Leadership BHEF Winter 2019 Member Meeting Advance Materials

® Creating Solutions. Inspiring Action. WINTER MEMBER MEETING The Next Frontier: Foundational Skills for the Digital Economy February 27-28, 2019 InterContinental Washington DC – The Wharf © BHEF 2019 2 6:00 p.m. 7:00 p.m. Chair’s Reception Seaport I & II, 2nd Floor Dinner Honoring BHEF Past Chair Wes Bush Seaport I & II, 2nd Floor agenda February 27, 2019 InterContinental Washington DC – The Wharf Washington, DC February 28, 2019 InterContinental Washington DC – The Wharf Washington, DC 7:30 a.m. 8:50 a.m. 9:00 a.m. 9:30 a.m. Leadership Roundtable Breakfast Seaport II, 2nd Floor Welcome Algonquian, 12th Floor Welcoming Remarks: Ryan Oakes, managing director, North America Public Sector, Accenture Keynote Tim Kaine, United States senator, Commonwealth of Virginia Algonquian, 12th Floor Public-Private Partnerships: Accelerating Education, Skills Development and Diversity in STEM Algonquian, 12th Floor Keynote Remarks: France Córdova, director, National Science Foundation Moderator: Steve Clemons, editor-at-large, The Atlantic Panelists: •France Córdova, director, National Science Foundation •Mark Cousino, director of Learning Strategy, Design, and Technology, The Boeing Company •Nariman Farvardin, president, Stevens Institute of Technology •Tim Sands, president, Virginia Polytechnic Institute and State University © BHEF 2019 3 agenda February 28, 2019 InterContinental Washington DC – The Wharf Washington, DC 10:30 a.m. 10:45 a.m. 11:50 a.m. 12:50 p.m. 1:00 p.m. 2:15 p.m. Break Learning Session Automation and AI: The Implications for the Future of Work and Higher Education Algonquian, 12th Floor Moderator: Steve Clemons, editor-at-large, The Atlantic Panelists: • Joseph Aoun, president, Northeastern University • Michael Bazigos, managing director, Accenture Strategy, Accenture • Raghu Machiraju, professor and interim executive director, Translational Data Analytics Institute, The Ohio State University Automation and AI: Impact on the Financial Services Sector Algonquian, 12th Floor Moderator: Steve Clemons, editor-at-large, The Atlantic Panelists: • Mike Fenlon, chief people officer, PwC • Miguel Gamiño, executive vice president, Global Cities, Mastercard • Cameron Wadley, senior vice president and chief operating officer, Client Facing Platforms Technology, Bank of America • Ben Zimmerman, head of Alternative Data, Global Data Department, Bloomberg L.P. Closing Remarks Algonquian, 12th Floor Lunch Pearl, 12th Floor Adjourn 4 W CEO WELCOME 2019 © BHEF 2019 elcome to the Business-Higher Education Forum’s Winter 2019 Member Meeting. Our time will focus on Foundational Skills for the Digital Economy, as BHEF continues to execute its board- adopted strategic vision. As digital knowledge and skills become essential to everyday operations, organizations of all types are racing to refine their talent models to keep up with skill demand. BHEF’s success in creating regional talent ecosystems in cybersecurity and data science has provided a wealth of knowledge and blueprints for companies to succeed in the emerging digital talent landscape. After our reception and dinner on Wednesday, where we will welcome new members, reconnect, and honor Past Chair Wes Bush, we will begin Thursday with a keynote from U.S. Senator Tim Kaine (D-VA). Senator Kaine will discuss the significance of the digital economy to the Washington, DC metropolitan area and reflect on the interplay of Amazon’s HQ2 with future growth. Our second keynote will be from National Science Foundation (NSF) Director and BHEF alumnae France Córdova. She will speak to NSF’s $21 million partnership with BHEF member Boeing to increase diversity in STEM fields and accelerate training for both new hires and incumbent employees. Atlantic editor-at-large Steve Clemons, who facilitated our successful AtlanticLIVE event, will facilitate the day’s sessions, beginning with a discussion focused on the new and exciting opportunities stemming from not only the Boeing partnership, but also other public-private partnerships. BHEF continues to build upon the groundbreaking market intelligence—underwritten by BHEF member Anita Zucker—that documents how the digital economy is transforming the skills professionals need in their daily work managing operations and programs in business, government, and nonprofits. Our learning session will examine the complementary themes from the book Human+Machine, authored by Accenture’s Paul Daugherty and Jim Wilson, and Robot-Proof, authored by BHEF Board Member and Northeastern President Joseph Aoun. We will explore how “fusion skills,” the intrinsically human “soft skills” that will persist in the AI-dominant workplace, dovetail with how higher education prepares students to succeed in this new business era. Our final session will build upon these insights with what I am sure will be a lively discussion on the implications of AI—and its breakneck speed for adaptation—within one of BHEF’s most robust member sectors: financial services. We will hear from leaders at PwC, Bloomberg, Bank of America, and MasterCard about this accelerated pace, what it means for talent development and retention strategies, and the potential for unique partnerships. The subsequent pages provide further background on each session. My staff and I hope you will dive in, discuss, and depart more engaged and positioned to participate in activities that reflect BHEF’s value proposition: action-oriented peer relationships and insights, and transformative talent pathways that strengthen distinctive talent solutions. Regards, Brian K. Fitzgerald, Ed.D. CEO, Business-Higher Education Forum 5 BHEF WINTER 2019 MEMBER MEETING MEETING OVERVIEW The Next Frontier: Foundational Skills for the Digital Economy The exponential growth of data and powerful computing and analytics tools have spawned the digital economy in which all companies adopt digital business models and compete with tech companies for scarce talent. Companies that transform their digital talent acquisition, retention, and development strategies will enjoy a significant advantage. Leading companies in industrial and aerospace manufacturing as well as the financial services sector have adopted this strategy. In order for this transformation to occur, however, the gap between supply and demand for these skills must be overcome by increasing the number of new college graduates and incumbent employees with these digital skills. Over the past five years, the Business-Higher Education Forum (BHEF) has commissioned research to uncover job market trends and provide its members and their peers the insights and strategies needed to respond to the exponential growth in demand for digital talent and skills. In 2017, IBM and BHEF released The Quant Crunch, which documented the propagation of data science and analytics skills from a relatively small number of data scientists to large numbers of analytics-enabled, data-driven decision makers and functional analysts. Subsequently, BHEF and PwC released a 2018 thought leadership report, Investing in America’s Data Science and Analytics Ta l e n t, which proposed an action agenda for bringing the supply of digital skills into balance with demand for those skills in the job market. Job market analyses in other digital fields, including cybersecurity and artificial intelligence (AI), uncovered similar patterns of skills propagating from the expert to the enabled professional across a broad range of sectors and organizational functions. With the generous support of BHEF member Anita Zucker, BHEF has continued its market intelligence research by commissioning Burning Glass Technologies to further examine the job market of the digital economy. This report, The New Foundational Skills of the Digital Economy, is the first time this universe of skills has been analyzed in order to better understand the most valuable combinations of skills—foundational digital building blocks, 21st-century workplace competencies (also called “soft skills”), and business process skills—for the digital economy. This analysis also provides an opportunity to understand these skill sets by function within organizations and map these skills into academic and training programs to prepare new graduates and re-skill incumbent employees for high-performing digital environments. Exhibit 1 presents a profile of the Blended Digital Professional and the interplay of disciplinary or domain knowledge, ® © BHEF 2019 6 foundational digital skill clusters, business process knowledge, and 21st-century workplace competencies. Exhibit 1 This member meeting will explore this new frontier and its new challenges and opportunities. The opening session will focus on the policy context of the digital economy. Senator Tim Kaine will discuss the importance of the digital economy to the greater DC-Maryland-Virginia region and, in particular, the importance of Amazon’s HQ2 to regional economic growth. MEETING OVERVIEW 2019 © 2018 BHEF •AI/Data Science and Analytics •Information Security •Big Data/Data Management •Software Development •Programming •Business Processes •Decision making •Operations Management •Project Management •Visualization •Biology •Cognitive Science •Economics •Physics •Sociology •Cross-cultural Perspective •Analytical Reasoning •Critical Thinking •Communications Workplace Skills Domain Knowledge Digital Skills Business Skills The Blended Digital Professional © BHEF 2019 7 BHEF WINTER 2019 MEMBER MEETING SESSION OVERVIEWS Public-Private Partnerships: Accelerating Education, Skills Development, and Diversity in STEM According to a 2018 BHEF-Burning Glass Technologies research study on trends shaping the future workforce, 1 highly structured STEM fields like engineering and advanced manufacturing have been affected over the past decade by dynamic shifts in the labor market, such as the rise of hybrid jobs and increasing demand for digital skills. These shifts contribute to the overall shortage of STEM-capable workers, but they also provide new opportunities to create pathways to high-skill jobs. Public-private partnerships serve as a powerful tool to address these shifts and meet the demand for diverse STEM talent in the 21st-century digital economy. At the Reskilling America’s Workforce workshop, co-hosted by BHEF and the National Science Foundation (NSF) in September 2018, 2 the Boeing Company (Boeing) announced a new investment of $11 million, as part of a $21-million partnership with NSF, to accelerate training in key skill areas and increase diversity in STEM fields. 3 To explore the impact of these kinds of partnerships and investments, NSF Director France Córdova will provide keynote remarks followed by a panel discussion facilitated by Steve Clemons, editor- at-large at The Atlantic, among representatives from Boeing, Stevens Institute of Technology, and Virginia Polytechnic Institute and State University on the implications for continuous education and training for job entry and reskilling in the digital economy. Automation and AI: Implications for the Future of Work and Higher Education The recently published book Human+Machine 4 brings a more nuanced and balanced view of the impact of AI on the nature of work and, particularly, on jobs in the future. This learning session will focus on these nuances and explore the implications of new research on the impact of AI. Human+Machine is the result of research with 1,500 organizations uncovering how companies are using AI to accelerate innovation, improve core business processes, and increase productivity. The authors refute the dystopian view of AI as job eliminator and suggest a different future for work. The authors contend that AI enables humans and machines through hybrid activities, which not only complement machines but also augment them in three very powerful ways, which they characterize as the “missing middle.” 1 Burning Glass Technologies and BHEF. (2018). Four Trends Shaping the Future of the Workforce: Focus on Engineering and Advanced Manufacturing. Retrieved from https://www.burning-glass.com/blog/engineering-four-trends-shaping-workforce/ 2 Business-Higher Education Forum. (2019). Reskilling America’s Workforce Workshop. Retrieved from http://www.bhef.com/ news-events/events/reskilling-americas-workforce-workshop 3 National Science Foundation. (2018). Boeing, National Science Foundation announce partnership for workforce development and diversity in STEM [Press release]. Retrieved from https://www.nsf.gov/news/news_summ.jsp?cntn_id=296700 4 Human+Machine: Reimagining Work in the Age of AI. Daugherty, P., and Wilson, H.J., Harvard Business Review Press, 2018. ® © BHEF 2019 8 OPENING PROGRAM OVERVIEW 2019 • Amplification, using “generative design software to expand the design space” beyond the imaginable • Interaction, employing “advanced voice-driven natural language processing to facilitate interactions between people” • Embodiment, allowing human and machine to “engage in physically collaborative work” In support of these augmentation dynamics, the authors identify new “Fusion Skills” that guide managers and workers in “thriving in the missing middle” skills that do not require expertise in AI, but rather harness essential human qualities to adapt fusion skills to the business environment. The skills range from creating a culture in which the time gained from increased efficiency is dedicated to interpersonal interactions, for example. The articulation of these fusion skills will cause many educators and business managers to address the new, inherently human “soft skills” for the AI age. Automation and AI: Impact on the Financial Services Sector The confluence of digital business models, automation, and the adoption of AI has emerged as a potent, leading-edge business strategy. Analyses conducted by the McKinsey Global Institute (MGI) find that AI adoption is occurring at a faster rate among companies with high degrees of digitization, as measured by the MGI Digitization Index. The technology and financial services sectors have the highest digitization indexes and are among the leading adopters of AI. 5 These and other sectors leading in AI adoption also intend to grow investments in digital models and AI at the fastest rate. Finally, the financial services and professional services sectors are experiencing the greatest increase of profit margins as a result of AI. 6 These findings have clear implication for talent strategies in the financial services sector—both for new hires and for reskilling incumbent employees, which will require different but complementary strategies and partnerships. The final session will explore digital trends in the financial services sector and discuss digital talent acquisition and development strategies. 5 McKinsey Global Institute. (2016). McKinsey Global Institute AI Adoption and Use Survey. 6 McKinsey Global Institute. (2017). Artificial Intelligence: The Next Digital Frontier? Retrieved from https://www.mckinsey. com/~/media/mckinsey/industries/advanced%20electronics/our%20insights/how%20artificial%20intelligence%20can%20de- liver%20real%20value%20to%20companies/mgi-artificial-intelligence-discussion-paper.ashx © BHEF 2019 9 BHEF WINTER 2019 MEMBER MEETING ® NEW MEMBER BIOGRAPHIES Brandon Busteed, president of Kaplan University Partners, leads Kaplan’s work serving U.S. colleges and universities, leveraging assets from across the company’s many educational offerings, which include: international student recruiting, pathway programs, student residence development, online program enablement, university hosting, professional education, test preparation, learning platforms, assessment capabilities, and supplemental course content. His career spans a wide range of important work in education as an entrepreneur, researcher, speaker, writer, and university trustee. His mission is to help U.S. higher education adapt, grow and thrive. Prior to Kaplan, Busteed was most recently global head of public sector at Gallup – serving higher education, government and foundations. While at Gallup, he also served for six years as executive director of education and workforce development. In that role, Busteed led dozens of ground-breaking Gallup studies including the Gallup- Purdue Index (a nationally representative survey of college graduates looking at their long-term outcomes in work and life), the Strada-Gallup Education Consumer Survey (the largest representative study of U.S. adults and education consumers studying their education pathways and experiences), the Gallup-Google Computer Science in K-12 Education Study, and the Gallup-Knight Foundation Trust in Media Study. He remains a Gallup senior advisor. Brandon has founded two companies and one nonprofit organization as a social entrepreneur. He is the founder and former CEO of Outside The Classroom, a company that pioneered adaptive online education in alcohol abuse prevention. The company was acquired by EverFi in 2011. Brandon received his bachelor’s degree in public policy from Duke University and an honorary doctorate from Augustana College. He is a trustee emeritus of Duke and has served on the Board of Visitors of the Sanford School of Public Policy. He was a former two-sport NCAA Division 1 athlete at Duke. Brandon Busteed President, Kaplan University Partners © BHEF 2019 10 2019 New Member Biographies Doug Chittenden is president, Institutional Retirement, at TIAA. He leads the company’s Institutional Solutions & Relationships business, which serves more than 15,000 retirement plan sponsors in the academic, research, medical, and cultural fields. He oversees sales, strategy, product development and management, relationship and services management, participant consulting and guidance, and independent advisor support. Prior to this role, he led the organization’s consumer product management and development functions, as well as distribution to individual clients of TIAA Direct, 529 College Savings Plans, the Trust Company, Brokerage Services, IRA and Advisory Solutions, TC Life and Investment Products. Since joining TIAA in 1985, Mr. Chittenden has held a variety of positions with increasing responsibility. Among his major accomplishments are enabling legislation for optional retirement plans in the state of Ohio; significantly increasing the number of institutional clients in Pennsylvania, West Virginia, and Delaware; launching the organization’s brokerage platform; restructuring the mutual fund product line; moving the organization’s IRA business onto its OMNI record-keeping platform, and returning the 529 business to an industry-leading position. Mr. Chittenden holds a B.A. in economics from Rutgers University and is a registered principal of the Financial Industry Regulatory Authority. Doug Chittenden President, Institutional Retirement, TIAA © BHEF 2019 11 2019 New Member Biographies Jim Loree is president and chief executive officer of Stanley Black & Decker. Loree joined the company as CFO in 1999 when the company generated just over $2 billion in revenue. In that role, he led a massive restructuring of the business and began a re-architecting of the company’s portfolio. Since that time, he was promoted to COO, president, and then CEO in 2016, as the company generated significant growth both organically and through acquisitions to stand at $13 billion in annual revenue (more than 5x growth since 1999), with more than 58,000 employees across 60 countries. The world is changing at an exponential pace, and Loree believes that in order for companies to be successful in this rapidly changing world, the company must disrupt itself before others do. This has led the company to its 22/22 vision with a strategy to become an organization focused on delivering societal good through its innovations and business model approach, with a heightened focus on diversity and inclusion, environmental impact and enhancing the communities where its employees live and work. During his tenure as CEO, the company has been recognized in a number of notable lists, including Forbes’ America’s Best Employers for Diversity, Barron’s 100 Most Sustainable Companies, Fortune’s Most Admired Companies, Dow Jones Sustainability Index (seventh consecutive year) and Mogul’s Top 100 Innovators in Diversity & Inclusion and Top 100 for Millennial Women. Prior to Stanley Black & Decker, Loree held a successful 19-year career with GE, spanning a multitude of assignments and industries. He joined GE in 1980 as part of the Financial Management training program then joined the GE Audit staff. For the next 12 years, he held positions of increased responsibility in financial and operating management in industrial businesses, corporate and at GE Capital. Jim Loree President and CEO, Stanley Black & Decker © BHEF 2019 12 2019 New Member Biographies Judy D. Olian assumed the role of president of Quinnipiac University in July 2018. She joins a university with over 10,000 undergraduate and graduate students, eight professional schools, a College of Arts and Sciences, and 21 Division I athletic teams. The university has many distinctions including the Quinnipiac University Poll, among the most respected national political polls in the country. Prior to joining Quinnipiac University, she served as dean of UCLA Anderson School of Management and John E. Anderson Chair in Management for more than 12 years. Under her leadership, UCLA Anderson hired a record number of faculty, expanded its prestigious board of visitors, and raised over $450 million for students and faculty support, innovative programming, and capital improvements. Prior to that, she was dean and professor of management at the Smeal College of Business Administration at Pennsylvania State University, and professor and senior associate dean at the Smith School of Business at the University of Maryland. Dr. Olian also served as the chairman of the Association to Advance Collegiate Schools of Business, the premier business accrediting and management thought leadership organization in the world. Widely published in journals on human resource management, top management team composition, and the business alignment of management systems, Dr. Olian wrote a weekly syndicated newspaper column and hosted a monthly television show on current topics in business. She is a sought‐after speaker and has consulted for major corporations. She serves on the boards of United Therapeutics, Ares Management, and Mattel Corporation, is on the advisory board of Catalyst, and is a member of the Business-Higher Education Forum. Born and raised in Australia, Olian holds a B.S. in psychology from the Hebrew University, Jerusalem, and an M.S. and Ph.D. in industrial relations from the University of Wisconsin-Madison. Judy Olian President, Quinnipiac University © BHEF 2019 13 2019 New Member Biographies Vita C. Rabinowitz is the interim chancellor at the City University of New York, a post she has held since June 1, 2018. For three years prior to her current appointment, Dr. Rabinowitz was the executive vice chancellor and university provost. For nearly a decade, Dr. Rabinowitz served as provost and vice president for academic affairs at Hunter College, where she has been a dedicated faculty member for her entire academic career. In addition to teaching and mentoring thousands of students over the course of her 37 years at Hunter, she held a variety of administrative positions before assuming the role of provost, including chairperson of the Department of Psychology, acting associate provost, and acting provost. While at Hunter, Dr. Rabinowitz was the recipient of major NSF grants, including one that established Hunter’s Gender Equity Project (GEP), which sought to advance women faculty in the natural and social sciences and became an incubator for faculty development at Hunter. She served as co-director of the GEP for eight years. As provost, she received an NSF award to strengthen the many STEM enrichment programs at Hunter College and launch Hunter’s Undergraduate Research Initiative. In addition to her extensive service at Hunter, since 1978 Dr. Rabinowitz has been a member of the doctoral program in psychology at CUNY Graduate Center, where she served as acting program head of the social/ personality doctoral subprogram. Dr. Rabinowitz received her master’s and doctoral degrees in social psychology at Northwestern University. The range of her scholarly interests includes the study of women and achievement, methodological issues in the study of gender, memory, and coping with adverse outcomes. Her co-authored textbook on the psychology of women, Engendering Psychology: Women and Gender Revisited, is in its second edition. Vita Rabinowitz Interim Chancellor, City University of New York © BHEF 2019 14 2019 New Member Biographies Clay Wahl is executive vice president, Follett Corporation, and president of Follett Higher Education. He is responsible for the higher education business, including retail and wholesale operations. Prior to joining Follett, Mr. Wahl was senior vice president and general manager for Kmart Retail Operations with responsibility for approximately 1,177 stores and 108,000 field associates, generating annual revenues of approximately $14 billion. He has more than 25 years of retail operations experience and an outstanding track record in supply chain management, operations management, strategic design, and tactical execution of high-level initiatives. His career includes leadership roles at Sears Holding Corporation, Ford Motor Company, Detroit Diesel, and Perceptron, Inc. Mr. Wahl holds a bachelor’s degree and an MBA from Michigan State University. Clay Wahl President, Follett Higher Education © BHEF 2019