cycles.
Bonus: build your foundation of climate knowledge with McKinsey & Company research
We are glad to have McKinsey & Company as our knowledge partner on the October 6 webinar and other climate-related activities. Browse their robust and consolidated library of climate change analysis to deepen your understanding of climate science, market trends, and business strategies.
A good place to start: The 1.5-degree challenge, an interactive and dynamic explainer on what it means to avoid the worst impacts of climate change.
This TD Bank Morning Star Speaker Series event was held on September 29, 2020 and featured Dr. Laura Morgan Roberts, author of Race, Work, and Leadership: New Perspectives on the Black Experience. Watch the webinar recording or read the summary to learn how you can support a genuinely inclusive, diverse environment in your organization.
Watch the Recording
Read the Summary
Experiences with race exist on a spectrum from actively racist to actively anti-racist, with several stages in between.
In addition to a moral case, there is a strong business case for diverse organizations and leveraging differences. It is important for us to think about all forms of diversity and the value that they bring. The benefits of diversity include:
Expanding market awareness
Anticipating alternate solutions to problems
Attracting the best talent
Unlocking innovation
Research on the black experience shows that there are many barriers to success, such as less access to education, healthcare, housing, financial capital, and professional networks, and this results in black Americans making up a very small percentage of managers (8%) and CEOs (<2%).
Black professionals may also feel that they can not bring their authentic selves to work.
What feels visible: racial stereotypes and flaws.
What fees invisible: strengths, talents, accomplishments.
The consequences are that black professionals may feel less satisfied, less loyal to the organization, and make fewer quality connections.
There is a barrier to advancement for many black professionals. They are often overrepresented at the lower levels of the organization and underrepresented at the higher levels.
They may see fewer opportunities to learn and grow, feel their role is not highly appreciated, and have less access to sponsors and mentors.
When black professionals do reach leadership positions, they are more likely to face legitimacy challenges (e.g. mistaken for lower-status workers), and may be more harshly judged for failures, rewarded less generously for success, or more likely to take on high-stakes “glass cliff” roles to lead organizations through sustained crises.
The wrong way to respond to racial injustice is to deny it is happening, get defensive, and disengage from the problem.
The right way to respond to racial injustice is to:
Acknowledge the relevance of race and bias in careers, organizations, society, and in your life while accepting that this does not at all diminish your own worth – “Acknowledging the presence of bias and affirming the value of difference will not diminish the worth of my contributions or the validity of my hardships.”;
Affirm the value of diversity and Black workers’ potential for growth and advancement; and
Act to support Black workers in ways that will directly and indirectly benefit them, creating the climate for diversity, inclusion, equity, and justice that allows everyone to thrive. Don’t just check a box—keep asking, what more can I do?
When choosing diversity and inclusion programming, ask:
How do these action items align with your leadership framework?
How do these action items strengthen your strategic capabilities?
How do these action items strengthen your moral integrity?
What are the costs of inattention and inaction? How do they undermine your strategic and values alignment?
What can champions do?
Move from mentor to sponsor.
Advocate for employees of color in matters of racial justice.
What can leaders do?
Create a culture of inquiry around race.
Pursue strategic and values alignment with stakeholders.
Lead and sustain organizational change
Being a good ally means getting in the fight and not just cheering others on—and being willing to face some resistance.
The biggest thing leaders get wrong in diversity and inclusion: not trying hard enough to hire diverse talent and then saying, “we just can’t find a good candidate who isn’t white.” This should challenge leadership to expand their talent pipelines and question their hiring processes. Leadership should embrace the idea that there is plenty of talent and that your organization should represent the community you work in.
The 2020 Capital Region Business Forum was held on September 18 and is the only event of the year featuring Muriel Bowser, Mayor of the District of Columbia; Larry Hogan, Governor of Maryland; and Ralph Northam, Governor of Virginia. This year, the event was held virtually and covered four important topics: COVID-19, racial justice and economic opportunity, education and workforce, and transportation. The conversation was moderated by Tony Pierce, Partner at Akin Gump.
Opening Remarks
Summary
Mayor Bowser: The Mayor’s administration is focused on how the District will come back from the pandemic, and she is optimistic that because they were in a strong financial position going into the pandemic, they “have the building blocks to come back swift and strong.” She looks forward to working with the Board of Trade and the business community in that effort.
Governor Hogan: The Governor reported encouraging COVID-19 health metrics and credited early and appropriate action for the state’s success, but cautioned that vigilance is needed to keep the virus at bay. Earlier this month, Maryland entered Stage 3 of its reopening plan and its unemployment rate is now at 6.9%, much better than the national average. All county schools are now authorized to begin the process of bringing some children back into schools, particularly children with special needs.
Governor Northam: The Governor praised Governors and Mayors around the country for working together through the pandemic to secure personal protective equipment (PPE) and testing supplies. Like the Mayor, Governor Northam cited Virginia’s strong financial position and business-friendly environment going into the pandemic and said he expects a strong recovery. However, he also called out persistent racial inequity, which the pandemic has exacerbated, and called for greater action to make Virginia’s economy more inclusive. He cited expanded access to broadband internet as one initiative his administration is undertaking which can help level the playing field.
Pandemic Response & Recovery
Summary
Governor Northam: The Governor noted that Virginia and most other jurisdictions entered the pandemic with a shortage of critical supplies such as personal protective equipment (PPE) and testing kits. He says that this situation has improved thanks to collaboration across jurisdictions, but there’s still work to do. He also called on all of us to continue wearing masks, keeping our distance, and taking other actions to slow the spread. Regarding the economy, Governor Northam said that our highly trained workforce has been a tremendous asset and stressed that being nimble and investing in training and retraining our workers, especially the unemployed, as the job market evolves will be critical for recovery.
Governor Hogan: The Governor said that testing is critical to getting the virus under control. He explained that in the beginning, each state was competing for very limited supplies of testing materials. This situation has improved and new antigen testing, which can provide a result in as little as 15 minutes without outsourcing to a lab, is on the horizon. The Federal government was not moving forward with antigen tests so Maryland, Virginia, and other states created a compact to acquire 5 million antigen tests. Additionally, the business community can help Maryland and the region in the months ahead by following guidelines for safe operations and reopening. It is going to take everyone working together at the state, local, and federal government levels and with the private sector to innovate new ways to bring people back to work safely.
Mayor Bowser: The Mayor pointed out that D.C. still needs funding from the federal government. The CARES Act was a good start, but “The hole created in our economy by COVID is larger than any state or local government can fill.” She called for the business community’s support to advocate for further federal funding and ensure that first responders, teachers, and municipal workers are not disrupted. Mayor Bowser also said the business community can help build consumer and worker confidence, which is important because the economy will not recover if consumers and workers do not feel comfortable participating. Lastly, the Mayor said the one thing that has made a big difference in fighting the virus is communicating frequently and candidly with residents because they are smart and tough and will respond appropriately.
Racial Justice & Economic Opportunity
Summary
Governor Hogan: His administration has been working hard to provide grants and information to small and minority-owned businesses. Maryland paid out $2.3 billion in CARES Act funding for things like PPE production and to help small businesses with payroll. They are advocating for more federal stimulus funding to continue this assistance. He said that it is frustrating that the House and Senate and Democrats and Republicans have struggled to reach a deal. He cited a bipartisan effort he is a part of and said he would continue pushing.
Governor Northam: Governor Northam explained that minority communities have been hardest hit by the pandemic. His administration has a Diversity and Inclusion Officer who has helped make sure their interventions reach all communities. Citing that over 90% of our economy is made up of small businesses, Governor Northam touted the Rebuild Virginia program, which has offered $50 million in grants and assistance to small businesses. He wants small business to know that the Commonwealth has resources to use and “we are here to help.”
Mayor Bowser: The Mayor said, “Business communities are recognizing that their customers demand their participation in this national conversation on racial justice.” She applauded companies that are reaching out to local governments on training, internship, and apprenticeship programs to drive up minority participation in the workforce. She said many are also focused on improving minority participation in company leadership. However, she also said that we have persistent problems to deal with, such as the racial wealth gap and access to affordable housing. The federal programs have been helpful but she noted that PPP loans went out to minority-owned businesses more slowly than to others and she speculates that’s because majority-owned businesses have more longstanding relationships with financial institutions disbursing the loans. She pointed out opportunities for local governments and businesses to work together to make a long-lasting impact on racial equity, arguing that local governments can provide data and incentives and businesses can drive innovative ideas.
Education & Workforce
Governor Northam: The Governor again highlighted the region’s top-notch workforce as its major strength. He said that Virginia has a commission for STEM-field training and education and is also invested in improving early childhood education. He explained that there is a tremendous learning potential in children before they even reach kindergarten. He described looking across the whole education spectrum, from early childhood education through K-12 and including colleges and universities, to build the talent pipeline needed for all the jobs being developed in Virginia.
Governor Hogan: Governor Hogan agreed with Governor Northam that our highly educated workforce is our greatest asset. He pointed out that the pandemic has been especially difficult on kids who can no longer go to school. Closing schools was a very tough decision but was necessary for safety, but now they are balancing those concerns with the need to prevent kids from falling behind. Now, school systems in Maryland are authorized to explore a hybrid model that brings some children back to school grounds, prioritizing special-needs kids who need face-to-face instruction the most. Seventeen of 24 jurisdictions have such plans. To reach other kids who will stay home, Maryland has used much of the CARES Act funding to provide Chromebooks and broadband internet to children who needed them.
Mayor Bowser: The Mayor said that children in the District are learning remotely with hopes to bring some back in a hybrid model by November 9. She said that bringing kids back to school has been a priority for her administration. Related to company talent, she first shared her belief that there is no replacement for on-site work, so she expects that offices will eventually reopen. People come to this region because of the jobs on offer, but also because they want to live in a world-class city and take part in its culture. She encourages the business community to leverage that when recruiting and attracting talent.
Transportation
Governor Hogan: The Governor reminded the audience that in 2018 DC, MD, and VA reached an agreement to provide dedicated funding for Metro, but the federal government refused to participate, despite relying heavily on Metro to move its workforce. The agreement was a milestone but now each of their jurisdictions are threatened by a budget shortfall due to the pandemic. He is going to continue pressing the federal government for assistance. He also pointed out that the Capital Beltway Accord, a project with VA, will move forward because it is privately funded.
Governor Northam: The Governor said that Virginia has about $6 billion set aside for transportation infrastructure, which has been able to move forward and has benefited from having fewer drivers on the road during the pandemic. He explained that VA raised the gas tax to help pay for transportation projects but he warned that a gas tax will not be enough and called on the private sector to help come up with new ideas.
Mayor Bowser: Mayor Bowser agreed with Governor Hogan’s call for more federal support for transit and noted that this is a national, not just a regional, problem. She said that the Long Bridge agreement with VA was a milestone and also said that improvements to Union Station are also important. She said that the 11th street bridge is another important project to residents of DC and Maryland. But beyond big infrastructure projects, her administration is looking at how to keep traffic low in the District even after offices start reopening. They are exploring more bus-only and bike lanes.
Irma Becerra, Ph.D., President of Marymount University
Like many industries, higher education was forced into virtual spaces at the onset of the COVID-19 pandemic. But while other industries may see a permanent increase in remote work, this pandemic has only made me more confident in the strengths of traditional, in-person instruction. Our real opportunity for evolution lies in providing a more personalized approach to learning, which students need now more than ever.
In March, as COVID-19 cases exponentially increased, we decided to transition our nearly 700 academic courses to a remote delivery format. Thanks to the flexibility and agility of our faculty and staff, students were provided a high-quality academic experience online, and they were very understanding.
A physical academic environment provides benefits that cannot be easily replicated online.
But while this worked on a temporary basis, our students have been clear that they miss in-person, face-to-face instruction. A physical academic environment provides benefits that cannot be easily replicated online. Students are more likely to absorb what the professor is saying, they can more easily participate in collaborative exercises, they benefit from on-campus activities, and they gain meaningful exposure to other students with different backgrounds and cultures from all over the world. We know that these experiences help students develop and discover what their passion in life is, and that is what higher education is all about.
That is why we have worked so diligently to ensure we can return to on-campus learning and living for the fall semester in a safe and secure manner. Marymount University’s Return to Campus Plan focuses on five key areas – reopening safely and sustainably, repopulating campus, monitoring health conditions, containing the possible spread of COVID-19, and following contingency plans in the event of a potential shutdown order. Measures to accomplish those goals include a face covering requirement, consistent sanitizing of all facilities, reconfiguring physical spaces to maintain social distancing, utilizing contact tracing apps, and increasing access to critical health services, testing, and personal protective equipment such as face masks.
Are there aspects of the current higher education model that should be changed? Absolutely – and as leaders in higher education, we must avoid the one-size-fits-all approach in favor of one that is more personalized. For example, at Marymount, we are seeking to build easier on- and off-ramps for students of all ages. Our recently-launched program, “Upskilling for the What’s Next Economy,” encompasses a unique and comprehensive range of modular graduate certificates and degree qualifications that provide students with the technical, management, entrepreneurial, and leadership skills to get them back to work. We also recently launched stackable graduate certificates in areas that include Cybersecurity, Data Science, Digital Health, Digital Transformation, Leadership, Project Management, and Intrapreneurship. These certificates can combine into a master’s degree in Emerging Technology, which gives students the tools they need to seize the opportunities that the market currently provides.
Expanding opportunities available to [students] is a significant way to make higher education more inclusive.
The nature of these offerings is that students can earn certificates slowly, one at a time, or earn multiple certificates all at once – it is up to them and their schedule. This flexibility is especially important for current students who are navigating a tremendous amount of uncertainty due to the COVID-19 pandemic. It also opens doors for nontraditional students who want to start working towards a graduate degree but are unable to commit to a full-time course schedule. Expanding opportunities available to them is a significant way to make higher education more inclusive.
This is just the beginning, because we need to always be finding new ways to increase access and personalization in higher education. It is the future, and I believe we will all see that even more clearly in the aftermath of the COVID-19 pandemic.
Irma Becerra, Ph.D., is the seventh President of Marymount University. She is an internationally recognized expert, speaker, and author in the fields of knowledge management, business intelligence, and entrepreneurship. She is a thought leader, innovative educator, tenured full professor, and community leader. Dr. Becerra’s broad educational background spans the fields of engineering, IT, and business. She may be contacted via email at ibecerra@marymount.edu.
Board of Trade members are invited to share their views on this blog with editorial support from the Board of Trade staff. Views may or may not represent the official position of the Board of Trade. To contribute to the Board of Trade blog, contact Lindsey Longendyke, Communications Director, at lindseylongendyke@bot.org.
Today’s TD Bank Morning Star Speaker Series event featured a practical and thought-provoking presentation on disruptive growth from business expert Charlene Li. This presentation and her book, The Disruptive Mindset, will be exceptionally value for all business leaders who wish to chart a winning course forward in the months and years ahead.
Watch the Presentation
Download the Slides and eBook
Visit Charlene Li’s website to download the slides from this presentation, access a free copy of her eBook, and more.
About Charlene Li
For the past two decades, Charlene Li has been helping people see the future. She’s an expert on digital transformation, leadership, customer experience, and the future of work, and the author of six books, including the New York Times bestseller Open Leadership and the coauthor of the critically acclaimed book Groundswell. Her latest book is the bestseller The Disruption Mindset. She’s also an entrepreneur, the Founder and Senior Fellow at Altimeter, a disruptive analyst firm that was acquired in 2015 by Prophet. Charlene was named one of the Top 50 Leadership Innovators by Inc, and one of the most creative people in business by Fast Company. She serves on the regional board of YPO, a global network of 28,000 CEOs. Charlene graduated magna cum laude from Harvard College and received her MBA from Harvard Business School. She lives in San Francisco.
I’ve been in the crisis business for more than 20 years. I thought I had seen it all. I was wrong. Literally every single one of us right now is in a constant state of trying to figure out our new reality, which seems to change by the minute.
Beyond trying to manage all the changes in our personal lives, we are also trying to address the shifts in our businesses. Right now, most organizations we are working with are looking for guidance on how to put out the daily fires. And, we’re helping with this. We’re also talking a lot about recovery.
Yes, recovery. It seems impossible to even think about right now. But we must. For organizations, the economy and our communities to thrive when we come out of this global crisis, we must plan now. While there are still so many unknowns and we don’t know what our new normal will look like, there are steps that organizations can take now to help establish a stronger foothold, so we all come out of this stronger.
Assign someone to think about the future. It can be someone in-house. It can be one of your external partners. But someone needs to do it.
Condition the environment. You need to plan for, and take, immediate steps that will help in the long run. Almost all industries will face a long road back to financial health and it will be important to have a seat at the table when decisions are made about the future of business. Think beyond the box. What you do now will pave the way for how quickly and easily organizations, the economy and communities can recover.
Plan to come back stronger. I recognize this may not be an option for all organizations. However, where possible, it is important to strategize for the future. Think differently. What do you need to plan for to embrace the new reality? How will your business change? What can you do now to pave the way to be able to pivot? How will you put that into practice? How will what you do impact your employees, the economy, and your community?
I recognize that it’s hard to think past today, let alone think about any time in the future. But we need to prepare for what’s to come, as uncomfortable and as unrealistic that may feel right now.
Guylaine Saint Juste is the executive director of the National Capital Region chapter of Year Up, a national nonprofit working to close the “opportunity divide.” Below, she shares her thoughts on why companies should think differently about where good talent can come from.
Guylaine Saint Juste, executive director of Year Up, National Capital Region
What is the “opportunity divide” that Year Up seeks to address? What does that divide look like in the DMV?
Guylaine Saint Juste: In the United States, over five million young people are disconnected from stable career pathways. Meanwhile, over the next decade over 12 million jobs are expected to go unfilled due to a shortage of available talent. At Year Up, we call that the Opportunity Divide. These young people have critical skills—resilience, grit, and motivation—however they are disconnected from the economic mainstream.
In the Greater Washington region, over 87,000 young people continue to be disconnected from meaningful careers that pay livable wages. By connecting young adults who need opportunity with companies that need talent, Year Up is committed to closing the Opportunity Divide and to tackling the systems that perpetuate inequities in our Nation’s Capital and all around the country.
How is Year Up working to close that divide? Tell us about your programs.
We serve young adults ages 18-24 with a high school diploma or GED. Our direct service model lasts 12 months. The first six months include intense training of both professional and technical skills in a field such as IT, Software Development, Cyber Security, Project Management, and Sales Support, among others. The remaining six months are spent on an internship with a corporate partner, for instance The Carlyle Group, Capital One, Bank of America, JPMorgan Chase & Co., Fannie Mae, Splunk, Accenture, Maximus, Deltek, Exelon, and Buchanan & Edwards, where students can practice the skills learned. Through this partnership, our students get on-the-job training and experience, while our partners are able to tap into a diverse pipeline of skilled entry-level talent. Within four months of completing the program, over 90% of graduates are employed and/or enrolled in postsecondary education. Employed graduates earn an average starting salary of $40,000 per year.
How does Year Up partner with other organizations and entities in the region? Do you have hopes to expand your partner network, and if so, how?
Nationally, more than 250 forward-thinking companies and 41 of the Fortune 100 partner with Year Up. Year Up’s corporate partners gain access to a diverse pipeline of bright, motivated, and skilled talent to address their evolving talent needs, and our graduates gain the opportunity to launch professional careers in highly sought-after roles at top companies.
In the National Capital Region, we partner with over 60 organizations, and we look forward to expanding our partnership base. Our goal is to enable our ability to serve more talented and motivated young adults across the region and provide more companies with the opportunity to tap into talent that fuels innovation, strengthens teams, and drives businesses forward. Ninety percent of corporate partners would recommend Year Up to a friend or colleague.
Is there anything that you think is widely misunderstood about the region’s workforce pipeline?
Yes. The region is hyper-focused on sourcing top talent to prepare for the future of work, but many companies’ talent acquisition practices are still primarily focused on traditional recruitment sources like colleges and universities, overlooking alternative sources of talent ready and equipped to meet their needs. We know that to build a stronger future workforce and truly address the talent gap in this country, companies need to implement more inclusive and equitable talent strategies and open their doors to a new pipeline of talent from non-traditional backgrounds.
One opportunity to build a stronger talent pipeline is by removing the requirement for a four-year degree. This requirement holds back the growth of the economy by excluding a large portion of the population. Census data reveals that only 60 percent of adults in Washington, D.C. have a Bachelor’s degree. In Maryland and Virginia, it’s even lower—41 percent and 39 percent, respectively. According to recent research, over 76 percent of jobs posted require a four-year degree. However, innovative companies recognize the benefits of opening up the candidate pool by removing this requirement. In addition to allowing for a more diverse pool of talent, data indicates that companies save 31% in cost of labor without any recorded difference in performance. The research is clear: businesses can do good and do well.
What has been Year Up’s biggest milestone in the last 5 years? What about its biggest challenge?
In 2015, we had one location in the National Capital Region and served 240 young adults per year. Five years later, we expect to serve over 500 young adults from our locations. We also launched a Mechatronics training pilot with Micron Technologies and are poised to train in Cloud and other in-demand technologies. We look forward to continuing to grow our corporate partnerships so that we can develop a sustainable and equitable workforce.
What skill – either professional, interpersonal, or other – do you rely on the most as a leader in this context?
For me, it’s about values and principles first: humility, authenticity, awareness, kindness, fairness, faith, courage, boldness. This job offers me the opportunity to couple those values with business acumen; through Year Up I have the capacity to cast a broad and deep vision, that rallies, mobilizes, and inspires 62 tremendous professionals and over 300 volunteers and mentors to take action for justice every day.
What keeps you motivated to do this work each day?
For over ten years, I was identified as a “resident alien with a green card.” I’ve been an American for over 20 years and believe strongly in the ideals of our democracy: “opportunity for all.” And, knowing that around the world over 3.5 billion young people aged 18-24 are left idle without a pathway to a productive and fulfilling life instills a momentum to take action.
How can Year Up add value to your company? If you or someone you know is interested in learning more about hosting interns, hiring graduates, or partnering with Year Up, please reach out to Guylaine Saint Juste at gsaintjuste@yearup.org to get the conversation started.
The Board of Trade approached economic development with renewed energy in the 90s, targeting international firms based in Europe, Asia, and elsewhere. It remained committed to serving the Greater Washington community, particularly in the areas of education and workforce development, and finding new ways to drive regional collaboration. It also began expanding its calendar of networking events to give members more opportunities to connect and socialize. In recent years, the Board of Trade has focused its strategy on ensuring that Greater Washington is leading in the digital age.
130 Historical Facts on the Board of Trade (Part Four)
(79) The Board of Trade encouraged its corporate members in the early 90’s to participate in The Economics of Staying in School, a program designed by Junior Achievement that brought business professionals to public schools to encourage youth to stay in school. (Source: Board of Trade News, January 1990)
(80) The Board of Trade ran an anti-shoplifting campaign under the slogan “Shoplifting will tie your hands forever!” targeting school-aged children. The slogan was developed by a local 5th grader through a poster contest organized by the Board of Trade. (Source: Board of Trade News, September 1990)
Board of Trade News, 1990
(81) In 1990, the Board of Trade’s Business Development Bureau produced Greater Washington Connections, a publication featuring colorful charts and photographs that illustrated the region’s strong business climate. (Source: Board of Trade News, February 1990)
(82) In the early 1990s, the Board of Trade’s Employment/Education Bureau sponsored the Alliance of Businesses Linked with Education (ABLE) Task Force to respond to a nation-wide spike in student dropouts. The task force identified new ways for business leaders and school administrators to prepare youth for the workforce and encourage them to stay in school. (Source: Board of Trade News, February 1990)
Board of Trade News, 1990
(83) The Board of Trade and the Area Business Development Officials Committee (ABDOC) created the first-ever regional map of Greater Washington with information on businesses and regional characteristics as an economic development marketing tool in 1990. (Source: Board of Trade News, May 1990)
(84) The Board of Trade established the Federal Affairs Committee and the Federal Presence Task Force in 1992 to prevent further relocation of federal government agencies and programs to other areas of the country. The relocation of several federal government offices in late 1991 made this a Board of Trade priority for 1992. (Source: Board of Trade News, Summer 1992)
(85) The Board of Trade hosted its first Fall Business Classic in 1993, which has become an annual tradition designed for networking and socializing.
Board of Trade News, 1993
(86) In response to heated competition with other metro areas for business growth, the Board of Trade decided in 1992 to establish a $10 million business marketing venture called the Greater Washington Marketing Partnership. It was the largest economic development effort known to the region at that time, with funding pledged by area businesses and local governments. (Source: Board of Trade News, Summer 1993.)
(87) The Board of Trade hosts the first Potomac Conference to convene high-level leaders from across the region to address long-term aspects of the region’s development. The Potomac Conference series continued until 2012 and shaped many aspects of the Board of Trade’s work. (Source: Board of Trade News, Fall 1993)
(88) In 1994, the Board of Trade formed a special task force to raise business and community support for Disney’s America, an American history-themed Disney resort planned for northern Virginia. The proposal was ultimately blocked by local residents and community groups who feared that the park would negatively impact the area’s character. (Source: Board of Trade News, 1994)
(89) The Greater Washington Marketing Partnership was renamed the Greater Washington Initiative in 1995 and given a strategic focus to target technology firms for expansion in the region. (Source: Board of Trade News, 1995)
Greater Washington Initiative Annual Meeting, 2010
(90) In 1995, the Board of Trade facilitates a professional development seminar with AT&T called “Telecommuting: Benefits and Advantages for Your Business” to share the advantages of employees working from home (Board of Trade News, Vol. 50, No. 4).
(91) In 1996, the Board of Trade began hosting the Morning Star speaker series events to give members a chance to hear from notable authors and businesspeople. These events continue to be held several times per year and have featured speakers such as Arianna Huffington, president and editor in chief of the Huffington Post; Biz Stone, co-founder of Twitter; and Howard Shultz, CEO of Starbucks.
Morning Star Speaker Series event with Arianna Huffington, 2014
(92) The Board of Trade published a five-part study on the region’s transportation shortcomings in 1997, calling for more highways and transit options to connect the region’s growing suburbs. The research was conducted with George Mason University and the University of Maryland at College Park. (Source: Board of Trade News, April 1997.)
(93) In the 1990s, the Board of Trade made replacing the bridge between Alexandria, Virginia and Oxon Hill, Maryland a top policy issue. After over a decade of engagement with federal and local government officials on this issue, the new Woodrow Wilson Bridge officially opened to traffic in 2006.
Woodrow Wilson Memorial Bridge, Alexandria, VA. Photo: Alan Karchmer
(94) In response to federal government downsizing, the Board of Trade and the Office of Personnel Management formed a partnership in 1997 to assist former federal government workers in finding employment in the private sector. (Source: Board of Trade News, February 1997)
(95) The Board of Trade launched its first website in 1996.
The Board of Trade’s website in 1996 (source: Wayback Machine)
(96) The Board of Trade held its first golf tournament in 1999 to give members an opportunity to network and enjoy each other. The tournament was held annually until 2008.
(97) In 1999, the Board of Trade opened the International Gateway at the Ronald Reagan Building and International Trade Center. The 4000 square foot space was shared with the International Business Council and the Greater Washington Initiative. In its first two months, the Gateway hosted over 800 visits from regional and international firms and connected more than 150 Board of Trade companies to international opportunities. (Source: Board of Trade News, December 1999)
(98) President Bill Clinton announced in 1999 that the White House had selected the Board of Trade’s Community Business Partnership to lead one of six new chapters of a national program to boost business in America’s cities and economically distressed areas. The role of the Community Business Partnership was to make connections between large Board of Trade member companies and small, local businesses. (Source: Board of Trade News, October 1999)
Photo from the Board of Trade’s photo archives, c. 1999
(99) In 2000, the Greater Washington Initiative launched a year long “21st-century” campaign designed to build the region’s reputation as a world-class place for business. Members were encouraged to use the tagline “Greater Washington: The Future is Here” and share facts about the region’s assets in corporate communications. (Source: Board of Trade News, February 2000)
(100) The Board of Trade’s Community Business Partnership and twelve regional universities formed a partnership to offer D.C. neighborhood businesses technical assistance from the universities’ top business students. (Source: Board of Trade News, October, 2000)
(101) After the terrorist attacks on September 11, 2001, the Council of Governments focused on building a regional plan for emergency preparedness. The Board of Trade was an important partner in this work and helped coordinate the private sector, which controls eighty percent of the infrastructure used in an emergency. (Source: Metropolitan Washington Council of Governments)
(102) To help increase transit ridership, the Board of Trade initiated a year-long campaign to encourage area employers to provide SmartBenefits to employees in 2002.
(103) The Board of Trade adopted its current logo in 2003.
(104) In 2003, the Board of Trade launched the Greater Washington Sports Alliance to attract big-name sporting events to the region and to promote our sports industry. It was eventually spun-off into its own organization, created events like the Rock ‘n’ Roll Marathon (which it sold), and operated until 2014 until it dissolved and its work was taken over by Events DC.
(105) The Board of Trade joined the Amtrak Business Coalition in 2004, which included over fifty east coast business organizations from Virginia to Maine and called for greater federal government investment in Amtrak’s Northeast Corridor Main Line.
(106) At a meeting at the International Monetary Fund in 2006, the Greater Washington Initiative released a study titled “Greater Washington: International Commerce and Culture” that benchmarked the combined Greater Washington-Baltimore region to 11 major metro areas in Europe, Asia, South and North America.
(107) In 2008, the Board of Trade threatened to withhold political contributions from Virginia delegates running for reelection after the Virginia legislature ended a special session on transportation without a set budget for road and transit projects across the state. (source: Washington Post)
(108) The Board of Trade launched the Consumer Outlook Index in 2008 to measure consumer confidence in the region on a quarterly basis. The index was managed for several years during and after the financial crisis.
(109) The Board of Trade hosted its first regional policy forum on transportation in 2008. The event featured secretaries of transportation from Virginia, Maryland, and the District and was followed by a news conference. The Board of Trade made this an annual event, and the 11th Capital Region Transportation Forum was co-hosted with the Greater Washington Partnership in November 2019.
Regional Policy Forum on Transportation, 2009
Capital Region Transportation Forum, 2019
(110) The Board of Trade advocated for a Metro rail line to Dulles throughout the 2000s, and federal funding was appropriated for this project in 2009.
(111) In 2009, the Board of Trade launched an index measuring the region’s economic outlook and ease of doing business. Still reeling from the financial crisis, more than half of the 204 executives surveyed said that their businesses’ financial situation was worse than the previous year. But over seventy percent said that doing business in Washington was easier than other metros in the US. (Source: Washington Post)
(112) In 2010 the Board of Trade and the Council of Governments published a 35-page report recommending serious changes to Metro’s governance structure. (Read the report here.)
(113) The Board of Trade held an annual luncheon with members and the Nationals baseball team between 2010 and 2017. The “Welcome Back Washington Nationals Team Luncheon” was a fun member event that showed community support for our baseball team.
(114) The Board of Trade and the Washington Post hosted The Business of Sports Forum, featuring Redskins owner Daniel Snyder, Capitals and Wizards’ owner Ted Leonsis, and other team owners in 2011.
The Business of Sports Forum, 2011
(115) The Board of Trade teamed up with four local community colleges and the Community Foundation for the National Capital Region to study employer-sponsored tuition-assistance programs in the region in 2012. They found that these programs can be a valuable tool for retaining talent but they were often improperly utilized. (Source: Washington Post)
(116) As the 2013 federal government shutdown entered its third week, the Board of Trade hosted a conference call for corporate executives to give guidance and advice on tracking paid time off, handling stop-work orders, and other issues. (Source: Washington Post)
(117) The Board of Trade was present to voice its support when Maryland Governor Martin O’Malley introduced the Maryland Offshore Wind Energy Act of 2013. It was signed into law later that year. (Source: smnewsnet.com)
Governor Martin O’Malley introducing the Maryland Offshore Wind Energy Act, 2013
(118) The Board of Trade joined Twitter in October 2014, where we continue to provide daily updates and news.
(119) Board of Trade leadership was invited to lay a wreath during an Army Full Honors Wreath Laying Ceremony at the Tomb of the Unknown Soldier in Arlington National Cemetery in 2014. Laying a wreath at the Tomb of the Unknown Soldier is an honor usually bestowed upon military personnel and visiting foreign dignitaries. (Source: US Army)
Jim Dineger, CEO and Stu Solomon, Board Chair of the Board of Trade at Arlington National Cemetery, 2014
(120) In 2015, the Board of Trade joined other business and civic groups in the region to sponsor 2030 Group’s Roadmap for the Washington Region’s Economic Future, research and recommendations on how to attract and retain millennial talent and grow the region’s economy despite shrinking federal government spending.
(121) In 2015, the Board of Trade, the Consortium of Universities, and the Council of Governments worked together to secure support from the Global Cities Initiative, a joint project of the Brookings Institution and JP Morgan Chase, to oversee an in-depth study on how the region can boost exports. (Source: Washington Post)
(122) In 2016, a delegation of regional leaders led by the Board of Trade traveled to several cities in China to learn about their infrastructure, transportation systems, business environment, and local culture. This trip was organized by the DC-China Center.
(123) In 2017, the Board of Trade, Federal City Council, and the 2030 Group spearheaded an effort to get twenty-one area chambers of commerce and employers’ groups to sign a letter to the region’s top political leaders calling for dedicated funding and governance reforms for Metro. This signaled newfound unity from the business community on this issue. (Source: Washington Post)
(124) MetroNow was founded in 2018 by the Board of Trade, Federal City Council, the Coalition for Smart Growth, Northern Virginia Chamber of Commerce, the 2030 Group, and the Greater Washington Partnernship to advocate for Metro governance reform and dedicated metro funding from the District, Virginia, Maryland, an the Federal Government.
(125) Dedicated funding for metro was secured from the District, Maryland, and Virginia later in 2018. This was considered a major victory for the Board of Trade and its partners who closely coordinated their advocacy efforts.
(126) In January of 2019, the Board of Trade coordinated a statement form 24 area business organization calling on Congress to end the federal government shutdown, which was damaging the local economy, creating hardship for many workers, and became the longest in our nation’s history. (Source: Board of Trade)
(127) In March of 2019, the Board of Trade entered into an agreement with the Metropolitan Washington Council of Governments (COG) and the Consortium of Universities of the Washington Metropolitan Area to form a “smart region movement” and the most comprehensive cross-sector partnership for smart regional growth in the United States. (Source: Board of Trade)
Chairs of the Greater Washington Board of Trade, the Consortium of Universities of the Washington Metropolitan Area, and the Metropolitan Washington Council of Governments presenting their signed MOU at a signing ceremony held at the Capital Area Food Bank, 2019
(128) The Board of Trade received the Chairman’s Award for Corporate Citizenship from Hope for the Warriors.
(129) Just as it has throughout its 130-year history, the Board of Trade is relying heavily on committees of members to explore and develop elements of the smart region strategy. In the spring of 2019, the Board of Trade launched eighteen committees, which it calls ‘Solution Groups,’ on topics such as procurement, public policy, social inclusion, and sustainability.
Chairs of the Connected DMV Solution Groups at the Connected DMV brand launch party, 2019
(130) In October of 2019, the Board of Trade and its partner organizations unveiled the official brand name and logo for the smart region program: Connected DMV. The program’s long-term intention is to provide a platform for efficient, effective, and ongoing regional collaboration on modernizing our infrastructure and amenities.
