IQ | Insigniam Quarterly - Fall 2023: "Speed to Value: A Playbook for Bold Results"

TRANSFORMING THE PRACTICE OF MANAGEMENT AND LEADERSHIP Volume 10 Issue 3 | Fall 2023 | insigniam.com/quarterly-magazine

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BEIJING RULES INNOVATION, REFRESHED METLIFE’S AI FUTURE A Q&A ON HOW TECH CAN HOW CAPITALISM BECAME GO INSIDE PEPSICO’S PACKAGING REVOLUTION. ENHANCE HUMAN TALENT. CHINA’S GREATEST WEAPON. PAGE 16

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SPEED TO VALUE: A PLAYBOOK FOR BOLD RESULTS

SPEED TO VALUE:

A PLAYBOOK FOR

BOLD RESULTS

Volume 10 Issue 3 | Fall 2023 insigniam.com/quarterly-magazine

SUPERCHARGED RESULTS HOW FORVIA INTERIORS EVP JEAN-PAUL MICHEL IS ACCELERATING CUSTOMER SATISFACTION AT ONE OF THE WORLD’S LARGEST AUTOMOTIVE SUPPLIERS. PAGE 22

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Producing components the right way, the first time, ensures not only speed to value for our partners and clients, but it also ensures that we circumvent costly financial waste. Ultimately, sustaining speed to value means that we must never stop improving.

—Jean-Paul Michel, EVP, FORVIA Interiors

Over 30 years ago, Insigniam pioneered the field of organizational transformation. Today, executives in large, complex organizations use Insigniam’s consulting services to generate breakthroughs in their critical business results. Insigniam’s innovation consulting enables enterprises to identify and cross into new strategic frontiers to rapidly generate new income streams. Insigniam provides executives of the world’s largest companies with management consulting services and solutions that are unparalleled in their potency to quickly deliver on strategic imperatives and boost dramatic growth. Insigniam solutions include Enterprise Transformation, Strategy Innovation and Innovation Projects, Breakthrough Projects, Transformational Leadership and Managing Change. Offices are located in Philadelphia, Laguna Beach and Paris. For more information, please visit www.insigniam.com.

LETTER

FROM THE EDITOR

EDITOR-IN-CHIEF Shideh Sedgh Bina sbina@insigniam.com EXECUTIVE DIRECTOR Jon Kleinman jkleinman@insigniam.com CHIEF FINANCIAL OFFICER Lora Yanagawa lyanagawa@insigniam.com DIRECTOR OF MARKETING AND SALES OPERATIONS Natalie Rahn nrahn@insigniam.com DIRECTOR OF CONTENT Jon Ball jball@insigniam.com CONTRIBUTORS Thomas Baltes, Marie-Caroline Chauvet, Diane Gabriel, Tracy D. Holloman, Anna Islamova, Katerin LeFolcalvez, Josh LeGassick, Guillaume Pajeot, Mia Studenroth, Gregory Trueblood, Bonnie Wingate, Jennifer Zimmer

IQ Insigniam Quarterly is a thought leadership publication committed to transforming the world of business by offering content relevant to the C-suite and their executive teams at large, complex global enterprises.

IQ Insigniam Quarterly is a production of Insigniam Holding LLC. No part of this publication may be reproduced in any form or by any means without prior written permission of the publisher and Insigniam. Printed in the U.S.A. For subscriptions, please visit quarterly.insigniam.com. Insigniam distributes this editorial magazine to share the opinions and insights of companies and their leaders on impactful global business issues. The statements, opinions, and information contained in this publication are those of the individual authors and contributors, not of Insigniam. Insigniam disclaims any responsibility for the accuracy, completeness, topicality, or quality of any statements, opinions, or information provided. Any liability claims against an author or contributor in respect of damage to persons or property caused or alleged to be caused by the use of this publication, including any statements, opinions, or information which are incorrect or incomplete, are therefore excluded. IQ Insigniam Quarterly’s inclusion of a company or individual does not indicate that they are a client of Insigniam. Remuneration is not provided for editorial coverage. Individuals appearing in IQ Insigniam Quarterly have done so with direct consent, or provided consent by a designated authorized agent in addition to being informed of the magazine’s audience and purpose. Both INSIGNIAM QUARTERLY and IQ INSIGNIAM QUARTERLY are registered trademarks in the United States, the European Union, China including Hong Kong, and other countries.

Copyright © 2023 by Insigniam Holding LLC

SPEED TO VALUE: A CRITICAL AND ESSENTIAL DRIVER OF YOUR BUSINESS.

In the face of rapid change, businesses are being forced to redefine how they approach strategy execution and prioritize their goals. Resilience and the ability to withstand disruptions have become common buzzwords in response to the challenges posed by—and following— the pandemic. Yet, many companies mistake resilience for simply reverting to old practices suspended during difficult times, which is often inadequate when change is the new constant.

To succeed in an era marked by relentless change, organizations should consider embedding speed into their strategy execution processes. Rather than reacting to every shift, they should proactively prepare to pivot priorities and focus on achieving speed to value that outpaces their competitors, especially for executives focused on delivering on what is critical and essential to their businesses—and their agendas.

In this issue of Insigniam Quarterly, we’ll hear from several executives who are catalyzing speed within their organizations and the incredible results that followed—from the first OTC birth control approved by the FDA to balancing technology and people-centricity in order to achieve outsized results. As you explore this topic with us, consider this question: Where can speed to value be instituted in your organization to achieve what is critical for your success? IQ

Shideh Sedgh Bina

Founding Partner, Insigniam HOW TO NAVIGATE OUR DIGITAL ISSUE

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Flip through the magazine, just like our previous print edition.

Tap stories on the cover or in the table of contents to read full articles.

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SPEED TO VALUE:

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A PLAYBOOK FOR

BOLD RESULTS

FEATURES

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10

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How catalytic questions can enhance generative AI results—and push leaders out of their comfort zones.

GOVERNANCE MASTERCLASS Irene Chang Britt on how boards can enhance speed to value for their enterprises.

R&D SVP Denise Lefebvre on PepsicCo’s ambitious goal of 100% sustainable packaging by 2025.

How EVP Jean Paul Michel is steering the auto supplier toward rapid results—while avoiding speed bumps.

By Josh LeGassick

By Shideh Sedgh Bina

By Bonnie Wingate

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40

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Slow growth, existential disruptions, and risks from the status quo can all be great motivators for a breakthrough...but what does it take to achieve it?

MetLife CHRO Susan Podlogar on how the insurance giant is crafting a people-focused approach to AI and the future of work.

How Frederique Welgryn and team brought the first OTC birth control approved by the FDA to market.

TECH BYTE: AI’S MAGIC WORDS

FROM THE BOARDROOM:

SEMINAL FEATURE: PLAYBOOK FOR BREAKTHROUGH RESULTS

By Gregory Trueblood & Jennifer Zimmer 2

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A FUTURE FUELED BY AI: METLIFE’S SUPER-HUMAN RESOURCES

By Tracy D. Holloman

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BLOOD, SWEAT & TEARS: PEPSICO’S PACKAGING REVOLUTION

CREATING SEISMIC VALUE: PERRIGO’S OTC REVOLUTION

By Katerlin Le Folvavez

COVER STORY: FORVIA’S SUPERCHARGED RESULTS

By Diane Gabriel

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RISING GEOPOLITICAL RISKS: THE NEXT COLD WAR: CHINA Vs. YOUR BOTTOM-LINE

Axios reporter and Beijing Rules author, Bethany Allen-Ebrahimian, on how China is leveraging capitalism to undermine free markets—and your enterprise.

By Jon Ball

“Producing components the right way, the first time, ensures not only speed to value for our partners and clients, but it also ensures that we circumvent costly financial waste. Ultimately, sustaining speed to value means that we must never stop improving.”

— FORVIA INTERIORS EVP, Jean-Paul Michel

DEPARTMENTS DEPARTMENTS

06 BROWSER HISTORY

Recommended reads for the C-suite.

08 BY THE NUMBERS

Calculating energy risks, country by country.

PODCASTS & AUDIBLES 1X1 WITH JEAN-PAUL MICHEL, FORVIA

Tap to listen to his Insigniam B.I.T.s podcast episode.

RECIPE FOR A BREAKTHOUGH

Listen to a reading of this month’s seminal feature story.

ON THE COVER

Jean-Paul Michel EVP, Forvia.

Photography by Thomas Baltes

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TECH BYTE

DID YOU SAY THE MAGIC WORDS? By using catalytic questions, leaders can use AI to enhance innovation and creativity—if they can stomach pushing themselves out of their comfort zones.

By Josh LeGassick A mere few years ago, the AI conversation was steeped in futurism. Today, AI’s tendrils have ensnared businesses in every industry, fostering metamorphosis at every echelon. Yet, despite AI’s pervasive presence, it is often viewed through a constrained prism, cast solely as an automation tool that extinguishes the doldrums of repetitive human labor.

In a piece published by Harvard Business Review, titled “AI Can Help You Ask Better Questions and Solve Bigger Problems,” authors Hal Gregersen and Nicola Morini Bianzino expound upon this paradigm shift. The authors believe catalytic questions—a specific type of open question that invites creativity and exploration and does not depend mainly on data and logic to answer—could usher in a revolution in how enterprises rely on AI tools and technologies.

According to authors Gregersen and Bianzino, as AI becomes familiar with more advanced forms of human inquiry, its capabilities will resonate far beyond automating mundane tasks; it possesses the power to elevate questioning into a realm of abstract ideation, unfurling vistas of understanding in an ever-more complex world.

The key to achieving this, say the authors, is the synergy between AI and the “soft” skills of inquiry, intermingling critical thinking, innovation, and complex problem-solving.

“AI can help transform the conditions and settings where people work so that questions that spark change — what we call “catalytic” questions—can emerge,” write Gregersen and Bianzino. “This pushes leaders out of their comfort zones and into the position of being intellectually wrong, emotionally uncomfortable, and behaviorally quiet and more reflective, all of which, it turns out, promotes innovative thinking and action.”

Focusing on “catalytic” questions offers a tremendous runway for innovation, starting with creating conditions for better questions.

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In this way, AI can shake things up for leaders and make them try new things.

“AI can take leaders out of their usual mode of operation and force them to cede control over where their questions will take them,” write the authors. “That’s a good thing [because] increased question velocity, variety, and especially novelty [help recognize] where you’re intellectually wrong, and becoming emotionally uncomfortable and behaviorally quiet—the very conditions that tend to produce game-changing lines of inquiry.”

The authors cite Jeff Wilke—former CEO of Amazon Consumer Worldwide— now a cofounder of Re:Build Manufacturing. Mr. Wilke is an early adopter of these conditions, which he believes assists with continually revising his mental models while moving from role to role.

“If you seek out things that you don’t know, and you have the courage to be wrong, to be ignorant, to have to ask more questions and maybe be embarrassed socially, then I think you build a complete model, and that model serves you well over the course of your life,” Mr. Wilke told the authors.

However, there is a catch: AI can be tough for people to get along well with. This is because AI can do things that seem almost like superpowers, and it can do things you don’t always expect. Some may find it challenging to trust AI, which does not necessarily help when it comes to being creative and coming up with new ideas.

“Rather than neatly resolve all those tensions, leaders and teams must learn to sit with the uncertainty that comes from asking questions that take them into new territory,” write the authors.

“While the process isn’t easy, the results are exciting, perhaps the most important benefit of collaborating with an AI system. Excitement provides momentum and motivation to push through a tough process, fueling further creativity.” IQ

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According to the American Psychological Association, psychology instructors are pairing catalytic questions with AI chatbots to prepare students for the real world, where inventive thinking is more important than rote memorization. insigniam.com/quarterly-magazine

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BROWSER HISTORY

CHINA’S ECONOMY WEAPONIZES, AI THREATS GROW, AND A CRYPTO KING FALLS Cautionary tales and insights abound in this month’s selection of executive reads.

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Tap to read our Q&A interview with Bejing Rules author Bethany Allen on page 56.

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Beijing Rules shows in vivid detail just how China uses its growing economic heft to protect its core interests.

Beijing Rules: How China Weaponized its Economy to Confront The World

Going Infinite: The Rise and Fall of a New Tycoon

Bethany AllenEbrahimian, the awardwinning China reporter for Axios, shows that by tying profits to political acquiescence the Chinese Communist Party is forcing companies and governments around the world to accept its rules. But Western democracies need not be helpless victims in Beijing’s game.

Grounded in deep investigative reporting, it sounds the alarm about what we must do to prevent the loss of freedoms we now take for granted.

When Michael Lewis first met him, Sam BankmanFried was the world’s youngest billionaire and crypto’s Gatsby. CEOs, celebrities, and leaders of small countries all vied for his time and cash after he catapulted, practically overnight, onto the Forbes billionaire list. In Going Infinite, Lewis takes readers into the mind of BankmanFried, whose rise and fall offers an education in high-frequency trading, cryptocurrencies, philanthropy, bankruptcy, and the justice system— tracing the mind-bending trajectory of a character who was allowed to live by his rules—until it all came undone.

By Bethany Allen, Harper August 2023

By Michel Lewis, W. W. Norton & Company September 2023

The Coming Wave: Technology, Power, and the 21st Century’s Greatest Dilemma

By Mustafa Suleyman, Crown September 2023

As co-founder of the pioneering AI company DeepMind (part of Google), Mustafa Suleyman has been at the center of the AI revolution. The coming decade, he argues, will be defined by this wave of powerful, fast-proliferating new technologies. In The Coming Wave, Suleyman shows how these forces will create immense prosperity but also threaten the nationstate, the foundation of global order. For Suleyman, the question is whether we can forge a path ahead that avoids catastrophe and dystopia. IQ

—Wall Street Journal

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BY THE NUMBERS

GLOBAL ENERGY MELTDOWN In August, Euromonitor International—a leading independent provider of strategic market research—published its first-ever “Global Energy Vulnerability Index,” designed to help leaders and businesses assess and benchmark their country’s energy security— as well as risks, challenges, and opportunities in their respective geographic markets—and where enterprises should consider expanding into in the future. The index measures six variables, all of which result in a country’s total score and their degree of energy vulnerability.

Ranked in order:

35 % 30 % 10 %

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Percentage based on a country’s access to fossil fuel alternatives.

Based on a country’s level of energy selfsufficiency.

Measures a given country’s energy reserve potential. |

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10 % 10 % 05 %

Percentage based on a country’s overall energy efficiency.

Percentage based on a country’s economic resilience.

Examines a country’s overall energy accessibility.

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24 FRANCE

The country has high energy reserves

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57 IRAN

#

44

High energy efficiency yet lower overall reserves

RUSSIA

High marks due to overall energy efficiency

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28 CHINA

Strong energy efficiency overall

INDIA

Energy reserves are low, comparatively

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#

top 5 low 5

Norway, Canada, Australia, U.S. & Columbia have strong energy selfsufficiency and energy resources, a diverse energy mix and high economic resilience.

Belarus, Lebanon, Hong Kong-China, Morocco & North Macedonia lack energy resources and struggle with poor energy efficiency and economic uncertainty. insigniam.com/quarterly-magazine

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FROM THE BOARDROOM

DIRECTOR’S CUT: IRENE CHANG BRITT’S GOVERNANCE MASTERCLASS

Her career spans nearly every facet of corporate leadership. Now, as a respected board director, Irene Chang Britt sheds light on how boards can propel organizations to achieve rapid value—and why trust is a powerful asset in the boardroom.

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ike any great director, Irene Chang Britt has the innate ability to bring a masterful vision to life. As one of the most distinguished leaders and innovators across the corporate landscape, Ms. Chang Britt’s career includes senior leadership roles at Campbell Soup Company and Kraft Foods, as well as her tenure as president of Pepperidge Farm.

Yet, most recently, Ms. Chang Britt’s role as a revered board director has afforded her a new palette to exercise her leadership credentials for companies such as Victoria’s Secret, First Watch Restaurant Group, and biotechnology research leader IDEXX to further accelerate their success.

Insigniam Quarterly recently had the opportunity to speak with Ms. Chang Britt about the need for strong governance and how an emphasis on diversity, trust—and perhaps even AI—are reinventing the dynamics for effective board leadership.

Many Happy Returns Irene Chang Britt was the cover story on the third issue of Insigniam Quarterly in Fall 2013. Ten years later, her insights have only grown, as evidenced by the nine boards and committees she currently serves on.

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By Shideh Sedgh Bina IQ: You have an incredible reputation as a leader and innovator in so many facets of the corporate world. Can you share how boards can play a critical role in helping a company accelerate its path to achieving significant results? What strategies or actions must be involved?

Ms. Chang Britt: For me, it’s all about how you set things up. You should have a strong management team and a capable board working harmoniously to drive the company forward. They must collaborate effectively, ensuring the strategy is set and executed seamlessly. This brings me back to three crucial elements: a well-defined process between the board and management, a clear framework, and accountability.

Let’s examine that further. The process involves a strategic cadence, where the board and management establish and periodically review the company’s strategy.

In the past, this might have been a once-ayear thing, but in today’s rapidly changing

In the companies I’m involved with, I emphasize the importance of establishing a robust strategic framework, and many of my fellow board directors share this perspective. It provides structure while allowing for flexibility. Without it, it’s like popcorn popping; anything can happen at any time.

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—Irene Chang Britt |

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INSIGHT

FROM THE BOARDROOM

world, the best boards consistently revisit their strategy during each board meeting to adapt to evolving circumstances.

Regarding accountability, it’s vital to have a system in place to assess progress against the strategic f ramework. The board evaluates management’s performance, but it’s equally important for the board to assess its own effectiveness throughout the year.

Above all, trust is a cornerstone. Even with the best processes, trust is necessary to make things run smoothly.

As an anthropologist turned businessperson, I believe in the importance of social psychology, and transparency is a key ingredient. While management should be transparent with the board, the board should reciprocate. There should be no surprises or hidden agendas. Trust should be a two-way street. Boards must work to earn the trust of management just as much as management needs to earn the board’s trust. Having good intent f rom the outset is crucial. That’s why I emphasize creating a framework that prioritizes long-term value for the company and committing to pursuing strategic initiatives with an open and sincere approach. It might sound soft, but these intangible qualities are the building blocks of trust, agility, and the pursuit of shared goals without hidden motives.

“In highpressure environments, the need to build trust among board members is paramount, and it can be challenging to maintain.

It’s about preparing for those pressurefilled moments in every interaction so the team can act as a cohesive unit when critical decisions arise.”

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IQ: Speed to results often requires making decisive decisions. In your experience, how can boards strike the right balance between thorough deliberation and expeditious decisionmaking?

Ms. Chang Britt: Having a solid strategic f ramework is crucial. In the companies I’m involved with, I emphasize the importance of establishing a robust strategic f ramework, and many of my fellow board directors share this perspective.

A f ramework provides structure while |

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allowing for flexibility. Without it, it’s like popcorn popping; anything can happen at any time. This might seem like agility, but it often leads to chaos. You can adapt quickly to new data with a well-defined f ramework and alignment.

You’re absolutely right about the need for speed, but rushing into decisions without a foundation can lead to failure. It’s all about finding the right balance. With a f ramework in place, you can respond agilely to new variables as they arise. This enables quicker decision-making because you have a solid basis for evaluating new information.

One of the most critical aspects is that the f ramework isn’t arbitrary; it’s datadriven. It’s based on extensive data analysis.

So when unexpected variables come into play, there’s usually data to support or analyze them, even if they seem to come out of nowhere. We constantly receive signals f rom the marketplace, competitors, customers, suppliers, and the entire value chain. The challenge is determining whether these signals are significant and, if so, how urgently they need to be addressed.

This involves a lot of judgment, but it’s informed by the data at our disposal. Given the constant stream of information, it’s essential to prioritize which signals require our immediate attention and which can be addressed later.

IQ: When designing such a framework, how can boards ensure that they effectively balance long-term needs for their business with the need for agile responses to changing market conditions?

Ms. Chang Britt: The f ramework should strike a balance; it needs to be clear and not overly complex, yet it should be goal-oriented, focusing on longer-term objectives rather than just short-term goals. Let me illustrate with an example:

Suppose you have a brand or a company losing traction with the next generation.

Part of your strategic f ramework should include the goal of attracting Gen Z. This goal remains relatively constant. However, it might disrupt your company if it has been primarily focused on, say, the boomer generation, and now you need to appeal to Gen Z. Under this overarching goal, there are various strategies and initiatives.

The key is that the goal of attracting the next generation doesn’t fundamentally change. The f ramework is robust in that sense. It doesn’t hinge on an entire generation suddenly disappearing or losing their purchasing power. However, the methods you use to achieve that goal can evolve in response to new variables, such as shifts in Gen Z’s consumer behavior.

This flexibility in the framework creates a foundation for robust discussions between management and the board. For instance, when Gen Z alters its buying habits, it can prompt discussions on how to adjust strategic initiatives in the coming 12 to 18 months.

But remember, this doesn’t negate the core objective of attracting the next generation; it’s about adapting your approach.

This scenario is not an obscure example; it’s a common challenge for many companies.

They become so efficient at catering to one generation that they forget to allocate resources and efforts toward the generation that’s on the rise. It’s a cycle that many companies need to recognize and address.

IQ: How can diversity—in terms of backgrounds and perspectives—within a board of directors influence a company’s ability to act swiftly and achieve desired outcomes?

Ms. Chang Britt: There’s a significant business case for diversity—it’s not just about doing something socially good; it’s about bringing in people who understand our customer base, client base, supply chain, and the entire value chain. I’ve been fortunate to be in situations where diversity has significantly influenced our strategy, making it more dynamic than it might have been without diverse voices at the table. When I mention diversity, I’m not only talking about gender, race, sexual identity, and age. I also

value socioeconomic diversity. People who didn’t have everything handed to them often bring unique perspectives to the table.

I recently read an article that suggests that diversity can slow things down due to the many voices involved. While more voices can lead to more discussions, what’s essential is having a solid process and a clear framework coupled with effective leadership. Board leaders, such as the chair or committee heads, must know how to facilitate and guide discussions toward decisions.

Over the past couple of years, we’ve relied on virtual meetings, which were efficient for getting work done, but they didn’t foster deeper relationships. While it’s great for speed and convenience, it lacks the personal touch. Face-to-face interactions, like sharing meals or casual conversations in the hallways, are crucial for building trust.

These moments allow us to connect on a human level and see beyond the formal boardroom discussions.

Seeing people in person, especially those f rom different backgrounds, can accelerate trust-building. When someone doesn’t look or come f rom the same background as you, it might take more effort to establish trust.

As humans, we tend to gravitate towards those who resemble us, but we also have much to learn f rom those who are different.

In essence, we find comfort in those like us and valuable lessons in those who are not.

BIO: Irene Chang Britt Irene Chang Britt is an experienced board and committee chair on public and private boards, across varied industries. She currently serves on the boards of IDEXX (Board Director), First Watch Restaurants (Board Director) Amica Senior Lifestyles (Chair of the Board), Victoria’s Secret & Co (Chair, Human Capital and Compensation), Peloton Capital Management (LP and Advisory Board Member), e-commerce startup MikMak and allergen-free food start-up Partake Foods.

Her previous corporate boards include Dunkin’ Brands (Chair, N&CG), Tailored Brands (Chair, N&CG), TerraVia (Chair of the Board), Brighthouse Financial (Chair, N&CG) and Sunoco. She also currently serves on the board of the not-for-profit leadership development organization Center for Higher Ambition Leadership.

Formerly, Ms. Chang Britt was a Fortune 500 President and SVP, with a distinguished 30–year career at Campbell Soup Co., Kraft Foods, Nabisco and Kimberly-Clark. She earned her BA from the University of Toronto, and her MBA, with honors, University of Western Ontario Richard Ivey School of Business.

IQ: What strategies or practices have you observed on boards that promote a culture of accountability and responsibility, which can contribute to faster results?

Ms. Chang Britt: In high-pressure environments, like decision-making that impacts many lives and significant financial resources, the need to build trust among board members is paramount, and it can be challenging to maintain. Trust takes time to develop. Building trust within a team is intentional work. It’s about preparing for those pressure-filled moments in every interaction so the team can act as a cohesive unit when critical decisions arise. These moments may not happen every day in management or on boards, but being ready for them is crucial to making well-coordinated decisions. insigniam.com/quarterly-magazine

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We must approach disagreements with an open mind. When you find yourself in a heated discussion with someone on the opposite end of the spectrum, it’s essential to listen actively. Pose questions that genuinely seek to understand their viewpoint and where they’re coming f rom rather than immediately interpreting their thoughts based on your preconceptions. It’s a bit like my grandmother’s wisdom: You have two ears and one mouth in that proportion—use them appropriately.

Cool Heads Prevail When in a heated discussion with someone on the opposite end of the spectrum, Ms. Chang Britt says it’s essential to listen actively. Consider posing questions that earnestly seek to understand the other person’s viewpoint rather than interpreting their thoughts based on your own preconceptions.

IQ: In our AI-age, business landscapes are evolving rapidly. Do you see a place for AI in a board’s modus operandi, and if so, what are some potential use cases for AI to ensure speed to results?

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Ms. Chang Britt: I would say less as a use case for the board themselves, but more so, it is a huge variable thrown into the mix.

AI is a game-changer that offers tremendous advantages for businesses that use it. AI enhances efficiency, productivity, and customer service. It’s a valuable asset for improving backend processes. But it’s not all sunshine and roses. AI brings significant security risks, from cyber threats to potential mismanagement. Therefore, it’s crucial for board directors to stay well-informed about AI, its principles, and how it’s implemented.

That’s one of the reasons why I emphasize diversity. Gender and race diversity are essential, but I also believe in age diversity. Wisdom gained from a long managerial career is invaluable in the boardroom. However, to stay relevant and

IQ: How can those new to serving on boards avoid micromanaging and ensure they enable management teams to execute effectively and efficiently?

ISTOCK

—Irene Chang Britt

tackle fast-moving issues like AI, we need insights from different generations. That’s why I strive to bring working executives onto the board. They offer real-time experience from other companies, which is vital in understanding rapidly evolving topics like AI. The business world has picked up speed, thanks to the digital era. Long-term thinking remains essential, but staying relevant means continuous learning and adaptation. So, I often ask myself and my fellow board members: How are we staying up-to-date? What are we learning, and how are we applying that knowledge?

Personally, I serve on startup boards, which keeps me engaged with SaaS and digitalfirst companies. It’s a two-way street—I share my experience and gain new insights, ensuring I’m not left behind.

Ms. Chang Britt: The old advice used to be “just listen for a year,” but that’s untrue. We recruit board members for their expertise, aligning their skills with our strategic needs. Most companies follow this approach. When we bring someone onto the board, it’s not because they’re a friend; it’s because they possess a specific skill set that’s immediately valuable. They might not know the company very well yet, but they bring their skills from day one. You can listen, go through orientation, ask questions, and find a board buddy for informal discussions. But remember, your skills are relevant from the start. They’ll grow deeper and broader over time, but you can contribute from day one.

It’s crucial to shift from a management mindset to a governance perspective when you enter the boardroom. This can be challenging for high achievers who’ve had successful management careers. The temptation to say, “I have a better idea,” can be strong, but it’s not always the right approach.

We must keep in mind that the world is changing rapidly, and I’m passionate about business and serving the companies I work with from a board perspective. I intentionally chose boards outside my original industry to keep learning. I believe in cross-pollinating ideas because having a mix of backgrounds prevents the duplication of management thinking. I’m fascinated by what’s next and how to help management navigate changes, make decisions, and achieve success quickly.

From a board perspective, the game is about stewarding value creation over time.

The beauty of a board career is having a portfolio of roles where I can continuously learn, contribute, and push thinking forward, all while being an asset to management rather than a necessary evil. IQ

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“As humans, we tend to gravitate towards those who resemble us, but we also have much to learn from those who are different. In essence, we find comfort in those like us and valuable lessons in those who are not.”

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BLOOD, SWEAT & TEARS

SUSTAINED PASSION: PEPSICO’S PACKAGING REVOLUTION How PepsiCo’s SVP of Foods R&D, Denise Lefebvre, is leading the food and beverage giant towards designing packaging that’s 100% recyclable, compostable, biodegradable, or reusable by 2025—while stoking her passion for the environment along the way.

By Bonnie Wingate

“We want to make better food and packaging for both people and the planet.

It’s not just something we want to do; we see it as our duty.”

—Denise Lefebvre SVP, Foods R&D, PepsiCo

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f there was ever a statistic to stop you dead in your tracks, consider this: According to Earth. org, over 350 million tons of food packaging waste—much of which contains harmful plastics, polymers, and resins—will linger in our environment for eons to come. Another way to look at it: Of all plastics produced worldwide today, nearly 40% are used for food and drink packaging.

Amid a global push toward sustainability, the food packaging industry sees massive investments from enterprises and organizations seeking to turn the tide According to a recent Eco-Friendly Food Packaging Global Market Report, the global sustainable food packaging market is expected to grow to over $280B (USD) by 2026. Behind that number represents a growing list of companies and startups committed to developing environmentallyfriendly materials. Yet, despite stratospheric investments in sustainable packaging, many enterprises are only beginning their journey.

Fortunately, there exists a powerful example of what can be achieved when critical resources and transformative leadership are deployed to achieve real progress. That example has been set by Denise Lefebvre, senior vice president of foods research and development at PepsiCo.

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Boasting an incredible global presence with food and beverages savored by consumers over a billion times daily across 200 countries and territories, much of PepsiCo’s success stems from a diverse food and beverage portfolio featuring renowned brands such as Frito-Lay, Gatorade, PepsiCola, Quaker, Tropicana, and SodaStream.

With 23 brands, each contributing over $1 billion in estimated annual retail sales, PepsiCo emphasizes the integration of purpose into every facet of its business strategy and brand identity, encapsulated by its commitment to “Winning with Purpose.”

Beyond PepsiCo’s immense size and scope—currently the largest food and beverage company in North America and the second-largest in the world—Ms. Lefebvre is shepherding the company on a transformational journey to design 100% of the company’s packaging to be recyclable, compostable, biodegradable, or reusable packaging. Perhaps most impressively, Ms. Lefebvre and PepsiCo intend to achieve this milestone by 2025.

While some may shudder in the face of radical transformation, Ms. Lefebvre says the opportunity to affect real, lasting change for

PHOTO COURTESY OF PEPSICO

The Choice of a Green Generation As the recipient of over a dozen industry recognitions for improved design and reducing the environmental impact of packaging, Ms. Lefebvre led a team at PepsiCo to develop the world’s first renewable PET plastic bottle.

both consumers and our environment is a treat too tasty to pass over.

“First and foremost, we believe we can make a difference,” says Ms. Lefebvre. Our snacks are in homes everywhere, and we want to make better food and packaging that’s better for both people and the planet.

It’s not just something we want to do; we see it as our duty. This idea is at the heart of our business strategy. When we talk about packaging, such as making it compostable or recyclable, we want to use our influence to change how society produces, uses, and removes packaging. We know it’s vital to our customers, and we believe that by doing this, we can create future growth and value for PepsiCo.” On that note, PepsiCo announced a strategic end-to-end transformation in 2021 of their sustainability agenda under the moniker PepsiCo Positive, or pep+. According to the company, three pillars of pep+ drive action and industryleading goals, including: Positive Agriculture: This entails spreading regenerative practices to restore the planet across the company’s entire agricultural footprint, which is approximately 7 million acres.

Ms. Lefebvre and team must maintain high levels of determination and passion if they are to impact millions of consumers around the world—and the planet itself.

Positive Value Chain: This includes achieving net zero emissions by 2030, becoming net water positive, and improving packaging sustainability—including reducing virgin plastics by 50%.

Positive Choices: This component leverages the scale and reach of PepsiCo’s global brands to drive positive impact at scale, evolve its portfolio into spaces that are better for the planet and people (including incorporating more diverse ingredients like plant-based proteins, nuts & seeds, and whole grains), and to expand its SodaStream business, now expected to avoid more than 200 billion plastic bottles by 2030.

According to Ramon Laguarta, PepsiCo’s chairman and CEO, “pep+ is the future of our company—a fundamental transformation of what we do and how we do it to create growth and shared value with sustainability and human capital at the center,” he noted in a corporate press release. “pep+ will change our brands and how they win in the market.

For example, imagine Lay’s will start with a potato grown sustainably on a regenerative field and then be cooked and delivered from a Net-Zero and Net Water Positive supply chain, sold in a bio-compostable bag, with the lowest sodium levels in the market. That’s a positive choice. That’s the best-tasting, #1 potato chip of the future. That’s how pep+ will be better for people, the planet, and our business. Now, imagine the scale and impact when applied to all 23 of our billion-dollar brands.”

[Green]House Rules Situated in PepsiCo’s offices in Plano, Texas, Ms. Lefebvre began her career with the company in 2006 and has held various roles across research and development in foods and beverages. During her tenure, she has held positions across engineering and insigniam.com/quarterly-magazine

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Senior Vice President, Foods R&D, PepsiCo In her role at PepsiCo, Ms. Lefebvre is responsible for leading the R&D strategies related to delivering new foods and packaging innovations to make consumers ‘smile with every bite.’

Ms. Lefebvre began her career with PepsiCo in 2006 and has held a variety of roles across R&D in both foods and beverages. Prior to her current role, her experience spanned several companies focusing on new product innovation for multi-billion-dollar brands in consumer package goods. Her previous position included experiences across engineering and food science disciplines, quality systems, marketing, and manufacturing.

Throughout Ms. Lefebvre’s career, she has received twelve industry recognitions for improved design and reducing the environmental impact of packaging, including leading the team to develop the world’s first renewable PET plastic bottle. She holds a Bachelor of Science from the Rochester Institute of Technology.

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food science disciplines, quality systems, marketing, and manufacturing.

As the recipient of over a dozen industry recognitions for improved design and reducing the environmental impact of packaging, Ms. Lefebvre led a team at PepsiCo to develop the world’s first renewable PET plastic bottle.

More recently, much of her work has been dedicated to creating better packaging for the company’s food portfolio, and not just from an environmental perspective. Ms. Lefebvre understands that for successful adoption of new packaging technology to gain traction, the customer experience is equally as critical.

“We have a requisite of making sure our

PHOTO COURTESY OF PEPSICO

Denise Lefebvre

sustainable packaging stays fresh and also provides a great experience for our customers whenever they open a bag of Lay’s or Doritos,” she says. “To achieve this, we focus on the science and technology behind these materials and are also building partnerships with others in the field. However, it can take a great deal of time to produce these materials.

This is partly why we built a massive learning center here in Texas, which helps us speed up our testing.”

The facility Ms. Lefebvre refers to is the Greenhouse Learning Center at PepsiCo’s R&D headquarters in Plano. The center tests the biodegradation properties of compostable packages in different environments to accelerate learnings, validate lab results through simultaneous and real-time experiments, and iterate packaging solutions quicker—essential components in PepsiCo’s ability to accelerate speed to value.

“At the Greenhouse Learning Center, we have a team of highly skilled experts dedicated to designing sustainable materials in this field,” she says. “Yet, when it comes to testing these materials, we seek thirdparty organizations to validate our work and provide an external perspective to ensure we remain true to our goals.”

One of PepsiCo’s significant partners on this journey is the Austrian-based organization TUV (which stands for “Technischer Überwachungsverein,” and translates to “Technical Inspection Association”), which holds the world’s sole certification for material degradation.

According to Ms. Lefebvre, TUV plays a crucial role in certifying products from across the globe and assessing material degradation through scientific analysis.

However, sending materials to Austria for testing and receiving results became a notable challenge for PepsiCo’s ability to iterate quickly. Hence, a more innovative solution was needed closer to home.

“To overcome this challenge, our Greenhouse Learning Center provides our engineers, scientists, and polymer chemists with immediate feedback,” she says. “We recognized that a critical timeline and a path to success were at stake—shipping materials to Austria and waiting for results hindered our ability to iterate, engineer, and design materials swiftly. Our solution was to implement a system where every adjustment

to our material composition could be instantly tested in real-time soil conditions.”

Ms. Lefebvre says this approach allows PepsiCo to leverage its partnership with TUV more efficiently—which includes relying on TUV for final third-party certification.

In tandem with The Greenhouse Learning Center, this affords PepsiCo the opportunity to iterate and be confident that packaging will receive final certification from TUV, significantly accelerating its progress and achieving speed to value more effectively.

“Speed is vital in our quest for sustainable packaging, aligning with consumer demand for eco-friendly solutions. We can substantially advance our sustainable packaging initiatives by reducing the timeframes from six to nine months or even a year to a more streamlined process.”

“Throughout this journey, there have been numerous setbacks, and I’ve learned to acknowledge their inevitability.

Remaining calm and steady for my team and myself in the face of these challenges has been crucial.”

A Passion for PepsiCo—and the Planet Even with an incredible resource such as a world-class testing center, the success of PepsiCo Positive—and, by extension, the work Ms. Lefebvre and her team are spearheading on sustainable packaging— requires tremendous heart, dedication, and personal investment in the health of our environment. Fortunately, for a leader such as Ms. Lefebvre, PepsiCo’s sustainability goals aren’t just corporate milestones. Rather, they align with her deep-seated passion for protecting our planet.

“I truly believe that wholehearted dedication to our work in these fields is essential,” she says. “To succeed, it’s not just about maintaining external partnerships; it’s also about educating and aligning our internal teams with various market dynamics and consumer behaviors. Having global executives from PepsiCo support our projects has been empowering. When they witness our initiatives in action, they often have an ‘aha’ moment, comprehending the profound impact we can make on the world and how it can be relevant in markets lacking recycling infrastructure. Engaging more minds and fostering dialogue is crucial in such a complex field.”

While Ms. Lefebvre is quick to applaud the company’s scientists and engineers for over a decade of dedication to these projects, she humbly neglects to mention that she was at the heart of this initiative, shepherding insigniam.com/quarterly-magazine

—Denise Lefebvre SVP, Foods R&D, PepsiCo

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INSIGHT

BLOOD, SWEAT & TEARS

PepsiCo teams through massive shifts in the market and protecting the work and results they have achieved from no shortage of existential threats in the last ten years.

Ms. Lefebvre’s unwavering commitment and enthusiasm to learn from internal and external sources, participate in consortiums, and engage with senior leaders at PepsiCo has established her as a truly empowering leader in the company.

“We aim to instill passion and commitment throughout PepsiCo, emphasizing the importance of delivering on our promises, setting clear milestones, and demonstrating tangible results to our leaders and partners,” she says. “Maintaining transparency, continuous education, and open communication is vital. Even if a particular approach doesn’t yield the expected outcome, we embrace it as part of the ‘zigzagging’ path of innovation. This ranks among the most challenging yet rewarding initiatives I’ve had the privilege to work on.”

If there’s a subtext to her comments, it is perhaps the challenges and setbacks that Ms. Lefebvre and team have had to contend with—all while maintaining the same levels of focus, determination, and passion required to spearhead an endeavor that will ultimately touch millions of consumers around the world, as well as the planet itself.

“Throughout this journey, there have been numerous setbacks, and I’ve learned to acknowledge their inevitability,” she says.

“Remaining calm and steady for my team and myself in the face of these challenges has been crucial. It’s also essential to reflect on what we could do better and continuously support our mission. Believing in a true North, a guiding vision, is paramount.”

One aspect Ms. Lefebvre says she underestimated is the unwavering commitment of others to such initiatives.

“Many people see complexity but aren’t sure how to navigate it or fully commit. This

While Ms. Lefebvre is quick to applaud the company’s scientists and engineers, she humbly neglects to mention that she has been shepherding teams through massive shifts in the market and protecting the work and results they have achieved from existential threats for over a decade.

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Innovation Incubator A first-of-its-kind Greenhouse Learning Center at PepsiCo’s R&D headquarters in Plano, Texas, aims for compostable packaging that never goes to waste.

realization has led to deeper engagement and dialogue to instill the same passion and belief in our mission. I initially assumed that what made sense to me would naturally make sense to others, but that’s not always true. People often ask, ‘Why take the lead in this challenging space?’ It’s my responsibility to explain PepsiCo’s unwavering commitment to positive change, our progress-over-perfection approach, and our dedication to sustainability— which cannot be achieved through isolated innovation; it must be scalable, affordable, and embraced by consumers.”

Ms. Lefebvre advises that this philosophy should be seamlessly integrated throughout the entire value and supply chain, ensuring accessibility for consumers. She says these factors are more critical than “any individual hero pushing an agenda,” as true impact requires meeting the holistic needs of consumers and businesses.

For Ms. Lefebvre and PepsiCo, keeping these considerations at the foref ront and maintaining a sense of focus throughout challenges is essential for making a lasting impact on stakeholders.

“We need everybody’s brain in the game—and the more people that we can educate and get in dialogue and get differing points of view and have discussion, the better and stronger we’ll be,” she says. “Our primary objective is to drive significant change within PepsiCo by fostering a culture of unwavering commitment with tangible proof. We don’t just make promises; we follow through with actions.

We set clear milestones and ensure they are visibly and concretely achieved within our leadership team and with our partners. We maintain the same level of transparency externally because we believe going silent is not an option. Continuous education and communication are essential. We understand that not everything will go as planned, and that’s okay. Progress is not

PHOTO COURTESY OF PEPSICO

always straightforward; it often involves twists and turns, but we embrace the challenge wholeheartedly.”

Sustaining The Future Even with over a decade of blood, sweat, and tears spilled in service of a greater goal, Ms. Lefebvre’s excitement for the future is palpable.

“I am thrilled about the future, as we deeply understand the tremendous impact our operations can have on the environment and society,” she says. “PepsiCo takes immense pride in leading the way, and that recognition fuels our unwavering commitment to work collectively to inspire others to drive positive change for our planet.”

As Ms. Lefebvre notes, PepsiCo’s commitment can be witnessed on numerous fronts. From creating a sustainable infrastructure to make a substantial difference in consumers’ lives, to breakthroughs in food

packaging technology, the potential impact on the world and consumers is enormous.

“I have every confidence that we will get it right,” she says. “This innovation is a pivotal part of PepsiCo’s broader PepsiCo Positive transformation, allowing us to sustainably produce, transport, and market our products. If we succeed, it won’t just transform PepsiCo; it has the potential to revolutionize the entire industry. We believe that all companies share the desire to contribute positively to the planet by reducing fossil fuel usage, enhancing environmental sustainability, and truly winning over consumers. It’s an opportunity for a collective win, which excites me the most—making a lasting difference.” IQ

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Results How FORVIA Interiors EVP Jean-Paul Michel is driving one of the world’s largest automotive suppliers to achieve supercharged results.

BY DIANE GABRIEL & PHOTOGRAPHY BY THOMAS BALTES

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Eyes on the Horizon At FORVIA, Mr. Michel is on a mission to inspire mobility by pioneering technologies and experiences that matter most to people.

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“To be extremely agile, we must ensure that our150,000 employees worldwide are highly engaged—and that dedication to excellence is truly part of our DNA.” —Jean-Paul Michel EVP, FORVIA Interiors

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or many of us, the process of shopping for a new vehicle starts by mulling over the latest makes and models that best suit our lifestyle and preferences. Perhaps the elevated driving dynamics of a Porsche or BMW gets your proverbial motor running. If reliability and longevity are paramount, you may find yourself kicking the tires on a new Lexus, the same way that someone who covets technological wizardry and environmental sustainability might shortlist a Tesla.

And yet, after sliding behind the wheel of any of the aforementioned marquees, you might be surprised to learn that the ultraplush seats cradling you—to the electronics keeping you safe and alert—were not necessarily designed and constructed by the company whose badge is firmly affixed on the middle of your leather-wrapped steering wheel.

That distinction belongs to FORVIA—the world’s seventh-largest automotive supplier and number one supplier of vehicle interiors and emission control technology—which designs and constructs complete interior systems for the world’s largest automotive manufacturers. From entire cockpit modules (seats, dashboards, center consoles, door panels and more) to driving sensors and actuators, interior lighting components, exhaust systems and advanced electronics, FORVIA is responsible for shaping the environment that drivers and passengers interact with most.

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Based in Paris, the company—previously known as Faurecia—was formed in 1998 by two automotive component suppliers, Bertrand Faure and ECIA. In 2022, Faurecia merged with German auto parts manufacturer Hella, with the combined business being renamed FORVIA. With over 150,000 employees across 300 industrial sites and 63 R&D centers, FORVIA is focused on becoming the preferred innovation and integration partner for original equipment manufacturers (OEMs) worldwide.

With clients such as Volkswagen Group, Stellantis, Renault-Nissan–Mitsubishi, Ford, General Motors, Daimler and many more, FORVIA is tasked with creating wholly unique interiors and experiences for every make, model and manufacturer they support. In fact, one in every two automobiles is now equipped by FORVIA. And yet, for a company that essentially wrote the book on interiors, FORVIA’s purpose hints at a higher calling. The company is on a mission to pioneer technology for mobility experiences that matter to people. FORVIA envisions mobility at the heart of people’s life and of what matters to them: moving freely and caring for the planet, their own way.

Part of that mission is driven by JeanPaul Michel, executive vice president of FORVIA Interiors, whose hands are firmly wrapped around the wheel, steering FORVIA into the future. As head of the company’s Interiors’ Business Group, Mr. Michel keenly

PHOTO COURTESY OF FORVIA

understands the inner workings of the automotive industry, having begun his career three decades ago at Michelin as a financial analyst. Before joining FORVIA in 2018 as finance vice president for the Interiors’ Business Group, Mr. Michel also held roles at Renault, Valeo, Osram and Lanzatech.

Central to Mr. Michel’s work at FORVIA is achieving the company’s Power25 plan, which is focused on three key strategic priorities: Drive sales growth through innovation and sustainability; Enhance profitability and lower their breakeven point; Generate strong cash conversion and actively manage the company’s portfolio to accelerate financial deleveraging.

Yet, none of those goals can be realized if the company’s product line is anything less than flawless, which means a great deal of Mr. Michel’s time and energy is spent focusing on how to deliver consistent quality for customers around the world amid endless supply chain challenges, critical investments in emerging technologies and an OEM customer base that is accelerating quickly given the number of new electric vehicle (EV) manufacturers coming to market.

Mr. Michel must keep one eye affixed on FORVIA’s OEM manufacturing partners, where interior and mobility components are built to spec, as well as on the overall satisfaction of the end user: actual drivers.

“We believe that we must go beyond our traditional business-to-business model to provide innovative solutions for our end customers, which is more reflective of a business-to-consumer model,” says Mr. Michel when considering FORVIA’s multifaceted strategy for overall competitiveness and differentiation within the market.

“To ensure that we are extremely agile, while at the same time very capitalistic and complex in terms of our use of technologies and supply chain practices, we must ensure that our 150,000 employees worldwide are highly engaged—and that dedication to excellence is truly part of our DNA.”

Mobility that Matters Beyond their gorgeous interiors and integrated cockpit designs, five of FORVIA’s latest technologies were selected as 2023 finalists for the prestigious Automotive News PACE and PACEpilot Awards, including an intelligent power distribution module that ensures the safety of electrified powertrains, thanks to world-first eFuse technology.

Speedbumps on the Road to Value If FORVIA’s ability to generate speed to value is based on the strength and effectiveness of its manufacturing prowess and operational efficiencies, then one of the most acute challenges facing Mr. Michel is how to ensure quality and sustainability are never relegated to the back seat. insigniam.com/quarterly-magazine

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From his vantage point, these two dimensions cannot merely be optional add-ons; they are integral components of FORVIA’s business model, which is compounded by the fact that the company operates in a surprisingly low-margin environment where perfection is just as critical as on-time delivery.

“Quality is a fundamental part of our culture, and we are intrinsically customercentric; our purpose is focused on customer satisfaction and continuous improvement, which can be found throughout all levels of the organization,” says Mr. Michel.

Yet, Mr. Michel understands that the company’s value proposition must encompass all facets of their OEM customers’ requirements and demands and yet remain affordable. The only way to achieve this is to build quality and sustainability from the ground up.

“Producing components the right way, the first time, ensures not only speed to value for our OEM partners and clients, but it also ensures that we circumvent costly financial waste,” he says. “When we have defects or problems, we analyze them, understand them, and fix them as effectively and expeditiously as possible so that we can continue to build solutions that meet our product design standards. In doing so, we capitalize on lessons learned, which is fundamental to our culture of continuous improvement. And, ultimately, sustaining ‘speed to value’ means that we must never stop improving.”

Equally important is the concept of sustainability, which represents a newer dimension of the company’s business model.

FORVIA’s sizable investments into both sustainable manufacturing practices and the use of environmentally friendly materials were driven by the belief that sustainability is an inherent aspect of total quality, versus acquiescing to social pressures to inject sustainability into the business.

“FORVIA was the first automotive company worldwide to set net-zero objectives that were approved by the Science-Based Target Initiative [an independent organization driving ambitious climate action in the private sector by enabling companies to set science-based emissions reduction targets],

If Forvia’s ability to generate speed to value is based on the strength and prowess of its operational efficiencies, Mr. Michel must ensure quality and sustainability are never relegated to the back seat.

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and we have committed to reaching net zero greenhouse gas emissions by 2045,” says Mr. Michel. “For me, and I want to be very clear about this, I think carbon awareness is increasing exponentially worldwide due to climate disruptions we all now experience.”

In order to secure sustainable materials, FORVIA is presently engaged in a joint venture with farming cooperatives in France to procure hemp. Additionally, to address manufacturing waste in its supply chain, the company is partnering with industrial plastic recyclers in North America. Most surprisingly, perhaps, is the role artificial intelligence is playing in the company’s commitment to sustainability.

“We are introducing AI in order to manage material formulations, and we are incorporating it into our design process so that our sustainable parts produce a lower carbon

PHOTO COURTESY OF FORVIA

footprint, as well as weight-saving benefits from enhanced production methods,” says Mr. Michel. “We are also continuing to explore ways to incorporate AI from the ground up so that it’s not an add-on, but rather, part of our business model. Sustainability is core to our customer’s concerns, which is one method to ensure we deliver on the full scope of consumer expectations.”

Beyond protecting the synergistic relationship between quality and sustainability, Mr. Michel and his team have had no shortage of additional internal and external pressures to contend with in recent years. From disruptions caused by the COVID-19 pandemic to supply chain breakdowns spurred by the Ukrainian conflict, as well as global electronic chip shortages, Mr. Michel’s ability to meet

customer demand has been tested repeatedly by a slew of existential threats.

“Over the past three years, our industry has faced tremendous pressures, many of which continue to stymie a sustained recovery in our sector and, thus, have contributed to a very costly stop-and-go operating model,” says Mr. Michel. “We have dealt with supply chain bottlenecks that have massively increased logistics costs due to production relocations, and we have been subject to rising inflation, which we tried to mitigate and absorb, but these issues have had adverse impacts on demand due to reduced affordability of vehicles. Across our industry—and within our supply chain—many companies are dealing with ways to overcome these issues.”

And yet, while Mr. Michel and his team are triaging disparate threats as they arise, insigniam.com/quarterly-magazine

The Future Takes Shape A new class of EV automakers are coming to market with a much more holistic in their approach to vehicle design, says Mr. Michel, notes that new OEMs prefer to rely on FORVIA to design fully integrated interior systems instead of piecemealing components to more effectively leverage economy of time, scale, and scope.

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the automotive industry as a whole is shifting toward electrification, with a host of new, independent and boutique manufacturers coming to market. American upstarts like Rivian and Lucid are already fighting for global market share with Chinese electric car companies like Nio, Xpeng and Li Auto. And yet, all roads lead to FORVIA, who works with a host of EV manufacturers, who all have highly technical specifications regarding vehicle componentry, design and construction.

“It is very clear that the automotive industry has been shifting toward the East over the past several years, and I believe that electrification within the industry is only accelerating this trend,” says Mr. Michel. “In 2023, China will produce 60% of the total worldwide EV production volume, and the high degree of specification within these vehicle architectures has enabled electric platforms to bypass many of the traditional barriers for entry, which have further opened the door to new entrants.” |

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If sustainability and quality are table stakes for speed to value, it might be said that adaptation is the third leg of the stool.

“By adapting our footprint and working methods, we can create value for our new manufacturer’s partners by providing them with enhanced solutions and capabilities on an accelerated timeframe. By prioritizing flexibility and adaptability, we can learn quickly when working alongside these new brands, thereby enhancing speed to execution,” says Mr. Michel, who notes speed, in general, is of paramount importance to the new class of OEM manufacturers.

“Within this domain, we are seeing customers ask us to deliver twice as fast as our traditional OEM business,” notes Mr. Michel.

“So, a change of approach is fundamental, especially within the Chinese market where speed to value is a top priority. We have to understand and deliver on our customers’ concerns in these areas since we know that speed to market is absolutely fundamental to

PHOTO COURTESY OF FORVIA

Best in Class Not only was FORVIA recognized for equipping the Jeep Avenger—voted European Car of the Year—in January 2023, but they also provided key technologies for nearly all the finalists in this 60th edition of the competition.

maintain a competitive edge, and this is the number one requirement from their side.”

Mr. Michel notes that FORVIA has successfully delivered on the needs of this emerging customer base through practices such as simultaneous engineering, manufacturing standardization, and simplification of technological components.

And while this is undoubtedly a challenge in terms of adapting previous manufacturing processes, the situation also presents interesting advantages.

“The new class of OEMs are much more holistic in their approach to vehicle design; they tend to have a more agile culture without the traditional silos that sometimes exist elsewhere,” says Mr. Michel, who also notes that new OEMs prefer to rely on FORVIA to design fully integrated interior systems instead of piecemealing components to more effectively leverage economy of time, scale, and scope.

For Mr. Michel, this underscores the need to reinvent, change, and adapt when and where needed.

“We know we cannot be successful if we do not adjust our ways of working, so we continue to adapt and refine our supply chain—and prioritize collaboration—so that we can protect the competitiveness of our OEM partner’s vehicles. Ultimately, that is what our customers and end users demand of us.”

Leadership Has No Self-Driving Mode Among the myriad of formidable challenges facing FORVIA, perhaps no other aspect is more consequential to the viability of the Interiors’ Business Group than the integrity of Mr. Michel’s leadership and his ability to steer the company toward a future of sustained success and innovation.

By his own account, Mr. Michel’s approach to leadership necessitates a delicate and deliberate balance between navigating shortterm priorities, medium-term sustainability goals, and long-term technological advancements. Yet, the seeds for his holistic leadership philosophy were sowed decades earlier in his career.

“Let me share an anecdote that goes back almost 30 years ago: I was working for a company with a powerful performance culture. One day, while speaking with our CEO, I expressed my concerns that we might

not accomplish some of our strategic goals as a firm. I vividly recall him looking at me and saying, ‘Jean-Paul, you’re absolutely right.

Sometimes, we will fall short of our goals. But we need only ensure that nobody else would have done better than us,’” recalls Mr. Michel.

The obvious takeaway for Mr. Michel was not to get crushed by setbacks, yet the lasting lesson was to keep going and push forward no matter the circumstances. This internalized sense of grit, resilience and perseverance would pay dividends throughout his career.

“I found his comment very inspiring in many ways,” remarks Mr. Michel. “I think for me, that lesson demonstrated the importance of standing tall no matter the wins or losses, and as a leader, ultimately, to keep going in order to deliver our best. People look to leaders to show them the way forward, especially in the tougher circumstances, and I know that responsibility ultimately resides with me.”

This sense of resilience at all costs is a quality Mr. Michel is passionate about injecting into his direct reports and teams within the Interiors’ Business Group.

“In many ways, we are a reflection of society,” he says. “Sometimes it may feel that our society is subject to one crisis after another, and although I do believe that ‘what doesn’t kill you makes you stronger,’ we must continually reinvent ourselves to be effective in any situation we may find ourselves in so that we can respond to challenges as they arise.”

Amongst his direct reports, Mr. Michel prioritizes open and transparent communication to provide a critical context for where the company is headed and the adaptations and changes required to move from one challenge to the next successfully.

“We all experience setbacks, but we must keep going,” says Mr. Michel. “Let’s understand where we are headed next and then get ourselves in shape to deliver results. We have a fantastic organization filled with incredible talent, energy, and an amazing sense of commitment from employees at all levels. When you have this degree of engagement, people have the confidence to overcome challenges no matter how severe they may be. Not because of any one individual but rather the strength that arises when a team is fully invested in a cause that is greater than oneself. As a leader, when that happens, you witness firsthand how fantastic and incredible the strength of a team can truly be.” insigniam.com/quarterly-magazine

BIO: Jean-Paul Michel EVP, FORVIA INTERIORS Jean-Paul Michel began his career in 1986 at Michelin as a financial analyst. In 1989, he joined Renault. From 1991 to 2002, he worked for Valeo as chief financial officer for different business units in Europe and North America. From 2002 to 2014, Mr. Michel held different finance functions at OSRAM, becoming chief operating officer for the consumer lighting business in 2014.

Prior to joining FORVIA (then Faurecia) in 2018 as finance vice president for the Interiors activity and then EVP for the Clarion Electronics activity, he was executive vice-president in charge of operations, finance and strategy at lanzatech (2015-2017).Mr. Michel holds a diploma in business administration at the Sup de Co Reims (NEOMA, France).

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Driving Force By his own account, Mr. Michel’s approach to leadership necessitates a delicate and deliberate balance between navigating short-term priorities, mediumterm sustainability goals, and longterm technological advancements.

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“We must continually reinvent ourselves to be effective in any situation we may find ourselves in so that we can respond to challenges as they arise.”

—Jean-Paul Michel EVP, FORVIA Interiors

Yet, even leaders of highly engaged, highperforming teams must overcome self-doubt occasionally. From Mr. Michel’s perspective, introspection can be a powerful tool for leaders willing to uncover weak points in their leadership repertoire. It can be painful and requires being comfortable with one’s vulnerability to identify gaps and face them head-on.

“When an outcome is not ideal, there can be real value in embarking on an introspective journey to analyze the situation—in terms of what we could have done differently, as well as strategies or tactics that we may utilize in the future,” says Mr. Michel. “I think understanding oneself as a leader is very important. If I don’t understand my state of mind when I make a decision, I’m more likely to make the wrong call. That is why it’s imperative to be introspective in these circumstances. It’s not about being right; it’s about making it right and doing the right thing.”

The Road Ahead When pressed about what excites him regarding the future, Mr. Michel is not one to mince words. Given our rapidly changing automotive landscape, the spotlight in recent years has shifted toward the cockpit and to the experience of life within the vehicle, which is music to the ears of Mr. Michel and the team at FORVIA. “For all of us, what truly matters is making a meaningful impact, and our industry provides us with a remarkable platform to do that,” he says. “If you visited an auto show 20 years ago, you would find hoods open and doors closed, emphasizing what’s under the hood. At today’s auto shows, the doors are wide open, and the hood is almost an

afterthought. The most remarkable aspect of this shift is that it’s a positive disruption—a transformation that places users and their experiences at the center of attention.”

Also of particular excitement for Mr. Michel is the convergence of emerging technologies, which he views as a seamless fusion of the physical and digital realms.

“For us, it represents an unprecedented opportunity to create a significant difference, to make a lasting impact, and to shine in the industry,” he says. “In essence, we find ourselves at precisely the right moment and in the perfect position to seize this opportunity and deliver exceptional outcomes.” When asked what insights or advice he might share with other executive leaders about creating an agile environment where innovation, quality, and customer satisfaction thrive, Mr. Michel pauses thoughtfully in a moment of selfreflection before sharing his advice.

“Earlier, I mentioned the concept of a ‘performance culture,’ and to me, it means more than just words; it’s about how an organization operates. It’s about embracing decentralized decision-making, which, in my view, epitomizes agility. This approach ensures that each employee and every team can sense and act according to their capabilities. It’s a fundamental aspect of success, and it’s at the core of effective leadership – creating an environment where values and vision serve as the organization’s guiding compass.” IQ

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A PLAYBOOK FOR BREAKTHROUGH RESULTS

Slow growth, existential disruptions, and risks posed by the status quo can all be great motivators to pursue breakthrough results. But the question is, what does it take to achieve it?

BY GREGORY TRUEBLOOD AND JENNIFER ZIMMER

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SPEED TO VALUE:

A PLAYBOOK FOR

BOLD RESULTS

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T

TO PLA Y

AP

AUDIBLE

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F

or those of us who have witnessed true, meaningful breakthroughs—the kind that can reshape and redefine the trajectory of a company and an entire industry—we understand their profound impact.

As trailblazers in the art of catalyzing breakthrough results for over three decades, Insigniam offers a refined definition. We describe a breakthrough as a measurable outcome that stands out as unprecedented or unlikely based on an organization’s history, resources, and the environment in which it operates.

Whether these breakthroughs concern processes, project deliverables, strategies, or corporate culture, their impact is nothing less than transformative; moreover, true breakthroughs are not fleeting phenomena; they’re sustainable and continue to deliver results without compromising quality, integrity, or well-being. They result from individuals adopting fresh perspectives and taking novel actions, thus unveiling, and pursuing untapped opportunities.

Although many executives may be acutely aware when a transformation is needed, the actions for achieving a successful breakthrough can sometimes be opaque.

The real challenges for global enterprises lie in where to begin—and how—to overcome stagnant growth, anticipate impending disruptions, and avoid the perils of sticking to the status quo.

The spark required to ignite a breakthrough must be fueled by a fundamental shift in thinking that challenges the conventional view of the future as a product of the past.

Start By Revealing the Drift This is where breakthroughs begin. The initial step is to acknowledge and address the “organizational drift.” This refers to the likely future trajectory of performance based on the convergence of a company’s established practices, institutional dynamics, and deeply ingrained belief systems with the external environment in which it operates. This drift exerts a force that propels outcomes in a specific, predictable direction, reminiscent of Adam Smith’s notion of the “invisible hand” shaping economic behavior.

To illustrate the influence of the drift, imagine strolling alongside a flowing river.

Gazing into the water, you observe the ebbs and flows of the current, discerning its speed, origin, and destination. Now, envision tossing a twig into the river; you can forecast where it will end up and where the river’s natural course will hinder its progress. Similarly, we can scrutinize the drifts within organizations that dictate mindsets, behaviors, actions, and measurable business results.

To move beyond the drift and into an environment where new futures can be achieved, Insigniam’s methodology has identified four critical steps—and their associated actions—required for a breakthrough. This process is designed around essential activities which must happen in succession to achieve success.

1

Reveal The first action on the path toward a breakthrough is to reveal and uncover the prevailing and controlling conversations that give rise to how people in the organization act, interact, approach problems, and view the work environment. This means confronting what is considered real (e.g., assumptions and beliefs).

One example from our work was when the new CEO and the CHRO of a Fortune 500 multi-national foods manufacturer partnered with Insigniam to design an engagement that would elevate leadership within the organization so that the company could respond to the current demands for nutritional products in the United States.

The leadership teams needed to bring a sense of urgency to their deliverables and level

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up their leadership prowess and commitment to realize a pathway for action and success for the organization. However, before they could do this, they needed to reveal the prevailing context for how leaders experienced the work and themselves in it. They would need to establish a new leadership cultural framework that other leaders would embody in the company. This would require the executive leadership and the leadership teams to develop and align on their purpose, ways of working, who they promised to be, and how they promised to show up for the company.

Through a series of conversations, Insigniam interviewed executive and extended leadership teams to reveal the prevailing context for the organization’s leaders and how they showed up every day.

The teams engaged in a discussion to develop leadership behaviors that each would embody to support the leadership framework of the organization. The executive leadership team led the charge in re-designing the leadership behaviors they would live in and what they would look like in action as a commitment.

To implement what was revealed, the extended leadership teams modeled their behaviors after the executive leadership team with clearly defined ways of being and working that demonstrate their commitment to owning the culture and growing the company.

Critical actions like creating clear pathways for crossfunctional communication and ways to fast-track priorities and decisionmaking is critical.

The Breakthrough The executive and extended leadership teams identified and owned where they did not embody the leadership behaviors of the organization. Each of the teams created a new future to live in that was in service of the patients that needed their nutritional products. The teams were then on a path to designing a new future for the organization that positions them in the market as the goto for medical nutritional products.

2

Unhook The second step pertains to how an organization and its people must detach from

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f rom prevailing conversations by recognizing them as just one possible set of conversations. This means understanding that much of what is considered real is just a collection of interpretations and facts.

Enterprises can open new possibilities to emerge by unhooking people f rom prevailing conversations.

Consider the challenge faced by one of the largest medical device companies in the world, which was working to develop a groundbreaking surgical device. If successful, it would create an entirely new market for the company and bring innovative surgical procedures to patients worldwide who currently don’t have access to this technology.

The company was also in a race to beat a large competitor in the market.

After year eight of the project—four years past the original promise date—the norm was that deadlines get pushed because no one related to them as real. The team had lost faith in themselves, the timeline, and the project plan–they no longer believed in their ability to deliver.

In this case, Insigniam worked with crossfunctional teams to deliver a breakthrough project that seemed impossible: provide the product to market within one year.

Yet, to achieve such an ambitious goal, team members needed to unhook from many of the behaviors and practices that had eroded trust amongst internal and external stakeholders. Repairing that fractured confidence was of paramount importance for the success of the project and the future of the company.

Critical actions such as creating clear pathways for cross-functional communication and ways to fast-track priority requests and decision-making would be critical. To implement these actions, project managers and quality leaders developed a process that motivated the entire organization to complete a multitude of tasks on schedule ahead of any submissions to the FDA. By embedding new ways of working, teams were aligned with the actions needed to move the project forward, as well as a shared sense of accountability and responsibility—a result of working from the facts and as one team committed to an outcome.

The Breakthrough The company’s groundbreaking piece of surgical equipment was successfully submitted for approval to market three days ahead of the promised delivery date.

Furthermore, these cross-functional teams taught themselves new ways of working and achieved something that wasn’t possible in the previous eight years. As a result, the product opened doors to an entirely new business vertical for the company—and outcomes for patients.

3

Invent The third action needed to achieve a breakthrough requires individuals to invent and design a new set of conversations— rooted in an inspired future—to drive new and potent actions and results. At this point, conversations move from being circumstancebased to being commitment-based.

One relevant example from our client work was when a major U.S.-based hospital healthcare system—known globally for unrivaled patient care and outcomes—was not viewed as a leader in actual physician leadership development. The leadership development opportunities within the organization were largely brought about by chance, on-the-job training to fill gaps in already recognized leaders, or offered because of who someone knew and the resources they could connect them to.

Many of the previous programs that had fostered leadership development across the organization, even beyond physicians, were cut over the years. Yet, with their vision set on the future, it became clear that a formalized structure would need to be embedded throughout the organization to develop physicians as leaders if the health system were to realize the bold vision they had set out for their future.

Insigniam was engaged to help ensure that the leadership development program not only built first-class leaders but did so in a way that fit the organization’s uniqueness.

Conversations with cross-functional groups at all levels revealed many roadblocks to leadership development and where the

organization might have opportunities it was not currently acting on—or even seeing.

By confronting many of these background conversations, a variety of conversations emerged on what worked well, what should be eliminated, and what needed to be added to ensure success—with several common themes arising across a majority of the interviews.

With these truths uncovered, the client assembled a collaborative team that used design thinking principles to create and invent a mix of prototypes that were then reviewed with the governing body that would give the initial “yea” or “nay” on whether the leadership development structure would go forward to be implemented throughout the organization.

Don’t risk ceding the future to competitors when the actions needed for a breakthrough can propel your enterprise to a level beyond your wildest dreams.

The Breakthrough This framework and accompanying platform were presented to several governing bodies—all of whom were aligned with the proposal. This was a major win in the traditional, consensus driven culture of the organization. The leadership team recognized that this prototype—rooted in commitmentbased conversations—was a distinct departure from their traditional leadership development. Moreover, the new approach reflected the timeless values the health system prided itself on, which were at the core of the development platform.

4

Implement The final stage—implementation—arises when organizations can operate from a base of new conversations, and individuals can design the appropriate structures and practices to turn a breakthrough goal into a breakthrough result.

Naturally, threats can arise at any stage— such as a global pandemic that shifts an entire workforce to virtual environments. For one of the largest manufacturers of automotive tires, this was a reality.

Throughout the company’s history, partnerships were forged, and customers were served, through face-to-face interactions.

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This was the time-tested approach at the company, where professionals had honed their skills and operational strategies through years of in-person meetings. However, with the onset of the COVID-19 pandemic came a seismic shift. With it, the company’s well-trodden path to success suddenly vanished.

Alongside the disappearance of customary business practices, the ability to convene with colleagues in person evaporated. The very act of brainstorming and providing direct support to one another became a challenge. As the world grappled with the new reality, people had to adapt, finding innovative ways to foster internal and external connections. The structures they had long relied upon had crumbled, leaving them to navigate uncharted waters.

Our work with the client was driven by a desire to increase and maintain engagement with internal and external customers in a virtual world. Additionally, the company sought to grow great customer relationships, be agile in this new environment, and discover and embrace new purposes for their work. This required wholly new ways of operating as a team.

After aligning on an inspiring possibility for their future, project teams were created to plan a pathway to achieve their intended results.

Impressively, their plans were so well conceived that the president of the operations group arranged for them to present the objectives and pathways during a quarterly meeting attended by executives.

Two activities made an observable difference in people increasing their level of participation and deepening their connection with each other. The first was an employeecentric program designed to spotlight and share what inspires individuals about their work—which itself became an incubator for inspiration during a time of great existential stress for employees.

Secondly, it was identified that one of the international teams had previously felt disempowered to participate in more extensive group conversations and engagement because of differing cultural norms. By providing these teams with a safe platform to share, they created a new reality for themselves where they were encouraged and supported to be more assertive and speak up in the larger group.

The prevailing challenge for global enterprises is how to overcome stagnant growth, anticipate impending disruptions, and avoid the perils of sticking to the status quo.

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Ultimately, this powerful cohesion resulted in new ways of working and a consistent increase in employee engagement, which created new strategies and pathways for serving customers in a virtual environment.

The Breakthrough By creating and aligning on a new possibility for the future of their business— one that inspires employees—teams launched two breakthrough objectives that helped deepen relationships beyond international borders.

Ultimately, this powerful cohesion resulted in new ways of working and a consistent increase in employee engagement, which in turn, created an environment for teams to devise and invent new strategies and pathways for serving customers in a virtual environment.

A Playbook For Action The actions required to achieve a breakthrough must be supported by a fundamental shift in thinking that challenges the conventional view of the future as a product of the past. In our journey through the breakthrough process, the future acts as the backdrop against which the people within an enterprise discern what’s feasible and beyond reach. It has a profound influence on their thoughts, actions, and behaviors. It delineates a horizon that beckons people to take action.

Creating an enterprise with a compelling future calls for leadership that recognizes an enterprise’s power extends beyond its capital and transactions, understanding that harnessing the human factor entails investing time and energy for significant, meaningful conversations. It requires dedication and discipline to master the types of dialogues that construct and inspire an enterprise and the actions to turn goals into reality.

The pivotal question is this: If an observer were to scrutinize your organization, what type of actions would they witness? Don’t risk ceding the future to competitors when the actions needed for a breakthrough can propel your enterprise to a level beyond your wildest dreams. IQ Portions of this article are based on materials created by Werner Erhard and on the book The Three Laws of Performance: Rewriting the Future of Your Organization and Your Life, by Steve Zaffron and Dave Logan, 2009, Jossey-Bass, San Francisco, and are used with permission.

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Great Minds Don’t Always Think Alike

Even the best executive can benefit from new thinking and different action.

Find the fresh perspectives you need right now at insigniam.com/ thought-leadership.

Stay tuned in to the latest insights at insigniam.com/quarterly-magazine. insigniam.com/quarterly-magazine insigniam.com/quarterly-magazine

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MetLife’s

SuperHuman

SPEED TO VALUE:

A PLAYBOOK FOR

BOLD RESULTS

Resources METLIFE CHRO SUSAN PODLOGAR ON WHY THE INSURANCE GIANT IS TAKING A HUMAN-CENTRIC APPROACH TO AI AND THE FUTURE OF WORK.

BY TRACY D. HOLLOMAN

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I

n an era of rapid technological advancement and evolving workplace dynamics, enterprises are increasingly exploring ways to harness Artificial Intelligence (AI) to augment human capabilities rather than replace them.

MetLife—one of the largest global providers of insurance, annuities, and employee benefit programs, with operations in over 40 markets—stands at the foref ront of this human-centric AI revolution.

The company’s journey with AI has been marked by a profound understanding that the true power of this technology lies in its ability to enhance the human workforce, creating a harmonious blend of human expertise and technological innovation.

Insigniam Quarterly recently sat down with Susan Podlogar, MetLife’s chief human resources officer and a member of the executive leadership team, to discuss how the company’s approach to AI is deeply rooted in its commitment to serving customers, supporting its workforce, and ultimately contributes to a more confident future for all stakeholders.

IQ: We know that many executives are curious about how AI can augment human capabilities rather than replace them. How is MetLife already using AI to enhance the abilities of its workforce?

Ms. Podlogar: MetLife has been on a journey with AI for several years – and we know that the true power of AI lies in how we, as individuals and teams, work together with technology. We see AI as an enabler for how we best serve our customers and support our workforce, with some of the examples including: 1. AI assisting in augmenting human connection and empathy: One energizing example stems f rom an early experiment with our Customer Service Representatives utilizing an AI-powered emotional intelligence solution. The AIpowered solution provided live, in-call voice 42

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analysis to help our f ront-line employees create better human connections and boost customer satisfaction. The tool helped create awareness for our f ront-line associates. One example was the energy cue. An agent who used the tool shared that he’d start slouching in his seat at the end of the day, and the posture meant he didn’t project his voice as much. When the energy cue (a coffee cup icon) appeared on his screen, he sat up straight, spoke more energetically, and was more engaging during the call. This was a win for the employee, who felt more confident in the connection with the customer, and a win for the customer, who was interacting with a more engaged representative.

2. AI creating internal mobility opportunities: Our internal talent marketplace, MyPath, uses AI to help curate on-the-job learning experiences and networking opportunities. Since its inception less than two years ago, more than 26,000 of our employees have registered in the tool and have made more than 4,300 gig connections and 1,200 mentoring connections – with the majority of these connections being cross-function, cross-country, or cross-region. In addition, a consistent theme f rom project owners is the appreciation to easily access a diversity of skills, thoughts, and expertise f rom around the globe. Those participating in projects consistently share feedback about their ability to learn f rom others and to feel valued by contributing their skills in new ways – regardless of their line of business or role/level.

3. AI tailoring education and development: We also have MyLearning, our on-demand library of learning content, that elevates meaningful learning opportunities. Employees can choose up to five focus skills they want to develop and rank them by their current skill level. Then, MyLearning uses AI to curate personalized content and learning plans. While we’ve been using MyLearning for some time, the

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addition of ‘focus skills’ is a new part of our AI journey. For those employees who have identified their focus skills they are receiving more personalized learning content, and, as a company, we are gaining further insight to in-demand skills and content.

These examples prove that AI, when combined with human oversight and direction, can bring energy into our workforce, positively augment the work we do, and, ultimately, positively contribute to business outcomes.

IQ: How does AI adoption align with MetLife’s strategic vision for the future?

Ms. Podlogar: MetLife’s purpose – “Always with you, Building a more confident future” – is our compass and motivates and drives us to be better and do better for all our stakeholders. It guides every action we take as we execute our strategy.

When we launched our Next Horizon strategy more than three years ago, we could not have predicted the unprecedented challenges we would face. Now, as we look to the future, we are certain that our strategy remains the right strategy to help us proactively plan, embrace change and deliver for our people, customers, shareholders and communities. AI has

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Real Connections Since its inception less than two years ago, more than 26,000 MetLife employees have signed up to use the company’s MyPath platform, which uses AI to help curate on-the-job learning experiences.

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IQ: Where do you see the most significant benefits of AI? Conversely, are there risks that keep you up at night?

Ms. Podlogar: From our perspective, there are four main benefits of AI for the workforce: 1. Innovation: At MetLife, our customer focus, combined with our culture of collaboration, experimentation, and agility is our bedrock. This solid cultural foundation allows us to use AI as an accelerator to serve our customers in a more tailored and efficient way. For example, in our MetLife Dental business, 44

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we have been using AI to help process our claims more quickly and efficiently – f reeing up time for employees who process claims to work on the more complex cases as well as helping our customers in a more timely manner.

2. Meaning: AI is helping us release the untapped potential of our workers.

Automating repetitive tasks allows people to focus on more creative, strategic and human aspects of their work. This shift positively impacts innovation and personal growth and helps our employees gain more meaning in their work.

3. Learning: AI also helps augment learning. AI-powered learning tools and platforms are transforming how people learn and gain new skills. People can now have personalized learning experiences that adapt to their individual needs and provide real-time feedback, making learning more effective and accessible.

4. Democratization of opportunity for growth: With the space moving so fast, everyone is on a level playing field.

We are all on the same exciting journey – with the same growth opportunities.

PHOTO COURTESY OF METLIFE

provided proof points of how we can continue using technology as an accelerator of our strategy.

As technology like AI continues to evolve and advance rapidly, we lean on the three pillars of our strategy – Focus, Simplify and Differentiate – as enablers to accelerate our AI journey. By harnessing the power of AI, we are better equipped to focus on what matters most, simplify how we work and differentiate how we care for our employees, who care for our customers.

The Human Element MetLife spends a considerable amount of time educating their workforce on the foundations of AI. According to Ms. Podlogar, the company believes understanding the ‘why’ prepares its workforce and allows them to be more open to embracing the technology.

We’re spending a considerable amount of time educating our workforce on the foundations of AI. We believe understanding the ‘why’ prepares our workforce and allows them to be more open to embracing the technology.

Technology is moving rapidly and there is a true interest in using it; yet overreliance on AI for decision-making without human oversight could have unintended consequences. In addition, if we become complacent in utilizing AI when it needs human oversight, there is a potential to lose an element of our human creativity and critical thinking. Therefore, as we roll out AI, we emphasize the importance of responsible AI. That is, being diligent in thinking through the end-to-end implications of the technology and the data powering the algorithms.

IQ: In a rapidly evolving landscape, how is MetLife preparing its workforce to adapt to the future of work?

Ms. Podlogar: As we prepare our workforce for the future, three concepts come to mind: business-driven, analytical, and people-centered.

At MetLife, we believe having a highly adaptable, energized workforce with the right skills for today’s and tomorrow’s business opportunities is critical. Therefore, we are doubling down on our talent priorities – building future-forward, business-aligned workforce planning strategies.

We are taking an objective and robust look at skills to ensure we have the right skills in place to drive our strategy forward. We scrape internal and external data across our platforms – including MyLearning, MyPath, and Coursera – to stay current on our skill strengths and opportunities. Our workplace planning has shifted to focus on skills and capability. This helps us meet the capability gaps of the enterprise and reskill our workforce for the future.

We know the future of work requires new and more agile ways of working and a workforce with the capabilities and experiences to help lead the way. By investing and caring for our people and beginning and reinforcing our skills journey early, we have set a strong foundation for how employees learn new skills and gain new experiences – ultimately preparing our people for what is to come.

IQ: As technologies continue to advance, what are your long-term goals and vision for the role of HR at MetLife?

Ms. Podlogar: We recognize that the future will be more demanding, and the challenges ahead will grow more profound.

To live our purpose in this context, we must bring out the potential of our organization by tapping into the beautiful potential of each employee. Each employee brings unique gifts and abilities to MetLife, and our role is to create an environment that fosters their development and unleashes their energy.

We are on the precipice of capturing human potential in a very different way–and our goal in HR is to open the aperture of opportunity and imagine all the ways we can apply the technology to accelerate our investment in our employees. This means thinking strategically and creatively about reimagining our processes and practices. It also means keeping a pulse on the mindsets and skillsets of our employees so that we can meet them where they are and tailor development to acquire future-forward skills such as systems and critical thinking, creativity and complex problem-solving.

BIO: Susan Podlogar CHRO, METLIFE Susan Podlogar is MetLife’s chief human resources officer and a member of the company’s Executive Leadership Team. She joined MetLife in July 2017 and oversees its global Human Resources strategies and practices with the goal of accessing, retaining and engaging a purpose-driven and energized workforce that creates value for MetLife’s customers and shareholders.

Ms. Podlogar was instrumental in establishing a Workforce of the Future Development Fund to prepare employees for future work needs. She also championed the signing of the Catalyst CEO Champions for Change Pledge and a partnership with the UN Women Global Innovation Coalition for Change to accelerate diversity, equity and inclusion.

Ms. Podlogar serves on MetLife Foundation’s Board of Directors, a philanthropic organization advancing financial wellness around the globe. She earned an MBA from the University of South Florida, summa cum laude, with concentrations in Finance and Management, and a Bachelor of Science degree from the University of Wisconsin-Parkside, also summa cum laude, with a double major in labor and industrial relations and business administration.

IQ: How is MetLife working to enhance employee experience, care and engagement?

Ms. Podlogar: Intentionality is critical.

We recognize that a successful employee experience doesn’t happen by accident.

It requires a deliberate and thoughtful approach to ensure our people can thrive professionally and personally. We use a culture of listening to stay alert to the evolving needs of our people and to make sure we’re putting programs, systems, and processes in place to meet those needs.

In our 2022 all-employee survey, we saw our highest response rate (85%) to date. We are significantly above benchmark on the question “I believe meaningful action will be taken as a result of this survey,” and our employees provide three times the number of comments versus benchmark. Our response rate and the robust feedback we receive demonstrate our employees’ trust’ in the feedback system and our culture of listening. We look forward to reviewing and acting on feedback f rom our just-fielded 2023 survey. insigniam.com/quarterly-magazine

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Ears Wide Open MetLife embraces a culture of listening to stay alert to the evolving needs of their people and to ensure programs, systems, and processes are in place to meet those needs.

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“We recognize that a successful employee experience doesn’t happen by accident.

It requires a deliberate and thoughtful approach to ensure our people can thrive professionally and personally.”

PHOTO COURTESY OF METLIFE

—Susan Podlogar CHRO, MetLife

We believe our future is predicated on growth – responsible growth to serve our customers and the growth of our employees. Therefore, investing in our people is not optional but a requirement.

Four ways we are dedicated to energizing and growing our employees include: 1. Let them experiment: We empower our people to test new ways of doing things to focus, simplify our work, and create differentiated solutions for our customers through our Experimentation Fund. The fund is available to all employees across the globe and enables our people to take action by reimagining the future of MetLife through experimentation.

2. Give them feedback and coaching: Our vision is to have every employee experience quality feedback and have access to a coach if they so choose. We are well on our way to achieving this vision. Our approach begins with regular 2+2+1 conversations, where employees and their managers discuss two things the employee is doing well, two things to focus on, and one thing the employee needs f rom their manager to be successful.

These conversations help us assess each individual’s strengths and passions and align their responsibilities and development opportunities accordingly.

3. Create opportunity: MyPath has helped us democratize creating opportunity by making it easy for employees to find new experiences that will help them grow and diversify their skill sets. What is most exciting about this new way of sourcing talent and finding development opportunities is that it is not a top-down-

driven approach but rather employeeled. Everyone is empowered to create or participate in a project. AI then helps elevate gig projects and roles that employees are passionate about based on the skills and experience they have or want to have.

4. Show you care: The most recent MetLife Employee Benefit Trends Study (EBTS) revealed that feeling ‘cared for’ at work is a key driver of employee holistic health and happiness. By embedding care into the work experience – f rom culture, purposeful work and flexibility to benefits, career development and compensation – we can build a workplace where employees feel valued and supported. This year, we created our first-ever Employee Care and Innovation Center of Excellence (COE) and appointed our first Chief Employee Experience and Employee Care Officer to oversee the design and curation of innovative, end-to-end solutions explicitly focused on caring for our employees.

Through our integrated focus and putting our employees at the center of everything we do, we fundamentally believe that we will continue to live our purpose of building confident futures for all we have the privilege to serve. IQ

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How Perrigo’s global vice president of women’s health, Frédérique Welgryn, brought true innovation to market via the first over-the-counter birth control approved by the FDA.

BY KATERLIN LE FOLVAVEZ

Perrigo’s OTC GAME

changer

SPEED TO VALUE:

A PLAYBOOK FOR

BOLD RESULTS

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“It takes guts to embark on a complex, long, and challenging journey. This courage, determination, and pioneering attitude are what the team refers to as “gutsiness.”

- FRÉDÉRIQUE WELGRYN insigniam.com/quarterly-magazine insigniam.com/quarterly-magazine

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No RX Required July 13, 2023, Opill became the first ever daily oral contraceptive pill available over-thecounter without a prescription, soon to be available online and in stores in early 2024 to people of all ages.

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f the desire to have an outsized impact is a key motivator for executives the world over, perhaps no one understands that feeling better than Frédérique Welgryn, global vice president for Women’s Health at Perrigo.

For close to a decade, Ms. Welgryn’s team of researchers, scientists and clinicians worked tirelessly on a groundbreaking campaign to develop the first over-the-counter (OTC) birth control contraceptive available to women in the U.S. As a result of the passion and dedication from her team, the FDA approved Opill on July 13, 2023, the first ever daily oral contraceptive pill to become available over-the-counter without a prescription, soon to be available online and in stores in early 2024 to people of all ages.

Insigniam Quarterly recently had the opportunity to speak with Ms. Welgryn— named by Fortune as one of the top 13 innovators shaping the future of health—about this monumental achievement, lessons learned, and how to overcome challenges when people’s lives literally depend on your success.

IQ: Congratulations on your success with Opill, which is truly an incredible achievement. What inspired Perrigo (and formerly, HRA Pharma) to develop Opill?

Ms. Welgryn: This is a groundbreaking achievement that was inspired by three key factors. First and foremost is the purpose of empowering women to have control over their sexual health journey.

This innovation aims to provide easy access to safe and effective solutions for contraception in the U.S. Second, the sobering facts in the U.S. revealed that nearly half of the

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approximately 6 million pregnancies are unintended—and this is a clear public health issue. One-third of women face difficulties in obtaining or renewing contraceptive prescriptions, while 15 million women use the least effective contraceptive methods despite their desire not to become pregnant. The process of scheduling appointments and taking time off work for consultations adds to the challenges women face.

The third vital component is the company and team’s determination and courage to address an issue that had previously gone unresolved. It takes guts to embark on a complex, long, and challenging journey for the greater good, embodying a spirit of entrepreneurship and risk-taking. This courage, determination, and pioneering attitude are what the team refers to as “gutsiness.”

IQ: From what I understand, it sounds like Perrigo’s researchers and scientists essentially had to reinvent the wheel in some respects to develop an overthe-counter solution that would be safe and effective. Can you describe the complexity this process entailed?

Ms. Welgryn: Although the ingredients used in prescription birth control were first approved in 1973, we had to engage in what we call a first-in-class prescription to OTC switch process, because we knew there was a massive need for more access to effective contraception in the U.S., and we wanted to tackle that challenge.

The process of making prescription drugs available over the counter involves several crucial steps. Firstly, we rewrote the patient leaflet to ensure it is easy for consumers to understand, removing any complex medical jargon. We then conduct extensive consumer studies to confirm

PHOTO COURTESY O F PERRIGO

that women can easily interpret the drug information, including how to take the medication and when to use it.

Next, we perform self-selection studies with hundreds of patients, including those who might have contraindications. They must decide, based solely on the label, whether they can use the product. Any incorrect decision could affect the FDA’s approval of the switch.

The most challenging step is probably the actual use trial, where we simulate real-life conditions for using an over-the-counter drug. Participants receive and use the product as they understand it, without external encouragement or incentives. They maintain an online diary to report their real-life usage.

This approach mimics real-world scenarios, unlike traditional clinical trials that often involve patient compliance enforcement.

We also conduct an in-depth safety review, gathering data from previous clinical trials, pharmacovigilance databases, and registries to ensure that health authorities are aware of any potential safety concerns.

Pharmacodynamic research was also conducted to bring modern data to our application about the window of intake.

Throughout the process, we maintained

close communication with the FDA, aligning with them on study endpoints, methodologies, and handling unexpected events. Ultimately, we presented a comprehensive benefit-risk analysis to demonstrate that the benefits of making the contraception available over the counter provides more access outweighed any potential risks.

All data was then presented to the FDA, precisely at a pivotal moment of the history of reproductive rights in the U.S. when the Roe v. Wade decision was overturned. Eight months later, this submission underwent a two-day advisory committee meeting with the FDA. This committee, consisting of experts from various fields, including contraception, statistics, clinical trials, and consumer representation, discussed and recommended approval for Opill to be sold over the counter without a prescription.

Our extensive preparations, including thousands of hours and numerous rehearsals, led to a unanimous vote of 17 to 0 in favor of approval by the panel. This was a momentous and emotional milestone in our journey to provide accessible contraception to women across the U.S. and widely covered by the media.

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“Garnering support from the leadership team [was] vital, as it defined the project’s priority within the company.”

—Frederique Welgryn Global VP, Women’s Health, Perrigo

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To achieve this, we had to enroll young people in our clinical trials for contraception, which was a challenging endeavor, especially during the COVID-19 pandemic.

Nevertheless, we believed that adolescents needed this product, and including them in the trials was essential to gain FDA approval without age restrictions.

Another aspect of our journey was our collaboration with advocacy groups. While not a challenge, it required mutual understanding.

By remaining open, transparent, and clear about our respective roles, we established a productive relationship. Over time, these groups came to respect our expertise, and we adjusted our efforts to align with their support. Their instrumental role in our success was the result of significant efforts to explain our work and foster their understanding and endorsement.

Lastly, the political landscape added a unique dimension to our journey. Our submission coincided with the overturning of Roe v. Wade by the Supreme Court in the U.S. This further amplified the media

PHOTO COURTESY OF PERRIGO

IQ: What were the most significant challenges you and your teams encountered while developing Opill—and how did you overcome them? Were there setbacks to contend with?

Ms. Welgryn: Throughout our journey, we faced numerous obstacles and encountered moments of difficulty, whether how to build this first-in-class switch program, or in our interactions with the FDA. We needed to prove ourselves at each step, which wasn’t always easy. During that process, we tried to understand the FDA’s expectations and maintain a collaborative and constructive approach. The FDA’s primary goal is to protect consumers, and we needed to bring convincing data to show that consumers could use Opill safely and effectively without the intervention of a heathcare professional. Even in challenging times, we remained steadfast in pursuing this objective.

An example of a unique challenge was our quest for a no-age restriction for Opill.

Hard Work Pays Off During their review process, the FDA’s Nonprescription Drugs Advisory Committee (NDAC) and the Obstetrics, Reproductive, and Urologic Drugs Advisory Committee (ORUDAC) voted unanimously 17 to 0, with no abstentions, making Opill available for OTC use.

attention and spotlight on our application. Yet, we were determined to base our application on science, data, and facts. We aimed to minimize the influence of politics as much as possible. We adhered to our strategy, maintained collaboration, and respected all stakeholders, even in frustrating situations.

While acknowledging the political risks, we remained steadfast in our focus on delivering data and demonstrating that facts and science can ultimately prevail.

IQ: As a leader, how do you manage global teams toward a common vision and shared goal? How do you keep others enrolled in that vision through challenging times?

Ms. Welgryn: Leading a project of this magnitude demands a careful balance between organizing and motivating teams, maintaining their connection, and making well-informed decisions. A shared purpose, unwavering passion, clear governance and a talented, high-performing team were the driving forces behind our project’s success.

However, even in such teams, it’s possible to lose momentum, succumb to distractions, or fall into minor conflicts. These setbacks can prove detrimental to the project’s progress. To mitigate such issues, one must remain attuned to the team’s dynamics and promptly address any emerging concerns, whether related to resources or competencies. Nipping these problems in the bud is essential to prevent them from escalating.

Staying connected goes beyond the team itself; it extends to understanding and navigating diverse personalities, egos, and cultures within the team. Frequent gatherings are necessary to ensure everyone remains aligned with the project’s overarching purpose, organizational goals, and governance. In certain instances, coaching may be required to facilitate a collective step back, realign everyone with the project’s significance, ensure cohesion, and boost team morale. Moreover, garnering support from the leadership team is vital, as it defines the project’s priority within the company. Maintaining unanimous backing from the company’s leadership ensures agility and preserves the freedom to make decisions without unnecessary bureaucratic hurdles.

Resource management is another critical

facet of the job. It involves safeguarding the essential resources vital for the project’s success. This task often involves adapting to changes in leadership, such as CEO transitions and company acquisitions, which I experienced during this journey with HRA and Perrigo.

My role extended to communicating the project’s importance to internal stakeholders, emphasizing its value for women and the company as a whole. Persuading CEOs and key executives to offer strong and unwavering support was essential. Fortunately, I found receptive leaders who recognized the unique opportunity and extended their steadfast commitment to our cause.

BIO: FREDERIQUE WELGRYN, GLOBAL

IQ: Personally speaking, what fueled your passion and helped you maintain your vision and dedication throughout this process?

Ms. Welgryn: Not often in your professional career do you get a chance to make a real difference, to impact society, to provide a bit of hope to millions of people.

This project gave me the unique opportunity to influence society and offer hope to millions of individuals, particularly considering the complex landscape of reproductive rights in the U.S. over the past year.

As a woman, there’s no greater aspiration than empowering fellow women to make choices about their reproductive lives. This endeavor not only impacts broader society, but it also holds deeply personal significance when you think about your family, your daughter, and the people around you. It becomes clear that this mission is of utmost importance, and the resolve not to falter in achieving it is unwavering. This project possesses a unique dimension with its societal and personal implications.

Furthermore, it prompted me to contemplate the broader landscape of women’s health. Numerous reports have highlighted the neglect of women’s health in terms of funding and projects in recent years. The desire was to make this initiative not only successful but also to serve as proof that doing the right thing can translate into a great business opportunity. The goal was to position women’s health as a subject of positive news headlines and demonstrate its potential as a thriving business domain. insigniam.com/quarterly-magazine

VP, WOMEN’S HEALTH, PERRIGO Frederique Welgryn is Global Vice President for the Women’s Health Division recently created in Perrigo in January 2023. In her role, Ms. Welgryn leads a team of Global experts in marketing, digital, ecommerce, innovative Rx to OTC switches, regulatory and scientific affairs—all passionate about championing the right of women and people to determine their own sexual health journey.

Ms. Welgryn has 25 years of experience in Pharma and OTC. She started her career in large pharma organizations such as Roche, AstraZeneca, and Sanofi, worked as a managing consultant for Cap Gemini Ernst and Young, and joined the executive leadership Team of HRA Pharma in 2010. In that role, she led the teams obtaining the centralized EU Rx-toOTC switch of emergency contraceptive ellaOne , the switch of oral contraceptive Hana in the UK, and the switch of daily birth control Opill in the U.S. Ms. Welgryn is a pharmacist by training with MS in business and management from Paris V University and HEC Paris.

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On a personal level, the journey has been profoundly fueled by the passion exhibited by the entire team, researchers, healthcare providers, advocates, and the women themselves. Engaging with various groups and consumers, listening to their experiences, and sharing their unwavering belief in the importance of providing women and people in the country with easier access and fewer barriers to reproductive health has been an inspiring and unifying force.

For leaders, it always commences with understanding the ‘why’—the purpose behind their endeavors. My motivation primarily stems from the collective purpose of the team, the consumers, and the individuals whose lives we are positively impacting.

Nonetheless, occasionally, leaders need to pause, reflect, and take a step back, even when deeply invested in a project. Even when you have a significant stake in the game, there are moments when taking a more distant perspective becomes necessary. This ability to step back, disengage momentarily from the team, and explore different perspectives has proven valuable in finding the right arguments and making critical decisions that resonate with all stakeholders.

“As a woman, there’s no greater aspiration than empowering fellow women to make choices about their reproductive lives.

This mission is of utmost importance, and the resolve to achieve it is unwavering.”

IQ: The theme of this issue of Insigniam Quarterly is ‘speed to value.’ As a leader, how do you balance the need to be decisive and move the organization forward quickly while still ensuring that the product you’re developing is safe and effective?

Ms. Welgryn: When you are lucky enough to work in healthcare, there’s one fundamental principle that stands paramount, and that’s never compromising on safety and efficacy.

This isn’t a matter of negotiation; it’s a matter of unwavering ethical responsibility. When considering innovation strategies, the welfare of patients is at the forefront, and there’s no room for compromise in this regard.

Maintaining this balance requires a clear and unwavering focus on our objectives.

It’s not just about articulating our goals but consistently translating these objectives into actions, ensuring that the team lives up to these commitments. Leadership, in its essence, involves creating an environment where the team’s full potential is nurtured. It’s also about being receptive to the importance of active

—Frederique Welgryn Global VP, Women’s Health, Perrigo

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listening and maintaining a willingness to challenge one’s own viewpoints and making clear and sometimes difficult decisions.

Seeking external perspectives and advice can be invaluable, particularly when personal emotions and involvement cloud judgment.

One experience I’m reminded of occurred when we were actively engaged with two Insigniam partners, and we organized a team meeting to delve into the concept of responsibility. We aimed to foster a collective understanding of the term’s genuine purpose.

The objective was to eliminate any inclination to shift blame onto external factors or individuals. This was a pivotal moment where the team grasped the depth of their individual responsibilities and how these translated into our collective ability to drive change. Understanding and embracing this concept reinvigorated the team’s motivation, propelling us to surmount obstacles and maintain an accelerated pace toward our objectives. It fundamentally altered how we managed the program and approached the concept of ‘speed to value,’ ensuring that each team member comprehended their individual responsibilities and the impact they could make collectively.

IQ: Were there instances during the development of Opill where you faced any self-doubts or failures? If so, how did you overcome those challenges to stay effective and focused on the task at hand?

Ms. Welgryn: Of course, there were so many setbacks and challenges along the way.

These moments of failure, as they are often labeled, carry an undeniable weight, and the typical narrative suggests the importance of learning from them. However, it’s worth noting that the introspective examination of past failures is not always a pleasant experience, and many individuals may shy away from it.

One particular instance comes to mind of a project that unequivocally met with failure. In this situation, our team made a deliberate choice to embark on a comprehensive review of the project, which was arduous and demanding, and we meticulously dissected everything that had gone awry. We acknowledged the existence of external factors beyond our control—an occasional occurrence in such undertakings.

However, a substantial portion of the issues could be directly attributed to our internal

PHOTO COURTESY O F PERRIGO

dynamics, including our leadership approach and the orchestration of our team.

As we navigated this introspective journey, we identified deficiencies within our team’s structure, which was a valuable lesson for our work on Opill. These shortcomings encompassed a lack of clarity in roles and responsibilities, leadership disparities, and instances where team members were disconnected from the overarching purpose.

Reflecting on this experience marked a pivotal moment, shaping my approach to the Opill journey. While perfection remained elusive, I was armed with insights drawn from past experiences, aiding us in our quest.

IQ: What advice would you share with other global executives leading large-scale projects with high levels of complexity?

Ms. Welgryn: Maintaining a sense of purpose is paramount in any significant undertaking. Ensuring that every individual involved comprehends the “why” behind their actions is vital. A strong organizational structure is equally critical—every team member should be acutely aware of their role and, notably, their

responsibilities. These responsibilities form the bedrock of a project.

Regardless of one’s position within the organization, staying connected to the team is of utmost importance. Even the most senior leaders should invest the time and effort to engage with their teams. In the realm of transformative and strategy-altering projects, proximity is essential. It allows for a visceral understanding of the ongoing developments, offering insights into the challenges team members encounter.

Lastly, adept stakeholder management is indispensable. This encompasses oversight from boards, CEOs, and various stakeholders who must remain closely aligned with the project’s objectives. It is a continuous endeavor to advocate for the project, create trust, and reaffirm its significance to the company and its broader impact on the world. This holistic approach ensures that the purpose remains in focus, the organization functions seamlessly, and the team operates harmoniously. IQ

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Customer Devotion For Ms. Welgryn, there is no greater aspiration than empowering fellow women to make choices about their reproductive lives. This endeavor, she says, not only impacts broader society, but it also holds deeply personal significance, “when you think about your family, your daughter, and the people around you.”

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The Next Cold War: China vs.

Your Bottom-Line SPEED TO VALUE:

A PLAYBOOK FOR

BOLD RESULTS

Axios reporter and author of Beijing Rules, Bethany Allen-Ebrahimian, on how China is leveraging capitalism to undermine Western democracies—and potentially your organization.

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BY JON BALL

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vast market and supply chain, Ms. AllenEbrahimian advises executive leaders and corporate governors to consider far-reaching implications beyond profit margins, which impact the very fabric of the societies in which they operate. An essential read for those responsible for shaping the direction of large, international enterprises, her reporting underscores the critical need for corporations to navigate this complex landscape with vigilance, ethics, and a deep understanding of the potential consequences of their decisions on the future of democracy and freedom.

Insigniam Quarterly recently had the opportunity to speak with Ms. AllenEbrahimian, who paints a vivid picture of the alarming compromises made by institutions that should uphold democratic values—and the potential loss of freedoms we often take for granted.

IQ: Can you provide a brief overview of the central thesis of your book, Beijing Rules—and what inspired you to write about China’s quest for global dominance through capitalism?

Ms. Allen-Ebrahimian: It is a concept that I call China’s authoritarian economic statecraft, which essentially means the way that the Chinese government has created some innovative ways of controlling access to its economy to shape the behavior of individuals, governments, companies, and

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ver the last twenty years, China’s growth—and its expanded influence on the global stage—has fundamentally changed how the world works. The seeds of China’s transformation were first sowed when The Middle Kingdom joined the World Trade Organization in 2001. In the two decades that followed, China’s “quiet rise” had less to do with manufacturing prowess and brokered trade agreements but rather a quest for global dominance by the Chinese Communist Party to co-opt what Western leaders have long considered their most powerful tool in the fight for liberal democracy— capitalism—to expand its illiberal influence worldwide.

In her new book, Beijing Rules, Axios’ China reporter Bethany Allen-Ebrahimian takes readers on a journey through the shadowy corridors of international diplomacy and into a murky world where Western institutions are being strong-armed into capitulating to Beijing. Her book, which The New York Times says “smartly combines analysis of China’s efforts to infiltrate Western institutions via authoritarian economic statecraft with a look at why the West is vulnerable to such influence campaigns,” offers an unsettling glimpse into a future where liberal democracy may find itself firmly under the thumb of authoritarian capitalism.

In an era where international businesses are increasingly intertwined with China’s

multilateral institutions to align them more with the Chinese Communist Party’s core interests.

I initially wrote the proposal for this book in 2019 after I had been reporting for several years about China’s political interference operations abroad. I wanted to build a more comprehensive framework for understanding how Beijing projects power beyond its borders.

What I found was that China’s economy was really where a lot of its power lies. Yes, it’s developing its military. Yes, it’s working on creating more of a diplomatic block, but still, and I think for several decades to come, the Chinese government’s primary form of power extension abroad is its economy.

IQ: In your book, you discuss how the Chinese Communist Party co-opted capitalism to expand its influence worldwide. Could you elaborate with a specific example?

Ms. Allen-Ebrahimian: One example f rom the beginning of my book—and also the beginning of the pandemic—is when the former Prime Minister of Australia, Scott Morrison called for an independent inquiry into the origins of the pandemic.

At the time, it was a core interest of the Chinese Communist Party to deny that the pandemic had even begun in China, and their government was trying to reshape that global narrative.

After Morrison issued his statements, the Chinese government slapped a medley of tariffs on Australian exports, including wine, coal, and barley. This was blatant authoritarianism. In this case, it was something that affected or related to the health and well-being of every single person in the world. Yet, these economic measures were pursued for authoritarian political goals.

IQ: One of the central ideas in your book is the divorce of political values from market structures. Could you explain how this separation has contributed to the rise of authoritarian capitalism and its impact on global economics?

Ms. Allen-Ebrahimian: What I’m referring to—which was mainly driven by the U.S. during the Reagan administration and adopted by other Western democracies

such as the UK—is the idea that free markets, deregulation, and lightly-regulated capitalism itself was somehow equal and equivalent to liberal democracy.

The assumption was that if a country has f ree markets and a capitalist-based economic system, it will inherently lead to a liberal democracy—and that one cannot exist without the other. If that is the case, you do not need policies that put democratic guardrails on economic behavior because as long as it is f ree, it is inherently liberal and democratic.

We now know that was not true. Still, in any case, that kind of divorce of political values and economic behavior created a void in international and domestic economic behaviors. The Chinese government has since come to fill that void with its authoritarian political values.

Moreover, the Chinese government has created a global economic regulation framework by attaching its authoritarian behaviors to economic behavior.

Let me be specific about what I mean by that: Every single CEO of every company in the world that has business interests in the Chinese market knows that if they comment, Tweet or exhibit certain behaviors that go against clear Chinese Communist Party red lines—their bottom line will suffer. This has been one of the most successful public relations campaigns in history. Everyone seems to acknowledge this, but there is no countervailing democratic framework to push back against it.

A key tenet of neoliberalism and free market economics is that the only job of a company is to create profit for their shareholders as long as they are doing so in line with legal regulations. A problem arises when an outside force, such as a foreign government, controls aspects of their profit.

If we, as a democratic society, want to protect our values, then we must change the way we regulate economic behavior so that companies are essentially protected by law from bad actors.

“

There was a fear among Western companies that if you are not in the Chinese market, you will be outcompeted.

In the end, many Western companies ended up getting hollowed out and those desired riches never materialized.

IQ: Can you discuss China’s impact on multinational corporations? Thus far, how have they navigated the complex landscape of doing business in China while attempting to adhere to democratic values? insigniam.com/quarterly-magazine

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“

Ms. Allen-Ebrahimian: It is very challenging for companies right now, and I think it is getting tougher and tougher.

What we are seeing from a national security perspective is that the U.S. and EU countries are pursuing policies that are more similar to an industrial policy aimed at strengthening competitiveness in certain strategic industries, which is aimed at preserving national security in the face of a threat from the Chinese state.

One example is the 2017 National Intelligence Law in China, which requires that individuals and entities in China hand over data and provide assistance to China’s intelligence agencies—and to keep that assistance a secret. This means that companies now must navigate an increasingly complicated regulatory environment across different economies, which means they face a greater degree of political risk no matter what they do.

This creates a scenario where the West— particularly the U.S. and its partners—are heading toward what could become an economic arms race with China in the sense both sides are trying to create ever sharper and more innovative economic tools to pursue their geopolitical interests and get more countries on their respective sides.

Meanwhile, companies are trying to navigate this without choosing between sides. Some companies have chosen between sides, such as LinkedIn, which left China after facing too many market issues and insufficient profit margins.

Every single CEO of every company that has business interests in the Chinese market knows that if they go against clear Chinese Communist Party red lines—their bottom line will suffer.

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IQ: What advice would you give to CEOs and corporate directors on how to strike a balance between pursuing lucrative opportunities in the Chinese market and ensuring that their companies are not unwittingly contributing to the spread of illiberal influence, as you’ve mentioned and describe in your book?

Ms. Allen-Ebrahimian: I think companies based in the West must clearly and f requently convey their concerns to government lawmakers and say, ‘We want to do the right thing. We are facing these pressures in the Chinese market, and |

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we want your help.’ Globally speaking, it is absolutely the case that the U.S., for instance, cannot do this on its own.

One thing that the Biden administration has been pursuing is working together with U.S. allies, partners, and likeminded countries to take collective action. Additionally, the EU has come a long way as well. Six years ago, it would have seemed unthinkable for the EU commissioner to say that we need to focus on a de-risking strategy with China, but we have seen France, Germany, the UK, and the The Netherlands realize that the economic playing field with China is not equal.

In fact, very recently, the EU launched an investigation into Chinese-made electric

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vehicles because of the prevalence of Chinese government subsidies, making it very difficult for EU automakers to compete. We also see a lot more discussion and joint statements on a multilateral level discussing the Chinese government’s economic coercion.

For example, at the G7 summit in Hiroshima, Japan, a few months ago, there was a joint statement about how to collectively pursue economic resilience.

And there was a follow-up statement a few weeks later about how to challenge economic coercion. Now, these statements did not list China by name, but that is obviously who it was talking about and laying out some potential joint steps. So, we are seeing movement in this direction.

IQ: What is the most significant blind spot for global enterprises right now in terms of China’s ability to exert its influence worldwide?

Ms. Allen-Ebrahimian: I think that there was this really widespread perception and belief for a long time among Western companies had to be in the Chinese market—it was do or die. The fear is that if you are not in the Chinese market, you will be out-competed by everyone else. There is also the idea that infinite riches are glittering across the Pacific if we can just get in. This has fostered a belief that no matter what you sacrifice to stay in the Chinese market, it will be worth it in the long term. That is one reason, for example, that the Chinese practice of forced technology transfers insigniam.com/quarterly-magazine

Red Carpet Rollout French president Emmanuel Macron and his wife Brigitte welcome Chinese president Xi Jinping and his wife Peng Liyuan for thier state visit in France at the Elysee Palace.

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IQ: If nothing changes, what does the next decade look like in terms of China’s increased influence over the West, its values, and the overall global economy?

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Ms. Allen-Ebrahimian: One thing it would mean is that it becomes harder and harder for the U.S. and multilateral sanctions to have any effect. In addition to the kind of ideological efforts that China is making to extend the legitimacy of authoritarian systems, it is also working very hard and explicitly to sanction-proof its economy and to help other economies as well. We have seen that very clearly after Russia invaded Ukraine, where the Chinese government has offered Chinese markets as a buffer or lifeline to the Russian economy to keep it afloat. And we are seeing many different kinds of efforts along this line.

For example, a growing number of international transactions are being conducted in Chinese Yuan.

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(wherein U.S. companies hand over certain aspects of their technology under the guise of a Chinese joint venture) that U.S. executives agreed to over and over again because they believed that they would still be able to get a lot of money out of it. But, in reality, even the U.S. trade representative’s office is talking about how detrimental this has been to U.S. companies. In the end, a lot of U.S. and Western enterprises end up getting ‘hollowed out,’ and those desired riches never really materialize.

Very Big Data Aerial photo of Apple’s sprawling new data center in the southwestern province of Guizhou, China. As China’s first national big data comprehensive pilot zone, Guizhou has been promoting the big-data industry as a backbone of its high-quality social and economic development.

The province has attracted heavyweight enterprises and world-famous research institutes seeking to establish big data centers and regional headquarters.

countries that have close ties to China because they have less incentive and will face less punishment for doing things like rounding up journalists, detaining political dissidents, shutting down free speech or extraditing people back to China for political reasons. And so you see people’s lives and freedoms around the world being slowly eroded.

That is not because the Chinese government has a short-term or even medium-term goal of replacing the U.S. as the world’s reserve currency, but rather as a kind of ad-hoc channel for evading sanctions—something that becomes easier to do to avoid traversing through the dollardominated international financial system that the U.S. sanctions regime can access.

So, as these trends continue, it will become more and more difficult for likeminded democracies to use their economies to affect political influence around the world, which China is pushing against. We can also expect that if this is what happens, we will see a continued degradation or erosion of human rights mechanisms in international institutions and also within

IQ: You mentioned the importance of a democratic market framework to protect the values held by free-market economies. How can leaders of large global enterprises play a hand in advocating for—or shaping—a framework that could ultimately protect their businesses?

Ms. Allen-Ebrahimian: Something that we often talk about, for example, is how big tech companies—specifically in the U.S.— are at the forefront of these trends.

Former Google CEO Eric Schmidt has advocated for Silicon Valley to talk to Washington and work with policymakers to share their concerns and their expertise about what they are seeing in their fields—which includes working with the U.S. government to essentially shape industrial policy.

Those policies could include how we can maintain an edge across emerging technologies and strengthen our companies. Maintaining a healthy economic inf rastructure in the U.S. could strengthen companies’ competition with China. The main goals here are economic prosperity and national security.

If the U.S. and Western companies work together with their respective governments in a way that promotes democratic values, then that strengthens the resolve behind democratic values on a global stage, especially since we are competing between democracy and authoritarianism. IQ

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BIO: Bethany AllenEbrahimian Bethany Allen-Ebrahimian is the China reporter at Axios, based in Taipei. She is the author of the weekly Axios China newsletter, and she covers China’s role in the world.

Prior to joining Axios, she served as the lead reporter for the International Consortium of Investigative Journalists’ China Cables project, a major leak of classified Chinese government documents revealing the inner workings of mass internment camps in Xinjiang. For her work on the China Cables project, she received the Robert D. G. Lewis Watchdog Award, the top prize awarded annually by the Society of Professional Journalists DC Dateline Awards, as well as the Investigative Journalism prize in the online category.

The China Cables project was also a finalist for the Batten Medal for Courage in Journalism.

Her book, Beijing Rules: How China Weaponized Its Economy to Confront the World, was published by Harper in August 2023.

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