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Hello and Happy New Year, I hope you had a restful break and are geared up for 2022. There’s a lot to think about as we head into a new year, starting with how to react to the Omicron variant. Though it may be milder than other variants, the fast-moving coronavirus is causing a spike in hospitalizations and inspiring companies like Goldman Sachs, Citi and JPMorgan to delay their return-to-office plans. More than 1 million new cases of Covid-19 were reported in the U.S. yesterday.
Still, many of the leaders I speak to are increasingly confident that the immediate health crisis will soon pass, though its impact on consumer habits and how we work could be felt for years to come. Leaders are increasingly focused on some of the other trends that could shape their plans and decisions this year. Here are six themes that keep coming up in conversation:
- The macroeconomic environment: How will inflation and interest rates impact spending, fiscal policy, and markets? How will these forces, along with continued supply-chain woes, impact relations between China and the U.S.? (Investors started the year on an optimistic note.)
- The future of work: The talent shortage is less a reflection of the labor pool than the culture around work. Covid exposed fundamental flaws in the ecosystems around work, from inadequate child care and pay to the need for more diverse paths and role models for success. - Digital transformation: Every industry is being transformed by AI and other technologies, from trucking to hospitals. While working on a book with former Cisco CEO John Chambers, I often heard him say that leaders either disrupt or get disrupted. Those words seem especially true right now. (In addition to monitoring what’s happening in your own industry, keep your eyes on startups like Anyscale.) - Climate change: Is there any issue more important than the future of our planet? Yes, having strong sustainability plans matter, but climate change is altering the calculus of doing business right now, from the need to relocate office space and switch crops to planning for “once-in-a-lifetime” events that increasingly happen every few years. Here’s how it could impact business decisions. - Regulation: From regulatory efforts to oversee cryptocurrencies and rein in the power of social media giants (Here’s why Twitter banned Marjorie Taylor Greene) to the growing pressure on legislators to right societal wrongs, government is likely to play a bigger role in the future of business. If policymakers can find ways to reduce inequality while spurring innovation, that could have a positive and profound impact on society. - Covid: Millions have died and many more continue to suffer the long-term effects of being infected with the coronavirus. Along with upending everything from how we buy to how we work, the pandemic has further divided a polarized America. And yet the crisis has also spawned a renewed appreciation for the importance of family, education, enlightened employers and engaged employees. Let’s hope those lessons stick. Here's to a happy and healthy 2022. Best, Diane
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