• Why a CHRO Will Be the Next Must-Have Role in the Boardroom

     Coco Brown February 15, 2018

     Traditionally, the makeup of corporate boards has followed a clear set of parameters: a CIO for technology strategy, a CFO for financial strategy, a CEO to teach your own chief executive how to move the company forward.

    Today, many of the challenges companies face make a compelling case for adding another must-have role to the board – a chief human resources officer (CHRO), who can provide guidance around talent acquisition and culture, succession planning, compensation, board structure and evaluation, and more.

    Recent news has been full of stories about high-performing companies with cultures that enabled deceitful practices or toxic workplaces. Some of the CHRO areas of expertise, once considered “the soft stuff,” have become “the strategic stuff.” And with the very nature of work changing amid automation, visionary leaders see multiple reasons to attract top CHROs to their boards.

    Increasingly, corporations are realizing they must incorporate the CHRO function on their boards. Below are four reasons why:

    Succession planning

    The primary job of any board of directors is to make sure the right leadership team is in place to drive the business, and the CEO is at the heart of that goal. A strong leadership bench is one with a succession plan in place, but this is a delicate topic. There are disclosure issues around such material information, of course, and some CEOs need encouragement to leave when the time is right – whether the change is contentious or not. Similarly, boards are often nervous about the timing of such shifts, particularly when they perceive a lack of a strong successor.

    Managing through these issues doesn’t come naturally to many board members, but it does for experienced CHROs. Such executives can offer insights on planned transitions and how to navigate the process, from identifying internal candidates to talking about development plans to introducing these topics to chief executives. These processes are becoming more formal and documented, thanks to shareholder activism and regulatory requirements.

    Jan Becker, an Athena Alliance member who was most recently the head of people and facilities at Autodesk, brought on a couple of new CEOs during her 17 years at the company, and she worked with the board on succession planning. She’s overseen transitions driven by internal planning and those driven by activist shareholders, and notes that while the two scenarios are different, they have one thing in common.

    “Success depends on the quality of the decision-making discussion and the ability of the board of directors to hear each other and act as a real team,” Becker says. “When there is a CHRO on the board of directors, it makes it more likely the process and the conversations will be high quality.”

    Compensation strategy

    CHROs are experts in designing compensation and equity structures that incentivize, motivate and align the right behaviors and results. This is key for the CEO, as the role of the board is to manage the chief executive’s performance. However, it’s also critical for the overarching structure of the business. Often, the single most expensive line item in a company is its people. Optimizing spend to performance and outcome is essential for business longevity, and a CHRO is uniquely able to deliver insights in this area.

    Board structure performance and evaluation

    Strong self-governance is an increasingly recognized essential capability of the board of directors. CHROs are experts here, too, and can help the board operate effectively as a collective, evaluate individual and team performance to meet evolving needs, and ensure meetings are run well.

    People, culture and the future of work

    While many businesses have focused their board invitations on technical leaders who can guide them through technological transitions, companies need to be equally concerned about shifts in the workforce. Millennials now comprise more than one-third of employees, and they bring a different dynamic to the workplace. Meanwhile, rapid advances in robotics and artificial intelligence will transform many roles, while creating new ones.

    The nature of work is changing, and shareholders are right in their increasing emphasis on talent and culture. As Athena Alliance member, recent PayPal CHRO and McKinsey Advisor Marcia Morales-Jaffe puts it,

    “Often viewed as a threat, the rapid progress in automation really creates an opportunity for visionary leaders to embrace its enormous potential and develop action plans. Boards need to consider adding members fluent in innovation and its implications for the future of work. A CHRO with the right experience can be an invaluable asset to the board.”

    Beyond transitions in the nature of work, the challenges surrounding people and culture crop up throughout the lifecycle of a business. Whether the company in start-up, hyper-growth or acquisition mode, leaders and boards need to ensure they begin with the end in mind in terms of talent and organizational culture.

    Athena Alliance member Kathy Zwickert most recently served as the chief people officer at NetSuite, named in the top 10 of Bay Area Best Companies year after year. She says,

    “When the company is growing organically, the tone from the top must be an imperative to hire the best talent, who are also aligned with the values and culture of the company. And when the business grows through acquisition, retaining key talent and integrating them should be one of the most important considerations. If the people and the knowledge leave the target business, the value of the asset could be seriously diminished. A CHRO on the board not only understands this, but will also hold management accountable to ensure deals increase shareholder value in the long run.”

    The rise of the CHRO in the boardroom

    In an article for Harvard Business Review (HBR) titled, “People before strategy: a new role for the CHRO,” the authors called for CHROs to take their place beside CFOs in terms of strategic value to companies. The writers – including the global managing director at McKinsey, an advisor to CEOs and corporate boards, and an HBR author – note, “It is up to the CEO to elevate HR and to bridge any gaps that prevent the CHRO from becoming a strategic partner.”

    That same HBR article suggests that discussion of people should come before discussion of strategy. That is certainly happening – to a point. According to CEB and Gartner, 67 percent of U.S. public companies discussed talent matters in their 2017 Q1/Q2 earnings calls. And in the past six months, numerous companies in the communications, banking, manufacturing and other sectors have announced the appointments of senior human resources executives to their boards of directors.

    Corporate boards need to include experienced chief human resources officers. For those corporations that don’t yet have directors capable of furthering people-driven conversations, it’s past time for a change.

  • Travel Tips for Spring Break Trips

    Don’t broadcast your plans on social media

    Of the more than 2.5 million burglaries that happen each year, about two-thirds of them are home break-ins. If potential thieves have access to your spring break travel plans, they may target your home or your car when you’re gone. Forgo the social media posting until after you return. Consider setting your lights on timers and asking a trusted friend or neighbor to pick up your mail. And arrange for someone to check on your house while you’re gone.

    Notify card companies before you leave

    Make a quick call to both your bank and your credit card companies to alert them of your travel plans, particularly if you’re going out of the country. This helps ensure that neither puts a hold on your account because of perceived suspicious activity. You’ll also be able to check on potential fees for charges and withdrawals. You may even be able to notify your bank of your travel plans through its mobile app.

    Know your rental car insurance coverage details

    Contact your auto insurance agent to verify coverage based on your existing policy and your destination. If you’re traveling in the United States, you may not need additional coverage — and if you charge the rental, your credit card may offer rental car insurance. However, many domestic vehicle insurance policies do not cover cars rented abroad, so you may need additional in-country coverage.

    Have your insurance information handy

    Health insurance is similar to rental car insurance: If you’re traveling domestically you’re probably covered, but a call to your agent is a good way to double check what’s covered and what’s not. The latter is especially the case if you’re headed out of the country, where you may need a secondary health policy. In addition to carrying your health insurance card, download the State Farm mobile app so your finance and insurance info is always at the ready.

    Check the news for your destination

    If you’ve booked your trip with a travel agent, ask for any insider updates on weather or local events that may impact your plans. If you’ve booked the trip yourself, find the local newspaper online for information. And if you’re going out of the country, always check the U.S. Department of State Travel Warnings website and plan accordingly.

    Get your car road trip ready

    Visiting the next town over or the next state? Then your timely oil and fluid changes probably cover you. But for longer road trips, arrange for a once-over by your mechanic to check tire pressure and wear, brakes, fluid levels and conditions, and wiper blades. Stock your car with a car charger and portable jump-starter, as well as emergency supplies. And make playlists or check out e-books from the library so you have what you need to help pass the miles before you ever pull out of the driveway.

  • 6 Creative Ways to Save Money in March

    See ya, S.A.D. Well, helloooo there, savings. March is the perfect time to spring clean our closets—and our spending habits. So we’re tapping into new, painless ways to cut costs, from off-season steals to Spring Black Friday (it’s a thing). Here’s to planning for brighter days.

    online shopping

    TWENTY20

    SPRING CLEAN YOUR CLOSET, FOR CASH

    Peplum? What were you even thinking in 2012? Consider March the official start of spring-cleaning season and resell any unworn threads that are currently taking up space in your closet. Designer goods go to online consignment sites like TheRealReal (get $25 off your first purchase by signing up now) or eBay. Donate the rest to Goodwill—and deduct the current value on your taxes.

    typing at a keyboard

    TWENTY20

    SPEAKING OF TAXES…

    April 17 is coming up fast. Look into declaring your baby a dependent, writing off your charitable donations, your commuting expenses—even your spin class. It’s also worth investigating whether you qualify to file with free assistance from the IRS itself.

    RELATED: YOU COULD BE WRITING OFF YOUR SOULCYCLE CLASS (PLUS, 5 OTHER TAX DEDUCTIONS YOU CAN TAKE THIS YEAR)

    plants for gardening

    TWENTY20

    SAVE ON GARDENING SUPPLIES AND OUTDOOR FURNITURE

    Nurseries often put gardening tools, bulbs and even seedlings on sale at the start of the season. And big-box stores like Home Depot, Target, Walmart and Lowe’s have launched blowout Spring Black Friday sales to capitalize on customers’ fantasies about outdoor living. Just be sure to read plant labels carefully to make sure you live in the ideal climate to grow what you sow.

    cute french bulldog puppy sitting in a suitcase

    TWENTY20

    DITTO LUGGAGE

    Retailers usually make a big push to sell suitcases and satchels during the lull between holiday and spring break travel. Stores like Macy’s and JC Penney tend to slash prices 50 percent or more.

    closet full of disney costumes

    TWENTY20

    AND DISNEY MERCH!

    With Halloween and Christmas long gone and summer still far off, the Disney Store will draw in customers this month with deep cuts on costumes, swimwear, and toys,” reports Dealnews.com. “Look for daily coupons worth an additional 25% off.”

    drinking coffee in bed with a book

    TWENTY20

    TURN DOWN THE HEAT, PULL UP THE SHADES

    After a winter full of polar vortexes and bomb cyclones, many of us are in the habit of switching on every lamp in the house and cranking the thermostat way up—then watching our Con Ed bill rise with it. Longer, warmer days mean a cozy sweater and socks can compensate. Say it with us: Daylight Savings Time is March 11.

  • Digital Diploma Debuts at MIT

    Using Bitcoin’s blockchain technology, the Institute has become one of the first universities to issue recipient-owned virtual credentials.

     

    Elizabeth Durant | Alison Trachy | Office of Undergraduate Education 
    October 17, 2017

    In 1868, the fledgling Massachusetts Institute of Technology on Boylston Street awarded its first diplomas to 14 graduates. Since then, it has issued paper credentials to more than 207,000 undergraduate and graduate students in much the same way.

    But this summer, as part of a pilot program, a cohort of 111 graduates became the first to have the option to receive their diplomas on their smartphones via an app, in addition to the traditional format. The pilot resulted from a partnership between the MIT Registrar’s Office and Learning Machine, a Cambridge, Massachusetts-based software development company.

    The app is called Blockcerts Wallet, and it enables students to quickly and easily get a verifiable, tamper-proof version of their diploma that they can share with employers, schools, family, and friends. To ensure the security of the diploma, the pilot utilizes the same blockchain technology that powers the digital currency Bitcoin. It also integrates with MIT’s identity provider, Touchstone. And while digital credentials aren’t new — some schools and businesses are already touting their use of them — the MIT pilot is groundbreaking because it gives students autonomy over their own records.

    “From the beginning, one of our primary motivations has been to empower students to be the curators of their own credentials,” says Registrar and Senior Associate Dean Mary Callahan. “This pilot makes it possible for them to have ownership of their records and be able to share them in a secure way, with whomever they choose.”

    The Institute is among the first universities to make the leap, says Chris Jagers, co-founder and CEO of Learning Machine.

    “MIT has issued official records in a format that can exist even if the institution goes away, even if we go away as a vendor,” Jagers says. “People can own and use their official records, which is a fundamental shift.”

    Ideas collide

    When Callahan first read about the blockchain a few years ago, she was immediately intrigued. It seemed to provide permanence, convenience, and a level of security worthy of the student record, and she wondered: Could the Registrar’s Office use the technology to issue digital records, like a diploma? She decided to look into the possibility.

    As it turned out, MIT’s experimentation with blockchain technology was already well underway. In 2015, Philipp Schmidt, the director of learning innovation at the MIT Media Lab, had begun issuing internal, non-academic digital certificates to his team. Schmidt had realized that, despite the rise of decentralized, informal online learning opportunities, there was no digital way to track and manage these accomplishments. He says he became interested in finding a “more modular credentialing environment, where you would get some kind of recognition for lots of things you did throughout your life.”

    Soon, Learning Machine and Schmidt’s team at the Media Lab discovered they had a mutual interest in developing secure official records and began to collaborate. Throughout 2016, using Schmidt’s team’s prototypes, they developed an open-source toolkit called Blockcerts, which any developer or school can use to issue and verify blockchain-based educational credentials.

    When Callahan and Jagers connected last fall, it became clear that a partnership on a small pilot would be an ideal way to put Blockcerts to the test. “Mary was very up-to-date and had been introduced to concepts of cryptography, so she and her office were really excited to try out this technology,” says Jagers.

    Callahan says that, for the Registrar’s Office, “it was the perfect confluence: technology developed at MIT and a vendor who was aware of MIT’s culture as a community that values learning, at a time when a comprehensive record of lifelong learning was an evolving need.”

    Harnessing the power of the blockchain

    That technology draws on the Bitcoin blockchain, an open, global ledger that records transactions on a distributed database. Each transaction — known as a block — is encrypted, timestamped, and then added to the previous block on the chain, creating a timeline. A transaction cannot be modified once it is recorded, because any change in one block would require the alteration of all subsequent blocks, and because the information is distributed across a decentralized, worldwide network of computers.

    The software Learning Machine developed uses the Bitcoin blockchain, but it’s not the only blockchain around. Jagers says that recently there has been a proliferation of new types of blockchains, but that Bitcoin remains the gold standard for Learning Machine’s purposes because it prioritizes security over other qualities like speed, cost, or ease of use. “We believe it’s still the right choice for official records that need to last a lifetime and work anywhere in the world,” he says.

    Learning Machine also recognized early on that there was a missing link in the system, despite the potential of blockchain technology to make official, recipient-owned credentials a reality. In order for the information to be encrypted, the user also needs to obtain a public and private key — a set of unique numerical identifiers that represent them.

    “It’s a huge roadblock to tell students to go generate public-private key pairs for the Bitcoin blockchain,” Jagers says. “Nobody has any idea what you’re talking about.”

    Blockcerts Wallet solves that problem. After the student downloads the app, it generates the public-private key pair and sends the public key to MIT, where it is written into the digital record. Next, a one-way hash (a string of numbers that can be used for verification later) is added to the blockchain. The diploma information itself doesn’t go onto the blockchain, just the timestamped transaction indicating that MIT created the digital record. Finally, MIT emails the digital diploma (a JavaScript Object Notation file, or JSON) with the student’s public key inscribed into it. Because the mobile app on the student’s phone has their unique private key, the student can prove ownership of the diploma.

    The pilot begins

    This year, the Registrar’s Office contacted 85 master of finance and 26 master of science in media arts and sciences June graduates to let them know their secure digital diplomas were available via the Blockcerts Wallet app.

    For students, the benefits go beyond mere novelty. They can share their diplomas almost immediately with whomever they please, free of charge, without involving an intermediary. This is particularly important for students who need to prove to an employer or another university that they have an MIT diploma. And thanks to the blockchain, the third party can easily verify that the diploma is legitimate without having to contact the Registrar’s Office. Using a portal, employers or schools can paste a link or upload a student’s digital diploma file and receive a verification immediately. The portal essentially uses the blockchain as a notary, locating the transaction ID (which identifies when the digital record was added to the blockchain), verifying the keys, and confirming that nothing has been altered since the record was added.

    Callahan is pleased with the outcome of the pilot so far.

    “Our goals were to build our own knowledge and confidence, while utilizing student feedback,” she says. “We believe this adds great value to higher education.” In fact, Callahan has already received inquiries about the pilot from a number of universities around the world and from colleagues in the European Commission.

    The promise of transformative technology

    Both Callahan and Jagers agree that the blockchain technology has enormous potential.

    “We’ve just begun to scratch the surface of where this will lead. It’s really an exciting time,” Callahan says.

    One possible application is creating stackable certificates on the blockchain, which would enable an individual to link credentials from different institutions — for example, an undergraduate degree from one university, a graduate degree from another, and a professional certification. Jagers says he believes it will soon be possible to embed links or IDs of other pre-existing digital records into a new meta-record.

    “It’s not just about solving a problem,” he adds. “It really is transformative. And it could be as big as the web, because it affects every sector. It’s not just academic records. It’s being able to passively know that digital things are true. That creates a whole new reality across every sector.”

    The Registrar’s Office has expanded the digital diploma pilot to include a cohort of students who graduated in September. Over the long term, Callahan hopes to explore the possibility of offering digital records for other learning credentials MIT students may obtain from programs such as MIT Professional Education, the Kaufman Teaching Certificate Program, and the Bernard M. Gordon-MIT Engineering Leadership Program.

    Vice Chancellor Ian Waitz calls the new ability for MIT to issue robust and portable credentials “exciting, and necessary, to keep up with the demands of our on-campus students and learners around the world.”

    “It’s also gratifying to see how innovation happens everywhere here, especially in places where you might not expect it like our Registrar’s Office,” Waitz says. “I applaud their creative experimentation and see their approach as a model and source of inspiration for others to push academic boundaries.”

  • 5 Habits to Build Mental Toughness

    Being mentally tough, resilient, and willing to persevere when the chips are down are all qualities that will lead to your long-term success.

    People often like to believe they are stronger than they are, emotionally as well as physically. But the problem with this overestimation is that—after we take a tumble, whether at work or in our personal lives—we realize that we’re not as mentally tough as we thought we were.

    How, then, do we improve our mental strength? Through practice, it seems. Practice these five habits to build mental toughness and adopt them into your daily routine—your personal growth might astound you.

    1. Regard the past through a different lens

    When looking back at negative events in our lives, many of us fixate on how we would have acted differently, or circumstances we wanted to change. Looking at the past as a learning experience—and leaving it as that—is actually much more beneficial to us in the long run than constantly replaying what went wrong and beating ourselves up over it.

    2. Don’t dwell on the things you can’t control

    Why would you waste your time on situations that you cannot exert any power over? Spend less time hating, less time dwelling, less time reflecting on things already past and outcomes already finished. You can then devote your precious energy to other, more important things that will impact your work and life going forward.

    3. Be happy for others

    Even when a coworker scores a promotion you wanted, or a colleague gets that corner office that you had your eye on, make sure that you sincerely celebrate their joy with them. It’s good practice to be able to compartmentalize your own feelings of failure separately from their successes. After all, resentment can be the most crippling of emotions.

    4. Know that you are in control of your destiny

    Remember that it is you who ultimately determines your day-to-day outcomes and your faraway future. Do everything with intention, and remain confident that you have the ability and power to make your situation better if and when you decide to.

    5. Stay grateful

    Giving thanks is one of the things we do least as people—and definitely one of the things we need to do more. Realizing the good things we do have, instead of focusing on what we don’t, allows us to move forward productively from any negative situation. So stay strong, and carry on.