KPMG 2022 U.S. CEO Outlook

Ford Pro, the division of Ford that serves government and commercial customers, is taking the idea of a one-stop shop to the digital age.

“We’re offering the entire data-driven vehicle ownership experience to support drivers’ productivity and help them create a positive impact on people and the planet,” says Ford Pro’s CEO, Ted Cannis.

Ford Pro offers software, battery charging, financing and customer support to serve commercial customers of all sizes and industries. This comprehensive approach helps customers achieve sustainability goals, improve energy management and accelerate productivity. Cannis estimates that integrated solutions can reduce the total cost of owning a vehicle by as much as 20%.

The simplicity of the integrated vehicle systems allows customers to run their business more efficiently. “The goal of a commercial customer is not to own a vehicle,” Cannis says. “The goal is to get the most out of your asset. Roofers want to roof, plumbers want to plumb, miners want to mine. They don’t want to be driving or repairing vehicles.”  

Cannis maintains a steady focus on small and midsize businesses. He recognizes that smaller businesses may be hesitant about transitioning to electric vehicles or productivity software solutions. “They don’t have whole teams of people working on electrification or digitalization the way big companies do,” he says. But Ford Pro, through its vast network of dealers and commercial centers, can help small businesses understand the impact of these changes.  

Expanding from selling vehicles to offering integrated ownership solutions is a new business model for Ford Pro that has required the company to rethink its internal structures. “It changed how we think about what kind of business we’re in, which is a complete ecosystem of solutions rather than vehicle sales,” says Cannis. “It has completely changed how we work, what we measure, what kind of talent we employ.” 

Even in uncertain economic times and a tense geopolitical environment, Cannis believes Ford Pro has a winning proposition. “The way I see it, it’s about how fast we can grow, and not about the external factors that can drive us down,” he says.

The speed of technology-driven change is placing Wind River, a leading intelligent systems software company, on a growth trajectory.

“There are a number of secular trends that are putting wind in our sails at a time when many are experiencing significant macroeconomic headwinds,” says company CEO Kevin Dallas. 

Wind River’s software for mission-critical intelligent systems is used in multiple industries, including aerospace and defense, automotive, telecommunications, industrial manufacturing and medical. Wind River’s technology has also been deployed in space, most recently on the NASA James Webb Space Telescope. 

Dallas is referring to three secular trends:

• Second Wave Of Digital Transformation: After decades of focus on enterprise applications and IT, digitalization is now impacting operational technology, a world of IoT and intelligent machines—drones, robots and autonomous vehicles—that can sense their surroundings, learn, make decisions and act.
• Intelligent Machine Economy: Where smart, connected, autonomous and economically independent systems, machines or devices carry out the necessary activities of production, distribution and operations with little or no human intervention.
• Intelligent Edge Compute: Applications like automated self-driving cars, advanced robotics and manufacturing automation are heavily dependent on compute, analytics, AI/ML and 5G as connectivity mechanisms—and all of these new opportunities are at the intelligent edge.

The company’s compelling vision of building an intelligent machine economy can only be achieved with a comprehensive strategy, flawless execution and lived cultural attributes, says Dallas.

“Established lived cultural attributes are critical to the company’s success,” says Dallas. The company’s cultural attributes include a customer focus, a growth mindset, and diversity and inclusion. With respect to a customer-first culture, he adds, “Gone are the days when we disappear in a conference room, come up with a product and then go sell it to the customer. You want to start with the customer, understand their use cases and desired business outcomes, and try to anticipate the unfulfilled needs.” In addition, Dallas says, “We are working to instill a growth mindset across the whole organization and creating an environment where there is diversity of both thought and background, where everyone feels they are included and belong.”

Dallas also notes that the company’s investment in a “social contract” positively impacts its local communities. The California-based Wind River has partnered with organizations like Oakland Promise and Blacks in Technology to empower under-represented groups. “We realize that people who are joining our company are not doing it just for our technology vision and workplace culture but also for how we contribute to the community,” says Dallas.

In January, Aptiv announced the acquisition of Wind River for $4.3 billion. Dallas believes this transformative merger will further fuel Wind River’s growth. Aptiv is a global technology company focused on making mobility safer, greener and more connected.

“Combining Wind River’s industry-leading software, customer base and talent with Aptiv’s complementary technologies, global resources and scale will realize our vision of the new intelligent machine economy,” Dallas says. 

Pandemic-related disruptions and uncertainties caused by geopolitical tensions and an anticipated recession have underscored the importance of an enduring approach to running an organization. Bank of America CEO Brian Moynihan points to a strategy of responsible growth that the company has adopted to deliver on its purpose, irrespective of economic conditions.   

“We have a straightforward strategy of serving three groups of clients—people, companies of all sizes and institutional investors—through eight lines of business. We deploy our capabilities, expertise and balance sheet to help our clients achieve their financial goals, while focusing on deepening relationships with our current clients and earning the trust of new ones,” he explains. “This approach positions us well to serve our clients through all economic conditions, while at the same time continuing to invest to support the needs of our teammates and our communities.”

To fulfill client expectations, the bank has increasingly relied on technology channels, on top of the nationwide network of financial centers for in-person support. In 2021, Bank of America saw record client engagement across its digital platforms. More than 72% of all the households served by the bank are using digital channels for more of their day-to-day needs and to plan for what’s ahead. Eighty-seven percent of the bank’s small business clients are engaged online. Additionally, more clients are using Erica, the bank’s virtual financial assistant. Powered by artificial intelligence, Erica conducted about a half-billion interactions in 2021.

“We deliver a wealth of services through our digital platforms for all clients, across all lines of business. These benefits are equally accessible and applicable across all demographics. And we are constantly exploring ways to expand and interconnect these tools to deliver a more seamless, personalized experience for each client that spans and supports their entire relationship with us,” says Moynihan.

The long-term thinking permeates the bank’s approach to its employees. “We want employees to develop a long, fulfilling career with our company, so we focus on providing support from their hire date through retirement,” says Moynihan. “In order to deliver for our clients and communities, we must be a great place to work for our employees. We are investing in benefits, programs and resources to provide a leading employee experience. We support employees’ physical, financial and emotional wellness; recognize and reward performance; cultivate an inclusive culture; and provide opportunities to grow and develop.”

Moynihan is cognizant of what business organizations owe the future, and their responsibility for clients, teammates, shareholders and communities. “We firmly believe our role is to drive both profits and progress. We need to align capitalism to produce this progress because, as a practical matter, the only way progress is going to be made is through the involvement of the private sector. Only the private sector has the funds, innovation and long-term thinking needed to deliver the things our communities need,” he says. 

The ongoing impact of COVID-19 has been a challenge for the retail industry, which continues to navigate this environment and adapt to the persistent uncertainty. Stitch Fix, a company that pioneered personalized shopping and styling by combining the expertise of human stylists with advanced data science, is digging deep into its innovative mindset to position the company for future growth.

“We are laser-focused on strategies that support our return to profitable growth,” says Elizabeth Spaulding, Stitch Fix CEO. “These include expanding our product offerings by adding more ways for existing and new clients to find personalized items and style inspiration, enhancing our technology to fuel the personalized online stores we envision for our customers, and strengthening the relationship between our expert stylists and clients.”  

This innovative approach requires the company to be the first mover in terms of technology. “Stitch Fix is in a constant state of digital transformation,” says Spaulding. “Whether that’s using customer feedback, data analysis and stylist expertise to predict style and shopping trends for our clients or updating our platform experience through product updates that improve the client experience, we’ll continue approaching digital transformation like we always have—as an essential part of our entire business.” 

Stitch Fix recognizes that people and technology are interdependent, especially since the company’s business model is built around the collaboration of people and technology. “Tech and humans bring out the best in each other. We are amid a multiyear endeavor to change the way people shop, and that requires a strong team armed with the best tools.”

True to its personalization mission, Stitch Fix is approaching its workforce with recognition of each individual’s needs. That might be crucial when skill shortages and an anticipated recession are straining employees and employers. “At Stitch Fix, we know there is no one-size-fits-all approach—whether for clothing choice or working style. The specifics of a company’s work, internal infrastructure and employee needs should determine the work models,” says Spaulding. “We have instituted a ‘work restyled’ philosophy that ensures our employees can do their best work wherever they are. Our personalized work model allows us to hire a diverse workforce centered in equity.”