Millennials want to buy from companies led by outspoken CEO

Nearly half of millennials (47%) believe CEOs have a responsibility to speak up about issues that are important to society, far outpacing the sentiments of Gen Xers and Boomers (28% each).

An even larger six in 10 millennials (56%) say that business leaders have a greater responsibility to speak out now than in years past.

M1

This is according to CEO Activism in 2017: High Noon in the C-Suite, a report commissioned by Weber Shandwick in partnership with KRC Research.

“When dozens of CEOs spoke up about the new administration’s decisions regarding issues like climate change and travel to the US from select countries, for example, social media ignited, protests erupted and media attention exploded. Navigating how to communicate a company’s point of view in this environment is becoming increasingly complex and important. Future generations will only pay closer attention to how companies communicate around their values when it comes to deciding where to work or who to purchase from,” said Andy Polansky, CEO of Weber Shandwick.

Millennials’ buying decisions influenced by CEO activism

CEO activism positively affects millennials’ purchase decisions, according to the survey. Half of millennials (51%) say they would be more likely to buy from a company led by a CEO who speaks out on an issue they agree with. This rate has increased since 2016 (46%). This form of “voting by wallet” is not to be ignored as companies fiercely compete for customers. By comparison, CEO activism is less likely to affect the purchase decisions of Gen Xers and Boomers.

m2

The risk of silence

This survey also asked consumers what they think the risks are of not speaking out. Half of Americans (47%) believe the biggest risk of a CEO not speaking out on a hotly debated issue is some form of criticism, whether it comes from the media (30%), customers (26%), employees (21%) or the government (9%). Top perceived risks do not differ by generation.

“For companies looking to increase sales, recruitment, innovation and word of mouth, millennials’ bias toward CEO activism should not be overlooked. This generation is heavily purpose-driven and is already changing the game when it comes to how we work and where people want to work,” said Leslie Gaines-Ross, chief reputation strategist of Weber Shandwick.

Source: marketing-interactive.com; 1 Aug 2017

Chevron Lubricants creates new units to align with regional growth strategy

Chevron Lubricants is creating two new business units following the retirement of Farrukh Saeed as vice president, Asia Pacific Region on 31 July 2017, after more than 34 years with the company. The formation of the two new operations will support ongoing expansion and sales growth in the broader Asia Pacific region.

Chevron Lubricants did not comment to additional queries by Marketing at the time of writing.

The new units are said to be in alignment with its regional growth strategy. The Thailand, Sri Lanka, Pakistan, Philippines, Vietnam, Malaysia, Singapore and Indonesia operations will now be part of a new Asia/Pakistan lubricants business unit. In addition, the Greater China business unit will be responsible for China, Taiwan and Hong Kong finished lubricants operations including the growing e-commerce activity in these countries.

Rochna Kaul has been appointed to serve as general manager for the Asia/Pakistan Lubricants business unit, based in Singapore. Kaul previously served as general manager, Chevron International Products, based in South Africa.

On the new Asia/Pakistan business unit, Kaul said: “We have experienced steady growth in our Asian markets. We will continue to drive our full portfolio of lubricant products across the region. Our focus is to be a reliable partner and to invest in our strategic brands.”

Baomin Guo has been appointed general manager for the Greater China Lubricants business unit, based in Beijing. Guo was previously advisor to the president, Chevron Lubricants.

“Our new business unit signals the increased strategic focus we are placing on the Greater China market,” said Guo. “Chevron’s relationships with leading companies and OEMs has grown steadily and we have quickly established new digital sales channels for the passenger car segment with China’s leading e-commerce and online-to-offline (O2O) platforms.”

Source: marketing-interactive.com; 2 Aug 2017

Achieving a digital state of mind

Digital isn’t merely an add-on; it’s a way to think differently about business models, customer journeys, and organizational agility.

Companies that successfully adopt digital technology don’t view it as an extra; digitization becomes central to what they are because they transform their value propositions and evolve every level of the organization so that it becomes data driven, customer obsessed, and highly agile. In this episode of the McKinsey Podcast, recorded in November 2015, principals Karel Dorner and David Edelman talk with Barr Seitz about why, decades into the digital revolution, companies are still trying to define what digital really is and struggling to make the most of it. An edited transcript of their conversation follows.

Podcast transcript

Barr Seitz: Hello and welcome to the McKinsey Podcast. I’m Barr Seitz, global publishing lead for McKinsey’s Marketing & Sales and Digital practices. I’m very happy to introduce my two guests, Karel Dorner, a partner in McKinsey’s Munich office and a leader of the McKinsey Digital Practice, and Dave Edelman, a partner in our Boston office and global leader of our Digital Marketing Group. Karel and Dave are also the authors of “What ‘digital’ really means,” one of the top articles published this year on mckinsey.com. I’ll be talking to Dave and Karel about the meaning of digital, why knowing the meaning is important, and how leaders can use that understanding to help transform a business at its core rather than at the edges.

Click here for the full transcript

Source: mckinsey.com; Feb 2016

A billion-dollar digital opportunity for oil companies

Making better use of existing technology can deliver serious returns—by increasing production, streamlining the supply chain, or reducing engineering time.

The computers in the offices of the average big oil company can find an additional $1 billion in value, if you let them.

Modern advanced-analytics programs are able to diagnose, sort, compare, and identify cost savings, or opportunities for increased production, in a manner beyond the capabilities of the average employee. The tools that allow you to do this have been available for several years, but adoption by the oil and gas industry has been slow. This is partly the result of the recent crash in oil prices, but competing internal IT projects and organizational reluctance to put in the effort required are also factors.

In this article, three stories are told. In each story, the average big oil company (AB Oil Co.) could realize $1 billion in cost savings or production increases by deploying technologies that exist today.

Click here for the full article

Source: mckinsey.com; March 2016