Unlock the Power of Stakeholder Engagement for CEOs
Expanded: Embrace your role as the bridge to the outside
In recent years, CEOs worldwide have found themselves on the public stage, expected to have views on various issues. Herbert Hainer, former CEO of Adidas, realized the importance of being on the front line with external stakeholders. To make the most of this platform, CEOs need thorough preparation, reflecting on their leadership journeys and understanding their organizations' unique positions. For example, companies where CEOs listen to frontline employees are 80% more likely to implement better working methods. Innovative leaders also look outside their organizations to understand the competitive landscape and learn from successful communication strategies.Distinctive: Become the storyteller in chief of a singular, proprietary narrative
The CEO's role is unique in integrating perspectives into a distinctive narrative. Start with the Who and Why - communicate who the CEO is, their leadership journey, and what they aspire to achieve. Personalizing messages enhances their power. For instance, an automotive company CEO shares a story about a car crash to emphasize safety. The Why refers to the organization's purpose and contribution. High-performing companies are twice as likely to define their purpose to resonate with employees. By understanding stakeholder mindsets, CEOs can build more enduring relationships. We often find that CEOs underestimate the importance of the Who and the Why and need to focus on self-reflection.Growth oriented: Empower a team of ambassadors to articulate the company’s story
While some messages come from the top, CEOs should create a team of leaders to carry and cascade the core narrative. Richard Davis, former CEO of US Bancorp, believes in having equal voices and storytellers on the management team. Communication skills need to be cultivated; organizations that train executives to engage with external stakeholders are more likely to succeed. By embedding communication as an institutional capability, CEOs can speak through their teams. For example, at a technology company, the COO focuses on the What and the When, while the founder and CEO concentrates on the Who and the Why. Investors, customers, and suppliers can also amplify the company's story.Engaged: Maintain a consistent communication drumbeat, even during crises
CEOs spend 30% of their time with external stakeholders and need to prioritize. A best practice is to have a yearlong view of stakeholder management tasks. When deciding which stakeholders to engage with, strategic questions should be considered. Strong relationships are crucial during crises, and organizations that emphasize social responsibility are more likely to respond effectively. However, taking a public stand comes with risks. Effective CEOs know that galvanizing stakeholders around the organization's mission is essential, even if it seems less urgent. During crises, leaders need to show both strong and empathetic leadership.In the five years since the Business Roundtable's redefinition, stakeholders' voices have become more influential. Organizations and CEOs have the opportunity to deliver value to all stakeholders. An effective communication platform shifts the CEO's posture and approach, enabling them to cocreate a more impactful future with their stakeholders.Uncover the Secrets of Insurance's Growth with AXIS's Leader
Understanding the Insurance Industry's Evolution
Insurance, one of the oldest industries, has come a long way since its inception. It has expanded to include new niche offerings, constantly adapting to the changing needs of society. Vince Tizzio, with his extensive experience, has witnessed firsthand how innovation has shaped the industry. For example, in product innovation, we see advancements in auto insurance, environmental insurance, errors and omissions insurance, and cyber insurance. These innovations not only help companies transfer risk more effectively but also enable them to be more profitable and consistent in pricing. However, there is still a long way to go in fully realizing the potential of innovation in the insurance sector.Throughout his career, Tizzio has seen how different approaches to innovation can lead to different solutions. This ability to think outside the box and embrace new ideas has been crucial in his leadership at AXIS. The company is constantly striving to deliver premium growth for small and mid-size specialty businesses, expanding its offerings and establishing itself as a top player in the field.
The Future of the Insurance Industry: Exciting Opportunities Ahead
The insurance industry is currently experiencing multiple fusions. Third-party capital providers are showing interest, seeking returns that are historically better. Insurance companies are also adopting data and analytics, AI, and digitization to convey their businesses more effectively. Stakeholders are demanding consistent returns that justify their investment.For AXIS, serving customers' needs through the interplay of globalization and customization offers exciting opportunities. The company is leveraging these trends to reposition its brand and underwriting craft, providing more consistent financial results and meeting the evolving needs of clients. This transformation journey is evident in the company's past 15 months and is set to continue driving differentiation in the future.
Helping Companies Improve Resilience
AXIS focuses on two key aspects of helping companies improve resilience. Firstly, building trust and confidence with customers is essential. When customers notify AXIS of a claim, they need to know that the company has the resilience and capability to meet their needs. Secondly, within the operating organization, resilience is about adapting to change and considering different perspectives to solve problems. This leads to the development of consistent products supported by a strong balance sheet and innovative product propositions.By emphasizing these aspects, AXIS aims to provide value to its policyholders, intermediaries, and shareholders. It understands that resilience is not just about weathering storms but also about seizing opportunities and growing in a dynamic market.
The Role of Technology in Insurance Transformations
Technology is fundamental to a midcap specialist like AXIS. The specialized offerings cover unique exposures to loss, and technology plays a crucial role in cost reduction and conveying information effectively. For example, in the transactional business LMM, customers expect speed, simplified offerings, and consistent pricing. Technology enables these expectations to be met.In more complicated businesses, technology facilitates the fusion of data insights and analytics, informing pricing and risk assessment. It is at the heart of AXIS's operating model, driving dynamic change and enabling the company to stay ahead in a technology-driven world.
AI's Transformative Potential in Specialty Insurance
AXIS's chairman, Marty Becker, recognizes the importance of AI in capturing benefits. The company approaches AI in three ways. Firstly, it uses AI to inform risk selection and gain insights before pricing business for long-term relationships. Secondly, AI helps optimize the cost structure and responsiveness. Thirdly, it enables the identification of new and emerging exposures that the current product portfolio may not address.By leveraging AI, AXIS is able to enhance its risk assessment capabilities and stay ahead of emerging risks. This approach shows the company's commitment to innovation and its ability to adapt to the changing insurance landscape.
Vince Tizzio's Leadership Style
Tizzio's leadership style is characterized by big emotional intelligence. He has learned from mentors and integrated their qualities into his own style. He is also action-oriented and performance-oriented, which is suitable for a specialist insurance company undergoing transformation. By listening to customers, stakeholders, and employees and being responsive, he is able to meet the challenges of leading a growing organization.His consistent presence and ability to show up in difficult times have been crucial in building trust and driving the company forward. Tizzio's leadership serves as an inspiration for other leaders in the industry.
Advice for Other Leaders
Tizzio's advice to other leaders is simple yet powerful. Surround yourself with trusted people who care about you. Have a clear plan and know where you want to take your company. Be a good listener and responsive to the needs of your customers, stakeholders, and employees. Finally, show up consistently to face the challenges that come your way.By following these principles, leaders can build strong organizations and make a positive impact in the industry. Tizzio's own journey serves as a testament to the importance of these values in leadership.
Unlock the Power of Gen AI in the Chemical Sector
Chemicals and AI: An Overview
The chemical industry is crucial in the global economy, facing market forces that demand new thinking. "Gen AI" processes diverse data to aid synthesis and content generation. It complements traditional AI and has the potential to transform the industry, reducing entry barriers and reshaping competitive landscapes. However, risks such as accuracy and security must be accounted for.Amazon's significant investment in technology contrasts with the relatively lower spending of the US chemical industry. The industry's slow innovation is due to its asset-heavy nature and regulatory considerations. But gen AI offers a leap forward, making insights and creative processes more accessible.
The AI Opportunity in Chemicals
Innovation in the chemical industry has been sluggish. Gen AI presents a substantial opportunity by enabling new ways of generating hypotheses and enhancing operations. It helps companies, especially those with below-average performance, and is reshaping competitive landscapes. The 11 use cases across three chemical domains have significant near-term impact potential.For example, in commercial functions, gen AI can reduce time for new applications, increase new customer growth, and enhance strategic account management. In R&D, it accelerates molecule discovery and formulation, and in operations, it improves maintenance and productivity.
Commercial
The chemical commercial cycle ranges from customer identification to repeat purchases. Gen AI has various use cases, such as new applications discovery, new customer acquisition, and strategic account management.For new applications, gen AI analyzes vast data to identify potential markets and reduce time. In customer acquisition, it streamlines the process and refines customer profiles. In strategic account management, it provides broader business context and specific opportunities.
Research and Development
Today, R&D in chemicals takes a long time and requires significant funding. Gen AI tools promise to accelerate the innovation cycle through faster discovery and formulation.Foundation models in R&D can be data-efficient and optimize research. For example, a chemical company used gen AI to identify new coating molecules and reduce customization costs. Gen AI also enhances knowledge extraction and collaboration among scientists.
Operations
Chemical manufacturing processes generate vast data that are difficult to analyze. AI-powered models can improve maintenance, productivity, and supply chain optimization.For predictive and efficient maintenance, gen AI combines internal and public data to create FMEA and identify anomalies. In operational productivity and throughput, real-time process optimizers and control room copilots enhance decision-making. In supply chain optimization, AI generates insights and automates processes.
Harnessing the Potential: How to Capture Value from AI in Chemicals
Many chemical companies are in the early stages of their AI journeys. They need to act quickly, plan with key players, and transform across multiple dimensions.This includes developing a strategic road map, managing talent, optimizing the operational model, building technology infrastructure, establishing a data foundation, and implementing change management. The companies that benefit most will be those with data and those leveraging AI to close the gap.
The chemical industry plays a critical role in various products and processes. The alignment of digitalization, technical capabilities, and scientific expertise with AI application will lead to significant value creation. Those that act quickly will gain an edge in the near and long term.