In the shadow of the pandemic, signs of optimism

Digital and workforce changes were already on the way. The crisis is accelerating progress.

Challenging times have a way of accelerating change. Radar and computers would have eventually burst onto the scene, but the Second World War sped their development. Even the 1918 flu pandemic hastened advances in public health practices. This time is no different, with the COVID-19 pandemic creating structural changes across many sectors of the economy that are redefining every aspect of leadership and business, and catalyzing innovation across our society.

Since June, we have been tracking the business outlook and sentiments of cross-industry CEOs navigating the pandemic, as part of a collaboration between Fortune and Deloitte’s Chief Executive Program. What we’ve learned is that despite tremendous pressures around navigating the near-term realities of these challenging times, we see sustained optimism in how CEOs are thinking about the long-term. Even as the uncertain trajectory of the virus continues to create short-term uncertainty, I am encouraged by some of the key positive indicators in the survey:

• Consistent widespread recognition from CEOs (77% in June and 85% in October) that the pandemic has significantly accelerated digital transformation;
• The overwhelming majority of leaders (77% in June and 74% in October) agree the crisis has created significant new opportunities for their companies; and
• Substantial commitments from leaders around diversity, equity, and inclusion—96% of CEOs say that DEI is a strategic focus for them as CEO, and are prioritizing or investing in key areas, including: talent recruitment, development, advancement, and retention; DEI data and metrics transparency; community engagement/philanthropy; executive leadership composition and board composition

Many CEOs thought that the changes we’ve seen over the past several months would take several years to implement. But the pandemic highlighted the speed with which businesses are able to successfully adapt and embrace digital transformation; virtual environments for employees to work and customers to engage were stood up overnight, ensuring business continuity. Historical assumptions around return on investment horizons have been shattered, pushing executives to prioritize further digital investments even in the midst of an economic downturn. The accelerated path to digitization is allowing businesses to create more effective and efficient ways of working, richer forms of interactions with customers, and new ways to drive growth. More broadly, the technological advances emerging from this environment have the promise to help solve many of society’s greatest challenges.

CEOs surveyed said that 68% of their workforce now work remotely, and they expect 57% to remain remote through January 2021. CEOs expect one-third of their workforce to continue working remotely even after the effect of pandemic eases. Reinforcing trends that were already underway around the evolving workplace and workforce, the pandemic has propelled employers to redefine workplaces, moving toward a hybrid model that will provide employees flexibility to integrate both virtual and in-person experiences. With a distributed workforce becoming more of a mainstay, it will be imperative for leaders to build and strengthen a corporate culture that is inclusive, prioritizes well-being, and cultivates employee engagement and collaboration.

It is also clear that leaders are recognizing their important role in addressing the systemic racial inequities that have existed within workplaces and in society for far too long. I was encouraged by the near unanimity of CEOs making DEI not only an institutional priority, but also a personal one—that level of accountability at the top is necessary if we are to drive meaningful, lasting change. What will be most critical is keeping the same level of intensity and commitment when the news cycle shifts; we must sustain a culture of anti-racism that upends the long history of inequities.

Leaders don’t get to choose the crises they are faced with, but they do get to choose how to respond. I have been proud of the way that the business community has stepped up to lead during the unprecedented events of 2020. I am confident we will look back at this time as a catalyst for accelerating changes that drive inclusive prosperity.

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