How to jump-start investment in underserved communities | C-Suite Insights 6.5.24
The CEO of Vista Equity Partners Talks AI, Responsible Lending, and More
“People who have access to capital can invest in their own businesses and businesses in those communities, they become safer, the value of their homes go up, the value of their communities go up, and then it creates a very virtuous cycle.
But you have to jump-start this cycle. And in our world, capital is the way to do it. And responsible lending of capital and investing of capital is one of the critical aspects of that, and these communities have been starved of that opportunity.”
This reflection comes from Robert F. Smith , Founder, Chairman, and CEO of Vista Equity Partners . Smith—along with the Vista team—is a recipient of the 2024 Distinguished Leadership Award from the Committee for Economic Development (CED), the public policy center of The Conference Board.
Smith sits down with Dr. Lori Esposito Murray , former President of CED and Co-Chair of the 2024 Distinguished Leadership Awards, to talk about the benefits of generative AI, the importance of responsible lending and investing of capital for communities, and more.
Inflation Is Moderating—but Still Well above Target—as Consumers Pull Back on Spending
Nominal US personal consumption expenditures (PCE) rose just 0.2% month-over-month (m/m) in April, down substantially from 0.7% m/m in March. After accounting for inflation, the reading was -0.1% m/m.
Following a spike in Q1, PCE inflation—the Fed’s preferred measure—moderated to 2.65% year-over-year (y/y) in April, compared to 2.70% y/y in March.
Consumers feeling the strain of high rates: Collectively, these data show that tight monetary policy is weighing on the economy. Real disposable personal incomes also fell in April, while consumer savings remained historically low at just 3.6%—compared to an average of 7.4% in 2019. Finally, non-mortgage interest payments remain near record highs, amid rising debt loads.
The TCB take: We remain pessimistic about the sustainability of consumer spending and expect households will have to pull back further over the summer.
Despite some progress on the inflation front, price increases remain above the Fed’s target of 2%. We continue to forecast that the Fed will wait until the end of the year to cut interest rates.
Number of the Week: 4%
Just 4% of CEOs believe Europe is doing enough to ensure sufficient defense capabilities. Instead, the vast majority (79%) say they are either "not confident" or "not confident at all."
The TCB take: Russia's invasion of Ukraine was a wake-up call for the EU to assess its defense capabilities, at a time when the US is turning its attention to the Pacific. Expect an intensifying debate on Europe's level of military readiness and ability to respond to future conflicts.
CCOs Have a Ticket to the Dance, Now They Seek to Choreograph a Standout Company Performance
Chief communicators have earned their seat at the table. Now they’re expected to display the requisite business acumen to advise on business decisions while considering stakeholders’ views and corporate reputation.
This is according to communications executives at our Members-only roundtable, Now that CCOs Have a Seat at the Table, Do They Wish They Hadn’t?
A changing role for CCOs: Chief communicators are now expected to have an informed, data-based point of view on business decisions. They need to proactively monitor, flag, and counsel CEOs on emerging issues. And they have to stay on top of—and educate the C-Suite about—new comms tech and platforms, from AI to TikTok.
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Traditional communications tasks (e.g., writing press releases, editing) will remain the comms team’s job—now aided by AI—but that’s not where communicators can have the biggest impact.
The TCB take: Chief communications officers need business and strategic thinking, data and analytics capabilities, and knowledge about the latest comms tech. Plus, CCOs need to be brought in early to any planned initiative to be able to have their fullest impact.
QUOTABLE: What’s Driving Job Satisfaction?
“This year, quality of leadership was the single most important driver of satisfaction. So, what does that say? It says that I want a leader who recognizes that even though I'm not here every day—I take some time off—I'm meeting my objectives, I'm working hard. But I also want that leader to hold other people accountable, so that it doesn't become unfair or that I have to pick up too much of the workload.”
— Allan Schweyer , Principal Researcher, Human Capital, The Conference Board. He joined C-Suite Perspectives to discuss job satisfaction.
What’s Holding Back the Potential of Your Corporate Sustainability Program?
Corporate sustainability programs can help reduce carbon footprints and waste, improve brand reputation, and boost employee retention—ultimately, driving long-term value. Yet a new survey by The Conference Board finds that most companies have yet to fully integrate sustainability programs throughout their organizations.
The state of progress:
What’s challenging progress? Organizing and implementing a sustainability strategy is the top-cited challenge (60%) by sustainability executives. Other challenges include embedding sustainability into the corporate culture and communicating their sustainability story to multiple constituencies.
The TCB take: A well-defined plan of action—one that sets goals and outlines the strategy to achieve such goals—is essential to an organization’s sustainability transformation. But crucial to its implementation is the collaboration of key players, including the CSO, the sustainability team, and the steering committees.
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