Good morning,
Every CFO has their own leadership style.
I can recall a conversation I had in April with Laurie Krebs, SVP and CFO at Red Hat, an IBM subsidiary software company, about how she approaches leadership. Krebs said what she learned in her career in public accounting and then many years in the finance industry setting is—”yes, you have to know numbers, but it’s a lot about people.” She added, “I do have a very empathetic leadership style.” It served her well when leading her team as the onset of the pandemic and beyond, she said.
Red Hat announced Krebs is retiring from the company this year. Her outlook on leadership was well appreciated. “Laurie’s compassionate leadership style pushed us all to engage customers and associates with a focus on well-being, resilience, and adaptability,” Red Hat said of Krebs in a Feb. 1 statement. “She prioritizes people above all and is a champion for mentoring and creating opportunities for her team, women and other underrepresented groups.”
Empathy is actually central to business as “employees and customers alike are unplugging from companies who refuse to care about them,” according to Arianna Huffington, founder and CEO of Thrive, and Tony Bates, chairman and CEO of Genesys and co-author of the book “Empathy in Action.” In a new Fortune opinion piece, To fight the Great Resignation, businesses need more empathy-driven innovation, Huffington and Bates explain that genuine interaction for innovation has become more vital than ever.
“What if empathy—a company creating an employee and customer experience by putting itself in its employee’s or customer’s shoes and relating to their unique experience—drove successful business outcomes more than simply focusing on efficiency,” they write. “The old ways are dying. Organizations that invest time and resources into driving short-term, company-focused efficiency and effectiveness without empathy will fail to survive in this new, incredibly interconnected era.”
A report released by EY this month on empathy and the Great Resignation pointed to the firm’s recent research. A survey of more than 1,000 American workers found 87% feel that mutual empathy between them and their leaders increases their efficiency. The same percentage (87%) said it boosts creativity. Meanwhile, 86% believe it enhances innovation, and 81% think it increases company revenue. Building an empathetic culture should be “a key and immediate priority for any organization looking to recruit and retain top talent,” according to the report.
Huffington and Bates argue that we have a “once-in-a-generation opportunity to change how businesses operate.” A focus on employee well-being is also a critical part of empathy, they noted.
“Companies need more human-focused technology with empathy as the purpose—not efficiency,” Huffington and Bates write. “We’re calling on businesses to rebuild their relationships with their employees and create a workplace that puts employee well-being front and center.”
It may also take leaders like Krebs who are willing to embrace an empathetic style proudly.
See you tomorrow.
Sheryl Estrada
sheryl.estrada@fortune.com
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Big deal
Workhuman’s research report, Two years into COVID: The state of human connection at work, is based on a survey of 2,268 full-time workers across the U.S., U.K., Canada, and Ireland. A key finding is a trend of "boomerang" employees, according to the report. These are former employees who left for a new opportunity, but are willing to return and bring what they've learned. Compensation tops of the list of reasons why an employee would return to a former company.
Going deeper
Why private equity sees life and annuities as an enticing form of permanent capital, a report by McKinsey & Company, takes a look at the requirements for PE firms that want to enter the market. The report examines ways that PE owners can create value that may be overlooked. It also explores the implications for life insurers.
Leaderboard
Lorraine Burgess was named CFO at BBC Studios, Variety reported. Producer-distributor BBC Studios is U.K. broadcaster BBC’s largest commercial subsidiary. Burgess has served as interim CFO since July 2021. Prior to joining BBC Studios, she was managing director of Idris Elba’s Green Door Pictures. Burgess previously led digital operations at Endemol Shine Group. She had several roles at Ingenious Media and Universal Pictures.
Rod Bolger was named CFO at Celsius, a global cryptocurrency lending and borrowing platform. Most recently, Bolger served as CFO at RBC, Canada's largest bank. He brings over three decades experience from companies including Bank of America, Citigroup, and PwC. With extensive experience in M&A and IPO transactions, Bolger will work on the further expansion of Celsius.
Overheard
"We feel like we have a very good handle on our inflationary issues. We’re 70% blocked on some of the things that we care about, like steel, aluminum, copper."
—Carrier Global CEO David Gitlin on how the home appliance company is navigating inflation, as told to CNBC.
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